/raid1/www/Hosts/bankrupt/TCR_Public/100805.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, August 5, 2010, Vol. 14, No. 215
Headlines
2241 ELKHORN: Case Summary & 20 Largest Unsecured Creditors
ABITIBIBOWATER INC: Court OKs $500 Million Backstop Agreement
ABITIBIBOWATER INC: Opposes Formation of Equity Committee
ABITIBIBOWATER INC: Plan Confirmation Hearing Slated for Sept. 24
ABITIBIBOWATER INC: Removal Period Extended Until Nov. 8
AFY INC: Trustee Wants Assets Liquidated under Chapter 7
AMERICAN AXLE: Moody's Raises Corporate Family Rating to 'B2'
AMHN INC: June 30 Balance Sheet Upside-Down by $877,500
ANDERSON NEWS: Judge Dismisses Antitrust Suit Against Publishers
ANDRE CHREKY: Ex-Employees Sue to Ensure Claims Aren't Discharged
ANGELO RODRIGUEZ: Case Summary & 20 Largest Unsecured Creditors
ARAFAT BAKRI: Case Summary & 20 Largest Unsecured Creditors
ARIZONA HEART: Case Summary & 20 Largest Unsecured Creditors
ARTECITY PARK: Section 341(a) Meeting Scheduled for September 1
ATHILON CAPITAL: S&P Downgrades Issuer Credit Rating to 'BB-'
ARTS DAIRY: Court Finds Chapter 11 Plan Not Feasible
ATLANTIC INDUSTRIAL: Discloses Delay of Financial Statements
AVIS BUDGET: Dollar Thrifty Investors Should Expect Bidding War
BASIC ENERGY: S&P Gives Stable Outlook, Affirms 'B' Rating
BEAR STEARNS: Fed Trying to Avoid Foreclosing Properties
BERNARD MADOFF: ASM Capital Offers to Buy Claims at 23% of Value
BERNARD MADOFF: Proposed Class Suits Delay Picower Settlement
BERNARD MADOFF: Prosecutors Amend Suit v. Ex-Employee Bongiorno
BOSQUE POWER: Lenders Submit Own Reorganization Plan
BOULDER HIGHWAY: Case Summary & Creditors List
BOYD GAMING: Fitch Downgrades Issuer Default Rating to 'B'
CHARLES RIVER: Moody's Retains 'Ba2' Corporate Family Rating
CHRYSLER LLC: New Chrysler Wins 70% of Dealer Arbitration Cases
CLOPAY AMES: Moody's Assigns 'B2' Corporate Family Rating
COLLIER LAND: Can Formulate Plan When Coal Operations Resume
CONQUEST PETROLEUM: Recurring Losses Cue Going Concern Doubt
CROWN EUROPEAN: Fitch Assigns 'BB-' Rating on Senior Notes
CUSTOM CABLE: Case Summary & 20 Largest Unsecured Creditors
CUTTING EDGE: Voluntary Chapter 11 Case Summary
CYBERDEFENDER CORP: June 30 Balance Sheet Upside-Down by $5.9MM
DA-LITE SCREEN: July 2 Balance Sheet Upside-Down by $44.4 Million
DAVID DUNNE: Court Extends Filing of Schedules Until August. 16
DAVID DUNNE: Section 341(a) Meeting Scheduled for August 26
DAVID POPPENGA: Voluntary Chapter 11 Case Summary
DIAMOND RESORTS: S&P Assigns 'CCC+' Corporate Credit Rating
DOLLAR THRIFTY: Investors Should Expect Bidding War, WSJ Says
E-BRANDS RESTAURANTS: Case Summary & Creditors List
ENERGY FUTURE: Won't Sell or Spin Off Oncor Unit
ERNIE JACOBSEN: Wants 90 Days Exclusivity Extension
FAIRFIELD RESIDENTIAL: Plan Declared Effective on Aug. 1
FGIC CORPORATION: Files for Chapter 11 with Plan
FINLAY ENTERPRISES: Liquidating Plan Declared Effective
FORD MOTOR: Sales Rise 3.3% in July
FORESIGHT ENERGY: Moody's Assigns 'Caa1' Rating on $400 Mil. Notes
FORUM HEALTH: Community Health Bids $100 Million
GEMCRAFT HOMES: Amends Plan Outline, Hearing Set for Tomorrow
GEMS TV: Asks For Extension on Bankruptcy Exit Plan
GENERAL GROWTH: $7.9 Million in Claims Change Hands for July
GENERAL GROWTH: Court OKs Reissuance Services by Deloitte
GENERAL GROWTH: Howard Hughes Wins Nod to Assume Pulte Homes Pact
GENERAL MOTORS: Sales Rise 6.4% in July
GENERAL MOTORS: To Invest $5 Million in Bright Automotive
GUMBEL BUILDING: Voluntary Chapter 11 Case Summary
HERTZ CORP: Dollar Thrifty Investors Should Expect Bidding War
INTERACTIVE DATA: S&P Assigns Corporate Credit Rating at 'B'
INTERNATIONAL STONE: Case Summary & 20 Largest Unsecured Creditors
JERRY BARNETT: Section 341(a) Meeting Scheduled for September 1
JESUP & LAMONT: Voluntary Chapter 11 Case Summary
JOAQUIN BALISTRERI: Case Summary & 20 Largest Unsecured Creditors
KEITH WEBB: Voluntary Chapter 11 Case Summary
KYUNG KIM: Sanction Decision Interlocutory & Unappealable
LAKETOWN WHARF: No Extension of Time to File Notice of Appeal
LANDSOURCE COMMUNITIES: Creditors Trust Sue LNR, Others for Fraud
LEAR CORP: Has $160-Mil. Profit in 2nd Quarter Out of Bankruptcy
LEHMAN BROTHERS: Applies to Guarantee Payment of Lazard Fees
LEHMAN BROTHERS: Proposes Settlement with Mortgage Lenders
LEHMAN BROTHERS: Seeks Nod for Ali to Ink Deal With Innkeepers
LEHMAN BROTHERS: Wants to Allow Insurers to Pay Litigation Costs
LEHMAN BROTHERS: Wants to Halt Deals for Loans Portfolio
LEONARD MARTINEZ: Case Summary & 10 Largest Unsecured Creditors
LIBERTY PALACE: Voluntary Chapter 11 Case Summary
MATTERHORN GROUP: Gets Interim Okay to Use Cash Collateral
MATTERHORN GROUP: Section 341(a) Meeting Scheduled for September 2
MAX & ERMA'S: Plan & Sale Hearing Scheduled for Aug. 18
MEDICAL STAFFING: Can Auction Substantially All Assets on Aug. 19
MEDICAL STAFFING: Can Obtain $15MM Loan from General Electric
MERUELO MADDUX: Creditors Win Bid to File Competing Plan
MEXICANA AIRLINE: Grupo Aeroportuario to Modify Collection Process
MEXICANA AIRLINE: OMA Announces Adjustments to Flights
MISSION REAL: Has Until October 12 to Submit Reorganization Plan
MOODY'S CORP: June 30 Balance Sheet Upside-Down by $491.9-Mil.
MULTIPLAN INC: Moody's Affirms 'B2' Corporate Family Rating
M.W. SEWALL: Lottery Ticket Sale Proceeds Not Trust Funds
NEW CENTURY FIN'L: SEC Accepts Settlement From 3 Former Execs
NEWPARK RESOURCES: S&P Raises Corporate Credit Rating to 'B'
NFC NATIONAL: Case Summary & Largest Unsecured Creditor
NILKANTH MOTELS: Case Summary & 15 Largest Unsecured Creditors
PETROHAWK ENERGY: Moody's Gives Stable Outlook; Rates Notes at B3
PETROHAWK ENERGY: S&P Raises Corporate Credit Rating to 'BB-'
PHILADELPHIA GAS: S&P Raises Rating on Jr. Sub. Bonds From BB+
PICARD MEDICAL: Case Summary & 20 Largest Unsecured Creditors
PACIFIC AVENUE: Gets Court OK to Hire Grier Furr as Bankr. Counsel
PACIFIC AVENUE: Gets Interim Okay to Use Cash Collateral
PACIFIC AVENUE: Section 341(a) Meeting Scheduled for September 1
PACIFIC AVENUE: Taps James McElroy as Attorney for Civil Action
PACIFIC LIFESTYLE: Emerges from Chapter 11 Bankruptcy Protection
PENN TRAFFIC: Tops to Sell 7 Stores Under FTC Deal
PILGRIM'S PRIDE: Has $12.6-Mil. Loss Six Months After Emergence
PITNEY BOWES: Stockholders' Deficit Widens to $120.6MM at June 30
PRIDE INTERNATIONAL: Fitch Assigns 'BB+' Rating on Senior Offering
PRIDE INTERNATIONAL: Moody's Assigns 'Ba1' Rating on Senior Notes
RAZMIK SAFARIANS: Case Summary & 18 Largest Unsecured Creditors
REALD INC: June 25 Balance Sheet Upside-Down by $35.6-Mil.
RICHARD GETTY: Section 341(a) Meeting Scheduled for September 1
ROBIN MILLER: Voluntary Chapter 11 Case Summary
ROCK HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating
ROCK HOLDINGS: S&P Assigns Counterparty Credit Rating at 'B'
RONY TOMASINO: Voluntary Chapter 11 Case Summary
SCOTT NELSON: Case Summary & 6 Largest Unsecured Creditors
SENSATA TECHNOLOGIES: S&P Raises Corporate Credit Rating to 'B+'
SIDING DOCTOR: Case Summary & 9 Largest Unsecured Creditors
SIGMA INDUSTRIES: Files for Bankruptcy Reorganization in Canada
SKY RANCH: Pure Cycle to Acquire Property for $7MM Cash
STEPHANIE OTT: Case Summary & 16 Largest Unsecured Creditors
SUMNER REGIONAL: Bondholder Compromise Hearing Set for Aug. 18
SUNPAT INC: Case Summary & 17 Largest Unsecured Creditors
TACO MUNDO: To Re-Open Shops After Reaching Deal with Landlords
TENET HEALTHCARE: Moody's Assigns 'Caa1' Rating on Notes Offering
TENET HEALTHCARE: S&P Assigns 'CCC+' Rating on $600 Mil. Notes
TEXACO INC: 1987 Bankruptcy Can Be Reopened to Halt Lawsuit
TEXAS RANGERS: Cuban Offer Has $335MM Cash Portion, Tops Ryan's
THOMAS STRUBBE: Voluntary Chapter 11 Case Summary
TOWN SPORTS: June 30 Balance Sheet Upside Down by $9.19-Mil.
TRANT MANOR: Case Summary & 15 Largest Unsecured Creditors
TROPHY INVESTMENTS: Files for Chapter 11 Bankruptcy Protection
TROPICANA ENT: OpCO Submits June 30 Post-Confirmation Report
TURF EXCHANGE: Voluntary Chapter 11 Case Summary
UNIVERSAL BUILDING: Files for Chapter 11, To Sell to UBP
UTEX COMMUNICATIONS: 5th Circ. Says Utex Can't Alter AT&T Contract
WEST CORP: June 30 Balance Sheet Upside-Down by $2.47 Billion
WESTGATE PROPERTIES: Shopping Center Case Converted to Chapter 7
ZIONS BANCORPORATION: Moody's Changes Outlook to Positive
* Consumer Bankruptcies May Exceed 1.6-Mil. This Year, Says ABI
* Chapter 11 Cases With Assets & Liabilities Below $1,000,000
********
2241 ELKHORN: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: 2241 Elkhorn Lexington, L.P.
c/o North Street Properties
100 North Field Drive, #110
Lake Forest, IL 60045-1694
Bankruptcy Case No.: 10-34271
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Jacqueline P. Cox
Debtor's Counsel: Richard H Fimoff, Esq.
Robbins, Salomon & Patt Ltd.
25 E Washington Street, Suite 1000
Chicago, IL 60602
Tel: (312) 456-0185
Fax: (312) 782-6690
E-mail: rfimoff@rsplaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
Debtor-affiliates that filed separate Chapter 11 petitions:
Petition
Debtor Case No. Date
------ -------- ----
Ventana Hills Associates 09-41755 11/__/09
Berkley Manor Apartments, LP 09-41895 11/__/09
Highlands of Montour Run, LLC 10-21678 05/__/10
Colts Run, LLC 10-18071 04/__/10
Mt. Zion, LP 10-18075 04/__/10
5650 North Sheridan Corporation 10-34286 07/30/10
Assets: $1,000,001 to $10,000,000
Debts: $10,000,001 to $50,000,000
A list of 2241 Elkhorn Lexington's 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/ilnb10-34271.pdf
A list of 5650 North Sheridan's 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/ilnb10-34286.pdf
The petitions were signed by Ivan Djurin, manager.
ABITIBIBOWATER INC: Court OKs $500 Million Backstop Agreement
-------------------------------------------------------------
Judge Kevin Carey of the U.S. Bankruptcy Court for the District of
Delaware approved the Amended Backstop Commitment Agreement, which
AbitibiBowater Inc. secured with investors Fairfax Financial
Holdings Limited, Avenue Capital Management and certain
prepetition noteholders to backstop a rights offering that will
allow them to raise up to $500 million through the issuance of
notes.
Under the Rights Offering, AbitibiBowater would offer new
convertible notes with a seven-year maturity from the date of
closing to eligible unsecured creditors. Upon the effective date
of the Debtors' Chapter 11 Plan of Reorganization, as amended,
the notes would be obtained upon exercise of the rights and would
be convertible into common stock of the emerged company.
As previously reported, the amendments to the Backstop Commitment
Agreement address issues raised by Aurelius Capital Management,
LP, and Contrarian Capital Management, LLC, as minority
noteholders of Bowater Canada Finance Corporation and indenture
trustee for those Notes. The Objecting Parties opposed the
Rights Offering procedures on the ground that the so-called
"contribution claim" against Bowater Incorporated should afford
them a right to participate in the Rights Offering for the
alleged amount of that contribution claim.
The Court authorized the Debtors, subject to consent of the
Official Committee of Unsecured Creditors, to deliver amendments,
waivers or exhibit supplements to the Commitment Agreement, as
well as terms and provisions related to the Oversubscription
Amount, as defined under the Commitment Agreement, consistent
with the Plan. Judge Carey directed the Debtors to send the
Waivers or Supplements to:
-- the monitor overseeing the proceedings of the Canadian
Debtors under the Companies' Creditors Arrangement Act in
Canada;
-- Wilmington Trust Company, as indenture trustee for the
7.95% notes issued by BCFC; and
-- Aurelius and Contrarian.
The Court overruled the objection of Aurelius and Contrarian,
without prejudice to their right to raise the Objection at the
hearing to confirm the Chapter 11 Plan slated for September 24,
2010.
About AbitibiBowater
AbitibiBowater produces a wide range of newsprint, commercial
printing papers, market pulp and wood products. It is the eighth
largest publicly traded pulp and paper manufacturer in the world.
AbitibiBowater owns or operates 22 pulp and paper facilities and
26 wood products facilities located in the United States, Canada
and South Korea. Marketing its products in more than 90
countries, the Company is also among the world's largest recyclers
of old newspapers and magazines, and has third-party certified
100% of its managed woodlands to sustainable forest management
standards. AbitibiBowater's shares trade over-the-counter on the
Pink Sheets and on the OTC Bulletin Board under the stock symbol
ABWTQ.
The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey
presides over the case. The Company and its Canadian affiliates
commenced parallel restructuring proceedings under the Companies'
Creditors Arrangement Act before the Quebec Superior Court
Commercial Division the next day. Alex F. Morrison at Ernst &
Young, Inc., was appointed CCAA monitor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings. The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also
handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T.
Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in
Wilmington, represent the Chapter 15 Debtors.
As of Sept. 30, 2008, the Company had $9,937,000,000 in total
assets and $8,783,000,000 in total debts.
Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
ABITIBIBOWATER INC: Opposes Formation of Equity Committee
---------------------------------------------------------
AbitibiBowater Inc. and its units argue that the request of
shareholders for the appointment of an official committee of
equity security holders in the Debtors' Chapter 11 cases "[has]
failed to make any showing that an equity committee is necessary
or appropriate."
The Shareholders -- who purportedly hold a total of 13,579,432
shares of AbitibiBowater stock -- are Alan Gilbertson, Amy Firek,
Bill Graham, Brad Haskins, Bryan Oukrop, Charlie Simpson, Dan
Thornton, Daniel & Colette Nelson, Debbie Kraft, Donna and Robert
Brooker, Douglas Stein, Elizabeth Romero, Glen Dombeck, Hermony
Lee, James Van Sickle, Jasmine Shah, Jason Patel, John Ferrante,
Joseph Flesch, Marj Bidwell, Marine Guilbault, Matthew J.
Resnick, Michael Kadysh, Mike Jain, Nora/Margo/Michael Dennis,
Ramsey Liao, Rav Reddy, Robert Douma, Ron Novak, Roy George,
Scott Carison, Thomas O'Donnell, Toby Walker and William Kovach.
Appointment of an official equity committee is appropriate only
in rare cases, Sean T. Greecher, Esq., at Young Conaway Stargatt
& Taylor, LLP, in Wilmington, Delaware, maintains. "This is not
such a case."
The Debtors are hopelessly insolvent, Mr. Greecher says,
citing a declaration dated July 28, 2010, submitted by Steven
Zelin, senior managing director of Blackstone Advisory
Partners L.P., the Debtors' financial advisor. "Blackstone
estimates that the consolidated enterprise value of the Company
on the effective date of the Plan will be between $3,500 million
and $3,850 million, with a midpoint estimate of $3,675 million.
The total amount of the Company's estimated allowed claims --
approximately $8.9 billion . . . is nearly three times as much,"
according to Mr. Zelin.
"Despite clear evidence . . . the Shareholders now belatedly seek
appointment of an official committee of equity security holders
as there could be some recovery to the Class of Common Stock
Interests for certain individual Debtors," Mr. Greecher points
out.
At this late stage in the Debtors' Chapter 11 cases, the sole
purpose of an official equity committee would be to object to
confirmation and litigate the issue of valuation, Mr. Greecher
cites. In the Debtors' cases, however, the terms of the Chapter
Plan have been negotiated and agreed upon among the key creditor
constituencies, he maintains.
Moreover, the equity interests of the Shareholders are adequately
represented by the Debtors' board of directors and officers, Mr.
Greecher adds. Although the Shareholders believe that the
Company's directors and management are "not financially motivated
to represent the shareholders," they have not presented any
evidence to support this conclusion, the Debtors point out.
Mr. Greecher further contends that the Shareholders are capable
of adequately representing their interests without an official
equity committee as permitted under Section 1109(b) of the
Bankruptcy Code.
Reiterating the Debtors' arguments, the Official Committee of
Unsecured Creditors says that the Shareholders have not
introduced any evidence to demonstrate that there will be a
meaningful recovery to equity holders in the Debtors' cases. The
appointment of another official committee would only result in
duplication of the Creditors' Committee's efforts at a
significant cost to the Debtors' estates and at a critical
juncture when the Debtors' cases are on track to emerge from
Chapter 11, Jamie L. Edmonson, Esq., at Bayard, P.A., in
Wilmington, Delaware, elaborates.
About AbitibiBowater
AbitibiBowater produces a wide range of newsprint, commercial
printing papers, market pulp and wood products. It is the eighth
largest publicly traded pulp and paper manufacturer in the world.
AbitibiBowater owns or operates 22 pulp and paper facilities and
26 wood products facilities located in the United States, Canada
and South Korea. Marketing its products in more than 90
countries, the Company is also among the world's largest recyclers
of old newspapers and magazines, and has third-party certified
100% of its managed woodlands to sustainable forest management
standards. AbitibiBowater's shares trade over-the-counter on the
Pink Sheets and on the OTC Bulletin Board under the stock symbol
ABWTQ.
The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey
presides over the case. The Company and its Canadian affiliates
commenced parallel restructuring proceedings under the Companies'
Creditors Arrangement Act before the Quebec Superior Court
Commercial Division the next day. Alex F. Morrison at Ernst &
Young, Inc., was appointed CCAA monitor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings. The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also
handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T.
Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in
Wilmington, represent the Chapter 15 Debtors.
As of Sept. 30, 2008, the Company had $9,937,000,000 in total
assets and $8,783,000,000 in total debts.
Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
ABITIBIBOWATER INC: Plan Confirmation Hearing Slated for Sept. 24
-----------------------------------------------------------------
Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware approved the Disclosure Statement outlining the Second
Amended Chapter 11 Plan of Reorganization of AbitibiBowater, Inc.,
and its debtor-affiliates on August 2, 2010.
At the August 2 hearing, the Court opined that the Disclosure
Statement contains "adequate information" within the meaning of
Section 1125 of the Bankruptcy Code. Any objections to the
adequacy of the Disclosure Statement not previously withdrawn or
resolved are overruled, Judge Carey held.
A full-text copy of the AbitibiBowater Disclosure Statement
Approval Order is available at no charge at:
http://bankrupt.com/misc/ABH_DisclosureStatementORD.pdf
"These developments signal significant progress in
AbitibiBowater's restructuring process," stated David J.
Paterson, President and Chief Executive Office in an official
statement. "We are on track to emerge in the fall a stronger,
more sustainable Company."
AbitibiBowater originally filed the Disclosure Statement and Plan
on May 4, 2010, and subsequently amended certain terms on May 24.
To further accommodate the issues raised by parties-in-interest,
the Second Amended Disclosure Statement and Chapter 11 Plan were
filed on July 27, which includes:
* revisions in the estimated amounts of Allowed Claims;
* a refinement of the terms of the Rights Offering;
* disclosures and information on incentive plans, government
agreements and collective bargaining agreements;
* modifications in the Cross-Border Voting Protocol; and
* disclosure of events that transpired in AbitibiBowater's
cases from the filing of the First Amended Plan, among
others.
In its Disclosure Statement and Plan, supported by the Official
Committee of Unsecured Creditors, the Company disclosed that it
intends to emerge "with a strengthened financial position."
Unsecured creditors of AbitibiBowater's affiliates, which are
under restructuring proceedings pursuant to the Companies'
Creditors Arrangement Act in Canada, are expected to meet on
September 14, 2010, to discuss support of the CCAA Applicants'
Plan of Reorganization and Compromise.
In an effort to obtain adequate exit financing, AbitibiBowater
has secured -- and noted as a core provision of the Plan -- a
backstop commitment from certain unsecured noteholders for a
rights offering of up to $500 million along with a commitment to
support the restructuring process.
The Company will have to obtain adequate exit financing and
complete efforts to address labor costs and pension issues, as
well as satisfy other conditions set forth in the Plans of
Reorganization before it can emerge from bankruptcy protection.
Plan Confirmation Hearing
Concurrent with the approval of the Disclosure Statement, Judge
Carey scheduled a hearing to consider confirmation of the
AbitibiBowater Plan at 10:00 a.m., prevailing Eastern Time, on
September 24, 2010.
Objections to Plan Confirmation must be filed on or before noon,
prevailing Eastern Time, on September 13. AbitibiBowater, or any
other party supporting the Plan, may file a reply to any
objection to confirmation of the Plan no later September 21.
Judge Carey also directed the Company to publish a notice of the
Plan Confirmation Hearing in the national edition of The Wall
Street Journal, The New York Times or USA Today. A French
translation of the Publication Notice must also be published in
an appropriate national edition of a French language publication
in Canada.
The progress in AbitibiBowater's restructuring efforts may set
the Company free of Court protection by October 1, 2010, if its
Plan obtains creditor support in August 2010, The Canadian Press
related. AbitibiBowater noted that it aims to emerge from
creditor protection "in the fall of 2010."
Ultimately, the Company's plans of reorganization will require
creditor approval and confirmation from Judge Carey and the
Honorable Mr. Justice Clement Gascon, J.S.C., of the Superior
Court Commercial Division for the District of Montreal in Quebec,
Montreal, Canada.
Solicitation Schedule
Judge Carey approved the proposed plan solicitation and balloting
procedures, as amended, to govern the process of gathering votes
in relation to the Second Amended Plan and Disclosure Statement
that AbitibiBowater Inc. and its debtor affiliates filed on
July 28, 2010.
The Solicitation Procedures were amended primarily to address
objections raised by the Abitibi Consolidated Company of Canada
Term Loan Agent; the ACE Group of Companies; Riverside Claims,
LLC; Chemco Inc.; Wilmington Trust Company, as successor
indenture trustee for the 7.95% Notes issued by Bowater Canada
Finance Corporation; Wilmington Trust, as successor indenture
trustee for the 15.50% Notes issued by ACCC; Aurelius Capital
Management, LP, and Contrarian Capital Management, LLC; and J&L
Fiber Services.
In its August 2, 2010 Order, the Court also approved:
-- the form of the Ballots;
-- the composition of the Solicitation Packages, including the
letter from the Official Committee of Unsecured Creditors
in support of the Plan;
-- the form of notice of hearing on the confirmation of the
Debtors' Second Amended Chapter 11 Plan of Reorganization;
-- Subscription Forms and other materials for participation in
the Rights Offering; and
-- the Unimpaired Party Notice or the Impaired Non-Voting
Notice for holders of Claims in (i) Classes 1A through 1HH;
(ii) Classes 2A through 2G; (iii) Classes 3A through 3G;
(iv) Classes 4A through 4G; (v) Classes SA through SHH; and
(vi) Classes 9A through 9HH, which are not entitled to vote
to accept or reject the Plan.
Judge Carey permits Epiq Bankruptcy Solutions, LLC, as the
Debtors' notice, balloting and claims agent, (i) to inspect,
monitor and supervise the solicitation process; (ii) to serve as
the tabulator of the Ballots; and (iii) to certify to the Court
the results of the balloting except with respect to the Cross-
Border Debtors. Epiq will also serve as the subscription agent
for the Rights Offering.
The Record Date for purposes of determining which creditors are
entitled to receive a Solicitation Package, and which creditors
and equity security holders are entitled to receive the
Unimpaired Party Notice and the Impaired Non-Voting Notice is
June 30, 2010.
The Court also established September 13, 2010, as the deadline by
which all Ballots and Master Ballots to the Voting Nominees, as
defined in the Solicitation Procedures, must be properly
executed, completed, delivered to and actually received by the
Claims and Noticing Agent.
Parties that intend to have their claims allowed for purposes of
voting on the Plan must submit, on or before 4:00 p.m. prevailing
Eastern Time, on August 16, 2010, a request for the temporary
allowance of the claim pursuant to Rule 3018(a) of the Federal
Rules of Bankruptcy Procedure.
The deadline for Epiq to file a voting tabulation reflecting the
votes cast to accept or reject the Plan is September 20, 2010.
With respect to the Rights Offering, the Court scheduled June 30,
2010, as the Record Date for purposes of identifying Eligible
Claims and for purposes of initially allocating Subscription
Rights and any Oversubscription Amounts, as defined in the
Backstop Commitment Agreement, to Eligible Holders.
The Debtors are authorized, but are not required, to make
adjustments to participation in any Oversubscription Amount to
address claims modifications that occur after June 30, 2010, but
on or before August 17, 2010. The Rights Offering subscription
period will conclude at 4:00 p.m. prevailing Eastern Time, on
September 10, 2010.
About AbitibiBowater
AbitibiBowater produces a wide range of newsprint, commercial
printing papers, market pulp and wood products. It is the eighth
largest publicly traded pulp and paper manufacturer in the world.
AbitibiBowater owns or operates 22 pulp and paper facilities and
26 wood products facilities located in the United States, Canada
and South Korea. Marketing its products in more than 90
countries, the Company is also among the world's largest recyclers
of old newspapers and magazines, and has third-party certified
100% of its managed woodlands to sustainable forest management
standards. AbitibiBowater's shares trade over-the-counter on the
Pink Sheets and on the OTC Bulletin Board under the stock symbol
ABWTQ.
The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey
presides over the case. The Company and its Canadian affiliates
commenced parallel restructuring proceedings under the Companies'
Creditors Arrangement Act before the Quebec Superior Court
Commercial Division the next day. Alex F. Morrison at Ernst &
Young, Inc., was appointed CCAA monitor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings. The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also
handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T.
Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in
Wilmington, represent the Chapter 15 Debtors.
As of Sept. 30, 2008, the Company had $9,937,000,000 in total
assets and $8,783,000,000 in total debts.
Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
ABITIBIBOWATER INC: Removal Period Extended Until Nov. 8
--------------------------------------------------------
Judge Kevin Carey of the U.S. Bankruptcy Court for the District of
Delaware extended the time within which AbitibiBowater Inc. and
its units may file notices of removal of civil actions and
proceedings in state and federal courts to which they are or may
become parties to, through and including November 8, 2010, with
respect to claims and causes of action pending as of the Petition
Date.
The Debtors sought an extension of the Removal Action Period to
afford them the additional opportunity to consider removal of the
various litigation matters, pursuant to Rule 9027 of the Federal
Rules of Bankruptcy Procedure, in a fully informed manner and
consistent with the best interests of their estates.
The Debtors noted that they did not receive objections to their
request.
About AbitibiBowater
AbitibiBowater produces a wide range of newsprint, commercial
printing papers, market pulp and wood products. It is the eighth
largest publicly traded pulp and paper manufacturer in the world.
AbitibiBowater owns or operates 22 pulp and paper facilities and
26 wood products facilities located in the United States, Canada
and South Korea. Marketing its products in more than 90
countries, the Company is also among the world's largest recyclers
of old newspapers and magazines, and has third-party certified
100% of its managed woodlands to sustainable forest management
standards. AbitibiBowater's shares trade over-the-counter on the
Pink Sheets and on the OTC Bulletin Board under the stock symbol
ABWTQ.
The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey
presides over the case. The Company and its Canadian affiliates
commenced parallel restructuring proceedings under the Companies'
Creditors Arrangement Act before the Quebec Superior Court
Commercial Division the next day. Alex F. Morrison at Ernst &
Young, Inc., was appointed CCAA monitor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings. The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also
handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T.
Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in
Wilmington, represent the Chapter 15 Debtors.
As of Sept. 30, 2008, the Company had $9,937,000,000 in total
assets and $8,783,000,000 in total debts.
Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
AFY INC: Trustee Wants Assets Liquidated under Chapter 7
--------------------------------------------------------
Joseph H. Badami, the Chapter 11 trustee in the reorganization
case of AFY, Inc., asks the U.S. Bankruptcy Court for the District
of Nebraska to convert the Debtor's case to one under Chapter 7 of
the Bankruptcy Code.
Mr. Badami explains that the estate of the Debtor is in the
process of liquidation. To note, the Debtor's real estate
holdings have been sold and its feed yard operation has ceased.
Mr. Badami adds that it would be efficient and appropriate to
liquidate the remaining assets of the estate pursuant to
Chapter 7.
Ainsworth, Nebraska-based AFY, Inc., dba Ainsworth Feed Yards
Company, Inc., filed for Chapter 11 bankruptcy protection on
March 25, 2010 (Bankr. D. Neb. Case No. 10-40875.) Jerrold L.
Strasheim, Esq., who has an office in Omaha, Nebraska, assists the
Debtor in its restructuring effort. The Debtor estimated its
assets and debts at $10,000,001 to $50,000,000 as of the
bankruptcy filing.
The Company's affiliate, Robert A. Sears/Korley B. Sears, filed
for a separate Chapter 11 petition on February 12, 2010 (Case Nos.
10-40275/10-40277).
AMERICAN AXLE: Moody's Raises Corporate Family Rating to 'B2'
-------------------------------------------------------------
Moody's Investors Service raised American Axle & Manufacturing
Holdings, Inc.'s Corporate Family Rating and Probability of
Default Rating to B2 from Caa1. In a related action, the rating
on American Axle & Manufacturing, Inc.'s senior secured note was
raised to Ba2 from B1, and the ratings on the unsecured guaranteed
notes and the unsecured guaranteed convertible notes were raised
to B3 from Caa2. The Speculative Grade Liquidity Rating was
affirmed at SGL-3. The rating outlook is Stable.
The raising of American Axle's CFR rating to B2 reflects the
company's improved operating performance over the past two
quarters and Moody's belief that this improvement will be
sustained over the intermediate term, supported by stable
automotive vehicle production in North America and cost structure
improvements completed by the company in 2009. These conditions
no longer support the default risk indicated by the Caa rating.
For the LTM period ending June 30, 2010, American Axles
EBIT/Interest coverage (including Moody's adjustments)
approximated 1.1x, while Debt/EBITDA approximated 4.8x. These LTM
metrics are expected to improve through the year. While customer
concentrations remain high to GM and Chrysler (approximately 78%
and 8% of revenues for 2009, respectively), GM's improving
profitability and stabilizing market share for its retained
product lines partially mitigate this risk. Further, gradually
improving domestic economic conditions and relatively low gasoline
prices appear to be supporting sales of SUVs and light trucks.
American Axle's major platforms continue to consist of SUVs and
light trucks. However, Moody's believes the consumers' appetite
for smaller cars is likely to grow over the intermediate term.
American Axle also has stated that, as a result of achieved
permanent structural cost reductions, the company's operating
breakeven level is now down to a U.S. SAAR equivalent of
approximately10 million vehicle units. This factor combined with
Moody's expectation of an 11.5 million U.S. SAAR in 2010 should
support improved profitability over the near-term.
The stable rating outlook incorporates Moody's expectation of a
gradually improving operating performance from stronger North
American automotive production levels in 2010 and into 2011. Over
the intermediate-term American Axle's customer diversity is
expected to benefit from a strong backlog of business which should
increase penetration with other auto makers and geographic regions
and further diversify the company's sales into passenger cars and
cross-over vehicles.
American Axle's is expected to maintain an adequate liquidity
profile over the next twelve months as indicated in the
Speculative Grade Liquidity Rating of SGL-3. Cash balances at
June 30, 2010 were $239 million are expected to be sufficient to
accommodate working capital and capital expenditure needs over the
near-term. Liquidity is supported by availability under the
$296 million revolving credit facility at June 30, 2010, of
$263 million, net of $34 million of letters of credit. The
commitments under the revolving credit reduces to $243 million in
December 2011 and will mature in June 2013. The company also
maintains a $100 million committed second lien facility from GM,
unused at June 30, 2010, which matures in December 2013.
Principal financial covenants under the revolving credit facility
include a secured debt/EBITDA test, and an EBITDA/interest expense
test. American Axle's improvement in structural costs and
recovering North American production volumes should provide ample
covenant cushion and access the vast majority of the revolving
credit facility over the near-term. Availability under the
revolving credit is governed by a collateral coverage test. The
security provided to the lenders as part of the bank credit
facility limits the company's alternate sources of liquidity.
Ratings raised:
American Axle & Manufacturing Holdings, Inc.
* Corporate Family Rating, to B2 from Caa1
* Probability of Default Rating, to B2 from Caa1
* Unsecured guaranteed convertible note, to B3 (LGD5, 74%) from
Caa2 (LGD5 76%)
American Axle & Manufacturing, Inc.
* Senior secured guaranteed note, to Ba2 (LGD2 16%) from B1 (LGD2,
17%)
* Unsecured guaranteed notes, to B3 (LGD5, 74%) from Caa2 (LGD5
76%)
Ratings affirmed:
American Axle & Manufacturing Holdings, Inc.
* Speculative Grade Liquidity Rating, SGL-3
Holdings' obligations are guaranteed by American Axle and vice
versa.
The last rating action was on March 1, 2010, when the Corporate
Family Rating was raised to Caa1 and the outlook changed to
positive.
American Axle & Manufacturing, Inc., headquartered in Detroit, MI,
is a world leader in the manufacture, design, engineering and
validation of driveline systems and related components and
modules, chassis systems, and metal formed products for light
truck, SUV's and passenger cars. The company has manufacturing
locations in the USA, Mexico, the United Kingdom, Brazil, China,
Poland, and India. The company reported revenues of $1.5 billion
in 2009.
AMHN INC: June 30 Balance Sheet Upside-Down by $877,500
-------------------------------------------------------
AMHN, Inc., reported total assets of $1,466,755 against total
liabilities of $2,344,286, resulting in stockholders' deficit of
$877,531 as of June 30, 2010.
AMHN posted a net loss of $269,087 for the three months ended
June 30, 2010. It reported a net loss of $616,479 for the first
six months of 2010.
The Company had operating revenues of $5,734 for the June quarter
and $5,734 for the first half of 2010.
A full-text copy of the Company's Form 10-Q is available at no
charge at http://ResearchArchives.com/t/s?67ad
The Burbank, California-based Company acquired the businesses of
America's Minority Health Network, Inc., in July 2009 and Spectrum
Health Network, Inc., in June 2010.
America's Minority Health Network is a place-based provider of
digital video education for medical practices who primarily
service minorities. America's Minority Health Network currently
provides direct-to-consumer television programming across the
United States to subscribing medical offices with a predominantly
African-American patient base.
Spectrum sells its network to independent physician associations
and currently has 152 offices subscribed to the service with 126
live sites.
ANDERSON NEWS: Judge Dismisses Antitrust Suit Against Publishers
----------------------------------------------------------------
Bankruptcy Law360 reports that Judge Paul Crotty of the U.S.
District Court for the Southern District of New York dismissed an
antitrust suit brought by Anderson News LLC against a host of
single-issue magazine publishers including Time Inc., Rodale Inc.
and American Media Inc. Judge Crotty dismissed the complaint
while ruling on the defendants' motions for summary judgment.
Anderson News LLC is a sales and marketing company for books and
magazines.
In March 2009, Anderson News LLC's creditors filed petitions for
the Company's bankruptcy in the U.S. Bankruptcy Court for the
District of Delaware. These publishing companies claimed that
Anderson News owes them a combined $37.5 million:
-- Hachette Book Group,
-- HarperCollins Publishers,
-- Random House Inc., and
-- Simon & Schuster Inc.
ANDRE CHREKY: Ex-Employees Sue to Ensure Claims Aren't Discharged
-----------------------------------------------------------------
Jacqueline Palank at Dow Jones Daily Bankruptcy Review reports
that Ronnie Barrett and Jennifer Thong -- former employees at
Andre Chreky's high-end salon and spa -- sued Mr. Chreky in
Washington, D.C., bankruptcy court last week, aiming to ensure the
debts Mr. Chreky owes them aren't discharged, a perk offered to
consumers in bankruptcy protection.
Ms. Barrett and Ms. Thong each sued Mr. Chreky in 2006 for
allegedly sexually harassing them at work and then retaliating
when they resisted his advances.
Ms. Palank relates both Ms. Barrett and Ms. Thong argue that their
claims for sexual harassment and retaliation aren't dischargeable
under bankruptcy laws because they arise out of a "willful and
malicious injury" that Mr. Chreky inflicted upon them.
In a trial that took place earlier this year, a jury awarded Ms.
Barrett $2.3 million in damages. Dow Jones says Ms. Barrett holds
a total claim of $4 million for the unpaid damages as well as
attorneys' fees.
Mr. Chreky and his salon filed for Chapter 11 before Ms. Thong's
trial could begin. Dow Jones notes her case is now slated to go
to trial next Monday.
According to Dow Jones, Ms. Thong said that although the amount of
her claim hasn't yet been determined, she's entitled to
compensation for the significant traumatic stress symptoms she's
experienced as a result of Mr. Chreky's alleged harassment, as
well as to payment for the economic loss and damage her career has
suffered.
According to Dow Jones, Mr. Chreky's attorney wasn't immediately
available for comment Tuesday. Dow Jones says court records show
that Mr. Chreky's answers to the lawsuits are due by the end of
the month, and a status hearing is slated for late next month.
Andre Chreky, Inc., filed for bankruptcy on March 19, 2010 (Bankr.
D. D.C. Case No. 10-00267). Andre Chreky also filed a separate
petition on the same day (Bankr. D. D.C. Case No. 10-00268).
Richard Edwin Lear, Esq., at Holland & Knight LLP, in Washington,
DC, serves as bankruptcy counsel. The Debtor estimated $1 million
to $10 million in assets and debts.
ANGELO RODRIGUEZ: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Joint Debtors: Angelo Rodriguez
700 Biltmore Way, #1216
Coral Gables, FL 33134
Yamilet Rodriguez
4041 Collins Avenue, #614
Miami Beach, FL 33140
Bankruptcy Case No.: 10-32099
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (Miami)
Judge: Laurel M. Isicoff
Debtor's Counsel: Geoffrey S. Aaronson, Esq.
100 SE 2nd Street, 27th Floor
Miami, FL 33131
Tel: (786) 594-3000
Fax: (305) 675-3880
E-mail: gaaronson@aaronsonpa.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by the Joint Debtors.
Debtor-affiliate filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Marbella Food LLC 10-32094 07/29/10
Joint Debtors' List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
U.S. Century Bank -- $3,461,610
2301 N.W. 87 Avenue
Miami, FL 33172
Total Bank -- $3,444,112
2720 Coral Way
Miami, FL 33145
Miami-Dade County Tax Collector Real estate $600,000
140 W. Flagler Street, Suite 1407 taxes
Miami, FL 33130
Bac Home Loans Servicing -- $495,575
450 American Street
Simi Valley, CA 93065
Chase -- $465,026
P.O. Box 1093
Northridge, CA 91328
Premier American Bank -- $346,478
5301 Blue Lagoon Drive, Suite 200
Miami, FL 33126
Bank Of America Check Credit or $96,566
Line of Credit
Chase Auto Lease $43,060
Ocean Bank Line of Credit $40,000
Dock & Marine Construction Services $19,314
Chase Credit Card $17,134
American Express Credit Card $11,972
American Express Credit Card $9,691
American Express Credit Card $8,360
Capital One, N.A. Charge Account $7,738
Caf Automobile $2,298
O-Gee Paint Co Supplies $1,505
FPL Electric bill $1,276
Ranked # 1 Pools Services $890
Miami-Dade Water & Sewer Dept. Water/sewer $738
charges
ARAFAT BAKRI: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Arafat Hassan El Bakri
Adrianna Helene Sutherland
8450 Mississippi Blvd. NW
Coon Rapids, MN 55433
Bankruptcy Case No.: 10-45724
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
District of Minnesota (Minneapolis)
Judge: Dennis D. O'Brien
Debtor's Counsel: Steven B. Nosek, Esq.
2855 Anthony Ln S, Suite 201
St Anthony, MN 55418
Tel: (612) 335-9171
Fax: (612) 789-2109
E-mail: snosek@visi.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Joint Debtors' 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mnb10-45724.pdf
The petition was signed by the Joint Debtors.
ARIZONA HEART: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Arizona Heart Institute, LTD.
2632 N. 20th Street
Phoenix, AZ 85006
Bankruptcy Case No.: 10-24062
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: George B. Nielsen Jr.
Debtor's Counsel: C. Taylor Ashworth, Esq.
Tel: (602) 279-1600
E-mail: tashworth@stinson.com
Christopher Graver, Esq.
Tel: (602) 212-8519
E-mail: cgraver@stinson.com
STINSON MORRISON HECKER LLP
1850 N. Central Avenue, #2100
Phoenix, AZ 85004
Fax: (602) 240-6925
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Edward B. Diethrich, M.D., president.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
GE Healthcare Lease: ultrasound $781,095
P.O. Box 641419 and other equipment
Pittsburgh, PA 15264-1419
VAS Communications Services $470,400
2632 N. 20th Street
Phoenix, AZ 85006
Premier Cardiovascular Consult Lease: Casa $208,545
Attn: Angela Szczublewski Grande Office
725 S. Dobston Road, #100
Chandler, AZ 85224
GE Healthcare Services: repair $197,953
and maintenance
American Express, Inc Credit card $152,329
purchases
GE Healthcare Supplier: medical $130,178
supply
Cardinal Health Radioisotope $122,849
Nuclear Pharmacy Services supplier
NextGen Healthcare Information -- $104,061
Astellas Pharma US, Inc. Drug supplies $100,310
Greenberg Traurig, LLP Legal services $71,127
McKesson Information Solution Computer systems $67,025
(PAC system)
Aetna -- $65,517
Teletrak Medical Transcription Transcription $61,076
Services
GE Healthcare Fin Services Innnova 3100 $58,882
Iron Mountain Records Mgmt. Record storage $57,011
Office Depot, Inc. Office supplies $54,357
Physician Sales & Service Drug supplies $47,368
Nighthawk Radiology Svcs, LLC Services $45,250
Anacona Professional Plaza Lease: Surprise $44,921
Office
Facility Group, Inc. Services $36,304
ARTECITY PARK: Section 341(a) Meeting Scheduled for September 1
---------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Artecity
Park LLC's creditors on September 1, 2010, at 2:00 p.m. The
meeting will be held at Claude Pepper Federal Building, 51 SW
First Ave Room 1021, Miami, FL 33130.
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.
Miami Beach, Florida-based Artecity Park LLC filed for Chapter 11
bankruptcy protection on July 26, 2010 (Bankr. S.D. Fla. Case No.
10-31410). Thomas R. Lehman, Esq., who has an office in Miami,
Florida, assists the Company in its restructuring effort. The
Company estimated $50,000,001 to $100,000,000 in assets and
$10,000,001 to $50,000,000 in debts in its Chapter 11 petition.
Affiliates Artecity Governor LLC, Artecity Holding LTD, and
Artecity Management LLC also filed for Chapter 11.
ATHILON CAPITAL: S&P Downgrades Issuer Credit Rating to 'BB-'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its issuer credit
rating on Athilon Capital Corp./ Athilon Asset Acceptance Corp. to
'BB-' from 'BBB-' and its rating on Athilon's senior subordinated
note issues to 'CCC+' from 'B', and removed these ratings from
CreditWatch with negative implications, where S&P had placed them
on June 21, 2010. At the same time, S&P affirmed its ratings on
Athilon's subordinated and junior subordinated note issues. S&P's
outlook on Athilon is stable.
Athilon is a credit derivative product company whose limited
purpose is to sell credit protection primarily on corporate
tranches and two tranches of one collateralized debt obligation of
asset-backed securities transaction in the form of credit default
swaps.
The rating actions reflect S&P's view of the increased projected
loss on the corporate CDS tranches based on Athilon's updated
capital model results, which incorporate S&P's updated criteria.
The rating actions follow the scheduled implementation of S&P's
updated criteria for rating CDPCs with corporate credit exposure
and the subsequent placement of S&P's issuer credit and senior
subordinated note issue ratings on Athilon on CreditWatch
negative.
The downgrades reflect the increased capital amount required on
the corporate tranches at the applicable rating levels pursuant to
S&P's criteria, which S&P received from Athilon after it
incorporated its updated criteria. S&P's view regarding the
projected lifetime loss on the two tranches of one CDO of ABS
transaction, which S&P based on its RMBS lifetime loss estimates,
has not changed since its February 2010 updates. S&P believes
that the current credit support levels for Athilon's issuer credit
and senior subordinated note issue ratings are no longer
consistent with its previous ratings. Therefore, S&P is lowering
its issuer credit and senior subordinated note issue ratings to
levels where the total projected losses on Athilon's corporate and
CDO of ABS tranches are commensurate, pursuant to S&P's criteria,
with the current subordination levels.
S&P's outlook on Athilon is stable based on S&P's view of the
stress default scenario on the corporate CDS tranches and the
lifetime loss projection on the CDO of ABS tranches, as well as
S&P's view on the timing of potential credit events for the CDS on
this CDO of ABS transaction.
Ratings Lowered And Removed From Creditwatch Negative
Athilon Capital Corp./Athilon Asset Acceptance Corp.
Rating
------
Issue To From
----- -- ----
Issuer credit rating BB-/Stable BBB-/Watch Neg
Senior subordinated note issues CCC+ B/Watch Neg
Ratings Affirmed
Athilon Capital Corp./Athilon Asset Acceptance Corp.
Issue Rating
----- ------
Subordinated note issues CCC
Junior subordinated note issues CCC-
ARTS DAIRY: Court Finds Chapter 11 Plan Not Feasible
----------------------------------------------------
WestLaw reports that the Chapter 11 debtor, a limited liability
company formed to operate a dairy farm, failed to show that its
proposed plan of reorganization was "feasible," an Ohio bankruptcy
court held. The debtor, whose farm had a capacity of more than
1,600 dairy cows, was operating at just 75% of capacity, and the
debtor needed to be running at or near capacity in order to
warrant its present overhead. The proposed plan did not call for
an infusion of capital, such that the debtor's present capital
structure would continue to be a burden. The plan's inclusion of
a balloon payment raised a "red flag," the court noted, and the
debtor had yet to find a potential source of alternative
financing. Both the debtor's historical and projected cash flow
was inadequate, and the debtor had been unprofitable for eight of
the ten years of its existence. Since filing for bankruptcy
relief, the debtor had lost $617,466, even with the benefit of the
automatic stay. The court found, too, that the debtor had likely
overstated its production and understated both its necessary costs
and the price it would receive for the sale of milk. In re Arts
Dairy, LLC, --- B.R. ----, 2010 WL 2802640 (Bankr. N.D. Ohio).
Arts Dairy, LLC, located in Convoy, Ohio, and operating a dairy
farm with more than 1,000 cows, sought Chapter 11 protection
(Bankr. N.D. Ohio Case No. 09-32386) on April 14, 2009. The
Debtor is represented by Nathan A. Hall, Esq., at Shumaker, Loop &
Kendrick, LLP, in Toledo, and estimated its assets and liabilities
at $1 million to $10 million at the time of the chapter 11 filing.
ATLANTIC INDUSTRIAL: Discloses Delay of Financial Statements
------------------------------------------------------------
Atlantic Industrial Minerals Incorporated did not file its audited
financial statements for the fiscal year ended February 28, 2010
and its management's discussion and analysis relating to the 2010
Financial Statements before the prescribed deadline of June 28,
2010.
Due to the delay in filing the 2010 Financial Statements, the
Company was unable to file, by the prescribed deadline of July 30,
2010, its interim financial statements for the three month period
ended May 31, 2010 and associated management's discussion and
analysis. The Company anticipates that the Interim Filings will
be made shortly after the Annual Filings are submitted.
The Company intends to satisfy the provisions of the alternative
information guidelines under National Policy 12-203 by issuing bi-
weekly default status reports in the form of news releases so long
as it remains in default of the filing requirements set out above.
The Company intends to make an application to the applicable
securities regulatory authorities under National Policy 12-203
requesting that a management cease trade order be imposed in place
of any general cease trade order in respect of this late filing,
if it is deemed necessary.
About Atlantic Industrial
Atlantic Industrial Minerals Incorporated (TSXV: ANL.V) is a
natural resource company engaged in the production and sale of
industrial minerals.
Atlantic Industrial Mineral's Feb. 28, 2009, balance sheet shows
that liabilities exceed assets by $1.7 million, and its income
statement shows a $3.2 million loss in 2009.
AVIS BUDGET: Dollar Thrifty Investors Should Expect Bidding War
---------------------------------------------------------------
Rolfe Winkler, writing for The Wall Street Journal, says investors
of Dollar Thrifty Automotive Group should expect a bidding war.
Avis Budget Group is offering to acquire Dollar Thrifty in a cash-
and-stock bid valued at $46.50 a share, 17% more than Hertz's
$39.80 bid.
The Journal says Avis is the No. 3 car-rental company by market
share in the U.S., trailing No. 2 Hertz Global Holdings. Dollar
Thrifty is fourth.
According to Mr. Winkler, even at the higher price by Avis, Dollar
Thrifty's shareholders should feel shortchanged. With the shares
still trading at $48, above both offers, they seem to.
Mr. Winkler also relates that at the bid prices proposed,
acquirers would enjoy most of the gains. Mr. Winkler notes
Hertz CEO Mark Frissora has all but guaranteed he would find
$180 million of cost savings over 18 months. "Taxed and
capitalized, those are valued at roughly $1.2 billion, comfortably
higher than the $900 million enterprise value of Hertz's offer,
and even above the $1.1 billion Avis is bidding," Mr. Winkler
says.
"Avis didn't include a synergies estimate in its offer, but
because its Budget brand overlaps with Dollar Thrifty it probably
can find as much to cut," Mr. Winkler says.
He relates Dollar Thrifty's board will find it hard to dismiss
Avis's better bid without inviting lawsuits. Financing seems
doable, and antitrust concerns look no more of a roadblock.
"Hertz could walk away, pocketing a $50 million breakup fee for
its trouble, but the cost savings are worth so much that seems
unlikely. Also, letting Avis do the deal, and close the gap with
market leader Enterprise Rent-A-Car, would leave Hertz in third
place," he says.
About Avis Budget Group
Avis Budget Group -- http://www.avisbudgetgroup.com/-- provides
vehicle rental services, with operations in more than 70
countries. Through its Avis and Budget brands, the Company is a
leading vehicle rental company in each of North America,
Australia, New Zealand and certain other regions based on
published airport statistics. Avis Budget Group is headquartered
in Parsippany, N.J. and has more than 22,000 employees.
At March 31, 2010, the Company had total assets of $10.257 billion
against total current liabilities of $1.328 billion, total
liabilities exclusive of liabilities under vehicle programs of
$4.044 billion and liabilities under vehicle programs of
$5.987 billion, resulting in stockholders' equity of $226 million.
* * *
Avis Budget Car Rental LLC continues to carry Moody's Investors
Service's B2 corporate family rating. Avis Budget Group Inc.
carries Standard & Poor's Ratings Services' B+ corporate credit
rating.
About Hertz Corp.
Hertz Corporation, headquartered in Park Ridge, New Jersey, is an
automobile and equipment rental company.
Hertz carries Moody's B1 Corporate Family Rating and Probability
of Default Rating.
About Dollar Thrifty
Dollar Thrifty Automotive Group, Inc., is headquartered in Tulsa,
Oklahoma. Driven by the mission "Value Every Time," the Company's
brands, Dollar Rent A Car and Thrifty Car Rental, serve value-
conscious travelers in over 70 countries. Dollar and Thrifty have
over 600 corporate and franchised locations in the United States
and Canada, operating in virtually all of the top U.S. and
Canadian airport markets. The Company's approximately 6,400
employees are located mainly in North America, but global service
capabilities exist through an expanding international franchise
network.
At March 31, 2010, the Company had total assets of $2,470,879,000
against total liabilities of $2,047,769,000, resulting in
stockholders' equity of $423,110,000.
* * *
As reported by the Troubled Company Reporter on May 5, 2010,
Dominion Bond Rating Service placed the ratings of Dollar Thrifty
Automotive Group, Inc., including its Issuer Rating of B (high),
Under Review with Positive Implications. This ratings action
follows the announcement that the Company has reached a definitive
agreement to be acquired by the higher-rated Hertz Corporation.
DBRS rates Hertz BB, at the issuer level.
In November 2009, Standard & Poor's Ratings Services raised its
corporate credit rating of Dollar Thrifty to 'B-' from 'CCC', in
light of the Company's improved operating and financial
performance that began in mid-2009. Moody's Investors Service
also upgraded Dollar Thrifty's Probability of Default Rating to
'B3' from 'Caa2' and Corporate Family Rating to 'B3' from 'Caa3'.
BASIC ENERGY: S&P Gives Stable Outlook, Affirms 'B' Rating
----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on oilfield
services provider Basic Energy Services Inc. to stable from
negative. At the same time, S&P affirmed the 'B' corporate credit
rating on the company.
"The rating action follows an improvement in Basic's operating and
financial performance coinciding with a rebound in the North
American land drilling market over the last couple of quarters,"
said Standard & Poor's credit analyst Patrick Y. Lee. Overall
gross margin has increased from approximately 26% in 2009 to more
than 30% in the second quarter of 2010. The company's pressure
pumping business has lead the way with higher utilization and
stronger-than-expected results. S&P's expectations are that this
financial performance will continue through the second half of
2010.
The ratings on Midland, Texas-based oilfield service provider
Basic Energy Services Inc. reflect its participation in the highly
cyclical and competitive U.S. oilfield service markets, its
exposure to volatile hydrocarbon prices, high debt leverage, and
weak interest coverage. The ratings also incorporate capital
spending flexibility during industry downturns.
Standard & Poor's Ratings Services views Basic's business risk
profile as weak. Basic provides a range of well-site services to
oil and natural gas companies. It conducts operations through
four primary operating segments: well servicing (30% of revenues
in 2009), fluid services (41%), completion and remedial services
(26%), and contract drilling (3%). Basic is currently the third-
largest workover rig provider in the U.S. lower 48.
Capital and operating expenditures by exploration and production
(E&P) companies normally influence demand for Basic's services.
In 2009, weak commodity prices, especially natural gas prices,
caused E&P companies to significantly reduce their capital
expenditure programs. This negatively affected most oilfield
services companies, including Basic, both in terms of absolute
EBITDA generation and operating margins. Horizontal drilling,
however, in some of the new shale plays has rebounded despite low
natural gas prices, and the demand for pressure pumping and
related services has aided Basic's performance.
As of June 30, 2010, Basic had approximately $530 million of debt,
which includes S&P's adjustments for operating leases, accrued
interest, and other obligations. Trailing-12-month adjusted debt
to EBITDA and EBITDA to interest were 9x and 1.3x, respectively,
at the end of second quarter 2010. On an annualized second
quarter 2010 basis, however, adjusted debt to EBITDA was less than
5x and EBITDA to interest increased to more than 2x.
S&P assess Basic's overall liquidity as adequate. As of June 30,
2010, liquidity consisted of an unrestricted cash balance of
$73.8 million. Basic currently has no credit facility, but is
contemplating one of up to $35 million. The company has no
maintenance financial covenants associated with its secured notes.
Due to its recent performance, Basic increased the 2010 capital
expenditures budget to $65 million from $35 million. The company
spent minimally on capital expenditures in 2009. Based on current
conditions, S&P expects Basic will continue to draw down on its
cash balance to fund its capital spending and interest payments.
The stable outlook reflects improvements in utilization and
margins that contributed to Basic's stronger performance over the
past couple of quarters. S&P could take a negative ratings action
if operating and financial performance deteriorate, causing credit
metrics to weaken, including debt to annualized quarterly EBITDA
rising above 6x. For that to occur, the second-quarter annualized
EBITDA would have to decline by more than $25 million. S&P deems
the likelihood of that over the next year to be modest based on
its view of the land-based drilling spectrum. The likelihood of
an upgrade, however, is minimal due to the potential of the poor
natural gas pricing environment causing a meaningful decline in
rig count sometime in 2011.
BEAR STEARNS: Fed Trying to Avoid Foreclosing Properties
--------------------------------------------------------
Serena Ng and Carrick Mollenkamp at The Wall Street Journal report
that The Federal Reserve Bank of New York is facing the prospect
of foreclosing on a number of properties in the coming months,
from homes to commercial buildings, a result of a souring mortgage
portfolio it took over when it helped bail out Bear Stearns in
2008.
The Journal relates that, as it deals with delinquent borrowers, a
team of New York Fed officials and outside advisers are trying to
avoid having the U.S. government, along with local sheriff's
departments, seize commercial properties and homes as it copes
with falling real-estate values.
The Journal notes that the Fed, in its 96-year history, hasn't
made or controlled loans to U.S. citizens and businesses outside
of banking since the 1930s, when it was done on a much smaller
scale. Now, under the watchful eye of Congress, the New York Fed
must recoup a $29 billion loan secured by the Bear assets, the
Journal further notes.
According to the Journal, overall, the portfolio that acquired the
Bear assets for $30 billion in March 2008 had a value of
$29.4 billion as of June 30, 2010. The portfolio's value had
dropped to about $25 billion during the depths of the financial
crisis.
The New York Fed hired investment firm BlackRock Inc. to manage
the Bear portfolio and handle negotiations with borrowers while
the regulator has a behind-the-scenes role.
About Bear Stearns
New York City-based The Bear Stearns Companies Inc. (NYSE: BSC)
-- http://www.bearstearns.com/-- was a financial services firm
serving governments, corporations, institutions and individuals
worldwide. The investment bank collapsed in 2008 and was sold in
a distressed sale to JPMorgan Chase in a transaction backed by the
U.S. government.
Grand Cayman, Cayman Islands-based Bear Stearns High-Grade
Structured Credit Strategies Enhanced Leverage Master Fund Ltd.
and Bear Stearns High-Grade Structured Credit Strategies Master
Fund Ltd. were open-ended investment companies, which sought high
income and capital appreciation relative to the London Interbank
Offered Rate, and designed for long-term investors. On July 30,
2007, the Funds filed winding up petitions under the Companies Law
of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen
Beighton at KPMG were appointed joint liquidators. The joint
liquidators filed for Chapter 15 petitions before the U.S.
Bankruptcy Court for the Southern District of New York the next
day. On August 30, 2007, the Honorable Burton R. Lifland denied
the Funds protection under Chapter 15 of the Bankruptcy Code.
BERNARD MADOFF: ASM Capital Offers to Buy Claims at 23% of Value
----------------------------------------------------------------
Michael Rothfeld at The Wall Street Journal reports that
investment firm ASM Capital, based in Woodbury, N.Y., is now
offering to buy claims for 23% of their value, up from 20%,
according to a copy of a letter sent to investors on July 29.
The Journal says ASM also maintained two other options that give
investors smaller up-front payments but let them retain some share
of recoveries by Mr. Picard.
The Journal relates Adam Moskowitz, ASM's president, said the firm
is trying to offer "the most competitive and most compelling
proposal" on the Madoff claims market.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L.
Madoff orchestrated the largest Ponzi scheme in history, with
losses topping US$50 billion.
On December 15, 2008, the Honorable Louis A. Stanton of the
U.S. District Court for the Southern District of New York granted
the application of the Securities Investor Protection Corporation
for a decree adjudicating that the customers of BLMIS are in need
of the protection afforded by the Securities Investor Protection
Act of 1970. The District Court's Protective Order (i) appointed
Irving H. Picard, Esq., as trustee for the liquidation of BLMIS,
(ii) appointed Baker & Hostetler LLP as his counsel, and (iii)
removed the SIPA Liquidation proceeding to the Bankruptcy Court
(Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.).
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in
United States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
BERNARD MADOFF: Proposed Class Suits Delay Picower Settlement
-------------------------------------------------------------
According to Michael Rothfeld at The Wall Street Journal, people
familiar with the situation said negotiations with the estate of
Jeffry Picower over a potential multibillion-dollar legal
settlement that would go to victims of Bernard Madoff's Ponzi
scheme has been delayed by other lawsuits competing for the same
funds.
The Journal notes Irving Picard, the trustee appointed to oversee
the liquidation of the Madoff estate, has said for months that he
was on the verge of a deal with the estate of Florida businessman
Jeffry Picower, whom he said withdrew $7.2 billion from the Ponzi
scheme. Lawyers for Mr. Picard have said in court that the deal
would far exceed $2 billion, more than doubling what he has
collected to date.
According to the Journal, the lawsuits, which seek class-action
status, were filed in federal court in Florida for Madoff
investors whose claims were rejected entirely or in part by Mr.
Picard on grounds that they were based on fictitious profits and
not actual losses.
People familiar with the matter also told the Journal that federal
prosecutors in New York in recent weeks have demanded that the
Picower estate forfeit assets on top of what the trustee is
seeking.
The Journal reports that William Zabel, Esq., a Manhattan
attorney representing Mr. Picower's estate, said he is still
actively engaged in negotiations with Mr. Picard, but wouldn't
settle without a ban on other Madoff-related litigation against
the Picower estate. "We're not about to settle for more than
$2 billion and then be sued by other people for billions," Mr.
Zabel said.
Mr. Picower died in October after suffering a heart attack and
drowning in his pool.
Mr. Picard sued the Florida plaintiffs in March to block them from
pursuing the Picower estate's money, arguing that the efforts
interfered with his responsibility to recover losses from the
Ponzi scheme and serve as the arbiter of claims.
In May, U.S. Bankruptcy Judge Burton Lifland granted Mr. Picard's
request and temporarily blocked the suits from going forward.
That decision is on appeal.
The Journal relates Helen Davis Chaitman, Esq., a lawyer bringing
the two suits for investors, said that if Mr. Picard isn't "going
to represent them, they certainly should be able to pursue their
claims."
According to the Journal, people familiar with the situation said
prosecutors with the U.S. Attorney's office in Manhattan became
involved more recently, seeking forfeiture of additional Picower
assets.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L.
Madoff orchestrated the largest Ponzi scheme in history, with
losses topping US$50 billion.
On December 15, 2008, the Honorable Louis A. Stanton of the
U.S. District Court for the Southern District of New York granted
the application of the Securities Investor Protection Corporation
for a decree adjudicating that the customers of BLMIS are in need
of the protection afforded by the Securities Investor Protection
Act of 1970. The District Court's Protective Order (i) appointed
Irving H. Picard, Esq., as trustee for the liquidation of BLMIS,
(ii) appointed Baker & Hostetler LLP as his counsel, and (iii)
removed the SIPA Liquidation proceeding to the Bankruptcy Court
(Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.).
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in
United States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
BERNARD MADOFF: Prosecutors Amend Suit v. Ex-Employee Bongiorno
---------------------------------------------------------------
Michael Rothfeld at The Wall Street Journal reports that federal
prosecutors on Tuesday increased their demands of a longtime
former employee of Bernard Madoff's firm, Annette Bongiorno,
according to an amended civil lawsuit.
The report says prosecutors are now seeking about $5.1 million in
assets they say Ms. Bongiorno obtained from participating in the
fraud. Prosecutors initially sought about $2.7 million, but are
now suing to obtain two homes and a Mercedes-Benz not included in
the original suit.
A lawyer for Ms. Bongiorno declined to comment, the report adds.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L.
Madoff orchestrated the largest Ponzi scheme in history, with
losses topping US$50 billion.
On December 15, 2008, the Honorable Louis A. Stanton of the
U.S. District Court for the Southern District of New York granted
the application of the Securities Investor Protection Corporation
for a decree adjudicating that the customers of BLMIS are in need
of the protection afforded by the Securities Investor Protection
Act of 1970. The District Court's Protective Order (i) appointed
Irving H. Picard, Esq., as trustee for the liquidation of BLMIS,
(ii) appointed Baker & Hostetler LLP as his counsel, and (iii)
removed the SIPA Liquidation proceeding to the Bankruptcy Court
(Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.).
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in
United States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
BOSQUE POWER: Lenders Submit Own Reorganization Plan
----------------------------------------------------
Less than two weeks after winning a shortening of Bosque Power Co.
LLC's exclusivity period, senior lenders of the Company have
submitted their own reorganization plan that would see them
receive all of the equity in the reorganized Bosque, Bankruptcy
Law360 reports.
Holders of more than $415 million in secured debt would receive a
pro rata share of 100 percent of the equity in the reorganized
Bosque under the plan, Law360 says.
About Bosque Power
Laguna Park, Texas-based Bosque Power Company, LLC, owns and
operates a natural gas fired power plant with a capacity of 800
megawatts. The power-generating facility, located in Laguna Park,
commenced operations as a natural-gas power plant in 2000. Bosque
Power Partners owns 100% of the membership interest in
Bosque Power.
Bosque Power filed for Chapter 11 on March 24, 2010, (Bankr. W.D.
Tex. Case No. 10-60348). Henry J. Kaim, Esq., at King & Spalding
LLP, serves as bankruptcy counsel to the Debtor. The Debtor
tapped Morgan, Lewis & Bockius LLP as special corporate counsel;
Greenhill & Co. LLC as financial advisor; and Kurtzman Carson
Consultants LLC as claims agent. In its petition, the Debtor
estimated assets and debts both ranging from $100,000,001 to
$500,000,000.
BOULDER HIGHWAY: Case Summary & Creditors List
----------------------------------------------
Debtor: Boulder Highway Holding Company, LLC
1000 N. Green Valley Parkway, Suite 440-350
Henderson, NV 89074
Bankruptcy Case No.: 10-24337
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Linda B. Riegle
Debtor's Counsel: Matthew C. Zirzow, Esq.
Gordon & Silver, Ltd.
3960 Howard Hughes Parkway, 9th Floor
Las Vegas, NV 89169
Tel: (702) 796-5555
E-mail: bankruptcynotices@gordonsilver.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
Debtor-affiliates filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Boulder Highway & Gibson Investments, LLC 10-24340 7/30/2010
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of Boulder Highway Holding's list of 6 largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/nvb10-24337.pdf
A copy of Boulder Highway & Gibson Investments' list of 6 largest
unsecured creditors filed together with the petition is available
for free at http://bankrupt.com/misc/nvb10-24340.pdf
The petitions were signed by Debbie White, CPA.
BOYD GAMING: Fitch Downgrades Issuer Default Rating to 'B'
----------------------------------------------------------
Fitch Ratings has downgraded Boyd Gaming's credit ratings:
-- Issuer Default Rating to 'B' from 'B+';
-- Senior secured credit facility to 'B+/RR3' from 'BB-/RR3';
-- Senior subordinated debt to 'CCC/RR6' from 'B-/RR6'.
The Rating Outlook remains Negative. The rating actions affect
the $3 billion credit facility that has roughly $1.9 billion
outstanding, and about $615 million of outstanding subordinated
debt.
The downgrade of Boyd's IDR and the continued Negative Outlook
reflects the operating trend reversal in recent results and
Fitch's increasing concern regarding the refinancing of 2012
maturities, which includes the sizable credit facility and a small
subordinated note. The 'B' IDR still reflects a still solid,
albeit deteriorating free cash flow outlook supported by minimal
capital spending plans. Longer term, Boyd's IDR continues to be
supported by its sizable and somewhat diversified portfolio of
assets, successful operating history, and a solid management track
record.
Stalled Operating Improvement:
Although Boyd's operating performance has been at depressed levels
for some time, there had been some encouraging signs that demand
was bottoming in its core Las Vegas Locals market. Fitch had been
expecting the weak operating environment to persist, but to
reflect a trend of decelerating declines. On a year-over-year
(YoY) basis, wholly-owned adjusted EBITDA in the LV Locals market
declined 25%-40% in each quarter from 3Q'08 through 3Q'09, but
decelerated to a 21% decline in 4Q'09 and an 11% decline in 1Q'10
as YoY comparisons became easier. However, that sequential
improvement stalled in 2Q'10 as wholly-owned adjusted EBITDA
declined 16% in the LV Locals market. Continued pressure in other
markets, including Louisiana, contributed to a decline in overall
wholly-owned adjusted property EBITDA of nearly 20% in 2Q'10,
which was worse than the 18% decline in 1Q'10. As discussed in
Fitch's May 12, 2010 affirmation of Boyd's ratings, there was no
room in the previous rating for the sequential deterioration,
which primarily drove the IDR downgrade.
Refinance Risk:
In addition, the ratings and Outlook incorporate increasing
concern regarding Boyd's refinancing risk with respect to its 2012
maturities. The company has roughly $1.9 billion outstanding on
its $3 billion credit facility, which matures in May 2012. In
addition, the 7.75% subordinated note matures in December 2012 and
has nearly $160 million outstanding. Fitch continues to believe
the company will address these maturities in the next six to nine
months; recognizing that credit facility amend & extend activity
has been a hallmark of the corporate recovery since the depths of
the recession, the concern is somewhat mitigated. That said, the
capital markets have become less accommodating in the last few
months, which is pressuring Fitch's forward free cash flow
outlook. In Fitch's view, the company has had ample opportunities
to term out at least some of this debt over the last year, given
the refinancing activity of many other gaming operators.
The company had been focusing on more immediate financing needs
with the Borgata joint venture refinancing. The Borgata JV credit
facility that is being refinanced expires in January 2011. The
proposed refinancing will result in a roughly $100 million
dividend to Boyd, which is slightly less than Fitch had been
expecting from the refinancing transaction.
The leverage covenant in the company's credit facility was 7.00
times as of June 30, 2010, and the calculation for compliance
under the covenant includes gains on repurchased debt, so Boyd's
leverage for covenant compliance was 6.9x as of the end of 2Q'10.
Since it was originally sized to accommodate additional debt to
fund the Echelon development, the leverage covenant loosens to
7.25x by Sept. 30, 2010, before stepping down to 6.0x by the end
of 2011 and 5.5x by March 31, 2012. The coverage covenant is 2.0x
through expiration. Boyd could have difficulty maintaining
compliance under the financial covenants in upcoming quarters, but
Fitch would expect any potential financial covenant issues to be
accommodated in the refinancing of the credit facility over the
next six to nine months.
No Impact from Recent Station Announcement:
Boyd announced on Friday that it is no longer interested in
acquiring certain assets from Station Casinos, which filed Chapter
11 in July 2009. There had been significant resistance to Boyd's
proposals from Station's constituents since the initial indication
of interest in early 2009, and the likelihood of Boyd completing a
transaction at a reasonable valuation appeared unlikely. Fitch
had previously indicated that ratings were not affected by Boyd's
interest in Station's assets, so there is no ratings impact from
Friday's announcement.
Guidelines for Further Rating Actions:
The Negative Outlook is due to the persistently weak operating
trends, elevated leverage relative to Boyd's business risks and
IDR, and the refinancing risk with respect to 2012 maturities.
If the operating outlook shows increasing evidence of
stabilization and sequential improvement, the company maintains a
solid free cash flow cushion, and the company addresses 2012
maturities over the next six to nine months, Fitch could revise
Boyd's Outlook to Stable, while affirming the 'B' IDR. Fitch's
current base case incorporates wholly-owned adjusted EBITDA (after
corporate expense) of around $275 million in 2010 and $300 million
in 2011, which remains well below the $326 million achieved in
2009 and $382 million in 2008. Fitch estimates Boyd can generate
forward free cash flow of around $75-$100 million annually,
providing some cushion to the weak operating environment.
Conversely, if the operating outlook weakens, the free cash flow
profile is pressured beyond Fitch's current expectations, and the
refinancing environment deteriorates while 2012 maturities
approach becoming a current liability, then Boyd's IDR could be
downgraded. Other potential rating triggers outside of current
operating scenarios would include any impact from the sale of
MGM's stake in the Borgata and any potential acquisitions, as Boyd
has historically been an acquirer of gaming assets. Current
ratings incorporate the expectation that any asset acquisition
would be deleveraging on a proforma basis.
Recovery Ratings:
Boyd's Recovery Ratings reflect Fitch's expectations of relative
recovery characteristics of Boyd's obligations following default
and upon emergence from insolvency. Based on its recovery
scenario, Fitch continues to estimate 51%-70% recovery of the bank
debt, which equates to a 'B+/RR3' rating or a one-notch positive
differential from the 'B' IDR. Fitch estimates subordinated debt
recovery in the 0%-10% range, which equates to a 'CCC/RR6' rating
or a two-notch negative differential from the 'B' IDR.
CHARLES RIVER: Moody's Retains 'Ba2' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service downgraded the rating on Charles River
Laboratories' senior secured credit facility due 2011 to Baa3 from
Baa2. There are no changes to the Ba2 Corporate Family Rating or
any other ratings.
Moody's had expected the 2011 credit facility to be terminated in
conjunction with the WuXi transaction. Following the announcement
that Charles River is not moving forward with its proposed
acquisition of WuXi, Moody's are lowering the credit facility
rating to Baa3, consistent with the current Corporate Family
Rating. Moody's lowered the CFR to Ba2 from Ba1 in June 2010.
Moody's are withdrawing the ratings Moody's had assigned to the
proposed $1.2 billion credit facility that was going to be used to
purchase WuXi.
The Ba2 Corporate Family Rating reflects Charles River's leading
market positions in its core RMS and PCS markets, good geographic
and customer diversity, and high barriers to entry. The rating is
supported by the company's current financial metrics, which
include modest leverage and very good interest coverage. The
ratings are constrained by continued weakness in demand for the
company's pre-clinical services. Further, Moody's believe there
is heightened risk of shareholder friendly initiatives, such as
debt funded share repurchases, which could result in a weakening
of credit metrics.
Ratings downgraded:
* Senior Secured $200 million Revolving Credit Facility due 2011,
to Baa3 (LGD2, 14%) from Baa2 (LGD2, 17%)
* Senior Secured $156 million (face value) Term Loan facility due
2011, to Baa3 (LGD2, 14%) from Baa2 (LGD2, 17%)
Ratings withdrawn:
* Senior Secured $250 million Revolving Credit Facility due 2015,
Ba1 (LGD3, 35%)
* Senior Secured $950 million Term Loan A due 2015, Ba1 (LGD3,
35%)
The outlook is stable.
The last rating action was June 4, 2010 when Moody's downgraded
Charles River's CFR to Ba2 from Ba1.
Charles River, headquartered in Wilmington, MA, is a contract
research organization that provides research tools and services
for drug discovery and development. The company's revenues are
roughly split between the Research Models and Services business,
which involves the commercial production and sale of research
models; and the Preclinical Services business, which involves the
development and safety testing of drug candidates. The company
reported revenues of approximately $1.2 billion for the twelve
months ended June 26, 2010.
CHRYSLER LLC: New Chrysler Wins 70% of Dealer Arbitration Cases
---------------------------------------------------------------
Tim Higgins at Bloomberg News reports that Chrysler Group LLC said
arbitrators ruled in its favor in 70% of cases brought by dealers
who sought reinstatement after the company cut them from its
network. The arbitration process has concluded, and the company
prevailed in 76 of 108 of the decisions, Chrysler said on its Web
site.
Under a law enacted in December, Chrysler was required to offer
binding arbitration to dealers that were terminated in its
bankruptcy reorganization. Of the 789 dealers terminated, 418
applied for arbitration, Mike Palese, a Chrysler spokesman, said
according to Bloomberg. The cases that didn't go to final
arbitration were either settled, dismissed, withdrawn or
abandoned, he said.
"The decisions of a great majority of the arbitrators reflect the
belief that the company's dealer network decisions were not only
appropriate, but essential to its future success," the Company
said in a statement.
Chrysler had 2,315 dealers as of June 30, and 29 previously
rejected locations have accepted company offers to become dealers,
Mr. Palese said. He said more offer letters have been issued and
declined to comment on how many outlets the Company expects to add
back.
"We're definitely within the network size that we're looking for,"
he said. Chrysler expects a total U.S. dealer network of 2,300 by
the end of next year because of attrition and further
consolidation, Mr. Palese said.
About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic
alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram
Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles
and products. Headquartered in Auburn Hills, Michigan, Chrysler
Group LLC's product lineup features some of the world's most
recognizable vehicles, including the Chrysler 300, Jeep Wrangler
and Ram Truck. Fiat will contribute world-class technology,
platforms and powertrains for small- and medium-sized cars,
allowing Chrysler Group to offer an expanded product line
including environmentally friendly vehicles.
About Chrysler LLC
Chrysler LLC and 24 affiliates on April 30 sought Chapter 11
protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case
No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut
Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group
LLC, and Greenhill & Co. LLC, for financial advisory services; and
Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has
changed its corporate name to Old CarCo following its sale to a
Fiat-owned company. As of December 31, 2008, Chrysler had
$39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler
had $1.9 billion in cash at that time.
In connection with the bankruptcy filing, Chrysler reached an
agreement with Fiat SpA, the U.S. and Canadian governments and
other key constituents regarding a transaction under Section 363
of the Bankruptcy Code that would effect an alliance between
Chrysler and Italian automobile manufacturer Fiat. Under the
terms approved by the Bankruptcy Court, the company formerly known
as Chrysler LLC on June 10, 2009, formally sold substantially all
of its assets, without certain debts and liabilities, to a new
company that will operate as Chrysler Group LLC. Fiat has a 20
percent equity interest in Chrysler Group.
Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of
Chrysler LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
CLOPAY AMES: Moody's Assigns 'B2' Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service assigned an initial B2 corporate family
and probability of default rating to Clopay Ames True Temper
Holding Corp., which is a newly formed wholly-owned subsidiary of
Griffon Corporation. Moody's also assigned a Ba2 rating to
Clopay's $150 million new asset based revolving credit facility
and a B2 to the $500 million new senior secured term loan
facility. The rating outlook is stable.
On July 19, 2010, Griffon Corporation, announced it had entered
into a definitive agreement to acquire Ames True Temper (B3,
Stable) for a total purchase price of $542 million. Proceeds from
the $500 million term loan facility and $96 million in cash are
expected to used to fund the acquisition of Ames True Temper. The
transaction is not expected to create operating synergies between
the two companies as Ames will continue to operate independently
with the existing management team in place.
The existing ratings on Ames True Temper are expected to be
withdrawn upon closing of the transaction.
The ratings assigned to Clopay are conditioned upon the closing of
the acquisition and the review of final documents.
Clopay's B2 corporate family rating reflects its relatively modest
revenue size within each of its operating segments, Moody's
expectation that the company will maintain pro forma adjusted
total debt to EBITDA of about 5x for its 2010 fiscal year and high
concentration of sales among its top 5 customers in each of the
business lines.
The rating is supported by Clopay's leading market position in
many of its product segments and Moody's expectation of moderate
free cash flow and adequate liquidity over the next year. Moody's
believe the proposed acquisition will diversify Clopay's revenues
away from the more volatile building products segment.
The stable outlook reflects Moody's view that the company will
face minimal integration issues with Ames True Temper, while
sustaining credit metrics that are adequate for the B2 rating
category.
Ratings Assigned:
* Corporate Family rating at B2;
* Probability of Default rating at B2;
* $150 million asset based revolving credit facility due 2014 at
Ba2 (LGD1, 9%);
* $500 million first lien senior secured term loan due 2016 at B2
(LGD4, 54%);
The rating outlook is stable.
Clopay Ames True Temper Holding Corp., a subsidiary of Griffon
Corporation, is a leading manufacturer of both residential garage
doors, as well as a diverse producer of specialty plastic films
and laminates for hygienic, healthcare and industrial end uses.
Ames True Temper, Inc., is the leading North American manufacturer
and marketer of non-powered lawn and garden tools and accessories.
Ames reported LTM sales of $443 million as of April 3, 2010. Pro
forma net sales for the combined company were $1.25 billion for
the twelve months ended March 31, 2010.
COLLIER LAND: Can Formulate Plan When Coal Operations Resume
------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Pennsylvania
will consider on August 24, 2010 at 1:30 p.m., Collier Land & Coal
Development, LP's request for an extension of its exclusive
periods to propose, and solicit acceptances of, a Chapter 11 plan.
The Debtor asked the Court to extend its exclusive right to file
and solicit acceptances for the proposed plan of reorganization
until October 21, 2010, and December 20, respectively.
The Debtor explained that it would be able to formulate a plan
only when it will have the opportunity to mine and sell coal for
several months uninterrupted. It added that it recently reached
an agreement to sell additional main seam coal to Targe Energy
Coal, LLC. The Debtor believed that this agreement will result in
approximately $160,000 to $200,000 of income within the next 45
days, with a $25,000 upfront payment when Debtor ships the first
load of coal.
About Collier Land & Coal Development, LP
Clairton, Pennsylvania-based Collier Land & Coal Development, LP,
began its operations in 2007 with the intention of mining the coal
on the real estate and then subdividing the land and selling
approximately 59 buildable lots to developers.
The Company filed for Chapter 11 bankruptcy protection on March
25, 2010 (Bankr. W.D. Pa. Case No. 10-22059). Robert S.
Bernstein, Esq., and Scott E. Schuster, Esq., at Bernstein Law
Firm, P.C., assist the Debtor in its restructuring effort. The
Debtor estimated its assets at 10 million to $50 million and debts
at $1 million to $10 million, as of the petition date.
CONQUEST PETROLEUM: Recurring Losses Cue Going Concern Doubt
------------------------------------------------------------
Conquest Petroleum Incorporated filed on August 2, 2010, Amendment
No. 1 to its annual report on Form 10-K/A for the year ended
December 31, 2009, to correct a misstatement in the footnotes to
the financial statements related to the unaudited Note 9,
Supplementary Financial Information on Oil and Natural Gas
Exploration, Development and Production Activities.
M&K CPAS, PLLC, in Houston, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that the Company has insufficient working capital
and reoccurring losses from operations.
The Company reported a net loss of $23.3 million on $914,781 of
revenue for 2009, compared to a net loss of $6.0 million on
$2.0 million of revenue for 2008.
The Company's balance sheet at December 31, 2009, showed
$3.0 million in assets and $20.2 million in liabilities, for a
stockholders' deficit of $17.2 million.
A full-text copy of the Company's Annual Report is available for
free at http://researcharchives.com/t/s?67b8
About Conquest Petroleum
Spring, Tex.-based Conquest Petroleum Incorporated (OTC BB: CQPT)
is an oil and natural gas exploration, development and production
(E&P) company geographically focused on the onshore United States.
The Company's operational focus is the acquisition, through the
most cost effective means possible, of production or near
production of oil and natural gas field assets.
As of December 31, 2009, the Company's estimated total proved oil
and gas reserves were 141,017 barrels of oil equivalent.
CROWN EUROPEAN: Fitch Assigns 'BB-' Rating on Senior Notes
----------------------------------------------------------
Fitch Ratings has assigned a 'BB-' rating to Crown European
Holdings, SA EUR500 million senior unsecured notes due 2018.
Proceeds from the offering will be used to retire near-term
maturities including all or a portion of the company's outstanding
EUR150 million first priority senior secured notes due 2011 and
provide funds for general corporate purposes. Crown has also
announced the redemption of $200 million of Crown Americas, LLC
(CA) unsecured notes due 2013 on Aug. 27, 2010. The ratings on
the 2013 notes will be withdrawn at the time of redemption. The
Rating Outlook is Positive.
The ratings for Crown Holdings, Inc., and its subsidiaries Crown
Cork & Seal Company, Inc., CA, and CEH have been affirmed:
Crown:
-- Issuer Default Rating at 'BB-'.
CCS:
-- IDR at 'BB-';
-- Senior unsecured notes at 'B+'.
CA:
-- IDR at 'BB-';
-- Senior secured dollar term facility at 'BBB-';
-- Senior secured dollar revolving facility at 'BBB-';
-- Senior unsecured notes at 'BB-'.
CEH:
-- IDR at 'BB-';
-- Senior secured Euro term facility at 'BBB-';
-- Senior secured Euro revolving facility at 'BBB-';
-- Senior secured Euro 1st priority notes at 'BBB-';
The ratings of Crown reflect the stability of the company's cash
flows despite a challenging economic environment that pressured
volumes during 2009 in certain segments, as cost-containment
measures and price increases have led to continued profitability
improvements. Underlying volume demand has continued to recover
in 2010 as the company additionally benefits from new capacity
coming on line, thus driving growth. Consequently, with
expectations for stable profitability, Fitch anticipates at least
modest growth in EBITDA for 2010. Fitch also believes Crown's
geographical diversification across both mature and emerging
markets with a diverse customer mix results in a more balanced
revenue stream that lends greater stability through economic
cycles.
Crown's credit profile has strengthened through debt repayment, an
improved maturity profile, and increased liquidity that has
resulted in leverage and interest coverage improvements. Fitch
further expects Crown's operational prospects and credit profile
to strengthen during 2010. Adjusted leverage (including accounts
receivable securitization and lease expense) at the end of the
second quarter of 2010 was 3.2 times. Based upon its strengths,
Fitch believes Crown is well-positioned to sustain operating free
cash flow levels. With the company nearing its net leverage goal
of 2.0x or less, Fitch expects the company will balance its use of
FCF between debt reduction and share repurchases in 2010. FCF in
2010 is anticipated to be in excess of $400 million. The company
also expects to significantly increase its capital expenditures in
2010 to approximately $300 million, with a particular focus on
increasing capacity in Asia and Brazil. Capital spending will
likely remain at that level in 2011. With the improvement in its
credit profile and considerable FCF generation, Crown certainly
has capacity to consider acquisitions, but Fitch believes any
acquisition would likely be of smaller size as opportunities for a
larger acquisition appear limited at this time. By the end of
2010, Fitch expects adjusted leverage in the range of 2.7x-2.9x.
Longer term, with the company within its leverage targets, Fitch
expects Crown will shift the majority of its excess cash to
shareholder-friendly initiatives after satisfying organic growth
opportunities. Crown has a $500 million share repurchase program
that expires at the end of 2010 with $467 million of availability.
Management expects the board will likely extend and potentially
upsize it in the future.
Credit risks include the increase in revenue exposure to more
volatile, higher-growth emerging markets, the asbestos liability
and pension funding, while Fitch currently views that Crown has
significant flexibility to address any additional cash
requirements on the business.
Crown's amended credit facility enhances the liquidity profile of
the company by extending the revolving facility's maturity by
approximately four years, increasing the aggregate size of the
facility by $400 million to $1.2 billion, and reducing the size of
the term loan commitments due in November 2012. Crown's amended
senior secured credit facilities now include revolving facilities
that will mature on June 15, 2015 as well as $194 million of
existing revolving facilities that mature on May 15, 2011, for
lenders that elected not to convert their commitments into the
extended revolving facilities. Crown's existing term loan
facilities mature on Nov. 15, 2012 and now total approximately
$286 million. The company used borrowings under the new revolving
credit facilities to repay $200 million of its existing U.S.
dollar term loan and the equivalent of $200 million on Crown's
Euro term loan.
Crown's liquidity is very good and includes a mix of cash,
availability under its revolving facility and securitization
programs, as well as significant levels of expected FCF for 2010.
Liquidity was approximately $1 billion at the end of the second
quarter of 2010, with $412 million of cash, $566 million of
borrowing capacity available under its revolving credit facility,
and approximately $30 million of availability under Crown's Euro
and North American securitization programs. Current maturities
are relatively minimal during the next two years due to
concentrated efforts in the past several quarters to reduce and
extend debt maturities. Crown's debt agreements give the company
significant flexibility and it currently has a material capacity
to issue additional debt.
The Rating Outlook is currently Positive. As the company's
business segments further improve from the numerous strategic
actions that Crown has undertaken including additional debt
reduction, Fitch expects Crown's financial and credit profile to
continue to improve, which will likely result in a ratings upgrade
in the second half of 2010.
CUSTOM CABLE: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Custom Cable Industries, Inc.
aka CCI
3221 Cherry Palm Drive
Tampa, FL 33619-8359
Bankruptcy Case No.: 10-18478
Chapter 11 Petition Date: July 30, 2010
About the Debtor: Custom Cable Industries Inc. is a manufacturer
and installer of audio, video and fiber-optic
cables.
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Michael P. Horan, Esq.
Trenam Kemker Scharf Barkin Frye et al.
1600 Bank of America Tower
200 Central Avenue
St. Petersburg, FL 33701
Tel: (727) 896-7171
Fax: (727) 822-8048
E-mail: mhoran@trenam.com
Stephanie C. Lieb, Esq.
Trenam Kemker Scharf Barkin Frye et al.
P.O. Box 1102
Tampa, FL 33601-1102
Tel: (813) 223-7474
Fax: (813) 229-6553
E-mail: slieb@trenam.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A copy of the Company's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/flmb10-18478.pdf
The petition was signed by Gregg Stewart, general manager.
CUTTING EDGE: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Cutting Edge Granite, Inc.
12350 Belcher Road, Suite 13A
Largo, FL 33773
Bankruptcy Case No.: 10-18306
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Caryl E. Delano
Debtor's Counsel: Marshall G. Reissman, Esq.
Reissman & Blanchard, P.A.
5150 Central Avenue
St. Petersburg, FL 33707
Tel: (727) 322-1999
Fax: (727) 327-7999
E-mail: marshall@reissmanlaw.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $100,000,001 to $500,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Lawrence R. Crowley, president.
CYBERDEFENDER CORP: June 30 Balance Sheet Upside-Down by $5.9MM
---------------------------------------------------------------
CyberDefender Corporation reported total assets of $18,622,110
against total liabilities of $24,534,907, resulting stockholders'
deficit of $5,912,797, as of June 30, 2010.
The Company reported a net loss of $4,895,911 for the three months
ended June 30, 2010, from a net loss of $4,815,567 for the same
period in 2009. The Company reported a net loss of $6,776,838 for
the first half of 2010 from $9,632,618 for the same period in
2009.
The Company's net sales were $9,712,586 for the three months ended
June 30, 2010, from $3,686,644 for the same period in 2009. Net
sales were $19,189,916 for the six months ended June 30, 2010,
from $6,878,274 for the same period in 2009.
A full-text copy of the Company's earnings release is available at
no charge at http://ResearchArchives.com/t/s?67ae
CyberDefender Corporation (NASDAQ: CYDE) --
http://www.cyberdefender.com/-- provides Internet security
software, utilities and Live PC Support services that work
together to provide maximum safety for consumers in a digital
world. CyberDefender develops and markets antispyware/antivirus
software and remote, live tech support services. In addition,
CyberDefender offers identity protection and computer optimization
services. With millions of active users on its cloud-based
Collaborative Internet Security Network, CyberDefender leverages
the power of community to protect its customers from the rapidly
growing number of new online threats every year. CyberDefender
products are fully compatible with Microsoft's XP, Vista, and 7
Operating systems.
DA-LITE SCREEN: July 2 Balance Sheet Upside-Down by $44.4 Million
-----------------------------------------------------------------
Da-Lite Screen Company, Inc.'s consolidated balance sheets at
July 2, 2010, showed total assets of $68.7 million and total
liabilities of $113.1 million, resulting to $44.4 million in
stockholder's deficit. In comparison, the Company's consolidated
balance sheets as of the fiscal year ended January 1, 2010, showed
total assets of $63.3 million and $109.6 million, for a
stockholders' deficit of $46.4 million.
The Company reported net income of $4.5 million for the 13 weeks
ended July 2, 2010, compared to a net loss of $3.2 million for the
13 weeks ended July 3, 2009. Net sales were $33.9 million for the
13 weeks ended July 2, 2010, as compared to $31.4 million for the
13 weeks ended July 3, 2009. Sales benefited from an improvement
in economic activity during the second quarter, including the
Hospitality, Business/IT and housing markets.
Results for the 13 weeks ended July 3, 2009, include a goodwill
impairment charge of $5.9 million as a result of the impairment
charge recorded at the Projecta BV reporting unit. There were no
impairment charges in the 13 weeks ended July 2, 2010.
The Company reported net income of $7.9 million for the 26 weeks
ended July 2, 2010, compared to net income of $968,000 for the 27
weeks ended July 3, 2009. Net sales were $65.2 million for the 26
weeks ended July 2, 2010, as compared to $65.1 million for the 27
weeks ended July 3, 2009.
A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?67b7
About Da-Lite Screen
Warsaw, Ind.-based Da-Lite Screen Company, Inc.
-- http://www.da-lite.com/-- manufactures and distributes
projection screens. Da-Lite's projection screens, which are
focused on the premium end of the large screen market, are used in
a wide range of settings including conference rooms, educational
institutions, live entertainment venues, meeting rooms, training
facilities, houses of worship and private homes.
DAVID DUNNE: Court Extends Filing of Schedules Until August. 16
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington
has extended, at the behest of David Micahel Dunne and Jo Ann
Elizabeth Dunne, the deadline for the filing of schedules of
assets and liabilities and statement of financial affairs until
August 16, 2010.
The previous deadline for the schedules was August 5, 2010. The
Debtors requested that the deadline be moved because they needed
additional time to prepare the schedules. According to the
Debtors, their financial affairs are complex. The Debtors have
ownership interests in approximately 40 entities, mostly limited
liability companies. "The Schedules are expected to show assets
and liabilities in the tens of millions of dollars. This case was
filed somewhat unexpectedly in response to aggressive collection
activity by a judgment creditor. Additional time is needed to
prepare the schedules," the Debtors said.
Lake Tapps, Washington-based David Michael Dunne, aka D Michael
Dunne, and Jo Ann Elizabeth Dunne filed for Chapter 11 bankruptcy
protection on July 22, 2010 (Bankr. W.D. Wash. Case No. 10-45981).
Timothy W. Dore, Esq., at Ryan Swanson & Cleveland PLLC, assists
the Joint Debtors in their restructuring effort. The Debtors
estimated assets and debts at $10,000,001 to $50,000,000 as of the
Petition Date.
DAVID DUNNE: Section 341(a) Meeting Scheduled for August 26
-----------------------------------------------------------
The U.S. Trustee for Region 18 will convene a meeting of David
Michael Dunne's creditors on August 26, 2010, at 1:30 p.m. The
meeting will be held at Courtroom J, Union Station, 1717 Pacific
Avenue, Tacoma, WA 98402.
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.
Lake Tapps, Washington-based David Michael Dunne, aka D Michael
Dunne, and Jo Ann Elizabeth Dunne filed for Chapter 11 bankruptcy
protection on July 22, 2010 (Bankr. W.D. Wash. Case No. 10-45981).
Timothy W. Dore, Esq., at Ryan Swanson & Cleveland PLLC, assists
the Joint Debtors in their restructuring effort. The Debtors
estimated assets and debts at $10,000,001 to $50,000,000 as of the
Petition Date.
DAVID POPPENGA: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: David Reed Poppenga
3225 W. Silverleaf Avenue
Springfield, MO 65807
Bankruptcy Case No.: 10-61863
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Western District of Missouri (Springfield)
Judge: Arthur B. Federman
Debtor's Counsel: M. Brent Hendrix, Esq.
1909 E. Bennett Street
Springfield, MO 65804
Tel: (417) 889-8820
Fax: (417) 889-3493
E-mail: brenthendrix@sbcglobal.net
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of creditors together with his
petition.
The petition was signed by the Debtor.
DIAMOND RESORTS: S&P Assigns 'CCC+' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned Diamond Resorts Parent
LLC its 'CCC+' corporate credit rating. At the same time, S&P
placed the rating on CreditWatch with positive implications. The
CreditWatch listing reflects S&P's expectation that S&P would
raise the 'CCC+' corporate credit rating by one notch, to 'B-'
with a positive outlook, upon the successful completion of the
proposed notes financing and refinancing of the company's conduit
facility.
In addition, S&P assigned the company's proposed $425 million
senior secured notes due 2018 S&P's preliminary issue-level rating
of 'B-' with a preliminary recovery rating of '4', indicating
S&P's expectation of average (30% to 50%) recovery for noteholders
in the event of a payment default. The company plans to use the
proceeds from the proposed notes offering to repay its revolving,
first-lien, and second-lien credit facilities, and to bolster cash
balances.
The expected 'B-' corporate credit rating reflects the company's
somewhat weak EBITDA and funds from operations coverage of
interest in the low- to mid-1x area (by S&P's measure of
consolidated EBITDA and S&P's measure of coverage, including
securitization interest expense) and high debt leverage in the 6x
to 7x area over the next few years. The rating also reflects
Diamond Resorts' reliance on external sources of capital to
achieve its current sales budget. These factors are somewhat
tempered by the company's well developed and cash flow positive
management business, and solid contracts with homeowners'
associations that currently allow for some inventory recapture at
a lower cost than expenditure levels historically invested in
resort development.
S&P's measure of EBITDA differs from the company's calculation, as
S&P add back some noncash items to operating income, but only cost
of vacation ownership interests sold net of the company's use of
cash to repurchase defaulted VOI inventory. In the event the
company restarts its historical investment strategy of resort
development, which seems unlikely over the next three to five
years, S&P would likely take a more conservative view of measuring
EBITDA without adding back the cost of VOI sales. S&P expects its
measure of EBITDA coverage of interest to be 1.4x in 2010 and its
measure of FFO coverage of interest to be 1.3x in 2010. S&P
expects both of these coverage measures to improve modestly to the
mid-1x area in 2011. This incorporates S&P's assumption that cash
sales will comprise 50% to 70% of VOI sales in 2010 and 2011, and
that revenue and cash generated from the resort management
business will continue to improve modestly. These measures are
adequate for the expected 'B-' rating given S&P's expectation that
Diamond's liquidity profile will continue to be supported by good
access to external financing through securitization and conduit
facility markets. In S&P's view, conduit facility availability
represents an important alternative source of cash and provides
some cushion against potential periods of operating cash flow
decline.
The rating also reflects Diamond's high debt leverage. S&P
expects S&P's measure of adjusted debt to EBITDA to be about 7x in
2010 and 6x in 2011. S&P's measure of debt is adjusted for
operating leases and includes conduit and securitization debt.
Management has, with some success, implemented a strategy starting
in 2008 to minimize timeshare development spending by focusing on
using cash to purchase defaulted timeshare inventory through
recovery and remarketing agreements with Home Owners Associations.
S&P believes that this spending will continue at a level in the
mid-$20 million area over the next several years, which should
allow Diamond to maintain inventory levels in balance with its
expectation for customer sales demand.
DOLLAR THRIFTY: Investors Should Expect Bidding War, WSJ Says
-------------------------------------------------------------
Rolfe Winkler, writing for The Wall Street Journal, says investors
of Dollar Thrifty Automotive Group should expect a bidding war.
Avis Budget Group is offering to acquire Dollar Thrifty in a cash-
and-stock bid valued at $46.50 a share, 17% more than Hertz's
$39.80 bid.
The Journal says Avis is the No. 3 car-rental company by market
share in the U.S., trailing No. 2 Hertz Global Holdings. Dollar
Thrifty is fourth.
According to Mr. Winkler, even at the higher price by Avis, Dollar
Thrifty's shareholders should feel shortchanged. With the shares
still trading at $48, above both offers, they seem to.
Mr. Winkler also relates that at the bid prices proposed,
acquirers would enjoy most of the gains. Mr. Winkler notes
Hertz CEO Mark Frissora has all but guaranteed he would find
$180 million of cost savings over 18 months. "Taxed and
capitalized, those are valued at roughly $1.2 billion, comfortably
higher than the $900 million enterprise value of Hertz's offer,
and even above the $1.1 billion Avis is bidding," Mr. Winkler
says.
"Avis didn't include a synergies estimate in its offer, but
because its Budget brand overlaps with Dollar Thrifty it probably
can find as much to cut," Mr. Winkler says.
He relates Dollar Thrifty's board will find it hard to dismiss
Avis's better bid without inviting lawsuits. Financing seems
doable, and antitrust concerns look no more of a roadblock.
"Hertz could walk away, pocketing a $50 million breakup fee for
its trouble, but the cost savings are worth so much that seems
unlikely. Also, letting Avis do the deal, and close the gap with
market leader Enterprise Rent-A-Car, would leave Hertz in third
place," he says.
About Avis Budget Group
Avis Budget Group -- http://www.avisbudgetgroup.com/-- provides
vehicle rental services, with operations in more than 70
countries. Through its Avis and Budget brands, the Company is a
leading vehicle rental company in each of North America,
Australia, New Zealand and certain other regions based on
published airport statistics. Avis Budget Group is headquartered
in Parsippany, N.J. and has more than 22,000 employees.
At March 31, 2010, the Company had total assets of $10.257 billion
against total current liabilities of $1.328 billion, total
liabilities exclusive of liabilities under vehicle programs of
$4.044 billion and liabilities under vehicle programs of
$5.987 billion, resulting in stockholders' equity of $226 million.
* * *
Avis Budget Car Rental LLC continues to carry Moody's Investors
Service's B2 corporate family rating. Avis Budget Group Inc.
carries Standard & Poor's Ratings Services' B+ corporate credit
rating.
About Hertz Corp.
Hertz Corporation, headquartered in Park Ridge, New Jersey, is an
automobile and equipment rental company.
Hertz carries Moody's B1 Corporate Family Rating and Probability
of Default Rating.
About Dollar Thrifty
Dollar Thrifty Automotive Group, Inc., is headquartered in Tulsa,
Oklahoma. Driven by the mission "Value Every Time," the Company's
brands, Dollar Rent A Car and Thrifty Car Rental, serve value-
conscious travelers in over 70 countries. Dollar and Thrifty have
over 600 corporate and franchised locations in the United States
and Canada, operating in virtually all of the top U.S. and
Canadian airport markets. The Company's approximately 6,400
employees are located mainly in North America, but global service
capabilities exist through an expanding international franchise
network.
At March 31, 2010, the Company had total assets of $2,470,879,000
against total liabilities of $2,047,769,000, resulting in
stockholders' equity of $423,110,000.
* * *
As reported by the Troubled Company Reporter on May 5, 2010,
Dominion Bond Rating Service placed the ratings of Dollar Thrifty
Automotive Group, Inc., including its Issuer Rating of B (high),
Under Review with Positive Implications. This ratings action
follows the announcement that the Company has reached a definitive
agreement to be acquired by the higher-rated Hertz Corporation.
DBRS rates Hertz BB, at the issuer level.
In November 2009, Standard & Poor's Ratings Services raised its
corporate credit rating of Dollar Thrifty to 'B-' from 'CCC', in
light of the Company's improved operating and financial
performance that began in mid-2009. Moody's Investors Service
also upgraded Dollar Thrifty's Probability of Default Rating to
'B3' from 'Caa2' and Corporate Family Rating to 'B3' from 'Caa3'.
E-BRANDS RESTAURANTS: Case Summary & Creditors List
---------------------------------------------------
Debtor: E-Brands Restaurants, LLC
fka E-Brands Acquisition, LLC
dba Canonita Express
7680 Universal Boulevard, Suite 195
Orlando, FL 32819
Bankruptcy Case No.: 10-18282
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Judge: K. Rodney May
Debtor's Counsel: Richard C. Prosser, Esq.
Stichter, Riedel, Blain & Prosser PA
110 E. Madison Street, Suite 200
Tampa, FL 33602
Tel: (813) 229-0144
E-mail: rprosser.ecf@srbp.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petitions were signed by Charles E. Robinson, president and
chief manager.
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No. Petition Date
------ ------- -------------
Aquaknox, LLC 10-18278 7/30/10
Assets: $1,000,001 to $10,000,000
Debts: $10,000,001 to $50,000,000
Timpano Acquisition, LLC 10-18286 7/30/10
Timpano of Maryland, LLC 10-18297 7/30/10
Assets: $500,001 to $1,000,000
Debts: $10,000,001 to $50,000,000
Samba Room Acquisition, LLC 10-18290 7/30/10
Star Concepts Acquisition, LLC 10-18292 7/30/10
Assets: $500,000 to $1,000,000
Debts: $10,000,000 to $50,000,000
DBEB, LLC 10-18295 7/30/10
A copy of E-Brands' list of 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/flmb10-18282.pdf
A list of Timpano of Maryland's 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/flmb10-18297.pdf
ENERGY FUTURE: Won't Sell or Spin Off Oncor Unit
------------------------------------------------
Mark Peters, writing for Dow Jones Newswires, reports that Energy
Future Holdings Corp. Chief Executive John Young in a conference
call Tuesday said the Company is not planning to sell or spin off
its Oncor unit as part of a strategy to manage tens of billions of
dollars in debt.
"We like the asset, we like the cash generation," Mr. Young said,
according to the report.
Dow Jones relates that investors and analysts in recent weeks have
speculated the company is preparing to sell Oncor, pointing to the
terms of the company's latest debt exchange offer. The report
says a sale of Oncor would face regulatory restrictions until late
2012.
As reported by the Troubled Company Reporter, Energy Future
Holdings said July 16 that its direct, wholly owned subsidiary,
Energy Future Intermediate Holding Company LLC, and EFIH's direct,
wholly owned subsidiary, EFIH Finance Inc., are commencing
exchange offers to exchange the outstanding 11.250%/12.000% Senior
Toggle Notes due 2017 and 10.875% Senior Notes due 2017 of EFH
Corp. for up to $2.18 billion aggregate principal amount of
10.000% Senior Secured Notes due 2020 to be issued by the Offerors
and an aggregate of $500 million in cash. The maximum aggregate
principal amount of New Senior Secured Notes issuable in the
Exchange Offers will not exceed $2.18 billion.
The offer represents 72% of par for the 11.25%/12% 2017 toggle
notes and 79 cents in the dollar for the 10.875% 2017 notes.
The purpose of the Exchange Offers is to reduce the outstanding
principal amount, reduce interest expense and extend the weighted
average maturity, of the long-term debt of EFH Corp. and its
subsidiaries.
EFH Corp. is also soliciting consents from holders of Old Notes to
certain proposed amendments to the indenture pursuant to which the
Old Notes were issued.
Institutional investors holding 52% of the aggregate principal
amount of outstanding Old Notes have agreed to participate in the
Exchange Offers and the Consent Solicitation.
Energy Future Holdings has $20.4 billion in debt maturing in 2014.
The Company's overall long-term debt is $36.8 billion excluding
Oncor's debt.
About Energy Future
Energy Future Holdings Corp. is a privately held diversified
energy holding company with a portfolio of competitive and
regulated energy businesses in Texas. Oncor, an 80%-owned entity
within the EFH group, is the largest regulated transmission and
distribution utility in Texas. The Company delivers electricity
to roughly three million delivery points in and around Dallas-
Fort Worth.
EFH Corp. was created in October 2007 for the buyout of Texas
power company TXU in a deal led by private-equity companies
Kohlberg Kravis Roberts & Co. and TPG Inc.
* * *
As reported by the Troubled Company Reporter on July 21, 2010,
Moody's Investors Service downgraded the probability of default
rating for Energy Future Holdings to Ca from Caa2 and changed the
speculative grade liquidity assessment to SGL-4 from SGL-3. EFH's
corporate family rating is affirmed at Caa1 and its rating outlook
remains negative. Separately, Moody's affirmed the Baa1 senior
secured rating for Oncor Electric Delivery Company LLC and its
stable rating outlook.
The downgrade of the PDR reflects Moody's view that EFH's recent
debt exchange offer is a distressed exchange. It also reflects
Moody's belief that the exchange transaction has a high likelihood
of closing. During the exchange offer process, the Ca PDR will
prevail. Upon closing of the exchange, the PDR will be
repositioned to reflect the limited default that will have
occurred and to consider Moody's views that future restructuring
activity is likely to continue.
"Upon closing of the exchange transaction, EFH is expected to have
reduced its total consolidated debt by almost $1 billion" said Jim
Hempstead, Senior Vice President "but Moody's incorporate a view
that additional restructuring activity is likely over the near to
intermediate term horizon".
ERNIE JACOBSEN: Wants 90 Days Exclusivity Extension
---------------------------------------------------
The Hon. David W. Houston, III, of the U.S. Bankruptcy Court for
the Northern District of Mississippi will consider on August 23,
2010, at 10:00 a.m., the extension on Ernie Lee Jacobsen and Donna
Jean Jacobsen's exclusive periods to file and solicit acceptances
for the proposed Chapter 11 Plan. Responses to the Debtors'
motion are due on August 18.
The Debtors asked the Court that they be granted 90 days extension
to submit a Chapter 11 Plan, and a similar extension to obtain
acceptances for the Plan.
Ernie Lee Jacobsen and Donna Jean Jacobsen filed for Chapter 11
bankruptcy protection on October 29, 2009 (Bankr. N.D. Miss. Case
No. 09-15667). The Joint Debtors listed assets of $15,283,881 and
debts of $16,518,690 in their schedules.
FAIRFIELD RESIDENTIAL: Plan Declared Effective on Aug. 1
--------------------------------------------------------
Fairfield Residential LLC filed a notice with the Bankruptcy Court
disclosing that its Third Amended Joint Plan of Reorganization
became effective on August 1, 2010. The Court confirmed the Plan
on July 6.
Andrew Hinkelman has been appointed as responsible person under
the Plan.
The Plan is supported by new equity from Brookfield Asset
Management and the Company's long-standing partner, California
State Teachers' Retirement System. Brookfield will get a 65%
stake in the Company.
The Troubled Company Reporter, citing Bloomberg News columnist
Bill Rochelle, reported on July 8, 2010, that Brookfield is
providing $180 million in new-money financing for the Plan, which
includes a $19.5 million distribution for Fairfield's unsecured
creditors. Brookfield's investment includes working capital, a
follow-on investment, a revolving credit and $100 million as a
limited partner co-investor.
Under the terms of the Plan, Fairfield will receive a new money
investment that will enable the Company to commence creditor
payouts, maintain its property management, asset management,
construction services and general partner functions and complete
future real estate acquisitions following Fairfield's emergence
from Chapter 11 protection.
About Fairfield Residential
San Diego, California-based Fairfield Residential LLC is a fully
integrated multifamily housing company that through its various
subsidiaries provides a diverse mix of services to a wide range of
investors, joint venture partners and clients. FFR either
directly or indirectly acts as a general partner or managing
member of, and owns varying stakes in, a number of project level
operating companies.
The Company and its affiliates -- FF Development, Inc., et al. --
filed for Chapter 11 bankruptcy protection on December 13, 2009
(Bankr. D. Del. Case No. 09-14378). Richard A. Chesley, Esq., and
Kimberly D. Newmarch, Esq., at Paul, Hastings, Janofsky & Walker
LLP, in Chicago, Illinois; and Daniel J. DeFranceschi, Esq., Lee
E. Kaufman, Esq., Paul Noble Heath, Esq., and Travis A. McRoberts,
Esq., at Richards, Layton & Finger, P.A., assist the Debtors in
their restructuring efforts. Imperial Capital, LLC and FTI
Consulting Inc serve as the Debtors' restructuring advisors.
The Official Committee of Unsecured Creditors is represented by
Brett H. Miller, Esq., Stefan W. Engelhardt, Esq., and Melissa A.
Hager, Esq., at Morrison & Foerster LLP; and William E. Chipman
Jr., Esq., Kerri K. Mumford, Esq., and Kimberly A. Brown, Esq.,
at Landis Rath & Cobb LLP. Fairfield Residential estimated
$100 million to $500 million in assets and more than $1 billion
in debts in its petition.
FGIC CORPORATION: Files for Chapter 11 with Plan
------------------------------------------------
FGIC Corporation filed for Chapter 11 bankruptcy protection in New
York on August 3 (Bankr. S.D.N.Y. Case No. 10-14215).
FGIC submitted a Chapter 11 plan of reorganization and an
explanatory disclosure statement on the petition date. The Plan
provides that holders of general unsecured claims, including MBIA,
Inc., on account of their allowed claims against FGIC Corp., will
receive cash and common stock in reorganized FGIC Corp
The Company said in a statement that the Chapter 11 filing will
enable it to deleverage its balance sheet and restructure more
than $300 million of debt. Having already filed a proposed
reorganization plan, the Company expects to progress quickly
through the Chapter 11 case.
None of its subsidiaries or affiliates, including its wholly-owned
subsidiary Financial Guaranty Insurance Company, are part of the
Chapter 11 filing. FGIC has been engaged in ongoing efforts to
restore FGIC's surplus to policy holders.
JPMorgan Chase Bank, N.A., as administrative agent for the
Debtor's lenders owed $46 million under a prepetition revolving
credit facility, and MBIA, owner of 35.2%1 of the 6% Senior Notes
Due 2034, have conveyed support for the Plan. According to the
creditors' list, bondholders, led by Wilmington Trust as indenture
trustee, are owed a total of $345.5 million.
According to MBIA, FGIC's timely restructuring is necessary to
preserve the substantial value of FGIC's net operating losses.
The Debtor said in bankruptcy court filings that assets have a
book value of $11.5 million while debts total $391.5 million as of
June 30, 2010. FGIC's balance sheet dated Dec. 31, 2009, showed
$4.4 billion in assets.
Brian S. Lennon, Esq., at Kirkland & Ellis LLP --
brian.lennon@kirkland.com -- serves as counsel to the Debtor.
Garden City Group, Inc., is the claims and notice agent.
Insurance Unit's Woes
FGIC Corporation is a privately held insurance holding company.
FGIC Corp's main business interest lies in the holdings of the
bond insurer Financial Guaranty Insurance Company --
http://www.fgic.com-- and it depends on dividend payments by FGIC
for sustaining its operations. According to Reuters, FGIC had
stopped paying dividends to parent FGIC Corp. since January 2008.
"The deterioration in the U.S. housing and mortgage markets that
began in 2007 and continues through today has had a significant
adverse impact on the financial condition of the FGIC," the
Company said in a court filing.
Due to sustained increases in the number of U.S. mortgage defaults
and foreclosures, a large number of the FGIC-insured mortgage
securities have soured leading to losses, the Company said,
according to Reuters.
"As a result, during 2007, 2008 and 2009, FGIC paid claims on its
insurance policies far in excess of historical levels," the
Company said. The continuing losses stemming from FGIC-insured
mortgage securities resulted in FGIC's surplus to decrease to
about negative $1.640 billion.
Reuters relates that FGIC Corp said as a result of the insurance
unit's inability to remit dividends, it was unable to satisfy its
obligations under the revolving credit agreement.
FINLAY ENTERPRISES: Liquidating Plan Declared Effective
-------------------------------------------------------
BankruptcyData.com reports that Finlay Enterprises' Plan of
Liquidation become effective.
The Plan contemplates the liquidation of the Debtors' remaining
assets by a plan administrator. After payment of all allowed
administrative expense claims, allowed priority tax claims,
allowed professional compensation and reimbursement claims,
allowed other priority claims, and allowed second lien claims (if
any), proceeds of all assets will be distributed to the holders of
the allowed third lien claims either by the Plan Administrator or
by HSBC Bank USA, National Association as trustee and collateral
agent on behalf of holders of Third Lien Note Claims.
Harbinger Capital Partners Master Fund I, Ltd. and Harbinger
Capital Partners Special Situations Fund, L.P., as a significant
holder of Third Lien Note Claims, have agreed to allocate and
contribute the first $7 million they would otherwise be entitled
to receive in their capacity as holders of Third Lien Note Claims
for the benefit of general unsecured creditors, in exchange for a
full release of all claims against them including claims that the
official committee of unsecured creditors articulated against
Harbinger, Wilmington Trust FSB, and HSBC.
About Finlay Enterprises
Finlay Enterprises, Inc. (OTC Bulletin Board: FNLY) through its
wholly owned subsidiary, Finlay Fine Jewelry Corporation, is a
retailer of fine jewelry operating luxury stand-alone specialty
jewelry stores and licensed fine jewelry departments in department
stores throughout the United States and achieved sales of
$754.3 million in fiscal 2008. The number of locations at the end
of the second quarter ended August 1, 2009, totaled 182, including
67 Bailey Banks & Biddle, 34 Carlyle and four Congress specialty
jewelry stores and 77 licensed departments with The Bon Ton.
The Company and seven affiliates filed for Chapter 11 on August 5,
2009 (Bankr. S. D. N.Y. Case No. 09-14873). Weil, Gotshal &
Manges LLP, serves as bankruptcy counsel. Alvarez & Marsal North
America, LLC, is engaged as restructuring advisor in the Chapter
11 case, and the firm's David Coles is appointed as chief
restructuring officer. Epiq Bankruptcy Solutions, LLC, serves as
claims and notice agent. Judge James Peck presides over the case.
In its bankruptcy petition, Finlay Enterprises disclosed assets of
$331,824,000 against debts of $385,476,000 as of July 4, 2009. As
of the petition date, Finlay owes $38 million outstanding under a
first lien credit agreement, $24.7 million under second lien
notes, $176.6 million outstanding under third lien notes (in
addition to $17.5 million to secured vendors), and $40.6 million
under remaining unsecured obligations under the senior notes.
FORD MOTOR: Sales Rise 3.3% in July
-----------------------------------
The Wall Street Journal's Mike Ramsey and Sharon Terlep report
that General Motors Co., Ford Motor Co. and Chrysler Group LLC
reported slightly higher U.S. sales in July compared to the prior
month and a year ago, helped by both an uptick in consumer buying
and purchases by commercial fleets, such as car-rental companies:
-- GM's sales rose 6.4% to 199,602 cars and light trucks.
GM's sales to individual customers declined 3% in July,
reflecting in part the company's jettisoning of four
brands.
-- Ford's rose 3.3%, to 170,208 vehicles. Ford's retail
sales rose 5%; and
-- Chrysler's increased 5%, to 93,313. Chrysler is one of
the few manufacturers that declines to disclose its retail
sales.
The Journal also reports that Autodata Corp. said overall auto
sales rose 5.1% in July from a year ago to 1,049,101 cars and
light trucks. Autodata estimated the annualized selling pace in
the month was 11.98 million vehicles, compared with 11.24 million
in July 2009, although the research firm warned that figure may be
revised.
If confirmed, the Journal continues, the July sales pace would be
the second-highest rate since September 2008, surpassed only by
August 2009, when the federal government's "cash for clunkers"
incentive program caused auto sales to spike.
In June 2010, according to the Journal, the sales pace fell to
11.08 million -- leading some analysts to worry that the
industry's recovery had hit a speed bump. During the industry's
boom times earlier this decade annual sales topped 16 million.
The Journal also reports that Toyota Motor Corp. said its U.S.
sales fell 3.2% in July to 169,224, and Honda Motor Co. reported
its sales fell 2% to 112,437 vehicles. The Journal also says
Volkswagen AG, Nissan Motor Co. and Hyundai Motor Co., posted
double-digit gains in July.
According to Bloomberg, the comeback being staged by U.S.
automakers lost momentum in July as Asian rivals outsold
General Motors, Ford Motor and Chrysler for the first
time in three months. The three car companies' U.S. market
share in July slumped to 43.7%, the lowest since March,
according to Autodata. Asian carmakers bounced back, taking
48.1% of the sales last month, compared with 46.4% so far this
year. Korean affiliates Hyundai Motor Co. and Kia Motors Corp.
grabbed 8.5% of the market in July, which exceeded their
7.7% share for the year.
FORESIGHT ENERGY: Moody's Assigns 'Caa1' Rating on $400 Mil. Notes
------------------------------------------------------------------
Moody's Investors Service assigned a Caa1 rating to Foresight
Energy, LLC's proposed $400 million senior unsecured notes.
Moody's also assigned a B3 Corporate Family Rating, a B3
Probability of Default rating, and an SGL-3 Speculative Grade
Liquidity rating, reflecting adequate liquidity. The rating
outlook is stable. The company intends to use the proceeds from
this offering, together with available cash on hand and borrowings
under its new secured revolving credit facility to repay
indebtedness outstanding, pay fees and expenses, and fund capital
expenditures. This is the first time that Moody's has rated the
debt of Foresight.
Moody's ratings for Foresight are constrained by the risks
associated with the start-up nature of the company. At this time,
Foresight is largely reliant on a single underground operation,
the Williamson mine, and few customers. The company is in the
process of expanding production at its Macoupin and Sugar Camp
mines and constructing its fourth mine, Hillsboro. These plans
will triple Foresight's coal production by 2012, but the risks and
costs associated with the expansion, as well as Foresight's high
debt level, are key drivers for Moody's B3 corporate family
rating. Some of these risks include completion and cost overrun
risks associated with the development and expansion of its three
new mines; market risk in finding an outlet for the approximately
14 million additional tons of high-sulfur Illinois Basin coal in
an environment of low natural gas prices and uncertainty regarding
"cap and trade" and greenhouse gas legislation; and permitting and
regulatory risk.
Foresight's debt is relatively high compared to its earnings and
cash flow generated principally by the Williamson mine. As it
continues to invest in its mines, its debt very likely will
increase (and/or its cash decrease) over the near term. Any
adverse impact at this time in Foresight's development will
magnify the risk posed by its leverage and narrow operating base.
The ratings also assume that a $100 million equity contribution
will be made from Foresight Reserves, LP under Foresight's
Contribution Agreement. Specifically, Moody's assumes that
$50 million will be invested by December 31, 2010 and another
$50 million will be invested by March 31, 2011. Foresight will
use the contribution amount to invest in its coal mining
development projects within its reasonable discretion.
Foresight's strengths include its 3 billion of coal reserves, the
anticipated low cost of its existing and planned mines,
insignificant legacy liabilities, and adequate liquidity over the
near term. The SGL-3 speculative grade liquidity rating reflects
Moody's belief that Foresight will maintain an adequate liquidity
profile over the next 12 months. The company plans to arrange a
four-year $300 million senior secured revolving credit facility.
Availability will be at least $200 million in 2010 after
utilization for capital expenditures and letters of credit. Cash
on hand, the $100 million equity contribution, and revolver
availability should be sufficient to cover all cash requirements
and negative free cash during the next 12 months. The credit
facility contains financial covenants (maximum leverage and
minimum interest coverage). Moody's believes Foresight will be in
compliance with the covenants over the rating horizon.
The stable outlook is supported by the company's sales strategy,
which includes long-term contracts. The ratings could be revised
upward if Foresight successfully completes its expansion plans and
demonstrates that it can consistently generate positive free cash
flow to service its debt. The ratings could come under pressure
if the company experiences a significant production shortfall from
targeted levels. The ratings also could be lowered from higher
than expected capital expenditures, aggressive debt-financed
acquisitions, impairment of liquidity arrangements, or
unanticipated shareholder-friendly activities.
Assignments:
Issuer: Foresight Energy, LLC
-- Corporate Family Rating, Assigned B3
-- Probability of Default Rating, Assigned B3
-- Speculative Grade Liquidity Rating, Assigned SGL-3
-- Senior Unsecured Regular Bond/Debenture, Assigned Caa1 (LGD5,
77%)
Based in Palm Beach Gardens, Florida 33410, Foresight Energy, LLC,
is a thermal coal producer in the Illinois Basin region of the
United States. For the twelve months ended March 31, 2010,
Foresight produced 6.2 million tons of coal and generated revenues
of $277.6 million
FORUM HEALTH: Community Health Bids $100 Million
------------------------------------------------
April Wortham at Business Journal of Nashville, reports that
Community Health Systems Inc. topped the offer of Ardent Health
Services with a $100 million bid for Forum Health's assets. A
spokeswoman said Community Health will invest about $80 million
over the next five years.
Under the Court-approved rules, Ardent Health Services Inc., as
stalking horse bidder, was to start the auction for the assets.
Ardent would be entitled to a break-up fee if its outbid.
Ardent Health is under contract to buy the assets for $69.8
million, absent higher and better offers. In addition to the
purchase offer, Ardent, based in Nashville, Tennessee, pledged to
hire Forum's employees, keep its three major hospitals open, and
invest $50 million to $70 million over five years on renovations,
new equipment and other upgrades.
About Forum Health
Forum Health and its affiliates filed for Chapter 11 protection on
March 16, 2009 (Bankr. N.D. Ohio Lead Case No. 09-40795). Paul W.
Linehan, Esq., and Shawn M Riley, Esq., at McDonald Hopkins LLC,
serve as lead counsel to the Debtors. The Debtors have also
tapped Michael A. Gallo, Esq. at Nadler Nadler & Burdman Co., LPA
as co- counsel; Kurtzman Carson Consultants LLC as claims,
noticing and balloting agent; and Huron Consulting Services LLC as
financial advisors. Alston & Bird LLP represents the official
committee of unsecured creditors formed in the Chapter 11 cases.
At the time of its filing, Forum Health estimated that it had
assets and debts both ranging from $100 million to $500 million.
GEMCRAFT HOMES: Amends Plan Outline, Hearing Set for Tomorrow
-------------------------------------------------------------
Gemcraft Homes, Inc., and its debtor-affiliates submitted to the
U.S. Bankruptcy Court for the District of Maryland a proposed Plan
of Reorganization and an explanatory Disclosure Statement, amended
as of July 15, 2010.
The Debtors scheduled an August 5 hearing for approval of the
disclosure statement.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the Plan constitutes a
separate Plan for each of the Debtors, and does not seek
substantive consolidation of the Debtors' estates unless (i) there
is no objection to substantive consolidation of the Debtors'
estates; (ii) the official committee of unsecured creditors
requests the substantive consolidation in the interest of reducing
the burdens and expenses of implementing the Plan; and (iii) the
Debtors consent to substantive consolidation.
The Reorganized Debtors will continue their respective legal
existence and will be re-vested with title to all property and
property rights of their respective estates (including Causes of
Action).
The Liquidation Trust will be established by the Debtors'
execution of the Liquidation Trust Agreement.
Treatment of Claims
Class 1. Claims of postpetition date secured lenders will be
paid in full.
Class 2. Agreements with prepetition secured bank lenders The
Columbia Bank and Fifth Third Bank, First Horizon Bank,
Integrity Bank, M&T Bank, Orrstown Bank, Patapsco Bank,
PeoplesBank, PNC Bank, Regions Bank, Stonebridge Bank,
Wachovia Bank, N.A., will be incorporated into the Plan.
Class 4. Holders of secured claims other than lenders and secured
mechanics' will receive one of the following treatments,
as the Debtors may determine in their sole and absolute
discretion: (a) the Debtors' payment of cash in an
amount equal to the allowed other secured claim,
including any interest on the allowed other secured
claim; or (b) the Debtors' surrender of the collateral
securing Class 4 Secured Claim, in full and complete
satisfaction of allowed Class 4 secured claim.
Class 5. Unless the Debtors agree in writing otherwise, all
mechanic's lien claims will be treated as Class 8
general unsecured claims under the Plan unless and until
the time that the Bankruptcy Court enters a final order
determining any mechanic's lien claim to qualify as a
secured claim.
Class 6. Holders of priority claims will receive cash equal to
the amount of the allowed claim without postpetition
date interest.
Class 7. Holders of convenience Claims -- will receive, in full
satisfaction of the claim, cash in an amount equal to
10% of the amount of its allowed class 7 claim.
Class 8. Holders of general unsecured claims will receive
their pro rata share of the beneficial interests in the
Liquidation Trust.
Class 9. Holders of intercompany claims will be discharged and
released as of the effective date, and will receive no
distributions under the Plan, from the Liquidation Trust
or otherwise.
Class 10. Holders of old equity interests in one or more of the
Debtors will receive no distributions under the Plan,
and the old equity interests will be deemed canceled and
extinguished as of the effective date.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/GEMCRAFTHOMES_amendedDS.pdf
The Debtors are represented by:
Irving E. Walker, Esq.
Gary H. Leibowitz, Esq.
G. David Dean, Esq.
COLE, SCHOTZ, MEISEL, FORMAN & LEONARD, P.A.
300 East Lombard Street, Suite 2000
Baltimore, MD 21202
Tel: 410-230-0660
Fax: 410-230-0667
E-mail: iwalker@coleschotz.com
gleibowitz@coleschotz.com
gdean@coleschotz.com
About Gemcraft Homes
Gemcraft Homes, Inc., is a corporation formed under the laws of
the State of Maryland with its principal place of business located
in Harford County, Maryland. Gemcraft was founded in 1993 with a
single sales trailer in Abingdon, Maryland, from which six
residential homes were sold. Since that time, Gemcraft has grown
to become one of the largest independent homebuilders in the Mid-
Atlantic region, and one of the fastest growing builders in the
entire country. Gemcraft is a production builder which targets
first-time homebuyers and first-time "move up" buyers. It also
targets retired, and soon to retire, buyers for its retirement
communities.
The Company filed for Chapter 11 bankruptcy protection on
November 9, 2009 (Bankr. D. Md. Case No. 09-31696.) The Company's
affiliates -- DLM, LLC, et al. -- filed separate Chapter 11
bankruptcy petitions. In its schedules, Gemcraft Homes' listed
total assets of $40,668,980, and total liabilities of $73,468,237.
GEMS TV: Asks For Extension on Bankruptcy Exit Plan
---------------------------------------------------
Carla Main at Bloomberg News reports that Gems TV (USA) Ltd. is
asking the bankruptcy court for permission to extend until Nov. 1,
2010, the period during which it would be the only party allowed
to file a plan for exiting from its Chapter 11 bankruptcy and
until Jan. 3, 2011, the period to solicit acceptances for the
plan. This is the Debtor's first request for an extension.
According to the report, the Debtor said that an extension would
give it more time to file and gain approval of a disclosure
statement, which is currently due Aug. 31. Gems TV has expended
"substantial time and effort" to liquidating remaining inventory,
selling "certain non-inventory assets," and negotiating the terms
of a Chapter 11 exit plan "with several key parties," and handling
administrative matters, and therefore should be given the
additional time it requests.
A hearing on the proposed extension is scheduled for Aug. 31.
About Gems TV
Reno, Nevada-based Gems TV (USA) Limited, aka Gems TV, is a
television retailer of gemstone jewelry products. Its parent is
Gems TV Holdings Ltd., which owns and operates jewelry home
shopping TV channels in the U.S., U.K. and Japan.
The Company filed for Chapter 11 bankruptcy protection on April 5,
2010 (Bankr. D. Del. Case No. 10-11158). Gems TV shut down its
the business before the bankruptcy filing. Robert S. Brady, Esq.,
and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt &
Taylor, assist the Company in its restructuring effort. Focus
Management Group is the Company's financial advisor. Epiq
Bankruptcy Solutions serves as claims and notice agent. The
Company estimated assets of $10 million to $50 million and debts
of $100 million to $500 million in its Chapter 11 petition.
GENERAL GROWTH: $7.9 Million in Claims Change Hands for July
------------------------------------------------------------
The Clerk of Court recorded these entities' transfers of claims
against General Growth Properties Inc. totaling $7,908,974 for the
month of July 2010:
Transferor Transferee Claim No. Claim Amt.
---------- ---------- -------- ---------
CMC Alamo Steel Company Vratsinas Const. 4566 $5,412,089
Company
Clark Pacific Vratsinas Const. 878 2,427,698
Company
Western Window Cleaning Liquidity Solutions, 258 18,098
Inc. Inc.
Holland & Hart LLP Liquidity Solutions, 9427 8,750
Inc.
Holland & Hart LLP Liquidity Solutions, 1379 6,857
Inc.
Emerald Software Group, Sierra Liquidity Fund, - 6,725
LLC LLC
The Gallup Organization Fair Harbor Capital, - 4,700
LLC
Energy Management Fair Harbor Capital, 1132 4,170
Systems LLC
Carter & Burgess, Inc. Fair Harbor Capital, - 3,475
LLC
Bartlett Leader Pimcone Liquidity Solutions 2155 3,429
& Young LLP Inc.
Knott Mechanical, Inc. Fair Harbor Capital, 2,741
LLC
Energy Management Fair Harbor Capital, 733 2,663
Systems LLC
Robinsons Brothers Liquidity Solutions, 1499 2,200
Environmental Inc. Inc.
Ainsworth Thelin Fair Harbor Capital, 9288 1,168
Chamberlain & Raftice LLC
Equivalent Data Sierra Liquidity - 1,325
Fund, LLC
Ufollowup LLC Fair Harbor Capital, - 1,050
LLC
Malco Nevada Inc. Fair Harbor Capital, 9206 909
LLC
Stanford Sign & Awning, Sierra Liquidity Fund, - 710
Inc. LLc.
Setting The Space Sierra Liquidity Fund, 495
LLC
The total amount of claims transferred for the month of July 2010
is higher compared to the total amount of claims transferred in
June 2010.
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)
GENERAL GROWTH: Court OKs Reissuance Services by Deloitte
---------------------------------------------------------
General Growth Properties Inc. and its units received the
permission of the U.S. Bankruptcy Court for the Southern District
of New York to expand Deloitte & Touche LLP's scope of services to
include audit and report reissuance services.
As the Debtors' independent auditor, Deloitte & Touche will
perform these additional services:
(A) Financial Statement Auditing Services:
Deloitte & Touche will perform financial statement audits for
certain of the Debtors' subsidiaries in accordance with the
standards of the Public Company Accounting Oversight Board,
and will express opinions on the fairness of the presentation
of combined financial statements as of December 31, 2009 and
2008 and for the years ended December 31, 2009, 2008, and
2007, in conformity with generally accepted accounting
principles in all material respects.
B. Reissuance Services:
(a) Deloitte & Touche will perform procedures to enable the
firm to reissue its previous reports regarding the
Debtors' consolidated financial statements and financial
statement schedules, for incorporation by reference in
certain registration statements the Debtors anticipate
filing with the U.S. Securities and Exchange Commission.
-- These procedures will provide Deloitte & Touche with a
basis for reissuing its reports of independent
registered public accounting firm on the Debtors'
consolidated financial statements and financial
statement schedule as of December 31, 2009 and 2008,
and for each of the three years in the period ended
December 31, 2009; and
-- Deloitte & Touche will make inquiries of officers and
other executives responsible for financial and
accounting matters about whether any events have
occurred that, in the officers' or other executives'
opinion, have a material effect on the audited
consolidated financial statements and financial
statement schedule included or that should be disclosed
to keep those consolidated financial statements and
financial statement schedule from being misleading.
(b) Deloitte & Touche will also perform reviews of the
Debtors' interim consolidated financial information in
accordance with PCAOB Standards for the three-month
periods ended March 31, 2010 and 2009 and the three-month
and six-month periods ended June 30, 2010 and 2009,
prepared for submission to the SEC.
The Debtors also seek that Deloitte & Touche's retention be made
effective, nunc pro tunc to March 1, 2010, to allow the firm to
be compensated for work performed on or after March 1, 2010, but
prior to June 29, 2010.
General Growth Properties, Inc. vice president and deputy general
Linda J. Wight relates that since March 1, 2010, Deloitte & Touche
has been actively involved in assisting the Debtors by continuing
ongoing projects and providing the services set forth in the
Engagement Letters. The value of those time-sensitive services
that have been rendered by Deloitte & Touche is $720,000, she
discloses.
The Debtors will pay Deloitte & Touche's professionals according
to their customary hourly rates for the Additional Services with
a 35% discount rate applied for all levels:
Standard Discounted
Title Rate per Hour Rate per Hour
----- ------------- -------------
Partner/Director $730 to $875 $478 to $569
Senior Manager $540 to $760 $351 to $494
Manager $540 to $655 $351 to $426
Senior $400 to $530 $260 to $345
Staff $300 to $400 $195 to $260
The Debtors will reimburse Deloitte & Touche for expenses
incurred.
Robert T. O'Brien, a partner at Deloitte & Touche, maintains that
his firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
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)
GENERAL GROWTH: Howard Hughes Wins Nod to Assume Pulte Homes Pact
-----------------------------------------------------------------
The U.S. Bankruptcy Court has permitted The Howard Hughes Company,
f/k/a The Howard Hughes Corporation, to:
(i) enter into a sixth amendment to a purchase and sale of real
property with PN II, Inc., d/b/a Pulte Homes of Nevada;
(ii) assume the PSA, as amended; and
At the Debtor's behest, the Court also expunged Claim Nos. 4816
and 4814 filed by Pulte pursuant to the Sixth Amendment and the
PSA.
Hughes and certain of its debtor and non-debtor affiliates and
subsidiaries have been developing a master planned community
comprised of separate villages in Clark County, Nevada. The
Summerlin Area is home to about 100,000 people living in about
40,000 residences. Hughes plans to develop the remaining about
7,000 net acres in the Summerlin Area over the next 30 years.
Hughes first entered into the PSA with Pulte in March 2006 for
the sale and development of Village 26, a Village known as
Reverence. The PSA provides for the transfer of the property to
Pulte for development of homes and community facilities. The PSA
divides the sale of Village 26 into two transfers of property of
equal acreage, Parcels 1 and 2. Even though Pulte is responsible
for the development of the property into a functional community,
Hughes is obligated to construct certain improvements and to
fulfill other enumerated obligations of a contingent nature under
the PSA.
As of the Petition Date, material obligations of Hughes and Pulte
remained incomplete under the PSA. Specifically, Pulte has
failed to complete the development of Parcel 1 or to close on
Parcel 2 of Village 26, and Hughes has not constructed all of the
Improvements as required by the PSA. On November 10, 2009, Pulte
filed the Pulte Claims against Hughes and its affiliate Howard
Hughes Properties, Inc., based upon certain alleged outstanding or
future obligations under the PSA. Nevertheless, Hughes stands
ready to complete the Improvements on a schedule consistent with
the needs of the Village 26 development and in accordance with
the PSA, as amended.
To address the Pulte Claims and to facilitate progress on the
development of Village 26, Hughes and Pulte entered into the
Sixth Amendment.
The material terms of the Sixth Amendment are:
(1) Pulte will pursue regulatory requirements needed to
complete development of homes on Parcel 1.
(2) Hughes and Pulte will design and construct, and in lock-
step fashion, the on-site and off-site portions of the
water main needed to service Village 26. Construction
will begin within one year of completing designs for the
on-site portion of the water main. Hughes will
substantially complete construction within one year of the
commencement of construction, but Hughes may stop
construction if Pulte stops construction.
(3) Hughes and Pulte will design and construct, and in lock-
step fashion, the entry road to Village 26 and Lake Mead
Boulevard connecting Village 26 to Interstate 215. Hughes
will substantially complete construction within one year
of the commencement of construction, but Hughes may stop
construction if Pulte stops construction.
(4) The water main and Lake Mead Boulevard design and
construction phases are contingent upon Pulte's
development of Parcel 1, and under no circumstances does
the Sixth Amendment require Hughes to complete
construction of the water main or Lake Mead Boulevard
before Pulte has completed construction of 30 single-
family residences on Parcel 1.
(5) Pulte will vacate, abandon, and terminate an easement
related to the development of Parcel 1.
Absent the negotiated solution, Pulte's unliquidated claims
against the Debtor's estate likely will require contested claims
resolution proceedings and potentially leave Village 26
undeveloped, James H.M. Sprayregen, Esq., at Weil, Gotshal &
Manges LLP, in New York, stresses. Pulte represents a long-term
partner to Hughes in the development of certain villages, he
says. Consequently, Hughes seeks to maintain a mutually
beneficial business relationship with Pulte by avoiding
adversarial proceedings when economically equivalent or superior
alternatives exist, he maintains.
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)
GENERAL MOTORS: Sales Rise 6.4% in July
---------------------------------------
The Wall Street Journal's Mike Ramsey and Sharon Terlep report
that General Motors Co., Ford Motor Co. and Chrysler Group LLC
reported slightly higher U.S. sales in July compared to the prior
month and a year ago, helped by both an uptick in consumer buying
and purchases by commercial fleets, such as car-rental companies:
-- GM's sales rose 6.4% to 199,602 cars and light trucks.
GM's sales to individual customers declined 3% in July,
reflecting in part the company's jettisoning of four
brands.
-- Ford's rose 3.3%, to 170,208 vehicles. Ford's retail
sales rose 5%; and
-- Chrysler's increased 5%, to 93,313. Chrysler is one of
the few manufacturers that declines to disclose its retail
sales.
The Journal also reports that Autodata Corp. said overall auto
sales rose 5.1% in July from a year ago to 1,049,101 cars and
light trucks. Autodata estimated the annualized selling pace in
the month was 11.98 million vehicles, compared with 11.24 million
in July 2009, although the research firm warned that figure may be
revised.
If confirmed, the Journal continues, the July sales pace would be
the second-highest rate since September 2008, surpassed only by
August 2009, when the federal government's "cash for clunkers"
incentive program caused auto sales to spike.
In June 2010, according to the Journal, the sales pace fell to
11.08 million -- leading some analysts to worry that the
industry's recovery had hit a speed bump. During the industry's
boom times earlier this decade annual sales topped 16 million.
The Journal also reports that Toyota Motor Corp. said its U.S.
sales fell 3.2% in July to 169,224, and Honda Motor Co. reported
its sales fell 2% to 112,437 vehicles. The Journal also says
Volkswagen AG, Nissan Motor Co. and Hyundai Motor Co., posted
double-digit gains in July.
According to Bloomberg, the comeback being staged by U.S.
automakers lost momentum in July as Asian rivals outsold
General Motors, Ford Motor and Chrysler for the first
time in three months. The three car companies' U.S. market
share in July slumped to 43.7%, the lowest since March,
according to Autodata. Asian carmakers bounced back, taking
48.1% of the sales last month, compared with 46.4% so far this
year. Korean affiliates Hyundai Motor Co. and Kia Motors Corp.
grabbed 8.5% of the market in July, which exceeded their
7.7% share for the year.
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 205,000 people in every major region of
the world and does business in some 157 countries. GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling. GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy. GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services. General Motors acquired operations from General Motors
Corporation on July 10, 2009, and references to prior periods in
this and other press materials refer to operations of the old
General Motors Corporation.
General Motors Ventures, LLC, was funded with an initial
investment of $100 million, and is currently exploring equity
investments in a number of auto-related technologies and business
models.
GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code. Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.
At March 31, 2010, GM had US$136.021 billion in total assets,
total liabilities of US$105.970 billion and preferred stock of
US$6.998 billion, and non-controlling interests of US$814 million,
resulting in total equity of US$23.053 billion.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
GENERAL MOTORS: To Invest $5 Million in Bright Automotive
---------------------------------------------------------
Bright Automotive and General Motors Co. have agreed to pursue a
strategic relationship and that GM has provided funding to the
Indiana automaker, the first funding action by the newly formed
General Motors Ventures LLC.
Dow Jones Daily Bankruptcy Review reports that GM said it will
invest $5 million.
The Companies said in a press statement the funding will help
accelerate Bright's production of the IDEA, a revolutionary plug-
in hybrid commercial vehicle.
The Companies signed a memorandum of understanding in July. GM
Ventures provided funding to Bright this week, and the two
Companies intend to complete the formal agreements later this
year. Upon completion of the agreements and other terms, General
Motors Ventures would have a minority stake in Bright Automotive
and Bright would have access to GM technologies, and advanced
engine and transmission systems, for its vehicle.
"This relationship is an important step forward for Bright, and a
strong endorsement of our highly experienced automotive team and
our incredible vehicle," said Reuben Munger, Bright Automotive
Chairman and CEO. "With this deal, Bright gets financial support
that puts us on the fast track toward mass production of the IDEA.
And perhaps just as importantly, we gain a strategic partner that
is a world leader in electrification."
"Funding early-stage start-up companies is a new way of doing
business at GM to accelerate the introduction of innovative
technology to support our core automotive business and give us a
competitive advantage," said Jon Lauckner, president of GM
Ventures. "In this case, our funding of Bright Automotive will
accelerate the introduction of advanced propulsion and light-
weight technologies in the commercial vehicle market."
"We talked with several leading automakers, but GM clearly had the
right vision, the most capable technology, and the closest
alignment with our business approach," said Michael Brylawski,
Bright Automotive executive vice president. "We are thrilled to
work with GM to create American jobs, stimulate technology
development, and build an innovative American vehicle that will
help reduce oil dependence and cut costs for businesses."
In developing the IDEA, Bright started with a clean sheet of
paper, listened to customers, and took a novel approach to product
development that focused on light-weighting, aerodynamics and a
highly efficient drivetrain. The result is a multipurpose vehicle
for business fleets -- the first designed to be highly efficient
and provide a clear economic benefit.
The IDEA delivers a positive total cost of ownership to fleet
customers by providing significantly greater fuel efficiency than
current fleet vehicles in its class. The IDEA operates in
electric mode for 40 miles before switching to an estimated 36-mpg
hybrid mode for 100+ mpg potential based on daily driving
behavior.
Funding through GM Ventures will allow Bright to begin ramping up
the development of the production program for the IDEA in the
third quarter of 2010. Bright continues to seek a low-interest
loan through the Department of Energy's ATVM program. Financial
terms were not disclosed.
About Bright Automotive
Bright Automotive -- http://www.brightautomotive.com/-- launched
from Colorado-based Rocky Mountain Institute in January 2008 with
the world's most experienced EV/PHEV team and the goal of building
on the work of a consortium of organizations, including Alcoa,
Google.org, Johnson Controls and the Turner Foundation. Since
then, Bright Automotive has developed the IDEA, the world's first
multi-purpose, plug-in hybrid electric vehicle aimed at commercial
and government fleets. It has also launched Bright eSolutions,
which delivers expertise to automotive customers worldwide to
accelerate vehicle electrification, lightweighting, and overall
platform efficiency.
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 205,000 people in every major region of
the world and does business in some 157 countries. GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling. GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy. GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services. General Motors acquired operations from General Motors
Corporation on July 10, 2009, and references to prior periods in
this and other press materials refer to operations of the old
General Motors Corporation.
General Motors Ventures, LLC, was funded with an initial
investment of $100 million, and is currently exploring equity
investments in a number of auto-related technologies and business
models.
GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code. Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.
At March 31, 2010, GM had US$136.021 billion in total assets,
total liabilities of US$105.970 billion and preferred stock of
US$6.998 billion, and non-controlling interests of US$814 million,
resulting in total equity of US$23.053 billion.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
GUMBEL BUILDING: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Gumbel Building Partners, L.L.C.
524 Walnut Street, Suite 310
Kansas City, MO 64106
Bankruptcy Case No.: 10-44043
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Western District of Missouri (Kansas City)
Judge: Jerry W. Venters
Debtor's Counsel: Ronald S. Weiss, Esq.
Berman DeLeve Kuchan & Chapman
911 Main Street, Suite 2230
Kansas City, MO 64105
Tel: (816) 471-5900
Fax: (816) 842-9955
E-mail: rweiss@bdkc.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The list of unsecured creditors filed together with its petition
does not contain any entry.
The petition was signed by Mark Latshaw, member.
HERTZ CORP: Dollar Thrifty Investors Should Expect Bidding War
--------------------------------------------------------------
Rolfe Winkler, writing for The Wall Street Journal, says investors
of Dollar Thrifty Automotive Group should expect a bidding war.
Avis Budget Group is offering to acquire Dollar Thrifty in a cash-
and-stock bid valued at $46.50 a share, 17% more than Hertz's
$39.80 bid.
The Journal says Avis is the No. 3 car-rental company by market
share in the U.S., trailing No. 2 Hertz Global Holdings. Dollar
Thrifty is fourth.
According to Mr. Winkler, even at the higher price by Avis, Dollar
Thrifty's shareholders should feel shortchanged. With the shares
still trading at $48, above both offers, they seem to.
Mr. Winkler also relates that at the bid prices proposed,
acquirers would enjoy most of the gains. Mr. Winkler notes
Hertz CEO Mark Frissora has all but guaranteed he would find
$180 million of cost savings over 18 months. "Taxed and
capitalized, those are valued at roughly $1.2 billion, comfortably
higher than the $900 million enterprise value of Hertz's offer,
and even above the $1.1 billion Avis is bidding," Mr. Winkler
says.
"Avis didn't include a synergies estimate in its offer, but
because its Budget brand overlaps with Dollar Thrifty it probably
can find as much to cut," Mr. Winkler says.
He relates Dollar Thrifty's board will find it hard to dismiss
Avis's better bid without inviting lawsuits. Financing seems
doable, and antitrust concerns look no more of a roadblock.
"Hertz could walk away, pocketing a $50 million breakup fee for
its trouble, but the cost savings are worth so much that seems
unlikely. Also, letting Avis do the deal, and close the gap with
market leader Enterprise Rent-A-Car, would leave Hertz in third
place," he says.
About Avis Budget Group
Avis Budget Group -- http://www.avisbudgetgroup.com/-- provides
vehicle rental services, with operations in more than 70
countries. Through its Avis and Budget brands, the Company is a
leading vehicle rental company in each of North America,
Australia, New Zealand and certain other regions based on
published airport statistics. Avis Budget Group is headquartered
in Parsippany, N.J. and has more than 22,000 employees.
At March 31, 2010, the Company had total assets of $10.257 billion
against total current liabilities of $1.328 billion, total
liabilities exclusive of liabilities under vehicle programs of
$4.044 billion and liabilities under vehicle programs of
$5.987 billion, resulting in stockholders' equity of $226 million.
* * *
Avis Budget Car Rental LLC continues to carry Moody's Investors
Service's B2 corporate family rating. Avis Budget Group Inc.
carries Standard & Poor's Ratings Services' B+ corporate credit
rating.
About Hertz Corp.
Hertz Corporation, headquartered in Park Ridge, New Jersey, is an
automobile and equipment rental company.
Hertz carries Moody's B1 Corporate Family Rating and Probability
of Default Rating.
About Dollar Thrifty
Dollar Thrifty Automotive Group, Inc., is headquartered in Tulsa,
Oklahoma. Driven by the mission "Value Every Time," the Company's
brands, Dollar Rent A Car and Thrifty Car Rental, serve value-
conscious travelers in over 70 countries. Dollar and Thrifty have
over 600 corporate and franchised locations in the United States
and Canada, operating in virtually all of the top U.S. and
Canadian airport markets. The Company's approximately 6,400
employees are located mainly in North America, but global service
capabilities exist through an expanding international franchise
network.
At March 31, 2010, the Company had total assets of $2,470,879,000
against total liabilities of $2,047,769,000, resulting in
stockholders' equity of $423,110,000.
* * *
As reported by the Troubled Company Reporter on May 5, 2010,
Dominion Bond Rating Service placed the ratings of Dollar Thrifty
Automotive Group, Inc., including its Issuer Rating of B (high),
Under Review with Positive Implications. This ratings action
follows the announcement that the Company has reached a definitive
agreement to be acquired by the higher-rated Hertz Corporation.
DBRS rates Hertz BB, at the issuer level.
In November 2009, Standard & Poor's Ratings Services raised its
corporate credit rating of Dollar Thrifty to 'B-' from 'CCC', in
light of the Company's improved operating and financial
performance that began in mid-2009. Moody's Investors Service
also upgraded Dollar Thrifty's Probability of Default Rating to
'B3' from 'Caa2' and Corporate Family Rating to 'B3' from 'Caa3'.
INTERACTIVE DATA: S&P Assigns Corporate Credit Rating at 'B'
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Bedford, Mass.-based Interactive Data Corp. The
rating outlook is stable.
At the same time, S&P assigned IDCO's $1.46 billion first-lien
credit facilities (consisting of a $160 million revolving credit
facility due 2015 and a $1.3 billion term loan B due 2017) S&P's
issue-level rating of 'B+' (one notch higher than the 'B'
corporate credit rating). S&P also assigned this debt a recovery
rating of '2', indicating S&P's expectation of substantial (70% to
90%) recovery for lenders in the event of a payment default.
In addition, S&P assigned IDCO's $700 million senior unsecured
notes due 2018 an issue-level rating of 'B-' (one notch lower than
the 'B' corporate credit rating) with a recovery rating of '5',
indicating S&P's expectation of modest (10% to 30%) recovery for
debtholders in the event of a payment default.
These rating assignments follow S&P's review of the final
documentation for these debt issues.
Private equity investors Silver Lake Technology Management LLC and
Warburg Pincus LLC have purchased IDCO in a leveraged buyout for
about $3.7 billion.
"The 'B' corporate credit rating reflects S&P's view that despite
a meaningful interest burden after the LBO, the company should be
able to generate positive discretionary cash flow so that it can
gradually de-lever," said Standard & Poor's credit analyst Deborah
Kinzer.
IDCO is a provider of financial market data, analytics, and
related solutions to financial institutions and active traders.
The Pricing and Reference Data segment (66% of revenue) provides
evaluated pricing for 2.8 million fixed-income instruments and
reference data, including listed market pricing and corporate
actions. The Real-Time Solutions segment (30% of revenue)
provides real-time market data and analytical tools. The Fixed-
Income Analytics segment (4% of revenue) provides risk analytics
tools for fixed-income investors.
Pro forma for the LBO, lease-adjusted total debt to EBITDA was
high, at 7.5x, and lease-adjusted EBITDA coverage was 2x for the
12 months ended June 30, 2010. In the absence of further
significant consolidation of the financial sector, S&P expects
that credit metrics could improve modestly over the next two
years. This expectation depends on the company's appetite for
acquisitions.
Over the past three years, the company made four tuck-in
acquisitions to enhance its product offering and geographic market
presence. While S&P currently don't anticipate a major
transformative acquisition, small tuck-in acquisitions in
quantities can still consume significant discretionary cash flow
and limit the company's ability to decrease debt leverage. IDCO
has a history of generating discretionary cash flow. S&P expects
that the company will continue to generate positive discretionary
cash flow despite the significant interest burden. Capital
expenditures typically consume about 5% to 6% of revenue and
should not inhibit cash flow generation.
INTERNATIONAL STONE: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: International Stone & Tile Co., LLC
44-36 21st Street
Long Island City, NY 11101
Bankruptcy Case No.: 10-47278
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Joel B. Rosenthal
Debtor's Counsel: Robert L. Pryor, Esq.
Pryor & Mandelup, LLP
675 Old Country Road
Westbury, NY 11590
Tel: (516) 997-0999
Fax: (516) 333 7333
E-mail: rlp@pryormandelup.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/nyeb10-47278.pdf
The petition was signed by Michael Kondos, president.
JERRY BARNETT: Section 341(a) Meeting Scheduled for September 1
---------------------------------------------------------------
The U.S. Trustee for Region 18 will convene a meeting of Jerry
Barnett and Katherine Barnett's creditors on September 1, 2010, at
2:30 p.m. The meeting will be held at Courtroom J, Union Station,
1717 Pacific Avenue, Tacoma, WA 98402.
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.
Gig Harbor, Washington-based Jerry Barnett and Katherine Barnett
filed for Chapter 11 bankruptcy protection on July 26, 2010
(Bankr. W.D. Wash. Case No. 10-46062). Benjamin J. Riley, Esq.,
at Brian L. Budsberg PLLC, assists the Debtors in their
restructuring effort. The Barnetts estimated assets and debts at
$100 million to $500 million in their Chapter 11 petition.
JESUP & LAMONT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Jesup & Lamont, Inc.
623 Fifth Avenue, 17th Floor
New York, NY 10022
Bankruptcy Case No.: 10-14133
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Arthur J. Gonzalez
Debtor's Counsel: Ronald J. Friedman, Esq.
SilvermanAcampora LLP
100 Jericho Quadrangle, Suite 300
Jericho, NY 11753
Tel: (516) 479-6300
Fax: (516) 479-6301
E-mail: filings@spallp.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by William C. Holub, senior vice president
- finance.
JOAQUIN BALISTRERI: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Joint Debtors: Joaquin Charles Balistreri
aka Jack Balistreri,
dba Balistreri Family Vineyard
Kathryn Ann Balistreri
320 Bohemian HIghway
Sebastopol, CA 95472
Bankruptcy Case No.: 10-12897
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Northern District of California (Santa Rosa)
Judge: Alan Jaroslovsky
Debtor's Counsel: Steven M. Olson, Esq.
Law Offices of Steven M. Olson
100 E. Street, #214
Santa Rosa, CA 95404
Tel: (707) 575-1800
E-mail: smo@smolsonlaw
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Joint Debtors' list of 20 largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/canb10-12897.pdf
The petition was signed by the Joint Debtors.
KEITH WEBB: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Keith A. Webb
3 Wabon Street
Dorchester, MA 02121
Bankruptcy Case No.: 10-18374
Chapter 11 Petition Date: August 1, 2010
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: Henry J. Boroff
Debtor's Counsel: Michael Van Dam, Esq.
Van Dam & Traini, LLP
60 William Street, Suite 300
Wellesley, MA 02481
Tel: (617) 969-2900
Fax: (617) 964-4631
E-mail: mvandam@trainilaw.com
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 its largest unsecured creditors
together with its petition.
The petition was signed by Mr. Webb.
KYUNG KIM: Sanction Decision Interlocutory & Unappealable
---------------------------------------------------------
WestLaw reports that under the amended bankruptcy rules governing
the timing and triggering events for appeals, a bankruptcy court
memorandum denying special counsel's motion for sanctions against
the Chapter 7 trustee and granting the trustee's motion for
sanctions against special counsel, but not determining the amount
of such sanctions, was not a "final" order, for purposes of
appeal. The memorandum required supplemental briefing as to the
reasonable amount of the trustee's fees and costs, and so did not
fully end the sanctions dispute, much less indicate the bankruptcy
court's intention that the memorandum would be its final act on
the matter. Construing the memorandum as a final order would lead
to a ridiculous result of the bankruptcy court being divested of
jurisdiction to determine the amount of sanctions, the district
court noted. Finally, this was not a situation where a premature
appeal would nonetheless confer jurisdiction on the appellate
court. In re Kyung Sook Kim, --- B.R. ----, 2010 WL 2485938 (D.
Hawai'i) (Seabright, J.).
This sanction decision flows out of two adversary proceedings
(Bankr. D. Haw. Adv. Pro. Nos. 07-90062 and 08-90049) challenging
the non-judicial foreclosure sale of certain real property owned
by the Debtor and to require the turnover of allegedly undisclosed
assets.
Kyung Sook Kim sought Chapter 11 protection (Bankr. D. Haw. Case
No. 06-00157) on March 27, 2006, estimating her assets and debts
at $1 million to $10 million. On Aug. 10, 2006, the bankruptcy
court granted Ms. Kim leave to convert her bankruptcy case to
Chapter 7, and subsequently appointed Ronald K. Kotoshirodo as the
Trustee. On Nov. 14, 2006, the bankruptcy court granted Ms. Kim a
discharge.
LAKETOWN WHARF: No Extension of Time to File Notice of Appeal
-------------------------------------------------------------
WestLaw reports that a deliberate decision on the part of the
attorney [representing certain condominium purchasers] not to file
a notice of appeal or to seek an extension of the appeals deadline
prior to the expiration thereof, because the attorney had not yet
had an opportunity to consult with the [purchasers] and to explore
whether they wished to pursue an appeal, was not in the nature of
"neglect," and did not permit an out-of-time extension of the
appeals deadline on an "excusable neglect" theory. The attorney
knew that the time to appeal was about to expire and could have
timely requested an extension of the deadline to give her time to
confer with her clients. In re Laketown Wharf Marketing, Corp., -
-- B.R. ----, 2010 WL 2812630 (Bankr. N.D. Fla.) (Killian, J.).
Headquartered in Panama City, Fla., Laketown Wharf Marketing
Corporation aka LWMC, Inc. owns a condominium resort. The company
sought chapter 11 protection (Bankr. N.D. Fla. Case No. 08-40692)
on Sept. 29, 2008. Amy L. Denton, Esq., and Russell M. Blain,
Esq., at Stichter, Riedel, Blain & Prosser, P.A., represent the
Debtor. At the time of the filing, the Debtor estimated it assets
and debts at $100 million to $500 million.
LANDSOURCE COMMUNITIES: Creditors Trust Sue LNR, Others for Fraud
-----------------------------------------------------------------
Bloomberg News reports that the LandSource Creditor Litigation
Liquidating Trust, on behalf of creditors of the defunct
LandSource Communities Development LLC, commenced an adversary
proceeding against, among other parties, LNR Property Corp., the
real estate finance company co-owned by Cerberus Capital
Management LP.
According to the report, the Creditor Trust is accusing LNR, et
al., of defrauding creditors including retired California public
employees of $700 million. The lawsuit claims that LNR and
homebuilder Lennar Corp. drained $1.4 billion out of a joint
venture that left their partners with nothing. Those partners,
including the California Public Employees' Retirement System, lost
their $970 million investment, according to the suit.
Bloomberg continues that the lawsuit alleges that LNR and Lennar
knew that the company they controlled, LandSource Communities
Development LLC, was insolvent when the lenders represented by
Barclays Capital Plc loaned it as much as $1.55 billion in
February 2007. Instead of using the money to recapitalize
LandSource just as the real estate market began to collapse, the
company paid a special distribution of $1.4 billion to LNR and
Lennar, the creditors claimed.
The case is LandSource Creditor Litigation Liquidating Trust V.
LNR NWHL Holdings Inc., case no. 10-51219 (Bankr. D. Del.).
About LandSource Communities
LandSource Communities Development LLC, which operates in Arizona,
California, Florida, New Jersey, Nevada and Texas, was involved in
the planning and development of master planned communities and
transforming undeveloped land into ready-to-build home sites and
commercial properties.
LandSource and 20 of its affiliates filed for Chapter 11
bankruptcy protection before the U.S. Bankruptcy Court for the
District of Delaware on June 8, 2008 (Lead Case No. 08-11111).
The Debtors were represented by Marcia Goldstein, Esq., at Weil
Gotshal & Manges in New York, and Mark D. Collins, Esq., at
Richards Layton & Finger in Wilmington, Delaware. Lazard Freres &
Co. was the financial advisor, and Kurtzmann Carson Consultants
served as notice and claims agent.
In August 2009, following confirmation of its Barclays-backed
Chapter 11 reorganization plan, LandSource Communities Development
LLC emerged from Chapter 11 reorganization as Newhall Land
Development LLC.
LEAR CORP: Has $160-Mil. Profit in 2nd Quarter Out of Bankruptcy
----------------------------------------------------------------
Lear Corp. reported $160 million in net income attributable to the
Company in the second quarter ended July 3, 2010, or $2.96 per
diluted share, as compared to a net loss of $174 million, or
($2.24) per diluted share, in the second quarter of 2009.
Net sales in the second quarter of 2010 were $3.0 billion, as
compared to $2.3 billion in the second quarter of 2009, an
increase of $758 million or 33.2%. Improved global vehicle
production volumes and favorable platform mix positively impacted
net sales by $701 million.
Net income attributable to Lear in the first six months of 2010
was $226 million, or $4.18 per diluted share, as compared to a net
loss of $438 million, or ($5.66) per diluted share, in the first
six months of 2009.
Net sales in the first six months of 2010 were $6.0 billion as
compared to $4.4 billion in the first six months of 2009, an
increase of $1.5 billion or 34.4%. Improved global vehicle
production volumes positively impacted net sales by $1.3 billion.
In the first half of 2010, the Company recorded charges of
$24.3 million in connection with its restructuring actions.
On November 9, 2009, Lear and certain of its U.S. and Canadian
subsidiaries emerged from bankruptcy proceedings under Chapter 11
of the United States Bankruptcy Code.
In the first half of 2010, the Company continued to restructure
its global operations and to aggressively reduce its costs. The
Company expects accelerated restructuring actions and related
investments to continue for the next few years.
Lear expects 2010 net sales of approximately $11.0 billion,
consistent with its prior outlook, and 2010 core operating
earnings of $450 million to $500 million, up $75 million from the
prior outlook. Free cash flow in 2010 is expected to be in the
range of $225 million to $275 million, up $75 million from the
prior guidance.
Capital spending in 2010 is estimated to be approximately
$195 million. Depreciation and amortization expense is
anticipated to be about $240 million. Operational restructuring
costs in 2010 are estimated to be approximately $110 million.
At July 3, 2010, Lear had $6.305 billion in total assets against
$2.797 billion in total current liabilities and $1.185 billion in
total long-term liabilities, resulting in $2.322 billion in
stockholders' equity.
A full-text copy of Lear's earnings release is available at no
charge at http://ResearchArchives.com/t/s?67a3
A full-text copy of Lear's Form 10-Q is available at no charge
at http://ResearchArchives.com/t/s?67a4
About Lear Corp
Headquarters in Southfield, Michigan, Lear Corporation --
http://www.lear.com/-- is one of the world's leading suppliers
of automotive seating systems and electrical distribution and
power management systems. The Company's world-class products are
designed, engineered and manufactured by a diverse team of
approximately 75,000 employees at 205 facilities in 36 countries.
Lear's common shares are traded on the New York Stock Exchange
under the symbol [LEA].
Lear Corp. and its affiliates filed for Chapter 11 on July 7, 2009
(Bankr. S.D.N.Y. Case No. 09-14326). Attorneys at Kirkland &
Ellis LLP, served as the Debtors' bankruptcy counsel. In November
2009, Lear emerged from bankruptcy protection.
* * *
Reorganized Lear carries a 'B1' corporate family rating from
Moody's and 'B' corporate credit rating, with positive outlook,
from Standard & Poor's.
LEHMAN BROTHERS: Applies to Guarantee Payment of Lazard Fees
------------------------------------------------------------
Lehman Brothers Holdings Inc. seeks court approval to guarantee
the payment of fees and expenses of Lazard Freres & Co. LLC for
services provided to Lehman ALI Inc.
Lehman ALI employed the firm as its investment banker in
connection with the restructuring of Innkeepers USA Trust, a
hotel investment company that filed for bankruptcy protection
early last month. Lehman ALI is a lender of the hotel investment
company.
LBHI will only be required to pay Lazard if either Innkeepers or
Lehman ALI fails to pay the firm, according to Shai Waisman,
Esq., at Weil Gotshal & Manges LLP, in New York.
Mr. Waisman further says that LBHI will be reimbursed by Lehman
Commercial Paper Inc., an affiliate of Lehman ALI, if ever it
pays the firm's fees and expenses.
Lazard is paid a monthly fee of $150,000 for its services and
will get $1.5 million if Innkeepers' restructuring is
consummated.
In addition to guaranteeing Lazard's fees and expenses, LBHI will
also guarantee the payment of Innkeepers' indemnification
obligations to its investment banker.
The Court will consider approval of the request at the August 18,
2010 hearing. Deadline for filing objections is August 11, 2010.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Proposes Settlement with Mortgage Lenders
----------------------------------------------------------
Lehman Brothers Holdings Inc. and its affiliated debtors seek
approval from Judge James Peck of the U.S. Bankruptcy Court for
the Southern District of New York of an agreement to settle
Aurora Loan Services LLC's claim against Mortgage Lenders Network
USA Inc.
Aurora Loan holds a $62,978,613 claim against MLN on behalf of
LBHI, Aurora Bank FSB, and a group of mortgage loan
securitization trusts. The claim stemmed from MLN's alleged
breach of its agreement with Aurora Loan governing LBHI's
acquisition of loans from MLN.
Under the settlement deal, the claim will be reduced and allowed
in the sum of $28 million against MLN, to be paid in accordance
with MLN's plan of liquidation.
LBHI estimated that $26,979,118 of the $28 million is allocable
to the company's claim while the rest is allocable to the claim
of Aurora Bank and the securitization trusts, according to Shai
Waisman, Esq., at Weil Gotshal & Manges LLP, in New York.
The deal also calls for the release of any other claim that LBHI
Aurora Loan and Aurora Bank may have against MLN and the trust
that was established to liquidate MLN's assets.
The terms of the settlement are reflected in a seven-page
stipulation between Aurora Loan and Neil Luria, who administers
the MLN liquidating trust. A full-text copy of the stipulation
is available for free at:
http://bankrupt.com/misc/LBHI_SettlementMLN.pdf
The stipulation is also filed for approval with the U.S.
Bankruptcy Court for the District of Delaware, which oversees
MLN's chapter 11 case.
Judge Peck will consider approval of the settlement at the
August 18, 2010 hearing. Deadline for filing objections is
August 11, 2010.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Seeks Nod for Ali to Ink Deal With Innkeepers
--------------------------------------------------------------
Lehman Commercial Paper Inc. asks Judge James Peck of the U.S.
Bankruptcy Court for the Southern District of New York to permit
its non-debtor affiliate Lehman ALI Inc. to enter into what a plan
support agreement with a bankrupt hotel investment company,
Innkeepers USA Trust.
Lehman ALI is a lender of Innkeepers USA Trust, which filed for
bankruptcy protection on July 19, 2010, under a pre-negotiated
deal with the Lehman unit.
Under the Plan Support Agreement, Lehman ALI will get 100%
equity in the reorganized Innkeepers in full satisfaction of
its $220.2 million secured claim. The claim stemmed from the
$250 million loan that Lehman ALI provided to fund parts of the
$1.8 billion buyout of the hotel investment company by Apollo
Investment Corp.
The $250 million loan was among those loans that were previously
sold and assigned by LCPI to a trust, and eventually transferred
to Lehman ALI.
As required by Judge Peck's prior order which authorized the loan
transfer, Lehman ALI has to get an approval first from the
bankruptcy judge before entering into the Plan Support Agreement.
The Plan Support Agreement also calls for Lehman ALI to sell 50%
of its equity to Apollo for $107.5 million and for the release of
liability by Innkeepers in favor of Lehman ALI and LCPI.
Lehman ALI is not required to consummate the transactions under
the Plan Support Agreement unless it is able to sell 50% of its
equity to Apollo or another potential buyer for $107.5 million.
To help Innkeeper restructure while in bankruptcy, LCPI also
seeks court approval to provide loan to another affiliate, Solar
Finance Inc., so that the latter could provide $17.5 million in
debtor-in-possession financing to the hotel investment company.
The funds will be used to finance improvements on the hotel
properties, which serve as collateral for the $250 million loan.
The Court will consider approval of LCPI's request at the August
18, 2010 hearing. Deadline for filing objections is August 11,
2010.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Wants to Allow Insurers to Pay Litigation Costs
----------------------------------------------------------------
Lehman Brothers Holdings Inc. and its affiliated debtors seek a
court order authorizing three insurance firms to pay the legal
fees of former top executives and employees.
The insurance policies provided by Continental Casualty Company,
Certain Underwriters at Lloyd's London and London Market Company,
and U.S. Specialty Insurance Company cover the defense costs for
LBHI's former executives and employees who are facing a number of
lawsuits, which stemmed from the bankruptcy of the company.
Continental Casualty's and Lloyd's insurance policies provide
$10 million each while that of U.S. Specialty provides up to
$15 million.
Richard Krasnow, Esq., at Weil Gotshal & Manges LLP, in New York,
says the proposed payment would ensure the personnel's continued
access to additional funding in case the $15 million provided by
another insurer, Federal Insurance Company (Chubb) is exhausted.
Chubb provides $15 million in coverage but it is expected to be
exhausted in the near future given the state of the lawsuits, Mr.
Krasnow tells the Court. Meanwhile, the $20 million in coverage
provided by LBHI's primary insurer, XL Specialty Insurance
Company, had already been used, he says.
Richard Fuld, former chief executive, and second-in-command Joe
Gregory, are among those named as defendants in securities
lawsuits currently pending in federal court in Manhattan. The
Justice Department and the U.S. Securities and Exchange
Commission have also launched formal investigations into LBHI's
bankruptcy filing, according to a July 29 report by The Wall
Street Journal.
Charlie Gasparino of Fox Business Network reported last month
that the SEC was focusing its investigation on the actions and
statements of Erin Callan, former chief financial officer. Mr.
Gasparino quoted sources saying the agency is looking at
statements and actions by the CFO ahead of LBHI's bankruptcy
filing in 2008.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Wants to Halt Deals for Loans Portfolio
--------------------------------------------------------
Lehman Brothers Holdings Inc. seeks the termination of certain
agreements to allow Lehman Commercial Paper Inc. to manage a
portfolio of their real estate loans and other illiquid assets.
The agreements to be terminated include a participation agreement
and a security and control agreement governing the Restructured
Asset Securities with Enhanced Returns Series 2007-A Trust and
the 2007-7-MM Trust. Both are special purpose securitization
vehicles that were established to issue securities to finance the
assets.
LCPI granted participations in the assets to RACERS A Trust as
collateral through the Participation Agreement. The trust,
meanwhile, pledged its right and interest in the collateral to
U.S. Bank N.A. under the Security and Control Agreement.
U.S. Bank administers both the RACERS A Trust and the RACERS MM
Trust.
Alfredo Perez, Esq., at Weil Gotshal & Manges LLP, in New York,
says the management and sale of the assets has been difficult and
may result in the depreciation of their value in view of the
participation to the RACERS A Trust.
"The management and sale of the assets, participations in which
constitute the collateral, is extremely difficult and many
actions related to the assets arguably require the cooperation of
U.S. Bank.," Mr. Perez says in a motion filed with the Court. He
further says that a Lehman unit that holds title to the asset
could not also represent to potential buyers that it is the sole
owner of that asset.
The motion also seeks the replacement of U.S. Bank by LBHI or its
designee as the trustee through an amendment of the other
documents related to the trusts as well as the payment of fees
and expenses of U.S. Bank for its services.
The Court will consider approval of the motion at the August 18,
2010 hearing. Deadline for filing objections is August 11, 2010.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEONARD MARTINEZ: Case Summary & 10 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Leonard Ross Martinez
1508 E Carmen Street
Tempe, AZ 85283
Bankruptcy Case No.: 10-24113
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: Redfield T. Baum Sr.
Debtor's Counsel: Nasser U. Abujbarah, Esq.
The Law Offices of Nasser U. Abujbarah
7025 E. McDowell Road, Suite 9
Scottsdale, AZ 85257
Tel: (480) 776-6846
Fax: (480) 776-6847
E-mail: nasser@nualegal.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 10 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/azb10-24113.pdf
The petition was signed by the Debtor.
LIBERTY PALACE: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Liberty Palace LLC
199 Lee Avenue, Suite 209
Brooklyn, NY 11211
Bankruptcy Case No.: 10-47212
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Jerome Feller
Debtor's Counsel: David Carlebach, Esq.
40 Exchange Place, Suite 1306
New York, NY 10005
Tel: (212) 785-3041
Fax: (212) 785-3618
E-mail: david@carlebachlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Kalman Zimmerman, vice president.
MATTERHORN GROUP: Gets Interim Okay to Use Cash Collateral
----------------------------------------------------------
Matterhorn Group, Inc., Vitafreze Frozen Confections, Inc., sought
and obtained interim authorization from the U.S. Bankruptcy Court
for the Eastern District of California to use the cash collateral.
The Debtors' primary secured creditor is Key Bank, N.A. (the
Bank). As of the Petition Date, the Debtors owed the Bank
approximately $1,249,983 on a term loan (the Term Loan) and
approximately $9,314,953 on a revolving line of credit (the Line).
These bank loans are allegedly secured by first priority liens on
substantially all of the Debtors' assets.
According to the UCC-1 lien reports obtained by the Debtors from
Idaho, additional other entities (the Other Secured Parties) may
have liens upon certain of the Debtors' assets. The Debtors
believe that the liens of the Other Secured Parties only relate to
particular equipment leased or purchased by the Debtors, and
therefore don't extend to the cash collateral.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Brill L.L.P.,
the attorney for the Debtors, explained that the Debtors need the
money to fund their Chapter 11 case, pay suppliers and other
parties. The Debtors will use the collateral pursuant to a
budget, a copy of which is available for free at:
http://bankrupt.com/misc/MATTERHORN_budget.pdf
The Debtors submit that the Bank and the Other Creditors will be
adequately protected by (i) an equity cushion in excess of 20%;
(ii) adequate protection payments as set forth in the Budge;
(iii) replacement liens; and/or (iv) continued operation of the
Debtors' business, which will preserve the value of the Debtors'
assets, business and going concern value.
The Court has set a final hearing for August 23, 2010, at
1:30 p.m. on the Debtors' request to use cash collateral.
Matterhorn Group, Inc., owns 100% of the equity of Deluxe Ice
Cream Company and Vitafreze Frozen Confections, Inc. The
companies are independent producers of ice cream and water-ice
novelty products in the United States. They operate from
manufacturing facilities in Sacramento, California, and Salem,
Oregon. The companies' administrative office is in Las Vegas,
Nevada.
Boise, Idaho-based Deluxe Ice filed for Chapter 11 bankruptcy
protection on July 26, 2010 (Bankr. E.D. Calif. Case No. 10-
39670), along with Matterhorn Group, Inc. (Case No. 10-39672) and
Vitafreze Frozen Confections, Inc. (Case No. 10-39664). Deluxe
Ice and Vitafreze Frozen each estimated assets and debts at
$10,000,001 to $50,000,000.
On August 3, 2010, the Court ruled that the bankruptcy cases be
jointly administered, with Matterhorn Group as the lead case.
MATTERHORN GROUP: Section 341(a) Meeting Scheduled for September 2
------------------------------------------------------------------
The U.S. Trustee for Region 17 will convene a meeting of the
creditors of Matterhorn Group, Inc., Vitafreze Frozen Confections,
Inc., and Deluxe Ice Cream Company on September 2, 2010, at
9:00 a.m. The meeting will be held at Robert T Matsui United
States Courthouse, 501 I Street, Room 7-500, 7th Floor,
Sacramento, CA 95814.
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.
Matterhorn Group, Inc., owns 100% of the equity of Deluxe Ice
Cream Company and Vitafreze Frozen Confections, Inc. The
companies are independent producers of ice cream and water-ice
novelty products in the United States. They operate from
manufacturing facilities in Sacramento, California, and Salem,
Oregon. The companies' administrative office is in Las Vegas,
Nevada.
Boise, Idaho-based Deluxe Ice filed for Chapter 11 bankruptcy
protection on July 26, 2010 (Bankr. E.D. Calif. Case No. 10-
39670), along with Matterhorn Group, Inc. (Case No. 10-39672) and
Vitafreze Frozen Confections, Inc. (Case No. 10-39664). Deluxe
Ice and Vitafreze Frozen each estimated assets and debts at
$10,000,001 to $50,000,000 as of the Petition Date.
On August 3, 2010, the Court ruled that the bankruptcy cases be
jointly administered, with Matterhorn Group as the lead case.
MAX & ERMA'S: Plan & Sale Hearing Scheduled for Aug. 18
-------------------------------------------------------
Max & Erma's Restaurant, Inc., with the support of the Official
Committee of Unsecured Creditors appointed in its chapter 11 case,
is preparing to sell substantially all of its assets located in
Pennsylvania, Ohio, Illinois, Michigan, Indiana, Kentucky, West
Virginia, South Carolina, Virginia, Missouri and South Dakota (as
identified in that certain Asset Purchase Agreement dated July 2,
2010) to Concept Development Partners, LLC for $24.8 million in
cash plus the assumption of specified liabilities.
The assets being sold include, among other things, real property
interests, certain leasehold and contract interests, equipment,
machinery, furniture, fixtures, trade fixtures and improvements
located in or related to the Debtor's stores, liquor licenses,
warranty and license rights, intellectual property and technology,
computer hardware and software, food and beverage inventory,
uniforms, supplies, paper goods, promotional items, utensils,
dishware, books and records, accounts receivable, cash, credit
card rights, the memorabilia used for decor in the Debtor's stores
and all furniture, fixtures and equipment from the corporate
offices in Columbus, Ohio, and Pittsburgh, Pa., and other storage
facilities.
The Agreement is attached as Exhibit 1 to the Joint Chapter 11
Plan Proposed by the Debtor and The Official Committee of
Unsecured Creditors Dated July 9, 2010. If you wish to obtain a
copy of the Agreement, examine the property to be sold or require
additional information pertaining to the conditions of the sale
you should contact:
Counsel for the Debtor:
Robert O. Lampl, Esq.
960 Penn Avenue, Suite 1200
Pittsburgh, PA 15222
Telephone: (412) 392-0330
E-mail: rlampl@lampllaw.com
- or -
Counsel for the Committee:
Michael J. Roeschenthaler, Esq.
McGUIREWOODS LLP
625 Liberty Avenue, 23rd Floor
Pittsburgh, PA 15222
Telephone: (412) 667-7905
E-mail: mroeschenthaler@mcguirewoods.com
An auction will be held on Aug. 16, 2010, during which any higher
and better offers will be received. The total sale consideration
presently proposed is $24,854,516 (subject to working capital
adjustments), which is comprised of cash, assumed liabilities and
a promissory note. The aggregate consideration for the initial
overbid must be at least $25,704,516.
Anyone who wished to object to the sale must file a written
objection to the Plan with the Clerk of the Bankruptcy Court in
Pittsburgh and serve a copy of the objection on counsel for the
Debtor on or before Aug. 12, 2010.
A hearing on the Plan (which contemplates the sale) will be held
on Aug. 18, 2010 at 2:00 p.m., Eastern Standard Time, in
Pittsburgh, before the Honorable M. Bruce McCullough.
Max & Erma's owns a chain of 106 restaurants located in
Pennsylvania, Ohio, and Michigan, with a few in Chicago,
Washington, Atlanta, and Kentucky. About 79 are company-owned and
operated, while 27 belong to franchisees. Max & Erma's is owned
by G&R Acquisitions, North Side. The chain started operating in
1972, taking the Max & Erma's name from two owners of a bar.
Max & Erma's Restaurant, Inc., sought chapter 11 protection
(Bankr. W.D. Pa. Case No. 09-27807) in Oct. 2009. At the time of
the filing, the Debtor estimated its assets and debts at less than
$10 million.
MEDICAL STAFFING: Can Auction Substantially All Assets on Aug. 19
-----------------------------------------------------------------
The Hon. Erik P. Kimball of the U.S. Bankruptcy Court for the
Southern District of Florida authorized Medical Staffing Network
Holdings, Inc., et al., to sell substantially all of their assets,
and transferred equity interests, in an auction led by MSN
AcquisitionCo., LLC.
The auction will take place on August 19, 2010, at 10:00 a.m.,
(prevailing Eastern Time), at the offices of Berger Singerman,
P.A., 350 East Las Olas Blvd., Suite 1000, Fort Lauderdale.
The deadline for submitting bids is August 17, at 4:00 p.m. A bid
must propose a purchase price equal to or greater than
$84,122,982, plus the outstanding Obligations under the DIP Loan
Documents in cash. The Debtors and its investment banker,
Jefferies & Company, Inc., are in the process of contacting the
contact parties to explore their interest in pursuing a competing
transaction.
The Court will consider the sale of the assets, and transferred
equity interests to MSN AcquisitionCo., or the winning bidder at a
hearing on August 20, at 10:30 a.m., or at an earlier date as
counsel and interested parties may be heard. Objections, if any,
are due 4:00 p.m. on August 16.
The Debtors are represented by:
Berger Singerman, P.A.
Paul Steven Singerman, Esq.
Jordi Guso, Esq.,
200 South Biscayne Boulevard, Suite 1000
Miami, FL 33131
About Medical Staffing
Boca Raton, Florida-based Medical Staffing Network Holdings, Inc.,
provides 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. The Company filed for Chapter 11 bankruptcy
protection on July 2, 2010 (Bankr. S.D. Fla. Case No. 10-29101.)
Medical Staffing estimated its assets and debts at $100,000,001 to
$500,000,000. In its schedules, an affiliate of Medical Staffing
listed total assets of $53,293,726 and total liabilities of
$129,862,111.
Akerman Senterfitt is the Debtor's special corporate and
transactional counsel. Loughlin Meghji + Company is the Company's
corporate restructuring advisor. Ernst & Young LLP is the
Company's accounting and tax advisor. The Garden City Group Inc.
is the Company's claims and notice agent.
MEDICAL STAFFING: Can Obtain $15MM Loan from General Electric
-------------------------------------------------------------
The Hon. Erik P. Kimball of the U.S. Bankruptcy Court for the
Southern District of Florida, in a final order, authorized Medical
Staffing Network Holdings, Inc., et al., to:
a) obtain postpetition secured financing from General Electric
Capital Corporation, as administrative agent and collateral
agent and the lenders party thereto;
b) use cash collateral of the second lien lenders and NexBank,
SSB, as successor administrative agent and collateral agent;
and
c) grant replacement liens, and superpriority administrative
claim status, as adequate protection to prepetition secured
parties.
As of the petition date, the Debtors' first lien obligations
amounted to not less than $98,784,590, plus all accrued or,
hereafter accruing and unpaid interest thereon and any additional
fees and expenses.
The Debtors' second lien obligations consists of aggregate
principal amount of not less than $26,771,780, plus all accrued
and unpaid interest thereon and any additional fees and expenses.
The Debtors may use the DIP Facility to operate their businesses,
maintain business relationships with vendors, suppliers and
customers, to make payroll, to make capital expenditures, and to
satisfy other working capital and operational needs.
The Debtors were unable to obtain financing on more favorable
terms from sources other than the DIP secured parties under the
DIP loan documents.
The DIP loan consists of a first priority priming senior secured
revolving credit facility of up to $15 million in aggregate
principal amount.
The terms of the DIP facility includes an upfront facility fee
equal to 3.0% of the maximum amount of the DIP Facility, which
amount will be payable on the closing date to the DIP Agent for
prompt distribution to the DIP Lenders on a pro rata basis; and an
unused facility fee equal to 0.50% per annum.
The first lien lenders, and the second lien lenders, also
consented to the Debtors' use of cash collateral, up to the amount
of the petition date cash, for (i) repayment of the protective
advances, until protective advances are paid in full; and (ii) the
operation of the Debtors' businesses.
About Medical Staffing
Boca Raton, Florida-based Medical Staffing Network Holdings, Inc.,
provides 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. The Company filed for Chapter 11 bankruptcy
protection on July 2, 2010 (Bankr. S.D. Fla. Case No. 10-29101.)
Berger Singerman, P.A., assists the Debtors in their restructuring
efforts. In its schedules, Medical Staffing's affiliate listed
total assets of $53,293,726 and total liabilities of $129,862,111.
Akerman Senterfitt is the Debtor's special corporate and
transactional counsel. Loughlin Meghji + Company is the Company's
corporate restructuring advisor. Ernst & Young LLP is the
Company's accounting and tax advisor. The Garden City Group Inc.
is the Company's claims and notice agent.
MERUELO MADDUX: Creditors Win Bid to File Competing Plan
--------------------------------------------------------
Secured creditors Legendary Investors Group No. 1 LLC and East
West Bank have obtained court approval to file a competing Chapter
11 plan for Meruelo Maddux Properties Inc, Bankruptcy Law360
reports.
Law360 says Judge Kathleen Thompson of the U.S. Bankruptcy Court
for the Central District of California signed off on the bid by
Legendary and East West Bank to file their own reorganization plan
for the Debtor.
About Meruelo Maddux
Meruelo Maddux and its affiliates filed for Chapter 11 protection
on March 26, 2009 (Bankr. C. D. Calif. Lead Case No. 09-13356).
Aaron De Leest, Esq., John J. Bingham, Jr., Esq., and John N.
Tedford, Esq., at Danning Gill Diamond & Kollitz, represent the
Debtors in their restructuring efforts. Asa S. Hami, Esq., Tamar
Kouyoumjian, Esq., and Victor A. Sahn, Esq., at SulmeyerKupetz, A
Prof Corp, represent the official committee of unsecured creditors
as counsel. The Debtors' financial condition as of December 31,
2008, showed $681,769,000 in assets and $342,022,000 of debts.
MEXICANA AIRLINE: Grupo Aeroportuario to Modify Collection Process
------------------------------------------------------------------
Grupo Aeroportuario del Pacifico, S.A.B. de C.V., announced that
in lightof Compania Mexicana de Aviacion, S.A. de C.V.'s decision
to file an insolvency petition with a district judge in Mexico
City, it will be modifying its passenger charges' collection
process.
Grupo Mexicana operates at 10 of GAP's 12 airports: Guanajuato,
Guadalajara, La Paz, Los Mochis, Morelia, Mexicali, Puerto
Vallarta, Los Cabos, Tijuana and Manzanillo. During the first six
months of 2010, Grupo Mexicana de Aviacion through its different
subsidiaries transported a total of 1,869,700 passengers, which is
equal to 18.26% of GAP's network and represents 17.88% of GAP's
domestic passengers and 18.89% of GAP's international passengers.
Passenger charges are fees charged by all airports for the use of
the airport's facilities. Airports use revenues from passenger
charges to ensure the security of passengers as well as to
maintain, modernize and expand the airport's infrastructure.
Generally, the airlines collect passenger charges for the airports
by adding the fee to the price of passenger tickets.
The collection process will be modified to benefit the interests
of the Company and those of Mexicana de Aviacion, Mexicana Click
and Mexicana Link. Therefore, once the current agreements expire,
passengers that purchase a ticket for any of these airlines must
pay the passenger charges directly at the airport since this
charge will no longer be included in the price of the ticket. The
rest of the airlines that operate in the GAP network will not be
affected.
It is important to mention that the passenger charges paid at the
airport will remain the same as those previously charged on
passenger tickets by the airlines that comprise Grupo Mexicana de
Aviacion.
GAP will issue a press release to announce the details of the
process for the payment of the passenger charges. In order to
cause the least amount of disruption to passengers, GAP will
ensure that the process is efficient and fast. With this change,
GAP seeks to reduce its accounts receivable from the airlines that
form part of Grupo Mexicana de Aviacion and to reduce the risk of
nonpayment of revenues belonging to the Company, as well as
guarantee the proper future development of the infrastructure of
its airports.
About Grupo Aeroportuario
Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (GAP) operates
twelve airports throughout Mexico's Pacific region, including the
major cities of Guadalajara and Tijuana, the four tourist
destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo,
and six mid-sized cities: Hermosillo, Guanajuato, Morelia,
Aguascalientes, Mexicali and Los Mochis. In February 2006, GAP's
shares were listed on the New York Stock Exchange under the ticker
symbol "PAC" and on the Mexican Stock Exchange under the ticker
symbol "GAP".
About Mexicana Airline
Compania Mexicana de Aviacion or Mexicana Airlines --
http://www.mexicana.com/-- is a privately held airline and a
subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana
is the oldest commercial carrier in North America. Charles
Lindbergh piloted the first trip for Mexicana between Brownsville,
Texas, and Mexico City.
Grupo Mexicana de Aviacion is the parent of Compania Mexicana.
Two other units of Aerovias Caribe S.A. de C.V. (Mexicana Click)
and Mexicana Inter S.A. de C.V. (Mexicana Link) are two other
units of Grupo Mexicana
Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's
largest airline, filed for bankruptcy in the U.S. and Mexico on
August 2, 2010. In the U.S., the company filed in the U.S.
Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection
(case no. 10-14182), and in Mexico, it filed for the equivalent of
Chapter 11.
Compania Mexicana estimated assets of $500 million to $1 billion
and debts of more than $1 billion in its Chapter 15 petition.
William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to
Maru E. Johansen, foreign representative of Compania Mexicana.
Mexicana de Aviacion stated that despite its bankruptcy filing, it
expects to continue to operate normally, and that such filings did
not affect the operations of Click Mexicana and Mexicana Link,
which are independent companies from Mexicana de Aviacion.
MEXICANA AIRLINE: OMA Announces Adjustments to Flights
------------------------------------------------------
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as
OMA, said that Compania Mexicana de Aviacion, S.A. de C.V.,
announced adjustments to its global flight itineraries on August
2nd, including changes at the OMA airports of Monterrey and
Zacatecas, principally on international routes.
Grupo Mexicana, which comprises Mexicana de Aviacion, Click
Mexicana, and Mexicana Link, has operations at twelve of OMA's
thirteen airports.
OMA recommends that passengers contact Mexicana de Aviacion
directly with any questions about their flights. The itinerary
changes announced by Mexicana de Aviacion at OMA's airports are:
------------------------- -------------------------------
Route Modification
------------------------- -------------------------------
Zacatecas - Bajio Suspended
------------------------- -------------------------------
Monterrey - Mexico Reduction by one flight per day
------------------------- -------------------------------
Zacatecas - Tijuana Connection via Mexico City
------------------------- -------------------------------
Monterrey - New York Connection via Mexico City
------------------------- -------------------------------
Zacatecas -- Los Angeles Connection via Mexico City
------------------------- -------------------------------
Zacatecas -- Oakland Connection via Mexico City
------------------------- -------------------------------
Zacatecas -- Chicago Connection via Mexico City
------------------------- -------------------------------
During the first six months of 2010, Grupo Mexicana generated
16.6% of OMA's total passenger traffic, of which 7.6% was
accounted for solely by Mexicana de Aviacion. Grupo Mexicana
generated 17.3% of OMA's domestic passenger traffic, including
7.2% from Mexicana de Aviacion. In terms of international
traffic, Grupo Mexicana generated 13.1% of traffic, of which
Mexicana de Aviacion accounted for 9.3%.
Grupo Mexicana generated 12.2% of OMA's revenues during the first
six months of 2010, of which Mexicana de Aviación accounted
for 5.9%.
As of June 30, 2010, Grupo Mexicana accounted for 21.8% of OMA's
accounts receivable, of which Mexicana de Aviacion accounted for
10.8%. The majority of these accounts receivable represent
passenger charges that Mexicana de Aviacion collects from
passengers acting as collection agent. Such passenger charges are
the property of the airports and constitute their principal source
of resources in order to make committed investments and to
maintain the quality of services.
At the present time, neither OMA nor any of its subsidiaries have
been notified, in their capacity of creditors, that the courts
have recognized Mexicana de Aviacion's insolvency proceeding. OMA
is evaluating the different alternatives available in order to
take the decisions that will best protect the interests of our
airline clients, passengers, and shareholders.
About OMA
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as
OMA, -- http://www.oma.aero.com-- operates 13 international
airports in nine states of central and northern Mexico. OMA's
airports serve Monterrey, Mexico's third largest metropolitan
area, the tourist destinations of Acapulco, Mazatlan, and
Zihuatanejo, and nine other regional centers and border cities.
OMA also operates a hotel and commercial areas inside Terminal 2
of the Mexico City airport. OMA employs over 970 persons in order
to offer passengers and clients, airport and commercial services
in facilities that comply with all applicable international
safety, security standards, and ISO 9001:2008. OMA's strategic
shareholder members are ICA, Mexico's largest engineering,
procurement, and construction company, and Aeroports de Paris
Management, subsidiary of Aeroports de Paris, the second largest
European airports operator. OMA is listed on the Mexican Stock
Exchange (OMA) and on the NASDAQ Global Select Market (OMAB).
About Mexicana Airline
Compania Mexicana de Aviacion or Mexicana Airlines --
http://www.mexicana.com/-- is a privately held airline and a
subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana
is the oldest commercial carrier in North America. Charles
Lindbergh piloted the first trip for Mexicana between Brownsville,
Texas, and Mexico City.
Grupo Mexicana de Aviacion is the parent of Compania Mexicana.
Two other units of Aerovias Caribe S.A. de C.V. (Mexicana Click)
and Mexicana Inter S.A. de C.V. (Mexicana Link) are two other
units of Grupo Mexicana
Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's
largest airline, filed for bankruptcy in the U.S. and Mexico on
August 2, 2010. In the U.S., the company filed in the U.S.
Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection
(case no. 10-14182), and in Mexico, it filed for the equivalent of
Chapter 11.
Compania Mexicana estimated assets of $500 million to $1 billion
and debts of more than $1 billion in its Chapter 15 petition.
William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to
Maru E. Johansen, foreign representative of Compania Mexicana.
Mexicana de Aviacion stated that despite its bankruptcy filing, it
expects to continue to operate normally, and that such filings did
not affect the operations of Click Mexicana and Mexicana Link,
which are independent companies from Mexicana de Aviacion.
MISSION REAL: Has Until October 12 to Submit Reorganization Plan
----------------------------------------------------------------
The Hon. Barry Russell of the U.S. Bankruptcy Court for the
Central District of California extended Mission Real Associates,
LLC's exclusive periods to file and solicit acceptances for the
proposed Plan of Reorganization until October 12, 2010, and
December 13, respectively.
The Court has continued until October 26, 2010 at 2:00 p.m., the
hearing on the dismissal or conversion of the Debtor's case.
Los Angeles, California-based Mission Real Associates, LLC,
together with affiliates, filed for Chapter 11 bankruptcy
protection on March 31, 2010 (Bankr. Case No. C.D. Calif. 10-
22370). Richard K. Diamond, Esq., at Danning, Gill, Diamond &
Kolitz, LLP, assists the Debtor in its restructuring effort. The
Debtor estimated its assets and liabilities at $10,000,001 to
$50 million.
MOODY'S CORP: June 30 Balance Sheet Upside-Down by $491.9-Mil.
--------------------------------------------------------------
Moody's Corporation reported total assets of $1,957,700,000
against total liabilities of $2,449,600,000 and non-controlling
interests of $8,200,000, resulting in shareholders' deficit of
$491,900,000 at June 30, 2010.
Net income attributable to Moody's was $121,000,000 for the three
months ended June 30, 2010, from net income of $109,300,000 for
the same period in 2009. Net income attributable to Moody's was
$234,400,000 for the six months ended June 30, 2010, from net
income of $199,500,000 for the same period in 2009.
Revenue was $477,800,000 for the three months ended June 30, 2010,
from $450,700,000 for the same period in 2009. Revenue was
$954,400,000 for the six months ended June 30, 2010, from
$859,600,000 for the same period in 2009.
A full-text copy of Moody's Form 10-Q report is available at no
charge at http://ResearchArchives.com/t/s?67b4
Based in New York, Moody's Corp. provides (i) credit ratings, (ii)
credit and economic related research, data and analytical tools,
(iii) risk management software and (iv) quantitative credit risk
measures, credit portfolio management solutions and training
services. In 2007 and prior years, Moody's operated in two
reportable segments: Moody's Investors Service and Moody's KMV.
MULTIPLAN INC: Moody's Affirms 'B2' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service affirmed the ratings of Multiplan, Inc.,
including the corporate family and probability of default ratings
at B2. Concurrently, Moody's assigned a Ba3 rating on both the
company's proposed $75 million, 5-year revolving credit facility
and $1.3 billion 7-year senior secured term loan B, and a Caa1
rating to the proposed $675 million senior unsecured notes due
2018. The ratings outlook is stable.
On July 9, 2010, BC Partners and Silver Lake agreed to acquire
Multiplan, Inc. from the Carlyle Group and Welsh Carson for
$3.1 billion. Proceeds from the proposed credit facility and
senior unsecured notes, along with cash equity from both financial
sponsors and management's roll-over of equity, will be used to
complete the acquisition.
Multiplan's B2 Corporate Family Rating continues to reflect the
company's relatively high leverage, history of acquisitions and
LBO transactions and, lack of organic growth within the Primary
PPO network segment. Further adding pressure to the ratings is
the continuing uncertainty with respect to healthcare reform
implications on insurers that could also give rise to challenges.
Supporting the ratings are Multiplan's successful integration of
prior acquisitions, high EBITDA margin, and the new combined
company's scale and covered lives, albeit within a niche market.
The change in the outlook to stable from positive reflects the
increase in incremental debt post-LBO and higher leverage ratios
that are more conducive of a B2 rating. Multiplan's stable
outlook also reflects greater scale following the Viant
acquisition and greater clarity on healthcare reform on Multiplan.
It is Moody's expectation that free cash flow will continue to
improve in relation to debt, even in an environment where revenues
are likely to be pressured by economic weakness and higher
unemployment.
If the transaction closes as proposed, Moody's would withdraw the
ratings on the existing senior secured credit facility and the
senior subordinated notes. LGD point estimates are subject to
change and all ratings are subject to review of final
documentation.
Ratings Affirmed:
* Corporate Family Rating at B2;
* Probability of Default Rating at B2;
Ratings Assigned:
* $75 million Revolving Credit Facility at Ba3 (LGD3, 32%)
* $1,300 million Term Loan B facility at Ba3 (LGD3, 32%)
* $675 million Senior Subordinated Notes at Caa1 (LGD5, 86%)
Ratings to be withdrawn:
Multiplan, Inc.:
* $315 million incremental Senior Secured Term Loan D at B1 (LGD3,
33%);
* $50 million senior secured revolving credit facility due 2012 at
B1 (LGD3, 33%);
* $559 million Senior Secured Term Loan B and Term Loan C due 2013
at B1 (LGD3, 33%);
* $211 million 10.375% Senior Subordinated Notes due 2016 at Caa1
(LGD5, 87%);
Also subject to withdrawal upon completion of the transaction:
Viant Holdings, Inc.:
* $185 million 10.125% Senior Subordinated Notes due 2017 at Caa1
(LGD5, 87%);
The last rating action on Multiplan and Viant was taken on
December 15, 2009, when Moody's assigned a rating to the proposed
debt issuance per the acquisition of Viant Holdings. The outlooks
for Multiplan and Viant were unchanged.
Multiplan Inc., based in New York, New York, operates principally
in the health care benefits field as a PPO, providing health care
cost management via contract arrangements between health insurance
companies, national and regional health plans, third party
administrators, self-insured employers, Taft-Hartley sponsored
plans and federal and state government agencies. Fees are
generated from discounts provided for payers that access the
company's provider network. Multiplan's network includes
approximately 5,000 acute care hospitals, 750,000 practitioners
and 92,000 ancillary facilities nationally. Pro forma net sales
for the combined company were $584 million for the twelve months
ended June 30, 2010.
M.W. SEWALL: Lottery Ticket Sale Proceeds Not Trust Funds
---------------------------------------------------------
WestLaw reports that the Chapter 11 debtor, which operated a chain
of convenience stores licensed to sell lottery tickets, did not
hold the lottery ticket sale receipts "in trust" for the benefit
of the State of Maine Bureau of Alcoholic Beverages and Lottery
Operations. Accordingly, the receipts could be administered as
part of the debtor's bankruptcy estate. The debtor sold lottery
tickets and deposited the receipts in its general operating
account, where they were commingled with other funds and were
available for the debtor's use for any purpose. The lottery
commission had authority to sweep the account electronically to
collect what it was owed at intervals. The existence of that
authority and its periodic exercise, however, amounted only to
bargained-for collection rights and did not transform the debtor's
operating account, or any part of it, into a trust res, the
bankruptcy court reasoned. Other aspects of the parties'
licensing agreement demonstrated that their relationship was that
of vendor-vendee, the court found, and there was certainly no
express trust. The facts of the case did not support imposition
of a constructive trust. The court also rejected the Bureau's
"conduit" theory. In re M.W. Sewall & Co., --- B.R. ----, 2010 WL
2812706 (Bankr. D. Me.).
Headquartered in Bath, Me., M.W. Sewall & Co. was a family
business that operated convenience stores, gas stations,
carwashes, and service centers. The Debtor sought Chapter 11
protection (Bankr. D. Me. Case No. 09-20400) on March 27, 2009.
George J. Marcus, Esq. at Marcus, Clegg & Mistretta, PA
represents the Debtor. The Debtor estimated its assets and debts
at $10 million to $50 million at the time of the filing. Energy
North Inc. bought the Debtor's Clipper Mart convenience store
chain for $9.27 million plus the value of the stores' inventory in
early 2010.
NEW CENTURY FIN'L: SEC Accepts Settlement From 3 Former Execs
-------------------------------------------------------------
The Securities and Exchange Commission on July 29, 2010, said it
accepted settlement offers from three former officers of New
Century Financial Corporation. Brad A. Morrice, the former CEO and
co-founder; Patti M. Dodge, the former CFO; and David N.
Kenneally, the former controller, consented to the relief
described below without admitting or denying the allegations in
the Commission's Complaint. The settlement offers, which have
been submitted to the Court for approval, are contingent upon the
Court's approval of a global settlement in In re New Century, Case
No. 07-931-DDP (C.D. Cal.).
The SEC's complaint alleges, among other things, that New
Century's second and third quarter 2006 Forms 10-Q and two late
2006 private stock offerings contained false and misleading
statements regarding its subprime mortgage business. The
complaint further alleges that Mr. Morrice and Ms. Dodge knew
about certain negative trends in New Century's loan portfolio from
reports they received and that they participated in the disclosure
process, but they did not take adequate steps to ensure that the
negative trends were properly disclosed. The SEC's complaint also
alleges that in the second and third quarters of 2006, Mr.
Kenneally, contrary to Generally Accepted Accounting Principles,
implemented changes to New Century's method for estimating its
loan repurchase obligation and failed to ensure that New Century's
backlog of pending loan repurchase requests were properly
accounted for, resulting in an understatement of New Century's
repurchase reserve and a material overstatement of New Century's
financial results. The complaint further alleges that Dodge was
told of the methodology changes and the backlog of repurchase
requests but did not ensure that they were properly accounted for
and disclosed.
To settle the charges, Mr. Morrice consented to the entry of a
permanent injunction prohibiting him from violating the antifraud
provisions of Section 17(a) of the Securities Act of 1933 and
Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-
5 thereunder, and the internal controls, false statements to
accountants, and certification provisions of Section 13(b)(5) of
the Exchange Act and Rules 13b2-2 and 13a-14 thereunder; and from
aiding and abetting violations of the reporting provisions of
Section 13(a) of the Exchange Act and Rules 12b-20, 13a-11, and
13a-13 thereunder. He also agreed to disgorge $464,354 with
$76,991 in prejudgment interest thereon, and to pay a $250,000
civil penalty.
To settle the charges, Ms. Dodge consented to the entry of a
permanent injunction prohibiting her from violating the antifraud
provisions of Section 17(a) of the Securities Act and Section
10(b) of the Exchange Act and Rule 10b-5 thereunder, and the books
and records, internal controls, false statements to accountants,
and certification provisions of Section 13(b)(5) of the Exchange
Act and Rules 13b2-1, 13b2-2, and 13a-14 thereunder; and from
aiding and abetting violations of the reporting provisions of
Section 13(a) of the Exchange Act and Rules 12b-20, 13a-11, and
13a-13 thereunder. She also agreed to disgorge $379,808 with
$70,192 in prejudgment interest thereon, and to pay a $100,000
civil penalty.
To settle the charges, Mr. Kenneally consented to the entry of a
permanent injunction prohibiting him from violating the antifraud
provisions of Sections 10(b) of the Exchange Act and Rule 10b-5
thereunder, and the books and records, internal controls, and
false statements to accountants provisions of Section 13(b)(5) of
the Exchange Act and Rules 13b2-1 and 13b2-2 thereunder; and from
aiding and abetting violations of the reporting provisions of
Section 13(a) of the Exchange Act and Rules 12b-20, 13a-11, and
13a-13 thereunder. He also agreed to disgorge $126,676 with
$23,324 in prejudgment interest thereon, and to pay a $32,500
civil penalty.
Each of the defendants also agreed to be barred for five years
from serving as an officer and director of a public company.
Disgorgement, prejudgment interest, and penalties will be
distributed to harmed investors pursuant to the Final Judgments.
About New Century
Founded in 1995, Irvine, Calif.-based New Century Financial
Corporation (NYSE: NEW) -- http://www.ncen.com/-- is a real state
investment trust, providing mortgage products to borrowers
nationwide through its operating subsidiaries, New Century
Mortgage Corporation and Home123 Corporation. The Company offers
a broad range of mortgage products designed to meet the needs of
all borrowers.
New Century Financial and its affiliates filed for Chapter 11
protection on April 2, 2007 (Bankr. D. Del. Case No. 07-10416).
Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana
Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins,
Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at
Richards, Layton & Finger, P.A., represent the Debtors. The
Official Committee of Unsecured Creditors selected Hahn & Hessen
as its bankruptcy counsel and Blank Rome LLP as its co-counsel.
When the Debtors filed for bankruptcy, they listed total assets of
$36,276,815 and total debts of $102,503,950.
The Court confirmed the Debtors' second amended joint Chapter 11
plan on July 15, 2008.
NEWPARK RESOURCES: S&P Raises Corporate Credit Rating to 'B'
------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on oilfield services provider Newpark Resources to 'B' from
'B-'. The outlook is stable.
"The rating action reflects an improvement in Newpark's financial
performance stemming from increased activity in the North American
land-based oilfield service industry," said Standard & Poor's
credit analyst Amy Eddy. Newpark has benefited from the increased
rig count as evidenced by its first-half 2010 EBITDA of close to
$50 million compared with an EBITDA loss of close to $10 million
in the first half of 2009. Newpark's credit measures, on a first-
half annualized basis, are healthy for the rating with debt to
EBITDA of slightly more than 1.5x and an interest coverage ratio
of roughly 10x. Although industry conditions still trail the
highs of 2007 and early 2008 S&P expects that Newpark's financial
performance will remain similar to first-half levels for the
remainder of 2010.
Newpark's primary business line?drilling fluids-is highly
correlated to the natural gas rig count in North America. The rig
count, in turn, typically moves in the same direction as natural
gas prices. Although natural gas prices have been relatively
weak, the rig count has increased over the past few quarters in
part because oil and gas exploration and production companies are
drilling to hold acreage in shale plays. For example, Newpark's
revenue derived from its East Texas region, including the
Haynesville Shale, increased 25% from the first quarter to the
second quarter. In S&P's view, the current activity level may not
hold because many of the leasehold drilling requirements will
taper off in 2011 and many E&P companies are less well hedged. If
gas prices remain weak, that could result in less spending by E&P
companies which would weigh on Newpark's profitability profile.
The company also operates in two other business lines: mats and
environmental services. Newpark produces and supplies
interlocking mats used for temporary roads and worksites,
primarily by E&P companies, as well as utilities. Although the
mat segment is posting strong results because of demand for mats
in environmentally sensitive areas such as the Marcellus Shale,
this segment generally posts inconsistent results. Finally,
Newpark also operates an environmental services division, which
primarily processes and disposes of E&P waste. Typically, this
division tends to be somewhat more stable that the other two and
is currently benefiting from clean-up activities related to the
Macondo oil spill.
As a result of the uptick in the rig count though, first half 2010
results annualized compare favorably to industrial medians. As of
June 30, 2010 debt to annualized EBITDA was around 1.7x and
interest coverage was about 10x. Houston-based Newpark had
$154 million of total adjusted debt as of June 30, 2010, including
about $34 million of analytical adjustments primarily relating to
operating leases.
The stable outlook reflects S&P's expectation that credit measures
will remain near similar levels in the near term due to improved
industry conditions. Given the fragile nature of the industry,
though, S&P considers a positive rating action to be unlikely in
the near term. S&P could take a negative rating action if
Newpark's debt to EBITDA increases to more than 7x on an
annualized basis which would correspond to an annualized EBITDA of
around $20 million.
NFC NATIONAL: Case Summary & Largest Unsecured Creditor
-------------------------------------------------------
Debtor: NFC National Marketing Corporation
148 White Cap Way
Panama City Beach, FL 32407
Bankruptcy Case No.: 10-40735
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Northern District of Florida (Tallahassee)
Debtor's Counsel: J. Randall Frier, Esq.
Frier & Frier, P.A.
1682 Metropolitan Circle, Suite A
Tallahassee, FL 32308
Tel: (850) 894-2084
Fax: (850) 894-9494
E-mail: cumberland_1988@yahoo.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Phillip D. Elkins, president.
Debtor-affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Phillip D. & Vickie L. Elkins 10-40728 7/29/10
Assets: $0 to $50,000
Debts: $1,000,001 to $10,000,000
NFC Life Marketing Corporation 10-40736 7/30/10
Assets: $0 to $50,000
Debts: $1,000,001 to $10,000,000
The two NFC entities' lists of unsecured creditors filed together
with their petitions each contains only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Internal Revenue Service All Personal $2,046,409
SBSE: CS: Insolvency Unit Property
400 W. Bay Street, Suite 35045
Stop 5720 - Group 2
Jacksonville, FL 32202-4437
NILKANTH MOTELS: Case Summary & 15 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Nilkanth Motels, Inc.
dba Ashburn Inn of Cordele
1602 E. 16th Avenue
Cordele, GA 31015
Bankruptcy Case No.: 10-11307
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Middle District of Georgia (Albany)
Debtor's Counsel: Jerome L. Kaplan, Esq.
Stone and Baxter, LLP
577 Mulberry Street, Suite 800
Macon, GA 31201-8256
Tel: (478) 750-9898
Fax: (478) 750-9899
E-mail: jkaplan@stoneandbaxter.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 15 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/gamb10-11307.pdf
The petition was signed by Sunil Patel, president.
PETROHAWK ENERGY: Moody's Gives Stable Outlook; Rates Notes at B3
-----------------------------------------------------------------
Moody's Investors Service moved the outlook for Petrohawk Energy
Corporation (HK) to stable from negative. Moody's also rated HK's
proposed notes offering B3 (LGD 4, 65%) and affirmed the company's
B2 Corporate Family Rating, B2 Probability of Default Rating, B3
rating on the existing senior unsecured notes. The Speculative
Grade Liquidity Rating was upgraded to SGL-2 from SGL-3.
Proceeds from the senior notes offering will be used to repay fund
the tender of the company's 7.125% notes due 2012 and the 9.125%
notes due in 2013.
"The move to a stable outlook reflects Petrohawk's improved
leverage, especially on its production, combined with better than
expected assets sales that will fill the shortfall in cash needed
for its 2010 capital spending program and alleviates the concern
of the company taking on additional debt," said Ken Austin,
Moody's Senior Credit Officer. "In addition, Petrohawk's growing
scale of its reserves reduces the leverage on its proven developed
reserves, although it still remains on the high end of the peer
group"
HK's continued growth of its production compares favorably to the
peer group of rated exploration and production companies. For
2009, production grew by approximately 64% compared from to 2008
and that trend carried into the second quarter of 2010 even after
adjusting for asset sales. This production growth has translated
into leverage on production decreasing from a peak of nearly
$39,000/boe of average daily production in Q2 2008 to around
$25,000/boe of average daily production for Q2 2010, (pro forma
for asset sales). This deleveraging was achieved despite adding
nearly $400 million of debt during that time and has brought
leverage in-line with the B2 average. If HK meets its production
targets for 2010, leverage could improve further and could compare
favorably to some higher rated peers.
The move to stable also reflects HK's ability to raise more than
enough cash through asset sales to fund its aggressive drilling
program. Coming into 2010, HK was expected to outspend cash flow
by approximately $1.0 billion. Since the beginning of 2010, HK
has closed four major assets sales/monetizations that have
generated nearly $1.4 billion in proceeds. These sales
essentially fill the funding gap expected for this year's capital
program and will result in little added debt through the end of
the year.
The stable outlook assumes that HK will continue to grow its
production at reasonable costs, which in turn reduces leverage on
production and provides intra-year signals that it is realizing
good capital productivity from its aggressive capital spending
program.
A positive outlook would be considered if the company's capital
productivity trends remain strong while leverage continues to
improve from current levels. Evidence of this trend would be in
the form of sustained sequential quarterly production trends and
good reserve replacement for 2010 at competitive costs.
The upgrade to SGL-2 reflects HK's improved liquidity profile.
After raising more than enough cash to cover the remainder of its
2010 capital spending program, HK's liquidity profile is strong.
Through a combination of excess cash on hand and an undrawn
revolving credit facility, HK is expected to have ample liquidity
to cover its cash needs over the next 12 months. Although HK is
expected to outspend cash flow over the next four quarters, the
approximate $1.4 billion in proceeds from divestitures along with
a $1.0 billion borrowing base under its credit facility should be
sufficient cover that cash shortfall.
The B2 CFR reflects HK's considerable scale in terms of both
production and reserves, it's competitive cost structure, the
willingness to issue equity to help fund growth, and its
aggressive use of hedging which protects cash flows from weak
natural gas prices.
The B2 CFR also considers HK's very high levels of debt and the
resulting leverage on PD reserves, which ranks among the high end
of the rated E&P peer group. The B2 also reflects the expectation
that HK will continue to have an aggressive drilling program into
2011 as it works to establish production on its Haynesville
acreage and proves up its Eagle Ford positions as well.
Moody's last rating action for Petrohawk Energy Corporation was on
January 22, 2009, when Moody's moved the outlook to negative
following the issuance of new notes.
Petrohawk Energy Corporation is headquartered in Houston, Texas.
PETROHAWK ENERGY: S&P Raises Corporate Credit Rating to 'BB-'
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Petrohawk Energy Corp. to 'BB-' from 'B+'. In
addition, S&P raised its ratings on the company's existing senior
unsecured debt to 'B+' from 'B'.
At the same time, S&P assigned a 'B+' rating to Petrohawk's
proposed $825 million senior unsecured notes due 2020, one notch
lower than the corporate credit rating. The recovery rating is
'5', indicating expectations of modest (10%-30%) payment in a
default. S&P expects the company to use proceeds from the
offering to tender for its 9.125% senior unsecured notes due 2013.
"The upgrade reflects S&P's recognition of Petrohawk's continued
constructive trends in production and reserve growth and improved
credit protection measures," said Standard & Poor's credit analyst
Lawrence Wilkinson. The company maintains one of the most
competitive cost structures in the industry and has demonstrated
prudent funding of its aggressive growth strategy. Over the near
term, an increasing focus on oil and liquids production,
significant hedge coverage, and proceeds from assets sales should
enable the company to preserve leverage at levels appropriate for
the 'BB-' rating category.
The ratings on independent exploration and production firm
Petrohawk Energy Corp. reflect Standard & Poor's Ratings Services'
expectations of high levels of capital spending in excess of
organic cash flows in 2010, a weak near-term outlook for natural
gas prices, and a highly leveraged financial risk profile. The
ratings also take into account healthy production and reserve
growth, significantly hedged production, and the likelihood of
ample liquidity to fund expected 2010 cash flow deficits.
As of June 30, 2010, Houston-based Petrohawk had $2.6 billion in
adjusted debt (including Standard & Poor's analytical
adjustments).
The stable outlook reflects S&P's expectation that Petrohawk will
maintain sufficient liquidity and prudently manage its large
capital spending program in 2010. In the near term, S&P expects
hedges to support cash flow, given a substantially weaker near-
term outlook for natural gas prices. In terms of target credit
measures for the ratings, S&P expects Petrohawk to maintain debt
to EBITDA of 3.5x or less under S&P's commodity pricing
assumptions ($70 oil and $5.50 natural gas). Over the
intermediate term, positive ratings revisions will be tied to
continued favorable trends in production and reserve growth and
sustained improvement in leverage closer to 3.0x debt to EBITDA.
While S&P currently anticipates that Petrohawk will have adequate
liquidity to fund its 2010 capital spending program, S&P could
take a negative rating action if the company were to meaningfully
increase leverage such that leverage approximates 4.0x over a
sustained period.
PHILADELPHIA GAS: S&P Raises Rating on Jr. Sub. Bonds From BB+
--------------------------------------------------------------
Standard & Poor's Rating Services has raised its rating on
Philadelphia, Pa.'s closed senior-lien debt issued by Philadelphia
Gas Works under its 1975 ordinance to 'BBB+ from 'BBB-', its
rating on the subordinate -lien debt issued under its 1998
ordinance to 'BBB+' from 'BBB-', and its rating on PGW's junior
subordinate bonds to 'BBB' from 'BB+'. At the same time, Standard
& Poor's raised its rating on PGW's revenue refunding bonds (1998
general ordinance) series 8D to 'AAA/A-1' from 'AA/A-1', the
rating revision reflecting the application of S&P's joint support
criteria. Standard & Poor's also assigned its 'BBB+' rating to
Philadelphia's gas works revenue bonds (1998 general ordinance),
ninth series, issued by PGW. The outlook is stable.
"The upgrade reflects S&P's opinion of PGW's trend of improving
collections," said Standard & Poor's credit analyst Jeffrey
Panger. Although partially due to above-average temperatures
which make bills more affordable but cannot necessarily be counted
on, the improved collections are also a function of lower and more
stable gas prices, as well as the utility's enhanced billing and
collection procedures, both of which S&P expects will continue
during the next five years.
The upgrade also reflects S&P's view of the Pennsylvania Utility
Commission's recent approval of PGW's base rate case, coupled
with management's expectation that it will not need to seek
another such increase during the next five years; improving
financial metrics; and management's expectation that it will not
add additional debt over in that period, enabling PGW to reduce
leverage.
In addition, the ratings reflect what S&P considers to be PGW's
strong management team, and a credit-supportive rate structure
that insulates margins from weather variability and automatically
passes on gas costs to ratepayers through quarterly adjustments.
The utility is using the ninth series bonds for general
improvements.
PGW is a supplier of last resort to a service area exhibiting what
S&P considers to be weak demographics. S&P believes that this has
contributed to historically low collection of billed revenue and
sensitivity to rates. PGW has approximately 495,000 customers
within the city limits, and the service area covers 129 square
miles. Residential customers make up about 74% of revenue, while
the commercial and industrial sectors are about 24%.
The stable outlook reflects S&P's opinion of improved collection
levels and financial metrics enabling PGW to manage potential
fluctuation in these areas, while providing a cushion should the
city seek to suspend the dividend grant-back.
PICARD MEDICAL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Picard Medical, Inc.
dba Drake Institute
18250 Rosco Boulevard, Suite 325
Northridge, CA 91325
Bankruptcy Case No.: 10-19408
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: M. Jonathan Hayes, Esq.
Law Office of M Jonathan Hayes
9700 Reseda Boulevard, Suite201
Northridge, CA 91324
Tel: (818) 882-5600
Fax: (818) 882-5610
E-mail: jhayes@polarisnet.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/cacb10-19408.pdf
The petition was signed by David Velkoff, MD, president.
PACIFIC AVENUE: Gets Court OK to Hire Grier Furr as Bankr. Counsel
------------------------------------------------------------------
Pacific Avenue, LLC, et al., sought and obtained authorization
from the U.S. Bankruptcy Court for the Western District of North
Carolina to employ Grier Furr & Crisp, PA, as bankruptcy counsel.
Grier Furr will, among other things:
a. take necessary action to protect and preserve the Debtors'
estate, including the prosecution of actions on behalf of
the Debtors, the defense of any actions commenced against
the Debtors, negotiations concerning litigation in which
the Debtors are involved, and the objection to claims
filed against the Debtors' estates;
b. prepare motions, answers, orders, reports and other legal
papers in connection with the administration of the
Debtors' estates;
c. perform any and all other legal services for the Debtors
in connection with the Chapter 11 cases and with the
formulation and implementation of the Debtors' Chapter 11
plan; and
d. advise and assist the Debtors regarding all aspects of the
plan confirmation process, including, but not limited to,
securing the approval of a disclosure statement by the
Court and the confirmation of the plan at the earliest
possible date.
Joseph W. Grier, III, a member at Grier Furr, says that the firm
will be paid based on the hourly rates of its personnel:
Partners $295-$425
Associates $175-$295
Paraprofessionals $140
Joseph W. Grier, III, Partner $425
A. Cotten Wright, Partner $310
Anna S. Gorman, Staff Attorney $295
Kay Buffaloe, Paralegal $140
Mr. Grier assured the Court that Grier Furr is a "disinterested
person," as that term is defined in section 101(14) of the
Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy
Code.
Pacific Avenue, LLC, is a North Carolina limited liability company
whose principal place of business is located in Charlotte, North
Carolina. Together with Pacific Avenue II, LLC, the Company owns
and operates the EpiCentre, a mixed-use commercial development
consisting of approximately 302,000 rentable square feet of office
and retail/entertainment space, plus an underground parking deck,
located at 210 E. Trade St. in the city block surrounded by the
light rail line, Fourth Street, College Street, and Trade Street
in uptown Charlotte, North Carolina.
Pacific Avenue, LLC, filed for Chapter 11 bankruptcy protection on
July 22, 2010 (Bankr. W.D. N.C. Case No. 10-32093). The Company
estimated up to $50,000 in assets and $50,000,001 to $100,000,000
in debts in its bankruptcy petition.
The Company's affiliate, Pacific Avenue II, filed a separate
Chapter 11 petition.
PACIFIC AVENUE: Gets Interim Okay to Use Cash Collateral
--------------------------------------------------------
Pacific Avenue, LLC, sought and obtained interim authorization
from the Hon. George R. Hodges of the U.S. Bankruptcy Court for
the Western District of North Carolina to use the cash collateral
securing their obligation to their prepetition lender.
In May 2005, the Debtors executed one or more promissory notes in
the aggregate principal amount of $62,500,000, as well as a
construction loan agreement in favor of Regions Bank. The
Debtors' mixed-use commercial development EpiCenter serves as
collateral for the Lender. Subsequent amendments to the Loan
Documents resulted in increases of indebtedness such that the
amount due as of the Petition Date is approximately $87,064,076.
Joseph W. Grier, III, at Grier Furr & Crisp, PA, the attorney for
the Debtors, explained that the Debtors need to use the cash
collateral to fund their Chapter 11 case, pay suppliers and other
parties. The Debtors will use the collateral pursuant to a
budget, a copy of which is available for free at:
http://bankrupt.com/misc/PACIFIC_AVENUE_budget.pdf
In exchange for using the cash collateral, the Debtors propose to
grant the Lender senior replacements liens upon (x) all property
owned by the Debtors as of the Petition Date in which the Lender
doesn't hold a valid, enforeceable, perfected and unavoidable lien
or security interest and proceeds therefrom, and (y) all property
which becomes part of each of the Debtors' estates on or after the
Petition Date and the proceeds therefrom. The replacement liens
will be valid, perfected, and enforceable against the replacement
collateral as of the Petition Date without further filing or
recording of any document or instrument or the taking of any
further actions. The Debtors will also grant the Lender an
allowed super-priority administrative claims with priority over
all claims.
As further adequate protection for the use of the cash collateral,
the Debtors will pay on the 15th calendar day of each month, the
interest accrued on the loan for the preceding calendar month,
calculated at the non-default rate under the Loan Agreement. The
Debtors will also deposit into a separate interest-bearing escrow
account, held by Grier, Furr & Crisp, P.A., funds equal in amount
to the line items for real estate taxes (39,167), property
insurance ($9,167) and liability insurance ($333). The Debtors
will make the deposit on the first business day of each calendar
month.
The Debtors promise to provide the Lender monthly reports by the
25th calendar day after the end of the preceding calendar month.
The Court has set a final hearing for August 25, 2010, at
11:00 a.m.
About Pacific Avenue
Pacific Avenue, LLC, is a North Carolina limited liability company
whose principal place of business is located in Charlotte, North
Carolina. Together with Pacific Avenue II, LLC, the Company owns
and operates the EpiCentre, a mixed-use commercial development
consisting of approximately 302,000 rentable square feet of office
and retail/entertainment space, plus an underground parking deck,
located at 210 E. Trade St. in the city block surrounded by the
light rail line, Fourth Street, College Street, and Trade Street
in uptown Charlotte, North Carolina.
Pacific Avenue, LLC, filed for Chapter 11 bankruptcy protection on
July 22, 2010 (Bankr. W.D. N.C. Case No. 10-32093). Joseph W.
Grier, III, Esq., at Grier, Furr & Crisp, P.A., assists the
Company in its restructuring effort. The Company estimated up to
$50,000 in assets and $50,000,001 to $100,000,000 in debts in its
bankruptcy petition.
The Company's affiliate, Pacific Avenue II, filed a separate
Chapter 11 petition.
PACIFIC AVENUE: Section 341(a) Meeting Scheduled for September 1
----------------------------------------------------------------
The U.S. Trustee for the Western District of North Carolina will
convene a meeting of Pacific Avenue, LLC's creditors on
September 1, 2010, at 2:00 p.m. The meeting will be held at U.S.
Bankruptcy Administrators Office, 402 West Trade Street, Suite
205, Charlotte, NC 28202.
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.
About Pacific Avenue
Pacific Avenue, LLC, is a North Carolina limited liability company
whose principal place of business is located in Charlotte, North
Carolina. Together with Pacific Avenue II, LLC, the Company owns
and operates the EpiCentre, a mixed-use commercial development
consisting of approximately 302,000 rentable square feet of office
and retail/entertainment space, plus an underground parking deck,
located at 210 E. Trade St. in the city block surrounded by the
light rail line, Fourth Street, College Street, and Trade Street
in uptown Charlotte, North Carolina.
Pacific Avenue, LLC, filed for Chapter 11 bankruptcy protection on
July 22, 2010 (Bankr. W.D. N.C. Case No. 10-32093). Joseph W.
Grier, III, Esq., at Grier, Furr & Crisp, P.A., assists the
Company in its restructuring effort. The Company estimated up to
$50,000 in assets and $50,000,001 to $100,000,000 in debts in its
bankruptcy petition.
The Company's affiliate, Pacific Avenue II, filed a separate
Chapter 11 petition.
PACIFIC AVENUE: Taps James McElroy as Attorney for Civil Action
---------------------------------------------------------------
Pacific Avenue, LLC, et al., has asked for authorization from the
U.S. Bankruptcy Court for the Western District of North Carolina
to employ James McElroy & Diehl, P.A. (JMD), to represent the
Debtors in investigating and evaluating claims against Regions
Bank and filing civil action.
On July 20, 2010, the Debtors filed a complaint against Regions
Bank in North Carolina Superior Court, Mecklenburg County,
initiating case number 10-CVS-15321 (the Civil Action). In the
Civil Action, the Debtors brought a claim for breach of contract
and requested declaratory and equitable relief. JMD had
represented the Debtors in the Civil Action.
Jared E. Gardner, a member at JMD, says that the firm will be paid
based on the hourly rates of its personnel:
Partners $225-$425
Associates $150-$215
Paraprofessionals $100
Gary S. Hemric, Partner $400
Jared E. Gardner, Partner $350
Mr. Gardner assures the Court that JMD is a "disinterested
person," as that term is defined in section 101(14) of the
Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy
Code.
About Pacific Avenue
Pacific Avenue, LLC, is a North Carolina limited liability company
whose principal place of business is located in Charlotte, North
Carolina. Together with Pacific Avenue II, LLC, the Company owns
and operates the EpiCentre, a mixed-use commercial development
consisting of approximately 302,000 rentable square feet of office
and retail/entertainment space, plus an underground parking deck,
located at 210 E. Trade St. in the city block surrounded by the
light rail line, Fourth Street, College Street, and Trade Street
in uptown Charlotte, North Carolina.
Pacific Avenue, LLC, filed for Chapter 11 bankruptcy protection on
July 22, 2010 (Bankr. W.D. N.C. Case No. 10-32093). Joseph W.
Grier, III, Esq., at Grier, Furr & Crisp, P.A., assists the
Company in its restructuring effort. The Company estimated up to
$50,000 in assets and $50,000,001 to $100,000,000 in debts in its
bankruptcy petition.
The Company's affiliate, Pacific Avenue II, filed a separate
Chapter 11 petition.
PACIFIC LIFESTYLE: Emerges from Chapter 11 Bankruptcy Protection
----------------------------------------------------------------
Wendy Culverwell, staff writer at Business Journal of Portland,
reports that Pacific Lifestyle Homes Inc. has emerged from
bankruptcy protection after a federal bankruptcy judge approved
the company's plan of reorganization, wherein unsecured creditors
will receive between 10% and 40% of what they are owed.
According to Business Journal, the Company settled its debts with
lenders such as KeyBank, Bank of America and West Coast by turning
over unsold lots. Cash collateral agreements helped it to retain
the banking relationships needed to stay in business.
About Pacific Lifestyles
Based in Vancouver, Washington, Pacific Lifestyle Homes, Inc. is a
homebuilder throughout Southwest Washington and Northern Oregon.
The company filed for Chapter 11 relief on Oct. 16, 2008 (Bankr.
W.D. Wash. 08-45328). Brian A. Jennings, Esq., at Perkins Coie
LLP, in Seattle; Jeanette L. Thomas, Esq., and Steven M. Hedberg,
Esq., at Perkins Coie LLP, in Portland, Oregon, represent the
Debtor in the Chapter 11 case. John R. Knapp, Jr., Esq., at
Cairnross & Hempelmann PS, represent the official committee of
unsecured creditors. The Debtor estimated assets and debts of
between $50 million and $100 million in its petition.
PENN TRAFFIC: Tops to Sell 7 Stores Under FTC Deal
--------------------------------------------------
The Federal Trade Commission unveiled on August 4 a settlement
agreement with Tops Markets LLC that protects consumers from the
potential anticompetitive effects of Tops' recent acquisition of
the bankrupt Penn Traffic Company supermarket chain. To settle
FTC charges that the acquisition was anticompetitive in several
areas of New York and Pennsylvania, Tops has agreed to sell seven
Penn Traffic supermarkets to FTC-approved buyers. Because the FTC
adopted a flexible process for reviewing the potential
anticompetitive effects of the acquisition, none of the 79 Penn
Traffic stores was liquidated in the bankruptcy proceeding.
Through Penn Traffic's expedited bankruptcy proceeding, Tops
bought all of Penn Traffic's assets, including 79 supermarkets in
New York, Pennsylvania, Vermont, and New Hampshire, for
approximately $85 million. The acquisition, however, raised
competition issues in several areas of New York and Pennsylvania.
Because a full FTC investigation before the deal was completed
could have led the bankruptcy court to liquidate the Penn Traffic
supermarket assets, the FTC staff reached an agreement with Tops
that allowed the transaction to close immediately, while allowing
staff to complete its review after the deal was completed. At the
same time, Tops agreed to keep all the newly acquired Penn Traffic
stores open and subsequently to sell any stores that posed
competitive concerns for the FTC.
Tops is a New York-based company, with its principal place of
business in Williamsville, New York. Before the acquisition, it
owned and operated 71 supermarkets in New York and Pennsylvania,
all under the Tops name. Penn Traffic is a Delaware company
headquartered in Syracuse, New York. Before the acquisition, it
operated 70 supermarkets in New York, Pennsylvania, Vermont, and
New Hampshire under the Bi-Lo, P&C Foods, and Quality Markets
banners.
Through its investigation, the FTC staff found five local areas
where competition was an issue: Bath, Cortland, Ithaca, and
Lockport, New York; and Sayre, Pennsylvania. In these markets,
absent a remedy, staff found that Tops' acquisition of Penn
Traffic would be anticompetitive and likely would lead to higher
grocery prices for consumers. In each market there are no more
than three supermarkets within a 10- to 15-mile area. Consistent
with past investigations, staff concluded that other chains such
as Aldi's, buying clubs, and other food stores would not constrain
prices after the merger was completed.
Further, in many of these geographic areas, staff found that new
competitors were unlikely to enter the market quickly enough to
prevent the acquisition's anticompetitive effects. And, in those
markets where entry might occur in the future, staff found that
despite the new competition, the markets would still be highly
concentrated and the transaction, therefore, anticompetitive.
The settlement order requires Tops to sell seven Penn Traffic
supermarkets to an FTC-approved buyer within three months. It also
requires Tops and its parent company Holdco LLC to do everything
necessary to facilitate the sale and operation of the seven
supermarkets in Bath, Cortland, Ithaca (two stores), and Lockport,
New York; and Sayre, Pennsylvania (two stores).
The FTC vote approving the complaint and proposed settlement order
was 5-0. The order will be subject to public comment for 30 days,
until September 7, 2010, after which the Commission will decide
whether to make it final. Comments should be sent to: FTC, Office
of the Secretary, 600 Pennsylvania Avenue, N.W., Washington, DC
20580. To submit a comment electronically, please click on
https://ftcpublic.commentworks.com/ftc/penntraffic
About Penn Traffic
Syracuse, New York-based The Penn Traffic Company -- dba P&C
Foods, Bi-Lo Foods, and Quality Markets -- operates supermarkets
in Pennsylvania, upstate New York, Vermont, and New Hampshire
under the Bilo, P&C and Quality trade names. The Company filed
for Chapter 11 bankruptcy protection on November 18, 2009 (Bankr.
D. Del. Case No. 09-14078). Ann C. Cordo, Esq., and Gregory W.
Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell assist the
Company in its restructuring effort. Donlin Recano is the
Company's claims agent. The Company listed $150,347,730 in assets
and $136,874,394 in liabilities as of May 4, 2009.
The Company's affiliates also filed separate Chapter 11 petitions
-- Sunrise Properties, Inc.; Pennway Express, Inc.; Penny Curtiss
Baking Company, Inc.; Big M Supermarkets, Inc.; Commander Foods
Inc.; P and C Food Markets, Inc. of Vermont; and P.T. Development,
LLC.
Following a bankruptcy court-sanctioned auction, Tops Markets LLC
purchased almost all of Penn Traffic's stores as a going concern
by paying $85 million cash. The sale was structured so Penn
Traffic avoided a $72 million claim for pension plan termination
and a $27 million claim by the principal supplier.
PILGRIM'S PRIDE: Has $12.6-Mil. Loss Six Months After Emergence
---------------------------------------------------------------
Pilgrim's Pride Corporation reported net income attributable to
the Company of $32.918 million for the three months ended June 27,
2010, from net income of $53.239 million for the same period in
2009.
Pilgrim's Pride reported a net loss attributable to the Company of
$12.629 million for the six months ended June 27, 2010, from a net
loss of $5.526 million for the same period in 2009.
Net sales were $1.707 billion for the second quarter of 2010
from $1.776 billion for the same period in 2009. Net sales
were $3.350 billion for the first six months of 2010 from
$3.474 billion for the same period in 2009.
During the quarter ended June 27, 2010, the Company announced that
it planned to reduce corporate and administrative positions across
the organization under the second phase of its integration with
JBS USA. The total planned reduction in workforce under this
second phase of integration is approximately 241 positions. As of
June 27, 2010, 102 positions have been eliminated. The Company
anticipates that it will recognize severance costs of
approximately $2.1 million related to the action as administrative
restructuring charges during the three months ended September 26,
2010.
A full-text copy of the Company's Form 10-Q is available at no
charge at http://ResearchArchives.com/t/s?67a6
About Pilgrim's Pride
Pilgrim's Pride Corporation -- http://www.pilgrimspride.com-- is
one of the largest chicken companies in the United States, Mexico
and Puerto Rico. The Company's fresh chicken retail line is sold
throughout the US, throughout Puerto Rico, and in the northern and
central regions of Mexico. The Company exports commodity chicken
products to 90 countries. The Company operates feed mills,
hatcheries, processing plants and distribution centers in 15 U.S.
states, Puerto Rico and Mexico.
Pilgrim's Pride and six of its subsidiaries filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code on
December 1, 2008 (Bankr. N.D. Tex. Lead Case No. 08-45664). The
Company's subsidiaries in Mexico and certain subsidiaries in the
United States were not included in the filing and operated outside
of the Chapter 11 process.
Attorneys at Weil, Gotshal & Manges LLP served as bankruptcy
counsel. Lazard Freres & Co., LLC, was the Company's investment
bankers. Kurtzman Carson Consulting LLC served as claims and
notice agent. Kelly Hart and Brown Rudnick represented the
official equity committee. Attorneys at Andrews Kurth LLP
represented the official committee of unsecured creditors.
On December 10, 2009, the Bankruptcy Court confirmed the Joint
Plan of Reorganization filed by the Debtors. The Plan was
premised on the sale of the business to JBS SA. Under the Plan,
creditors are paid in full. Existing owners retained 34% of the
equity. The Company emerged from its Chapter 11 bankruptcy
proceedings on December 28, 2009.
PITNEY BOWES: Stockholders' Deficit Widens to $120.6MM at June 30
-----------------------------------------------------------------
Pitney Bowes Inc. reported total assets of $8,277,067,000 against
total liabilities of $8,101,378,000 and non-controlling interests
(Preferred stockholders' equity in subsidiaries) of $296,370,000,
resulting in stockholders' deficit of $120,681,000, as of June 30,
2010. The stockholder's deficit widened from $22,911,000 as of
March 31, 2010.
Pitney Bowes reported net income of $61,381,000 for the three
months ended June 30, 2010, from net income of $117,262,000 for
the same period in 2009. For the first half of 2010, the Company
reported net income of $140,420,000, down from net income of
$221,664,000 for the same period in 2009.
Total revenue was $1,297,237,000 for the June 2010 quarter from
$1,378,462,000 for the 2009 quarter -- a decline of 6%. Total
revenue was $2,645,470,000 for the first half of 2010, from
$2,758,046,000 for the same period in 2009.
Chairman, President and CEO Murray D. Martin said, "We continue to
implement a broad range of actions to manage through a prolonged
period of global economic weakness. After seeing some early signs
of stabilization among our small to mid-sized customer base in the
first quarter, we experienced a decline in activity levels in the
latter part of the second quarter. Our actions are positioning the
company to deliver long-term value to customers and shareholders,
despite the near-term impact of weaker demand."
Mr. Martin added, "We continued to generate strong free cash flow
in the quarter, and are raising our free cash flow guidance for
the year. In addition, our Strategic Transformation program is
already generating meaningful results and contributed more than
$20 million in net benefits during the quarter. The program is on
track to achieve its objectives of improving our processes and
reducing our cost of business while allowing us to invest in
attractive growth opportunities."
The company now does not expect the business environment to
improve as much as it had previously expected in the second half
of the year.
A full-text copy of the Company's earnings release is available at
no charge at http://ResearchArchives.com/t/s?67b2
Based in Stamford, Conn., Pitney Bowes Inc. (NYSE:PBI) --
http://www.pitneybowes.com/-- is a $5.6 billion company that
employs 33,000 worldwide and provides software, hardware and
services that integrate physical and digital communications
channels.
PRIDE INTERNATIONAL: Fitch Assigns 'BB+' Rating on Senior Offering
------------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to Pride International
Inc.'s benchmark senior unsecured debt offering. Fitch maintains
these debt ratings on Pride:
-- IDR at 'BB+';
-- Senior unsecured credit facility at 'BB+';
-- Senior unsecured notes at 'BB+'.
The Rating Outlook is Stable.
Proceeds from the debt offering are expected to be used to finance
future capital expenditures associated with the company's three
remaining deepwater newbuilds under construction. While the debt
offering is expected to be leveraging for the company, it remains
consistent with Fitch's prior expectations that the company would
require additional debt financing as it completed construction of
its deepwater newbuilds. The proceeds from the offering combined
with the additional liquidity provided by the company's upsized
revolver (borrowing capacity increased to $720 million from
$320 million) should allow the company to complete the existing
newbuilds and maintain solid liquidity despite the weakening
market conditions for offshore drillers.
The ratings continue to reflect Pride's improved balance sheet,
improving fleet profile, and the company's $6.5 billion contract
backlog (at June 30, 2010) providing significant cash flow
protections for the company in 2010 and beyond. Offsetting
factors include continued high capital expenditures as the company
completes work on its three remaining ultra-deepwater newbuild
drillships, weak market conditions for offshore drillers, and the
increased regulatory uncertainty created by the BP-operated
Macondo oil spill.
Future rating upgrades will in part be determined by the length
and depth of the anticipated downturn in market conditions for
offshore drillers. Pride's ability to manage through the current
newbuild program without experiencing delays in getting rigs out
of the shipyard and on contract is critical to its future credit
profile. The company's ability to minimize the amount of external
financing required for existing newbuild capital expenditures
combined with a willingness to proceed extremely cautiously with
regard to future expansion plans will also be important to
determining future rating upgrades. In addition, Fitch will
monitor the company's ability to execute on the existing contract
backlog. Despite the weaker near-term expectations for Pride's
credit profile, the company continues to execute on existing
newbuilds, which will benefit the long-term credit profile of the
company.
Fitch remains concerned about the potential for negative longer-
term market conditions for deepwater drilling rigs as a result of
the moratorium and the potential for increased liabilities
associated with accidents with a deepwater well. Negative rating
action could be considered if the drilling moratorium in the U.S.
Gulf of Mexico extends substantially beyond a six- to nine-month
period, if additional international markets enact drilling
moratoriums, or if drilling/regulatory conditions in the U.S. GoM
result in substantial longer-term negative conditions for drillers
or upstream companies operating in this market. Also, while
management has yet to pursue additional acquisition activity,
Fitch anticipates Pride will begin to execute on its growth
objectives once market conditions stabilize or the company's
newbuilds are complete.
It is important to note that a key risk for the sector remains
falling oil prices. Oil prices have rallied from the early 2009
lows and currently trade significantly above Fitch's long-term
expectations for the commodity ($60/barrel). Based on the current
global economic environment and the resulting supply/demand
fundamentals, Fitch believes prices have room to pull back from
current levels which could result in reduced oil drilling activity
and further pressure the outlook for the drilling and service
sector. Additionally, natural gas remains susceptible to lower
prices in 2010 as a result of further weakening in economic
conditions, mild winter weather or upon signs of additional supply
strength. Fitch will continue to monitor both individual company
performance and industry conditions for rating implications should
either oil or natural gas prices fall significantly below Fitch's
long-term price expectations.
Pride's credit metrics are expected to continue weakening in
2010 before improving in 2011 and 2012 upon completion of the
company's newbuild rigs. Pro forma for the current proposed debt
offering, debt levels are expected to rise from $1.2 billion to
$1.8 billion. Debt-to-EBITDA will rise from 2.7 times for the
latest 12-month (LTM) period ending June 30, 2010 to approximately
4.0x.
For the LTM period ending June 30, 2010, Pride generated
EBITDA of $443 million and finished the period with debt of
$1,177.3 million. As a result, debt-to-EBITDA finished the period
at 2.7x with interest coverage of 4.8x. Free cash flow for the
period was negative $712.2 million; however, cash balances
remained robust ending the period at $311 million. Funding for
the company's three remaining newbuild drillships currently under
construction is expected to keep capital expenditures high in 2010
and 2011 and result in an estimated capex program of approximately
$1.1 billion during 2010 composed of $727 million related to the
newbuilds and the remaining related to maintaining the existing
fleet, capitalized interest, and increasing inventories of spare
parts. A total of approximately $1.1 billion of capital
expenditures remains to be spent on the three remaining newbuild
drillships. Approximately $300 million of this total will be
spent during the second half of 2010 with the remaining
$780 million spent in 2011.
Liquidity remains strong at Pride following the current proposed
debt offering, the recently upsized credit facility and remaining
cash balances. FCF levels are expected to remain negative in 2010
and 2011 before turning positive after all four newbuilds begin
working in 2012 (assuming no additional newbuilds). Pride
maintains liquidity from cash and equivalents ($311 million at
June 30, 2010), its $720 million credit facility (no borrowings at
June 30, 2010) and operating cash flows. The company's next
maturity is not until 2014 when $500 million of 7.375% senior
notes mature. Pride's MARAD notes amortize at approximately
$30 million per year until their maturity in 2016 and the
company's new credit facility matures in July 2013.
Key covenants are primarily associated with the senior unsecured
credit facility and include maximum debt to tangible
capitalization (50% covenant threshold), minimum LTM EBITDA to
interest coverage (2.5x covenant level with fall-away provisions
once the corporate credit rating reaches 'Baa1/BBB-' by both
Moody's and S&P), restrictions on liens, asset sales and change of
control protections (subject to Pride maintaining an investment
grade credit rating). The 7.375% senior notes due 2014 also have
change of control protections (if the change of control is
associated with a ratings decline). It should be noted, however,
that change of control protections for the 8.5% senior unsecured
bondholders are expected to fall away with the repayment of the
7.375% senior notes. The notes currently being offered by Pride
are anticipated to have similar change of control protections (if
the change of control is associated with a ratings decline).
Despite expectations of rising debt levels and weaker credit
metrics during 2010/2011, adequate flexibility remains under all
covenants.
Pride is an offshore drilling contractor and operates a diverse
fleet of primarily offshore rigs. The fleet includes three ultra-
deepwater drillships, three newbuild ultra-deepwater drillships
currently under construction, 12 semisubmersible rigs, seven jack-
up rigs and two managed rigs.
PRIDE INTERNATIONAL: Moody's Assigns 'Ba1' Rating on Senior Notes
-----------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to Pride
International, Inc.'s proposed offering of senior notes. Moody's
also affirmed Pride's Ba1 Corporate Family Rating and the Ba1
ratings on its existing senior notes outstanding. The Speculative
Grade Liquidity Rating was raised to SGL-2 from SGL-3. The
proceeds from the proposed offering will be used to fund committed
capital expenditures. The rating outlook is positive.
"This debt offering should provide the funds necessary for Pride
to complete the construction of the three remaining drillships and
strengthen its liquidity," commented Pete Speer, Moody's Vice
President.
The additional debt will increase Pride's Debt/EBITDA to the 3-4x
range by the end of the year. The positive outlook reflects
Moody's expectation that the commencement of earnings from Pride's
three contracted drillships will generate sufficient earnings to
improve the company's leverage metrics to ranges consistent with a
Baa3 rating. Pride's ratings could be upgraded once the first
drillship begins generating full revenues under its existing
contract and Moody's outlook for the company's earnings and cash
flows indicates that Pride can achieve and sustain Debt/EBITDA
below 3x. An important consideration for establishing that
earnings outlook will be more clarity on the regulatory changes
emanating from the Deepwater Horizon disaster and its effects on
the US Gulf of Mexico and other global drilling markets.
The outlook could be returned to stable if there are substantial
delays in the new drillships commencing operations under their
contracts with BP plc due to matters arising in the rigs
acceptance testing or other issues caused by regulatory changes
connected to the Deepwater Horizon disaster and consequent oil
spill. Such delays, regulatory changes in other global offshore
markets or weaker than anticipated earnings on the existing fleet
could result in additional funding shortfalls to complete the
drillship construction and pressure the outlook.
Pride announced amendments to its revolving credit facility that
increased the committed capacity to $720 million from $320 million
and extended the maturity to July 2013. The proposed debt
offering and increased revolver capacity improves Pride's SGL
Rating to SGL-2 from SGL-3. As of June 30, 2010, the company had
$311 million of cash and full availability on its revolving credit
facility. The cash proceeds from the offering combined with
existing cash balances and forecasted cash flow is expected to
cover most of the company's planned capital expenditures and
working capital needs through the end of 2011. Moody's expect the
company to maintain good headroom under its covenants and all but
two of its rigs are unencumbered.
The Ba1 senior unsecured notes rating reflects both the overall
probability of default of Pride, to which Moody's assigns a PDR of
Ba1, and a loss given default of LGD 4 (54% changed from 52%).
The company's senior notes and revolving credit facility are
unsecured and have no subsidiary guarantees. Since substantially
all of Pride's debt is senior unsecured the notes are rated Ba1,
consistent with the CFR. As of June 30, 2010, the company also
had approximately $180 million of MARAD notes outstanding at a
subsidiary that are secured by two deepwater rigs. This debt is
non-recourse to Pride and its other subsidiaries and has therefore
been excluded from Moody's Loss Given Default analysis in
accordance with Moody's LGD Methodology.
The last rating action was on June 14, 2010, when Pride's Ba1 CFR
was affirmed and the SGL Rating was lowered to SGL-3.
Pride International, Inc., is an offshore drilling contractor
headquartered in Houston, Texas.
RAZMIK SAFARIANS: Case Summary & 18 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Razmik Safarians
422 N Naomi Street
Burbank, CA 91505
Bankruptcy Case No.: 10-41705
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Samuel L. Bufford
Debtor's Counsel: Majid Foroozandeh, Esq.
9891 Irvine Center Drive, Suite 130
Irvine, CA 92618
Tel: (949) 336-8505
Fax: (208) 485-5959
E-mail: majidf@foroozandeh-law.com
Scheduled Assets: $2,860,753
Scheduled Debts: $5,181,238
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/cacb10-41705.pdf
The petition was signed by the Debtor.
REALD INC: June 25 Balance Sheet Upside-Down by $35.6-Mil.
----------------------------------------------------------
RealD Inc. reported total assets of $178,524,000 against total
current liabilities of $123,501,000, deferred revenue, net of
current portion of $13,902,000, virtual print fee liability and
customer deposits of $4,172,000, long-term debt, net of current
portion of $1,479,000, deferred tax liability of $4,413,000, and
Series C mandatorily redeemable convertible preferred stock of
$66,669,000, and non-controlling interest of $2,306,000; resulting
in total deficit of $35,612,000.
The Company reported net income attributable to its common
stockholders of $2,946,000 for the three months ended June 25,
2010, from a net loss of $9,844,000 for the three months ended
June 26, 2009. Total revenue was $64,520,000 for the June 25
quarter from $25,564,000 for the same period a year ago.
A full-text copy of the Company's Form 10-Q report is available at
no charge at http://ResearchArchives.com/t/s?67a8
Based in Beverly Hills, Calif., RealD Inc., including its
subsidiaries, is a global licensor of stereoscopic 3D
technologies.
RICHARD GETTY: Section 341(a) Meeting Scheduled for September 1
---------------------------------------------------------------
The U.S. Trustee for Region 18 will convene a meeting of Richard
K. Getty's creditors on September 1, 2010, at 1:30 p.m. The
meeting will be held at Courtroom J, Union Station, 1717 Pacific
Avenue, Tacoma, WA 98402.
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.
Tacoma, Washington-based Richard K. Getty filed for Chapter 11
bankruptcy protection on July 26, 2010 (Bankr. W.D. Wash. Case No.
10-46061). James L. Day, Esq., Bush Strout & Kornfeld, assists
the Company in its restructuring effort. The Company estimated
its assets and debts at $50,000,001 to $100,000,000.
ROBIN MILLER: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Robin A. Miller
516 Gatewood Drive
Cherry Hill, NJ 08003
Bankruptcy Case No.: 10-33593
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
District of New Jersey (Camden)
Judge: Gloria M. Burns
Debtor's Counsel: Jeffrey B. Saper, Esq.
Law Offices of Jeffrey B. Saper, PC
The Lexington Building
180 Tuckerton Road
Medford, NJ 08055
Tel: (856) 985-9770
E-mail: jbsaperlaw@comcast.net
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.
ROCK HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service assigned a B2 Corporate Family Rating to
Rock Holdings Inc. Concurrently, Moody's assigned a B3 senior
secured rating to Rock Holdings' proposed $300 million senior
secured notes with a stable outlook. This is a first time rating.
Rock Holdings' B2 CFR reflects the company's strong cash flow
generation and profitability, as well as its origination
technology, which allows for tailored customer inter-action while
maintaining a "low cost to originate" model on its residential
mortgage loan offerings. The company also has strong franchise
position in the highly competitive residential mortgage
origination market, as evidenced by its longstanding history and
recent ability to capture market share.
Offsetting these positive attributes is the company's modest
capital levels post the transaction. The company plans to use the
debt proceeds to pay dividends to shareholders, which may result
in negative tangible net worth upon consummation.
In addition, Rock Holdings' funding model is reliant on short-term
warehouse and repo facility funding similar to most other
residential mortgage companies. While the funding model makes the
company susceptible to periods of illiquidity, Moody's notes that
the company can control origination levels depending on
availability of funding and that the proposed $300 million, five-
year Senior Note issuance extends Rock Holdings' debt maturity
profile.
The B3 senior secured debt rating reflects the fact that the notes
will be secured by equity of two of the company's subsidiaries,
Quicken Loans Inc. and Title Source, Inc. Moody's considers equity
security to be equivalent to unsecured debt.
Rock Holdings Inc. is a non-operating holding company with three
subsidiaries, Quicken Loans Inc., Title Source, Inc., Rock Quizzle
Holdings LLC and In-House Realty LLC engaged in a variety of
mortgage-related services.
ROCK HOLDINGS: S&P Assigns Counterparty Credit Rating at 'B'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned a 'B'
counterparty credit rating, with a stable outlook, to Rock
Holdings Inc., holding company for Internet mortgage originator
Quicken Loans Inc. (not rated).
At the same time, S&P assigned a 'B' issue-level rating (the same
as the corporate credit rating on the company) to the company's
proposed issuance of $300 million in senior secured notes. The
recovery rating of '3' indicates S&P's expectation of meaningful
(50% to 70%) recovery of principal in the event of a payment
default.
"S&P's ratings on Rock Holdings reflect the weakened capital
position that will result from the company's proposed debt
issuance and shareholder dividend, and the lack of revenue
diversification at its operating subsidiaries," said Standard &
Poor's credit analyst Brendan Browne.
The company's structure as a holding company, reliant solely on
subsidiary dividends to meet its debt service expenses, also
limits the rating.
However, the position of its lead subsidiary as the largest retail
originator of residential mortgages through the Internet, the
efficiencies of its Web-based platform, and its focus on
conforming mortgages are positive ratings factors.
The stable outlook assumes that Rock Holdings' origination volume
and earnings fall only moderately from the robust levels of 2009
and first-half 2010. The rating could come under pressure with a
sharp drop in originations or earnings.
S&P could raise the rating if the company's capital position
improves significantly.
RONY TOMASINO: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Rony Tomasino
14639 Round Valley Road
Sherman Oaks, CA 91403
Bankruptcy Case No.: 10-19332
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Alla Tenina, Esq.
Law Offices of Alla Tenina
6350 Laurel Canyon Boulevard, Suite 307
North Hollywood, CA 91606
Tel: (213) 596-0265
Fax: (818) 301-2046
E-mail: sashavk_1@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $0 to $50,000
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by the Debtor.
About Salander-O'Reilly
Established in 1976, New York-based Salander-O'Reilly Galleries
LLC -- http://www.salander.com/-- exhibited and managed fine art
from renaissance to contemporary. On Nov. 1, 2007, three
creditors filed an involuntary chapter 7 petition against the
gallery (Bankr. S.D.N.Y. Case No. 07-13476). The petitioners,
Carol F. Cohen of Two Swans Farm, Cavallon Family LP, and Richard
Ellenberg, disclosed total claims of more than $5 million. Amos
Alter, Esq., at Troutman Sanders LLP and John Koegel, Esq., at The
Koegel Group LLP represent the petitioners.
On Nov. 9, 2007, the Debtor's case was converted to a chapter 11
proceeding (Bankr. S.D.N.Y. Case No. 07-30005). Alan D. Halperin,
Esq., at Halperin Battaglia Raicht, LLP, represents the gallery.
Salander-O'Reilly Galleries was owned by Lawrence B. Salander and
his wife, Julie D. Salander, of Millbrook, New York. The couple
also had membership interests in galleries including non-debtor
entities, Renaissance Art Investors and Salander Decorative Arts
LLC. The couple filed for chapter 11 protection on Nov. 2, 2007
(Bankr. S.D.N.Y. Case No. 07-36735). Douglas E. Spelfogel, Esq.,
and Richard J. Bernard, Esq. at Baker & Hostetler LLP and Susan P.
Persichilli, Esq., at Buchanan Ingersoll PC represent the Debtors
in their restructuring efforts. When they filed for bankruptcy,
Mr. and Mrs. Salander listed assets and debts between $50 million
and $100 million.
Prior to bankruptcy, Mr. Salander resigned as Salander-O'Reilly
Galleries' manager and turned over the control to Triax Capital
Advisors LLC, an independent turnaround firm. The U.S. Bankruptcy
Judge in Poughkeepsie, New York, converted the Chapter 11 case of
Salander and his wife to a liquidation in Chapter 7 in May 2008,
automatically bringing the appointment of a trustee.
SCOTT NELSON: Case Summary & 6 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Scott James Nelson
1045 Gaviota #C
Laguna Beach, CA 92651
Bankruptcy Case No.: 10-20699
Chapter 11 Petition Date: August 1, 2010
Court: U.S. Bankruptcy Court
Central District of California (Santa Ana)
Judge: Robert N. Kwan
Debtor's Counsel: Carlos F. Negrete, Esq.
Law Offices of Carlos F. Negrete
27422 Calle Arroyo
San Juan Capistrano, CA 92675-2747
Tel: (949) 493-8115
Fax: (949) 493-8170
E-mail: cnegrete1@hotmail.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 6 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/cacb10-20699.pdf
The petition was signed by the Debtor.
SENSATA TECHNOLOGIES: S&P Raises Corporate Credit Rating to 'B+'
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on sensors
and controls manufacturer Sensata Technologies B.V., including the
corporate credit rating, to 'B+' from 'B'. The outlook is
positive.
"The rating action reflects continued improvements in Sensata's
operating performance, which have resulted in better credit
measures," said Standard & Poor's credit analyst Dan Picciotto.
"The upgrade also reflects the company's public statements
regarding lower targeted net leverage, implying there may be
further improvement in its credit measures. S&P believes business
trends remain favorable, but are likely to moderate from the
firm's recent high growth levels."
Still, S&P expects Sensata to continue generating further revenue
organically as its products are increasingly used in end-market
applications. Further, S&P expects the company's operating
margin, before depreciation and amortization, will remain close to
30%. This may allow Sensata to sustain a funds from operations-
to-adjusted debt ratio of more than 15% (versus the current 12%),
a level S&P considers appropriate for the higher rating.
The ratings on Sensata reflect its aggressive financial risk
profile and fair business risk profile. Its high debt level more
than offsets its good geographic diversification, solid operating
margins, and decent operating prospects (if economic conditions do
not deteriorate markedly).
Sensata, formerly a division of Texas Instruments Inc., consists
of two business units that manufacture highly engineered
electronic sensors and controls, generating more than $1.4 billion
of revenues. The company sells its products in mature, cyclical
end-markets that generally grow at GDP-like rates. The company
has significant exposure to the volatile global automotive market,
which accounts for more than half of sales. However, it does
benefit from its good market position, since it's either the sole
or primary supplier for most of its customers.
The outlook is positive. S&P could raise the ratings if the
company's adjusted debt to EBITDA trends to less than 4x and S&P
think it will likely maintain an improved funds from operations-
to-total adjusted debt of at least 15% (higher than the current
12%). For instance, if the company generates more than $1.5
billion in revenue and maintains an operating margin (before D&A)
of close to 30%, and S&P anticipates further growth without major
increases in debt, S&P could raise the rating.
"If S&P see indications that the company will pursue a more-
aggressive financial policy, S&P could lower the ratings or revise
the outlook to stable. S&P could revise the outlook to stable if
market conditions become unfavorable and limit further
improvements in credit measures, for example, if S&P believes the
firm's adjusted FFO to debt will remain at 15% or less," Mr.
Picciotto added.
SIDING DOCTOR: Case Summary & 9 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: The Siding Doctor, Inc.
1880 West Oak Parkway, Suite 214
Marietta, GA 30062
Bankruptcy Case No.: 10-82015
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: Paul Reece Marr, Esq.
300 Galleria Parkway, N.W., Suite 960
Atlanta, GA 30339
Tel: (770) 984-2255
Fax: (770) 984-0044
E-mail: pmarr@mindspring.com
Estimated Assets: $50,001 to $100,000
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/ganb10-82015.pdf
The petition was signed by Jeffrey T. Shea, chief executive
officer.
SIGMA INDUSTRIES: Files for Bankruptcy Reorganization in Canada
---------------------------------------------------------------
Canadian Plastics reports that Sigma Industries Inc. and three of
its affiliates -- Rene Composite Materials Inc. and Transcam
Composites Inc. -- filed for bankruptcy reorganization in Superior
Court of Quebec, Canada, saying the filing will not affect on its
ordinary course of business. The Company obtained last year $5
million in term loan financing from Investissement Quebec to help
the company make it through the economic crisi. Sigma Plastics
makes composite and metal components for heavy truck, and train.
SKY RANCH: Pure Cycle to Acquire Property for $7MM Cash
-------------------------------------------------------
Pure Cycle Corporation has entered into an agreement which will
allow it to acquire the 931-acre Sky Ranch Property for $7.0
million in cash. The transaction is expected to close within 60
days; however, we can terminate the agreement for any reason
during this 60 day period if we so chose.
In 2003 and 2004, we entered into two water service agreements and
a groundwater purchase agreement with the developer of Sky Ranch.
However, the developer entered into bankruptcy in 2007, which
resulted in uncertainty regarding these agreements. Mark Harding,
the President and CEO of Pure Cycle, stated that, "By acquiring
the property we remove the uncertainties created by the bankruptcy
and ensure that we are the water provider to the property once it
is developed." Mr. Harding further commented that, "In addition
to solidifying our existing water service agreements, this
acquisition expands our opportunity to include wastewater service
to the property, allows us to complete our acquisition of the
water rights at Sky Ranch, and facilitates our use of highly
treated wastewater effluent, distributed through a dedicated
reclaimed water distribution system, to meet outdoor irrigation
demands. The inclusion of wastewater will enable us to implement
our environmentally sensitive water recycling operations reusing
highly treated effluent water supplies distributed through a
dedicated water distribution system to provide water for outdoor
irrigation demands. Protecting, using and reusing Colorado's
valuable water resources, demonstrates our commitment to
environmentally responsible stewardship over this scarce and
limited resource." As the owner of both the property and the
water rights which will be used to provide services to the
property when it is developed, we have positioned ourselves to
offer developers an integrated, cost effective and ready for
development package, and thus Sky Ranch represents an important
strategic acquisition for us. We believe we have secured private
financing for this acquisition. The terms of such financing will
be announced once finalized.
About Sky Ranch
Sky Ranch is located in Arapahoe County, Colorado directly
adjacent to I-70, approximately 16 miles east of Downtown Denver,
4 miles north of the Lowry Range, and 4 miles south of Denver
International Airport. Sky Ranch has been zoned for residential,
commercial and retail uses and may include up to 4,850 single
family equivalent units. Current development plans anticipate
entry level housing (houses costing less than $300,000). The
water and wastewater utilities at Sky Ranch are anticipated to
generate approximately $132.8 million in tap fee revenue and
approximately $6 million annually in service fee revenue upon
completion of development (based on current tap fees and usage
charges).
About Pure Cycle
Pure Cycle owns water assets in multiple river basins in the State
of Colorado as well as in certain aquifers in the Denver
metropolitan area. Pure Cycle provides water and wastewater
services to customers located in the Denver metropolitan area
including the design, construction, operation and maintenance of
water and wastewater systems.
STEPHANIE OTT: Case Summary & 16 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Stephanie Ott
dba Mimosa Inn
P.O. Box 279
Lynn, NC 28750
Bankruptcy Case No.: 10-40646
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Western District of North Carolina (Shelby)
Judge: George R. Hodges
Debtor's Counsel: R. Kelly Calloway, Jr., Esq.
Calloway & Associates Law Firm
318 N. Main Street, Suite 9
Hendersonville, NC 28792
Tel: (828) 696-8660
Fax: (828) 696-8683
E-mail: rkelly@callowaylawfirm.com
Scheduled Assets: $1,063,512
Scheduled Debts: $405,615
A copy of the Debtor's list of 16 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/ncwb10-40646.pdf
The petition was signed by the Debtor.
SUMNER REGIONAL: Bondholder Compromise Hearing Set for Aug. 18
--------------------------------------------------------------
Sumner Regional Health Systems, Inc., sought chapter 11 protection
to preserve its ongoing health care operations throughout several
counties in Tennessee by conducting an orderly sale pursuant to
section 363 of the United States Bankruptcy Code of substantially
all of the Debtors' assets as a going concern. Since the
commencement of the Debtors' Chapter 11 cases, however, Sumner
County, Tennessee, has asserted various interests in and rights
with respect to the Debtors' assets, including that upon a sale of
substantially all of the Debtors' assets, it is entitled to
ownership thereof or the proceeds therefrom. The Debtors, along
with the other major constituencies in the Debtors' Chapter 11
cases, including Wells Fargo Bank National Association, not
individually but as successor master trustee and successor trustee
for various bondholders and the Official Committee of Unsecured
Creditors, have disputed these alleged interests, and the parties
have engaged in substantial litigation over the County's
assertions at virtually every stage of the proceedings before the
Bankruptcy Court. These disputes have delayed the closing of the
Sale and have created uncertainty as to the Debtors' ability to
transfer clean title thereto and to dispose of the proceeds from
the Sale. In fact, notwithstanding the order of this Court
permitting the Debtors to consummate the Sale free and clear of
the County's alleged interests, because that order has been
appealed, the Debtors are unable to obtain title insurance without
an exception for the County's alleged claims and interests.
Obtaining that insurance is a condition precedent to the closing
of the Sale, and one that LifePoint Acquisition Corp., is
unwilling to waive. Thus, the County's appeal has served as an
effective stay of such closing pending a final resolution of all
appeals or a global resolution. Further delay and uncertainty not
only puts the Sale at risk, but threatens the Debtors' viability,
and could result in the ultimate shut-down of the Debtors'
operations.
Accordingly, in order to settle the County Disputes before
irreversible harm is done to the Debtors' prospects for long-term
survival, and to secure the other benefits set forth herein, the
Debtors negotiated and entered into a Settlement Agreement, by and
among the Debtors, the County, the Bond Trustee, and the
Committee, dated as of July 30, 2010. The Settlement Agreement
allows the Sale to go forward, the Debtors' hospitals to remain
open ensuring continued health care for the citizens of the
County, as well as citizens of Trousdale and Smith Counties,
provides for the immediate distribution of certain of the proceeds
thereof, resulting in hundreds of thousands of dollars of interest
savings, and preserves certain of the proceeds for future
distribution subject to the Committee's challenge rights and
resolution of certain claims against the estate, including,
without limitation, cure amounts.
Accordingly, the Debtors ask the Bankruptcy Court, pursuant to
Rule 9019 of the Federal Rules of Bankruptcy Procedures, to allow
them to enter into and the Settlement Agreement and perform their
obligations under that agreement.
Upon entry of the Settlement Order, the Bond Trustee on behalf of
the Bondholders shall have an allowed secured claim against the
Debtors in the amount of $155,021,251.65 less any such amounts
that may have been paid as principal payments on the 2008 Bonds
from and after the Petition. The Bond Trustee shall apply the
Indenture Held Funds in reduction of the Bond Trustee Claim.
Immediately upon closing of the Sale, the proceeds thereof will be
paid out as follows: (a) $15 million to the County (the "County
Settlement Payment"), in satisfaction of all claims and interests
of any kind or nature against the Debtors, the Debtors assets, the
Bond Trustee, the Bondholders or the Purchasers, except for a
claim to any residual proceeds after all other claims against the
Debtors are paid in full; (b) $15 million to the Debtors, subject
to the Committee's right to challenge up to $6.5 million of such
amount as not subject to the Bond Trustee's liens and security
interests, with any portion of such $6.5 million not so
successfully challenged by the Committee (or to which the
Committee agrees may be paid to the Bond Trustee) to be paid to
the Bond Trustee in reduction of the Bond Trustee Claim; (c) an
amount to the Bond Trustee necessary to satisfy all accrued and
unpaid interest due on the Bonds as if the Closing; (d) an amount
to the Bond Trustee necessary to satisfy all unpaid legal fees and
expenses thereof and of its counsel to the extent not previously
paid, to be paid from the Holdback; and (e) the Bond Trustee shall
apply all Indenture Held Funds to remaining principal amount due
on the Bonds. In addition, any sale proceeds from any assets of
the Debtors subject to the Bond Trustee's liens and security
interests shall be paid to the Bond Trustee in reduction of the
Bond Trustee Claim.
As a condition to County receiving the County Settlement Payment,
the County shall: (a) dismiss with prejudice the Appeal; (b)
dismiss with prejudice the Adversary Proceeding, except to the
extent necessary for the County to assert its right to retain the
County Settlement Payment; (c) execute, acknowledge and deliver
all such further documents and instruments necessary to effectuate
the releases set forth in the Settlement Agreement; and (d) submit
a letter to the Tennessee Attorney General withdrawing any and all
objections it had to a sale of the Assets to LAC (provided the
Attorney General has not previously issued a "no-action" letter
with respect to such sale).
The parties to the Settlement Agreement consent to the closing of
the Sale to the Purchaser. The Purchaser and the Debtor have
entered into an amendment to the APA which provides for an
extension of the Termination Date thereunder through and including
August 31, 2010, as well as various other provisions. The Debtors
request that the APA Amendment be approved in connection with the
order approving the Settlement Agreement.
Objections, if any, must be filed by August 13, 2010, and served
on Counsel for the Debtors and Debtors in Possession:
Robert A. Guy, Jr., Esq.
FROST BROWN TODD LLC
424 Church Street, Suite 1600
Nashville, TN 37219
Telephone: (615) 251-5550
E-mail: bguy@fbtlaw.com
- and -
Ronald E. Gold, Esq.
Joseph B. Wells, Esq.
201 East Fifth Street, Suite 2200
Cincinnati, OH 45202
Telephone: 513.651.6800
E-mail: rgold@fbtlaw.com
jbwells@fbtlaw.com
- and -
Jeff J. Marwil, Esq.
PROSKAUER ROSE LLP
Three First National Plaza
70 West Madison, Suite 3800
Chicago, IL 60602-4342
Telephone: 312-962-3550
- and -
Jeffrey W. Levitan, Esq.
Adam T. Berkowitz, Esq.
1585 Broadway
New York, NY 10036-8299
Telephone: 212-969-3000
The Bankruptcy Court will convene a hearing on Aug. 18, 2010, to
consider approval of this compromise and settlement pact.
Gallatin, Tennessee-based Sumner Regional Health Systems, Inc. --
dba Sumner Regional Medical Center, SRHS Professional Services,
Sumner Station, Sumner In-Patient Rehabilitation Unit,
Westmoreland Pharmacy, Imaging for Women at Sumner Station,
Diagnostic Center at Sumner Station, Outpatient Rehab Services at
Sumner Station, The Fitness Center at Sumner Station, Sumner
Crossroads, and Executive House Apartments -- sought Chapter 11
bankruptcy protection (Bankr. M.D. Tenn. Case No. 10-04766) on
April 30, 2010 . Robert A. Guy, Esq., at Frost Brown Todd LLC,
assists the Company in its restructuring effort. The Company
estimated its assets and debts at $100 million to $500 million
at the time of the filing.
SUNPAT INC: Case Summary & 17 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Sunpat, Inc.
dba Express Inn
1711 E. 16h Avenue
Cordele, GA 31015
Bankruptcy Case No.: 10-11305
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Middle District of Georgia (Albany)
Debtor's Counsel: Jerome L. Kaplan, Esq.
Stone and Baxter, LLP
577 Mulberry Street, Suite 800
Macon, GA 31201-8256
Tel: (478) 750-9898
Fax: (478) 750-9899
E-mail: jkaplan@stoneandbaxter.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 17 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/gamb10-11305.pdf
The petition was signed by Sunil Patel, president.
TACO MUNDO: To Re-Open Shops After Reaching Deal with Landlords
---------------------------------------------------------------
Kerri Panchuk, web reporter at Business Journal of Dallas, reports
that Taco Mundo said it was set to reopen after reaching a deal
with its landlord. A person familiar with the matter said the
Company will work with a certain restaurant management firm to
oversee operations.
Taco Mundo Centreport, LLC filed for Chapter 11 bankruptcy
protection on July 25, 2010 (Bankr. N.D. Tex. Case No. 10-44809).
Joshua Lee Shepherd, Esq., Sarah Ann Walters, Esq., and Stephanie
Diane Curtis, Esq., at The Curtis Law Firm PC, represent the
Company in the bankruptcy case. The Debtor estimated assets and
debts of between $1 million and $10 million in its petition.
TENET HEALTHCARE: Moody's Assigns 'Caa1' Rating on Notes Offering
-----------------------------------------------------------------
Moody's Investors Service assigned a Caa1 (LGD5, 86%) rating to
Tenet Healthcare Corporation's proposed offering of $600 million
of unsecured notes. Moody's understands that the proceeds of the
offering will be used to fund a portion of the tender for
$800 million of the company's unsecured notes due 2013. Moody's
also affirmed the existing ratings of the company, including the
B2 Corporate Family and Probability of Default Ratings. The
ratings outlook is stable.
"The proposed transaction further evidences the company's
proactive management of its maturity profile," said Dean Diaz,
Moody's VP -- Senior Credit Officer. "The transaction also shows
an ability to delever through the use of the company's available
cash balance," continued Diaz. Moody's expects that the company
will use available cash to fund the remaining portion of the
tender for the 2013 notes.
Tenet's B2 Corporate Family Rating reflects Moody's expectation
that the company will likely see positive free cash flow for the
full year ending December 31, 2010, as operating results continue
to improve and litigation settlement payments end in the third
quarter. Free cash flow turned positive for the full year 2009
when excluding payments for settlements. Moody's believe that
recent improvements in leverage levels can be maintained and will
likely continue to modestly improve based on further EBITDA growth
and modest debt repayment. However, the ratings also consider the
significant headwinds facing the company, and the sector as a
whole, with respect to increasing bad debt expense, weak volume
trends and changes in mix as commercial volumes decline.
Following is a summary of Moody's rating actions.
Ratings assigned:
* $600 million senior unsecured notes due 2020, Caa1 (LGD5, 86%)
Ratings affirmed/LGD assessments revised:
* $800 million senior secured revolving credit facility due 2011,
Ba2 (LGD1, 3%)
* 9.0% senior secured notes due 2015, to B1 (LGD3, 38%) from B1
(LGD3, 37%)
* 10.0% senior secured notes due 2018, to B1 (LGD3, 38%) from B1
(LGD3, 37%)
* 8.875% senior secured notes due 2019, to B1 (LGD3, 38%) from B1
(LGD3, 37%)
* 6 3/8% senior notes due 2011, to Caa1 (LGD5, 86%) from Caa1
(LGD5, 85%)
* 6.5% senior notes due 2012, to Caa1 (LGD5, 86%) from Caa1 (LGD5,
85%)
* 7 3/8% senior notes due 2013, to Caa1 (LGD5, 86%) from Caa1
(LGD5, 85%)
* 9 7/8% senior notes due 2014, to Caa1 (LGD5, 86%) from Caa1
(LGD5, 85%)
* 9 1/4% senior notes due 2015, to Caa1 (LGD5, 86%) from Caa1
(LGD5, 85%)
* 6 7/8% senior notes due 2031, to Caa1 (LGD5, 86%) from Caa1
(LGD5, 85%)
* Corporate Family Rating, B2
* Probability of Default Rating, B2
* Speculative Grade Liquidity Rating, SGL-2
Moody's last rating action was on June 17, 2010, when Moody's
upgraded the Corporate Family and Probability of Default Ratings
of Tenet to B2 from B3. Moody's also upgraded the rating on
Tenet's senior secured revolver to Ba2 (LGD1, 3%) from Ba3 (LGD1,
3%), senior secured notes to B1 (LGD3, 37%) from B2 (LGD3, 35%)
and senior unsecured notes to Caa1 (LGD5, 85%) from Caa2 (LGD5,
84%).
Tenet, headquartered in Dallas, TX, is one of the largest for-
profit hospital operators by revenues. At June 30, 2010, the
company operated 49 general hospitals and a critical access
hospital in 11 states. Tenet generated revenue from continuing
hospital operations of approximately $9.2 billion for the twelve
months ended June 30, 2010
TENET HEALTHCARE: S&P Assigns 'CCC+' Rating on $600 Mil. Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
'CCC+' issue-level and '6' recovery ratings on Tenet Healthcare
Corp.'s $600 million senior unsecured notes due 2020, privately
placed in reliance on Rule 144A. Proceeds from these notes will
form a portion of the financing needed to tender for up to
$800 million of its 7.375% senior notes due 2013.
The low-speculative-grade ratings on Texas-based hospital operator
Tenet reflect the company's still-weak business risk profile and
high financial leverage, despite the company's recent successes to
date of a multiyear turnaround effort. Tenet's portfolio of 50
hospitals represents a dramatic downsizing for a company that had
as many as 120 hospitals several years ago. With nearly one-half
of its beds concentrated in Florida and California, reimbursement
and economic changes in those states could hurt Tenet. In
addition to the portfolio downsizing that has taken place for
several years, Tenet's extensive turnaround efforts have involved
management and governance changes, cost-control initiatives,
revamped physician recruitment and relationship strategies, and
quality initiatives. The company has also focused on improving
its contractual relationships with private insurance companies.
Tenet's increasing earnings reflect some measure of success of
these efforts. For the 12 months ended March 31, 2010, lease-
adjusted EBITDA increased about 23% compared with the similar
period one year earlier; the company recently raised EBITDA
guidance for 2010, which S&P believes is achievable. Tenet's
smaller, more manageable hospital portfolio, as well as the
absence of any significant litigation and investigations, should
help keep the company stabilized.
S&P's corporate credit rating on Tenet is 'B' and remains
unchanged; S&P's rating outlook is stable.
Ratings List
Tenet Healthcare Corp.
Corporate Credit Rating B/Stable/--
New Rating
Tenet Healthcare Corp.
$600M senior notes due 2020 CCC+
Recovery Rating 6
TEXACO INC: 1987 Bankruptcy Can Be Reopened to Halt Lawsuit
-----------------------------------------------------------
Tiffany Kary at Bloomberg News reports that U.S. Bankruptcy Judge
Robert Drain has ruled that Texaco Inc. can reopen its 1987
bankruptcy to stop a lawsuit by Louisiana property owners seeking
damages for alleged toxic waste contamination. The judge said
that the claims against Texaco and its successors were discharged
in accordance with the court order approving its Chapter 11 plan.
Judge Drain granted Texaco's request to re-open the bankruptcy
case to enforce that order.
Bloomberg recounts that Kling Realty Co. and Walet Planting Co.
sued Texaco and Chevron USA Inc. in 2006, seeking damages for the
alleged contamination. According to a complaint filed in 2006 of
Iberia, Louisiana, property belonging to Kling and Walet was
fouled with drilling fluids, hydrocarbons, radioactive materials
and waste identified as human carcinogens. The plaintiffs said
waste from oil and gas exploration by Texaco or predecessors since
the 1930s was also ignored and concealed as the company continued
to do work on the site.
Martin Bienenstock, Esq., a lawyer for Texaco, said that because
the claims were made on land where oil and gas production had
stopped before Texaco's bankruptcy, they were subject to a
discharge when the company went through Chapter 11. "The
discharge of all claims remains in effect forever. The passage of
time doesn't change that," Mr. Bienenstock said.
Reorganized Texaco is represented by:
Martin J. Bienenstock, Esq.
Philip Abelson, Esq.
Henry Ricardo, Esq.
DEWEY & LEBOEUF, LLP
1301 Avenue of the Americas
New York, NY 10019-6092
Telephone: 212-259-8530
Facsimile: 212-259-6333
E-mail: mbienenstock@dl.com
pabelson@dl.com
hricardo@dl.com
Respondents Kling Realty et al. is represented by:
Leslie Margaret Kelleher, Esq.
CAPLIN & DRYSDALE, LLP
One Thomas Circle, Washington, DC 20005
Telephone: 202-862-7819
Facsimile: 202-429-3301
E-mail: lmk@capdale.com
- and -
William E. Steffes, Esq.
STEFFES, VINGIELLO & MCKENZIE, LLC
13702 Coursey Boulevard, Building 3
Baton Rouge, LA 70817
Telephone: 225-751-1751
Facsimile: 225-751-1998
A copy of the decision is available at:
http://www.leagle.com/unsecure/page.htm?shortname=inbco20100803666
Texaco, Inc., and two of its wholly owned subsidiaries, Texaco
Capital Inc., and Texaco Capital N.V., sought chapter 11
protection (Bankr. S.D.N.Y. Case Nos. 87-B-20142 through 87-B-
20144) on Apr. 12, 1987, represented by the law firm of Weil,
Gotshal & Manges, LLP. Lawyers at Kramer, Levin, Nessen, Kamin &
Frankel, represented the General Creditors' Committee, and lawyers
at Cleary, Gottlieb, Steen & Hamilton, represented the Industry
Creditors' Committee. These two unsecured creditors' committees
were merged at the Debtor's behest by order of the Honorable
Howard Schwartzberg, 79 B.R. 560, on Nov. 12, 1987. Lawyers at
Keck, Mahin & Cate represented the Equity Committee. Lawyers at
Levin & Weintraub & Crames in New York, Stutman, Triester & Glass,
P.C., in Los Angeles, and Baker & Botts in Houston, Tex.,
represented Penzoil Company, Texaco's largest creditor.
TEXAS RANGERS: Cuban Offer Has $335MM Cash Portion, Tops Ryan's
---------------------------------------------------------------
Angela K. Brown, writing for The Associated Press, reports that
Mark Cuban, the billionaire owner of the Dallas Mavericks
basketball team, launched an aggressive bid to buy the Texas
Rangers on Wednesday, challenging Hall of Fame pitcher and team
president Nolan Ryan and his group of investors in a rare and
contentious bankruptcy court auction.
Mr. Cuban's group includes Houston businessman Jim Crane.
The AP says Rangers attorney Martin Sosland, Esq., said the bid by
Mr. Cuban's group was about $25 million more than the bid
submitted by the Greenberg-Ryan group. Mr. Sosland did not reveal
the total amount or what it included.
The Greenberg-Ryan group's starting offer was about $520 million,
including more than $300 million in cash and more than $200
million of the Rangers' debt.
The AP relates that the Greenberg-Ryan group later offered $2
million more than Mr. Cuban's group, which then upped the ante by
$15 million -- to about $335 million as the cash portion of the
Cuban group's total offer.
The AP notes that the auction was delayed for hours by closed-door
haggling over the complicated nature of each bid. According to
the AP, a 45-minute break became three hours after Mr. Cuban's
group left the $335 million cash offer -- only a portion of its
total bid -- on the table.
According to ESPN.com, after approximately 20 minutes of heated
debate about the Cuban group's bid in the courtroom, Lou Strubeck,
Esq., attorney for the Rangers' chief restructuring officer, and
Thomas Lauria, Esq., an attorney for the Greenberg-Ryan group,
exchanged profanities in the hall of the courthouse.
According to the AP, U.S. Bankruptcy Judge Russell Nelms said he
wanted to keep the auction on track, rejecting a request by
attorneys for the Greenberg-Ryan team for a 12-hour break to
review documents. But Judge Nelms said he anticipated a lengthy
process and even obtained permission to leave on the courtroom air
conditioning, which usually shuts off at 5 p.m. "We're going to
work through the night," Judge Nelms said.
The AP also relates that as the night dragged on, attorneys
scurried back and forth between small rooms set aside for the
team, creditors and each bidder. Reporters and courtroom
spectators wandered the hallways and at one point, 10 pizzas and a
case of bottled water and soft drinks were delivered to Mr.
Cuban's camp.
The Greenberg-Ryan group, as the stalking horse bidder, stands to
receive a breakup fee of $10 million to $13 million if it loses in
the auction.
Bloomberg News reports that the winning bidder for the Rangers
will require a high bid, approval from owners of at least 23 of
the 30 Major League Baseball teams and Commissioner Bud Selig's
blessing. The auction rules set the Rangers sale apart from the
typical bankruptcy auction, where the highest offer wins.
A report by David McLaughlin at Bloomberg News, however, said that
Mr. Cuban can defer closing on a potential purchase of the Texas
Rangers while he waits for approval from Major League Baseball.
If Mr. Cuban wins the auction of the Rangers, he can put off
closing while the league's approval is pending as long as
financing is in place by Oct. 11, U.S. Bankruptcy Judge D. Michael
Lynn said at a hearing.
Mr. Cuban, according to Bloomberg, asked the bankruptcy judge to
force an expedited approval of the sale of the Texas Rangers if he
wins the auction of the team.
According to Bloomberg, Mr. Selig favors a sale of the team to the
stalking horse bidder, a group that includes Hall of Fame pitcher
Nolan Ryan, the team's president. An auction where other parties
can outbid the Ryan group was scheduled on August 4.
According to The Wall Street Journal, News Corp. said Tuesday it
will not be submitting a bid for the Texas Rangers. "Fox will not
be submitting a bid for ownership of the Texas Rangers," said a
spokesman for Fox Sports Networks. News Corp. owns Fox, The New
York Post, The Wall Street Journal and NewsCore.
News Corp.'s decision to back out leaves Mr. Cuban and Mr. Crane
as the bidders who'd rival the Ryan group at the auction.
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.
THOMAS STRUBBE: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Joint Debtors: Thomas Scott Strubbe
Brittny Lynn Strubbe
1464 E. Amberwood Drive
Phoenix, AZ 85048
Bankruptcy Case No.: 10-24050
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: Randolph J. Haines
Debtor's Counsel: James E. Brown, Esq.
James E. Brown, P.C.
2111 E Highland Avenue, Suite 145
Phoenix, AZ 85016
Tel: (602) 230-1504
Fax: (602) 230-1660
E-mail: jim@aztaxlaw.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Joint Debtors did not file a list of creditors together with
its petition.
The petition was signed by the Joint Debtors.
TOWN SPORTS: June 30 Balance Sheet Upside Down by $9.19-Mil.
------------------------------------------------------------
Town Sports International Holdings, Inc., reported total assets of
$466,996,000 against total liabilities of $476,192,000, resulting
in stockholders' deficit of $9,196,000 as of June 30, 2010.
The Company swung to a net loss of $815,000 for the three months
ended June 30, 2010, from net income $2,524,000 for the same
period in 2009. The Company swung to a net loss of $1,547,000 for
the six months ended June 30, 2010, from net income of $3,163,000
for the same period in 2009.
A full-text copy of the Company's Form 10-Q is available at no
charge at http://ResearchArchives.com/t/s?67b5
As of June 30, 2010, Town Sports International Holdings, Inc.,
through its wholly owned subsidiary, Town Sports International,
LLC, operated 161 fitness clubs comprised of 109 clubs in the New
York metropolitan market under the "New York Sports Clubs" brand
name, 25 clubs in the Boston market under the "Boston Sports
Clubs" brand name, 18 clubs (two of which are partly-owned) in the
Washington, D.C. market under the "Washington Sports Clubs" brand
name, six clubs in the Philadelphia market under the "Philadelphia
Sports Clubs" brand name and three clubs in Switzerland. The
Company's operating segments are New York Sports Clubs, Boston
Sports Clubs, Philadelphia Sports Clubs, Washington Sports Clubs
and Swiss Sports Clubs.
TRANT MANOR: Case Summary & 15 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Trant Manor, LLC
790 C. Avenue
Coronado, CA 92118
Bankruptcy Case No.: 10-13663
Chapter 11 Petition Date: July 31, 2010
Court: U.S. Bankruptcy Court
Southern District of California (San Diego)
Judge: Margaret M. Mann
Debtor's Counsel: Alan Vanderhoff, Esq.
Vanderhoff Law Group
750 B. Street, Suite 1620
San Diego, CA 92101
Tel: (619) 299-2050
Fax: (619)239-6554
E-mail: alan.vanderhoff@vanderhofflaw.com
Scheduled Assets: $10,453,395
Scheduled Debts: $9,488,580
The petition was signed by David Gillingham, managing member.
Debtor's List of 15 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Bushman Dreyfus -- $109,178
820 High Street East
Charlottesville, VA 22902
Tekton Construction -- $30,000
1010 S. Coast Highway 101, Suite 108
Encinitas, CA 92024
Petterson & Bark -- $25,000
1620 Union Street
San Diego, CA 92101
Trane Heating and Air Conditioning -- $13,398
Mac Donalson -- $9,515
Ambient -- $8,420
Susan Nelson -- $1,885
Inviting by Design -- $1,760
Denese Roy -- $1,342
Josefina Bahena -- $1,190
Josefina Teran -- $919
Nancy Helsper -- $800
Lorena Bevan -- $560
Alyssa Hird -- $82
Petra Martinez -- $5
TROPHY INVESTMENTS: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------------
Sandra Baker at Star-Telegram reports that Trophy Investments made
a voluntary Chapter 11 filing, listing assets and liabilities of
between $10 million and $50 million. The Company said it owes
$143,340 to unsecured creditors including $25,000 to two tenants
for unfinished construction work. Trophy Investments owns Village
at Camp Bowie.
TROPICANA ENT: OpCO Submits June 30 Post-Confirmation Report
------------------------------------------------------------
Lance Millage, senior vice president finance and treasurer of
Tropicana Entertainment, LLC, submitted a post-confirmation
quarterly summary report of the OpCo Debtors for the reporting
period of April 1, 2010, to June 30, 2010:
Tropicana Entertainment, LLC
Cash Sources/Uses Summary
For the Period April 1 through June 30, 2010
Unaudited
Beginning cash balance $29,065,457
All receipts received by Debtor:
Cash sales 84,516,004
Collection of accounts receivable 0
Proceeds from litigation (settlement or 0
otherwise)
Sale of Reorganized OpCo Debtor's assets 0
Capital infusion pursuant to OpCo Plan 0
--------------
Total cash received 84,516,004
--------------
Total cash available 113,581,461
Less all disbursements or payments:
Disbursements made under the OpCo Plan, 296,946
excluding admin. claims of bankruptcy
professionals
Disbursements made pursuant to the admin. 4,569,921
claims of bankruptcy professionals
All other disbursements made in the ordinary 82,584,262
course
--------------
Total disbursements 87,451,129
--------------
Ending Cash Balance $26,130,331
==============
Reorganized OpCo Debtors
Combined Balance Sheet
As of June 30, 2010
Unaudited
ASSETS
Current Assets
Cash - unrestricted $29,840,522
Cash - restricted 16,649,013
Accounts receivable - net 14,249,055
Inventory 1,703,276
Notes receivable 0
Prepaid expenses 7,233,649
Other 0
--------------
Total Current Assets 69,675,516
Property, Plant and Equipment
Real property, buildings, boats and 237,953,138
improvements
Machinery and equipment 0
Furniture, fixtures and office equipment 31,049,331
Vehicles 0
Leasehold improvements / CIP 1,683,427
Less: Accumulated depreciation/depletion (7,195,921)
--------------
Total property, plant and equipment 263,489,976
Due from affiliates and insiders 0
Other 80,987,163
--------------
TOTAL ASSETS $414,152,655
==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Liabilities Not Subject to Compromise -
Postpetition Liabilities:
Accounts payable $9,819,771
Taxes payable 4,047,492
Notes payable 159,093
Professional fees 0
Secured debt 0
Due to affiliates and insiders 37,811,531
Other 62,593,726
--------------
Total postpetition liabilities 114,431,614
Liabilities Subject to Compromise - Prepetition
Liabilities:
Secured debt - per plan 0
Priority debt - per plan 0
Unsecured debt - per plan 0
Other - per plan 0
--------------
Total prepetition liabilities 0
--------------
Total Liabilities 114,431,614
Equity:
Common stock 0
Retained earnings (deficit) 299,721,041
--------------
Total Equity (Deficit) 299,721,041
--------------
TOTAL LIABILITIES AND OWNERS' EQUITY $414,152,655
==============
The OpCo Debtors' Plan became effective on March 8, 2010.
Accordingly, at the Effective Date, the OpCo Debtors emerged from
Chapter 11 and are no longer debtors-in-possession.
About Tropicana Entertainment
Tropicana Entertainment LLC and its units owned eleven casino
properties in eight distinct gaming markets with premier
properties in Las Vegas, Nevada, and Atlantic City, New Jersey.
Tropicana Entertainment LLC and certain affiliates filed for
Chapter 11 protection on May 5, 2008 (Bankr. D. Del. Case No. 08-
10856). Kirkland & Ellis LLP and Mark D. Collins, Esq., at
Richards Layton & Finger, represent the Debtors in their
restructuring efforts. Their financial advisor is Lazard Ltd.
Their notice, claims, and balloting agent is Kurtzman Carson
Consultants LLC. Epiq Bankruptcy Solutions LLC is the Debtors'
Web site administration agent. AlixPartners LLP is the Debtors'
restructuring advisor. Stroock & Stroock & Lavan LLP and Morris
Nichols Arsht & Tunnell LLP represent the Official Committee of
Unsecured Creditors in this case. Capstone Advisory Group LLC is
financial advisor to the Creditors' Committee.
The OpCo Debtors, a group of Tropicana entities owning casinos and
resorts in Atlantic City, New Jersey and Evansville, Indiana
obtained confirmation from the Bankruptcy Court of a
reorganization plan. On April 29, 2009, non-debtor units of the
OpCo Debtors, designated as the New Jersey Debtors -- Adamar of
New Jersey, Inc., and its affiliate, Manchester Mall, Inc. --
filed for Chapter 11 (Bankr. D. N.J. Lead Case No. 09- 20711) to
effectuate a sale of the Atlantic City Resort and Casino to a
group of Investors-led by Carl Icahn. Judge Judith H. Wizmur
presides over the cases. Manchester Mall is a wholly owned
subsidiary of Adamar that owns and operates certain real property
utilized in the New Jersey Debtors' business operations.
Effective March 8, Tropicana Entertainment successfully emerged
from the Chapter 11 reorganization process as an Carl Icahn-owned
entity.
A group of Tropicana entities, known as the LandCo Debtors, which
own Tropicana casino property in Las Vegas, have obtained approval
of a separate Chapter 11 plan.
Ilana Volkov, Esq., and Michael D. Sirota, Esq., at Cole, Schotz,
Meisel, Forman & Leonard, in Hackensack, New Jersey, represented
the New Jersey Debtors. Kurtzman Carson Consultants LLC acts as
their claims and notice agent. Adamar disclosed $500 million to
$1 billion both in total assets and debts in its petition.
Manchester Mall disclosed $1 million to $10 million in total
assets, and less than $50,000 in total debts in its petition.
Bankruptcy Creditors' Service, Inc., publishes Tropicana
Bankruptcy News. The newsletter tracks the chapter 11
restructuring proceedings commenced by Tropicana Entertainment LLC
and its affiliates. (http://bankrupt.com/newsstand/or
215/945-7000).
TURF EXCHANGE: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Turf Exchange LLC
524 Walnut, Suite 310
Kansas City, MO 64106
Bankruptcy Case No.: 10-44045
Chapter 11 Petition Date: July 30, 2010
Court: U.S. Bankruptcy Court
Western District of Missouri (Kansas City)
Judge: Dennis R. Dow
Debtor's Counsel: Ronald S. Weiss, Esq.
Berman DeLeve Kuchan & Chapman
911 Main Street, Suite 2230
Kansas City, MO 64105
Tel: (816) 471-5900
Fax: (816) 842-9955
E-mail: rweiss@bdkc.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Mark Latshaw, authorized representative
of Mark West Realty, L.L.C., Sole Member of Turf Exchange, L.L.C.
UNIVERSAL BUILDING: Files for Chapter 11, To Sell to UBP
--------------------------------------------------------
Universal Building Products, Inc., filed voluntary petitions under
Chapter 11 of the U.S. Bankruptcy Code for the company and certain
of its subsidiaries.
UBP Acquisition Corp. has agreed to acquire certain currents
assets, machinery, equipment, and intellectual property owned by
Universal Building Products, Inc. and certain of its subsidiaries.
The acquisition will be made pursuant to 363 of the U.S.
Bankruptcy Code in connection with Universal's voluntary filing
today of petitions under chapter 11 in the U.S. Bankruptcy Court
for the District of Delaware in Wilmington.
UBPAC owns 100% of the senior secured debt of Universal and has
bid its senior secured debt in connection with the acquisition.
UBPAC has also agreed to provide a $6 million debtor-in-possession
financing inside of bankruptcy in order to complete the 363 asset
sale and chapter 11 process. It is expected that the bankruptcy
process will take 30 to 60 days. In connection with this filing,
Universal's Formco and Accubrace operations will continue to
operate in the ordinary course while the balance of its commercial
and manufacturing operations will cease.
Oaktree is a premier global alternative and non-traditional
investment manager with $75 billion in assets under management as
of June 30, 2010. Solus is a New York-based alternative asset
management firm. Oaktree and Solus are the majority equity
holders of Dayton Superior Corp., the leading North American
provider of specialized products for the nonresidential concrete
construction market.
UTEX COMMUNICATIONS: 5th Circ. Says Utex Can't Alter AT&T Contract
------------------------------------------------------------------
Bankruptcy Law360 reports that a federal appeals court has upheld
the denial of Utex Communications Corp.'s bid to make changes to
its contract with AT&T Texas as part of a regulatory proceeding
before the Public Utility Commission of Texas.
Law360 says the U.S. Court of Appeals for the Fifth Circuit on
Monday upheld a district court's affirmation of the commission's
order in favor of AT&T.
Austin, Texas-based UTEX Communications Corp., dba FeatureGroup
IP, filed for Chapter 11 bankruptcy protection on March 3, 2010
(Bankr. W.D. Texas Case No. 10-10599). Patricia Baron Tomasco,
Esq., at Munch Hardt Kopf & Harr, P.C., assists the Company in its
restructuring effort. The Company estimated $100 million to $500
million in assets and $10 million to $50 million in debts in its
petition.
WEST CORP: June 30 Balance Sheet Upside-Down by $2.47 Billion
-------------------------------------------------------------
West Corporation reported total assets of $3,008,762,000 against
total liabilities of $4,068,914,000 and Class L Common Stock of
$1,413,958,000, resulting in stockholders' deficit of
$2,474,110,000 as of June 30, 2010.
West Corp. reported net income of $36,293,000 for the three months
ended June 30, 2010, from net income of $26,435,000 for the same
period in 2009. West Corp. posted net income of $72,296,000 for
the first half of 2010, from net income of $57,059,000 for the
same period in 2009.
Revenue was $596,549,000 for the three months ended June 30, 2010,
from $606,907,000 for the same period in 2009. Revenue was
$1,196,370,000 for the six months ended June 30, 2010, from
$1,213,866,000 for the same period in 2009.
A full-text copy of the Company's Form 10-Q is available at no
charge at http://ResearchArchives.com/t/s?67b6
Based in Omaha, Nebraska, West Corporation provides technology-
driven, voice-oriented solutions. West serves Fortune 1000
companies and other clients in a variety of industries, including
telecommunications, banking, retail, financial services,
technology and healthcare, and have sales and operations in the
United States, Canada, Europe, the Middle East, Asia Pacific and
Latin America. West operates in two business segments: (a)
Unified Communications, including reservationless, operator-
assisted, web and video conferencing services, alerts and
notifications services and consulting, project management and
implementation of hosted and managed unified communications
solutions; and (b) Communication Services, including automated
call processing, agent-based services and emergency communication
infrastructure systems.
West Corp. carries Moody's B2 corporate rating and Standard &
Poor's B+ corporate rating.
WESTGATE PROPERTIES: Shopping Center Case Converted to Chapter 7
----------------------------------------------------------------
WestLaw reports that "cause" existed for conversion or dismissal
of the Chapter 11 case of the debtor-limited liability company, an
Ohio bankruptcy court found. The debtor owned one significant
asset, a shopping plaza. Over a period of three years, the debtor
had filed three Chapter 11 petitions, each to forestall a
creditor's foreclosure of the shopping plaza. The current case,
like the previous cases, showed a lack of ability to rehabilitate.
The debtor had lost its primary tenant and there was no indication
that it would soon have the rental space filled. The debtor was
unlikely to obtain financing or otherwise generate sufficient cash
flow to service its debt to the creditor, which had expressed no
desire to work with the debtor. It was unlikely that the debtor
would be able to "cram down" a plan of reorganization. The
debtor, moreover, had provided only incomplete information to the
United States Trustee on the eve of the hearings in this matter.
The court further held that the best interests of creditors and
the estate would be served by the conversion of the case to one
under Chapter 7 of the Bankruptcy Code. In re Westgate
Properties, Ltd., --- B.R. ----, 2010 WL 2802511 (Bankr. N.D.
Ohio).
Based in Sandusky, Ohio, Westgate Properties, Ltd., owns a 94,250
square-foot retail strip shopping center known as Westgate Centre.
Westgate filed its third Chapter 11 petition (Bankr. N.D. Ohio
Case No. 10-33604) on May 25, 2010. At the time of the filing,
Westgate estimated its assets and debts at less than $10 million.
ZIONS BANCORPORATION: Moody's Changes Outlook to Positive
---------------------------------------------------------
Moody's Investors Service changed the rating outlook on the
unsupported ratings of Zions Bancorporation and its subsidiaries
to positive from negative, including its lead bank, Zions First
National Bank. The unsupported rating includes Zions' bank
financial strength rating of D-, which maps to a Ba3. The
supported ratings on the bank-level debt and deposit ratings of
the subsidiary banks of Zions that benefit from systemic support
remain under review for possible downgrade. Zions First National
Bank is rated Ba2 for deposits.
Regarding the change in outlook on the unsupported ratings,
Moody's said the outlook change to positive from negative
follows the enhancement to Zions tangible common equity position
and signs of stabilization in asset quality. Zions' capital
profile has benefited over the past 5 quarters from common and
preferred issuances totaling approximately $1.5 billion, including
$732 million in the second quarter of 2010 through a combination
of common stock resulting from warrants sold, preferred stock
through issuances and exchanges for the company's sub debt, and
$185 million resulting from warrants sold. In addition, the
provision for loan losses in the second quarter of 2010 was down
for the fourth straight quarter. The rating agency believes that
Zions' enhanced capital position is sufficient to absorb the
additional credit costs that Moody's anticipates from its credit
concentrations, notably commercial real estate and CDOs.
Deterioration in Zions' CRE portfolio has driven seven straight
quarters of losses. Zions' CRE exposure equals approximately 3.3
times TCE and 43% is comprised of construction and land. In
addition to further losses stemming from Zions' CRE exposure,
particularly in the residential construction and land development
sector, the rating agency notes that it expects further writedowns
on the company's CDO portfolio (58% of TCE), consisting primarily
of non-investment grade bank trust preferred securities, given its
correlation with CRE. As a result, Moody's assume that Zions
could continue to report quarterly losses. Nonetheless, Zions'
larger capital base increases its ability to absorb such losses
while maintaining satisfactory capital ratios. To the extent that
provisions continue to come in below expectations, while the
company maintains a commensurate level of reserves, positive
ratings pressure could occur.
Regarding the review of the bank-level debt and deposit ratings,
this was part of a larger action which impacted a number of
regional U.S. banks where Moody's will consider its government
support assumptions in light of the recent passage of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank).
Moody's currently incorporates extraordinary support of one notch
into Zions' ratings.
Moody's last rating action on Zions was on July 27, 2010, when it
placed the supported ratings of Zions under review for possible
downgrade.
Zions Bancorporation, headquartered in Salt Lake City, UT,
reported total assets of $52.1 billion at June 30, 2010.
Outlook Actions:
Issuer: Amegy Corporation
-- Outlook, Changed to Positive From Negative
Issuer: Zions Bancorporation
-- Outlook, Changed to Positive From Negative
Issuer: Zions Capital Trust B
-- Outlook, Changed to Positive From Negative
* Consumer Bankruptcies May Exceed 1.6-Mil. This Year, Says ABI
---------------------------------------------------------------
The 137,698 consumer bankruptcies filed in July represented a 9%
increase nationwide over the 126,434 filings recorded in July
2009, American Bankruptcy Institute said, relying on data from the
National Bankruptcy Research Center (NBKRC). ABI, in a statement
posted in its Web site, added that NBKRC's data also showed that
the July consumer filings represented a 9% increase from the
126,270 consumer filings recorded in June 2010. Chapter 13
filings constituted 28% of all consumer cases in July, a slight
increase from June.
"Debt burdens, unemployment and an uncertain economic climate
continue to weigh on consumers," said ABI Executive Director
Samuel J. Gerdano. "The pace of consumer filings this year
remains on track to top 1.6 million filings."
July June May April March Feb. Jan.
---- ---- -- ---- ----- --- ----
Consumer
Filings 137,698 126,270 136,142 144,490 149,268 111,693 102,254
MoM% Change 9.1% -7.3% -5.8% -3.2% 33.6% 9.2% -9.7%
YoY% Change 8.9% 8.5% 9.1% 15.0% 22.9% 13.6% 15.2%
* Chapter 11 Cases With Assets & Liabilities Below $1,000,000
-------------------------------------------------------------
Recent Chapter 11 cases filed with assets and liabilities below
$1,000,000:
In Re World Eats Enterprises And Development, LLC
dba Pie Zano's Gourmet Pizza Kitchen
Bankr. D. Ariz. Case No. 10-23459
Chapter 11 Petition Filed July 27, 2010
See http://bankrupt.com/misc/azb10-23459.pdf
In Re BBQ Grill House Inc.
Bankr. C.D. Calif. Case No. 10-20308
Chapter 11 Petition Filed July 27, 2010
See http://bankrupt.com/misc/cacb10-20308.pdf
In Re Donald Zavala
Alexandria Cherie Zavala
Bankr. E.D. Calif. Case No. 10-39705
Chapter 11 Petition Filed July 27, 2010
Filed As Pro Se
In Re JRM Realty Inc.
Bankr. M.D. Fla. Case No. 10-17796
Chapter 11 Petition Filed July 27, 2010
Filed As Pro Se
In Re Rufus Hoover Johnson
Dana Lavette Johnson
Bankr. M.D. Fla. Case No. 10-06495
Chapter 11 Petition Filed July 27, 2010
See http://bankrupt.com/misc/flmb10-06495p.pdf
See http://bankrupt.com/misc/flmb10-06495c.pdf
In Re DNJ Development Inc.
Bankr. S.D. Fla. Case No. 10-31453
Chapter 11 Petition Filed July 27, 2010
Filed As Pro Se
In Re Holland & Reid, L.L.C.
fdba Harvey & Holland, L.L.C.
dba Corner Laundry
Bankr. E.D. La. Case No. 10-12704
Chapter 11 Petition Filed July 27, 2010
See http://bankrupt.com/misc/laeb10-12704.pdf
In Re Bippers Automotive, Inc.
Bankr. D. Md. Case No. 10-26924
Chapter 11 Petition Filed July 27, 2010
See http://bankrupt.com/misc/mdb10-26924p.pdf
See http://bankrupt.com/misc/mdb10-26924c.pdf
In Re Dowd Holdings, Inc.
Bankr. D. Md. Case No. 10-26910
Chapter 11 Petition Filed July 27, 2010
See http://bankrupt.com/misc/mdb10-26910.pdf
In Re Maria L. Becerra
aka Maria Miranda
Bankr. D. Mass. Case No. 10-18076
Chapter 11 Petition Filed July 27, 2010
See http://bankrupt.com/misc/mab10-18076.pdf
In Re The Family T LLC
Bankr. E.D. N.Y. Case No. 10-47076
Chapter 11 Petition Filed July 27, 2010
See http://bankrupt.com/misc/nyeb10-47076.pdf
In Re Cinelli's Restaurant, Inc.
Bankr. W.D. N.Y. Case No. 10-21827
Chapter 11 Petition Filed July 27, 2010
See http://bankrupt.com/misc/nywb10-21827.pdf
In Re Brian K. Malcolm
Deborah A. Malcolm
Bankr. E.D. N.C. Case No. 10-05944
Chapter 11 Petition Filed July 27, 2010
Filed As Pro Se
In Re Mildon Bus Lines, Inc.
Bankr. W.D. Pa. Case No. 10-25312
Chapter 11 Petition Filed July 27, 2010
See http://bankrupt.com/misc/pawb10-25312.pdf
In Re Adam R. Grossman
Bankr. W.D. Wash. Case No. 10-18671
Chapter 11 Petition Filed July 27, 2010
Filed As Pro Se
In Re Blount Medical Center Partners
Bankr. N.D. Ala. Case No. 10-04521
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/alnb10-04521.pdf
In Re Mountainside Fitness Centers Of Gilbert, L.L.C.
an Arizona Limited Liability Company
Bankr. D. Ariz. Case No. 10-23734
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/azb10-23734.pdf
In Re Mountainside Fitness Centers Of Arvada, L.L.C.
an Arizona Limited Liability Company
Bankr. D. Ariz. Case No. 10-23736
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/azb10-23736.pdf
In Re Noah Lane Crow
Peggy Ann Crow
Bankr. W.D. Ark. Case No. 10-73915
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/arwb10-73915.pdf
In Re Lucky, Inc. of Delray Beach
Bankr. S.D. Fla. Case No. 10-31624
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/flsb10-31624.pdf
In Re Le Cou Rouge, Inc.
dba Sapelo Station Crossing
Bankr. S.D. Ga. Case No. 10-20970
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/gasb10-20970.pdf
In Re Sir Cooper, Inc.
Bankr. N.D. Ill. Case No. 10-33569
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/ilnb10-33569.pdf
In Re Kenneth Gerald McRight, Jr.
Melinda Mecalis McRight
Bankr. W.D. La. Case No. 10-81142
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/lawb10-81142.pdf
In Re Mac's Dozer & Track Hoe Service, LLC
Bankr. W.D. La. Case No. 10-81143
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/lawb10-81143.pdf
In Re Steve Myers Quality Home Improvements, Inc.
Bankr. D. Md. Case No. 10-27033
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/mdb10-27033.pdf
In Re Normandy Apartments, LLC
Bankr. D. Nev. Case No. 10-52996
Chapter 11 Petition Filed July 28, 2010
See http://bankrupt.com/misc/nvb10-52996.pdf
In Re Daniel Jordan
dba JL Jordan Investment Group, LLC
Bankr. C.D. Calif. Case No. 10-20500
Chapter 11 Petition Filed July 29, 2010
Filed As Pro Se
In Re Traveling Times, Inc.
Bankr. C.D. Calif. Case No. 10-41546
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/cacb10-41546.pdf
In Re Cameron T. Garrett
Bankr. N.D. Calif. Case No. 10-12894
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/canb10-12894.pdf
In Re Leo D. Portal
Bankr. N.D. Calif. Case No. 10-32892
Chapter 11 Petition Filed July 29, 2010
Filed As Pro Se
In Re Bright Star Apalachee, LLC
Bankr. N.D. Ga. Case No. 10-23345
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/ganb10-23345.pdf
In Re Rizak, Inc.
Bankr. N.D. Ill. Case No. 10-33809
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/ilnb10-33809.pdf
In Re Remediation Experts, LLC
Bankr. E.D. La. Case No. 10-12738
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/laeb10-12738.pdf
In Re Armindo Sagastume
Pricila Abreu
Bankr. D. Mass. Case No. 10-18150
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/mab10-18150.pdf
In Re M & L Construction
Bankr. D. Nev. Case No. 10-24261
Chapter 11 Petition Filed July 29, 2010
Filed As Pro Se
In Re Mortgage Internet Technologies, Inc.
Bankr. D. Nev. Case No. 10-24313
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/nvb10-24313.pdf
In Re Asbury Equities, LLC
Bankr. D. N.J. Case No. 10-33165
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/njb10-33165.pdf
In Re Arrow Homes, Inc.
Bankr. M.D. Tenn. Case No. 10-07957
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/tnmb10-07957.pdf
In Re Metro Ready Mix, LLC
dba Metro Ready Mix
Bankr. S.D. Texas Case No. 10-36289
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/txsb10-36289.pdf
In Re Gerardo P. Cailing
Mary J. Dayao
Bankr. W.D. Texas Case No. 10-31559
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/txwb10-31559.pdf
In Re Scratch Golf LLC
dba Northcliffe Golf & Country Club
Bankr. W.D. Texas Case No. 10-52838
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/txwb10-52838.pdf
In Re Cave Man Kitchens
Bankr. W.D. Wash. Case No. 10-18857
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/wawb10-18857.pdf
In Re Iluvused, Inc.
aka Fleury Auto & Truck Parts
dba Fleury Auto & Truck Parts
Bankr. W.D. Wash. Case No. 10-18817
Chapter 11 Petition Filed July 29, 2010
See http://bankrupt.com/misc/wawb10-18817.pdf
In Re Concours Motor Cars, L.L.C.
Bankr. D. Ariz. Case No. 10-24015
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/azb10-24015.pdf
In Re Ole West Express, LLC
Bankr. E.D. Ark. Case No. 10-15549
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/areb10-15549.pdf
In Re Carol Joy Ojo
aka Carol Joy Whyte
Bankr. C.D. Calif. Case No. 10-41672
Chapter 11 Petition Filed July 30, 2010
Filed As Pro Se
In Re Carmichael Brentwood, LLC
Bankr. E.D. Calif. Case No. 10-40174
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/caeb10-40174.pdf
In Re Sky Shades Holdings, LLC
Bankr. M.D. Fla. Case No. 10-13559
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/flmb10-13559.pdf
In Re J-5 Enterprises, LLC
Bankr. E.D. La. Case No. 10-12761
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/laeb10-12761.pdf
In Re Fujihano's Auto Sale & Repair Center, Inc.
Bankr. D. Mass. Case No. 10-18214
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/mab10-18214.pdf
In Re Stephen J. Ellis
Jane M. Ellis
Bankr. D. Mass. Case No. 10-43843
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/mab10-43843.pdf
In Re Hawkeye's Grill and Pub, LLC
Bankr. E.D. Mich. Case No. 10-64257
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/mieb10-64257p.pdf
See http://bankrupt.com/misc/mieb10-64257c.pdf
In Re Clearr Corporation
Bankr. D. Minn. Case No. 10-45760
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/mnb10-45760.pdf
In Re Eastern Farms, Inc.
dba Delmonico Gourmet Food Market
Bankr. S.D. N.Y. Case No. 10-14150
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/nysb10-14150.pdf
In Re Lee's Seoul Cleaners, Inc.
dba Alpine French Cleaners
Bankr. S.D. N.Y. Case No. 10-14156
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/nysb10-14156.pdf
In Re New 97 Cleaners, Inc.
dba Young's Valet Cleaners
Bankr. S.D. N.Y. Case No. 10-14151
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/nysb10-14151.pdf
In Re Toback Podiatry, PLLC
Bankr. S.D. N.Y. Case No. 10-37282
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/nysb10-37282.pdf
In Re Aircomm Communications, Inc.
Bankr. S.D. Texas Case No. 10-80444
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/txsb10-80444.pdf
In Re Seasonal Air, Division of K&K Industries, LLC
Bankr. W.D. Pa. Case No. 10-70916
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/pawb10-70916.pdf
In Re Martin Byrd Quillen, Sr.
Bankr. W.D. Va. Case No. 10-71852
Chapter 11 Petition Filed July 30, 2010
Filed As Pro Se
In Re Interactive Electronic Systems, Inc.
Bankr. W.D. Wash. Case No. 10-18979
Chapter 11 Petition Filed July 30, 2010
See http://bankrupt.com/misc/wawb10-18979.pdf
In Re Naomi E. Riess
dba Riess Research & Planning
fods Common Sense Ent. LLC
Bankr. D. Colo. Case No. 10-29465
Chapter 11 Petition Filed July 31, 2010
See http://bankrupt.com/misc/cob10-29465.pdf
In Re 3109, LLC
Bankr. D. D.C. Case No. 10-00757
Chapter 11 Petition Filed July 31, 2010
See http://bankrupt.com/misc/dcb10-00757.pdf
In Re Modern Mailers Inc.
Bankr. N.D. Fla. Case No. 10-40743
Chapter 11 Petition Filed July 31, 2010
See http://bankrupt.com/misc/flnb10-40743.pdf
In Re Peter G. Morgan
Sofie Morgan
Bankr. D. Ariz. Case No. 10-24178
Chapter 11 Petition Filed August 2, 2010
Filed As Pro Se
In Re New Age Laundry, Inc.
Bankr. C.D. Calif. Case No. 10-19453
Chapter 11 Petition Filed August 2, 2010
See http://bankrupt.com/misc/cacb10-19453p.pdf
See http://bankrupt.com/misc/cacb10-19453c.pdf
In Re All State Consultants, Inc.
Bankr. N.D. Calif. Case No. 10-48846
Chapter 11 Petition Filed August 2, 2010
See http://bankrupt.com/misc/canb10-48846.pdf
In Re C.C. Marine, Inc. of Land O Lakes
Bankr. M.D. Fla. Case No. 10-18675
Chapter 11 Petition Filed August 2, 2010
See http://bankrupt.com/misc/flmb10-18675.pdf
In Re C & N Properties, LLC
Bankr. M.D. Ga. Case No. 10-52459
Chapter 11 Petition Filed August 2, 2010
See http://bankrupt.com/misc/gamb10-52459.pdf
In Re Mustard Seed LLC
Bankr. N.D. Ga. Case No. 10-82584
Chapter 11 Petition Filed August 2, 2010
See http://bankrupt.com/misc/ganb10-82584.pdf
In Re Sisbro Investments Corporation
Bankr. N.D. Ga. Case No. 10-12895
Chapter 11 Petition Filed August 2, 2010
See http://bankrupt.com/misc/ganb10-12895.pdf
In Re DHH Investments, Inc.
Bankr. S.D. Ga. Case No. 10-30405
Chapter 11 Petition Filed August 2, 2010
See http://bankrupt.com/misc/gasb10-30405.pdf
In Re Ivy Restaurant Group, Inc.
Bankr. D. Mass. Case No. 10-18394
Chapter 11 Petition Filed August 2, 2010
See http://bankrupt.com/misc/mab10-18394.pdf
In Re Theresa A. Whitaker
aka Theresa A. Whitaker-Wilke
Bankr. D. Mass. Case No. 10-18399
Chapter 11 Petition Filed August 2, 2010
See http://bankrupt.com/misc/mab10-18399.pdf
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9474.
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