/raid1/www/Hosts/bankrupt/TCR_Public/100806.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, August 6, 2010, Vol. 14, No. 216
Headlines
400 WALNUT: Asks Court to Extend Filing of Schedules Until Aug. 23
400 WALNUT: Gets Court's Interim Nod to Use Cash Collateral
400 WALNUT: Section 341(a) Meeting Scheduled for August 30
400 WALNUT: Taps Maschmeyer Karalis as Bankruptcy Counsel
ABITIBIBOWATER INC: $732,800 in Claims Change Hands for July
ABITIBIBOWATER INC: Wachovia Directed to Release Trust Assets
ALL YOU: Voluntary Chapter 11 Case Summary
ALLIS-CHALMERS: Posts $6-Million Net Loss for Q2 2010
ALLY FINANCIAL: Swings to $565-Mil. Net Income for Q2 2010
AMERICA'S SUPPLIERS: Board Names New Member to Fill Vacancy
AMERICAN INTERNATIONAL: MetLife Prepares for ALICO Shares Sale
AMERICAN SAFETY: Has Interim Approval for Financing
AMK ENTERPRISES: Case Summary & 2 Largest Unsecured Creditors
ARVINMERITOR INC: Posts $3 Million Net Loss for June 30 Quarter
AVENTINE RENEWABLE: Finds Investors for Add'l $50MM for Sr. Notes
BAILEY'S PUB: Voluntary Chapter 11 Case Summary
BAYOU GROUP: Goldman Sachs' Suit Backed by Industry Group
BERNARD MADOFF: Picard Wins $180-Mil. Judgment vs. Vizcaya
BLACKHAWK, INC: Voluntary Chapter 11 Case Summary
BRENT JACOBS: Case Summary & 20 Largest Unsecured Creditors
CATALYST PAPER: Analyst Sees Below-Par Debt Swap Amid Bond Drop
CHARTER COMMS: Appeals on Plan Confirmation in Briefing Phase
CHARTER COMMS: Posts $81MM Net Loss in 2nd Qtr Out of Bankruptcy
CHENIERE ENERGY: Andrea Botta Elected to Board of Directors
CLYDE CALLAHAM: Case Summary & 20 Largest Unsecured Creditors
COMMUNITYSOUTH FINANCIAL: Undercapitalized, Q2 Loss at $2.2MM
COMPANIA MEXICANA: Chapter 15 Case Summary
COMSTOCK MINING: Buys Exploration Licenses, Mining Claims
CONTINENTAL AIRLINES: Plans $750MM Bond Sale to Repay Loans
CONTINENTAL AIRLINES: Reports Record Load Factor for July
CONTINENTAL AIRLINES: Settles Lawsuit Relating to Mulled Merger
COTTAGE SCHOOL: Voluntary Chapter 11 Case Summary
CUMULUS MEDIA: June 30 Balance Sheet Upside Down by $359MM
DAVID EDELSTEIN: Voluntary Chapter 11 Case Summary
DENNY'S CORP: Posts $5.5 Million Net Income for June 30 Quarter
DESARROLLO RIO: Case Summary & 16 Largest Unsecured Creditors
DESTINATION MATERNITY: Moody's Raises Default Rating to 'B2'
DOLLAR THRIFTY: Posts $42.3 Million Net Income for June 30 Quarter
DOLLAR THRIFTY: Says Avis Offer Fails "Superior Proposal" Test
DYNAVAX TECHNOLOGIES: Posts $28 Million Net Loss in Q2 2010
EMISPHERE TECHNOLOGIES: Issues $525,000 Promissory Note to MHR
ENERGY FUTURE: Distributes Slide Presentation for Investor Call
ENERGY FUTURE: Posts $426.0 Million Net Loss for June 30 Quarter
ENERGYCONNECT GROUP: Appoints Regulatory Expert to Board
FAIRPOINT COMMS: May Ask Court to Overrule Vermont Rejection
FAIRPOINT COMMS: Proposes to Assume JC Zampell Agreement
FAIRPOINT COMMS: Wants Removal Period Extended Until Oct. 25
FERRO CORP: S&P Raises Corporate Credit Rating to 'BB-'
FGIC CORP: Sharps Extends Exchange Offer for RMBS Until Aug. 10
FGIC CORP: Case Summary & 4 Largest Unsecured Creditors
FIBREK'S INC: Moody's Assigns 'B1' Rating on New Secured Loan
FIRST DATA: Loan Amendments Won't Affect Moody's 'B3' Rating
FLETCHER GRANITE: Case Summary & 20 Largest Unsecured Creditors
FOR YOU CLEANERS: Voluntary Chapter 11 Case Summary
FORD MOTOR: Newest Vehicles Boost Growth; July Sales Up 5%
FORESIGHT ENERGY: S&P Assigns 'B-' Corporate Credit Rating
FOREST PARK: Voluntary Chapter 11 Case Summary
FOURTH QUARTER PROPERTIES: Files for Bankruptcy in Georgia
FURMAN HASKETT: Voluntary Chapter 11 Case Summary
G&F CARE: Voluntary Chapter 11 Case Summary
GANDER PARTNERS: Automatic Stay Extended to Bank Loan Guarantors
GARLOCK SEALING: Says Asbestos Panel Counsel's Fees Unreasonable
GARLOCK SEALING: Wants to Remove Civil Actions Until March 31
GARLOCK SEALING: Wins Nod to Assume Daikin-America Contract
GATEHOUSE MEDIA: Lowers Net Loss to $5.3 Mil. in Q2 2010
GENERAL GROWTH: Blackstone Expects to Complete $500MM Investment
GENERAL GROWTH: CFO Douglas Does Not Own Securities of GGP
GENERAL GROWTH: Files First Amended Plan Of Reorganization
GENERAL GROWTH: Plans of Land Trust, et al., Declared Effective
GENERAL MOTORS: Chevrolet-Buick-GMC-Cadillac Sales Up 25% in July
GENERAL MOTORS: Wants Treasury to Sell Entire Stake at IPO
GENERAL MOTORS: To Report "Impressive" Q2 Earnings Next Week
GEOFFREY BANGERT: Case Summary & 13 Largest Unsecured Creditors
GIGOPTIX INC: Posts $1.4 Million Net Loss in Q2 Ended July 4
GLOBAL CROSSING: June 30 Balance Sheet Upside Down by $487MM
GLOBAL CROSSING: 100% of Senior Notes Tendered in Exchange Offer
GRAHAM PACKAGING: Posts $37.8-Mil. Net Income for June 30 Quarter
GREENWOOD ESTATES: Case Summary & 20 Largest Unsecured Creditors
GSI GROUP: Names Stephen W. Bershad as Board Chairman
HAWKER BEECHCRAFT: Swings to $56.8-Mil. Net Loss for Q2 2010
HAWKER BEECHCRAFT: Vascsinec Replaces Knight as Controller
HEALTHSOUTH CORP: June 30 Balance Sheet Upside Down by $817MM
HELIX ENERGY: S&P Gives Stable Outlook, Affirms 'B' Rating
HOLIDAY ISLE: Asks for OK to Sell Condo Unit 407 for $329,000
HOLIDAY ISLE: Wants to Sell Condo Unit 518 for $270,000
HOLIDAY ISLE: RBC Real Pushes for Dismissal of Chapter 11 Case
HOLIDAY ISLE: Section 341(a) Meeting Scheduled for August 31
HOLIDAY ISLE: Wants to Hire Irvin Grodsky as Bankruptcy Counsel
INDIO SUN: Section 341(a) Meeting Scheduled for August 31
INTERTAPE POLYMER: Posts $2.7 Million Net Loss for June 30 Quarter
IRVINE SENSORS: Reaches Deal to Sell Securities to Longview
KRONOS INT'L: Seeking Extension of May 2011 Loan Maturity Date
KRONOS INT'L: Swings to $9-Mil. Net Income for Q2 2010
LEAP WIRELESS: Posts $19.3 Million Net Loss for June 30 Quarter
LEAP WIRELESS: Unit Inks Service Agreement With Sprint Spectrum
LEHMAN BROTHERS: Asks for OK of Transfer Agreement With Citibank
LEHMAN BROTHERS: Intends to Acquire Loans Through LBREP JV
LEHMAN BROTHERS: Presents Surrender Agreement With 85 Tenth
LEHMAN BROTHERS: Wants to Amend Pact to Fund Heritage Project
LEVEL 3 COMMUNICATIONS: $39-Mil. of Debt Due to Mature in 2nd Half
LOUIS PEARLMAN: Fla. Judge Allows Trustee to Hire Auctioneer
LYONDELL CHEMICAL: Creditors' Suit Set for September Trial
MCCLATCHY CO: Launches Exchange Bid for Unregistered 11.5% Notes
MEEKS THOMAS: Case Summary & 20 Largest Unsecured Creditors
MEXICANA AIRLINE: Halt in Flights Could Adversely Affect ASUR
MGM MIRAGE: Posts $883.4 Million Net Loss for June 30 Quarter
MICHAEL FAVORS: Case Summary & 13 Largest Unsecured Creditors
NAVISTAR FINANCIAL: Amends Pooling and Servicing Agreement
NEXCEN BRANDS: Closes Sale of Franchise Biz to Levine Leichtman
ODYSSEY PROPERTIES III: Files for Chapter 11 in Florida
ODYSSEY PROPERTIES III: Voluntary Chapter 11 Case Summary
PETER BUCKLIN: Asks for Court Okay to Use Cash Collateral
PETER BUCKLIN: Gets OK to Hire Sussman Shank as Bankr. Counsel
PETER BUCKLIN: Section 341(a) Meeting Scheduled for August 30
PHH CORPORATION: Fitch Assigns 'BB+' Rating on $250 Mil. Notes
PHIL TILLEY: Voluntary Chapter 11 Case Summary
PICK & SAVE: Case Summary & 20 Largest Unsecured Creditors
PRORAMA INC: Case Summary & 20 Largest Unsecured Creditors
SECURITY BENEFIT: Guggenheim Deal Cues Fitch to Withdraw Ratings
SIGMA INDUSTRIES: Gets Creditors' Support for Restructuring
SPRING RESORT: Voluntary Chapter 11 Case Summary
ST JOHN KNITS: S&P Downgrades Corporate Credit Rating to 'B'
STEVENS TECHNOLOGY: Case Summary & 20 Largest Unsecured Creditors
STILLWATER HOLDINGS: Case Summary & 9 Largest Unsecured Creditors
STRIKEFORCE TECHNOLOGIES: Appoints Phillip Blocker as CFO
SUMMIT SOUTH: Voluntary Chapter 11 Case Summary
TENET HEALTHCARE: Posts $35 Million Net Income for June 30 Quarter
TEXAS RANGERS: Greenberg-Ryan Team's $590-Mil. Bid Wins
TFF INCORPORATED: Voluntary Chapter 11 Case Summary
THERMADYNE HOLDINGS: Moody's Gives Pos. Outlook; Keeps B3 Rating
TRIBUNE CO: Court Pushes Back Confirmation Hearing to October 4
TRIBUNE CO: Examiner Releases Unredacted Copy of Report
TRIBUNE CO: IRS Seeks Denial of Plan of Reorganization
TRW AUTOMOTIVE: Moody's Raises Corporate Family Rating to 'B1'
UAL CORPORATION: Settles Lawsuit Relating to Continental Merger
UNIGENE LABORATORIES: New CEO to Push for Proactive Business Devt.
USEC INC: Posts $7.2 Million Net Income for June 30 Quarter
VILLAGEEDOCS INC: Amends Questys Stock Purchase Agreement
WALNUT I-35: Voluntary Chapter 11 Case Summary
WASSON PROPERTIES: Voluntary Chapter 11 Case Summary
WILLY NG: Case Summary & 20 Largest Unsecured Creditors
WATER PIK: Moody's Raises Ratings on Senior Facilities to 'Ba3'
YRC WORLDWIDE: Has Deal to Sell $70 Million Conv. Senior Notes
YRC WORLDWIDE: Has Deal to Sell Remaining $20.2 Mil. of Sr. Notes
YRC WORLDWIDE: Reports $9.5-Mil. Net Loss for Second Quarter
* Pimco's El-Erian Says U.S. Has 25% Chance of Deflation
* BOOK REVIEW: Beyond the Quick Fix: Managing Five Tracks To
Organizational Success
********
400 WALNUT: Asks Court to Extend Filing of Schedules Until Aug. 23
------------------------------------------------------------------
400 Walnut Associates, L.P., is asking the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania to extend the deadline
for filing schedules of assets and liabilities and statement of
financial affairs until August 23, 2010.
The Debtor says that it has yet to fully complete the schedules
and the statement and anticipate that the documents won't be
completed by the current 14-day deadline after the filing of a
Chapter 11 petition.
About 400 Walnut
Philadelphia, Pennsylvania-based 400 Walnut Associates, L.P.,
filed for Chapter 11 bankruptcy protection on July 23, 2010
(Bankr. E.D. Pa. Case No. 10-16094). Aris J. Karalis, Esq., and
Robert W. Seitzer, Esq., at Maschmeyer Karalis P.C., assists the
Company in its restructuring effort. The Company estimated its
assets and debts at $10 million to $50 million.
Affiliates 23S23 Construction, Inc., (Case No. 09-12652) and
Carriage House Condominiums, LP (Case No. 09-12647) filed separate
Chapter 11 petition in April 2009.
400 WALNUT: Gets Court's Interim Nod to Use Cash Collateral
-----------------------------------------------------------
400 Walnut Associates, L.P., sought and obtained interim
authorization from the Hon. Stephen Raslavich of the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania to use
the cash collateral from the Petition Date through August 31,
2010.
The Debtor has a secured debt of $11,984,927 to prepetition lender
Sovereign Bank ("Lender"), successor-in-interest to Independence
Community Bank. The amount owed is in connection with the
Debtor's refinancing of the real property located at 400-414
Walnut Street, Philadelphia, Pennsylvania 19106 in February 2004
through Independence Community Bank. The debt has been sold to
4th Walnut Associates, L.P.
Arix J. Karalis, Esq., at Maschmeyer Karalis P.C., explained that
the Debtor needs to use cash collateral to fund its Chapter 11
case, pay suppliers and other parties.
As adequate protection of the interests of the Lender against
diminution in value of its interests in the Property and cash
collateral, the Debtor will grant the Lender replacement liens.
The Debtor will also pay to the Lender by September 3, 2010, all
net income for the period ending August 31, 2010, less the amount
of $2,500 which will be retained by the Debtor for any contingency
expenditure and the payment to the Lender will be a minimum of
$13,500.
The Debtor will use the collateral pursuant to a budget, a copy of
which is available for free at:
http://bankrupt.com/misc/400_WALNUT_budget.pdf
The Court has set a further hearing for August 24, 2010, at 10:30
a.m. prevailing Eastern Time, on the Debtor's request to use cash
collateral.
Aside from debt to Sovereign, the Debtor also owes RAIT
Partnership, L.P., as mezzanine lender, $600,000. The debt is
secured by a second mortgage on the Property and pledges of the
general and limited partnership interests in the Debtor. The
Debtor also has other unliquidated debts of approximately $538,000
due numerous trade creditors of which the sum of approximately
$510,000 is disputed.
About 400 Walnut
Philadelphia, Pennsylvania-based 400 Walnut Associates, L.P.,
filed for Chapter 11 bankruptcy protection on July 23, 2010
(Bankr. E.D. Pa. Case No. 10-16094). Aris J. Karalis, Esq., and
Robert W. Seitzer, Esq., at Maschmeyer Karalis P.C., assists the
Company in its restructuring effort. The Company estimated its
assets and debts at $10 million to $50 million.
Affiliates 23S23 Construction, Inc., (Case No. 09-12652) and
Carriage House Condominiums, LP (Case No. 09-12647) filed separate
Chapter 11 petition in April 2009.
400 WALNUT: Section 341(a) Meeting Scheduled for August 30
----------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of 400 Walnut
Associates, L.P.'s creditors on August 30, 2010, at 2:00 p.m. The
meeting will be held at 833 Chestnut Street, Suite 501,
Philadelphia, Pennsylvania.
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 400 Walnut
Philadelphia, Pennsylvania-based 400 Walnut Associates, L.P.,
filed for Chapter 11 bankruptcy protection on July 23, 2010
(Bankr. E.D. Pa. Case No. 10-16094). Aris J. Karalis, Esq., and
Robert W. Seitzer, Esq., at Maschmeyer Karalis P.C., assists the
Company in its restructuring effort. The Company estimated its
assets and debts at $10 million to $50 million.
Affiliates 23S23 Construction, Inc., (Case No. 09-12652) and
Carriage House Condominiums, LP (Case No. 09-12647) filed separate
Chapter 11 petition in April 2009.
400 WALNUT: Taps Maschmeyer Karalis as Bankruptcy Counsel
---------------------------------------------------------
400 Walnut Associates, L.P., has asked for authorization from the
U.S. Bankruptcy Court for the Eastern District of Pennsylvania to
employ Maschmeyer Karalis P.C. as bankruptcy counsel.
Maschmeyer Karalis will, among other things:
a. advise the Debtor concerning, and assisting in the
negotiation and documentation of the use of cash
collateral and/or debtor-in-possession financing, debt
restructuring and related transactions;
b. review the nature and validity of agreements relating to
the Debtor's business and advise the Debtor in connection
therewith;
c. review the nature and validity of liens, if any, asserted
against the Debtor and advise as to the enforceability of
the liens; and
c. prepare applications, motions, pleadings, orders, notices,
petitions, schedules, and other documents, and review all
financial and other reports to be filed in the Debtor's
Chapter 11 case.
The Debtor says the firm will be paid based on the hourly rates of
its personnel:
Shareholders $440
Associates $240-$370
Paralegals $95-$120
Aris J. Karalis, Esq., a shareholder at Maschmeyer Karalis,
assures the Court that Maschmeyer Karalis is "disinterested" as
that term is defined in Section 101(14) of the Bankruptcy Code.
About 400 Walnut
Philadelphia, Pennsylvania-based 400 Walnut Associates, L.P.,
filed for Chapter 11 bankruptcy protection on July 23, 2010
(Bankr. E.D. Pa. Case No. 10-16094). Aris J. Karalis, Esq., and
Robert W. Seitzer, Esq., at Maschmeyer Karalis P.C., assists the
Company in its restructuring effort. The Company estimated its
assets and debts at $10 million to $50 million.
Affiliates 23S23 Construction, Inc., (Case No. 09-12652) and
Carriage House Condominiums, LP (Case No. 09-12647) filed separate
Chapter 11 petition in April 2009.
ABITIBIBOWATER INC: $732,800 in Claims Change Hands for July
------------------------------------------------------------
The Clerk of the Bankruptcy Court recorded the transfers of these
entities' claims, totaling $732,792, in AbitibiBowater Inc.'s
cases for the month of July 2010:
Claim
Transferor Transferee Claim No. Amount
---------- --------- -------- -------
TDC LLC Corre Opportunities 2014 $219,268
Fund, L.P.
Interstate Supply TRC Optimum Fund LLC 3168 153,177
Company, Inc.
J&R Schugel Corre Opportunities undisclosed 91,313
Trucking, Inc. Fund, L.P.
Key Knife, Inc. Corre Opportunities 1739 73,773
Fund, L.P.
Key Knife, Inc. Corre Opportunities 1738 61,628
Fund, L.P.
Saferack LLC Corre Opportunities undisclosed 56,581
Fund, L.P.
SSC Industries Creditor Liquidity, 651 24,960
LP
Key Knife, Inc. Corre Opportunities undisclosed 21,137
Fund, L.P.
Cumberland Valve Fair Harbor undisclosed 6,780
& Fitting Inc. Capital LLC
Designs of Fair Harbor undisclosed 6,216
Jeannine Burger Capital LLC
Ltd.
M&M Labeling Fair Harbor undisclosed 5,649
& Cooling Systems Capital LLC
Wisk-Air Corre Opportunities undisclosed 5,481
Helicopters, Ltd. Fund, L.P.
Hughes Auto & U.S. Debt Recovery undisclosed 2,935
Truck Parts, Inc. IV, LLC
BP Staff Inc. U.S. Debt Recovery undisclosed 2,355
IV, LLC
Heil of Texas U.S. Debt Recovery undisclosed 1,539
IV, LLC
About AbitibiBowater
AbitibiBowater (OTC: ABWTQ) 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. 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.
The Company and several 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: Wachovia Directed to Release Trust Assets
-------------------------------------------------------------
U.S. Bankruptcy Judge Kevin Carey directed Wachovia Bank, N.A., as
trustee to the Amended and Restated Bowater Incorporated Benefit
Plan Grantor Trust, to release the Trust assets to the
AbitibiBowater Inc. and its units' estates for the benefit of the
Debtors' general creditors.
The Bowater Benefit Plan Grantor Trust, effective as of June 6,
2000, was established pursuant to the Trust Agreement. The Trust
Agreement covers (i) the Bowater Incorporated Compensatory
Benefits Plan, as amended, which consists of two separate plans;
(ii) the Bowater Incorporated Benefits Equalization Plan, as
amended; and (iii) the Supplemental Benefit Plan for Designated
Employees of Bowater Incorporated and Affiliated Companies, as
amended.
The Trust Assets have a value of approximately $17.6 million, if
the life insurance policies are valued on a cash surrender basis
as of June 30, 2009; and approximately $41.8 million, if the life
insurance policies are valued on a death benefit payout basis
with cash investment assets valued as of March 31, 2010,
according to the Debtors.
Consistent with a certification filed with the Court, Judge Carey
also authorized the Debtors to keep the life insurance policies
in place and preserve their value on a death benefit payout
basis, including the payment of any premiums or change in
beneficiaries.
The Court, however, neither requires nor prevents the Debtors
from exercising their rights to obtain the cash surrender value
of the Policies.
According to the terms of the Trust Agreement, Bowater's Chapter
11 filing suspended the Benefit Plan Trustee's ability to pay
benefits to the Compensation Plan Participants and rendered the
Trust assets deliverable to Bowater. In the event of Bowater's
bankruptcy or insolvency, all Trust Assets are subject to the
claims of Bowater's general creditors, the Debtors noted.
About AbitibiBowater
AbitibiBowater (OTC: ABWTQ) 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. 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.
The Company and several 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).
ALL YOU: Voluntary Chapter 11 Case Summary
------------------------------------------
Debtor: All You, LLC
P.O. Box 8111
Fayetteville, AR 72703
Bankruptcy Case No.: 10-74049
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
Western District of Arkansas (Fayetteville)
Debtor's Counsel: Donald A. Brady, Jr., Esq.
Blair & Brady Attorneys At Law
109 N. 34th Street
P.O. Box 1715
Rogers, AR 72756
Tel: (479) 631-0100
Fax: (479) 631-8052
E-mail: dblaw0887@hotmail.com
Scheduled Assets: $10,983,200
Scheduled Debts: $5,513,647
The Company did not file a list of creditors together with its
petition.
The petition was signed by Hossein Kouchehbagh, president.
ALLIS-CHALMERS: Posts $6-Million Net Loss for Q2 2010
-----------------------------------------------------
Allis-Chalmers Energy Inc. said revenues for the second quarter of
2010 increased 41.0% to $158.6 million compared to $112.5 million
for the second quarter of 2009 and Adjusted EBITDA increased 159%
in the quarter to $27.2 million compared to $10.5 million for the
second quarter of 2009.
Allis-Chalmers reported a net loss attributed to common
stockholders for the second quarter of 2010 of $6.0 million, or
$0.08 per diluted share, compared to a net loss of $125,000, or
$0.00 per diluted share in the second quarter of 2009.
Allis-Chalmers reported a net loss attributed to common
stockholders for the first six months of 2010 of $16.2 million, or
$0.23 per diluted share, compared to a net loss of $2.7 million,
or $0.08 per diluted share for the first six months of 2009.
Results for the second quarter and the first six months of 2010
included the impact of a strike in Argentina which negatively
affected pre-tax income by an estimated $1.7 million.
At June 30, 2010, the Company had total assets of $1.080 billion
against total liabilities of $610.134 million, resulting in
stockholders' equity of $470.440 million.
A full-text copy of the Company's earnings release is available at
no charge at http://ResearchArchives.com/t/s?67c8
About Allis-Chalmers
Based in Houston, Texas, Allis-Chalmers Energy Inc. (NYSE: ALY) --
http://www.alchenergy.com/-- provides services and equipment to
oil and natural gas exploration and production companies,
domestically primarily in Texas, Louisiana, New Mexico, Oklahoma,
Arkansas, offshore in the Gulf of Mexico, and internationally,
primarily in Argentina, Brazil and Mexico. Allis-Chalmers
provides directional drilling services, casing and tubing
services, underbalanced drilling, production and workover services
with coiled tubing units, rental of drill pipe and blow-out
prevention equipment, and international drilling and workover
services.
* * *
As reported by the Troubled Company Reporter on April 6, 2010,
Standard & Poor's Ratings Services revised its outlook on Allis-
Chalmers to stable from negative. At the same time, S&P affirmed
the 'B-' corporate credit rating. S&P also affirmed the 'B-'
issue-level ratings on the company's $255 million 9% senior notes
due 2014 and the $250 million 8.5% senior notes due 2017. The
recovery ratings remain unchanged at '4', reflecting S&P's
expectation of average (30% to 50%) recovery in the event of
default.
"The change in outlook is due to S&P's expectations that
conditions in the oilfield services sector have improved, albeit
tenuous, and that Allis-Chalmers' financial performance will
likely strengthen over the course of 2010," said Standard & Poor's
credit analyst Patrick Lee. Also, the company faces a decreased
threat of violating its financial covenants as a result of
amendments to its credit facility.
ALLY FINANCIAL: Swings to $565-Mil. Net Income for Q2 2010
----------------------------------------------------------
Ally Financial Inc. reported net income of $565 million for the
second quarter of 2010, compared to a net loss of $3.9 billion for
the second quarter of 2009. Core pre-tax income, which reflects
income from continuing operations before taxes and original issue
discount amortization expense from bond exchanges, totaled
$738 million in the second quarter of 2010, compared to a core
pre-tax loss of $1.3 billion in the comparable prior year period.
Results were also positively impacted by certain factors that may
moderate over the coming quarters, including gains on the sale of
auto loans under forward flow agreements, lease portfolio
remarketing gains resulting from high used vehicle prices, legacy
mortgage loan sale gains and gains from the insurance investment
portfolio.
Ally said the ResCap legal entity reported its second consecutive
profitable quarter, as second quarter 2010 net income totaled
$364 million, compared to a net loss of $841 million in the
comparable prior year period. Pre-tax income from continuing
operations was $263 million for the 2010 second quarter, compared
to a pre-tax loss from continuing operations of $205 million in
the second quarter of 2009. The entity required no additional
capital or liquidity support in the 2010 second quarter.
"Ally made substantial progress in the second quarter with all
operating segments posting a profit," said Ally Chief Executive
Officer Michael A. Carpenter. "Ally is a fundamentally stronger
organization today than it was a year ago, and we are proud of our
central role in the recovery of the U.S. auto industry. As a
result of Ally's quick action and the U.S. government's financial
support, approximately 1,400 Chrysler dealers, employing an
estimated 70,000 people, were able to keep their businesses open
and contribute to the stability of their communities.
"Over the past twelve months Ally has financed 82 percent of the
vehicles sold to nearly 5,000 GM and Chrysler dealers in the U.S.
In addition, the company financed 700,000 new vehicles for GM and
Chrysler consumers within the last year," said Mr. Carpenter.
"In the first half of 2010, Ally's new consumer auto originations
in the U.S. more than doubled compared to the first two quarters
of last year to about 400,000 units, reflecting about eight times
that of any other lender and demonstrating the company's
leadership as a full service auto finance provider," he concluded.
In charts furnished to securities analysts, Ally said assets total
$176.8 billion against $156.0 billion in total liabilities,
resulting in equity of $20.7 billion as of June 30, 2010.
In its press statement, Ally said consolidated cash and cash
equivalents were $14.3 billion as of June 30, 2010, compared to
$14.7 billion at March 31, 2010. Included in the consolidated
cash and cash equivalents balance are: $621 million at ResCap;
$2.6 billion at Ally Bank, which excludes certain intercompany
deposits; and $823 million at the insurance businesses.
Ally's total equity at June 30, 2010, was $20.8 billion, compared
to $20.5 billion at March 31, 2010. Ally's preliminary second
quarter 2010 tier 1 capital ratio was 15.3%, compared to 14.9% in
the prior quarter. Ally's tier 1 capital ratio improved due to
net income, the sale of assets and the continued run-off of the
lease portfolio, partially offset by growth in consumer and
commercial receivables.
A full-text copy of Ally's earnings release is available at no
charge at http://ResearchArchives.com/t/s?67ce
A full-text copy of Ally's charts furnished to securities analysts
is available at no charge at http://ResearchArchives.com/t/s?67cf
About Ally Financial
Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/--
is one of the world's largest automotive financial services
companies. The company offers a full suite of automotive
financing products and services in key markets around the world.
Ally's other business units include mortgage operations and
commercial finance, and the company's subsidiary, Ally Bank,
offers online retail banking products. With more than
$176 billion in assets as of June 30, 2010, Ally operates as a
bank holding company.
GMAC obtained a $17 billion bailout from the U.S. government in
exchange for a 56.3% stake. Private equity firm Cerberus Capital
Management LP keeps 14.9%, while General Motors Co. owns 6.7%.
The Company has tapped Goldman Sachs Group Inc. and Citigroup Inc.
to advise on a range of issues, including strategic alternatives
for the mortgage business and repayment of taxpayer funds.
Ally Financial carries "C" short term issuer credit ratings, and
"B" long term issuer credit ratings, all with stable outlook, from
Standard & Poor's. It has a "B3" issuer rating, with stable
outlook, from Moody's. It has a "B" issuer default rating, with
positive outlook, from Fitch.
AMERICA'S SUPPLIERS: Board Names New Member to Fill Vacancy
-----------------------------------------------------------
The Board of Directors of America's Suppliers Inc. appointed Marc
Joseph as a member of the board of directors to fill the vacancy
resulting from the untimely passing of Peter Engel.
In addition, the Board of Directors of the Company appointed
Mr. Joseph as President and Michael Moore as Treasurer and
Secretary of the Company to fill the executive officer vacancies
resulting from Mr. Engel's death.
Marc Joseph has been President of DollarDays International, Inc.
since its inception in 1999. From 1997 to 2002, Mr. Joseph
founded and built Rebs Corporation into an 11 store chain of hair
salons, which he ultimately sold. Prior to Rebs Corporation, Mr.
Joseph held several progressive executive positions in retailing
and discount merchandising. He holds a degree in Business
Administration from Miami University.
Mr. Moore joined DollarDays in March 2007 as Controller and was
promoted to Chief Financial Officer in late 2007. From 1999 to
2007, he was employed by the Safeway Corporation, holding several
positions in finance and operations, most recently as Controller
of Safeway's Arizona ice cream facility. Prior to joining
Safeway, Mr. Moore served as CFO of Vita Bran, a privately held
pet food manufacturer. Mr. Moore holds a Bachelor of Science
degree in Business with an emphasis in Accounting granted in 1983
from the University of the Pacific.
About America's Suppliers
Scottsdale, Ariz.-based America's Suppliers, Inc. through its
wholly-owned subsidiary DDI Inc., develops software programs that
allow the Company to provide general merchandise from third party
manufacturers and suppliers for resale to businesses through the
Company's Web site at http://www.DollarDays.com
The Company's balance sheet as of March 31, 2010, showed
$1,243,385 in assets and $1,574,646 of liabilities, for a
shareholders' deficit of $331,261.
As reported in the Troubled Company Reporter on March 26, 2010,
MaloneBailey, LLP, in Houston, expressed substantial doubt about
the Company's ability to continue as a going concern following the
Company's 2009 results. The independent auditors noted that
Company has suffered an accumulated deficit of $6,949,006 as of
December 31, 2009.
AMERICAN INTERNATIONAL: MetLife Prepares for ALICO Shares Sale
--------------------------------------------------------------
On March 7, 2010, American International Group Inc., entered into
a Stock Purchase Agreement with ALICO Holdings LLC, a special
purpose vehicle formed by AIG and the Federal Reserve Bank of New
York, and MetLife Inc., pursuant to which MetLife agreed to
acquire American Life Insurance Company, a wholly owned subsidiary
of ALICO Holdings, and Delaware American Life Insurance Company, a
wholly owned subsidiary of AIG, for approximately $15.5 billion in
cash and equity securities of MetLife.
On August 2, 2010, MetLife filed with the Securities and Exchange
Commission a prospectus supplement in connection with its public
offering of MetLife securities.
The MetLife Disclosure included certain financial statements and
other information relating to ALICO and DelAm as of and for the
year ended November 30, 2009 and as of May 31, 2010 and for the
six months ended May 31, 2010 and May 31, 2009.
A full-text copy of MetLife's supplement:
http://ResearchArchives.com/t/s?67bc
http://ResearchArchives.com/t/s?67bd
Founded in 1921, ALICO is one of the largest and most diversified
international life insurance companies in the world, providing
consumers and businesses with products and services for life
insurance, accident and health insurance, retirement and wealth
management solutions. For the six months ended May 31, 2010 and
the year ended November 30, 2009, the Alico Business had total
revenues of $7.0 billion and $14.1 billion, respectively, and net
income of $694 million and $807 million, respectively. As of May
31, 2010 and November 30, 2009, the Alico Business had total
assets of $109.6 billion and $113.0 billion, respectively, and
stockholders' equity of $13.2 billion and $12.7 billion,
respectively.
About American International
Based in New York, American International Group, Inc., is an
international insurance organization with operations in more than
130 countries and jurisdictions. AIG companies serve commercial,
institutional, and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In
addition, AIG companies provide life insurance and retirement
services around the world. AIG common stock is listed on the New
York Stock Exchange, as well as the stock exchanges in Ireland and
Tokyo.
In September 2008, AIG experienced a liquidity crunch when its
credit ratings were downgraded below "AA" levels by Standard &
Poor's, Moody's Investors Service and Fitch Ratings. In September
2008, the Federal Reserve Bank created an $85 billion credit
facility to enable AIG to meet increased collateral obligations
consequent to the ratings downgrade, in exchange for the issuance
of a stock warrant to the Fed for 79.9% of the equity of AIG. The
credit facility was eventually increased to as much as
$182.5 billion.
AIG has sold a number of its subsidiaries and other assets to pay
down loans received from the U.S. government, and continues to
seek buyers of its assets.
AMERICAN SAFETY: Has Interim Approval for Financing
---------------------------------------------------
Carla Main at Bloomberg News reports that American Safety Razor
Co. won interim approval from the U.S. Bankruptcy Court in
Wilmington, Delaware, to borrow up to $25 million, including
$7.5 million in letter-of-credit financing.
According to the report, in the order signed July 30, U.S.
Bankruptcy Judge Mary F. Walrath also gave the Debtor permission
to use its cash collateral and take other steps "to provide
certain protections" to first-lien lenders who may see a
"diminution in the value" of their lien interests as a result of
the debtor-in-possession financing.
A hearing to consider final approval of the DIP financing is set
for Aug. 25. Objections are due by Aug. 18.
About American Safety
American Safety Razor Company, LLC, doing business as Personna
American Safety Razor, is a maker of private-label shaving razors
and blades. Its products are sold through mass merchandisers,
drug stores and supermarkets under retailer names as well as under
ASR's brands (including Magnum, X5, Matrix3, Mystique, and
Personna). In addition to shaving products, ASR manufactures and
distributes blades and bladed hand tools for a variety of
industrial uses and specialty industrial and medical blades. The
Company has roots going back to 1875.
American Safety, along with affiliates, filed for Chapter 11
protection in July 2010 (Bankr. D. Del. Case No. 10-12351). Mark
J. Thompson, Esq., and Morris J. Massel, Esq., at Simpson Thacher
& Bartlett LLP, serve as bankruptcy attorneys. Howard A. Cohen,
Esq., at Drinker Biddle & Reath LLP, is co-counsel. In addition,
Lazard Middle Market LLC is the investment banker and Kurtzman
Carson Consultants LLC is the claims and notice agent.
American Safety estimated assets at $100 million to $500 million
and debts at $500 million to $1 billion in its Chapter 11
petition.
AMK ENTERPRISES: Case Summary & 2 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: AMK Enterprises,LLC
809 Almadin
San Antonio, TX 78258
Bankruptcy Case No.: 10-52899
Chapter 11 Petition Date: August 1, 2010
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Judge: Leif M. Clark
Debtor's Counsel: Martin Warren Seidler, Esq.
11107 Wurzbach Rd, Suite 504
San Antonio, TX 78230
Tel: (210) 694-0300
E-mail: seidlerlaw@yahoo.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 2 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/txwb10-52899.pdf
The petition was signed by Amina Maliek, managing
member/president.
ARVINMERITOR INC: Posts $3 Million Net Loss for June 30 Quarter
---------------------------------------------------------------
ArvinMeritor Inc. reported financial results for its third fiscal
quarter ended June 30, 2010.
Quarterly highlights include:
* Sales were $1.3 billion, up $333 million or 35 percent, from
the same period last year.
* Income before taxes was $31 million, compared to a loss of
$21 million, in the third quarter of fiscal year 2009.
* Net loss was $3 million, compared to a net loss of $164
million, in the prior year's third quarter.
* Adjusted EBITDA was $76 million, up $48 million from the
same period last year.
* Cash flow from operations was $47 million in the third
quarter of fiscal year 2010, compared to $99 million in the
same period last year.
* Positive free cash flow for the fifth consecutive quarter of
$33 million in the third quarter of fiscal year 2010.
The Company's balance sheet at June 30, 2010, showed $2.8 billion
in total assets, $1.0 billion in long-term debt, $1.0 billion in
retirement benefits, and $324.0 million in other liabilities, for
$909.0 million in total stockholders' deficit.
"Higher revenues this quarter -- up 35 percent year-over-year --
indicate continued strength in the emerging markets and
improvements in our North American and European customer markets,"
said Chip McClure, chairman, CEO and president. "In addition, our
adjusted EBITDA margin doubled from the prior year's third fiscal
quarter to six percent reflecting strong conversion of incremental
revenue to earnings through tight cost controls."
Third-Quarter Fiscal Year 2010 Results
For the third quarter of fiscal year 2010, ArvinMeritor posted
sales from continuing operations of $1.3 billion, an increase of
approximately 35 percent from the same period last year led by
stronger truck demand in Europe and the Americas. Income before
taxes was $31 million, compared to a loss of $21 million, in the
third quarter of fiscal year 2009.
Net income from continuing operations was $1 million or $0.01 per
diluted share, compared to a net loss from continuing operations
of $34 million or $0.47 per diluted share, in the same period last
year.
Adjusted income from continuing operations was $2 million or $0.02
per diluted share, compared to an adjusted loss from continuing
operations of $24 million or $0.33 per diluted share, in the same
period last year. Adjusted income from continuing operations
reflects an effective tax rate of approximately 82 percent driven
by strong earnings in the emerging markets and the ongoing impact
of valuation allowances in the United States and Europe.
After the impact of discontinued operations, the net loss was $3
million, compared to a net loss of $164 million in the prior
year's third fiscal quarter.
Adjusted EBITDA was $76 million, up $48 million from the same
period last year. The Company said it had strong margin
conversion on incremental sales despite the return of temporary
cost reductions implemented in fiscal year 2009 and the reduced
demand for certain military OEM and service products from 2009.
Free cash flow for the third quarter of fiscal year 2010 was $33
million, a decrease of $40 million compared to the prior year's
third fiscal quarter. Free cash flow in the prior year's third
fiscal quarter was significantly benefited by lower working
capital due to the sharp decline in revenues during fiscal year
2009.
Outlook
For the fourth quarter of fiscal year 2010, the Company
anticipates:
* Revenue to be slightly lower due to seasonal customer
shutdowns.
* Adjusted EBITDA to be slightly lower.
* Adjusted income from continuing operations to be slightly
lower.
* Free cash flow before factoring and restructuring to be
slightly negative.
* Free cash flow to be slightly negative primarily due to the
company's semi-annual interest payment on its fixed debt
securities.
"We are optimistic about the positive volume trends we are seeing
both in Europe and North America, with the exception of military
products," said McClure. "In addition, we are pleased with the
continuing market strength in South America, China and India -
particularly as we are taking actions to grow our business in
those regions of the world. We are focused on continuing to
convert higher revenues to earnings as we strive to achieve our
long-term EBITDA margin target of 10 percent."
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?67e2
About ArvinMeritor Inc.
Based in Troy, Michigan, ArvinMeritor, Inc. --
http://www.arvinmeritor.com/-- is a premier global supplier of a
broad range of integrated systems, modules and components to the
motor vehicle industry. The Company marks its centennial
anniversary in 2009, celebrating a long history of 'forward
thinking.' The company serves commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets, and light vehicle manufacturers.
The Company's balance sheet at March 31, 2010, showed
$2.769 billion in total assets and $3.646 billion in total
liabilities, for a $877.0 million stockholders' deficit.
In July 2010, Moody's Investors Service raised the Corporate
Family and Probability of Default ratings of ArvinMeritor, Inc.,
to B3 from Caa1. Moody's noted that about 52% of the company's
fiscal 2010 revenues to date are from North America, where demand
is expected to strengthen in the second half of the year. But
with, approximately 21% of the company's revenue from Europe, a
slower pace of economic recovery is expected to constrain overall
growth. Tight credit markets also may limit near-term growth in
commercial vehicle purchases.
AVENTINE RENEWABLE: Finds Investors for Add'l $50MM for Sr. Notes
-----------------------------------------------------------------
Aventine Renewable Energy Holdings, Inc. announced Monday plans to
commence a private offering of an additional $50 million in
aggregate principal amount of its 13% senior secured notes due
2015. The Company intends to use the gross proceeds of the
proposed offering for transaction expenses and either applied to
replenish funds previously used to construct or acquire equipment
and real estate pledged to secure the notes or deposited at
closing with the collateral agent pending use to construct or
acquire equipment and real estate pledged to secure the notes.
Certain significant investors of the Company have agreed to
purchase any unsubscribed-for notes up to an aggregate principal
amount of $50 million, subject to certain conditions.
The notes to be offered have not been registered under the
Securities Act of 1933, as amended, or any state securities laws.
About Aventine Renewable
Pekin, Illinois-based Aventine Renewable Energy Holdings, Inc.
(Pink Sheets: AVRN) -- http://www.aventinerei.com/-- is a
producer and marketer of ethanol to many leading energy companies
in the United States. In addition to ethanol, Aventine also
produces distillers grains, corn gluten meal, corn gluten feed,
corn germ and brewers' yeast.
The Company and its affiliates filed for Chapter 11 on April 7,
2009 (Bankr. D. Del. Lead Case No. 09-11214). James L. Patton,
Esq., Joel A. Waite, Esq., Matthew Barry Lunn, Esq., and Ryan M.
Bartley, Esq., at Young, Conaway, Stargatt & Taylor, serve as
bankruptcy counsel to the Debtors. Dennis A. Meloro, Esq., and
Donald J. Detweiler, Esq., at Greenberg Traurig, LLP, represent
the official committee of unsecured creditors. When it
filed for bankruptcy protection from its creditors, Aventine
Renewable estimated between $100 million and $500 million each in
assets and debts.
The Court confirmed on February 24, 2010, the Company's plan of
reorganization. The Company emerged from Chapter 11 on March 15,
2010.
BAILEY'S PUB: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Bailey's Pub, Inc
2110 Overland Avenue, Suite 117
Billings, MT 59102
Tel: (406) 652-1544
Bankruptcy Case No.: 10-61884
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
District of Montana (Butte)
Judge: Ralph B. Kirscher
Debtor's Counsel: Allen Beck, Esq.
Law Offices of Allen Beck
505 W. Main Street, Suite 405
Lewistown, MT 59457
Tel: (406) 538-8380
E-mail: becklaw@midrivers.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 Philip Keith, president.
BAYOU GROUP: Goldman Sachs' Suit Backed by Industry Group
---------------------------------------------------------
Bob Van Voris at Bloomberg News reports that Goldman Sachs Group
Inc., got the support from the Securities Industry and Financial
Markets Association in its bid to overturn a $20.5 million
arbitration award to creditors of the failed hedge-fund Bayou
Group LLC.
According to Bloomberg, the association, which says it represents
the interests of "hundreds of securities firms, banks and asset
managers," filed a brief in federal court in New York on August 5
in support of Goldman Sachs, claiming the case "has potentially
industrywide implications, especially for clearing brokers."
The creditors claim Goldman Sachs facilitated the $400 million
fraud committed by Bayou co-founder Samuel Israel, which led to
the firm's collapse in May 2006. The Financial Industry
Regulatory Authority, the independent regulatory group for the
securities industry, on June 24 issued a decision in favor of
Bayou's creditors in an arbitration targeting Goldman Sachs
Execution & Clearing LP for its role as the prime broker and
clearing broker for Bayou's hedge funds.
Goldman commenced a lawsuit before the U.S. District Court for the
Southern District of New York (Case No. 10-CV-5622) against the
Official Committee of Unsecured Creditors of Bayou last month to
overturn the decision.
About Bayou Group
Based in Chicago, Illinois, Bayou Group LLC operated and managed
hedge funds. The hedge fund that turned out to be a Ponzi scheme
and a receiver was subsequently appointed. The Company and its
affiliates were sent to Chapter 11 on May 30, 2006 (Bankr.
S.D.N.Y. Lead Case No. 06-22306) to pursue recoveries for the
benefit of defrauded investors. Elise Scherr Frejka, Esq., at
Dechert LLP, represents the Debtors in their restructuring
efforts. Joseph A. Gershman, Esq., and Robert M. Novick, Esq., at
Kasowitz, Benson, Torres & Friedman, LLP, represent the Official
Committee of Unsecured Creditors. Kasowitz, Benson, Torres &
Friedman LLP is counsel to the Unofficial Committee of the Bayou
Onshore Funds. Sonnenschein Nath & Rosenthal LLP represents
certain investors. When the Debtors filed for protection from
their creditors, they reported estimated assets and debts of more
than $100 million.
Bayou has filed lawsuits against former investors who allegedly
received fictitious profits and an inequitably large return of
their principal investments. Jeff J. Marwil, Esq., at Jenner &
Block, was appointed on April 28, 2006, as the federal equity
receiver. The receiver commenced adversary proceedings to recover
certain fraudulent transfers made by Bayou Group to investors.
The Bayou fraud resulted in three guilty pleas. Daniel Marino, the
head of finance, was sentence to a 20-year prison term despite his
cooperation with prosecutors. James Marquez, a Bayou co-founder,
was sentenced to four years and three months in prison and told to
pay $6.2 million in restitution. Another founder, Samuel Israel
III, was sentenced to 20 years following his guilty plea in
September 2005.
BERNARD MADOFF: Picard Wins $180-Mil. Judgment vs. Vizcaya
----------------------------------------------------------
Erik Larson at Bloomberg News reports that Irving H. Picard, the
trustee for Bernard Madoff's investment-advisory business, won a
$180 million default judgment against Vizcaya Partners Ltd. over
claims the hedge fund profited from the conman's fraud.
According to the report, Bankruptcy Judge Burton Lifland entered a
default judgment after Vizcaya failed to respond to the lawsuit.
The lawsuit, Bloomberg relates, sought to recover money Vizcaya
withdrew from its Madoff account less than four months before
Mr. Madoff's December 2008 arrest. The default judgment applies
to Vizcaya and affiliates Zeus Partners Ltd., Bermuda-based Siam
Capital Management and the Cayman Islands-based Asphalia Fund Ltd.
Mr. Larson notes that recovery of Vizcaya's damages may hinge on a
ruling by the Supreme Court of Gibraltar, which is holding about
$74 million on behalf of the hedge fund's bank, Banque Jacob Safra
(Gibraltar) Ltd. The default doesn't apply to the bank, which was
also sued by Mr. Picard and is challenging the claims. The
Gibraltar court took possession of Vizcaya funds through a case
filed against the hedge fund by financial authorities in the U.K.
territory on the southern tip of Spain.
According to Bloomberg, Mr. Picard has recovered more than $1.5
billion for Madoff victims. His clawback lawsuits seek another
$15 billion from funds that funneled money to the fraud, as well
as Mr. Madoff's friends and family.
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.)
BLACKHAWK, INC: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Blackhawk, Inc
2110 Overland Avenue, Suite 117
Billings, MT 59102
Tel: (406) 652-1544
Bankruptcy Case No.: 10-61886
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
District of Montana (Butte)
Judge: Ralph B. Kirscher
Debtor's Counsel: Allen Beck, Esq.
Law Offices of Allen Beck
505 W. Main Street, Suite 405
Lewistown, MT 59457
Tel: (406) 538-8380
E-mail: becklaw@midrivers.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 Philip Keith, president.
BRENT JACOBS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Brent P. Jacobs
dba Woods & Jacobs Construction
dba Woods Flooring & Ceramic Tile
Angela D. Jacobs
aka Angela D Fisher
1115 Middlebrook Court
Forest, VA 24551
Bankruptcy Case No.: 10-62210
Chapter 11 Petition Date: July 31, 2010
Court: United States Bankruptcy Court
Western District of Virginia (Lynchburg)
Judge: William E. Anderson
Debtor's Counsel: Stephen E. Dunn, Esq.
201 Enterprise Drive, Suite A
Forest, VA 24551
Tel: (434) 385-4850
Fax: (434) 385-8868
E-mail: stephen@stephendunn-pllc.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/vawb10-62210.pdf
The petition was signed by the Joint Debtors.
CATALYST PAPER: Analyst Sees Below-Par Debt Swap Amid Bond Drop
---------------------------------------------------------------
Frederic Tomesco, writing for Bloomberg News, reports that
Catalyst Paper Corp. bonds have fallen to levels that suggest the
Company may attempt to force investors to exchange the notes at
prices below par to reduce its C$867.5 million ($852 million) of
debt.
Bloomberg, citing Trace, the bond-price reporting system of the
Financial Industry Regulatory Authority, reports that Catalyst's
7.38% senior unsecured note, due in March 2014, traded at 45 cents
on the dollar on August 4, down from 62 cents on December 23.
Bloomberg also relates Catalyst's 11% senior secured bond, due in
December 2016, traded at 77.25 cents on July 12, to yield 16.9%.
"The market is pricing in the possibility of a below-par exchange
offer at some point within the next year if results don't start to
improve significantly," Brian Bogart, an analyst at KDP Investment
Advisors Inc., told Bloomberg in a telephone interview from
Montpelier, Vermont. "We've seen those kinds of exchange offers
with other distressed companies. That's why the bonds are priced
where they are."
Bloomberg further relates Mr. Hon said that Catalyst's debt
repayment schedule works in its favor. In the next four years,
Catalyst has $35.5 million in 8.63% senior notes coming due in
June 2011, and $250 million of 7.38% notes due in March 2014.
DBRS rates Catalyst debt CCC, its second-lowest rating.
"The bond is very speculative," Mr. Hon told Bloomberg. "The
likelihood of the company surviving is not high, but it doesn't
mean that they are doomed. They have time to adjust, especially if
the economy improves and newsprint prices pick up."
According to Bloomberg, Lyn Brown, a spokeswoman for Catalyst,
said August 4 that a debt exchange is "not part of our plans at
the moment."
As reported by the Troubled Company Reporter on August 4, 2010,
Catalyst Paper recorded a net loss of $368.4 million on sales of
$299.4 million for the second quarter of 2010. Results were
significantly impacted by after-tax impairment and closure costs
of $302.0 million on the permanent closure of the Elk Falls and
Paper Recycling Divisions.
During the second quarter, Catalyst closed the private placement
of US$110 million of Class B, 11% senior secured notes due
December 15, 2016, at an offering price of 86% of the principal
amount. Net proceeds were $93.4 million after financing costs of
approximately $5.0 million. At quarter-end, US$35.5 million of
8.625% senior notes due June 2011 were reclassified from long-term
debt to current liabilities.
About Catalyst Paper
Based in Richmond, British Columbia, in Canada, Catalyst Paper
Corporation (TSX:CTL) manufactures diverse specialty mechanical
printing papers, newsprint and pulp. Its customers include
retailers, publishers and commercial printers in North America,
Latin America, the Pacific Rim and Europe. With six facilities
located in British Columbia and Arizona, Catalyst has a combined
annual production capacity of 2.5 million tonnes.
* * *
In mid-March 2010, Moody's Investors Service downgraded Catalyst's
Corporate Family Rating to Caa1 from B3. Catalyst's CFR downgrade
anticipates a marked deterioration in the company's financial
performance over the coming year, with significant EBITDA erosion
compared to 2009 levels and negative free cash flow generation.
Standard & Poor's Ratings Services said it raised its long-term
corporate credit rating on Catalyst Paper Corp. to 'CCC+' from
'SD'. "The ratings on Catalyst Paper Corp. reflect S&P's view of
the company's highly leveraged capital structure, history of weak
profitability, fiber supply issues, and its participation in
cyclical commodity markets," said Standard & Poor's credit analyst
Jatinder Mall. In Standard & Poor's opinion, the company's
revenue diversity and improving cost profile partially mitigate
these risks.
CHARTER COMMS: Appeals on Plan Confirmation in Briefing Phase
-------------------------------------------------------------
Charter Communications, Inc., said in a regulatory filing with the
Securities and Exchange Commission that the appeals from the order
confirming its chapter 11 plan of reorganization are in the
briefing phase. The appeals are before the U.S. District Court
for the Southern District of New York.
On March 27, 2009, when Charter filed for Chapter 11, JPMorgan
Chase Bank, N.A., for itself and as Administrative Agent under the
Charter Operating Credit Agreement, filed an adversary proceeding
in Bankruptcy Court against Charter Communications Operating, LLC,
and CCO Holdings LLC seeking a declaration that there have been
events of default under the Charter Operating Credit Agreement.
On May 7, 2009, Charter filed a Joint Plan of Reorganization and a
related disclosure statement with the Bankruptcy Court. JPMorgan,
as well as other parties, objected. The Bankruptcy Court jointly
held 19 days of trial in the JPMorgan Adversary Proceeding and on
the objections to the Plan.
The Plan was confirmed by order of the Bankruptcy Court on
November 17, 2009, over the objections of JPMorgan and various
other objectors. The Court also entered an order ruling in favor
of Charter in the JPMorgan Adversary Proceeding.
Several objectors attempted to stay the consummation of the Plan,
but those motions were denied by the Bankruptcy Court and the U.S.
District Court for the Southern District of New York.
Charter consummated the Plan on November 30, 2009 -- completing a
financial restructuring that reduced debt by $8 billion -- and
reinstated the Charter Operating Credit Agreement and certain
other debt of its subsidiaries.
Six appeals were filed before the District Court relating to
confirmation of the Plan. The parties initially pursuing appeals
were:
(i) JPMorgan;
(ii) Wilmington Trust Company, as indenture trustee for the
holders of the 8% Senior Second Lien Notes due 2012 and
8.375% senior second lien notes due 2014 issued by and
among Charter Operating and Charter Communications
Operating Capital Corp. and the 10.875% senior second
lien notes due 2014 issued by and among Charter Operating
and Charter Communications Operating Capital Corp.;
(iii) Wells Fargo Bank, N.A., in its capacities as successor
Administrative Agent and successor Collateral Agent for
the third lien prepetition secured lenders to CCO
Holdings under the CCO Holdings credit facility;
(iv) Law Debenture Trust Company of New York, as the Trustee
with respect to the $479 million in aggregate principal
amount of 6.50% convertible senior notes due 2027 issued
by Charter which are no longer outstanding following
consummation of the Plan;
(v) R2 Investments, LDC, an equity interest holder in
Charter; and
(vi) certain plaintiffs representing a putative class in a
securities action against three Charter officers or
directors filed in the United States District Court for
the Eastern District of Arkansas -- Iron Workers Local
No. 25 Pension Fund, Indiana Laborers Pension Fund, and
Iron Workers District Council of Western New York and
Vicinity Pension Fund, in the action styled Iron Workers
Local No. 25 Pension Fund v. Allen, et al., Case No.
4:09-cv-00405-JLH (E.D. Ark.).
Charter Operating amended its senior secured credit facilities
effective March 31, 2010. In connection with the closing of these
amendments, each of Bank of America, N.A. and JPMorgan, for itself
and on behalf of the lenders under the Charter Operating senior
secured credit facilities, agreed to dismiss the pending appeal of
the Confirmation Order and to waive any objections to the
Confirmation Order. The lenders filed their Stipulation of that
dismissal and waiver of objections and it was signed by the judge
on April 1, 2010 and the case dismissed. On December 3, 2009,
Wilmington Trust withdrew its notice of appeal. On April 14,
2010, Wells Fargo filed their Stipulation of Dismissal of their
appeal on behalf of the lenders under the CCO Holdings credit
facility. This Stipulation was signed by the judge on April 19,
2010 and the case dismissed.
According to Charter, the remaining appeals by Law Debenture
Trust, R2 Investments and the securities plaintiffs are in the
briefing phase. The Company cannot predict the ultimate outcome
of the appeals.
About Charter Communications
Based in St. Louis, Missouri, Charter Communications, Inc. (Pink
OTC: CHTRQ) -- http://www.charter.com/-- is a broadband
communications company and the fourth-largest cable operator in
the United States.
Charter Communications and more than a hundred affiliates filed
voluntary Chapter 11 petitions on March 27, 2009 (Bankr. S.D.N.Y.
Case No. 09-11435). The Company listed $13.65 billion in assets
against $24.5 billion in debts when it filed for bankruptcy.
Attorneys at Kirkland & Ellis LLP, in New York, served as
bankruptcy counsel to the Debtors.
CHARTER COMMS: Posts $81MM Net Loss in 2nd Qtr Out of Bankruptcy
----------------------------------------------------------------
Charter Communications, Inc., on Wednesday reported financial and
operating results for the three and six months ended June 30,
2010.
Charter said net loss attributable to its shareholders was
$81 million in the second quarter of 2010, compared to a loss of
$112 million in the second quarter of 2009. The improvement
resulted primarily from a reduction in reorganization costs
related to Charter's restructuring in 2009 offset by the decline
in income from operations in 2010, the elimination of net loss
allocated to non-controlling interest and a loss on extinguishment
of debt. Charter reported net loss per common share of $0.72 in
the second quarter of 2010, compared with a loss of $0.30 during
the same period last year. The increase in loss per common share
is a result of a decrease in the number of shares outstanding as a
result of recapitalization upon emergence from Chapter 11
proceedings under the U.S. Bankruptcy Code.
Charter said second quarter revenues were $1.770 billion, up 4.9%,
on a pro forma basis and $1.771 billion, up 4.8%, on an actual
basis, compared to the year-ago quarter, as the Company continued
to grow its Internet, phone, commercial and ad sales businesses.
Net loss attributable to Charter shareholders was $57 million for
the six months ended June 30, 2010, compared to a loss of
$317 million for the first six months of 2009. Charter reported
net loss per common share of $0.51 for the six months ended
June 30, 2010, compared to a loss of $0.84 in the same period last
year.
Pro Forma revenues for the six months ended June 30, 2010 were
$3.504 billion, up 4.7% year-over-year, and actual revenues for
the six months ended June 30, 2010 were $3.506 billion, up 4.6%
year-over-year.
As of June 30, 2010, Charter served approximately 5.3 million
customers, and the Company's 12.9 million revenue generating units
were comprised of 4.7 million basic video, 3.3 million digital
video, 3.2 million Internet and 1.7 million phone customers.
A full-text copy of Charter's earnings release is available at no
charge at http://ResearchArchives.com/t/s?67c5
A full-text copy of Charter's Form 10-Q is available at no charge
at http://ResearchArchives.com/t/s?67c6
About Charter Communications
Based in St. Louis, Missouri, Charter Communications, Inc. (Pink
OTC: CHTRQ) -- http://www.charter.com/-- is a broadband
communications company and the fourth-largest cable operator in
the United States.
Charter Communications and more than a hundred affiliates filed
voluntary Chapter 11 petitions on March 27, 2009 (Bankr. S.D.N.Y.
Case No. 09-11435). The Company listed $13.65 billion in assets
against $24.5 billion in debts when it filed for bankruptcy.
Attorneys at Kirkland & Ellis LLP, in New York, served as
bankruptcy counsel to the Debtors.
On May 7, 2009, Charter filed a Joint Plan of Reorganization and a
related disclosure statement with the Bankruptcy Court. The Court
confirmed the Plan on November 17, 2009. Charter consummated the
Plan on November 30, completing a financial restructuring that
reduced debt by $8 billion.
CHENIERE ENERGY: Andrea Botta Elected to Board of Directors
-----------------------------------------------------------
Cheniere Energy Inc. said that G. Andrea Botta has been elected to
its Board of Directors. Mr. Botta has served as President of
Glenco LLC, a private investment company since February 2006.
Prior to joining Glenco, Mr. Botta served as managing director of
Morgan Stanley from 1999 to February 2006. Before joining Morgan
Stanley, he was President of EXOR America, Inc. from 1993 until
September 1999 and for more than five years prior thereto, Vice
President of Acquisitions of IFINT-USA, Inc. Mr. Botta earned
a degree in economics and business administration from the
University of Torino in 1976. He currently serves on the board
of directors of Graphic Packaging Holding Company.
About Cheniere Energy
Cheniere Energy, Inc. (NYSE Amex: LNG) -- http://www.cheniere.com/
-- is a Houston-based energy company primarily engaged in LNG
related businesses, and owns and operates the Sabine Pass LNG
receiving terminal and Creole Trail pipeline in Louisiana.
Cheniere is pursuing related business opportunities both upstream
and downstream of the Sabine Pass LNG receiving terminal.
Cheniere is also the founder and holds a 30% limited partner
interest in another LNG receiving terminal.
At March 31, 2010, the Company had total assets of $2.73 billion
against total current liabilities of $92 million; long-term debt,
net of discount of $2.69 billion; long-term debt-related parties,
net of discount of $361 million; deferred revenue of $32.5
million; other non-current liabilities of $25.79 million; and non-
controlling interest of $210.5 million; resulting in total deficit
of $468.7 million
The Company has reported net losses for the past five years. It
incurred a net loss of $161.49 million in 2009, $372.96 million in
2008 and $196.58 million in 2007.
CLYDE CALLAHAM: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Clyde David Callaham
aka Lisa Jo Callaham and/or Zahler
aka C. David Callaham
aka Dave Callaham
aka David Callaham
aka Clyde Callaham
2023 NW Columbia Summit Drive
Camas, WA 98607
Bankruptcy Case No.: 10-46294
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Western District of Washington (Tacoma)
Judge: Paul B. Snyder
Debtor's Counsel: John D. Nellor, Esq.
Nellor Retsinas Crawford PLLC
1201 Main St.
P.O. Box 61918
Vancouver, WA 98666
Tel: (360) 695-8181
E-mail: jd@nellorlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Mr. Callaham.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Lewis Hanson $1,471,105
P.O. Box 766
Albany, OR 97321
West Coast Bank $504,000
P.O. Box 8000
Wilsonville, OR 97070
Columbia Credit Union $850,000
P.O. Box 324
Vancouver, WA 98666
West Coast Bank $152,738
Prime Mortgage $105,000
Key Bank $99,995
US Bank $88,446
ACC, LLC $42,377
Bank of America $47,300
West Coast Bank $45,675
Green Tree $18,807
Wells Fargo $16,322
Chase $15,645
Bank of America $14,829
Nordstrom $14,720
Beneficial $14,365
Bank of America $13,768
Key Bank $9,885
Chase $9,797
West Coast Bank $8,640
COMMUNITYSOUTH FINANCIAL: Undercapitalized, Q2 Loss at $2.2MM
-------------------------------------------------------------
CommunitySouth Financial Corporation filed its quarterly report on
Form 10-Q, reporting a net loss of $2.2 million on $1.6 million of
net interest income for the three months ended June 30, 2010,
compared to a net loss of $805,000 on $2.7 million of net interest
income for the same period of 2009.
The Company's balance sheet as of June 30, 2010, showed
$464.1 million in assets, $458.1 million in liabilities, and
$6.0 million in stockholders' equity.
As of June 30, 2010, the Company is deemed to be "significantly
undercapitalized." The Company did not meet the Consent Order
deadline to achieve and maintain a "well-capitalized" designation,
and therefore the Company submitted a revised capital plan to the
FDIC and the South Carolina Board of Financial Institutions on
July 28, 2010.
The Company has engaged financial advisors to assist the Company
in its efforts to raise additional capital, sell assets, and
explore other strategic alternatives to address its current and
expected liquidity and capital deficiencies. To date, those
efforts have not yielded any significant results.
A full-text copy of the Quarterly Report is available for free at:
About CommunitySouth Financial
Easley, South Carolina-based CommunitySouth Financial Corporation
is a bank holding company. The Company's wholly-owned subsidiary,
CommunitySouth Bank and Trust, commenced business on January 18,
2005, and is primarily engaged in the business of accepting
savings, demand, and time deposits and providing mortgage,
consumer and commercial loans to the general public.
As reported in the Troubled Company Reporter on March 4, 2010,
Elliott Davis, LLC, in Greenville, South Carolina, expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statements
for the year ended December 31, 2009. The independent auditors
noted that the Company's subsidiary bank, CommunitySouth Bank and
Trust, has significant capital and liquidity issues.
"The Company has incurred approximately $19 million and $3 million
in losses during 2009 and 2008, respectively, and the Bank is
"undercapitalized" under regulatory capital guidelines. In
addition to being "undercapitalized", effective February 23, 2010,
the Bank became subject to a regulatory Consent Order with the
Federal Deposit Insurance Corporation and the South Carolina Board
of Financial Institutions."
COMPANIA MEXICANA: Chapter 15 Case Summary
------------------------------------------
Chapter 15 Petitioner: Maru E. Johansen,
As foreign representative
Chapter 15 Debtor: Compania Mexicana de Aviacion, S.A. de C.V.
XOLA 535, Colonia del Valle
Mexico D.F. 03100
Chapter 15 Case No.: 10-14182
Type of Business: 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.
The Debtor wants the U.S. court to recognize its
reorganization proceedings under Mexican law
currently pending before the District Court for
Civil Matters for The Federal District, Mexico,
as a foreign main proceeding pursuant to 11
U.S.C. Sec. 1515 and 1517.
Two operating units of Grupo Mexicana de
Aviacion is the parent of Compania Mexicana --
Aerovias Caribe S.A. de C.V. (Mexicana Click)
and Mexicana Inter S.A. de C.V. (Mexicana Link)
-- are not part of the bankruptcy proceedings,
and continue to operate Mexicana Airlines
flights.
Chapter 15 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Stuart M. Bernstein
Debtor's Counsel: William Heuer, Esq.
Duane Morris LLP
1540 Broadway
New York, NY 10036-4086
Tel: (212) 692-1070
Fax: (212) 208-4521
E-mail: wheuer@duanemorris.com
Estimated Assets: $500,000,001 to $1 billion
Estimated Debts: More than $1 billion
The Company did not file a list of creditors together with its
petition.
COMSTOCK MINING: Buys Exploration Licenses, Mining Claims
---------------------------------------------------------
Comstock Mining Inc., a.k.a. GoldSpring Inc., entered into two
separate exploration licenses in July, both with definitive
options to purchase patented and unpatented mining claims and
patented town site lots totaling over 100 acres, in the Devils
Gate and Chinatown Mining District, Lyon County, Nevada. The
properties contain significant historical resources and rank as
one of the Company's top exploration and potential mine production
targets, second only to the Company's Lucerne Resource Area.
On July 1, 2010, the Company obtained an exclusive 180-day
exploration license with option to purchase four patented lode
claims totaling 95 acres known as the Dayton property. This
property is contiguous with the Company's Spring Valley Dondero
holdings. Under the purchase option, the price for the property
is $3,000,000 plus a 3% Net Smelter Return. The Company will
receive credit for the full purchase price through a reduction in
the NSR by 75% until such time as the full $3,000,000 purchase
price has been credited back. The purchase price will be paid
through an initial payment of $500,000, with the balance payable
in 20 equal, quarterly installments of $125,000, with no interest.
On July 21, 2010, the Company obtained an exclusive 180-day option
to acquire one patented lode claim and two unpatented lode claims,
adjoining and consolidating the Dayton property as shown on the
attached map. The agreement allows the Company to acquire these
mineral claims for $100,000 plus a 2% NSR at any time during the
option period.
"These coordinated property acquisitions expand our control to
include almost four miles of the Silver City Branch of the
Comstock Lode," stated Corrado DeGasperis, Comstock Mining's Chief
Executive Officer. "Our team of mining professionals will
leverage existing drilling and analysis to validate the value of
these properties."
The Dayton property has been the largest historical gold producer
in the south end of the Comstock Lode and in Lyon County as a
whole, having yielded a total of approximately 79,000 gold
equivalent ounces between 1870 and 1940 from underground workings
that extend to depths of about 800 feet. Subsequent drilling
during the late 1970's and early 1990's peripheral to the old
workings outlined a drill-indicated resource of 2.5 million tons,
grading 0.05 ounces per ton gold and 0.33 ounces per ton silver.
The identified resource is near surface and a strong probability
exists of expanding the resource with deeper drilling. The
drilling on the property to date includes 251 holes totaling
29,500 feet. "The historical drilling, mineral and mine planning
data and analysis retrieved on these properties adds to our
already unprecedented library of historical and current data and
accelerates our ability to analyze and develop the full potential
of The Comstock Lode," stated Mr. DeGasperis.
Mineralization on the property is mainly represented by the Dayton
Lode, a sub-part of the Silver City branch of the Comstock Lode, a
major system of fault-controlled epithermal veining. The Silver
City branch extends for a distance of about five miles through
Gold Hill, Silver City, the Dayton property, and into Spring
Valley. In addition to areas lying immediately below the current
levels of drilling, there are also other portions of the lode on
the property that are not yet fully explored.
"The acquisition of the Dayton property is a significant addition
to the Company's portfolio. Review of the historic drill data and
geologic mapping of a recently reopened underground cross cut
confirms our geologic team's interpretation of the Silver City
fault zone that was developed in the Lucerne resource area to the
north. This area will be one of the Company's primary exploration
targets over the next several years," stated Larry Martin,
Comstock Mining's Chief Geologist.
About Comstock Mining
Comstock Mining Inc. (OTC: LODE), also known as GoldSpring Inc.,
is a North American precious metals mining company, focused in
Nevada, with extensive, contiguous property in the Comstock Lode
District.
The Company's balance sheet as of March 31, 2010, showed
$4,886,495 in assets and $33,865,489 of liabilities, resulting to
$28,978,994 in stockholders' deficit.
As reported in the Troubled Company Reporter on April 15, 2010,
Jewett, Schwartz, Wolfe & Associates expressed substantial doubt
about the Company's ability to continue as a going concern
following the Company's 2009 results. The independent auditors
noted that the Company has operating and liquidity concerns and
has incurred historical net losses approximating $55,000,000 as of
December 31, 2009. The Company also used cash in operating
activities of $3,564,779 in 2009.
CONTINENTAL AIRLINES: Plans $750MM Bond Sale to Repay Loans
-----------------------------------------------------------
Continental Airlines Inc. announced an offering of $750 million
aggregate principal amount of senior secured notes due 2015. The
notes will be the senior secured obligations of Continental.
Continental's obligations under the notes will be guaranteed on a
senior secured basis by its subsidiaries Air Micronesia, Inc. and
Continental Micronesia, Inc. The notes will be secured by certain
of Continental's routes and airport takeoff and landing slots and
airport gate leaseholds utilized in connection with these routes.
Certain of the collateral is currently encumbered under
Continental's $350 million secured term loan facility that is due
in June 2011 and the remainder is currently pledged as security
for the advance purchase of mileage credits under its branded
credit and debit card agreements. Continental intends to use
approximately $350 million of the net proceeds from the offering
to repay the secured term loan facility and the balance for
general corporate purposes.
Standard & Poor's Ratings Services assigned as 'BB-' rating and
'1' recovery rating to Continental's proposed $750 million senior
secured notes, a 144A without registration rights. The '1'
recovery rating indicates S&P's expectation of very high (90% to
100%) recovery in a payment default scenario.
About Continental Airlines
Continental Airlines is the world's fifth largest airline.
Continental, together with Continental Express and Continental
Connection, has more than 2,700 daily departures throughout the
Americas, Europe and Asia, serving 132 domestic and 137
international destinations. Continental is a member of Star
Alliance. Continental has total assets of $13.60 billion against
total debts of $12.87 billion as of June 30, 2010.
In May 2010, Continental announced an agreement to merge with UAL
Corp. The merger has not yet been completed.
In August 2010, Moody's Investors Service affirmed its 'B2'
corporate family, with negative outlook, for Continental Airlines.
Moody's said the affirmation, among other things, signifies the
potential for it to maintain the B2 rating if the proposed merger
with UAL (B3 corporate family from Moody's, on review for upgrade)
is completed under terms that enable the combined entity to
achieve the potential revenue and cost synergies that have been
identified. However, the outlook remains negative because of the
industry's weak track record in successfully executing large
business combinations.
Continental caries a 'B' corporate rating, on watch negative, from
Standard & Poor's.
CONTINENTAL AIRLINES: Reports Record Load Factor for July
---------------------------------------------------------
Continental Airlines released its preliminary traffic results for
July, reporting among other things, a July consolidated load
factor of 88.0%, 0.7 points above the July 2009 consolidated load
factor, and a mainline load factor of 88.5%, 0.7 points above the
July 2009 mainline load factor. Both load factors were all-time
records. The carrier reported a July domestic mainline load
factor of 89.1%, 1.4 points below the July 2009 domestic mainline
load factor, and an all-time record international mainline load
factor of 88.0%, 2.7 points above July 2009.
During July, Continental recorded a U.S. Department of
Transportation on-time arrival rate of 76.1% and a mainline
segment completion factor of 99.8%.
In July 2010, Continental flew 9.1 billion consolidated revenue
passenger miles and 10.3 billion consolidated available seat
miles, resulting in a consolidated traffic increase of 2.5% and a
capacity increase of 1.7% as compared to July 2009. In July 2010,
Continental flew 8.2 billion mainline RPMs and 9.2 billion
mainline ASMs, resulting in a mainline traffic increase of 2.4%
and a mainline capacity increase of 1.6% compared to the same
period last year. Domestic mainline traffic was 3.9 billion RPMs
in July 2010, down 2.5% from July 2009, and domestic mainline
capacity was 4.4 billion ASMs, down 0.9% from July 2009.
For July 2010, consolidated passenger revenue per available seat
mile is estimated to have increased between 20.5% and 21.5%
compared to July 2009, while mainline RASM is estimated to have
increased between 21.5% and 22.5%. For June 2010, consolidated
passenger RASM increased 21.5% compared to June 2009, while
mainline passenger RASM increased 20.9% compared to the same
period last year.
Continental's regional operations had an all-time record July load
factor of 83.5%, 0.2 points above the July 2009 regional load
factor. Regional RPMs were 936.2 million and regional ASMs were
1,120.7 million in July 2010, resulting in a traffic increase of
3.5% and a capacity increase of 3.2% versus July 2009.
A full-text copy of the press release including a table showing
the traffic results for July is available for free at
http://ResearchArchives.com/t/s?67e1
About Continental Airlines
Continental Airlines is the world's fifth largest airline.
Continental, together with Continental Express and Continental
Connection, has more than 2,700 daily departures throughout the
Americas, Europe and Asia, serving 132 domestic and 137
international destinations. Continental is a member of Star
Alliance. Continental has total assets of $13.60 billion against
total debts of $12.87 billion as of June 30, 2010.
In May 2010, Continental announced an agreement to merge with UAL
Corp. The merger has not yet been completed.
In August 2010, Moody's Investors Service affirmed its 'B2'
corporate family, with negative outlook, for Continental Airlines.
Moody's said the affirmation, among other things, signifies the
potential for it to maintain the B2 rating if the proposed merger
with UAL (B3 corporate family from Moody's, on review for upgrade)
is completed under terms that enable the combined entity to
achieve the potential revenue and cost synergies that have been
identified. However, the outlook remains negative because of the
industry's weak track record in successfully executing large
business combinations.
Continental caries a 'B' corporate rating, on watch negative, from
Standard & Poor's.
CONTINENTAL AIRLINES: Settles Lawsuit Relating to Mulled Merger
---------------------------------------------------------------
To recall, on May 2, 2010, UAL Corporation, Continental Airlines
Inc. and JT Merger Sub Inc. entered into an Agreement and Plan of
Merger, providing for a business combination of Continental and
UAL.
Following announcement of the Merger Agreement on May 3, 2010,
three class action lawsuits were filed against Continental,
members of Continental's board of directors and UAL in the Texas
District Court for Harris County. The lawsuits purport to
represent a class of Continental stockholders opposed to the terms
of the Merger Agreement. The lawsuits make virtually identical
allegations that the consideration to be received by Continental's
stockholders in the Merger is inadequate and that the members of
Continental's board of directors breached their fiduciary duties,
by among other things, approving the Merger at an inadequate price
under circumstances involving certain conflicts of interest.
The lawsuits also make virtually identical allegations that
Continental and UAL aided and abetted the Continental board of
directors in the breach of its fiduciary duties to Continental's
stockholders. Each lawsuit seeks injunctive relief declaring that
the Merger Agreement was in breach of the Continental directors'
fiduciary duties, enjoining Continental and UAL from proceeding
with the Merger unless Continental implements procedures to obtain
the highest possible price for its stockholders, directing the
Continental board of directors to exercise its fiduciary duties in
the best interest of Continental's stockholders and rescinding the
Merger Agreement. All three lawsuits have been consolidated before
a single judge.
On July 30, 2010, plaintiffs in the Consolidated Action filed an
amended and consolidated petition. On August 1, 2010, the parties
to the Consolidated Action reached an agreement in principle
regarding settlement of the Consolidated Action. Under the
Settlement, the Consolidated Action will be dismissed with
prejudice on the merits and all defendants will be released from
any and all claims relating to, among other things, the Merger and
any disclosures made in connection therewith. The Settlement is
subject to customary conditions, including consummation of the
Merger, completion of certain confirmatory discovery, class
certification, and final approval by the District Court.
In exchange for that release, UAL and Continental have provided
additional disclosures requested by plaintiffs in the Consolidated
Action related to, among other things, the negotiations between
Continental and UAL that resulted in the execution of the Merger
Agreement, the method by which the exchange ratio was arrived at,
the procedures used by UAL's and Continental's financial advisors
in performing their financial analyses and certain investment
banking fees paid to those advisors by UAL and Continental over
the past two years.
The Settlement will not affect any provision of the Merger
Agreement or the form or amount of the consideration to be
received by Continental stockholders in the Merger.
The defendants have denied and continue to deny any wrongdoing or
liability with respect to all claims, events, and transactions
complained of in the aforementioned litigations or that they have
engaged in any wrongdoing. The defendants have entered into the
Settlement to eliminate the uncertainty, burden, risk, expense,
and distraction of further litigation. The foregoing description
of the Settlement does not purport to be complete.
On June 29, 2010, several purported current and future purchasers
of airline tickets filed an antitrust lawsuit in the U.S. District
Court for the Northern District of California against Continental,
as well as UAL and United Air Lines, Inc., in connection with the
Merger. The plaintiffs allege, among other things, that
Continental and UAL are substantial competitors on routes operated
in the United States and that, if the Merger is consummated, they
will experience higher ticket prices, decreased aircraft capacity,
and diminished airline services.
The plaintiffs claim that the Merger, if consummated, would
substantially lessen competition or create a monopoly in the
transportation of airline passengers in the United States, and the
transportation of airline passengers to and from the United States
on international flights, in violation of Section 7 of the Clayton
Act. Plaintiffs seek a preliminary and permanent injunction to
prohibit the Merger, as well as recovery of costs and attorneys'
fees. The Settlement does not apply to this action. UAL and
Continental believe the plaintiffs' claims are without merit and
intend to defend this lawsuit vigorously.
About UAL Corporation
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest air
carrier. The airline flies to Brazil, Korea and Germany.
The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts. Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors. Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006. The
Company emerged from bankruptcy on Feb. 1, 2006.
Reorganized UAL Corp. carries a 'Caa1' probability of default
rating from Moody's, 'B-' long term foreign issuer credit rating
from Standard & Poor's, and 'CCC' long term issuer default rating
from Fitch.
At June 30, 2010, UAL had $20.134 billion in total assets against
total current liabilities of $8.573 billion, long-term debt of
$6.281 billion, long-term obligations under capital leases of
$1.01 billion, and other liabilities and deferred credits of
$7.022 billion, resulting in stockholders' deficit of
$2.756 billion.
About Continental Airlines
Continental Airlines is the world's fifth largest airline.
Continental, together with Continental Express and Continental
Connection, has more than 2,700 daily departures throughout the
Americas, Europe and Asia, serving 132 domestic and 137
international destinations. Continental is a member of Star
Alliance. Continental has total assets of $13.60 billion against
total debts of $12.87 billion as of June 30, 2010.
In May 2010, Continental announced an agreement to merge with UAL
Corp. The merger has not yet been completed.
In August 2010, Moody's Investors Service affirmed its 'B2'
corporate family, with negative outlook, for Continental Airlines.
Moody's said the affirmation, among other things, signifies the
potential for it to maintain the B2 rating if the proposed merger
with UAL (B3 corporate family from Moody's, on review for upgrade)
is completed under terms that enable the combined entity to
achieve the potential revenue and cost synergies that have been
identified. However, the outlook remains negative because of the
industry's weak track record in successfully executing large
business combinations.
Continental caries a 'B' corporate rating, on watch negative, from
Standard & Poor's.
COTTAGE SCHOOL: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Cottage School Systems, Inc.
7142 Cherry Park
Houstn, TX 77095
fdba Lyman Careers, Inc.
aka Cottage School System, Inc.
Bankruptcy Case No.: 10-36331
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Marvin Isgur
Debtor's Counsel: Edward L Rothberg, Esq.
Melissa Anne Haselden, Esq.
Hoover Slovacek, LLP
5847 San Felipe, Suite 2200
Houston, TX 77057
Tel: (713) 977-8686
Fax: (713) 977-5395
E-mail: rothberg@hooverslovacek.com
Haselden@hooverslovacek.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Marion H. Tindall, president.
CUMULUS MEDIA: June 30 Balance Sheet Upside Down by $359MM
----------------------------------------------------------
Cumulus Media Inc. filed its quarterly report on Form 10-Q with
the Securities and Exchange Commission. The Company's balance
sheet at June 30, 2010, showed $324.1 million in total assets and
$683.6 million in total liabilities, for $359.5 million in total
stockholders' deficit.
As previously reported by the TCR, Cumulus Media said in an
earnings release that net revenues for the three months ended June
30, 2010 increased $3.7 million, or 5.7%, to $69.7 million
compared to $66.0 million for the three months ended June 30,
2009, primarily due to an increase in revenue from national
accounts, political revenue generated by mid-term congressional
elections, and increases in internet related revenues. The
Company reported a net income of $12.3 million for the three
months ended June 30, 2010, compared with a net income of
$14.0 million for the same period a year ago.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6774
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?67bf
About Cumulus Media
Based in Atlanta, Georgia, Cumulus Media Inc. (NASDAQ: CMLS) --
http://www.cumulus.com/-- is the second largest radio broadcaster
in the United States based on station count, controlling 350 radio
stations in 68 U.S. media markets. In combination with its
affiliate, Cumulus Media Partners, LLC, the Company believes it is
the fourth largest radio broadcast company in the United States
when based on net revenues.
* * *
Cumulus Media carries a 'Caa1' corporate family rating, and 'Caa2'
probability-of-default rating from Moody's Investors Service.
DAVID EDELSTEIN: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: David Alexander Edelstein
aka David A Edelstein, Trustee for Lakeside Trust
1104 Lakeside Avenue South
Seattle, WA 98144
Bankruptcy Case No.: 10-18896
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Western District of Washington (Seattle)
Judge: Marc Barreca
Debtor's Counsel: Craig S. Sternberg, Esq.
Sternberg Thomson Okrent & Scher PLLC
500 Union St., Suite 500
Seattle, WA 98101
Tel: (206) 386-5438
E-mail: craig@stoslaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of his largest unsecured creditors
together with his petition.
The petition was signed by Mr. Edelstein.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Lakeside Trust 10-14905 04/29/10
DENNY'S CORP: Posts $5.5 Million Net Income for June 30 Quarter
---------------------------------------------------------------
Denny's Corporation reported results for its second quarter ended
June 30, 2010. Net income of $5.5 million, including proxy
contest related costs and lower gains on the sale of assets driven
by 13 fewer units sold.
The Company's balance sheet for June 30, 2010, showed
$296.6 million in total assets and $409.5 million in total
liabilities, for $112.9 million in total stockholders' deficit.
Debra Smithart-Oglesby, Interim Chief Executive Officer and Board
Chair, stated, "Our second quarter showed encouraging signs of
progress towards our key areas of focus. First, we have seen a
positive and sequential change in trend in same-store guest counts
within the quarter due primarily to guest acceptance of the
Company's everyday affordability strategy, led by the $2/$4/$6/$8
Value Menu. This momentum carried into July as same-store sales
for company units of -1.7% was driven by this improving guest
count trend. Second, excluding cost related to the proxy contest,
we continued to deliver growth in adjusted income before taxes.
Third, our franchisees continued to build new units and began the
process of converting an initial 70 Flying J sites to Denny's.
Last, we continue to refranchise targeted company units and to
further reduce our debt."
"Denny's leadership is committed to effectively executing towards
our strategic priorities of driving sales, growing profitability,
and growing unit development in traditional and non-traditional
venues which will result in the optimization of our balance sheet
and free cash-flow. To execute these priorities we are committed
to bringing aboard high-caliber talent at the Board and Senior
Executive levels. Recently we made progress in this area with the
appointment of Gregg Dedrick to the Board and the hiring of
Frances Allen as Chief Marketing Officer. We have also recently
reinitiated a full review of our cost structure."
Second Quarter Results
For the second quarter of 2010, Denny's reported total operating
revenue, including company restaurant sales and franchise revenue,
of $135.1 million compared with $155.8 million in the prior year
quarter. Company restaurant sales decreased $20.2 million
primarily due to 37 fewer equivalent company restaurants compared
with the prior year quarter. The decrease in restaurants resulted
from the sale of company restaurants to franchisees under FGI.
Company restaurant operating margin was 13.8%, a decrease of 0.5
percentage points compared with the same period last year driven.
Product costs decreased 0.1 percentage points to 23.3% of sales
primarily due to the impact of lower non ingredient costs and
lower commodity costs, partially offset by a higher mix of value
priced items.
Payroll and benefit costs decreased 0.4 percentage points to 41.2%
of sales primarily due to lower restaurant management incentive
compensation as well as efficiency improvements in team labor,
partially offset by the deleveraging effect of lower sales and
unfavorable worker's compensation claims development.
Occupancy costs increased 0.2 percentage points to 6.6% of sales
primarily due to the deleveraging effect of lower sales.
Other operating costs increased 0.9 percentage points to 15.2% of
sales. Utility costs decreased 0.2 percentage points to 4.2% due
to the recognition of $0.4 million in losses on natural gas
contracts during the prior year quarter. Marketing expenses
increased 0.5 percentage points to 4.3% of sales due to additional
spending related to the Super Bowl and the testing of the
$2/$4/$6/$8 value menu program. Other direct costs increased 0.8
percentage points primarily due to write-off of excess promotional
materials and higher recruiting costs associated with new Flying J
units.
Franchise and license revenue decreased by $0.5 million to $29.8
million compared with $30.3 million in the prior year quarter.
The decrease in franchise revenue included a $0.6 million decrease
in franchise fees and $0.2 million decrease in royalties,
partially offset by $0.2 million increase in franchise occupancy
revenue. The franchise fee decrease resulted from the sale of 13
fewer units to franchisees in the second quarter of this year.
The royalty revenue decrease was due to negative same-store
sales, partially offset by an additional 49 equivalent franchise
restaurants. During the second quarter, Denny's franchisees
opened seven new restaurants, including the first franchise Flying
J Travel Center location, closed ten restaurants and purchased
nine company units.
Franchise operating margin decreased $1.0 million to $18.7
million, primarily due to the $0.6 million decrease in franchise
fee revenue and lower same-store sales, partially offset by the
additional 49 equivalent franchise restaurants. Franchise
operating margin was 62.6%, a decrease of 2.1 percentage points
compared with the same quarter last year. The decrease in margin
was primarily driven by temporary overhead costs associated with
converting the Flying J sites and by a decrease in franchise fees
due to fewer refranchisings, this was partially offset by the
higher contribution of higher-margin royalty revenue generated
through FGI.
General and administrative expenses decreased $2.8 million, or
17.6%, from the same period last year. This reduction was driven
by a $1.9 million decrease in stock-based compensation, and a $2.6
million decrease in incentive and deferred compensation, partially
offset by $1.5 million in costs related to our recent proxy
contest. The $1.9 million decrease in share-based compensation
resulted primarily from the change in our stock price during the
quarter.
Depreciation and amortization expense declined by $0.7 million
compared with the prior year quarter primarily as a result of the
sale of restaurants and real estate over the past year. Operating
gains, losses and other charges, net, which reflect restructuring
charges, exit costs, impairment charges and gains or losses on the
sale of assets, decreased $3.6 million in the quarter. The
decrease primarily resulted from fewer sales of company
restaurants to franchisees and higher severance and other
restructuring charges.
Operating income for the quarter decreased $4.5 million from the
prior year period to $12.9 million, primarily due to a $20.2
million decrease in total operating revenue attributable to the
sale of company restaurants and negative same-store sales.
Interest expense decreased $1.7 million, or 20.9%, to $6.5 million
as a result of the termination of our interest rate swap and a
$51.4 million reduction in debt from the prior year period.
Other nonoperating expense increased $1.3 million in the quarter
primarily due to the recognition of $0.7 million in losses on the
assets in our deferred compensation plan.
Denny's reported net income of $5.5 million for the second
quarter, or $0.05 per diluted common share, compared with prior
year period net income of $9.3 million, or $0.09 per diluted
common share. Adjusted income before taxes, Denny's metric for
earnings guidance, decreased $1.1 million in the second quarter to
$6.2 million. Excluding the $1.5 million of proxy contest related
costs, adjusted income before taxes increased $0.4 million, or 6%.
This measure, which is used as an internal profitability metric,
excludes restructuring charges, exit costs, impairment charges,
asset sale gains and losses, share-based compensation, other
nonoperating expenses and income taxes.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?67ca
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?67cb
About Denny's
Based in Spartanburg, South Carolina, Denny's Corporation (NASDAQ:
DENN) -- http://www.dennys.com/-- Denny's is one of America's
largest full-service family restaurant chains, consisting of 1,348
franchised and licensed units and 232 company-owned units, with
operations in the United States, Canada, Costa Rica, Guam, Mexico,
New Zealand and Puerto Rico.
Denny's carries Moody's Investors Service's B2 Corporate Family
and Probability of Default ratings.
DESARROLLO RIO: Case Summary & 16 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Desarrollo Rio Dorado Inc.
P.O. Box 6415
San Juan, PR 00914
Bankruptcy Case No.: 10-06915
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Carlos Rodriguez Quesada, Esq.
Law Office of Carlos Rodriguez Quesada
P.O. Box 9023115
San Juan, PR 00902-3115
Tel: (787) 724-2867
E-mail: cerqlaw@coqui.net
Scheduled Assets: $4,782,596
Scheduled Debts: $5,317,582
A list of the Company's 16 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/prb10-06915.pdf
The petition was signed by Manuel Perez Nevares, president.
DESTINATION MATERNITY: Moody's Raises Default Rating to 'B2'
------------------------------------------------------------
Moody's Investors Service revised Destination Maternity
Corporation's ratings outlook to positive from stable and raised
the company's Probability of Default Rating to B2 from B3. The
company's B2 Corporate Family Rating and the B2 rating on its
secured term loan were affirmed.
The outlook change to positive reflects Moody's expectation for
sustained profitability and credit metric improvement over the
near-to-intermediate term, increased sales stemming from the
company's announced leased department expansion with Macy's set to
begin in February 2011, and continued good liquidity, the latter
of which is supported by balance sheet cash and the expectation
for positive free cash flow generation, excess revolver
availability and cushion under its financial covenants.
Destination Maternity's profitability and credit metrics have
improved over the past two years due to significant cost savings
initiatives, improved merchandise margins and sales growth from
leased department relationships, as well as increased internet and
international sales, all of which have helped offset the impact of
declining same store sales. The company has also used free cash
flow to significantly reduce debt. Moody's believes that
continued focus on cost control and positive free cash flow, when
coupled with the expanded leased departments relationship with
Macy's, could lead to further sustained improvement over the near-
to-intermediate-term.
Destination Maternity's B2 CFR continues to reflect the company's
weak, but improving, credit metrics, very small scale, and its
high seasonality, as most of its cash flow from operations is
typically generated during the fiscal third quarter. The rating
is supported by its solid position in the maternity apparel sub-
sector of the retail market, well-known brand names, and its
national geographic footprint with locations in 50 states.
These ratings were affirmed:
* Corporate Family Rating at B2;
* Senior Secured Term Loan at B2 (LGD4, 55%) (previously LGD3,
35%)
This rating was upgraded:
* Probability of Default Rating to B2 from B3;
The ratings outlook is positive.
The last rating action on Destination Maternity was on
September 2, 2009, when Moody's affirmed the company's B2 CFR and
changed the ratings outlook to stable from negative.
Destination Maternity Corporation, with headquarters in
Philadelphia, Pennsylvania, is an independent retailer of
maternity apparel. The company operates 1,678 retail locations,
including 702 stores in 50 states, Puerto Rico and Canada under
the Motherhood Maternity, A Pea in the Pod and Destination
Maternity trade names, in addition to its brand-specific internet
web stores. Revenue for the twelve months ended June 30, 2010 was
$531 million.
DOLLAR THRIFTY: Posts $42.3 Million Net Income for June 30 Quarter
------------------------------------------------------------------
Dollar Thrifty Automotive Group Inc. reported results for the
second quarter ended June 30, 2010. Net income for the 2010
second quarter was $42.3 million, or $1.40 per diluted share,
compared to net income of $12.4 million, or $0.55 per diluted
share, for the comparable 2009 quarter. Net income for the
second quarter of 2010 included income of $0.15 per diluted share,
compared to income of $0.24 per diluted share in last year's
second quarter, both of which related to increases in fair value
of derivatives.
The Company's balance sheet at June 30, 2010, showed $2.5 billion
in total assets and $2.0 billion in total liabilities, for
$467.8 million in total stockholders' equity.
Non-GAAP net income for the 2010 second quarter was $38.0 million,
or $1.26 per diluted share, compared to non-GAAP net income of
$6.9 million, or $0.30 per diluted share, for the 2009 second
quarter. Non-GAAP net income excludes the decrease in fair value
of derivatives and the non-cash charges related to the impairment
of long-lived assets, net of related tax impact.
The Company reported Corporate Adjusted EBITDA for the second
quarter of 2010 of $74.3 million, compared to $20.9 million in the
second quarter of 2009. The Company noted that it incurred
merger-related expenses of $6.8 million during the quarter,
negatively impacting reported results. Excluding these merger-
related expenses, Corporate Adjusted EBITDA for the second quarter
of 2010 was $81.1 million. Reconciliations of non-GAAP to GAAP
results are included in Tables 3 and 4.
"The Company's ongoing efforts in the areas of revenue management,
expense control and fleet management continue to reap significant
benefits, as demonstrated by our sixth consecutive quarter of
year-over-year double-digit growth in Corporate Adjusted EBITDA,"
said Scott L. Thompson, President and Chief Executive Officer.
"Our day-to-day focus continues to be on improving the Company's
return on assets while maximizing our cash flow. I am pleased to
report that we are on track to make 2010 the most profitable year
in the history of the Company," said Mr. Thompson.
On a same-store basis, rental revenues for locations that were
open during the second quarter of both 2010 and 2009 were up 2.9
percent compared to last year's second quarter. For the quarter
ended June 30, 2010, the Company's total revenue was $396.2
million, as compared to $399.6 million for the comparable 2009
period. The decline in total revenue was primarily driven by a
decline in vehicle leasing revenue, resulting from a planned
reduction in vehicles leased to franchisees. Vehicle rental
revenue for the quarter was consistent on a year-over-year basis
as an 80 basis point improvement in rate per day offset a 50 basis
point decline in rental days. The second quarter 2010 average
fleet was down 0.8 percent compared to the second quarter of 2009,
while the ending fleet was up 0.9 percent from the second quarter
of 2009.
"We are pleased with the results for the quarter, having realized
increases in transaction days and utilization on a same-store
basis, while continuing to realize pricing improvement in a more
challenging and competitive pricing environment. Based on our
solid second quarter results combined with our current reservation
book and our outlook for the economy, we expect revenue growth
going forward," said Thompson.
Vehicle depreciation per unit for the second quarter of 2010
totaled $193 per month as the Company continued to benefit from
the overall strength of the used vehicle market, in addition to
changes the Company made in 2009 to its fleet planning and
remarketing operations that were designed to lower fleet
depreciation costs per unit and mitigate enterprise risk. Vehicle
utilization was 80.8 percent, up 20 basis points from last year's
second quarter.
Operating expenses were higher in the second quarter of 2010
compared to the same quarter in 2009 primarily as a result of $6.8
million of merger-related costs incurred, in addition to a $3
million increase in self insured vehicle liability reserves
related to a vicarious liability claim that is currently under
appeal by the Company. These costs were partially offset by
ongoing cost reduction efforts and cost efficiency initiatives.
As a percentage of revenues, operating expenses totaled 62.7
percent of revenues in the second quarter of 2010, compared to
61.0 percent in the second quarter of 2009, primarily as a result
of the cost increases noted above.
Interest expense, net of interest income, for the second quarter
of 2010 declined $1.3 million on a year-over-year basis primarily
as a result of approximately $300 million in net reduction in the
debt outstanding for 2010 compared to 2009, partially offset by
reduced interest income as the Company deployed the excess cash
balances on hand in 2009 to reduce indebtedness, and to reinvest
in the rental fleet.
Six Month Results
For the six months ended June 30, 2010, net income was $69.6
million, or $2.31 per diluted share, compared to net income of
$3.5 million, or $0.15 per diluted share for the comparable period
in 2009. Net income for the six months ended June 30, 2010
included income of $0.29 per diluted share, compared to income of
$0.38 per diluted share for the six months ended June 30, 2009,
both of which related to increases in fair value of derivatives.
Non-GAAP net income for the six months ended June 30, 2010 was
$61.0 million, or $2.02 per diluted share, compared to non-GAAP
net loss of $4.9 million, or $0.23 loss per diluted share, for the
same period in 2009. Non-GAAP net income excludes the decrease in
fair value of derivatives and the non-cash charges related to the
impairment of long-lived assets, net of related tax impact.
The Company reported Corporate Adjusted EBITDA for the six months
ended June 30, 2010 of $123.7 million, compared to $18.5 million
for the six months ended June 30, 2009. The Company noted that it
incurred merger-related expenses of $8.5 million during the first
half of 2010, negatively impacting reported results. Excluding
these merger-related expenses, Corporate Adjusted EBITDA for
the six months ended June 30, 2010 was $132.2 million.
Liquidity and Capital Resources
As of June 30, 2010, the Company had $370 million in cash and cash
equivalents and an additional $114 million in restricted cash and
investments primarily available for the purchase of vehicles
and/or repayment of vehicle financing obligations. The Company's
tangible net worth as of June 30, 2010 was $443 million.
During the quarter, the Company repaid $200 million of maturing
medium term notes utilizing a combination of restricted cash and
borrowings under newly completed fleet financing facilities. As
previously reported, the Company completed a two-year $200 million
variable funding note facility in April of 2010 which was fully
drawn upon issuance. In addition, during June, the Company
completed a three-year $300 million variable funding note facility
that is currently undrawn, and will provide additional liquidity
for repayment of the Company's next scheduled debt maturity of
$600 million of medium term notes that begin amortizing in
December 2010.
2010 Outlook - Update
In addition to announcing results for the quarter, the Company
reaffirmed its previously announced guidance updates for 2010 for
revenue, fleet costs and Corporate Adjusted EBITDA, as well as for
fleet costs for 2011.
As previously announced, the Company expects rental revenue growth
in 2010 of 1 to 2 percent over 2009 as growth in the back half of
2010 is expected to more than offset the decline realized during
the first half of the year.
The Company noted that it sold approximately 32,500 risk vehicles
during the first half of 2010 at a cumulative pretax gain of $53.2
million. The Company also noted that it expects gains from
vehicle dispositions to decline significantly during the second
half of 2010, and as a result, expects its depreciation per unit
per month to be within a range from $300 to $310 per unit per
month during the third and fourth quarters of 2010. Based on
results for the first half of 2010, combined with the fleet cost
outlook for the third and fourth quarters, the Company expects its
full year 2010 fleet cost to be $245 to $255 per unit per month.
Based on the Company's actual results through the second quarter
and its outlook for revenue and fleet costs for the remainder of
2010, the Company expects Corporate Adjusted EBITDA, excluding
merger-related expenses, to be within a range of $200 million to
$220 million for the full year of 2010. The Company's 2009
Corporate Adjusted EBITDA was $99.4 million.
In addition, the Company reaffirmed its expected fleet cost for
2011 to be within a range of $300 to $310 per unit per month. The
Company noted that the ongoing positive effects of changes made in
its operations and fleet management, combined with solid
macroeconomic factors in the used car market, are expected to
impact fleet costs in 2011 and beyond.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?67e9
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?67e8
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'.
DOLLAR THRIFTY: Says Avis Offer Fails "Superior Proposal" Test
--------------------------------------------------------------
Scott L. Thompson, president and chief executive officer of Dollar
Thrifty Group Inc., responded to the proposal made by Ronald L.
Nelson, chairman and chief executive officer of Avis Budget Group.
Mr. Thompson said, "Thank you for your interest in our company; we
were pleased to receive your letter dated July 28, 2010. Our
Board of Directors has received and carefully reviewed your
letter, and I would like to give you some observations based on
their review.
"Under the terms of our merger agreement with Hertz, in order for
Dollar Thrifty to pursue a transaction with Avis Budget, our Board
must make a determination that the Avis Budget proposal
constitutes a "Superior Proposal" within the meaning of that
agreement. This, in turn, requires our Board to make the
following three findings with respect to the transaction proposed
by Avis Budget:
* It is more favorable, from a financial point of view, to our
stockholders than the Hertz merger;
* It is supported by financing that is fully committed or
reasonably likely to be obtained; and
* It is reasonably expected to be consummated on a timely basis.
"We believe that your proposal would clearly satisfy the first of
these requirements. Furthermore, we think that the draft
financing commitment letters that you have furnished, when
finalized in the manner described by your advisors, will provide a
reasonable basis for concluding that the second requirement can be
satisfied. However, we do not have sufficient information to
establish satisfaction of the third prong of the requirements.
"As you are aware, our respective advisors have had numerous
discussions with respect to the antitrust risks attendant to a
merger of our companies. Your legal advisors have stated clearly
their position, based on their econometric and other analyses,
that the divestitures to which you have committed in your proposal
are sufficient to remediate any competitive issues. But citing
our inability to enter into a joint defense agreement with you as
well as our contractual obligations to cooperate with Hertz, your
advisors have been unwilling to disclose details of their data and
analyses beyond their general approach to the issues.
"More problematic is Avis Budget's unwillingness to provide a
reverse termination fee. As we have stated on several occasions,
our Board accords substantial weight to the extent to which Avis
Budget is willing to share the risk of the ultimate regulatory
outcome. This is especially true where Avis Budget is unable to
provide compelling objective evidence in favor of its antitrust
position. Indeed, Avis Budget's unwillingness to offer a
meaningful reverse termination fee can only represent to us, to
the market and to any objective observer a lack of confidence by
Avis Budget in its position. As you know, transaction certainty
has consistently been a key criterion for Dollar Thrifty in
evaluating possible transactions. We feel strongly that in order
to merit favorable consideration by our Board, the relative
magnitude of the reverse termination fee should be at least
consistent with that of the Hertz transaction. Obviously, a fee
of greater magnitude would demonstrate even greater confidence in
your ability to procure antitrust approvals, as well as your
willingness to take steps beyond your stated divestiture
commitment to do so.
"Your advisors have suggested that there is a natural trade-off
between the transaction consideration and deal certainty.
Unfortunately, the "Superior Proposal" determination simply does
not work in that way. Each of the three prongs must be met, and a
higher price cannot compensate for a deficiency in deal certainty.
But even if we could blend the factors as you suggest, Avis
Budget's unwillingness to provide a reverse termination fee,
coupled with your disinclination to provide analytical data
supporting your antitrust position, leaves us incapable of making
such an assessment." said the company.
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'.
DYNAVAX TECHNOLOGIES: Posts $28 Million Net Loss in Q2 2010
-----------------------------------------------------------
Dynavax Technologies Corporation filed its quarterly report on
Form 10-Q, reporting a net loss attributable to Dynavax of
$28.0 million on $2.2 million for the three months ended June 30,
2010, compared to net income attributable to Dynavax of
$4.1 million on $15.9 million of revenue for the same period of
2009.
The Company's balance sheet as of June 30, 2010, showed
$71.7 million in assets, $58.9 million in liabilities, and
$12.8 million in stockholders' equity.
The Company has incurred significant operating losses and negative
cash flows from operations since its inception.
In order to continue development of its product candidates,
particularly HEPLISAV, the Company will need to raise additional
funds through future public or private financings, or strategic
alliance and licensing arrangements. Sufficient funding may not
be available, or if available, may be on terms that significantly
dilute or otherwise adversely affect the rights of existing
shareholders.
A full-text copy of the Quarterly Report is available for free at:
http://researcharchives.com/t/s?67ea
Berkeley, Calif.-based Dynavax Technologies Corporation (NASDAQ:
DVAX) - http://www.dynavax.com/-- is a clinical-stage
biopharmaceutical company. The Company discovers and develops
novel products to prevent and treat infectious diseases. The
Company's lead product candidate is HEPLISAV, an investigational
adult hepatitis B vaccine designed to enhance protection more
rapidly and with fewer doses than current licensed vaccines.
As reported in the Troubled Company Reporter on March 18, 2010,
Ernst & Young LLP, in San Francisco, Calif., expressed substantial
doubt about the Company's ability to continue as a going concern
after auditing the Company's financial statements for the year
ended December 31, 2009. The independent auditors noted that
the Company has incurred significant operating losses and negative
cash flows from operations since its inception.
EMISPHERE TECHNOLOGIES: Issues $525,000 Promissory Note to MHR
--------------------------------------------------------------
Emisphere Technologies Inc. issued a promissory note to MHR
Institutional Partners IIA LP and MHR Institutional Partners II LP
in the principal amount of $525,000. The Note provides for an
interest rate of 15% per annum, with the entire principal amount
due and payable on October 27, 2010. The Maturity Date will be
accelerated, in certain circumstances, to the date that is two
business days following the receipt by the Issuer of at least
$1,000,000 aggregate cash proceeds from third parties, whether in
connection with certain financing transactions, commercial
transactions or otherwise.
Also on July 29, 2010, in connection with the Note, Emisphere and
MHR amended that certain Pledge and Security Agreement, dated as
of September 26, 2005, to extend the terms of the Security
Agreement, other than the intellectual property licensed to
Novartis Pharma AG pursuant to the Master Agreement and Amendment
dated June 4, 2010 by and between Emisphere and Novartis to
include the principal, interest and other obligations provided
under the Note.
In accordance with the terms of that certain 11.00% Senior Secured
Convertible Note issued by the Emisphere to MHR and due September
26, 2012, MHR also provided a written consent to allow for the
issuance of the Note and related obligations provided under the
Amendment.
A full-text copy of the Promissory Note is available for free at
http://ResearchArchives.com/t/s?67ab
A full-text copy of the amendment to Pledge and Security Agreement
is available for free at http://ResearchArchives.com/t/s?67ac
About Emisphere Technologies
Based in Cedar Knolls, New Jersey, Emisphere Technologies, Inc.
(OTC BB: EMIS) -- http://www.emisphere.com/-- is a
biopharmaceutical company that focuses on a unique and improved
delivery of pharmaceutical compounds and nutritional supplements
using its Eligen(R) Technology. The Eligen(R) Technology can be
applied to the oral route of administration as well other delivery
pathways, such as buccal, rectal, inhalation, intra-vaginal or
transdermal.
The Company's balance sheet at March 31, 2010, revealed
$5,100,000 in total assets and $71,000,000 in total current
liabilities, for a total stockholders' deficit of $65,900,000.
The Company has implemented aggressive cost controls to conserve
its cash and better position the Company to realize the commercial
promise of its Eligen Technology. With its lower cash burn rate,
the Company anticipates that its existing capital resources,
without implementing cost reductions, raising additional capital,
or obtaining substantial cash inflows, will enable the Company to
continue operations through approximately June 2010 or earlier if
unforeseen events arise that negatively affect the company's
liquidity.
The Company's management said it believes there are reasonable
financing alternatives potentially available to the Company that
will enable it to meet its near term operating cash requirements.
ENERGY FUTURE: Distributes Slide Presentation for Investor Call
---------------------------------------------------------------
Energy Future Holdings Corp. on August 2, 2010, issued a press
release announcing its financial results for the second quarter
ended June 30, 2010, and on August 3, distributed a supplemental
slide presentation entitled "EFH Corp. Q2 2010 Investor Call".
A full-text copy of the slide presentation is available at no
charge at http://ResearchArchives.com/t/s?67d5
A full-text copy of the Company's earnings release is available at
no charge at http://ResearchArchives.com/t/s?67d6
For the second quarter 2010, EFH reported a consolidated net loss
attributable to EFH Corp. (in accordance with GAAP) of
$426 million compared to a reported net loss of $155 million for
the second quarter 2009. The second quarter 2010 reported net
loss included (all after tax) $93 million in unrealized commodity-
related mark-to-market net losses largely related to positions in
EFH's long-term hedging program and $165 million in unrealized
mark-to-market net losses on interest rate swaps, partially offset
by an $83 million debt extinguishment gain resulting from second
quarter 2010 debt exchanges and repurchases.
"EFH had good operational performance in the second quarter of
2010, and our three new generation units are performing consistent
with our expectations," said John F. Young, CEO, Energy Future
Holdings Corp. "We continue to see some signs of economic recovery
in our large commercial and industrial segment."
For the six months ended (year-to-date) June 30, 2010, EFH
reported a consolidated net loss attributable to EFH Corp. (in
accordance with GAAP) of $71 million compared to reported
consolidated net income of $287 million for year-to-date 2009.
Exchange Offer
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
debt by unit Oncor Electric Delivery Company LLC.
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".
ENERGY FUTURE: Posts $426.0 Million Net Loss for June 30 Quarter
----------------------------------------------------------------
Energy Future Holdings Corp. filed its quarterly report on Form
10-Q, reporting a net loss of $426.0 million on $1.9 billion of
operating revenues for the three months ended June 30, 2010,
compared with a net loss of $139.0 million on $2.34 billion of
operating revenues for the same period a year ago.
The Company's balance sheet at June 30, 2010, showed
$51.04 billion in total assets and $54.25 billion in total
liabilities, for $3.21 billion in stockholder's deficit.
EFH says it is highly leveraged. As of June 30, 2010, EFH Corp.'s
consolidated principal amount of debt (short-term borrowings and
long-term debt, including amounts due currently) totaled
$38.620 billion. A substantial amount of this indebtedness is
comprised of our indebtedness under a certain TCEH Senior Secured
Facilities, substantially all of which matures in October 2014
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?67b1
About Energy Future
Energy Future Holdings Corp. is a 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.
* * *
As reported by the Troubled Company Reporter on July 21, 2010,
Moody's Investors Service affirmed the "Caa1" corporate family
rating, and kept the outlook at "negative", for Energy Future.
Moody's said, "The CFR takes into consideration the very weak
financial profile, untenable capital structure, questionable long-
term business plan sustainability and material operating
headwinds, especially with respect to steadily increasing
environmental mandates."
ENERGYCONNECT GROUP: Appoints Regulatory Expert to Board
--------------------------------------------------------
EnergyConnect Group Inc. appointed N. Beth Emery to its board of
directors effective July 30, 2010. This appointment increases the
total number of directors from six to seven.
Kevin Evans, EnergyConnect's president and CEO, said, "Beth brings
extensive energy, finance, corporate and regulatory experience to
our company. We are confident Beth's contribution will prove
invaluable as we continue to deliver industry-leading integrated
demand response services and technologies for the smart grid
through our technology platform."
Emery said, "I am excited to join EnergyConnect's board of
seasoned technology and energy executives. EnergyConnect's
technology enables commercial, institutional and industrial
consumers to manage their use of electricity in ways that bring
savings and additional reliability to the grid at a time when the
landscape for demand response is rapidly evolving. I am committed
to leveraging my experience in regulatory policy and market design
to expand EnergyConnect's national footprint and position it as
the technology leader for the smart grid."
About EnergyConnect Group
Campbell, Calif.-based EnergyConnect Group, Inc., is a provider of
demand response services to the electricity grid. Demand response
programs provide grid operators with additional electricity
generation capacity by encouraging consumers to curtail their
electricity usage.
The Company's balance sheet as of January 2, 2010, showed
$9,774,924 in total assets and $9,746,384 in total liabilities,
resulting in a $28,540 stockholders' equity.
RBSM LLP, in New York, expressed substantial doubt about the
Company's ability to continue as a going concern after auditing
the Company's annual results for the year ended Jan. 2, 2010. The
independent auditors noted that the Company is experiencing
difficulty in generating sufficient cash flow to meet its
obligations and sustain its operations.
FAIRPOINT COMMS: May Ask Court to Overrule Vermont Rejection
------------------------------------------------------------
FairPoint Communications Inc. may ask the bankruptcy court
presiding over its Chapter 11 cases to overrule the rejection of
the Vermont regulatory agency of its plan of reorganization,
according to John Dillon of Vermont Public Radio.
The Vermont Public Service Board issued a decision in late June
2010, denying approval of FairPoint's bankruptcy plan. The
Vermont Board held that FairPoint has failed to demonstrate that
it has the financial capability to meet its obligations under
Vermont law and its license as a telecommunications carrier.
The Vermont regulatory approval was the last hurdle for FairPoint
as regulators in Maine and New Hampshire have given the Company
the "go" signal in implementing its bankruptcy plan.
Michael Smith, FairPoint's president for Vermont, told the
Vermont Public Radio in an interview that the Vermont Board
rejection halted their progress just "30 days or so" of their
anticipated emergence from bankruptcy. "So what we've got to do
is look at this in terms of all of the approval that we've
gotten, not disrupt any of those approvals, and at the same time
try to move forward here in Vermont," the Vermont Public Radio
quoted Mr. Smith as saying.
FairPoint sent the Vermont Board a letter in July, urging the
regulator to keep the proceedings open.
The Company may try to strike a new deal with the Vermont Board,
or ask the Bankruptcy Court to overrule the Vermont Board ruling
and approve its bankruptcy plan.
However, Mr. Smith, according to the news source, said the
reorganization plan "was carefully choreographed and involved
multiple players, including the unions and the other states where
FairPoint does business, so any change to accommodate Vermont
could affect other moving parts of the bankruptcy reorganization
plan, that could end up delaying the process."
As FairPoint contemplates on its next move, the Bankruptcy Court
has adjourned the second and final phase of the plan confirmation
hearing in the case to an undetermined date.
About FairPoint Communications
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.
FAIRPOINT COMMS: Proposes to Assume JC Zampell Agreement
--------------------------------------------------------
FairPoint Communications Inc. and J.C. Zampell Construction, Inc.,
are parties to an agreement dated April 1, 2008, whereby Zampell
provides house and grounds keeping, janitorial and related
services to the Debtors and their subsidiaries.
By this motion, the Debtors seek the Court's authority to amend
and assume the Zampell Agreement.
The amendment, according to James T. Grogan, Esq., at Paul
Hastings Janofsky & Walker, LLP, in New York, provides for certain
pricing concessions in connection with the assumption of the
Agreement.
The Debtors anticipate that the terms of the Amendment will
result in annual cost savings of approximately $1.5 million,
including certain service reductions.
The salient terms of the Amended Agreement are:
(1) The Amended Agreement will expire on April 30, 2013, with
an option to renew for successive one-year periods;
(2) FairPoint Communications Inc. will pay Zampell $602,859 to
cure any and all defaults relating to the Agreement, and in
full satisfaction of Zampell's prepetition claim, which has
been designated as Proof of Claim No. 621;
(3) If the Amended Agreement is assumed prior to August 31,
2010, Zampell will reduce its current service rates by 5%.
Zampell will reduce its rates an additional 5% as soon as
the Debtors spend $1 million or more for services performed
after May 1, 2010, under the Amended Agreement;
(4) Zampell will release the Debtors from all claims, causes of
action, liabilities and other obligations arising prior to
May 1, 2010; provided, however, that the release will not
apply to unbilled or unpaid postpetition charges for
services under the Agreement provide in the ordinary course
by Zampell subsequent to February 28, 2010.
About FairPoint Communications
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.
FAIRPOINT COMMS: Wants Removal Period Extended Until Oct. 25
------------------------------------------------------------
FairPoint Communications Inc. and its debtor affiliates seek a
further order from the Bankruptcy Court extending the time within
which they may file notices of removal of prepetition causes of
action through and including October 25, 2010, pursuant to Rules
9027(a)(2)(A) and 9006(b) of the Federal Rules of Bankruptcy
Procedures.
The Prepetition Causes of Action refer to non-bankruptcy actions
filed in various venues throughout the United States.
James T. Grogan, Esq., at Paul Hastings Janofsky & Walker LLP, in
New York, reports that since the entry of the Second Removal
Extension Order in June 2010, the Debtors spent considerable time
and attention in administering their Chapter 11 cases. They
expended time and effort in pursuing confirmation of their Plan
of Reorganization. Those efforts culminated in the commencement
of the Phase I Confirmation Hearing and the entry of the Phase I
Order. The Court, however, has not yet entered a final
confirmation order on the Plan. The Debtors are also actively
reviewing, and where appropriate, filing objections and motions
to estimate more than 8,000 proofs of claim that have been filed
in their cases.
As a result of these activities, the Debtors have not had an
opportunity to fully examine the Prepetition Actions to determine
the feasibility or benefit of removing each Action.
"The ability to remove pending litigation is a valuable right
that FairPoint does not want to lose inadvertently," Mr. Grogan
says. The Debtors aver that in connection with deciding whether
to remove any Action, they must conduct a comprehensive analysis
of the pending Actions. However, they do not believe that they
will be able to make an informed decision as to whether to file
notices of removal in each Action by the current Action Removal
Deadline.
In this light, the Debtors are seeking to preserve their rights
by requesting a further extension of the Action Removal Period
for approximately three months.
The Court will convene a hearing to consider the Debtors' request
on August 26, 2010.
About FairPoint Communications
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.
FERRO CORP: S&P Raises Corporate Credit Rating to 'BB-'
-------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its
corporate credit rating on Cleveland-based Ferro Corp. to 'BB-'
from 'B'. The outlook is stable.
S&P also assigned its 'B' issue-level rating and '6' recovery
rating to Ferro's proposed $250 million senior unsecured notes due
2018 to be drawn down from its shelf registration dated July 27,
2010. The '6' recovery rating indicates S&P's expectation for
negligible (0% to 10%) recovery in the event of a payment default.
S&P also raised the issue-level rating on Ferro's $172.5 million
6.5% convertible senior unsecured notes due 2013 to 'B' from
'CCC+'. The '6' recovery rating is unchanged, and reflects S&P's
expectation for negligible (0% to 10%) recovery in the event of a
payment default. S&P will withdraw the ratings on the existing
notes if the issue is retired as planned.
"The upgrade reflects Ferro's improved credit measures due to
higher earnings and cash flow in the first six months of 2010,
S&P's expectation that these improvements can be sustained, and
lower debt levels relative to a year ago," said Standard & Poor's
credit analyst Liley Mehta. A demand recovery and benefits of
ongoing restructuring actions helped to improve the company's
operating performance substantially in the first half of 2010 over
very weak results in the prior year. These improvements, combined
with a meaningful pay down of debt, have lifted the ratio of funds
from operations to total debt to about 28% as of June 30, 2010,
from trough levels of 9% in 2009. If Ferro completes the
financing plan as proposed, it will benefit from lower interest
costs and extended debt maturities.
The company expects to use a portion of the net proceeds from the
senior notes offering to purchase its 6.50% convertible senior
notes due 2013 in a cash tender offer that will expire on Aug. 23,
2010. The remaining proceeds from the notes offering, along with
borrowings under the proposed $350 million revolving credit
facility (unrated) would be used to repay all borrowings
outstanding under the company's existing credit facility.
The ratings on Ferro Corp., a producer of electronic materials,
ceramic glaze, inorganic pigments and colorants, polymer
additives, and specialty plastics, reflect its fair business risk
profile and aggressive financial risk profile.
The company's business position benefits from a diverse portfolio
of performance materials and chemicals (generating revenues of
about $1.9 billion) that supports the expectation for improved
profitability as economic conditions improve, extensive geographic
and customer diversification, and an improved cost structure. The
company enjoys good customer and geographic diversity with the top
10 customers accounting for 15% of sales, and sales generated
outside the U.S. accounting for 54%. Offsetting factors include
vulnerability to raw material cost fluctuations, significant
exposure to residential and commercial construction markets, and
the discretionary nature of many products which renders their
demand highly sensitive to extended cyclical downturns.
Additionally, some business segments (such as polymer additives at
15% of sales) consist of products whose profitability is suffering
because of markets that are commodity-like and highly competitive.
The company has six business segments including Electronic
Materials, Color and Glass Performance Materials (which include
high-quality glazes, enamels, pigments, dinnerware decoration
colors), Performance Coatings (which include porcelain enamel for
appliances and cookware), Polymer Additives, Specialty Plastics,
and Pharmaceuticals. Electronic materials is a key business, and
the company is a worldwide leader in conductive pastes for solar
cells. This segment offers the highest growth prospects with
demand for metal pastes and powders used in solar cells and plasma
displays expected to continue to propel volume growth. However,
Ferro remains exposed to downturns in its key end markets,
including construction materials and electronics, and demand
softness contributed to weaker operating results in 2009.
Operating results have improved substantially in 2010 supported by
a recovery in customer demand, particularly in the electronic
materials segment (due to conductive pastes and powders) and
performance coatings, and benefits of ongoing restructuring
actions. However, the markets for appliances (which mainly affect
Ferro's porcelain enamel business), residential housing, and
automobiles will likely continue to be sluggish in the near term.
The stable outlook indicates that S&P expects the company to
maintain credit metrics at appropriate levels, even if sluggish
economic conditions persist in the near term. The company's
improved cost structure, recovering market demand trends, and
above par credit measures are supporting factors. The successful
completion of the proposed financing plan would further solidify
the company's position at the current rating by extending debt
maturities, and reducing interest costs. S&P views liquidity as
adequate, and it could further improve from current levels, if the
participants under Ferro's precious metals program no longer
require cash collateralization in the year ahead.
S&P could raise the rating, if Ferro maintains an FFO to total
adjusted debt ratio of more than 25% consistently and if the
macroeconomic outlook improves meaningfully over the next 12 to 18
months. Although S&P expects operating results to remain stable
in the next few quarters, S&P could lower the ratings if
unexpected business challenges result in decreased liquidity,
negative free cash flow from operations, and a deterioration in
the FFO to total adjusted debt ratio to below 12%. Such a
scenario could result from operating margins deteriorating to less
than 10% and significant volume declines if the pace of economic
recovery falters considerably in the remainder of 2010 and in
2011.
FGIC CORP: Sharps Extends Exchange Offer for RMBS Until Aug. 10
---------------------------------------------------------------
Sharps SP I LLC has extended the expiration date of its offer to
exchange residential mortgage-backed securities and asset-backed
securities insured by Financial Guaranty Insurance Company.
The last time for holders to tender Eligible Insured Securities in
the offer is 11:59 p.m., New York City time, on August 10, 2010.
Sharps SP I on July 29 announced the results of its exchange offer
and the status of certain discussions with holders of Eligible
Insured Securities as of July 28. As of July 28, (i) Eligible
Insured Securities representing $2,495,379,545 in current unpaid
principal balance measured as of April 30, 2010 have been tendered
into the offer, (ii) non-binding agreements have been reached by
the Offeror or FGIC and Eligible Insured Securities holders to
tender Eligible Insured Securities totaling $121,808,237 in
aggregate current unpaid principal balance measured as of April
30, 2010, and (iii) letters of transmittal have been completed,
although the Eligible Insured Securities have not yet been
delivered, with respect to Eligible Insured Securities totaling
$846,909,885 in current unpaid principal balance measured as of
April 30, 2010. The aggregate current unpaid principal balance of
the Eligible Insured Securities represents 37.2% of all Eligible
Insured Securities subject to the exchange offer.
The offer was originally set to expire on April 29, 2010, but has
been extended several times.
On June 14, FGIC agreed to provide additional consideration in the
form of consideration surplus notes in connection with the
Exchange Offer. FGIC, however, said the consideration surplus
notes may only be issued if the New York State Insurance
Department approves an application for issuance to be filed by
FGIC.
FGIC will not provide any additional amounts or types of
consideration to consummate the exchange offer.
On June 29, FGIC informed Sharps SP I that it has reached
definitive agreements or agreements in principle relating to
certain ABS CDOs and other obligations -- Other Restructuring
Transactions. The Other Restructuring Transactions are among
those originally contemplated as contributing to FGIC having a
policyholders' surplus of at least $220 million, a condition to
the offer. Pursuant to the Other Restructuring Transactions, FGIC
will agree to pay $233 million in aggregate to mitigate, commute
or terminate its exposure with respect to those ABS CDOs and other
obligations, which have an aggregate current principal balance of
approximately $4.4 billion. The Other Restructuring Transactions
are conditioned upon, among other things, the successful closing
of the offer and, if applicable, completion of definitive
documentation acceptable to the parties thereto.
About FGIC
FGIC Corporation ("FGIC Corp.") 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
("FGIC") -- http://www.fgic.com-- and it depends on dividend
payments by FGIC for sustaining its operations.
As of March 31, 2010, FGIC has total admitted assets
$1,806,931,000 against total liabilities of $3,447,335,000,
resulting in statutory deficit of $1,640,404,000.
Due to FGIC's statutory deficit and capital impairment, FGIC is
subject to an order issued by the New York State Insurance
Department pursuant to Section 1310 of the New York Insurance Law,
requiring FGIC to suspend paying any and all claims effective
November 24, 2009, and to take steps as may be necessary to remove
the impairment of its capital and to return to compliance with its
minimum surplus to policyholders' requirement by not later than
June 15, 2010. FGIC submitted a Surplus Restoration Plan to the
NYID on March 25, 2010.
On August 4, 2010, FGIC Corp. filed for Chapter 11 (Bankr.
S.D.N.Y. Case No. 10-14215). The Company aims to deleverage its
balance sheet and restructure more than $300 million of debt
during the Chapter 11 process. As part of the filing, the Company
submitted a plan of reorganization and disclosure statement, and
the Company expects to progress quickly through the Chapter 11
case.
None of its subsidiaries or affiliates, including FGIC, are part
of the Chapter 11 filing. Kirkland & Ellis LLP assists FGIC Corp.
in its restructuring efforts. The Garden City Group serves as
claims and notice agent.
FGIC CORP: Case Summary & 4 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: FGIC Corporation
125 Park Avenue
New York, NY 10017
Bankruptcy Case No.: 10-14215
Chapter 11 Petition Date: August 3, 2010
About the Debtor: 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.
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Debtor's Counsel: Brian S. Lennon, Esq.
Kirkland & Ellis LLP
601 Lexington Avenue
New York, NY 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
E-mail: brian.lennon@kirkland.com
Debtor's
Claims & Notice
Agent: Garden City Group, Inc. a
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $100,000,001 to $500,000,000
The petition was signed by John S. Dubel, chief executive officer.
Debtor's List of 4 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Wilmington Trust FSB Bond Debt $345,515,068
166 Mercer Street, Suite 2-R
New York, NY 10012
JPMorgan Chase Bank, N.A., Bank Debt $46,000,000
As Administrative Agent
277 Park Avenue, 8th Floor
New York, NY 10017
Financial Guaranty Intercompany $30,000
Insurance Company Claim
125 Park Avenue
New York, NY 10017
Dubel & Associates, LLC Monitoring Fee $10,500
FIBREK'S INC: Moody's Assigns 'B1' Rating on New Secured Loan
-------------------------------------------------------------
Moody's Investors Service assigned Fibrek's Inc. new secured term
loan a B1 rating and upgraded the company's corporate family
rating to B2 from B3, and the company's liquidity rating SGL-2
from SGL-3. The rating outlook was changed to stable. The
upgrade reflects the company's increased financial flexibility
following the deleveraging from its recent recapitalization as
well as the conversion of the company to a tax-paying corporation
from a distribution-focused income trust structure, which had
constrained the company's ratings. In addition, the upgrade
recognizes the company's improved liquidity position and debt
maturity profile.
Fibrek's B2 corporate family rating reflects the company's cost
competitive asset base with good backward integration into energy
supply, improved capital structure and good liquidity profile.
Offsetting these strengths is the company's limited flexibility
due to its small scale, lack of diversification and the inherent
volatility of the company's market pulp business. The company has
limited operational flexibility with only one virgin fiber based
market pulp mill in Canada and two recycled based pulp mills in
the US.
The stable outlook reflects Moody's expectation that Fibrek will
maintain good liquidity and generate acceptable normalized credit
protection measures for its rating.
Fibrek's SGL-2 rating reflects the company's good liquidity
position. The company's liquidity is primarily comprised of
approximately CND$50 million of availability (as of June 30th,
2010) under the company's new CND$75 million asset base revolving
credit facility that matures in 2013 and $25 million in cash (pro
forma for the recent recapitalization). Moody's estimates modest
free cash flow generation with no debt maturities over the next 12
months. Covenant issues are not expected over the near term.
The ratings are constrained by Fibrek's small scale and focus on
the volatile market pulp segment. However, if the company is able
to diversify its product or geographic diversification while
sustaining strong credit protection metrics, upward ratings
pressure may develop. Quantitatively, this may result if Fibrek
is able to sustain normalized (RCF-CapEx)/TD exceeding 10% while
maintaining good liquidity.
Fibrek's ratings could come under downward rating pressure if pulp
market conditions deteriorated suddenly leading to a material
weakening of the company's liquidity profile.
Upgrades:
Issuer: Fibrek Inc.
-- Probability of Default Rating, Upgraded to B2 from B3
-- Speculative Grade Liquidity Rating, Upgraded to SGL-2 from
SGL-3
-- Corporate Family Rating, Upgraded to B2 from B3
Assignments:
Issuer: Fibrek Inc.
-- Senior Secured Bank Credit Facility, Assigned 33 - LGD3 to B1
Outlook Actions:
Issuer: Fibrek Inc.
-- Outlook, Changed To Stable From Negative
Withdrawals:
Issuer: Fibrek Inc.
-- Senior Secured Bank Credit Facility, Withdrawn, previously
rated B2, LGD3, 38%
Moody's last rating action was on 10 July 2009 when Fibrek's CFR
was downgraded to B3 from B1 concurrent with a revision of the
company's outlook to negative from stable.
Fibrek is the successor entity of SFK Pulp Fund following the
company's conversion to a tax paying corporation from a publicly
traded income trust. Headquartered in Longueuil, Quebec, Fibrek
operates a northern bleached softwood kraft pulp mill in Saint-
Felicien, Quebec (approximately 450 kilometers north of Montreal)
and two recycled bleached kraft pulp mills in Menominee, Michigan
and Fairmont, West Virginia.
FIRST DATA: Loan Amendments Won't Affect Moody's 'B3' Rating
------------------------------------------------------------
First Data Corporation's announcement that the company intends to
seek amendments to its senior credit facilities will not impact
the company's B3 corporate family rating, probability of default
rating, instrument ratings, or stable outlook.
The last rating action was on May 7, 2009, when Moody's downgraded
First Data Corporation's corporate family rating to B3 from B2.
With over $9.6 billion in total revenues for the twelve months
ended March 30, 2010, headquartered in Atlanta, Georgia, First
Data Corporation is a leading provider of electronic commerce and
payment solutions for financial institutions, merchants, and other
organizations worldwide.
FLETCHER GRANITE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Fletcher Granite Company, LLC
534 Groton Road
Westford, MA 01886
Bankruptcy Case No.: 10-43884
Chapter 11 Petition Date: August 2, 2010
Court: United States Bankruptcy Court
District of Massachusetts (Worcester)
Judge: Melvin S. Hoffman
Debtor's Counsel: David J. Reier, Esq.
Tel: (617) 973-6145
E-mail: dreier@pbl.com
Laura Otenti, Esq.
Tel: (617) 973-6100
E-mail: lotenti@pbl.com
POSTERNAK BLANKSTEIN & LUND LLP
Prudential Tower
800 Boylston Street
Boston, MA 02199-8004
Fax: (617) 722-4937
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Steven Petrarca, director of The
O'Conner Group, Inc., chief restructuring officer.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
CO.FI Plast USA Inc. Trade debt $173,180
221 Railway
Milbank, SD 57252
National Grid Utilities $137,945
P.O. Box 1005
Woburn, MA 01807-1005
FC CONST/JH LYNCH JTCK RI Trade debt $102,847
P.O. Box 1630
Westport, MA 02790
Rucci, Bardaro & Barrett, PC Accounting $99,495
Middlesex Corporation Trade debt $98,523
Massachusetts Department of Revenue Sales tax $89,704
National Grid (Keyspan) Utilities $88,528
Technowire Company, Inc. Trade debt $87,147
Tianjin Foreign Trade Co., Ltd Trade debt $70,682
Davis, Malm & D'Agostine Legal $50,688
Husqvarna Construction Product Trade debt $50,567
Consigli Construction Trade debt $50,092
Lighthouse Masonry Inc Trade debt $46,534
Dennis K. Burke, Inc. Trade debt $43,732
Marois Brothers, Inc. Trade debt $35,624
Granite State Concrete Trade debt $35,409
Aggregate Industries NE Region Trade debt $33,139
Gerald D. Sarno Trade debt $31,607
Cashman & Lovely PC Legal $30,802
Advanced Fluid Systems Trade debt $30,563
FOR YOU CLEANERS: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: For You Cleaners, Inc.
dba Carlton Cleaners
805 Eighth Avenue
New York, NY 10019
Bankruptcy Case No.: 10-14153
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Debtor's Counsel: Douglas J. Pick, Esq.
Pick & Zabicki LLP
369 Lexington Avenue, 12th Floor
New York, NY 10017
Tel: (212) 695-6000
Fax: (212) 695-6007
E-mail: dpick@picklaw.net
Total Assets: $269,945
Total Debts and Equity: $269,945
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Young Ae Lee, president.
Debtor-affiliates that filed separate Chapter 11 petitions:
Petition
Debtor Case No. Date
------ -------- ----
Eastern Farms, Inc. 10-14150 07/30/10
Lee's Seoul Cleaners, Inc. 10-14156 07/30/10
New 97 Cleaners, Inc. 10-14151 07/30/10
FORD MOTOR: Newest Vehicles Boost Growth; July Sales Up 5%
----------------------------------------------------------
Ford Motor Co. said in a statement that its newest vehicles helped
the company continue to grow as Ford, Lincoln and Mercury dealers
delivered 166,092 new vehicles in July -- a 5% increase versus a
year ago, when "Cash for Clunker" sales started to surge.
Year-to-date sales totaled 1.12 million, up 24%, with growth
across Ford's full family of cars (up 21%), utilities (up 19%) and
trucks (up 32%).
"Customers are rewarding Ford for providing the performance they
want and the fuel economy they need," said Ken Czubay, Ford vice
president, U.S. Marketing, Sales and Service. "New class-leading
powertrains are the 'secret weapon' in every new product we are
bringing to market."
The Ford Fiesta, which offers 40 miles per gallon EPA highway fuel
economy, eclipsed 3,000 sales in its second month in America and
has been well-received by California customers. Highly acclaimed
in Europe, Asia, and North America, the Fiesta is the first car
developed under the ONE Ford global product development system.
Sales for the 2011 F-Series Super Duty were 63% higher than a year
ago, capturing more than 50% of the heavy duty pickup segment.
Ford recently announced it will begin production of the most
powerful diesel engine ever installed in a heavy-duty pickup
(best-in-class 800 lb.-ft. of torque and 400 horsepower). In
addition, the Super Duty's 6.7-liter Power Stroke diesel will
provide improved fuel economy - a full 20% better fuel efficiency
than the 2010 model.
"In an industry-first customer loyalty program, Ford will provide
the power upgrades free of charge to all current owners of a 2011
Super Duty diesel pickup," said Mr. Czubay.
Retail sales for the Mustang were 43% higher than a year ago.
Since the arrival of the 2011 model featuring new V-6 and V-8
engines with more horsepower and improved fuel economy, Mustang's
share has climbed to levels not seen since January 2009.
"With our broad range of products -- from Fiesta to Super Duty --
Ford is connecting with consumers," said Ken Czubay, Ford vice
president, U.S. Marketing, Sales and Service. "Ford and its
dealers continue to offer customers the strongest value
proposition in the industry - class-leading fuel economy, quality
and growing resale values."
In July, Ford retail sales were up 5% versus a year ago, and Ford
appears to have gained retail market share for the 21st time in
the last 22 months. Fleet sales were up 2%, reflecting higher
sales of Ford's hard-working trucks to commercial customers.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents. With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo. The Company provides financial
services through Ford Motor Credit Company.
The Company's balance sheet at June 30, 2010, showed
$191.9 billion in total assets and $197.4 billion in total
liabilities, for $5.4 billion in total stockholders' deficit.
In August 2010, Standard & Poor's Ratings Services raised its
corporate credit rating on Ford Motor Co. and FordMotor Credit Co.
LLC to 'B+' from 'B-'. "The upgrade reflects S&P's reassessment
of Ford's business risk profile to weak from vulnerable, and its
financial risk profile to aggressive from highly leveraged," said
Standard & Poor's credit analyst Robert Schulz. S&P believes Ford
is making progress in stabilizing, and perhaps improving, its U.S.
market shares Still, S&P believes underlying business risks
remain high.
FORESIGHT ENERGY: S&P Assigns 'B-' Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B-'
corporate credit rating to Palm Beach Gardens, Fla.-based
Foresight Energy LLC. The rating outlook is positive.
At the same time, S&P assigned a 'B' issue-level rating, one notch
above the corporate credit rating, to the company's proposed
$400 million senior unsecured credit notes due 2017. The recovery
rating on these notes is '2', indicating the expectation that
lenders can expect substantial (70% to 90%) recovery in the event
of a payment default. The ratings are based on preliminary terms
and conditions.
The notes are being sold pursuant to Rule 144A and will not be
registered securities. Proceeds from the proposed note offering
will be used to repay existing indebtedness.
"The 'B-' corporate credit rating reflects the combination of the
company's highly leveraged financial profile and its vulnerable
business risk profile," said Standard & Poor's credit analyst
Marie Shmaruk. "The rating also reflects the risks inherent in
building out its planned mines on time and budget, its lack of
operating diversity, and the high fixed cost nature of longwall
mining."
In addition, the company will need to obtain customers and
contracts for significant amounts of planned production from mines
currently under construction during the next few years. Also, the
challenges of coal mining, including operating problems, price
volatility, transportation bottlenecks, weather-related
disruptions, and increasingly stringent environmental and safety
regulations remain key risks.
FOREST PARK: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Forest Park Properties, LLC
1111 Hendersonville Road
Asheville, NC 28803
Bankruptcy Case No.: 10-10913
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
Western District of North Carolina (Asheville)
Judge: George R. Hodges
Debtor's Counsel: David G. Gray, Esq.
81 Central Avenue
Asheville, NC 28801
Tel: (828) 254-6315
E-mail: judyhj@bellsouth.net
Scheduled Assets: $1,100,000
Scheduled Debts: $1,884,800
The Debtor's list of unsecured creditors filed together with the
petition was empty.
The petition was signed by Michael S. Wasson, member/manager.
FOURTH QUARTER PROPERTIES: Files for Bankruptcy in Georgia
----------------------------------------------------------
Fourth Quarter Properties 166 LLC and its affiliates filed for
Chapter 11 protection on Aug. 3 in Newnan, Georgia (Bankr. N.D.
Ga. Case No. 10-12920).
Fourth Quarter estimated assets of as much as $50 million against
debts of as much as $100 million in its Chapter 11 petition.
Stanley E. Thomas was listed as the largest unsecured creditor,
owed $25.7 million. The company also owes $615,380 to the Coweta
County Tax Commissioner and "an unknown" sum to the Georgia
Department of Revenue, according to the petition.
FURMAN HASKETT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Joint Debtors: Furman Ray Haskett, Jr.
Patricia Hunt Haskett
2427 Moorefield Memorial Hwy.
Pickens, SC 29671
Bankruptcy Case No.: 10-05443
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
District of South Carolina (Spartanburg)
Judge: John E. Waites
Debtor's Counsel: Robert H. Cooper, Esq.
3523 Pelham Road, Suite B
Greenville, SC 29615
Tel: (864) 271-9911
E-mail: bknotice@thecooperlawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Joint Debtors did not file a list of its largest unsecured
creditors together with its petition.
The petition was signed by the Joint Debtors.
G&F CARE: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: G&F Care, LLC
P.O. Box 100
Mayo, SC 29368
Bankruptcy Case No.: 10-05449
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
District of South Carolina (Spartanburg)
Judge: Helen E. Burris
Debtor's Counsel: Robert H. Cooper, Esq.
3523 Pelham Road, Suite B
Greenville, SC 29615
Tel: (864) 271-9911
E-mail: bknotice@thecooperlawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Emily Easler Handy, power of Attorney
for Thomas Glenn Easler, managing member.
GANDER PARTNERS: Automatic Stay Extended to Bank Loan Guarantors
----------------------------------------------------------------
WestLaw reports that a preliminary injunction would issue to
prevent a bank from pursuing state court lawsuits against
guarantors of the Chapter 11 debtors' debt. The assets of the
guarantors, the debtors' principals, were a source of funds for
the debtors' reorganization efforts, and preservation of the
principals' credit standing would play a vital role in the
debtors' reorganization efforts. The relatively limited harm to
the bank if this state court litigation was delayed while the
debtors pursued reorganization efforts that sought to pay the bank
in full by refinancing its loans had to be balanced against the
significant harm to the debtors if the lawsuits were not
temporarily stayed. Moreover, the principals each had contributed
their time, energy and money to the debtors in the past and were
capable of doing so in the future, especially if not burdened with
defense of the state court litigation. In re Gander Partners LLC,
--- B.R. ----, 2010 WL 2802668 (Bankr. N.D. Ill.) (Cox, J.).
Gander Partners LLC, Copper Peak Development Corp., Prairie View
Development Corp., sought chapter 11 protection (Bankr. N.D. Ill.
Case Nos. 10-08877, 10-08879 and 10-08882) on Mar. 3, 2010. Scott
R. Clar, Esq., at Crane Heyman Simon Welch & Clar in Chicago,
represents the Debtors. Copies of the Debtors' chapter 11
petitions are available at
http://bankrupt.com/misc/ilnb10-08877.pdfand
http://bankrupt.com/misc/ilnb10-08879.pdfand
http://bankrupt.com/misc/ilnb10-08882.pdfat no charge.
GARLOCK SEALING: Says Asbestos Panel Counsel's Fees Unreasonable
----------------------------------------------------------------
Garlock Sealing Technologies LLC complains that the hourly rates
at which the Official Committee of Asbestos Personal Injury
Claimants proposes to pay Caplin & Drysdale, Chartered are
unreasonable.
In its application, the Asbestos Claimants Committee says it
intends to pay no less than eight attorneys rates above $500 per
hour, including one attorney a rate of $860 per hour and another
at a rate of $950 per hour, Jonathan C. Krisko, Esq., at Robinson
Bradshaw & Hinson, P.A., in Charlotte, North Carolina, counsel to
the Debtors, points out.
Mr. Krisko argues that the Application does not make a sufficient
showing whether those rates, which are substantially higher than
other professionals retained in the Debtors' Chapter 11 cases,
are customary for work "of this nature and in this venue."
The Application also fails to provide specific reasons and
information concerning the specific professionals that warrant
that substantial compensation, Mr. Krisko contends. In fact, the
Debtors requested that Caplin provide this information to them
for their review, he discloses. In addition, the Application
fails to make clear that the rates proposed do not exceed rates
Caplin charges other clients for similar services, he asserts.
The Debtors, therefore, ask the Court to deny the Application to
the extent the Asbestos Claimants Committee seeks the current
proposed rates.
About Garlock Sealing
Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is
an EnPro Industries, Inc. company (NYSE: NPO). For more than a
century, Garlock has been helping customers efficiently seal the
toughest process fluids in the most demanding applications.
On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr.
W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to
resolve all current and future asbestos claims against Garlock
under Section 524(g) of the U.S. Bankruptcy Code. The Debtor
estimated assets of up to $1 billion and debts of up to
$500 million as of the Petition Date. Affiliates The Anchor
Packing Company and Garrison Litigation Management Group,
Ltd., also filed for bankruptcy.
The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.
Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor in its Chapter 11 effort. Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for Asbestos matters.
Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing
Bankruptcy News. The newsletter tracks the chapter 11 proceeding
undertaken by Garlock Sealing Technologies LLC and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GARLOCK SEALING: Wants to Remove Civil Actions Until March 31
-------------------------------------------------------------
Garlock Sealing Technologies LLC and its debtor affiliates ask
Judge George R. Hodges of the U.S. Bankruptcy Court for the
Western District of Northern Carolina to extend the time within
which they may file notices of removal of civil actions and
proceedings to March 31, 2011.
Section 1452 of Judiciary Procedures Code provides in pertinent
part that a party may remove any claim or cause of action in
a civil action other than a proceeding before the United States
Tax Court or a civil action by a governmental unit to enforce that
governmental unit's police or regulatory power, to the district
court if the district court has jurisdiction of the claim or cause
of action.
Rule 9027 of the Federal Rules of Bankruptcy Procedure provides
that if the claim or cause of action in a civil action is pending
when a case under the Bankruptcy Code is commenced, a notice of
removal may be filed only within the longest of (A) 90 days after
the order for relief in the case under the Bankruptcy Code, (B) 30
days after entry of an order terminating a stay, if the claim or
cause of action in a civil action has been stayed under Section
362 of the Bankruptcy Code, or (C) 30 days after a trustee
qualifies in a Chapter 11 reorganization case but not later than
180 days after the order for relief.
Rule 9006 of the Federal Rules of Bankruptcy Procedure permits the
Court to enlarge the period to remove actions provided by Rule
9027.
As of the Petition Date, Garlock had about 100,000 asbestos claims
pending against it. The Debtors are also involved in other civil
trial matters and appeals.
For this reason, the Debtors seek an extension of the Removal
Period to avoid multiple filings seeking extensions of the
deadline with respect to suits where the stay is lifted at a later
date, and to ensure that if a deadline is set by operation of Rule
9027, that deadline be extended automatically by operation of the
prayed-for order until no earlier than the proposed March 31, 2011
deadline.
Jonathan C. Krisko, Esq., at Robinson Bradshaw & Hinson, P.A., in
Charlotte, North Carolina -- jkrisko@rbh.com -- tells the Court
that at this time, the Debtors have not had an adequate
opportunity to determine whether to remove any prepetition
actions, which may be subject to removal. For one, he says, the
number of Prepetition Actions that may be subject to removal are
so numerous that they do not permit individual evaluation at this
time concerning whether removal would be beneficial to the Debtors
and their estates. He further contends that many Prepetition
Actions are correlated with claims that will be the subject of
claims proceedings and common issue litigation. Given the process
of claims and claims evaluation, objection, and litigation, it
would be premature to conclusively identify any specific
Prepetition Actions that should be removed, he says.
Until the Debtors are able to make an informed decision regarding
the advisability of removing any or all of the Prepetition
Actions, the Debtors believe that the most prudent and efficient
course of action is to extend the removal period until March 31,
2011, Mr. Krisko maintains.
About Garlock Sealing
Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is
an EnPro Industries, Inc. company (NYSE: NPO). For more than a
century, Garlock has been helping customers efficiently seal the
toughest process fluids in the most demanding applications.
On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr.
W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to
resolve all current and future asbestos claims against Garlock
under Section 524(g) of the U.S. Bankruptcy Code. The Debtor
estimated assets of up to $1 billion and debts of up to
$500 million as of the Petition Date. Affiliates The Anchor
Packing Company and Garrison Litigation Management Group,
Ltd., also filed for bankruptcy.
The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.
Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor in its Chapter 11 effort. Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for Asbestos matters.
Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing
Bankruptcy News. The newsletter tracks the chapter 11 proceeding
undertaken by Garlock Sealing Technologies LLC and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GARLOCK SEALING: Wins Nod to Assume Daikin-America Contract
-----------------------------------------------------------
Garlock Sealing Technologies, LLC, and Daikin-America, Inc., are
parties to an executory contract for the consignment and purchase
of resin materials used in Garlock's manufacturing operations.
As of the Petition Date, Garlock owed Daikin-American $407,010 for
its April and May, 2010 invoices. Garlock has also used $90,154
worth of Daikin-American materials, between the last invoice date
and the Petition Date.
According the Debtors sought and obtained the Court's permission
to assume the Contract and pay $497,165 as cure amount under the
Contract.
Shelley K. Abel, Esq., at Rayburn Cooper & Durham, P.A., in
Charlotte, North Carolina, relates that Daikin-American is an
important vendor with whom the Debtors wish to continue their
business relationship. The terms and conditions of the Contract
are favorable to Garlock, she further notes. She also assures
the Court that payment of the cure amount will cause no
disruption to the Debtors' businesses because the Debtors have
cash on hand exceeding the cure amount.
About Garlock Sealing
Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is
an EnPro Industries, Inc. company (NYSE: NPO). For more than a
century, Garlock has been helping customers efficiently seal the
toughest process fluids in the most demanding applications.
On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr.
W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to
resolve all current and future asbestos claims against Garlock
under Section 524(g) of the U.S. Bankruptcy Code. The Debtor
estimated assets of up to $1 billion and debts of up to
$500 million as of the Petition Date. Affiliates The Anchor
Packing Company and Garrison Litigation Management Group,
Ltd., also filed for bankruptcy.
The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.
Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor in its Chapter 11 effort. Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for Asbestos matters.
Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing
Bankruptcy News. The newsletter tracks the chapter 11 proceeding
undertaken by Garlock Sealing Technologies LLC and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GATEHOUSE MEDIA: Lowers Net Loss to $5.3 Mil. in Q2 2010
--------------------------------------------------------
Gatehouse Media Inc. filed its quarterly report on Form 10-Q,
reporting a net loss of $5.3 million on $144.2 million of total
revenues for the three months ended June 30, 2010, compared with a
net loss of $496.4 million on $151.3 million total revenues for
the same period a year ago.
The Company's balance sheet at June 30, 2010, showed
$572.2 million in total assets and $1.3 billion in total
liabilities, for a $795.1 million in stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?67e4
GateHouse Media, Inc. -- http://www.gatehousemedia.com/--
headquartered in Fairport, New York, is one of the largest
publishers of locally based print and online media in the United
States as measured by its 97 daily publications. GateHouse Media
currently serves local audiences of more than 10 million per week
across 21 states through hundreds of community publications and
local Web sites.
GENERAL GROWTH: Blackstone Expects to Complete $500MM Investment
----------------------------------------------------------------
Blackstone Group LP is wrapping up about $850 million of deals,
including a $500 million investment in General Growth Properties,
Kris Hudson of The Wall Street Journal reports, citing people
familiar with the matter.
GGP's August 2, 2010 First Amended Joint Plan of Reorganization
previously mentioned a proposed sale of to $500 million of GGP's
Investors allocated equity to Blackstone Real Estate Partners VI
L.P., an affiliate of Blackstone Group, on a pro rata basis.
Blackstone is expected to complete the $500 million investment
this week, the Journal says, citing sources. In exchange for the
investment, Blackstone will receive new shares equal to roughly 5%
of GGP' total shares when it exits bankruptcy this year, Mr.
Hudson notes. GGP said in its Plan that Blackstone Real Estate
Partners may subscribe for about 7.6% of New GGP's and Spinco's
Common Stock allocated to each of the Investors.
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: CFO Douglas Does Not Own Securities of GGP
----------------------------------------------------------
Steven J. Douglas, executive vice president and chief financial
officer of General Growth Properties, Inc., disclosed that he does
not beneficially own any securities of GGP, according to an
initial statement of beneficial ownership of securities dated
July 29, 2010, filed with the Securities and Exchange Commission.
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: Files First Amended Plan Of Reorganization
----------------------------------------------------------
General Growth Properties, Inc., and its 125 debtor affiliates
submitted to Judge Allan L. Gropper of the U.S. Bankruptcy Court
for the Southern District of New York their First Amended Joint
Plan of Reorganization and accompanying Disclosure Statement on
August 2, 2010. A list of the Plan Debtors is available for free
at http://bankrupt.com/misc/ggp_Aug2PlanDebtors.pdf
Under the First Amended Plan, REP Investments LLC, an affiliate of
Brookfield Asset Management; Fairholme Capital Management and
Pershing Square Capital will provide $8.395 billion, instead of
$8.55 billion, of capital commitments to GGP to facilitate its
emergence from Chapter 11, Marcia L. Goldstein, Esq., at Weil,
Gotshal & Manges LLP, in New York, relates.
Specifically, a $1.345 billion reinstatement of the 5.375% Rouse
Notes, the 6.75% Rouse Notes and the 7.20% Rouse Notes will
replace the previously contemplated $1.5 billion five-year term
loan to GGP, Ms. Goldstein explains. The Teacher Retirement
System of Texas' $500 million investment in shares of New GGP
common stock at $10.25 per share, which will replace the
Investors' $500 million equity backstop, will remain, she says.
The First Amended Plan contains these key modifications to the
July 12, 2010 Joint Plan of Reorganization and Investment
Agreements with:
(1) Reinstatement of $1.3 billion of Rouse Bonds due in 2012
and 2013.
GGP's emergence financing needs will be satisfied in part
by the reinstatement of these bonds, so the company does
not expect to need the previously contemplated term loan.
(2) Enhancement of the clawback feature of the Investment
Agreements, which gives GGP the ability to issue equity at
higher prices and retire a portion of the lower-priced
equity in the Investment Agreements, to extend the length
of GGP's clawback right after the company emerges from
bankruptcy.
In addition, $350 million of Pershing Square's shares will
be available for clawback for a period of 180 days after
emergence. In order to facilitate the extension of
Pershing Square's clawback, $350 million of Pershing
Square's initial investment will be in the form of a note
rather than equity. In the event these shares are not
clawed back from Pershing Square, the company has the
option to retire the note by putting to Pershing Square
35 million shares at a price of $10.00 per share.
(3) Conversion of the $250 million backstop equity commitment
for a rights offering by Spinco to a $250 million stock
purchase by the Sponsors at closing.
The price of the stock has been set at the economically
neutral price of $4.76 per share, reflecting the
originally contemplated backstop investment at $5.00 per
share, net of fees associated with the original rights
offering. This modification is expected to provide
greater immediate liquidity to Spinco and allow the
company to avoid the need for short-term financing.
(4) Consent to a sale at closing by the Investors of up to
$500 million of their allocated equity to an affiliate of
The Blackstone Group on a pro rata basis.
At closing, Blackstone Real Estate Partners VI L.P. may
subscribe for about 7.6% of the New GGP Common Stock and
Spinco Common Stock allocated to each of the Investors and
receive an allocation of each Investors' New GGP Warrants
and Spinco Warrants. The closing commitments of each of
the Sponsors are unaffected by these equity sales to
Blackstone.
GGP filed with the SEC on August 3, 2010, full-text copies of the
Investment Agreements accessible for free at:
* Amended and Restated Cornerstone Investment Agreement with
REP Investments, at http://ResearchArchives.com/t/s?679f
* Amended and Restated Stock Purchase Agreement with Pershing
Square, at http://ResearchArchives.com/t/s?67a0
* Amended and Restated Stock Purchase Agreement with Fairholme
Fund, at http://ResearchArchives.com/t/s?67a1
A blacklined copy of the Investment Agreements, as modified on
August 2, 2010, is available for free at:
http://bankrupt.com/misc/ggp_Aug2InvPacts_blacklined.pdf
GGP, in a public statement dated August 2, 2010, said the
modifications provide it more flexibility in managing its capital
structure.
"We are very pleased with our ability to continue to enhance the
Investment Agreements and our capital structure for the benefit of
the company and its stakeholders," said Thomas Nolan, president
and chief operating officer of GGP. "The amended clawback rights
enhance our ability to sell $1.9 billion of equity at higher
prices than committed by the Investors in the original Investment
Agreements, market conditions permitting. We have also improved
our flexibility to manage our balance sheet and access the capital
markets. We remain on track to emerge from Chapter 11 in October
and continue to build on our leadership position in the industry.
At the same time, these modifications enhance Spinco's ability to
maximize value for its stakeholders."
If the Court determines that the Rouse Notes cannot be reinstated,
the Plan Debtors intend to source a $1.5 billion term loan and a
$300 million revolver to provide the additional financing
necessary to consummate the Plan and for post-Effective Date
operations, Ms. Goldstein says.
Modifications to New GGP
and Spinco Structures
As previously reported, GGP will be split into two publicly-traded
companies, "New GGP" and "Spinco" upon emergence.
The First Amended Plan notes that New GGP would commence a post-
emergence public offering. The Plan Debtors say the New GGP Post-
Emergence Public Offering and the $2.15 billion New GGP
Mandatorily Exchangeable Pre-Emergence Notes Offering are intended
to replace a portion of the financing commitments for New GGP.
New GGP previously filed a registration statement on Form S-11
with the Securities and Exchange Commission on July 15, 2010, in
connection with the $2.15 billion New GGP Mandatorily Exchangeable
Pre-Emergence Notes offering. If the New GGP Pre-Emergence Notes
are not issued, Fairholme, Pershing Square and Texas Teachers will
fund the committed amounts and GGP will have the option to
repurchase or replace up to 50% of the committed amounts pursuant
to a clawback mechanism, Bridge Note and put arrangement pursuant
to the stock purchase agreement with Fairholme, Pershing Square
and Texas Teachers.
The First Amended Plan further relates that the current executive
management of GGP will continue to serve in their positions at New
GGP:
* Chief Executive Officer: Adam Metz
* President and Chief Operating Officer: Thomas Nolan, Jr.
* Executive Vice President and Chief Financial Officer: Steven
Douglas
* Senior Vice President and Chief Investment Officer: Joel Bayer
* Senior Vice President, General Counsel and Secretary: Ronald
Gern
* Senior Vice President, Human Resources: Catherine Hollowell
* Interim Chief Financial Officer, Senior Vice President and
Chief Accounting Officer: Edmund Hoyt
The Plan Debtors also prepared financial projections for New GGP
within a five-year period:
New GGP's Statement of Income
(in millions)
2010 2011 2012 2013 2014 2015
---- ---- ---- ---- ---- ----
Net Income(Loss) ($257) ($9) $288 $503 $708 $943
==== ==== ==== ==== ==== ====
New GGP's Cash Flow
(in millions)
2010 2011 2012 2013 2014 2015
---- ---- ---- ---- ---- ----
Net Cash Flow After Dividend ($168) $40 $395($139)$348 $501
==== ==== ==== ==== ==== ====
A full-text copy of New GGP's Financial Projections is available
for free at http://bankrupt.com/misc/ggp_NewGGPProjectns.pdf
As to Spinco, the First Amended Plan says about 32,500,000 shares
of Spinco Common Stock will be issued to GGP Limited Partnership
to effect a Spinco Share Distribution. After that transaction,
Spinco will sell to the Investors an aggregate of 5,250,000 shares
of Spinco Common Stock at a purchase price of $47.619048 per share
pursuant to a Spinco Share Purchaser. In addition, the number of
shares of Spinco common stock that the Investors will purchase
under the Warrants is modified from 80 million to 8 million shares
of Spinco common stock at $50.00 exercise price per share instead
of $5.00 per share.
In addition, the composition of the Spinco Board is modified to
comprise of nine members, one of whom will be designated by REP
Investments and three of whom will be designated by Pershing
Square.
The Plan Debtors also made modifications to a list of assets REP
Investments will contribute to Spinco, available for free at:
http://bankrupt.com/misc/ggp_ModSpincoAssets.pdf
The First Amended Plan also clarifies that the Official Committee
of Unsecured Creditors, the Official Committee of Equity Security
Holders and the Fee Committee will continue in existence after the
effective date of the First Amended Plan for the sole purpose of
addressing matters concerning fees incurred in connection with
these Chapter 11 cases.
The Plan Debtors also prepared a feasibility analysis of Spinco
within a five-year period:
Spinco's Income Statement
(in millions)
Q4
2010 2011 2012 2013 2014 2015
---- ---- ---- ---- ---- ----
Net Income(Loss) ($14) ($13) $33 $30 $57 $82
==== ==== ==== ==== ==== ====
Spinco's Cash Flow
(in millions)
Q4
2010 2011 2012 2013 2014 2015
---- ---- ---- ---- ---- ----
Net Cash Flow After Dividend $235 $28 $50 $81 $129 $190
==== ==== ==== ==== ==== ====
A full-text copy of the Spinco Feasibility Analysis is available
for free at:
http://bankrupt.com/misc/ggp_SpincoFeasibilityAnalysis.pdf
In other modifications, Class 4.23 is entitled to vote and holders
of that Class will be solicited to vote under the First Amended
Plan. If the Class is determined to be unimpaired, votes will not
be considered.
The First Amended Plan also contains updated information relating
to the Debtors' Chapter 11 cases, including employee compensation
and the retention of Steven Douglas, as GGP's chief financial
officer.
Organization charts, corporate reorganization and spin-off process
will be filed with Plan Supplement.
Full-text copies of the First Amended Plan and Disclosure
Statement dated August 2, 2010 are available for free at:
http://bankrupt.com/misc/ggp_Aug21stAmPlan.pdf
http://bankrupt.com/misc/ggp_Aug21stAmDS.pdf
Blacklined versions of the First Amended Plan and Disclosure
Statement are available for free at:
http://bankrupt.com/misc/ggp_Aug21stAmPlan_blacklined.pdf
http://bankrupt.com/misc/ggp_Aug2AmDS_blacklined.pdf
Disclosure Statement Hearing on August 19
In light of their filing of the First Amended Joint Plan of
Reorganization, the Plan Debtors ask the Court to approve the
Disclosure Statement explaining the First Amended Plan, as
containing "adequate information" pursuant to Section 1125(a) of
the Bankruptcy Code.
The Plan Debtors will also file a Plan Supplement containing,
among others, projections and schedules of executory contracts and
unexpired leases to be rejected or assumed under the First Amended
Plan, on September 30, 2010.
In a supplemental motion, the Plan Debtors ask the Court to
commence solicitation of the First Amended Joint Plan of
Reorganization in accordance with a modified (i) proposed
solicitation schedule and (ii) protocol.
The Plan Debtors' modified proposed solicitation timetable is:
Event Deadline
----- --------
Disclosure Statement Objection August 11, 2010
Deadline
Disclosure Statement Hearing August 19, 2010
Voting Record Date August 19, 2010
Solicitation Deadline: Five business days after
the date of entry of an
order approving the
Disclosure Statement
Deadline to File Plan Supplement September 30, 2010
Voting and Elections Deadline October 7, 2010
Confirmation Objection Deadline October 7, 2010
Voting Certification Deadline October 14, 2010
Confirmation Hearing: October 21, 2010
In light of the reinstatement of the Rouse Note Claims pursuant to
the First Amended Plan, the Rouse Note Claims Cash-Out Election is
no longer necessary to effectuate the First Amended Plan and have
been eliminated, Stephen A. Youngman, Esq., at Weil, Gotshal &
Manges LLP, in New York, tells the Court.
In addition, the First Amended Plan provides that if a holder of
an allowed Claim that is entitled to postpetition interest did not
set forth the contractual rate of interest or interest under state
law in a timely filed proof of claim, that holder must file a
written notice of an Applicable Rate and serve to the applicable
parties. The Plan Debtors thus ask the Court to fix the
Applicable Rate Notice Deadline to October 7, 2010.
The Plan Debtors also propose to serve a copy of a Confirmation
Hearing Notice to all their creditors as of the Voting Record
Date. The Confirmation Hearing Notice will set forth, among
others:
(a) the date of approval of the Disclosure Statement,
(b) the Voting Record Date,
(c) the Voting and Elections Deadline,
(d) the Applicable Rate Notice Deadline,
(e) the time fixed for filing objections to confirmation of
the First Amended Plan, and
(f) the date, time, and place for the Confirmation Hearing.
Pursuant to Rule 2002(b) and (d) of the Federal Rules of
Bankruptcy Procedure, the Confirmation Hearing Notice will be
sent contemporaneously with the Solicitation Packages on or
before the Solicitation Deadline, Mr. Youngman says. Thus, the
Notice of Confirmation Objection and Voting and Elections
Deadlines cited in the Original Solicitation Motion is no longer
necessary and has been eliminated, he relates.
Under the First Amended Plan, Disclosure Statement and Investment
Agreements, holders of GGPLP LLC Preferred Equity Units in Class
4.19, GGP LP Preferred Equity Units in Class 4.20 and GGP LP
Common Units in Class 4.20 are treated as unimpaired and are not
entitled to vote on the Plan. Should the Court determine that
the interests in Class 4.19, Class 4.20 or Class 4.22 are
impaired, the Plan Debtors ask that the Court deem those classes
to have rejected the Plan and proceed to determine whether
Debtors have proved the elements necessary to satisfy Section
1129(b) of the Bankruptcy Code at the Confirmation Hearing
without need for any further solicitation.
The objections to the confirmation of the Plan must be writing and
served no later than 5:00 p.m. on October 7, 2010.
In that light, the Plan Debtors ask the Court to schedule the
confirmation hearing to the First Amended Plan for October 21,
2010, at 10:00 a.m.
The Plan Debtors further propose that the Court set 12:00 p.m. on
October 18, 2010, the first business day that is at least two
calendar days before the proposed October 21 Confirmation Hearing,
as the deadline for the Plan Debtors to file and serve replies or
an omnibus reply to any Confirmation Objections.
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: Plans of Land Trust, et al., Declared Effective
---------------------------------------------------------------
Debtors Land Trust No. FHB-TRES 200601 and Ward Plaza-Warehouse,
LLC exited bankruptcy on July 23, 2010. In addition, Debtors
10000 West Charleston Boulevard, LLC; 1120/1140 Town Center Drive,
LLC and 9901-9921 Covington Cross, LLC, emerged from Chapter 11 on
July 30, 2010.
The Plan Debtors' Joint Plan of Reorganization is deemed effective
as of July 23, and 30, 2010.
Counsel to GGP, James H.M. Sprayregen, P.C., at Weil, Gotshal &
Manges LLP, in New York, told Judge Gropper that each of the
conditions precedent to consummation of the Plan has been
satisfied or waived in accordance with the Plan.
After the Effective Date, and without the need for further Court
approval, the Plan Debtors may (a) cause any or all of the Plan
Debtors to be merged into or contributed to one or more of the
Plan Debtors or non-Debtor Affiliates, dissolved or otherwise
consolidated or converted, (b) cause the transfer of assets
between or among the Plan Debtors or non-Debtor Affiliates
or (c) engage in any other transaction in furtherance of the Plan.
The Plan provides for 100% recovery to all holders of Claims
against, and Interests in, the Plan Debtors.
The order confirming the Plan on December 15, 2009, the second
order confirming the Plan on December 23, 2009, the third
order confirming the Plan on January 20, 2010, the fourth
order confirming the Plan on February 16, 2010, the fifth order
confirming the Plan on March 3, 2010, the sixth order confirming
the Plan on March 18, 2010, the seventh order confirming the
Plan on March 26, 2010, the eighth order confirming the Plan on
April 29, 2010, the ninth order confirming the Plan on May 20,
2010, and the Plan establish certain deadlines by which holders of
Claims must take certain actions.
Full-text copies of the Confirmation Orders dated December 15, and
23, 2009, January 20, 2010, February 16, 2010, and March 3, 18 and
26, 2010, April 29, 2010 and May 20, 2010 are available for free
at:
http://bankrupt.com/misc/ggp_Dec15ConfirmationOrder.pdf
http://bankrupt.com/misc/ggp_Dec23ConfOrd.pdf
http://bankrupt.com/misc/ggp_Jan20ConfOrder.pdf
http://bankrupt.com/misc/ggp_Feb16ConfOrder.pdf
http://bankrupt.com/misc/ggp_Mar3ConfOrder.pdf
http://bankrupt.com/misc/ggp_Mar18ConfOrder.pdf
http://bankrupt.com/misc/ggp_Mar26ConfOrder.pdf
http://bankrupt.com/misc/ggp_Apr29ConfOrder.pdf
http://bankrupt.com/misc/ggp_May20ConfOrder.pdf
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: Chevrolet-Buick-GMC-Cadillac Sales Up 25% in July
-----------------------------------------------------------------
General Motors Company reported that July sales for Chevrolet,
Buick, GMC and Cadillac increased by a combined 25% to 199,432
units. Buick and Cadillac brands each sold more than twice as
many vehicles in July, compared with a year ago.
July marks the tenth straight month in which total and retail
sales for GM's brands increased year-over-year, demonstrating the
continued strengthening of each brand in the marketplace as GM
continues to rebuild momentum a year after its launch as a new
company.
"When we say we want to design, build and sell the world's best
vehicles, we're not talking about just one vehicle, one brand, or
one month," said Don Johnson, vice president, U.S. Sales
Operations. "Our July results again reflect that each of our
brands has contributed significantly to our gains."
"The size and scope of the U.S. market demands a strong portfolio
of well-targeted brands," Johnson said. "The success of
Chevrolet, Buick, GMC, and Cadillac month in and month out,
indicates that the new GM's brand strategy is sound."
Buick sold 16,799 vehicles in July, a 137% increase over last
year. Cadillac sales were 142% higher than last year as dealers
reported 14,919 deliveries. These are the highest sales totals
for the two brands since August 2008. Chevrolet July total sales
increased 12% compared to last year, and GMC total sales were up
27% during the month.
GM's newest vehicles including Chevrolet Camaro and Equinox, Buick
LaCrosse and Regal, GMC Terrain, and Cadillac SRX, CTS Coupe and
CTS Wagon continue to contribute significant sales gains. Total
combined sales for these vehicles were up 77% in July and are up
211% year-to-date.
GM further strengthened its position as the industry leader in
crossover sales. Total combined sales in July for the Chevrolet
Equinox, HHR and Traverse, Buick Enclave, GMC Terrain and Acadia,
and Cadillac SRX increased 41% in July and have risen 73% so far
this year.
Combined total sales for GM's full-size pickups, the Chevrolet
Silverado and Avalanche, and the GMC Sierra were up 22% during the
month, with year-to-date sales 14% higher than a year ago.
Year-To-Date Gains Reflect Balanced Contribution of Brands
Year-to-date total sales for GM's four brands have risen 31% to
1,269,009 units, while retail sales for GM's brands have risen 18%
- outpacing the industry.
"Our four brands have sold 125,210 more vehicles this year than
our former company sold with eight brands during the same period
last year," Johnson said. "This gain has been a result of solid
consumer demand across our lineup of cars, trucks, and
crossovers."
Chevrolet has led the increase with total sales 28% higher through
July, compared to 2009. Retail sales for Chevrolet have increased
12% for the year, propelled by the strong retail sales of the
Chevrolet Malibu, Camaro, Silverado, Equinox, and Traverse, which
are up a combined 33% for the year.
Buick remains one of the industry's fastest growing brands, with
total sales 60% higher than 2009 through July. In the first seven
months of the year, retail sales of Buicks have increased 41% on
the strength of LaCrosse and Enclave which are up 175 and 14%,
respectively.
GMC total sales through July are 28% higher than 2009. The
brand's retail sales have increased 30% year-to-date on the
strength of the GMC Terrain, Sierra and Acadia - up 326%, 13% and
21% respectively.
Total sales for Cadillac are up 46% for the year through July.
Retail sales for the brand are 32% higher this year, with the all-
new Cadillac SRX surging 487% - leading it to gain the most market
share in the luxury crossover segment so far this year.
Month-end dealer inventory in the U.S. stood at about 424,000
units, which is about 15,000 lower compared to June 2010, and
about 43,000 lower than July 2009.
A full-text copy of the Company's sales report is available for
free at http://ResearchArchives.com/t/s?67c4
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 207,000 people in every major region of
the world and does business in some 140 countries. GM and its
strategic partners produce cars and trucks in 34 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, Germany, the United Kingdom,
Canada, and Italy. GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.
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: Wants Treasury to Sell Entire Stake at IPO
----------------------------------------------------------
Nick Bunkley at The New York Times reports that General Motors CEO
Edward E. Whitacre Jr., said Thursday the automaker wants the U.S.
government to sell its entire stake during an initial public
offering.
"We want the government out, period," Mr. Whitacre said in
comments after speaking at an automotive conference in northern
Michigan, according to NY Times. "We don't want to be known as
Government Motors."
According to NY Times, Mr. Whitacre said GM is drafting the
registration and plans to file it with the Securities and Exchange
Commission "in the near future." NY Times notes that analysts
have been expecting GM to file regulatory documents by mid-August,
which would put it on track to go public by the end of the year.
The U.S. Department of the Treasury holds about 61% of GM after
its more than $50 billion in bailout loans to the automaker last
year.
NY Times notes that analysts have been expecting GM to sell part
of its shares during the initial offering, but Mr. Whitacre said
that the company anticipated selling them all at once. According
to NY Times, Mr. Whitacre said eliminating government ownership
would be good for employee morale and would improve GM's image.
The NY Times also relates that GM executives say that underwriters
and banks are reporting a great deal of interest from hedge funds
and big money managers. According to the report, Mr. Whitacre
said Thursday that he thought "the appetite is going to be big"
for GM stock and that the IPO could be the largest in United
States history, topping Visa's. Visa raised about $19 billion
during an offering in March 2008.
NY Times relates that a Treasury spokesman, Mark Paustenbach,
declined to comment on Thursday. NY Times recalls that the
Treasury issued a statement in June saying that GM would control
the timing of the offering but that the Treasury would "retain the
right, at all times, to decide whether and at what level to
participate in the offering, should it occur."
NY Times also relates Mr. Whitacre dismissed concerns by some
analysts that GM was moving too fast. Many have speculated that
the Obama administration, whose decision to help GM and Chrysler
last year was widely unpopular, wants the offering to occur before
the November elections.
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 Report "Impressive" Q2 Earnings Next Week
------------------------------------------------------------
Nick Bunkley at The New York Times reports that General Motors CEO
Edward E. Whitacre Jr., said after speaking at an automotive
conference in northern Michigan, that the automaker would report
"impressive" second-quarter earnings next week. According to NY
Times, Mr. Whitacre hinted that GM's results would surpass its
first-quarter profit of $865 million. GM's last profitable
quarter before this year was in 2007, the NY Times notes.
NY Times relates Mr. Whitacre said two consecutive quarters of
positive results would be enough to show potential investors that
"our future is pretty bright." NY Times relates Mr. Whitacre
would not say how profitable GM was in the second quarter, but
added that anyone who liked the first-quarter results would be
more pleased with the April-to-June performance.
NY Times also reports that Mr. Whitacre said the automaker is
considering "reactivating" a closed plant to increase its
production capacity. The report notes GM has been scrambling to
keep up with demand, particularly for its newest vehicles like the
Chevrolet Equinox crossover and Buick LaCrosse sedan. The company
has brought back about 7,000 employees since the bankruptcy.
NY Times, however, notes neither Mr. Whitacre nor Stephen J.
Girsky, GM's vice chairman for corporate strategy, would say which
plant could be reopened. GM closed dozens of plants in recent
years, but two plants, in Spring Hill, Tenn., and Janesville,
Wis., were given standby status. At the time, executives said the
plants could be brought online if more production were needed.
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).
GEOFFREY BANGERT: Case Summary & 13 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Geoffrey H. Bangert
aka Geoffrey Hawes Bangert
aka Geoffrey Hanes Bangert
aka Geoffrey Bangert
fdba Buckhead Mortgage, LLC
P.O. Box 5369
Hilton Head Island, SC 29938
Bankruptcy Case No.: 10-05469
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
District of South Carolina (Charleston)
Judge: David R. Duncan
Debtor's Counsel: Michael W. Mogil, Esq.
2 Corpus Christie Place, Suite 303
Hilton Head Island, SC 29928
Tel: (843) 785-8110
Fax: (843) 785-9676
E-mail: mwmogil@aol.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Debtor's 13 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/scb10-05469.pdf
The petition was signed by Mr. Bangert.
GIGOPTIX INC: Posts $1.4 Million Net Loss in Q2 Ended July 4
------------------------------------------------------------
GigOptix, Inc., filed its quarterly report on Form 10-Q, reporting
a net loss of $1.4 million on $6.3 million of revenue for the
three months ended July 4, 2010, compared to a net loss of
$609,000 on $4.5 million of revenue for the three months ended
July 5, 2009.
The Company's balance sheet as of July 4, 2010, showed
$24.2 million in assets, $13.0 million in liabilities, and
$11.2 million in stockholders' equity.
The Company has incurred significant losses since inception,
attributable to its efforts to design and commercialize its
products. For the six months ended July 4, 2010, and the year
ended December 31, 2009, the Company incurred net losses of
$3.6 million and $10.0 million, respectively, and cash outflows
from operations of $4.0 million and $4.1 million, respectively.
As of July 4, 2010, and December 31, 2009, the Company had an
accumulated deficit of $72.6 million and $69.0 million,
respectively.
About GigOptix, Inc.
Palo Alto, Calif.-based GigOptix, Inc. (OTC BB: GGOX)
-- http://www.GigOptix.com/-- is a fabless manufacturer of high
performance electronic and electro-optic semiconductor products
that enable high speed telecommunications and data-communications
networks, and leads the new component generation of 40G and 100G
optical communication networks. The Company offers a broad
portfolio of high speed electronic devices including polymer
electro-optic modulators, modulator drivers, laser drivers and
TIAs for telecom, datacom, Infiniband and consumer optical
systems, covering serial and parallel communication technologies
from 1G to 100G.
PricewaterhouseCoopers LLP, in San Jose, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statements
for the year ended December 31, 2009. The independent auditors
noted that the Company has suffered recurring losses and negative
cash flows from operations.
GLOBAL CROSSING: June 30 Balance Sheet Upside Down by $487MM
------------------------------------------------------------
Global Crossing filed its quarterly report on Form 10-Q with the
Securities and Exchange Commission. A full-text copy of the
Company's Form 10-Q is available for free at
http://ResearchArchives.com/t/s?67e5
The Company's balance sheet at June 30, 2010, showed $2.249
billion in total assets and $2.736 billion in total liabilities,
for $487.0 million in total stockholders' deficit.
As reported by the Troubled Company Reporter on July 29, 2010,
Global Crossing said in a press release that it incurred a net
loss of $47 million on $630 million of revenue during the three
months ended June 30, 2010, compared with a net income of $27
million on $633 million of revenue during the same period in 2009.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6731
About Global Crossing
Based in Hamilton, Bermuda, Global Crossing Limited (NASDAQ: GLBC)
is a global IP and Ethernet solutions provider with the world's
first integrated global IP-based network. The company offers a
full range of data, voice and collaboration services with an
industry leading customer experience and delivers service to
approximately 40% of the Fortune 500, as well as to 700 carriers,
mobile operators and ISPs. It delivers converged IP services to
more than 700 cities in more than 70 countries around the world.
* * *
As reported by the Troubled Company Reporter on March 31, 2010,
Standard & Poor's Ratings Services raised all its ratings on
Global Crossing, including the corporate credit rating to 'B' from
'B-'. The outlook is stable.
GLOBAL CROSSING: 100% of Senior Notes Tendered in Exchange Offer
----------------------------------------------------------------
Global Crossing Limited reported the expiration of its exchange
offer for any and all of its outstanding $750,000,000 in aggregate
principal amount of 12% Senior Secured Notes due 2015 for an equal
principal amount of a new issue of 12% Senior Secured Notes due
2015 which have been registered under the Securities Act of 1933.
Wilmington Trust FSB, the exchange agent for the exchange offer,
has advised that $750,000,000 aggregate principal amount of the
Original Notes were validly tendered and not validly withdrawn
prior to the expiration of the exchange offer, which represents
100% of the aggregate principal amount of Original Notes
outstanding upon commencement of the exchange offer.
The Company has accepted for exchange all of the Original Notes
validly tendered and not validly withdrawn and settlement will
occur promptly.
The Company previously said the exchange offer is being conducted
to satisfy Global Crossing's obligations under the terms of a
registration rights agreement entered into in connection with the
initial issuance of the Original Notes, and does not represent a
new financing transaction. Global Crossing will not receive any
proceeds from the exchange offer.
About Global Crossing
Based in Hamilton, Bermuda, Global Crossing Limited (NASDAQ: GLBC)
is a global IP and Ethernet solutions provider with the world's
first integrated global IP-based network. The company offers a
full range of data, voice and collaboration services with an
industry leading customer experience and delivers service to
approximately 40% of the Fortune 500, as well as to 700 carriers,
mobile operators and ISPs. It delivers converged IP services to
more than 700 cities in more than 70 countries around the world.
As reported by the Troubled Company Reporter on March 31, 2010,
Standard & Poor's Ratings Services raised all its ratings on
Global Crossing, including the corporate credit rating to 'B' from
'B-'. The outlook is stable.
The Company's balance sheet at June 30, 2010, showed $2.249
billion in total assets and $2.736 billion in total liabilities,
for $487.0 million in total stockholders' deficit.
GRAHAM PACKAGING: Posts $37.8-Mil. Net Income for June 30 Quarter
-----------------------------------------------------------------
Graham Packaging Company Inc. reported results for the quarter
ended June 30, 2010. Highlights include:
* Net sales increased 11.5% to $652.8 million, compared with
$585.7 million in the second quarter of 2009.
* Adjusted EBITDA increased to $133.7 million, a $3.5 million
increase over the second quarter of 2009. Last twelve months
adjusted EBITDA was $473.9 million.
* Free cash flow for the first half of 2010 was $62.0 million
due to strong second quarter performance.
* Total debt, net of cash decreased to $2,104.7 million from
$2,289.1 million at the beginning of 2010, a decrease of
$184.4 million.
* On July 1, 2010, the Company completed its acquisition of
China Roots Packaging PTE Ltd., a plastic container
manufacturing company located in Guangzhou, China.
* The Company currently expects adjusted EBITDA for 2010 to be
$478.0 million.
The Company's balance sheet at June 30, 2010, showed $2.0 billion
in total assets, $368.1 million in total current liabilities, $2.2
billion in long-term debt, $31.7 million deferred income taxes,
and $103.1 million in commitments and contingent liabilities,
resulting to $612.2 million in partners' deficit.
Second Quarter 2010
Net sales for the second quarter of 2010 increased by 11.5% to
$652.8 million due to higher volumes along with higher resin
costs, which are passed on to customers. Adjusted EBITDA for the
quarter increased to $133.7 million, compared with $130.2 million
in the second quarter of 2009. Operating income increased to
$90.8 million from $76.5 million in the second quarter of 2009.
"We are extremely pleased with our second quarter performance,"
said CEO Mark Burgess. "Unit volumes improved as a result of
stronger end markets, and we continued to have success on
international fronts with new sales wins. Our adjusted EBITDA
showed a $3.5 million improvement over last year as a result of
the volume improvements and our intense focus on productivity.
LTM adjusted EBITDA is now $473.9 million. We generated strong
free cash flow during the quarter, and have retired a significant
amount of debt so far this year. Best of all, we successfully
closed our acquisition of China Roots on July 1, 2010. This
represents Graham's first foray into the vast Chinese market, and
a terrific opportunity to serve our multinational customers."
By segment, sales in North America increased $64.7 million, or
12.7%, due to higher volumes and the increase in resin costs.
Sales in Europe were up $0.5 million, or 0.9%, as higher resin
costs helped offset unfavorable exchange rates and slightly lower
volumes. Sales in South America were up $1.9 million, or 8.4%,
due to increased volume and price increases. During the second
quarter of 2010, the Company continued to experience positive
momentum in its drive to convert legacy packaging into Graham's
technology-oriented performance packaging solutions. This area
remains a driver of future growth for the Company.
Interest expense, net for the quarter was $41.7 million, an
increase of $4.7 million from the second quarter of last year, due
to the increased interest rate on the term loans which were
extended in May 2009.
2010 Year to Date
Net sales for the first half of 2010, increased by 7.9% to
$1,238.4 million due to higher volumes along with higher resin
costs, which are passed on to customers. Adjusted EBITDA for the
first half of 2010 increased to $249.2 million, compared with
$237.7 million in the first half of 2009. Operating income
decreased to $123.1 million from $138.5 million in the first half
of 2009 primarily due to a one-time fee of $35.0 million to
terminate a monitoring agreement, and $4.4 million in IPO bonuses
and other IPO-related expenses. Excluding these items, operating
income increased by $24.1 million over the first half of 2009.
Free cash flow for the first half of 2010 was $62.0 million.
The Company retired $200 million of term loan debt during the
first half of 2010. Approximately $129 million of the retirement
was funded by the IPO and the remaining $71 million was funded by
cash on hand.
2010 Outlook
For fiscal year 2010, the Company currently expects adjusted
EBITDA to be $478.0 million.
A full-text copy of the company's earnings release is available
for free at http://ResearchArchives.com/t/s?67d8
About Graham Packaging
Headquartered in York, Pennsylvania, Graham Packaging Holdings
Company -- http://www.grahampackaging.com/-- the parent company
of Graham Packaging Company, L.P., is engaged in the design,
manufacture and sale of customized blow molded plastic containers
for the branded food and beverage, household, automotive
lubricants and personal care/specialty product categories. As of
the end of June 2008, the company operated 83 manufacturing
facilities throughout North America, Europe and South America.
The Company's balance sheet at March 31, 2010, showed $2.1 billion
in total assets, $415.4 million in total current liabilities, $2.2
billion in long-term debt, $17.7 million in deferred income taxes,
$17.7 million other non-current liabilities, and $96.2 in million
commitments and contingent liabilities, for a total partners'
deficit of $611.8 million.
Graham reported consecutive net losses for years 2007 and 2008,
but rebounded with a profit in 2009. It reported a net loss of
$195 million in 2007, another loss of $54.4 million in 2008, and a
net income of $21 million in 2009.
Graham continues to carry "B" issuer credit ratings, with a
"positive" outlook, from Standard & Poor's.
GREENWOOD ESTATES: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Greenwood Estates MHC, LLC
875 N. Michigan Ave., Suite 3800
Chicago, IL 60611
Bankruptcy Case No.: 10-33988
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Susan Pierson Sonderby
Debtor's Counsel: Eugene Crane, Esq.
Crane Heyman Simon Welch & Clar
135 S Lasalle, Suite 3705
Chicago, IL 60603
Tel: (312) 641-6777
Fax: (312) 641-7114
E-mail: ecrane@craneheyman.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Richard J. Klarchek, designated
representative.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Greenwood Sanitation $43,681
2 N. Madison Ave.
Greenwood, IN 46142
Duke Energy $29,532
PO Box 9001076
Louisville, KY 40290
MB Financial Bank $22,956
PO Box 790408
Saint Louis, MO 63179
Kent Kelly $19,648
Prairie Material Sales $18,472
Republic Waste Services $16,466
Heartland Ready Mix $13,471
Indiana American Water $13,072
Spurlino Materials of $12,650
Indianapolis LLC
Tim Sandlin $9,810
B. Jones $9,500
Daniel Sheffield $9,000
RBL Set-Up $6,200
Artesian Water Lab $5,226
Gilbert Staten $4,343
Tammy Evans $4,174
Frye Electric $3,707
William Bowling $3,095
Eagle Materials $2,901
Barger Contracting $2,850
GSI GROUP: Names Stephen W. Bershad as Board Chairman
-----------------------------------------------------
GSI Group Inc. disclosed that at the initial meeting of its newly
reconstituted Board of Directors, the Board has elected Stephen W.
Bershad as Chairman. Mr. Bershad brings a wealth of industry
experience and years of corporate governance expertise to his GSI
role.
Also at the July 30, 2010 Board meeting, the Board designated the
Audit Committee, Compensation Committee, and Nominating and
Governance Committee as the Board's standing committees.
The Audit Committee, chaired by Ira Lamel, will also include Byron
Pond and Eugene Davis. The Compensation Committee, chaired by
Stephen Bershad, will also include Peter Heiland and Dennis
Fortino. The Nominating and Governance Committee, chaired by
Eugene Davis, will also include Byron Pond, Ira Lamel and Dennis
Fortino.
"I am delighted and honored to serve as GSI Group's Chairman, and
I look forward to working with this esteemed group to develop and
enhance GSI's opportunities in each of its principal markets and
improve the GSI companies' market position. On behalf of the
Board of Directors, we are anxious to further the Company's
exciting growth prospects for the benefit of our customers,
suppliers, employees and shareholders," said Stephen W. Bershad,
GSI's Chairman of the Board.
"Our outstanding operating management team has been able to manage
and grow the business through a challenging period. Now we intend
to supplement that team with permanent senior management to
provide the leadership and strategic vision to take us to the next
level," added Bershad.
Toward that goal, on July 30, 2010, the Board formed an ad hoc
Search Committee to plan and oversee a smooth transition to
permanent senior leadership. This committee, chaired by Stephen
Bershad, will also include Dennis Fortino and Michael Katzenstein,
who currently serves as Principal Executive Officer of the Company
following his work as Chief Restructuring Officer.
About GSI Group
GSI Group Inc. supplies precision technology to the global
medical, electronics, and industrial markets and semiconductor
systems. GSI Group Inc.'s common shares are quoted on Pink Sheets
OTC Markets Inc. (GSIGQ).
The Company and two of its affiliates filed for Chapter 11
protection on Nov. 20, 2009 (Bankr. D. Del. Lead Case No. 09-
14110). William R. Baldiga, Esq., at Brown Rudnick LLP,
represents the Debtors as lead counsel. Mark Minuti, Esq., at
Saul Ewing LLP, as its local counsel. The Debtors selected Garden
City Group Inc. as their claims and notice agent. The Debtors
disclosed $555,000,000 in total assets and $370,000,000 in total
liabilities as of Nov. 6, 2009.
GSI Group successfully emerged from Chapter 11 restructuring in
July 2010. Under the plan that was confirmed in May, noteholders
are to receive 86.1% of the stock of the reorganized company's.
HAWKER BEECHCRAFT: Swings to $56.8-Mil. Net Loss for Q2 2010
------------------------------------------------------------
Wichita, Kansas-based Hawker Beechcraft Acquisition Company, LLC,
reported net sales for the three months ended June 27, 2010, of
$639.3 million, a decrease of $177.0 million compared to the
second quarter of 2009. The decrease was largely attributable to
lower aircraft deliveries in the Company's Business and General
Aviation segment as a result of depressed demand across the
general aviation market. During the second quarter of 2010, the
Company delivered 54 business and general aviation aircraft
compared to 78 during the same period in 2009.
Included in the second quarter 2009 results was a significant
number of King Air aircraft delivered under the U.S. Government's
Project Liberty program. Project Liberty deliveries, which are
reported as part of the B&GA segment, concluded in late 2009.
Partially offsetting the decline in B&GA segment was continued
higher volume in the Trainer Aircraft segment.
The Company reported a net loss attributable to the parent company
of $56.8 million for the second quarter 2010 from net income of
$172.2 million for the same period a year ago. The Company
reported a net loss attributable to the parent company of $120.3
million for the first half of 2010 from net income of $225.3
million for the same period a year ago.
At June 27, 2010, the Company had $3.420 billion in total assets
against $3.408 billion in total liabilities and $3.2 million in
non-controlling interest, resulting in total equity of $11.6
million. At December 31, 2009, total equity was $122.2 million.
As of June 27, 2010, the Company had total indebtedness of $2.135
billion, including $55.3 million of short-term obligations payable
to a third party under a financing arrangement. The Company also
had up to $75.0 million available for letter of credit issuances
under a synthetic letter of credit facility as of June 27, 2010.
The Company's Senior PIK-Election Notes permit the Company to pay
interest by increasing the principal amount thereunder rather than
paying cash interest through April 1, 2011. The Company elected
to pay the April 2010 semi-annual interest payment on its Senior
PIK-Election Notes by issuing additional PIK-election notes rather
than by paying in cash. On April 1, 2010, the Company notified
its noteholders it has elected to pay the September 2010 semi-
annual interest payment on its Senior PIK-Election Notes in cash.
On November 6, 2009, the Company entered into a second amendment
to its credit agreement. The Second Amendment provides that
compliance with the maximum consolidated secured debt ratio test
under the Credit Agreement is waived. The continuing
effectiveness of this waiver is subject to the condition that the
Company will not have made a restricted payment pursuant to
certain available restricted payment baskets under its Credit
Agreement. If this condition fails to be satisfied, then the
waiver of the consolidated secured debt ratio covenant will be
revoked and the Company will be required to comply (and, with
respect to the two most recently completed fiscal quarters as of
the earliest date that such condition shall fail be satisfied, to
have complied) with the maximum consolidated secured debt ratio
test in the Credit Agreement.
The Second Amendment added a new minimum liquidity covenant which
requires the Company's unrestricted cash plus available
commitments under its revolving credit facility, determined in
each case as of the last day of such fiscal quarter, must be not
less than $162.5 million.
In addition, the Second Amendment added a new Adjusted EBITDA
covenant requiring that, to the extent the consolidated secured
debt ratio covenant is waived, for any fiscal quarter beginning
with the second quarter of 2011 for which any revolving facility
commitment is outstanding on the last day of such fiscal quarter,
the Company maintains a minimum Adjusted EBITDA as specified in
the Second Amendment.
The initial effectiveness of the Second Amendment was conditioned
upon, among other items, the permanent reduction of commitments
under the revolving credit facility by $137.0 million. Following
the reduction in commitments, the total availability under the
revolving credit facility is $240.0 million after considering the
expected reduction due to the Lehman Brothers bankruptcy.
A full-text copy of the Company's Form 10-Q report is available at
no charge at http://ResearchArchives.com/t/s?67db
A full-text copy of the Company's earnings release is available at
no charge at http://ResearchArchives.com/t/s?67dd
About Hawker Beechcraft
Hawker Beechcraft Acquisition Company, LLC --
http://www.hawkerbeechcraft.com/-- manufactures business,
special-mission and trainer aircraft -- designing, marketing and
supporting aviation products and services for businesses,
governments and individuals worldwide. The company's headquarters
and major facilities are located in Wichita, Kan., with operations
in Salina, Kan.; Little Rock, Ark.; Chester, England, U.K.; and
Chihuahua, Mexico. The company said it leads the industry with
the largest number of factory-owned service centers and a global
network of more than 100 factory-owned and authorized service
centers.
* * *
As reported by the Troubled Company Reporter on December 20, 2009,
Moody's Investors Service affirmed Hawker Beechcraft Acquisition
Company's Caa2 Corporate Family and Probability of Default ratings
but lowered the rating on the company's senior secured bank
obligations to Caa1 from B3 following announcement of plans to
expand the size of its secured term loan.
The TCR on November 19, 2009, reported that Standard & Poor's
Ratings Services assigned its 'CCC+' issue-level rating to Hawker
Beechcraft's proposed $200 million incremental term loan, and
affirmed its 'CCC+' corporate credit rating on the Company.
Moody's actions followed several developments: an amendment to the
company's revolving credit facility reducing the size of the
commitment and revising financial covenants, a proposed increase
of $200 million to an existing $1.271 billion term loan,
disclosure of some $700 million of non-cash impairment and other
charges during the company's third quarter 2009.
Hawker Beechcraft amended its $400 million revolving credit
facility ($365 million net of Lehman's commitment of $35 million).
Moody's said this involved addressing the effective financial
covenant (waiving future compliance with a maximum net secured
debt/EBITDA test which was scheduled to tighten over the next
year) and decreasing the size of the facility to $240 million. The
latter also required a repayment of $125 million of previous
borrowings to keep outstanding amounts within the lower aggregate
commitment. New financial covenants include a minimum defined
liquidity applicable while there is any utilization of the
facility, and a minimum EBITDA level which will be first measured
at the end of June 2011 and escalates thereafter.
Standard & Poor's credit analyst Roman Szuper said at that time,
"Because the revolving credit facility is fully drawn, a further
decline in demand for Hawker Beechcraft aircraft, lower customer
advances from fewer orders, and an inability to fully adjust
production rates and other costs could reduce the liquidity
cushion from cash balances and proceeds from the incremental term
loan." He added, "We are unlikely to revise the outlook to stable
in the near term, considering the difficult industry conditions
and pressures on the company's very weak credit protection
measures."
HAWKER BEECHCRAFT: Vascsinec Replaces Knight as Controller
----------------------------------------------------------
The sole member of Hawker Beechcraft Acquisition Company, LLC,
accepted the resignation of James D. Knight as Vice President and
Controller on August 3, 2010. Mr. Knight continues with the
Company in a different role.
On August 4, 2010, the sole member of the Company appointed Gina
E. Vascsinec, 43, as Vice President and Controller. She will be
responsible for the company's accounting, tax, internal control
and external reporting functions. She joined the Company in July
2010 as a Vice President after serving from 1997 to July 2010 at
Illinois Tool Works, where she most recently served as Vice
President and Corporate Controller. Ms. Vascsinec's background is
in accounting, M&A and audit, and she began her career with Arthur
Andersen in 1989. She holds an MBA from the University of Chicago,
an accounting degree from Duquesne University, and is a Certified
Public Accountant.
About Hawker Beechcraft
Hawker Beechcraft Corporation -- http://www.hawkerbeechcraft.com/
-- manufactures business, special-mission and trainer aircraft --
designing, marketing and supporting aviation products and services
for businesses, governments and individuals worldwide. The
company's headquarters and major facilities are located in
Wichita, Kan., with operations in Salina, Kan.; Little Rock, Ark.;
Chester, England, U.K.; and Chihuahua, Mexico. The company said
it leads the industry with the largest number of factory-owned
service centers and a global network of more than 100 factory-
owned and authorized service centers.
* * *
As reported by the Troubled Company Reporter on December 20, 2009,
Moody's Investors Service affirmed Hawker Beechcraft Acquisition
Company's Caa2 Corporate Family and Probability of Default ratings
but lowered the rating on the company's senior secured bank
obligations to Caa1 from B3 following announcement of plans to
expand the size of its secured term loan.
The TCR on November 19, 2009, reported that Standard & Poor's
Ratings Services assigned its 'CCC+' issue-level rating to Hawker
Beechcraft's proposed $200 million incremental term loan, and
affirmed its 'CCC+' corporate credit rating on the Company.
Moody's actions followed several developments: an amendment to the
company's revolving credit facility reducing the size of the
commitment and revising financial covenants, a proposed increase
of $200 million to an existing $1.271 billion term loan,
disclosure of some $700 million of non-cash impairment and other
charges during the company's third quarter 2009.
Hawker Beechcraft amended its $400 million revolving credit
facility ($365 million net of Lehman's commitment of $35 million).
Moody's said this involved addressing the effective financial
covenant (waiving future compliance with a maximum net secured
debt/EBITDA test which was scheduled to tighten over the next
year) and decreasing the size of the facility to $240 million. The
latter also required a repayment of $125 million of previous
borrowings to keep outstanding amounts within the lower aggregate
commitment. New financial covenants include a minimum defined
liquidity applicable while there is any utilization of the
facility, and a minimum EBITDA level which will be first measured
at the end of June 2011 and escalates thereafter.
Standard & Poor's credit analyst Roman Szuper said at that time,
"Because the revolving credit facility is fully drawn, a further
decline in demand for Hawker Beechcraft aircraft, lower customer
advances from fewer orders, and an inability to fully adjust
production rates and other costs could reduce the liquidity
cushion from cash balances and proceeds from the incremental term
loan." He added, "We are unlikely to revise the outlook to stable
in the near term, considering the difficult industry conditions
and pressures on the company's very weak credit protection
measures."
HEALTHSOUTH CORP: June 30 Balance Sheet Upside Down by $817MM
-------------------------------------------------------------
HealthSouth Corporation's balance sheet at June 30, 2010, showed
$1.7 billion in total assets and $2.1 billion in total
liabilities, resulting to $817.3 million in shareholders' deficit.
The Company though reported a net income of $57.5 million on
$496.9 of net revenues during the three months ended June 30,
2010, compared with a net income of $3.6 million on $481.6 million
of net revenue during the same period in 2009.
"The positive trends we experienced in the first quarter of 2010
continued into the second quarter as good volume growth, solid
pricing, and disciplined expense management resulted in growth in
all key, financial metrics," said Jay Grinney, President and Chief
Executive Officer of HealthSouth, in an earnings release. "In
addition to strong performance across our existing portfolio, we
purchased a new hospital in Las Vegas, Nevada in the quarter and
recently announced the signing of a definitive agreement to
purchase another hospital in Sugar Land, Texas, as well as our
plans to begin construction of a new 40-bed hospital in the
Cypress area of northwest Houston during the fourth quarter of
2010. Our growth pipeline remains strong, and we will continue to
pursue disciplined acquisitions that will bring high-quality
rehabilitative services to new markets and value to our
shareholders."
Adjusted Consolidated EBITDA for the second quarter of 2010 was
$103.7 million compared to $94.0 million in the second quarter of
2009, or an increase of 10.3%.
In February, the Company provided 2010 guidance which consisted of
adjusted income from continuing operations in the range of $1.60
to $1.70 per diluted share and Adjusted Consolidated EBITDA in the
range of $397 million to $407 million. As a result of its strong
operating results for the first six months of 2010, the Company is
increasing its previously provided guidance for 2010. Guidance
for adjusted income from continuing operations has been increased
to a range of $1.66 to $1.74 per diluted share, while guidance for
Adjusted Consolidated EBITDA has been increased to a range of $402
million to $410 million.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?67b3
About HealthSouth Corp.
Birmingham, Alabama-based HealthSouth Corporation (NYSE: HLS) --
http://www.healthsouth.com/-- is the nation's largest provider of
inpatient rehabilitative healthcare services. Operating in 26
states across the country and in Puerto Rico, HealthSouth serves
patients through its network of inpatient rehabilitation
hospitals, long-term acute care hospitals, outpatient
rehabilitation satellites, and home health agencies.
HealthSouth continues to carry a "B2" corporate family rating,
with "stable" outlook, from Moody's. It has "B" foreign and local
issuer credit ratings, with "positive" outlook, from Standard &
Poor's.
HELIX ENERGY: S&P Gives Stable Outlook, Affirms 'B' Rating
----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
international offshore company Helix Energy Solutions Group Inc.
to stable from negative. S&P affirmed its ratings, including the
'B' corporate credit rating.
At the same time, S&P lowered the issue-level rating on Helix's
senior unsecured debt to 'B-' (one notch below the corporate
credit rating) from 'B' and revised the recovery rating to '5'
from '3', indicating expectations for modest (10% to 30%) recovery
in the event of a payment default. These changes follow Helix's
$160 million impairment of exploration and production (E&P)
assets, which lowers S&P's assessment of the recovery value to
unsecured creditors.
The issue-level rating on the secured debt remains unchanged at
'BB-' (two notches above the corporate credit rating), with a
recovery rating of '1', indicating S&P's expectation of very high
(90% to 100%) recovery in the event of payment default.
"The outlook revision reflects Standard & Poor's Ratings Services'
view that the company's good liquidity, potential asset sale, and
international exposure should provide adequate protection at the
current rating category," said Standard & Poor's credit analyst
Marc Bromberg. The Gulf of Mexico deepwater drilling moratorium
has affected the company's contracting business, particularly its
subsea construction and ROV and trencher operations. Despite
this, the company's second-quarter results were better than the
first quarter. However, much of this improvement came from the
company's international business largely as a result of seasonal
North Sea drilling, which S&P believes will decline in the latter
half of 2010. S&P continues to be cautious about long-term
implications from the Gulf moratorium, particularly since the Gulf
represents nearly half of contracting services revenues.
The outlook revision also incorporates an improvement in Helix's
contracting services backlog, which stood at $413 million at
June 30, 2010 ($328 million in 2010), up from $314 million at
March 31, 2010 ($268 million in 2010). Although the contracts can
typically be cancelled with little penalty, S&P views the backlog
positively, particularly given S&P's initial concern about the
impact of the drilling moratorium.
The stable outlook reflects S&P's view that Helix will maintain
acceptable credit metrics, despite a potential adverse impact from
the drilling moratorium on the contracting services business or a
possible longer-term shift from the Gulf.
S&P would consider a ratings downgrade if credit measures, such as
adjusted debt to EBITDA, were to trend materially above 6.0x, or
if liquidity were to decline materially from current levels. For
this to happen, EBITDA, based on last-12 months EBITDA and total
debt remaining flat, would have to decline more than 37% to
$272 million.
S&P views the potential for positive ratings actions as limited in
the near term because S&P expects industry conditions to remain
challenging at least through 2010.
HOLIDAY ISLE: Asks for OK to Sell Condo Unit 407 for $329,000
-------------------------------------------------------------
Holiday Isle, LLC, has asked for authorization from the U.S.
Bankruptcy Court for the Southern District of Alabama to sell Unit
407 of Holiday Isle Condominiums at 1601 Bienville Boulevard,
Holiday Isle Condominium, Dauphin Island, Alabama 36528, to Susan
Veasey, free and clear of liens for $329,000.
The Debtor wants to use the proceeds of the sale to pay its share
of closing costs including the costs and expenses appearing on the
purchase contract, to pay the Revenue Commissioner Debtor's share
of ad valorem taxes on the condominium, to pay 85% of the net cash
proceeds to RBC Real Estate Finance Inc. to be applied to the debt
owed by the Debtor that is secured by all condominium units owned
by the Debtor at Holiday Isle Condominiums, to pay into escrow
from the Debtor's 15%of the net proceeds the Chapter 11 quarterly
fees calculated on the cash portion of the sales proceeds, and to
retain the balance, if any, of the cash proceeds to be used for
operating expenses.
A copy of the purchase agreement is available for free at:
http://bankrupt.com/misc/HOLIDAY_ISLE_407purchasepact.pdf
Marilyn Wood, Mobile County Revenue Commissioner and RBC Real
Estate Finance, Inc., objected to the Debtor's request to sell the
unit.
About Holiday Isle
Mobile, Alabama-based Holiday Isle, LLC, is limited liability
company and its sole member is The Mitchell Company, Inc.
Holiday Isle for Chapter 11 bankruptcy protection on July 23, 2010
(Bankr. S.D. Ala. Case No. 10-03365). Irvin Grodsky, Esq., who
has an office in Mobile, Alabama, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10 million to $50 million as of the Petition Date.
This is the Debtor's second stint in Chapter 11. The Debtor
previously commenced a Chapter 11 proceeding on October 23, 2008
(Bankr. S.D. Ala. Case No. 08-14135).
HOLIDAY ISLE: Wants to Sell Condo Unit 518 for $270,000
-------------------------------------------------------
Holiday Isle, LLC, has sought authorization from the U.S.
Bankruptcy Court for the Southern District of Alabama to sell Unit
518 of Holiday Isle Condominiums at 1601 Bienville Boulevard,
Holiday Isle Condominium, Dauphin Island, Alabama 36528, to Thomas
E. Holmes, free and clear of liens, for $270,000.
The Debtor also seeks the Court's permission to use the proceeds
of the sale to pay the Debtor's share closing costs including
those costs and expenses appearing on the purchase contract, to
pay the Revenue Commissioner Debtor's share of ad valorem taxes on
the condominium, to pay 85% of the net cash proceeds to RBC Real
Estate Finance Inc. to be applied to the debt owed by the Debtor
that is secured by all condominium units owned by the Debtor at
Holiday Isle Condominiums, to pay into escrow from the Debtor's
15% of the net proceeds the Chapter 11 quarterly fees calculated
on the cash portion of the sales proceeds, and to retain the
balance, if any, of the cash proceeds to be used for operating
expenses.
A copy of the purchase agreement is available for free at:
http://bankrupt.com/misc/HOLIDAY_SLE_518purchasepact.pdf
Marilyn Wood, Mobile County Revenue Commissioner and RBC Real
Estate Finance, Inc., have objected to the Debtor's request to
sell the unit.
About Holiday Isle
Mobile, Alabama-based Holiday Isle, LLC, is limited liability
company and its sole member is The Mitchell Company, Inc.
Holiday Isle for Chapter 11 bankruptcy protection on July 23, 2010
(Bankr. S.D. Ala. Case No. 10-03365). Irvin Grodsky, Esq., who
has an office in Mobile, Alabama, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10 million to $50 million as of the Petition Date.
This is the Debtor's second stint in Chapter 11. The Debtor
previously commenced a Chapter 11 proceeding on October 23, 2008
(Bankr. S.D. Ala. Case No. 08-14135).
HOLIDAY ISLE: RBC Real Pushes for Dismissal of Chapter 11 Case
--------------------------------------------------------------
RBC Real Estate Finance Inc., secured creditor of Holiday Isle,
LLC, has asked the U.S. Bankruptcy Court for the Southern District
of Alabama to dismiss the Debtor's Chapter 11 bankruptcy case.
RBC Real Estate says that there is cause for dismissing the case
due to substantial or continuing loss to or diminution of the
estate and the absence of a reasonable likelihood of
rehabilitation, inability to effectuate substantial consummation
of a confirmed plan, material default by the Debtor with respect
to a confirmed plan, and lack of good faith in refiling the
Debtor's Chapter 11 petition.
RBC Real requests that the Court enjoin the Debtor from refiling a
case under Chapter 11 or Chapter 7 for a period of 90 days, and
grant other and further relief as is just.
RBC Real is represented by W. Alexander Gray, Jr. --
lvoit@silvervoit.com -- at Silver, Voit & Thompson, Attorneys at
Law, P.C.
About Holiday Isle
Mobile, Alabama-based Holiday Isle, LLC, is limited liability
company and its sole member is The Mitchell Company, Inc.
Holiday Isle for Chapter 11 bankruptcy protection on July 23, 2010
(Bankr. S.D. Ala. Case No. 10-03365). Irvin Grodsky, Esq., who
has an office in Mobile, Alabama, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10 million to $50 million as of the Petition Date.
This is the Debtor's second stint in Chapter 11. The Debtor
previously commenced a Chapter 11 proceeding on October 23, 2008
(Bankr. S.D. Ala. Case No. 08-14135).
HOLIDAY ISLE: Section 341(a) Meeting Scheduled for August 31
------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Holiday
Isle, LLC's creditors on August 31, 2010, at 2:00 p.m. The
meeting will be held at the Meeting Room, 182 St. Francis Street,
Mobile, AL 36602.
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.
Irvin Grodsky, Esq., at the Firm, assures the Court that the Firm
is "disinterested" as that term is defined in Section 101(14) of
the Bankruptcy Code.
About Holiday Isle
Mobile, Alabama-based Holiday Isle, LLC, is limited liability
company and its sole member is The Mitchell Company, Inc.
Holiday Isle for Chapter 11 bankruptcy protection on July 23, 2010
(Bankr. S.D. Ala. Case No. 10-03365). Irvin Grodsky, Esq., who
has an office in Mobile, Alabama, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10 million to $50 million as of the Petition Date.
This is the Debtor's second stint in Chapter 11. The Debtor
previously commenced a Chapter 11 proceeding on October 23, 2008
(Bankr. S.D. Ala. Case No. 08-14135).
HOLIDAY ISLE: Wants to Hire Irvin Grodsky as Bankruptcy Counsel
---------------------------------------------------------------
Holiday Isle, LLC, has asked for authorization from the U.S.
Bankruptcy Court for the Southern District of Alabama to employ
Irvin Grodsky, P.C., as bankruptcy counsel.
The firm will, among other things:
a. take appropriate action with respect to the secured and
priority creditors;
b. take appropriate action with regard to possible voidable
preferences, transfers, and liens;
c. prepare petitions, answers, orders, reports and other
papers; and
d. assist the Debtor in preparing and proposing a plan under
Chapter 11 of the U.S. Bankruptcy Code.
The Debtor has caused The Mitchell Company to pay to Irvin Grodsky
a retainer to be held in escrow the amount of $70,000 towards its
fees incurred in the proceeding and, if authorized, the Debtor's
prior Chapter 11 proceeding. The Debtor previously filed a
Chapter 11 proceeding on October 23, 2008 (Bankr. S.D. Ala. Case
No. 08-14135). The Firm was approved as attorney for the Debtor
in that case and is owed more than $70,000 in unpaid fees in the
case.
Irvin Grodsky, Esq., at the Firm, assures the Court that the Firm
is "disinterested" as that term is defined in Section 101(14) of
the Bankruptcy Code.
About Holiday Isle
Mobile, Alabama-based Holiday Isle, LLC, is limited liability
company and its sole member is The Mitchell Company, Inc.
Holiday Isle for Chapter 11 bankruptcy protection on July 23, 2010
(Bankr. S.D. Ala. Case No. 10-03365). Irvin Grodsky, Esq., who
has an office in Mobile, Alabama, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10 million to $50 million as of the Petition Date.
INDIO SUN: Section 341(a) Meeting Scheduled for August 31
---------------------------------------------------------
The U.S. Trustee for Region 16 will convene a meeting of Indio Sun
LLC's creditors on August 31, 2010, at 2:30 p.m. The meeting will
be held at 3685 Main Street, Suite 300, Riverside, CA 92501.
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.
San Diego, California-based Indio Sun LLC, fdba Palm Desert
Heights Development Group LLC, filed for Chapter 11 bankruptcy
protection on July 25, 2010 (Bankr. C.D. Calif. Case No. 10-
33217). Sandford Frey, Esq., who has an office in Los Angeles,
California, assists the Company in its restructuring efforts. The
Company estimated assets of $10 million to $50 million and up to
$10 million in debts in its Chapter 11 petition.
INTERTAPE POLYMER: Posts $2.7 Million Net Loss for June 30 Quarter
------------------------------------------------------------------
Intertape Polymer Group Inc. released results for the second
quarter ended June 30, 2010. Highlights include:
* Sales increased 18.7% to US$180.3 million year-over-year
* Improved top-line performance from both divisions
* ECP EBITDA positive for Q2 2010
* Cash flow from operations before changes in working capital of
$6.6 million
"Despite some renewed economic concerns as growth in the US and
elsewhere started to slow, Intertape's second quarter sales
increased both year-over-year and sequentially. As well, our
Engineered Coated Products Division made meaningful progress.
However, the continuing volatility of raw material costs and
industry pricing pressures affected gross margins, particularly
in the Tapes and Films Division," said Intertape's Chairman, Eric
E. Baker.
Net loss for the second quarter of 2010 was $2.7 million or $0.05
per share, both basic and diluted, compared to a loss of $1.2
million or $0.02 per share, both basic and diluted, for the same
period last year. The increase in net loss was primarily
attributable to raw material costs increasing more than selling
prices. In addition, the Company's strong commitment to the
development of new products resulted in higher research and
development expenses. Net loss for the first six months of 2010
totaled $8.5 million compared to a net loss of $7.8 million for
the same period in 2009.
Second quarter sales increased 18.7% to $180.3 million, compared
to $151.9 million for the second quarter of 2009 and were up 4.1%
sequentially from $173.1 million for the first quarter of 2010.
The sales volume increased by approximately 12% over the second
quarter of 2009 due to some improvements in the overall economy,
sales of new products, and additional channel and market
development. Selling prices for the second quarter increased
approximately 3% compared to the second quarter of 2009 and also
to the first quarter of 2010. On a year-over-year basis, second
quarter sales for the T&F Division increased by 18.0% to $149.8
million while sales for the ECP Division increased by 22.3% to
$30.4 million. Sales for the first six months of 2010 were $353.4
million compared to $291.0 million for the same period in 2009, an
increase of 21.5%. This sales increase includes an approximately
19% increase in sales volume while selling prices were basically
flat.
Gross profit for the second quarter totaled $21.4 million,
compared to $21.5 million a year ago, reflecting a $2.2 million
decrease in the T&F Division and a $2.0 million increase in the
ECP Division. Second quarter gross margin was 11.9% compared to
14.2% for the prior year and 11.3% for the first quarter of 2010.
Gross profit for the most recent period continued to be impacted
by high raw material costs and pricing pressures.
Selling, general, and administrative expenses were $17.9 million,
$1.3 million higher than the $16.6 million for the second quarter
of 2009, mainly the result of higher selling expenses related to
the 18.7% increase in sales, partially offset by lower general and
administrative expenses. SG&A expenses declined by $1.0 million
over the first quarter of 2010 due to a reduction in professional
fees paid to third parties.
EBITDA for the second quarter was $10.4 million compared to $12.4
million for the second quarter of 2009 and $8.0 million for the
first quarter of 2010. On a year-over-year basis, EBITDA was
lower in the second quarter of 2010, reflecting higher raw
material costs. EBITDA was higher sequentially due to the lower
SG&A expenses in the second quarter and a higher gross profit
related to the increase in sales dollars. EBITDA for the first
six months of 2010 was $18.4 million compared to $19.1 million in
2009.
The Company generated cash flows from operating activities before
changes in working capital items for the second quarter of $6.6
million compared to $8.5 million in the second quarter last year.
The decrease was due to an increase in net loss and pension
payments in excess of amounts expensed of $0.7 million.
Cash flows from operating activities decreased in the second
quarter by $11.2 million to negative $2.4 million from positive
$8.8 million in the second quarter a year ago. Changes in working
capital items resulted in a net use of funds during the second
quarter of 2010 of $9.1 million due to an increase in trade and
other receivables of $8.7 million related to higher sales, an
increase in inventories of $3.2 million partially offset by an
increase in accounts payable and accrued liabilities of $2.9
million.
The continued efforts to better manage the balance sheet is well
reflected in Days Sales Outstanding and Days Inventory. As
compared to the second quarter of 2009, DSO's and Days Inventory
declined from 49 days to 46 days and from 55 days to 51 days,
respectively.
Outlook
"The ECP Division posted a positive EBITDA for the second quarter
and strong top-line growth reflecting new products with higher
margins and improved product and channel mix. The T&F Division
gross margin was under pressure due to the lag time in securing
sufficient price increases to fully offset rising raw material
costs," said Intertape's President and CEO, Greg Yull.
"While the building and construction industry is presenting signs
of softness after a modest rebound, the ECP Division is expected
to perform well in upcoming quarters. The T&F Division will
benefit from price increases which began toward the latter part of
the second quarter and are continuing into the third quarter but
not to the extent anticipated due to competitive pressures. Our
strategy is to regain pricing power and maintain or grow market
share through an aggressive program to commercialize new higher
margin products addressing new and existing markets.
"We remain in prudent management mode and will continue to invest
in order to improve our competitive position, while carefully
managing all costs. Paying down debt remains a top priority;
however, we will continue to assess opportunities to repurchase
the Company's common shares," concluded Mr. Yull.
The Company's balance sheet at June 30, 2010, showed
$552.1 million in total assets and $325.8 million in total
liabilities, resulting to $226.2 million in stockholders' equity.
A full-text copy of the Company's Form 6-K filed with the U.S.
Securities and Exchange Commission is available for free at
http://ResearchArchives.com/t/s?67d0
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?67cd
About Intertape Polymer Group
Intertape Polymer Group Inc. (TSX:ITP) (NYSE:ITP) develops and
manufactures specialized polyolefin plastic and paper based
packaging products and complementary packaging systems for
industrial and retail use. Headquartered in Montreal, Quebec and
Sarasota/Bradenton, Florida, the Company employs approximately
2,100 employees with operations in 17 locations, including 13
manufacturing facilities in North America and one in Europe.
* * *
As reported by the Troubled Company Reporter on April 6, 2009,
Standard & Poor's Ratings Services lowered its ratings, including
its corporate credit rating, to 'CCC+' from 'B' on Intertape
Polymer Group Inc. and related entities. At the same time, S&P
removed the ratings from CreditWatch with negative implications,s
where S&P placed them on March 23, 2009. The outlook is negative.
IRVINE SENSORS: Reaches Deal to Sell Securities to Longview
-----------------------------------------------------------
Irvine Sensors Corp. and Longview Fund L.P. entered into an
Agreement, Consent and Waiver on April 9, 2010, pursuant to which
the Company agreed, subject to certain conditions, to issue to
Longview:
i) subject to approval of the Company's stockholders, non-
voting equity securities, with terms junior to the Company's
Series B Convertible Preferred Stock, convertible into
1,000,000 shares of the Company's Common Stock at a
conversion price per converted share of Common Stock equal
to $0.30, which was the last consolidated closing bid price
of the Company's Common Stock prior to the execution of the
Longview Agreement as determined in accordance with Nasdaq
Marketplace Rules and
ii) a two-year warrant with a cashless exercise provision to
purchase 1,000,000 shares of the Company's Common Stock at
any time after six months after the issuance date at an
exercise price per share of $0.30, which was the last
consolidated closing bid price of the Company's Common Stock
prior to the execution of the Longview Agreement as
determined in accordance with Nasdaq Marketplace Rules.
Because the Company was unable to arrange for a third-party
investor to purchase by July 15, 2010 the Company's Series A-1
Convertible Preferred Stock and Series A-2 Convertible Preferred
Stock beneficially owned by Longview, and because stockholder
approval was obtained on July 28, 2010, the Company issued the
Contingent Warrant and issued the Contingent Securities in the
form of an additional 10,000 shares of its Series C Convertible
Preferred Stock to Longview.
The Company also issued 800,000 shares of Common Stock to an
accredited institutional investor upon such investor's conversion
on July 23, 2010 of $102,600 of the stated value of the Series A-1
10% Cumulative Convertible Preferred Stock of the Company. As
a result of the issuance of the Series C Stock and the Contingent
Warrant on August 2, 2010, the Company has issued more than
5% of its outstanding shares of Common Stock in unregistered
transactions in the aggregate since the last report that it filed
under Item 3.02 with the Securities and Exchange Commission.
About Irvine Sensors
Irvine Sensors Corporation -- http://www.irvine-sensors.com/--
headquartered in Costa Mesa, California, is a vision systems
company engaged in the development and sale of miniaturized
infrared and electro-optical cameras, image processors and stacked
chip assemblies and sale of higher level systems incorporating
such products and research and development related to high density
electronics, miniaturized sensors, optical interconnection
technology, high speed network security, image processing and low-
power analog and mixed-signal integrated circuits for diverse
systems applications.
At March 28, 2010, the Company had total assets of $6,184,700
against total liabilities of $13,111,400, and non-controlling
interest of $324,400, resulting in stockholders' deficit of
$6,926,700.
Optex Systems, Inc., a Texas corporation and a wholly owned
subsidiary of Irvine Sensors, on September 21, 2009, filed a
voluntary petition for relief under Chapter 7 of the United States
Bankruptcy Code in the United States Bankruptcy Court in
California.
KRONOS INT'L: Seeking Extension of May 2011 Loan Maturity Date
--------------------------------------------------------------
Kronos International, Inc., disclosed in its Form 10-Q regulatory
filing with the Securities and Exchange Commission that it has
commenced discussions with lenders regarding an extension of its
credit facility.
Kronos' revolving credit facility currently matures in May 2011.
The Company expects to have a new agreement of extension in place
prior to the maturity date.
At June 30, 2010, Kronos' consolidated debt was comprised of:
-- EUR400 million principal amount of its 6.5% Senior Secured
Notes ($493.3 million at June 30, 2010) due in 2013;
-- EUR15 million ($18.6 million) under its revolving credit
facility which matures in May 2011; and
-- Approximately $7.3 million of other indebtedness.
The revolving credit facility requires Kronos to maintain minimum
levels of equity, requires the maintenance of certain financial
ratios, limits dividends and additional indebtedness and contains
other provisions and restrictive covenants customary in lending
transactions of this type. The Company said it is in compliance
with all of its debt covenants at June 30, 2010. The Company
believes it will be able to comply with the financial covenants
contained in its credit facility through the maturity of the
facility; however if future operating results differ materially
from its expectations it may be unable to maintain compliance.
About Kronos International
Kronos International, Inc., produces and markets TiO2 pigments in
Europe, and is a wholly owned subsidiary of Kronos Worldwide,
Inc., headquartered in Dallas, Texas.
As of June 30, 2010, the Company had $937.1 million in total
assets against $181.1 million in total current liabilities and
$620.9 million in total non-current liabilities, resulting in
$135.1 million in stockholders' equity.
* * *
As reported by the Troubled Company Reporter on June 25, 2010,
Moody's Investors Service raised Kronos International's Corporate
Family Rating to B3 from Caa1 and the rating on the EUR400 million
senior secured notes due 2013 to Caa1 from Caa2. The upgrade
reflects KII's better operating results, improved titanium dioxide
market conditions and the expectation that credit metrics will
improve further in 2010. The outlook is stable.
Moody's also said KII's liquidity is supported by its positive
cash flow from operations, cash balances and unused availability
under its EUR80 million revolving credit, which matures in less
than one year (May 2011). Total use of the revolver was restored
to the company in May 2010 after complying with the amended
covenants in the first quarter 2010. Availability had been
limited to EUR51 million since the facility was amended in
September 2009 to accommodate the shortfall in EBITDA generation
during the global economic downturn, which would have led to a
violation of the leverage covenant. The improved profitability in
2010 could allow the company to meet the original financial
covenants and revert the credit facility to its pre-amendment
terms and conditions.
The TCR on April 19, 2010, reported that Fitch Ratings has
upgraded Kronos' Issuer Default Rating to 'B-' from 'CCC' and its
securities ratings: Senior secured revolving credit facility to
'BB-/RR1' from 'B+/RR1'; Senior secured notes to 'B-/RR4' from
'CCC/RR4'. The Rating Outlook has been revised to Stable from
Negative.
Fitch said the ratings reflect high financial leverage at Kronos
International as well as Kronos Worldwide's solid market position
in the TiO2 industry, the fifth largest globally with 10% of
global capacity. The ratings also reflect the early stages of a
recovery in the TiO2 industry and Fitch's expectations that
earnings over the next 24 months will remain below the average
over the period from 2005 through 2008.
KRONOS INT'L: Swings to $9-Mil. Net Income for Q2 2010
------------------------------------------------------
Kronos International, Inc., reported net income for the second
quarter of 2010 of $9.0 million compared with a net loss of $26.1
million in the second quarter of 2009. For the first six months
of 2010, Kronos International reported net income of $49.3 million
compared with a net loss of $50.2 million.
Comparability of the Company's results was impacted by higher
income from operations in 2010 periods due principally from higher
sales and production volumes, as well as a $35.2 million non-cash
deferred income tax benefit recognized in the first quarter of
2010.
Net sales of $256.6 million in the second quarter of 2010 were
$59.9 million, or 30%, higher than the second quarter of 2009.
Net sales of $485.4 million for the first six months of 2010 were
$117.1 million, or 32%, higher than the first six months of 2009.
As of June 30, 2010, the Company had $937.1 million in total
assets against $181.1 million in total current liabilities and
$620.9 million in total non-current liabilities, resulting in
$135.1 million in stockholders' equity.
A full-text copy of the Company's earnings release is available at
no charge at http://ResearchArchives.com/t/s?67df
A full-text copy of the Company's Form 10-Q is available at no
charge at http://ResearchArchives.com/t/s?67e0
About Kronos International
Kronos International, Inc., produces and markets TiO2 pigments in
Europe, and is a wholly owned subsidiary of Kronos Worldwide,
Inc., headquartered in Dallas, Texas.
* * *
As reported by the Troubled Company Reporter on June 25, 2010,
Moody's Investors Service raised Kronos International's Corporate
Family Rating to B3 from Caa1 and the rating on the EUR400 million
senior secured notes due 2013 to Caa1 from Caa2. The upgrade
reflects KII's better operating results, improved titanium dioxide
market conditions and the expectation that credit metrics will
improve further in 2010. The outlook is stable.
Moody's also said KII's liquidity is supported by its positive
cash flow from operations, cash balances and unused availability
under its EUR80 million revolving credit, which matures in less
than one year (May 2011). Total use of the revolver was restored
to the company in May 2010 after complying with the amended
covenants in the first quarter 2010. Availability had been
limited to EUR51 million since the facility was amended in
September 2009 to accommodate the shortfall in EBITDA generation
during the global economic downturn, which would have led to a
violation of the leverage covenant. The improved profitability in
2010 could allow the company to meet the original financial
covenants and revert the credit facility to its pre-amendment
terms and conditions.
The TCR on April 19, 2010, reported that Fitch Ratings has
upgraded Kronos' Issuer Default Rating to 'B-' from 'CCC' and its
securities ratings: Senior secured revolving credit facility to
'BB-/RR1' from 'B+/RR1'; Senior secured notes to 'B-/RR4' from
'CCC/RR4'. The Rating Outlook has been revised to Stable from
Negative.
Fitch said the ratings reflect high financial leverage at Kronos
International as well as Kronos Worldwide's solid market position
in the TiO2 industry, the fifth largest globally with 10% of
global capacity. The ratings also reflect the early stages of a
recovery in the TiO2 industry and Fitch's expectations that
earnings over the next 24 months will remain below the average
over the period from 2005 through 2008.
LEAP WIRELESS: Posts $19.3 Million Net Loss for June 30 Quarter
---------------------------------------------------------------
Leap Wireless International Inc. reported a net loss of $19.3
million for the quarter ended June 30, 2010, compared to a net
loss of $61.2 million for the comparable period of the prior year.
The decline in net loss resulted in a year-over-year net loss per
share improvement of $0.65.
The Company's balance sheet at June 30, 2010, showed $5.2 billion
in total assets and $3.5 billion in total liabilities, for
$1.6 billion in total stockholders' equity.
Service revenues for the second quarter increased 10.2% over the
prior year quarter to $597.0 million. Operating income for the
second quarter of 2010 was $49.2 million, compared to operating
income of $26.3 million for the second quarter of 2009, an
increase of $22.9 million, or approximately 87%.
"The Company delivered solid financial performance in the second
quarter, highlighted by an increase in adjusted OIBDA of nearly
25% over the second quarter of 2009 and 40% over the first quarter
of 2010, which resulted in an important milestone for the business
in generating positive free cash flow," said Doug Hutcheson,
Leap's president and chief executive officer. "We expected second
quarter net customer additions to be seasonally soft, and while
customer activity in the quarter was even softer than expected, we
believe it will strengthen in coming quarters as a result of the
actions we are taking.
Mr. Hutcheson added that overall business activity for 2010 comes
in three phases. During the first half of the year, the Company
was preparing for a significant transformation of our business.
In the third quarter, the Company is beginning the implementation
phase of this transformation with various initiatives, including
new, simpler voice, Smartphone and broadband service plans, as
well as an enhanced touchscreen, Smartphone and feature phone
line-up. The Company expects to begin to realize the benefits of
these changes in the fourth quarter and beyond as it enters the
traditionally strong selling season.
"We are pleased with the Company's financial performance in the
second quarter, including the increased contributions from our
Auction 66 markets and our mobile broadband service," said Walter
Berger, Leap's executive vice president and chief financial
officer.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?67da
About Leap Wireless
Headquartered in San Diego, California, Leap Wireless
International, Inc. (NASDAQ: LEAP) -- http://www.leapwireless.com/
-- and its joint ventures provide wireless services in 34 states
and the District of Columbia and hold licenses in 35 of the top 50
U.S. markets. Through its affordable, flat-rate service plans,
Cricket offers customers a choice of unlimited voice, text, high-
speed data and mobile Web services.
Leap spun out from Qualcomm Inc. in 1998 and expanded primarily
into rural markets. It has customers in 34 states and annual
sales around $2.3 billion, making it the seventh-largest wireless
carrier in the U.S., according to The Wall Street Journal.
At March 31, 2010, the Company had total assets of $5.26 billion
and total liabilities of $3.58 billion and redeemable non-
controlling interests of $51.8 billion resulting in stockholders'
equity of $1.63 billion.
The Troubled Company Reporter on February 2, 2010, citing The Wall
Street Journal's Jeffrey McCracken and Niraj Sheth, said Leap
Wireless has hired Goldman Sachs Group and formed a special board
committee to look into selling the company or merging with rivals.
Leap Wireless has reported net losses in the last three years. It
incurred a net loss of $239.5 million, $150.2 million and
$80.3 million in 2009, 2008 and 2007.
Leap Wireless carries a "B2" corporate family rating from Standard
& Poor's.
LEAP WIRELESS: Unit Inks Service Agreement With Sprint Spectrum
---------------------------------------------------------------
Cricket Communications Inc., the wholly-owned operating subsidiary
of Leap Wireless International Inc., entered into a private label
services agreement with Sprint Spectrum L.P. Pursuant to the
agreement, Cricket is entitled to purchase and resell prepaid
wireless services from Sprint.
The initial term of the Services Agreement is until December 31,
2015, and the agreement renews for successive one-year periods
unless either party provides 180-day advance notice to the other.
Under the agreement, Cricket will pay Sprint a specified amount
per month for each subscriber activated on Sprint's network,
subject to periodic market-based adjustments. Cricket has agreed
to provide Sprint with a minimum of $300 million of aggregate
revenues over the initial five-year term of the agreement, with a
minimum of $25 million of revenue to be provided in 2011, a
minimum of $75 million of revenue to be provided in each of 2012,
2013 and 2014, and a minimum of $50 million of revenue to be
provided in 2015. Any revenues provided by Cricket in a given
year above the minimum revenue commitment for that particular year
will be credited to the next succeeding year.
In the event Leap is involved in a change-of-control transaction
with another facilities-based wireless carrier with annual
revenues of at least $500 million in the fiscal year preceding the
date of the change of control agreement, either Sprint or Cricket
may terminate the agreement within 60 days following the closing
of such a transaction. In connection with any such termination,
Cricket would be required to pay to Sprint a specified percentage
of the remaining aggregate minimum revenue commitment, with the
percentage to be paid depending on the year in which the change of
control agreement was entered into, beginning at 40% for any such
agreement entered into in or before 2011, 30% for any such
agreement entered into in 2012, 20% for any such agreement entered
into in 2013 and 10% for any such agreement entered into in 2014
or 2015.
In the event that Leap is involved in a change-of-control
transaction with MetroPCS Communications, Inc. during the term of
the Services Agreement, then the agreement would continue in full
force and effect, subject to certain revisions, including, without
limitation, an increase to the total minimum revenue commitment to
$350 million, taking into account any revenue contributed by
Cricket prior to the date thereof.
In the event Sprint is involved in a change-of-control
transaction, the agreement would bind Sprint's successor-in-
interest.
About Leap Wireless
Headquartered in San Diego, California, Leap Wireless
International, Inc. (NASDAQ: LEAP) -- http://www.leapwireless.com/
-- and its joint ventures provide wireless services in 34 states
and the District of Columbia and hold licenses in 35 of the top 50
U.S. markets. Through its affordable, flat-rate service plans,
Cricket offers customers a choice of unlimited voice, text, high-
speed data and mobile Web services.
Leap spun out from Qualcomm Inc. in 1998 and expanded primarily
into rural markets. It has customers in 34 states and annual
sales around $2.3 billion, making it the seventh-largest wireless
carrier in the U.S., according to The Wall Street Journal.
At March 31, 2010, the Company had total assets of $5.26 billion
and total liabilities of $3.58 billion and redeemable non-
controlling interests of $51.8 billion resulting in stockholders'
equity of $1.63 billion.
The Troubled Company Reporter on February 2, 2010, citing The Wall
Street Journal's Jeffrey McCracken and Niraj Sheth, said Leap
Wireless has hired Goldman Sachs Group and formed a special board
committee to look into selling the company or merging with rivals.
Leap Wireless has reported net losses in the last three years. It
incurred a net loss of $239.5 million, $150.2 million and
$80.3 million in 2009, 2008 and 2007.
Leap Wireless carries a "B2" corporate family rating from Standard
& Poor's.
LEHMAN BROTHERS: Asks for OK of Transfer Agreement With Citibank
----------------------------------------------------------------
Lehman Brothers Holdings Inc. and the SIPA trustee of Lehman
Brothers Inc. seek court approval to approve a transfer agreement
with Citibank N.A.
The agreement authorizes the transfer of the residual interests
of LBHI, LBI and another subsidiary, Lehman Pass Through
Securities Inc., in real estate mortgage investment conduits.
The Lehman units currently hold about 1,600 residual interests in
REMICs.
Under the deal, LBHI agreed to pay $24 million to Citibank in
exchange for the bank's acquisition of the residual interests.
As the new owner of the assets, Citibank will assume the
obligation to pay the taxes on those assets accruing on or after
March 31, 2010, the effective date for the agreement.
A copy of the Transfer Agreement is available without charge
at http://bankrupt.com/misc/LBHI_CitiTransferAgreement.pdf
Richard Krasnow, Esq., at Weil Gotshal & Manges LLP, in New York,
says the acquisition by Citibank of those assets will relieve the
Lehman units of $119 million to $283 million in income tax, which
the companies are expected to incur within four years.
In connection with the deal, LBHI and the trustee also ask for
court approval to enter into an inter-estate agreement, dated
July 27, 2010, under which they agreed to a mechanism for sharing
responsibility between the company and LBI for the $24 million
payment. About 70% of the $24 million will be allocated to LBI
with the remaining 30% divided between LBHI and LPTSI.
A copy of the Inter-Estate Agreement is available without charge
at http://bankrupt.com/misc/LBHI_CitiInterEstateAgreement.pdf
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: Intends to Acquire Loans Through LBREP JV
----------------------------------------------------------
Lehman Brothers Holdings Inc. seeks a court ruling authorizing an
affiliate to purchase loans through a joint venture with
Luxembourg-based LBREP III Europe S.a.r.l. SICAR.
The loans comprise the senior debt in a residential project known
as "Sun and Moon," in which LBREP and LBHI own stake. The
project consists of 634 residential units located in Marseille,
France.
The buyout is part of a deal that LBHI hammered out with LBREP to
get additional funding for the Sun and Moon project. The deal
calls for the acquisition of the loans by Lehman Commercial Paper
Inc. from Lehman Brothers Bankhaus AG, which will then be
assigned to the joint venture to be owned 37.5% by LCPI and 62.5%
by LBREP.
The additional funding for the residential project will be in the
form of debt from LCPI and equity investment from LBHI and LBREP.
As much as EUR102.4 million is still needed to complete the
project, Alfredo Perez, Esq., at Weil Gotshal & Manges LLP, in
Houston, Texas, tells the Court.
Mr. Perez says the buyout would allow LCPI and LBHI to increase
their investments in the Sun and Moon project while also sharing
with LBREP in providing additional funding for the project.
"If LCPI purchased the [loans] alone, it would not have the
benefit of the additional funding from LBREP, and the Sun and
Moon project would not receive sufficient [funding] to meet its
current business plan," Mr. Perez says in court papers.
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: Presents Surrender Agreement With 85 Tenth
-----------------------------------------------------------
Lehman Brothers Holdings Inc. asks the U.S. Bankruptcy Court for
the Southern District of New York to approve an agreement that
would authorize the company to surrender its lease contract with
85 Tenth Avenue Associates LLC.
LBHI entered into the contract to lease space in a New York
building, which it could use as its primary data centers. The
company has vacated the premises following its bankruptcy filing.
Under the agreement, LBHI will surrender its lease and will pay
$3.5 million in termination fees to 85 Tenth. The company is
also planning to abandon some equipment and other properties left
in the premises to the landlord.
A full-text copy of the agreement is available without charge
at http://bankrupt.com/misc/LBHI_SurrenderAgreement85.pdf
"By entering into the agreement and paying the termination fee,
LBHI will save its estate and creditors, at the very least,
approximately $8 million," according to LBHI's lawyer, Shai
Waisman, Esq., at Weil Gotshal & Manges LLP, in New York.
LBHI currently owes over $12 million under the terms of the
lease, which is set to expire in December 2013.
The Court will consider approval of the agreement 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 Amend Pact to Fund Heritage Project
-------------------------------------------------------------
Lehman Brothers Holdings Inc. seeks court approval to amend what
it calls a participation agreement so that it could provide
financing for the Heritage Fields Project, a 3,723-acre
masterplan development in California owned by Heritage Fields El
Toro LLC.
The proposed amendment would allow LBHI to buy up to $32 million
of participation interest in a loan that El Toro LLC provided to
Heritage in 2007. Under the current participation agreement with
El Toro, LBHI is only allowed to purchase up to $24.5 million.
The $32 million will be used to cover the costs of the Heritage
Fields project, which must be paid prior to court approval of
LBHI's settlement deal with Heritage, according to Alfredo Perez,
Esq., at Weil Gotshal & Manges LLP, in Houston, Texas.
LBHI earlier filed a motion to approve the settlement deal, under
which it will receive about $125 million from Heritage as payment
for assigning its debt interest in the project to State Street
Bank and Trust Company. If the settlement is approved, the
participation interests will be repaid.
Mr. Perez says they chose to structure the funding of the
project's costs through the proposed buyout because it provides
LBHI and its creditors with the most security.
"As a participation in El Toro's loan, the additional
participation interests are secured by a first priority security
interest in the project," he says, adding that they will be paid
prior to substantially any other interest in the Heritage Fields
project.
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)
LEVEL 3 COMMUNICATIONS: $39-Mil. of Debt Due to Mature in 2nd Half
------------------------------------------------------------------
Level 3 Communications Inc. filed its second quarter 2010 report
on Form 10-Q.
The Company's balance sheet at June 30, 2010, showed
$8.296 billion in total assets and $8.281 billion in total
liabilities, for $15.0 million in total stockholders' equity.
As of June 30, 2010, Level 3 had an aggregate of $6.3 billion of
long-term debt on a consolidated basis including current
maturities, premiums and discounts, capital leases and its
commercial mortgage, and $15 million of stockholder' equity. Of
this long-term debt, approximately $39 million is due to mature in
the remaining six months of 2010, approximately $199 million is
due to mature in 2011 and approximately $298 million is due to
mature in 2012, in each case excluding debt discounts, premiums
and fair value adjustments.
"If Level 3 were unable to refinance its debt or to raise
additional capital on acceptable terms, Level 3's ability to
operate its business would be impaired," the Company said in the
document submitted to the Securities and Exchange Commission.
As it had earlier disclosed in a press release, Level 3 incurred a
net loss of $169.0 million on $908.0 million of total revenues for
the three months ended June 30, 2010, compared with a net loss of
$134.0 on $942.0 million of total revenue during the same period a
year ago.
The Company has also been focused on improving its liquidity,
financial condition, and extending the maturity dates of certain
debt. Among other tings, in the second quarter of 2010, the
Company redeemed all of the outstanding $172 million aggregate
principal amount of its 10% Convertible Senior Notes due 2011 for
a price equal to $1,016.70 per $1,000 principal amount of the
notes plus accrued and unpaid interest up to, but not including
the redemption date. The Company used cash on hand to fund the
redemption of these notes, and recognized a loss on extinguishment
of approximately $4 million.
The Company said it will continue to look for opportunities to
improve its financial position and focus its resources on growing
revenue and managing costs for the communications business.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?67dc
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6745
About Level 3
Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc., is a publicly traded international communications company
with one of the world's largest communications and Internet
backbones.
Level 3 Communications carries a 'Caa1' corporate family rating,
and 'Caa2' probability of default rating, with negative outlook
from Moody's, a 'B-' issuer default rating from Fitch, and 'B-'
long term issuer credit ratings from Standard & Poor's.
LOUIS PEARLMAN: Fla. Judge Allows Trustee to Hire Auctioneer
------------------------------------------------------------
Jacqueline Palank at Dow Jones Daily Bankruptcy Review reports
that Bankruptcy Judge Arthur B. Briskman in Orlando, Fla., on
Tuesday gave permission to Soneet R. Kapila -- the chapter 11
trustee appointed to oversee the liquidation of the bankruptcy
estates of pop music mogul Louis J. Pearlman and his Trans
Continental Records Inc. -- to hire an auctioneer.
According to Ms. Palank, Mr. Kapila is seeking an auctioneer's
help because much of the property "is of uncertain value" and
doesn't have a clear market in which to seek buyers.
Mr. Kapila plans to sell such personal property as dozens of CDs,
DVDs, and other recordings of the boy bands Mr. Pearlman created
-- the Backstreet Boys, 'N Sync, O-Town and LFO -- as well as
numerous other assets.
The report says Judge Briskman approved the request after the
Backstreet Boys withdrew their objection to the sale. According
to the report, the band was originally miffed that dozens of
photographs included under its name actually featured the five
guys of rival boy band 'N Sync.
An auction date doesn't yet appear to have been set, the report
adds.
About Louis Pearlman
Louis J. Pearlman started Trans Continental Records which managed
boy bands such as the Backstreet Boys, 'N Sync, O-Town, Lyte Funky
Ones (LFO), Take 5, Natural and US5. Other artists on the Trans
Continental's label included Aaron Carter, Jordan Knight, C Note,
and Smilez & Southstar.
On March 1, 2007, creditors Tatonka Capital Corporation, First
National Bank & Trust Co. of Williston, and American Bank of St.
Paul, and Integra Bank filed an involuntary chapter 11 petition
against Mr. Pearlman and his company, Trans Continental Airlines,
Inc. (Bankr. M.D. Fla. Case Nos. 07-00761 and 07-00762). The
creditors disclosed an aggregate of more than $40 million in
claims.
Fletcher Peacock, Esq., is Mr. Pearlman's legal counsel.
Tatonka Capital is represented by Derek F. Meek, Esq., and Robert
B. Rubin, Esq., at Burr & Forman LLP, and Richard B Webber, II,
Esq., Zimmerman Kiser & Sutcliffe PA. First national Bank is
represented by Raymond V. Miller, Esq., at Gunster Yoakley &
Stewart PA, and Richard P. Olson, Esq., at Olson & Burns PC.
American Bank of St. Paul is represented by William P. Wassweiler,
Esq., at Rider Bennett LLP. Integra bank is represented by
Lawrence E. Rifken, Esq., at McGuire Woods LLP.
Soneet R. Kapila, the Chapter 11 trustee appointed to oversee Mr.
Pearlman's estate, is represented by Denise D. Dell-Powell, Esq.,
and Jill E. Kelso, Esq., at Akerman Senterfitt, and Gregory M.
Garno, Esq., and Paul J. Battista, Esq., at Genovese Joblove &
Battista PA.
The Official Committee of Unsecured Creditors of Trans Continental
is represented by Robert J. Feinstein, at Pachulski Stang Ziehl &
Jones LLP.
LYONDELL CHEMICAL: Creditors' Suit Set for September Trial
----------------------------------------------------------
Tiffany Kary at Bloomberg News reports that a lawsuit commenced by
the Official Committee of Unsecured Creditors for Lyondell
Chemical Co. against billionaire Len Blavatnik that claims a 2007
merger drove the company into bankruptcy is set to begin trial in
New York next month.
According to the report, summonses were filed August 4 in U.S.
Bankruptcy Court in Manhattan listing Mr. Blavatnik and 41 other
people and companies that allegedly played a role in Lyondell's
leveraged buyout by Luxembourg-based Basell AF SCA. A pretrial
conference is set for Sept. 13.
Bloomberg relates that the creditors claim the $22 billion LBO
enriched advisers by about $1 billion and profited management,
including Mr. Blavatnik, while leaving Lyondell with too much
debt.
About Lyondell Chemical
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. Basell AF and Lyondell
Chemical Company merged operations in 2007 to form LyondellBasell
Industries, the world's third largest independent chemical
company. LyondellBasell became saddled with debt as part of the
US$12.7 billion merger. Len Blavatnik's Access Industries owned
the Company prior to its bankruptcy filing.
On January 6, 2009, LyondellBasell Industries' U.S. operations,
led by Lyondell Chemical Co., and one of its European holding
companies -- Basell Germany Holdings GmbH -- filed voluntary
petitions to reorganize under Chapter 11 of the U.S. Bankruptcy
Code to facilitate a restructuring of the company's debts. The
case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y.
Lead Case No. 09-10023). Seventy-nine Lyondell entities filed for
Chapter 11. Luxembourg-based LyondellBasell Industries AF S.C.A.
and another affiliate were voluntarily added to Lyondell
Chemical's reorganization filing under Chapter 11 on April 24,
2009.
Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in
New York, served as the Debtors' bankruptcy counsel. Evercore
Partners served as financial advisors, and Alix Partners and its
subsidiary AP Services LLC, served as restructuring advisors.
AlixPartners' Kevin M. McShea acted as the Debtors' Chief
Restructuring Officer. Clifford Chance LLP served as
restructuring advisors to the European entities.
LyondellBasell emerged from Chapter 11 bankruptcy protection in
May 2010, with a plan that provides the Company with $3 billion of
opening liquidity. A new parent company, LyondellBasell
Industries N.V., incorporated in the Netherlands, is the successor
of the former parent company, LyondellBasell Industries AF S.C.A.,
a Luxembourg company that is no longer part of LyondellBasell.
LyondellBasell Industries N.V. owns and operates substantially the
same businesses as the previous parent company, including
subsidiaries that were not involved in the bankruptcy cases.
LyondellBasell's corporate seat is Rotterdam, Netherlands, with
administrative offices in Houston and Rotterdam.
MCCLATCHY CO: Launches Exchange Bid for Unregistered 11.5% Notes
----------------------------------------------------------------
The McClatchy Company is offering to exchange $875,000,000
aggregate principal amount of its registered 11.50% Senior Secured
Notes due 2017, for all of its original unregistered 11.50% Senior
Secured Notes due 2017, that were issued on February 11, 2010.
The terms of the exchange notes will be substantially identical to
the original notes, except that the exchange notes will not be
subject to transfer restrictions or registration rights relating
to the original notes.
The exchange offer will expire at 5:00 p.m. New York City Time, on
August 30, 2010, unless extended.
McClatchy is also offering to exchange the notes guarantees
associated with the original notes for the notes guarantees
associated with the exchange notes. The terms of the exchange
guarantees will be substantially identical to the original
guarantees, except that the exchange guarantees will not be
subject to the transfer restrictions or registration rights
relating to the original guarantees. There is no existing market
for the exchange notes to be issued, and the Company does not
intend to apply for their listing on any securities exchange or
arrange for them to be quoted on any quotation system.
The Company will exchange all original notes and related original
guarantees that are validly tendered and not withdrawn prior to
the expiration or termination of the exchange offer for an equal
principal amount of exchange notes and related exchange
guarantees.
A full-text copy of the Company's prospectus is available at no
charge at http://ResearchArchives.com/t/s?67e3
About McClatchy
The McClatchy Company is the third largest newspaper company in
the United States, publishing 30 daily newspapers, 43 non-dailies,
and direct marketing and direct mail operations. McClatchy also
operates leading local websites in each of its markets which
extend its audience reach. The websites offer users comprehensive
news and information, advertising, e-commerce and other services.
Together with its newspapers and direct marketing products, these
interactive operations make McClatchy the leading local media
company in each of its premium high growth markets. McClatchy-
owned newspapers include The Miami Herald, The Sacramento Bee, the
Fort Worth Star-Telegram, The Kansas City Star, The Charlotte
Observer, and The News & Observer (Raleigh).
* * *
The Troubled Company Reporter said on Feb. 15, 2010, Moody's
Investors Service upgraded The McClatchy Company's Corporate
Family Rating to Caa1 from Caa2, Probability of Default Rating to
Caa1 from Caa2, and senior unsecured and unguaranteed note ratings
to Caa2 from Caa3, concluding the review for upgrade initiated on
January 27, 2010. The upgrades reflect McClatchy's improved
liquidity position and reduced near-term default risk following
completion of the company's refinancing, and its ability to
stabilize EBITDA performance through significant cost reductions.
The rating outlook is stable.
As reported by the TCR on January 14, 2010, Fitch Ratings placed
McClatchy's Issuer Default Rating of 'C' on Watch Positive.
Approximately $2 billion of debt is affected by Fitch's action.
The TCR on July 2, 2009, said Standard & Poor's Ratings Services
raised its corporate credit rating on McClatchy to 'CC' from 'SD'
(selective default). The rating outlook is negative. At the same
time, S&P raised its issue-level rating on each of McClatchy's
senior unsecured notes originally issued by Knight Ridder Inc. to
'C' from 'D'. All other outstanding ratings on the company were
affirmed.
MEEKS THOMAS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Meeks Thomas
Ruth Irene Meeks
810 Muscogee Way
Mount Juliet, TN 37122
Bankruptcy Case No.: 10-08078
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Middle District of Tennessee (Nashville)
Debtor's Counsel: Thomas Larry Edmondson, Sr., Esq.
800 Broadway, 3rd Floor
Nashville, TN 37203
Tel: (615) 254-3765
Fax: (615) 254-2072
E-mail: larryedmondson@live.com
Estimated Assets: $500,001 to $1,000,000
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/tnmb10-08078.pdf
The petition was signed by the Joint Debtors.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Continental First Federal 10-01695 2/19/10
MEXICANA AIRLINE: Halt in Flights Could Adversely Affect ASUR
-------------------------------------------------------------
Grupo Aeroportuario del Sureste, S.A.B. de C.V. disclosed that
Mexicana (not including Mexicana Click, formerly known as Aerovias
Caribe, or Mexicana Link, which are reportedly not under financial
distress and were not part of the bankruptcy filing) accounted for
Ps.62.2 million in accounts receivable at June 30, 2010 and
accounted for 4.1% of ASUR's revenues for the six months ended
June 30, 2010 and 4.3% of ASUR's revenues for the year ended
December 31, 2009, primarily from domestic passengers.
ASUR said, "Although ASUR anticipates that a significant portion
of Mexicana's traffic would migrate to other carriers if its
operations were curtailed, ASUR does not have contracts with any
airlines, including Mexicana, that obligate them to continue
providing service to our airports, and we can offer no assurance
that competing airlines would seek to increase their flight
schedules if Mexicana reduced its use of our airports. If
Mexicana were to cease operations as a result of its bankruptcy
filing, ASUR's business and results of operations could be
adversely affected if traffic does not migrate to our other
airline customers."
About ASUR
Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a
Mexican airport operator with concessions to operate, maintain and
develop the airports of Cancun, Merida, Cozumel, Villahermosa,
Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlan in the
southeast of Mexico. The Company is listed both on the Mexican
Bolsa, where it trades under the symbol ASUR, and on the NYSE in
the U.S., where it trades under the symbol ASR. One ADS represents
ten (10) series B shares.
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 are Aerovias Caribe S.A. de C.V. (Mexicana Click)
and Mexicana Inter S.A. de C.V. (Mexicana Link).
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.
MGM MIRAGE: Posts $883.4 Million Net Loss for June 30 Quarter
-------------------------------------------------------------
MGM Resorts International reported financial results for the
second quarter of 2010. The Company recorded a second quarter
diluted loss per share of $2.00 compared to a loss of $0.60 per
share in the prior year second quarter. The current year results
include a pre-tax non-cash charge of approximately $1.12 billion
relating to an impairment of the Company's investment in the
CityCenter joint venture and a pre-tax non-cash charge of
approximately $29 million representing the Company's share of an
impairment of CityCenter's residential inventory. The prior year
results include non-cash impairment charges of $188 million,
primarily related to the Company's investment in a convertible
note, and losses on the retirement of long-term debt of $58
million.
The Company's balance sheet at June 30, 2010, showed $19.9 billion
in total assets, $1.1 billion in total current liabilities,
$2.6 billion in deferred income taxes, $13.0 billion in long-term
debt, $243.2 million in other long-term obligations, for a
stockholder's equity of $2.8 billion.
Net revenue for the second quarter of 2010 was $1.54 billion.
Excluding reimbursed costs revenue mainly related to the Company's
management of CityCenter, the Company earned net revenue of $1.45
billion, a decrease of 2% from the same period in 2009.
Reimbursed costs revenue represents reimbursement of payroll and
other costs incurred by the Company in connection with the
provision of management services.
Total casino revenue decreased 6% compared to the prior year
quarter, with slots revenue down approximately 3%. The Company's
table games volume, excluding baccarat, decreased 7% in the
quarter, but baccarat volume was up 10% compared to the prior year
quarter. The overall table games hold percentage was lower in the
2010 second quarter compared to the prior year quarter and near
the low end of the Company's normal 18% to 22% range. Lower than
normal table games hold percentage at the Company's Las Vegas
Strip resorts resulted in an impact to Adjusted EBITDA of
approximately $20 million. Bellagio, The Mirage, and Mandalay Bay
were affected by the lower table games hold, partially offset by
MGM Grand which benefited from a higher than normal table games
hold percentage. These factors led to an overall decrease in
table games revenue of 11% for the quarter.
"M life, our new customer loyalty program, was introduced two
weeks ago at Beau Rivage and the response has been outstanding,"
said Mr. Murren. "We are very excited about the opportunity M
life presents to our Company, especially when coupled with the
superior assets in our portfolio."
"We maintained strong occupancy and improved our convention mix
over the prior year second quarter, leading to sequential
improvement in Las Vegas Strip REVPAR," said Mr. Murren. "We
expect continued progress in our business trends driven by strong
forward convention bookings."
Operating loss for the second quarter of 2010 was $1.0 billion
compared to operating income of $131 million in the 2009 quarter.
Excluding the impairment charges related to CityCenter, the
Company would have earned operating income of $102 million in the
second quarter of 2010.
The Company reported Adjusted Property EBITDA attributable to
wholly-owned operations of $305 million in the 2010 quarter, a
decrease of 16% year-over-year. Adjusted Property EBITDA, which
includes the impact from unconsolidated affiliates, was $279
million in the 2010 quarter and was negatively impacted by $56
million in losses from CityCenter results. The Company reported
Adjusted EBITDA, which includes corporate expense, of $243 million
in the 2010 quarter.
Financial Position
At June 30, 2010, the Company had approximately $13.3 billion of
indebtedness, including $3.2 billion of borrowings outstanding
under its senior credit facility. The Company has approximately
$1.5 billion in available borrowing capacity under its revolver
and approximately $570 million of invested cash available for
future liquidity needs. The Company repurchased $211 million
principal amount of senior notes with near term maturities during
the second quarter, resulting in cash interest savings of
approximately $5 million.
"We have made tremendous progress in addressing our balance sheet
and liquidity needs by amending and negotiating the extension of
our credit facility, accessing the secured bond market, and in
April successfully issuing $1.15 billion in convertible notes.
These transactions have provided over $2 billion of available
liquidity," said Dan D'Arrigo, MGM Resorts International Executive
Vice President and CFO. "Additionally, our Macau bank refinancing
was an overwhelming success. MGM Macau now has a solid long-term
capital structure and our focus is on advancing our potential IPO
transaction."
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?67de
About MGM MIRAGE
Headquartered in Las Vegas, Nevada, MGM MIRAGE (NYSE: MGM) --
http://www.mgmmirage.com/-- owns and operates 16 properties
located in Nevada, Mississippi and Michigan, and has 50%
investments in four other properties in Nevada, New Jersey,
Illinois and Macau. CityCenter, an urban metropolis on the Las
Vegas Strip scheduled to open in late 2009, is a joint venture
between MGM MIRAGE and Infinity World Development Corp, a
subsidiary of Dubai World. MGM MIRAGE Hospitality has entered
into management agreements for future casino and non-casino
resorts throughout the world.
The Company reported $22.51 billion in total assets, $2.38 billion
in total current liabilities, $3.03 billion in deferred income
taxes, $12.97 billion in long term debt, and $256.83 million other
long term obligation, resulting to a $3.87 billion stockholders'
equity as of Dec. 31, 2009. At September 30, 2009, MGM MIRAGE had
stockholders' equity of $4.29 billion.
* * *
As reported by the Troubled Company Reporter on March 22, 2010,
Moody's Investors Service affirmed MGM MIRAGE's ratings, including
its Caa1 Corporate Family Rating and raised the company's
Speculative Grade Liquidity rating to SGL-3 from SGL-4. The
rating outlook remains stable.
As reported by the TCR on March 11, 2010, Standard & Poor's
Ratings Services affirmed all of its existing ratings on MGM
MIRAGE, including the 'CCC+' corporate credit rating. The rating
outlook is developing. "The 'CCC+ corporate credit rating
reflects MGM MIRAGE's significant debt burden, S&P's expectation
for continued declines in cash flow generation in 2010, and the
company's tight liquidity position," said Standard & Poor's credit
analyst Ben Bubeck.
MICHAEL FAVORS: Case Summary & 13 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Michael A. Favors
Tammy L. Favors
5012 Abbott Avenue
Dallas, TX 75205
Bankruptcy Case No.: 10-35287
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Stacey G. Jernigan
Debtor's Counsel: Eric A. Liepins, Esq.
12770 Coit Rd., Suite 1100
Dallas, TX 75251
Tel: (972) 991-5591
E-mail: eric@ealpc.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Joint Debtors' 13 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/txnb10-35287.pdf
The petition was signed by the Joint Debtors.
NAVISTAR FINANCIAL: Amends Pooling and Servicing Agreement
----------------------------------------------------------
Navistar Financial Securities Corporation entered into Amendment
No. 9 to the Pooling and Servicing Agreement. The PSA Amendment,
among other things:
i) requires that any dealer notes transferred to the Navistar
Financial Dealer Note Master Trust by NFSC be issued by a
dealer that meets certain eligibility criteria specified
therein,
ii) upon satisfaction of certain conditions described in the PSA
Amendment, allows NFSC to designate certain eligible dealers
as a dealer whose dealer notes will no longer be permitted
to be transferred to the Master Trust, and, at NFSC's
election, allows that any dealer notes issued by such dealer
to be removed from the Master Trust and
iii) upon a dealer becoming an ineligible dealer as defined in
the PSA Amendment, NFSC shall not transfer dealer notes
issued by such ineligible dealer to the Master Trust, and
NFSC has the right to remove all of the dealer notes issued
by such ineligible dealer held by the Master Trust.
A full-text copy of the Amended Agreement is available for free at
http://ResearchArchives.com/t/s?67d9
About Navistar International
Navistar International Corporation (NYSE: NAV) --
http://www.Navistar.com/-- is a holding company whose
subsidiaries and affiliates subsidiaries produce International(R)
brand commercial and military trucks, MaxxForce(R) brand diesel
engines, IC Bus(TM) brand school and commercial buses, Monaco RV
brands of recreational vehicles, and Workhorse(R) brand chassis
for motor homes and step vans. It also is a private-label
designer and manufacturer of diesel engines for the pickup truck,
van and SUV markets. The company also provides truck and diesel
engine parts and service. Another affiliate offers financing
services.
At April 30, 2010, the Company had $8.94 billion in total assets
and $10.14 billion in total liabilities, resulting in
$1.21 billion in stockholders' deficit.
Fitch Ratings in March 2010, revised Navistar International's and
Navistar Financial Corp.'s rating outlooks to "positive" from
"negative" and affirmed the companies' long-term Issuer Default
Ratings at 'BB-'. The Outlook revisions are driven by improvement
in the financial profile of NFC following the signing of an
operating agreement with GE Capital and by NAV's financial
performance in the past year. Historically, Fitch had concerns
with NFC's funding, capitalization, and asset quality performance,
but they have been eliminated or reduced with the new agreement
with GECC.
NEXCEN BRANDS: Closes Sale of Franchise Biz to Levine Leichtman
---------------------------------------------------------------
NexCen Brands Inc. closed the sale of its franchise businesses to
Global Franchise Group, LLC an affiliate of Levine Leichtman
Capital Partners. In connection with the closing of the sale
transaction, BTMU Capital Corporation was paid all amounts owing
to BTMUCC pursuant to the terms of an Accord and Satisfaction
Agreement with BTMUCC that was signed on May 13, 2010.
The closing took place following shareholder approval of the
transaction at a Special Meeting of Stockholders held on July 29,
2010. The proposal was approved, with approximately 65% of the
shares outstanding and 90% of shares voted, in favor of the
transaction.
At the Special Meeting, the Company's shareholders also approved
the additional proposals outlined in the Company's June 11, 2010
proxy statement, including adoption of a plan of liquidation for
NexCen and reduction of the number of authorized shares of the
Company's common stock. Based upon the final voting results, the
required majority vote was received on all proposals.
David S. Oros, Chairman of Board of Directors of NexCen, stated,
"We are extremely pleased with the support of our shareholders for
the sale of the Company's assets and the plan of dissolution. We
believe this is the path most likely to provide value to all of
our stakeholders. We appreciate the hard work of our employees
and franchisees as well as the support of our shareholders
throughout this process."
With the sale of the franchise businesses completed, NexCen
expects that it will soon file a certificate of dissolution with
the Secretary of State of Delaware and will proceed with the
process of formally winding down the Company. The Company's Board
of Directors will meet to consider the commencement of the
dissolution process.
As set forth in the June 11, 2010 proxy statement, NexCen
continues to estimate that upon the Company's dissolution, the
cash proceeds ultimately available for distribution to the holders
of NexCen common stock will be between $0.12 and $0.16 per share
of common stock; however, NexCen is unable to predict with
certainty the exact amount, nature and timing of any distributions
to its shareholders.
About NexCen Brands
Based in New York, NexCen Brands, Inc. (PINK SHEETS: NEXC.PK) is a
strategic brand management company with a focus on franchising.
It owns a portfolio of franchise brands that includes two retail
franchise concepts: TAF(TM) and Shoebox New York(R) as well as
five quick service restaurant franchise concepts: Great American
Cookies(R), MaggieMoo's(R), Marble Slab Creamery(R),
Pretzelmaker(R) and Pretzel Time(R). The brands are managed by
NexCen Franchise Management, Inc., a subsidiary of NexCen Brands.
Nexcen Brands reported a net loss of $711,000 on $10.0 million of
total revenues for the three months ended March 31, 2010, compared
with a net loss of $865,000 on $11.9 million of total revenues
during the same period a year earlier.
The Company's balance sheet at March 31, 2010, showed
$100.0 million in total assets and $149.6 million in total
liabilities, for a total stockholders' deficit of $49.6 million.
ODYSSEY PROPERTIES III: Files for Chapter 11 in Florida
-------------------------------------------------------
Odyssey Properties III LLC and its affiliates filed for Chapter 11
protection on Aug. 2 (Bankr. M.D. Fla. Lead Case No. 10-18713).
Odyssey Properties is a Florida real estate company. The Debtor
estimated assets and debts of up to $50 million in its petition.
According to Carla Main at Bloomberg News, the Company said in
court filing that later this month it will ask a bankruptcy judge
for approval of management contracts and the hiring of a chief
restructuring officer.
ODYSSEY PROPERTIES III: Voluntary Chapter 11 Case Summary
---------------------------------------------------------
Debtor: Odyssey Properties III, LLC
500 S. Florida Avenue, Suite 700
Lakeland, FL 33801
Bankruptcy Case No.: 10-18713
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Catherine Peek McEwen
Debtor's Counsel: Edward J. Peterson, III, Esq.
Stichter, Riedel, Blain & Prosser, PA
110 East Madison Street, Suite 200
Tampa, FL 33602
Tel: (813) 229- 0144
Fax: (813) 229-1811
E-mail: epeterson@srbp.com
Estimated Assets: $10,000,001 to $50,000,000
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 Maloney, chief restructuring
officer.
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No. Petition Date
------ -------- -------------
Odyssey (III) DP XVII, LL 10-18715 8/02/10
Odyssey (III) DP (III), LLC 10-18718 8/02/10
GPP - COBB, LLC 10-18719 8/02/10
CRF - Panther IX, LLC 10-18720 8/02/10
Century/AG 10-18721 8/02/10
Century (III) DP III, LLC 10-18723 8/02/10
Odyssey (III) DP XI, LLC 10-18725 8/02/10
Paradise Shoppes at Apollo Beach, LLC 10-18728 8/02/10
Walden Woods III, Ltd. 10-18730 8/02/10
PETER BUCKLIN: Asks for Court Okay to Use Cash Collateral
---------------------------------------------------------
Peter M. Bucklin has asked for authorization from the U.S.
Bankruptcy Court for the District of Oregon to use the cash
collateral securing their obligation to their prepetition lenders.
The Debtor and the Lenders -- Premier West Bank, Intervest-
Mortgage Investment Company, and Cascade Acceptance Corp. -- are
parties to various loan agreements, security agreements, financing
statements, deeds of trust, and other documents, and all
amendments thereto, pursuant to which the Lenders assert they hold
security interests and liens in various items and parcels of real
and personal property of the Debtor.
The approximate balances owed by the Debtor to the Lenders as of
the Petition Date regarding the Commercial Properties are:
1. Eagle Point: Premier West - $3,400,000
2. Los Banos: Intervest - $8,300,000
Cascade - $2,200,000
3. Berryessa: Premier West - $2,400,000
Cascade - $365,000
4. Morning Dove: J.P. Morgan Chase - $212,000
Premier West - $193,000
5. Hwy 62: J.P. Morgan Chase - $238,000 (Duplex)
Premier West - $193,000 (Duplex and
Trailer)
6. Broken Stone: J.P. Morgan Chase - $220,000
Premier West - $267,000
Thomas W. Stilley, Esq., at Sussman Shank LLP, the attorney for
the Debtor, explains that the Debtor needs the money to fund its
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/PETER_BUCKLIN_budget.pdf
To provide adequate protection for Debtor's use of the Lenders'
Cash Collateral, the Lenders' liens will continue in future Rents
from the Commercial Properties as the Rents are received on a
monthly basis and will replace the liens in the prior month's
Rents that are used in the Debtor's operations. In addition,
Debtor will grant the Lenders' security interests in and liens
upon Debtor's personal property and certain real property in which
Lenders do not already have security interests and liens. The
liens and security interests to be granted to the Lenders will be
granted for adequate protection purposes only, and will not
enhance or improve the Lenders' positions.
The Court has set a preliminary hearing for August 9, 2010, at
2:00 p.m., to consider the Debtor's motion for use of cash
collateral.
Eagle Point, Oregon-based Peter M. Bucklin -- dba PMB Development
Co. and The Peter M. and Joan B. Bucklin Revocable Trust -- filed
for Chapter 11 bankruptcy protection on July 23, 2010 (Bankr. D.
Ore. Case No. 10-64467). Thomas W. Stilley, Esq., who has an
office in Portland, Oregon, assists the Debtor in his
restructuring effort. The Debtor estimated its assets and debts
at $10 million to $50 million as of the Petition Date.
PETER BUCKLIN: Gets OK to Hire Sussman Shank as Bankr. Counsel
--------------------------------------------------------------
Peter M. Bucklin sought and obtained authorization from the Hon.
Frank R. Alley of the U.S. Bankruptcy Court for the District of
Oregon to hire Sussman Shank LLP as bankruptcy counsel.
Sussman Shank will perform all of the services necessary and
desirable to the conduct of the Debtor's Chapter 11 case on behalf
of the Debtor, with the representation to be effective as of the
Petition Date.
Sussman Shank will be paid based on the hourly rates of its
personnel. A copy of a document containing the hourly rates is
available for free at:
http://bankrupt.com/misc/PETER_BUCKLIN_billingrates.pdf
Thomas W. Stilley, at Sussman Shank, assured the Court that the
firm is "disinterested" as that term is defined in Section 101(14)
of the Bankruptcy Code.
Eagle Point, Oregon-based Peter M. Bucklin -- dba PMB Development
Co. and The Peter M. and Joan B. Bucklin Revocable Trust -- filed
for Chapter 11 bankruptcy protection on July 23, 2010 (Bankr. D.
Ore. Case No. 10-64467). The Debtor estimated its assets and
debts at $10 million to $50 million as of the Petition Date.
PETER BUCKLIN: Section 341(a) Meeting Scheduled for August 30
-------------------------------------------------------------
The U.S. Trustee for Region 18 will convene a meeting of Peter M.
Bucklin's creditors on August 30, 2010, at 10:30 a.m. The meeting
will be held at U.S. Trustee's Office, Room 1900, 405 E 8th Ave,
Eugene, OR 97401.
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.
Eagle Point, Oregon-based Peter M. Bucklin -- dba PMB Development
Co. and The Peter M. and Joan B. Bucklin Revocable Trust -- filed
for Chapter 11 bankruptcy protection on July 23, 2010 (Bankr. D.
Ore. Case No. 10-64467). Thomas W. Stilley, Esq., who has an
office in Portland, Oregon, assists the Debtor in his
restructuring effort. The Debtor estimated its assets and debts
at $10,000,001 to $50,000,000.
PHH CORPORATION: Fitch Assigns 'BB+' Rating on $250 Mil. Notes
--------------------------------------------------------------
Fitch Ratings expects to assign a rating of 'BB+' to PHH
Corporation's $250 million senior unsecured notes issuance due in
2016. Proceeds from the issuance will be primarily used to repay
a portion of outstanding borrowings under PHH's revolving credit
facility.
Fitch currently rates PHH:
-- Long-term Issuer Default Rating 'BB+;
-- Senior unsecured 'BB+';
-- Short-term IDR 'B';
-- Commercial paper 'B'.
The Rating Outlook is Negative.
The current ratings reflect PHH's improved liquidity, given the
addition of conduit capacity within the fleet leasing segment and
warehouse capacity extension within the mortgage segment, positive
operating performance due to improved margins in both segments,
and adequate capitalization for the current ratings. Ratings also
take into account the short-term and predominantly secured nature
of the funding profile and the inherent volatility in the
mortgage-servicing rights asset which could negatively impact
earnings and capital.
The Negative Rating Outlook reflects the uncertainty surrounding
the new legislative reforms that could affect the company's
mortgage business, expected volatility in the mortgage market
which could have a negative impact on the company's natural hedge
policy, and the risk of higher than expected losses in the
reinsurance business and repurchase activity if economic
conditions worsen.
PHH currently operates in two businesses: mortgage operations and
fleet management services. On June 30, 2010, PHH reported
$8.9 billion in assets.
PHIL TILLEY: Voluntary Chapter 11 Case Summary
----------------------------------------------
Joint Debtors: Phil A. Tilley
Lynn K. Tilley
8531 Rocky Fork Road
Smyrna, TN 37167
Bankruptcy Case No.: 10-08165
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
Middle District of Tennessee (Nashville)
Judge: Keith M Lundin
Debtor's Counsel: Paul E. Jennings, Esq.
Paul E. Jennings Law Offices, P.C.
805 South Church Street, Suite 3
Murfreesboro, TN 37130
Tel: (615) 895-7200
Fax: (615) 895-7294
E-mail: paulejennings@bellsouth.net
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The list of unsecured creditors filed together with their petition
does not contain any entry.
The petition was signed by the Joint Debtors.
PICK & SAVE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Pick & Save, Inc.
West Main Avenue, Carr #29
Bayamon, PR 00960
Bankruptcy Case No.: 10-07005
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Carmen D. Conde Torres, Esq.
254 San Jose Street, 5th Floor
San Juan, PR 00901-1523
Tel: (787) 729-2900
Fax: (787) 729-2203
E-mail: notices@condelaw.com
Estimated Assets: $0 to $50,000
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/prb10-07005.pdf
The petition was signed by Noel Soler, president.
PRORAMA INC: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Prorama, Inc.
P.O. Box 363
Jayuya, PR 00664
Bankruptcy Case No.: 10-06881
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Modesto Bigas Mendez, Esq.
Bigas & Bigas
P.O. Box 7462
Ponce, PR 00732
Tel: (787) 844-1444
E-mail: modesto@coqui.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/prb10-06881.pdf
The petition was signed by Sigfredo Orama, president.
SECURITY BENEFIT: Guggenheim Deal Cues Fitch to Withdraw Ratings
----------------------------------------------------------------
Fitch Ratings has withdrawn the ratings of Security Benefit Life
Insurance Company and its affiliate, First Security Benefit Life
Insurance and Annuity Company of New York.
The withdrawal follows the close of the companies' acquisition by
Guggenheim Partners, LLC, which was announced on August 2. While
Fitch believes the acquisition is a positive from a credit
perspective, SBLIC and FSBLIANY do not participate in the rating
process other than via their public disclosures. Based on Fitch's
criteria for assigning ratings to insurance companies, Fitch has
concluded that information currently available to the agency is
insufficient to maintain these ratings.
Fitch has withdrawn these ratings, which were on Rating Watch
Positive prior to the withdrawal:
Security Benefit Life Insurance Company
-- Insurer Financial Strength 'CCC';
-- Short-term IFS 'C'.
First Security Benefit Life Insurance and Annuity Company of New
York
-- IFS 'CCC'.
SIGMA INDUSTRIES: Gets Creditors' Support for Restructuring
-----------------------------------------------------------
Sigma Industries Inc. said that, in accordance with the Bankruptcy
and Insolvency Act, the restructuring proposals filed on July 16,
2010 by Sigma and its subsidiaries Rene Composite Materials Ltd.
and Transcam Composites Inc. have received the unanimous approval
of its creditors and were also ratified by the Superior Court of
Qu‚bec, which, at the same time, gave the company permission to
reorganize, in the sense accorded to this term in Article 191 of
the Canada Business Corporations Act.
Subject to the regulatory or TSX Venture Exchange approval, the
authorized reorganization would essentially comprise: i)
consolidation of Sigma capital stock already issued and
outstanding, at a ratio of 4 to 1, such that the number of Sigma
common shares in circulation be reduced from 42,899,095 to
approximately 10,724,774; ii) cancellation of all options and
stock purchase warrants outstanding; iii) issuing convertible
debentures to a maximum capital amount of $1,000,000, convertible
at any time within 5 years of issue of the first debentures, in
whole or in part, in Sigma units after consolidation, each unit
consisting of a common share at $0.10 and a warrant permitting the
purchase of one common share of Sigma at $0.10 per share, the
warrants to be exercised no later than the maturity date of the
debentures.
The private investment will be undertaken by Consolidated
Composites Industries Inc., a corporation related to Sigma, whose
senior executives, namely Denis Bertrand, Jean-Fran‡ois Dore and
Bruno Doyon, are directors and shareholders.
"We would like to sincerely thank our suppliers, employees and
financial partners for the unflagging support they have given to
Sigma during these difficult times. This agreement will allow
Sigma and its subsidiaries look to the future with renewed
confidence," said Denis Bertrand, President and CEO of Sigma
Industries.
About Sigma Industries
Sigma Industries Inc. (TSX-V: SIC.V), a leading composite and
metal products manufacturer, has five operating subsidiaries and
employs 350 people. The Company is active in the growing heavy-
duty truck, coach, transit and bus, train and subway, machinery,
agriculture, light forestry, and wind energy market segments.
Sigma sells its products to original equipment manufacturers and
distributors in the United States, Canada and Europe.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contact:
Denis Bertrand
President and Chief Executive Officer
Sigma Industries Inc.
Tel: (418) 484-5282
E-mail: denis.bertrand@sigmaindustries.ca
SPRING RESORT: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Spring Resort, L.L.C.
311 South Stadium Drive
Waxahachie, TX 75165
Bankruptcy Case No.: 10-35357
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Stacey G. Jernigan
Debtor's Counsel: Moses Jun, Esq.
Law Offices of Moses Jun
2639 Walnut Hill Lane, Suite 200
Dallas, TX 75229
Tel: (214) 459-1226
Fax: (214) 459-1227
E-mail: mjun777@yahoo.com
Scheduled Assets: $0 to $50,000
Scheduled Debts: $ 4,859,750
The Company did not file a list of creditors together with its
petition.
The petition was signed by Ha Sook Yang, president.
ST JOHN KNITS: S&P Downgrades Corporate Credit Rating to 'B'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on privately owned, Irvine, Calif.-based St. John Knits
International Inc. to 'B' from 'B+' and removed all its ratings
from CreditWatch, where they were placed with negative
implications on Nov. 13, 2009. The rating outlook is stable.
S&P also withdrew the senior secured debt rating on the company's
term loan as the company replaced it with a new asset-based
revolving credit facility and term loan facility that was not
rated.
The CreditWatch listing had reflected St. John Knits' weakened
credit metrics and S&P's belief that the company might find it
difficult to achieve sufficient improvement that would result in
credit metrics returning to levels that would support the 'B+'
rating. In addition, at the time of the CreditWatch placement,
the company had not refinanced its credit facility which matured
in early fiscal 2010.
Immediately following the downgrade, S&P is withdrawing its
corporate credit rating on the company, at the issuer's request.
The downgrade reflects S&P's opinion that while operating
performance has stabilized at the current level and profitability
should show some further improvement, S&P estimate that credit
metrics will still be at or near the medians for the rating
category and will not improve to previous levels (which were
stronger than the rating) given the high interest rate on the new
term loan and the current weak economy.
In S&P's opinion, St. John Knits has taken steps to reduce its
relatively high fixed-cost structure resulting in better operating
margins and has broaden its product line to attract a wider
customer base. However, S&P believes that the company's operating
performance is still vulnerable as the retail environment remains
fragile. In addition, S&P believes customer concentration is a
risk, as three of the better department stores accounted for about
50% of annual revenues during fiscal 2009.
STEVENS TECHNOLOGY: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Stevens Technology, LLC
5700 East Belknap
Haltom City, TX 76117
Bankruptcy Case No.: 10-45112
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
Northern District of Texas (Ft. Worth)
Judge: D. Michael Lynn
Debtor's Counsel: Robert A. Simon, Esq.
Barlow Garsek & Simon, LLP
3815 Lisbon Street
Fort Worth, TX 76107
Tel: (817) 731-4500
Fax: (817) 731-6200
E-mail: rsimon@bgsfirm.com
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/txnb10-45112.pdf
The petition was signed by Richard Stevens, president.
STILLWATER HOLDINGS: Case Summary & 9 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Stillwater Holdings LLC
P.O. Box 466
East Amherst, NY 14051
Bankruptcy Case No.: 10-13378
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
Western District of New York (Buffalo)
Judge: Michael J. Kaplan
Debtor's Counsel: Raymond C. Stilwell, Esq.
The Law Center Building
17 Beresford Court
Buffalo, NY 14221
Tel: (716) 634-8307
E-mail: rcstilwell@roadrunner.com
Scheduled Assets: $0
Estimated Debts: $2,671,419
A copy of the Company's list of 9 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/nywb10-13378.pdf
The petition was signed by William Goodhue, managing member.
STRIKEFORCE TECHNOLOGIES: Appoints Phillip Blocker as CFO
---------------------------------------------------------
StrikeForce Technologies, Inc., appointed Phillip E. Blocker as
its Chief Financial Officer on July 31, 2010.
According to the Company, Mr. Blocker worked for Robert Half
Management Resources since October 2004 as financial consultant
fulfilling $10MM - $100MM clients' interim CFO/Controller
requirements in manufacturing, pharmaceuticals, software, and
telecommunications.
He also worked for ASKL Enterprises, Inc. from April 2002 until
September 2004 as financial consultant fulfilling $5MM - $50MM
clients' interim CFO/Project Manager requirements in
manufacturing, retail and financial services.
He obtained a Bachelor of Arts degree in June 1979 from Queens
College of the City University of New York, and is a certified
public accountant.
In its March 2010 quarterly report filed on Form 10-Q with the
Securities and Exchange Commission, the Company noted that it had
an accumulated deficit of $20.717 million and a working capital
deficiency of $7.657 million at March 31, 2010 and had a net loss
and cash used in operations of $557,493 and $124,973 for the three
months ended March 31, 2010, respectively.
The Company said it is attempting to generate sufficient revenues
and improve gross margins by a revised sales strategy that was
implemented in the second quarter of 2009. Management also has
raised funds through convertible debt instruments and the sale of
equity to alleviate the working capital deficiency. The Company
is seeking to locate the additional funding necessary to continue
to expand and enhance its growth; however, there can be no
assurance that it will be able to increase revenues or raise
additional capital. The Company said it is in negotiations with
other investors, but the success of such negotiations cannot be
assured.
"In the third quarter of 2009, we executed contracts with two
international clients for our ProtectID(R) and GuardedID(R)
products, respectively. We believe these contracts will provide a
continual steady increase to our revenues. Until we increase our
customer base and realize the increased revenues from the recently
signed contracts, we are assuming that we will continue as a going
concern," the Company said.
Management expects cash flows from operating activities to improve
by the third quarter of 2010, primarily as a result of certain
contracts, however no assurance can be given that such contracts
will materialize in revenue sufficient to meet operating expenses
and fund future operations.
About StrikeForce
Edison, N.J.-based StrikeForce Technologies, Inc. a software
development and services company that offers a suite of integrated
computer network security products using proprietary technology.
The Company's balance sheet at March 31, 2010, showed $1.1 million
in total assets and $9.7 million in total liabilities, for a
stockholder's deficit of $8.6 million.
SUMMIT SOUTH: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Summit South, LLC
777 Cleveland Ave.
Atlanta, GA 30315
Bankruptcy Case No.: 10-81868
Chapter 11 Petition Date: July 30, 2010
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: Stephen H. Robinson
The Law Offices of Stephen Robinson
Suite 2200, 260 Peachtree Street
Atlanta, GA 30303
Tel: (404) 527-5157
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Paul D'Agnese, president, sole member.
TENET HEALTHCARE: Posts $35 Million Net Income for June 30 Quarter
------------------------------------------------------------------
Tenet Healthcare Corporation filed its quarterly report on Form
10-Q, showing net income of $35.0 million on $2.3 billion of net
operating revenues for the three months ended June 30, 2010,
compared with a net loss of $14.0 million net loss on $2.2 billion
net operating revenues for the same period a year ago.
The Company's balance sheet at June 30, 2010, showed $7.8 billion
in total assets and $7.8 billion in total liabilities, resulting
in $826.0 million in total stockholders' equity.
Second quarter 2010 performance was driven by solid revenue growth
and incremental cost efficiencies which more than offset the
impact from soft volumes. Admissions and outpatient visits
declined by 2.0 percent and 0.8 percent, respectively. Adjusted
admissions declined by 0.6 percent. Commercial managed care
admissions and outpatient visits declined by 7.2 percent and 5.4
percent, respectively. Higher commercial acuity, increased unit
revenues, and improved commercial payer mix produced growth in
commercial managed care revenues of 2.0 percent. This growth in
commercial revenues contributed to an aggregate increase in net
operating revenues of $74 million, or 3.3 percent. This increase
in revenues was net of unfavorable adjustments of $28 million for
the estimated impact on our Medicare disproportionate share
hospital payments as a result of estimated lower Supplemental
Security Income percentages at certain of our hospitals and the
portion of bad debt that will not be reimbursed by Medicare.
Total controllable operating expense increased by $46 million, or
2.5 percent. This increase included a 2.1 percent increase in
salaries, wages and benefits, primarily the result of salary and
wage increases awarded to our broad employee population on October
1, 2009. Supplies expense was unchanged and other operating
expense increased by 5.5 percent.
Bad debt expense increased by $6 million, or 3.6 percent. There
was no change in the ratio of bad debt expense to net operating
revenues which remained at 7.5 percent. Items that contributed to
the increase in bad debt expense included increases of 1.5 percent
and 2.4 percent in uninsured admissions and outpatient visits,
respectively, and a 130 basis point decline in the self-pay
collection rate to 29.5 percent. These adverse factors were
partially offset by a $28 million favorable adjustment for
Medicare bad debts that will be claimed on the Company's cost
reports. The impact of providing uncompensated care, which
includes charity as well as
uninsured patients, was mitigated by a decline in charity volumes.
This mitigating effect is evident in our estimated costs of
providing care to charity and self-pay patients for the second
quarters of 2010 and 2009, which were $126 million and $121
million, respectively.
Adjusted net cash provided by operating activities from continuing
operations was $198 million and adjusted free cash flow from
continuing operations was $121 million, reflecting capital
expenditures of $77 million. Cash and cash equivalents were $711
million at June 30, 2010, an increase of $122 million from March
31, 2010. In 2009's second quarter, adjusted net cash provided
by operating activities was $202 million. Net cash provided by
operating activities was $191 million in the second quarter of
2010 compared to $170 million in the second quarter of 2009.
A full-text copy of the Company's earnings release is available
for fee at http://ResearchArchives.com/t/s?67d4
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?67d3
About Tenet Healthcare
Dallas, Texas-based Tenet Healthcare Corporation (NYSE: THC) --
http://www.tenethealth.com/-- is a health care services company
whose subsidiaries and affiliates own and operate acute care
hospitals, ambulatory surgery centers and diagnostic imaging
centers.
* * *
As reported by the TCR on Aug. 5, 2010, Moody's Investors Service
affirmed its "B2" corporate family rating for Tenet. The 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. 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.
S&P's corporate credit rating on Tenet is 'B' and remains
unchanged. The ratings agency noted that while the Company has
experience recent successes to date of a multiyear turnaround
effort, the Company has a still-weak business risk profile and
high financial leverage.
TEXAS RANGERS: Greenberg-Ryan Team's $590-Mil. Bid Wins
-------------------------------------------------------
As widely reported, the group led by Nolan Ryan, the Texas
Rangers' team president, and Charles Greenberg, a lawyer who owns
two minor-league teams, won the bidding for the club's baseball
team. The Ryan group outbid Mark Cuban, owner of the Dallas
Mavericks basketball team at the August 4 auction.
According to Bloomberg, the Bankruptcy Court has approved the
results of the auction.
The New York Times' Richard Sandomir reports that the auction,
slated for Aug. 4, took nearly 16 hours, concluding early morning
on Thursday.
According to the NY Times, the Greenberg-Ryan team will acquire
the Rangers for $590 million, which consists of $385 million in
cash and assumption of $208 million in liabilities, subject to $3
million in miscellaneous deductions.
The Greenberg-Ryan tandem beat a partnership formed within the
past week by Mark Cuban, the outspoken owner of the Dallas
Mavericks, and Jim Crane, a Houston investor who made a losing
play for the Astros in 2008. According to Bloomberg News, Mr.
Cuban and his partner, Houston businessman Jim Crane, made several
bids for the team during the auction, which ended about 12:45 a.m.
Fort Worth time. Mr. Cuban's final bid, Bloomberg relates, was
$390 million, which adjusted downward to $373.2 million, mostly to
account for a breakup fee that would have been paid to the
Greenberg-Ryan group.
"It's a relief just to know that we got it done," the NY Times
quotes Mr. Ryan as saying. Regarding Mr. Cuban and Mr. Crane, he
added: "They did their due diligence, so I knew they were serious
about it."
According to the NY Times, Mr. Cuban said afterward: "We set the
limit at where we would go and we hit the limit."
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.
TFF INCORPORATED: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: TFF Incorporated
1381 Red Oak Trail
Fairview, TX 75069
Bankruptcy Case No.: 10-42577
Chapter 11 Petition Date: August 2, 2010
Court: United States Bankruptcy Court
Eastern District of Texas (Sherman)
Judge: Brenda T. Rhoades
Debtor's Counsel: Joyce W. Lindauer, Esq.
8140 Walnut Hill Lane, Suite 301
Dallas, TX 75231
Tel: (972) 503-4033
Fax: (972) 503-4034
E-mail: courts@joycelindauer.com
Estimated Assets: $0 to $50,000
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 Paul Tanner, Jr., treasurer.
THERMADYNE HOLDINGS: Moody's Gives Pos. Outlook; Keeps B3 Rating
----------------------------------------------------------------
Moody's Investors Service has changed the ratings outlook of
Thermadyne Holdings Corporation to positive from negative. At the
same time, Moody's affirmed the B3 corporate family rating and
Caa1 rating on the $172 million senior subordinated notes due
2014.
The change in ratings outlook to positive follows THMD's
retirement of its second lien term loan, representing roughly 10%
of its balance sheet debt, as well as five quarters of sequential
revenue growth. While revenues remain well below historical peak
levels, THMD's focused cost reductions over the past year have
supported a return to profitability levels and financial leverage
profile last seen in mid-2008 prior to the onset of the global
economic downturn. The positive outlook incorporates Moody's
expectation that margins will remain strong over the near term as
THMD leverages its improved overhead cost structure and executes
its ongoing North American manufacturing upgrade. Further, the
positive outlook incorporates Moody's expectation that cash flows
generated over the next twelve months will be employed in an
effort to reduce THMD's balance sheet debt levels.
A ratings upgrade will likely be dependent on THMD's ability to
maintain its cost containment strategy and current margin levels
over the next twelve months, a period when Moody's expects THMD's
revenue growth trends to stabilize. Moody's could potentially
upgrade the ratings over the next twelve months if THMD were able
to demonstrate that EBITDA margins were sustainable above 15% and
that management remained committed, in Moody's view, to reducing
debt and maintaining an adequate liquidity profile.
These ratings were affirmed:
* B3 corporate family rating
* B3 probability of default rating; and
* $172 million senior subordinated notes due 2014 at Caa1 (LGD5,
71% -- revised from LGD4, 69%).
The last rating action on THMD was the January 28, 2009, change in
rating outlook to negative from stable.
THMD, headquartered in Chesterfield, Missouri, is a global
manufacturer of cutting and welding equipment, including fuel gas
and plasma torches, arc accessories and related consumable parts.
Its products are used by a wide variety of manufacturing and
construction operations to cut, join and reinforce steel, aluminum
and other metals. For the twelve months ending June 30, 2010,
sales totaled approximately $385 million.
TRIBUNE CO: Court Pushes Back Confirmation Hearing to October 4
---------------------------------------------------------------
Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware pushes back to October 4, 2010, the hearing to
consider confirmation of the Plan of Reorganization filed by
Tribune Company and its debtor affiliates.
The order came as a result of the Debtors' request to amend the
previously approved discovery and scheduling order for plan
confirmation entered by the Court on May 13, 2010.
Other Plan-related dates were also pushed back and set by the
Court:
* The Voting Deadline is extended so that any properly
executed and completed original Ballots or Master Ballots
that are received by the Voting Agent on or prior to
August 20, 2010, will be counted;
* The Plan Confirmation Objection Deadline is extended to
August 27, 2010, at 4:00 p.m.;
* The deadline for the Voting Agent to file the results of its
tabulation of votes to accept or reject the Plan is extended
to August 27, 2010;
* Responses to any objection to confirmation of the Plan will
be filed on or before September 8, 2010, and the Debtors
will also file with the Court their proposed findings of
fact and conclusions of law and their memorandum in support
of confirmation on or before that date;
* The confirmation hearing will commence on October 4, 2010,
at 10:00 a.m.;
* The deadline for all parties-in-interest to further comply
with the requirements of Rule 7026 of the Federal Rules of
Bankruptcy Procedure and Rule 26(a)(2)(B) of the Federal
Rule of Civil Procedure in respect to experts is extended to
August 30, 2010;
* Expert depositions may commence on or after September 7,
2010; and
* The Joint Pretrial Memorandum, along with any other
documents required by Chambers Procedures for Judge Carey,
will be filed with the Court by September 22, 2010.
The Debtors requested for the amendment of the discovery and
scheduling order in line with the recent completion and filing of
a report prepared by the Court-appointed examiner in their
bankruptcy cases.
The Debtors stated that, given the voluminous report filed by the
Examiner, the potential implications of the Examiner's
conclusions, and the delay in the parties' obtaining the
unredacted version of the Examiner report, the parties-in-interest
in the bankruptcy cases clearly need additional time to analyze
and meaningfully review the materials and incorporate them into a
written report reflecting their considered and expert opinions.
Therefore, the Debtors asked the Court to amend the Scheduling
Order so that the parties are required to comply with Rule 7026
and Rule 26(a)(2) of the Federal Rules of Bankruptcy Procedure by
August 11, 2010, with respect to proposed expert witnesses and to
permit expert depositions to commence on or after August 13, 2010.
Wells Fargo Bank, N.A., as successor administrative agent under a
$1.6 billion Senior Unsecured Interim Loan Agreement dated as of
December 20, 2007, also lodged a similar extension request.
Specially, Wells Fargo asked the Court to (a) continue the
August 30, 2010 hearing on the confirmation of the Debtors'
proposed Plan of Reorganization for a period to not less than 90
days, (b) to continue to confirmation the August 9, 2010 hearing
on the Motion of the Debtors for an order authorizing the Debtors
to implement a Management Incentive Plan for 2010, and (c) for
corresponding adjustments to the pre-confirmation hearing
discovery and briefing schedule.
Wells Fargo asserted that the confirmation schedule is infeasible
and should be extended to allow the parties sufficient time to
properly and reasonably complete discovery and to assess the
myriad conclusions and findings in the just released Examiner's
Report.
Amended Plan and Disclosure Statement
Tribune Company and its debtor affiliates filed with the U.S.
Bankruptcy Court for the District of Delaware a further Amended
Joint Plan of Reorganization on July 29, 2010.
A full-text copy of the further Amended Plan is available for free
at http://bankrupt.com/misc/Tribune_AmendedPlan729.pdf
The further Amended Plan contains these additional exhibits and
appendices:
* New Warrant Agreement. The Debtors propose to issue warrants
to purchase Class A Common Stock or Class B Common Stock, at
the Warrant holders' election. A full-text copy of the New
Warrant Agreement is available for free at:
http://bankrupt.com/misc/Tribune_NewWarrantAgmt.pdf
* Directors and Managers of Reorganized Debtors other than
Reorganized Tribune. This exhibit contains information with
respect to the identity of the proposed directors and
officers of each of the Reorganized Debtors other than
Reorganized Tribune. The exhibit is available for free at:
http://bankrupt.com/misc/Tribune_Directors&Mgrs.pdf
* Terms of New Senior Secured Term Loan Agreement. A loan
agreement among the Reorganized Tribune, as borrower, the
other Reorganized Debtors and the U.S. Subsidiary Non-Debtors
as provided in the Plan, as guarantors, the administrative
agent, and the Holders of Claims entitled to receive the New
Senior Secured Term Loan under the Plan. A full-text copy of
the Agreement is available for free at:
http://bankrupt.com/misc/Tribune_TermLoanAgmt.pdf
* Filed Subsidiary Debtors. This appendix contains a list of
the 110 Debtors, which filed for bankruptcy protection on
December 8, 2008. The appendix is available for free at:
http://bankrupt.com/misc/Tribune_SubsidiaryDebtors.pdf
* Subsidiary Non-Debtors. This appendix contains a list of
subsidiaries of Tribune, which did not file for bankruptcy
protection. The appendix is available for free at:
http://bankrupt.com/misc/Tribune_SubsidiaryNonDebtors.pdf
* Collective Bargaining Agreements. This appendix contains
list of Collective Bargaining Agreements entered into by The
Baltimore Sun Company, Chicago Tribune Company, KTLA, Inc.,
Los Angeles Times Communications LLC, The Morning Call, Inc.,
WGN Continental Broadcasting Company, Tribune Television
Company, and WPIX, Inc. A list of the CBAs is available for
free at http://bankrupt.com/misc/Tribune_CBAs.pdf
* Supplemental list of executory contracts and unexpired leases
to be rejected, available for free at:
http://bankrupt.com/misc/Tribune_Ex6.3RejectedContracts.pdf
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Examiner Releases Unredacted Copy of Report
-------------------------------------------------------
Kenneth N. Klee filed with the Bankruptcy Court an unredacted copy
of his report on August 3, 2010. The public disclosure of the
entire Report is in accordance with Judge Kevin J. Carey of the
U.S. Bankruptcy Court's directives.
The Report was filed in four volumes:
-- Volume One is a summary of principal conclusions, overview
and conduct of the examinations, and factual background. A
full-text unredacted copy of Volume One is available for
free at:
http://bankrupt.com/misc/Tribune_UnreVolume1.pdf
-- Volume Two contains the findings and conclusions concerning
Question One -- whether there are any potential claims,
causes of action, and defenses that can be asserted with
respect to the leveraged buy-out of Tribune that occurred
in 2007. A full-text unredacted copy of Volume Two is
available for free at:
http://bankrupt.com/misc/Tribune_UnreVolume2.pdf
-- Volume Three contains the findings and conclusions
concerning Questions Two and Three -- whether Wilmington
Trust violated the automatic stay by filing Adversary
Proceeding No. 10-50732 and whether Wilmington Trust
violated confidentiality as asserted by JPMorgan. A
full-text unredacted copy of Volume Three is available for
free at:
http://bankrupt.com/misc/Tribune_UnreVolume3.pdf
-- Volume Four is the Glossary of defined terms. A full-text
unredacted copy of Volume Four is available for free at:
http://bankrupt.com/misc/Tribune_UnreVolume4.pdf
In an order dated August 3, 2010, Judge Carey directed the
Examiner to promptly file with the Court his entire report without
the exhibits and transcripts. In lieu of filing the Exhibits and
Transcripts with the Court Clerk, Judge Carey directed the
Examiner to file a notice informing parties-in-interest of the
posting of the Report, Exhibits and Transcripts with Epiq
Bankruptcy Solutions, LLC.
Judge Carey further ordered that:
(a) the Examiner promptly provide Epiq with electronic access
to the Report, the Exhibits and Transcripts;
(b) Epiq electronically post the Report, the Exhibits and
Transcripts to its web site dedicated to the Debtors'
bankruptcy cases;
(c) once Epiq has publicly posted the Report, the Exhibits and
Transcripts, the Examiner will serve and file an
appropriate notice informing parties-in-interest of the
posting of the Reports, Exhibits and Transcripts with Epiq
and instructions on how to access them.
The Judge also approved the Examiner's filing of the entire Report
on July 26, 2010, under seal.
Judge Carey held that any remaining claims of confidentiality as
to the Report, the Exhibits and the Transcripts, to the extent not
resolved, are overruled.
In a separate order, Judge Carey authorized the disclosure of the
Report, Exhibits and Transcripts to the parties and interviewees
pursuant to the terms of the Document Depository Order, as
requested by the Debtors. All objections to the Motion are
overruled.
Judge Carey directed the Examiner to furnish access to each member
of the Official Committee of Unsecured Creditors who has signed
the acknowledgment attached to the Document Depository Order, the
Interviewees, and the Office of the U.S. Trustee to the Report,
the Exhibits, and the transcripts on a Secure web site, provided
that before receiving access, counsel for each Party and
Interviewee furnishes to the Examiner's counsel the name and the
e-mail address of the individual on behalf of that Party and
Interviewee who will be entitled to access the Report, the
Exhibit, and the Transcripts.
The Court held that the transmittal of that communication to the
Examiner will constitute a reaffirmation that the Party,
Interviewee, and their respective counsel are subject to the
Document Depository Order or other order of the Court.
The Examiner and his advisors will be entitled to rely on the
authorization in connection with furnishing of access to the
Report, the Exhibits, and the Transcripts.
Prior to the entry of the Court's order and in accordance with the
Court's directives, the Debtors delivered to the Court a revised
form of order which provides the approval of the Motion.
Aurelius Supports Public
Disclosure of Report
Aurelius Capital Management, LP, manager of funds that are
beneficial owners of certain bonds issued by the Debtors, requests
that the Court not only authorizes the public filing of the
unredacted Report but also extends the voting and objection
deadlines by 30 days each. Relatedly, Aurelius Capital requests
that the May 17, 2010, Record Date should be reset to August 2,
2010, as claims continue to be actively traded.
According to Aurelius, the entire Report should be made publicly
available because:
(1) the Examiner has indicated that the redacted Report
severely impairs the substance and quality of the Report,
and renders it of little value to the reader;
(2) it is at a severe informational disadvantage because
several parties now possess full access to the Report
based on the Court's order approving motion to authorize
the disclosure of the Examiner's Report pursuant to the
terms of the Document Depository Order;
(3) the order approving the Work and Expense Plan and
Modifying Examiner Order unequivocally states that the
parties will not assert attorney-client privilege,
attorney work product protection, or any other applicable
privilege, protection or immunity with respect to the
specific documents or information so disclosed to the
Examiner or incorporated in the Report; and
(4) both the Bankruptcy Code and public policy strongly
militate in favor of public disclosure of the Report.
Bank of America Resolves Confidentiality Issues
In a statement, Bank of America N.A. informs the Court that it has
resolved all issues with the Examiner regarding confidentiality.
While Bank of America disagrees with some of the Examiner's
conclusions regarding the circumstances surrounding the
prepetition leveraged buy-out, it agrees that the release of the
Report in its entirety is appropriate.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: IRS Seeks Denial of Plan of Reorganization
------------------------------------------------------
The United States, on behalf of the Internal Revenue Service, the
Commonwealth of Pennsylvania, Department of Revenue, the State of
Michigan, Department of Treasury, and the Missouri Department of
Revenue, ask the Court to deny confirmation of the Debtors'
Amended Joint Plan of Reorganization.
(A) Internal Revenue Service
The IRS objects to the provisions of the Plan regarding payment of
Priority Tax Claims because it fails to provide for full payment
of its Priority Tax Claim in monthly or quarterly distributions
within five years of the Petition Date.
The IRS asserts that as a priority claimant, it is entitled to
some degree of financial certitude that its claim will be paid
promptly and in full under the plan of reorganization.
The IRS further objects to the provisions of the Plan:
(a) regarding payment of Priority Tax Claims because the Plan
calls for any interest on deferred tax payments to
compound annually, whereas applicable non-bankruptcy law,
which governs the rate of interest, requires that the
interest compound daily;
(b) concerning releases because it would preemptively bar it,
in violation of the Anti-Injunction and Declaratory
Judgment Acts, from asserting valid claims against any
Released Party, including but not limited to claim for
excise taxes resulting from the leveraged buyout
transaction;
(c) to the extent they would bar it from assessing and
collecting taxes resulting from any taxable transactions
that occurred prior to the Petition Date but did not
become assessable until after the Petition date;
(d) to the extent it would deprive it of the right
to interest on taxes entitled to administrative priority,
as it has the right to receive underpayment interest on
those taxes to the extent they are not timely paid; and
(e) which fail to preserve its setoff and recoupment rights.
(B) Pennsylvania Revenue Department
The Commonwealth of Pennsylvania, Department of Revenue, asserts
that Amended Plan fails to acknowledge and provide for retention
of its prepetition liens. The Commonwealth of Pennsylvania
asserts that although the Plan provides for interest on priority
tax claims, it is unclear whether its priority tax claims will be
receiving its statutory interest in accordance with Section 1129
of the Bankruptcy Code.
Moreover, the Commonwealth of Pennsylvania maintains, the Plan
fails to provide that its tax debts are not discharged until paid
in full and that its tax liens remain in effect until the
underlying tax claims are paid in full.
(C) Michigan Department of Treasury
The State of Michigan, Department of Treasury, asserts that the
Debtors failed to file postpetition Michigan Business tax returns
for the 2008 and 2009 tax years. It adds that the Debtors have
failed to remit the taxes, penalties and interest due for the
State for those tax years.
According to the State of Michigan, the Debtors' failure to remit
postpetition tax returns and pay postpetition tax liabilities due
the State constitute grounds for conversion or dismissal under
Section 1112(b)(4)(I) of the Bankruptcy Code.
(D) Missouri Department of Revenue
The Missouri Department of Revenue has filed a priority tax claims
totaling $4,175 for 2006 and 2007 corporate income tax liability.
The Missouri Department of Revenue avers that the terms of the
Plan lack specificity regarding payment of the Priority Tax
Claims, thus, would be extremely difficult to enforce in the event
of a default in plan payments.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRW AUTOMOTIVE: Moody's Raises Corporate Family Rating to 'B1'
--------------------------------------------------------------
Moody's Investors Service raised TRW Automotive, Inc.'s Corporate
Family and Probability of Default ratings to B1 from B2. Moody's
also raised the ratings of the senior secured credit facilities to
Ba1 from Ba2, and raised the ratings for the guaranteed senior
unsecured notes to B2 from B3. The Speculative Grade Liquidity
Rating also was affirmed at SGL-2. The rating outlook is
positive.
The upgrade of TRW's Corporate Family Rating to B1 reflects the
company's strong operating performance in the first half of 2010
and the expectation that it will continue to benefit from recovery
in the automotive industry even though normal seasonal trends and
sluggishness in European markets will temper the pace of financial
improvement in the second half of the year. The company's
performance in the first half of 2010 was supported by recovering
consumer demand in North America, automotive dealer inventory
restocking, and cost structure improvement actions taken in the
recent years. For the first six months of 2010, the company's
reported operating profit of $622 million demonstrated a sharp
improvement from the $81 million loss recorded in the prior year,
and LTM EBIT/Interest (including Moody's standard adjustments) was
strong at about 3.2x. Favorable business conditions have also
supported TRW's free cash flow generation in the first half of
2010 facilitating debt paydowns, with reported debt of about
$2.0 billion at July 2, 2010, down from over $2.4 billion at the
prior year end.
TRW's established position as an important supplier to the
automotive industry, with key technologies in safety products, and
a sound level of geographic, customer, and product diversification
is expected to support the company's competitive position over the
long-term. As auto demand strengthens, the company should enjoy
favorable revenue trends and, in conjunction with a more lean cost
structure post restructuring actions taken over the last several
years, earnings and cash flow generation should show continued
strength. Yet, industry seasonality, expected softness in Europe,
and the impact of recent currency fluctuations is expected to
soften the pace of this improvement in the second half of 2010.
Moody's expects European automobile registrations to weaken in the
second half of 2010 as the benefits of 2009 government sponsored
scrappage programs will not be repeated. Although this will cause
some headwinds for TRW's operating results, Moody's believes that
the company will sustain operating metrics supportive of the B1
rating.
The positive outlook considers that even with the challenges of
recovering global economies TRW's credit metrics over the
intermediate term should continue to improve with growth in global
automotive production expected in 2011. Moreover, Moody's
believes that TRW's improved cost structure should continue to
support the company's operating performance.
TRW's is expected to continue to operate with a good liquidity
profile over the next twelve months reflected by the rating of
SGL-2. As of July 2, 2010 cash and cash equivalent balances were
$767 million. The company's free cash flow over the next twelve
months is expected to be modestly positive inclusive of a normal
seasonal cash burn during the first quarter of 2011. Improved
operating performance will also support higher levels of capital
expenditures. TRW's liquidity position also is supported by a
$1.256 billion revolving credit facility. As of July 2, 2010, the
revolving credit facility was unfunded with $55 million of issued
letters of credit. The majority of the committed facility is
expected to remain available over the next twelve months providing
ample funding capacity for the company's needs. The financial
covenant cushions over the near-term are expected to benefit from
the company's recent strong quarterly performance allowing TRW
full access to the revolver availability. Alternative liquidity
arrangements will continue to be limited by the current bank liens
over substantially all of the company's domestic assets and lien
baskets under the unsecured notes.
Ratings raised:
* Corporate Family Rating, to B1 from B2;
* Probability of Default Rating, to B1 from B2;
* $1.256 billion combined senior secured domestic and global
revolving credit facilities, to Ba1 (LGD1, 7%) from Ba2 (LGD1,
8%);
* $225 million senior secured term loan A2, to Ba1 (LGD1, 7%) from
Ba2 (LGD1, 8%);
* $500 million senior unsecured notes due 2014, to B2 (LGD4 60%)
from B3 (LGD4, 61%);
* EUR275 million senior unsecured notes due 2014, to B2 (LGD4 60%)
from B3 (LGD4, 61%);
* $600 million senior unsecured notes due 2017, to B2 (LGD4 60%)
from B3 (LGD4, 61%);
* $250 million senior unsecured notes due 2017, to B2 (LGD4 60%)
from B3 (LGD4, 61%);
Ratings affirmed:
* Speculative Grade Liquidity Rating, at SGL-2
The $259 million of exchangeable notes are not rated by Moody's.
The last rating action was on March 4, 2010 when TRW's Corporate
Family Rating was raised to B2 and the rating outlook changed to
positive.
Future events that have the potential to improve TRW's ratings
include: further improvement in production levels in the
automotive markets and improved operating margins resulting from
new business wins or productivity improvements. Consideration for
a higher ratings could arise if these factors were to lead to EBIT
margins approaching the high single digits, and future quarterly
EBIT/Interest coverage consistently above 2.3x while maintaining
adequate liquidity.
Consideration for downward outlook or rating migration would arise
if industry conditions were to deteriorate without sufficient
offsetting restructuring actions or savings by the company, or if
TRW is unable to maintain adequate liquidity levels to operate
through a prolonged industry downturn.
TRW Automotive, Inc., headquartered in Livonia, MI, is among the
world's largest and most diversified suppliers of automotive
systems, modules, and components to global vehicle manufacturers
and related aftermarket. The company has four operating segments:
Chassis Systems, Occupant Safety Systems, Automotive Components,
and Electronics. Its primary business lines encompass the design,
manufacture, and sale of active and passive safety related
products. Revenues in 2009 were approximately $11.6 billion.
UAL CORPORATION: Settles Lawsuit Relating to Continental Merger
---------------------------------------------------------------
To recall, on May 2, 2010, UAL Corporation, Continental Airlines
Inc. and JT Merger Sub Inc. entered into an Agreement and Plan of
Merger, providing for a business combination of Continental and
UAL.
Following announcement of the Merger Agreement on May 3, 2010,
three class action lawsuits were filed against Continental,
members of Continental's board of directors and UAL in the Texas
District Court for Harris County. The lawsuits purport to
represent a class of Continental stockholders opposed to the terms
of the Merger Agreement. The lawsuits make virtually identical
allegations that the consideration to be received by Continental's
stockholders in the Merger is inadequate and that the members of
Continental's board of directors breached their fiduciary duties,
by among other things, approving the Merger at an inadequate price
under circumstances involving certain conflicts of interest.
The lawsuits also make virtually identical allegations that
Continental and UAL aided and abetted the Continental board of
directors in the breach of its fiduciary duties to Continental's
stockholders. Each lawsuit seeks injunctive relief declaring that
the Merger Agreement was in breach of the Continental directors'
fiduciary duties, enjoining Continental and UAL from proceeding
with the Merger unless Continental implements procedures to obtain
the highest possible price for its stockholders, directing the
Continental board of directors to exercise its fiduciary duties in
the best interest of Continental's stockholders and rescinding the
Merger Agreement. All three lawsuits have been consolidated before
a single judge.
On July 30, 2010, plaintiffs in the Consolidated Action filed an
amended and consolidated petition. On August 1, 2010, the parties
to the Consolidated Action reached an agreement in principle
regarding settlement of the Consolidated Action. Under the
Settlement, the Consolidated Action will be dismissed with
prejudice on the merits and all defendants will be released from
any and all claims relating to, among other things, the Merger and
any disclosures made in connection therewith. The Settlement is
subject to customary conditions, including consummation of the
Merger, completion of certain confirmatory discovery, class
certification, and final approval by the District Court.
In exchange for that release, UAL and Continental have provided
additional disclosures requested by plaintiffs in the Consolidated
Action related to, among other things, the negotiations between
Continental and UAL that resulted in the execution of the Merger
Agreement, the method by which the exchange ratio was arrived at,
the procedures used by UAL's and Continental's financial advisors
in performing their financial analyses and certain investment
banking fees paid to those advisors by UAL and Continental over
the past two years.
The Settlement will not affect any provision of the Merger
Agreement or the form or amount of the consideration to be
received by Continental stockholders in the Merger.
The defendants have denied and continue to deny any wrongdoing or
liability with respect to all claims, events, and transactions
complained of in the aforementioned litigations or that they have
engaged in any wrongdoing. The defendants have entered into the
Settlement to eliminate the uncertainty, burden, risk, expense,
and distraction of further litigation. The foregoing description
of the Settlement does not purport to be complete.
On June 29, 2010, several purported current and future purchasers
of airline tickets filed an antitrust lawsuit in the U.S. District
Court for the Northern District of California against Continental,
as well as UAL and United Air Lines, Inc., in connection with the
Merger. The plaintiffs allege, among other things, that
Continental and UAL are substantial competitors on routes operated
in the United States and that, if the Merger is consummated, they
will experience higher ticket prices, decreased aircraft capacity,
and diminished airline services.
The plaintiffs claim that the Merger, if consummated, would
substantially lessen competition or create a monopoly in the
transportation of airline passengers in the United States, and the
transportation of airline passengers to and from the United States
on international flights, in violation of Section 7 of the Clayton
Act. Plaintiffs seek a preliminary and permanent injunction to
prohibit the Merger, as well as recovery of costs and attorneys'
fees. The Settlement does not apply to this action. UAL and
Continental believe the plaintiffs' claims are without merit and
intend to defend this lawsuit vigorously.
About UAL Corporation
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest air
carrier. The airline flies to Brazil, Korea and Germany.
The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts. Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors. Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006. The
Company emerged from bankruptcy on Feb. 1, 2006.
Reorganized UAL Corp. carries a 'Caa1' probability of default
rating from Moody's, 'B-' long term foreign issuer credit rating
from Standard & Poor's, and 'CCC' long term issuer default rating
from Fitch.
At June 30, 2010, UAL had $20.134 billion in total assets against
total current liabilities of $8.573 billion, long-term debt of
$6.281 billion, long-term obligations under capital leases of
$1.01 billion, and other liabilities and deferred credits of
$7.022 billion, resulting in stockholders' deficit of
$2.756 billion.
About Continental Airlines
Continental Airlines is the world's fifth largest airline.
Continental, together with Continental Express and Continental
Connection, has more than 2,700 daily departures throughout the
Americas, Europe and Asia, serving 132 domestic and 137
international destinations. Continental is a member of Star
Alliance. Continental has total assets of $13.60 billion against
total debts of $12.87 billion as of June 30, 2010.
In May 2010, Continental announced an agreement to merge with UAL
Corp. The merger has not yet been completed.
In August 2010, Moody's Investors Service affirmed its 'B2'
corporate family, with negative outlook, for Continental Airlines.
Moody's said the affirmation, among other things, signifies the
potential for it to maintain the B2 rating if the proposed merger
with UAL (B3 corporate family from Moody's, on review for upgrade)
is completed under terms that enable the combined entity to
achieve the potential revenue and cost synergies that have been
identified. However, the outlook remains negative because of the
industry's weak track record in successfully executing large
business combinations.
Continental caries a 'B' corporate rating, on watch negative, from
Standard & Poor's.
UNIGENE LABORATORIES: New CEO to Push for Proactive Business Devt.
------------------------------------------------------------------
Unigene Laboratories Inc. Chief Executive Officer and president
Ashleigh Palmer, said in a statement, "When I joined Unigene as
President and CEO last month, the Company asked for your patience
so it could implement a rapid and effective transition. My
management team and I are grateful for your support in this
regard. In recent weeks, I've had the pleasure of meeting or
interacting with many of you and have greatly appreciated your
warm and enthusiastic welcome. Thank you! Although my transition
at Unigene is far from complete, I would like to share with you
some preliminary findings and discuss next steps as I see them
emerging at this early stage."
"Immediately upon my arrival, I initiated a company-wide,
strategic analysis. Early feedback suggests Unigene's strengths
and opportunities substantially outweigh the Company's weaknesses
and threats. In particular, Unigene has intellectual property,
professional expertise and know-how representing a genuine
distinctive competence, Peptelligence, which aligns extremely well
with a blossoming therapeutic peptide space. Despite this
compelling alignment, the Company appears to have lost its way in
recent years and has, thus far, failed to realize its true
potential."
"In my estimation, the 'Old Unigene's' lackluster performance
results in large part from an apparent lack of proactive business
development and targeted business-to-business marketing. The
upside of acknowledging such a weakness is that it can be swiftly
addressed, neutralized and, over time, transformed into a
strength. In addition to business development being my personal
area of expertise, we are currently in advanced stages of a
retained search for an experienced 'sell-side', business
development professional to head up this important strategic and
tactical function at Unigene. Also, I have already begun to
reorganize personnel to ensure the Company is immediately more
business development focused and more service oriented. It will
take several months before the full impact of these changes
becomes manifest. Nevertheless, I am convinced such initiatives
will play an important role in releasing what appears to be
enormous, as yet untapped, growth potential and shareholder value.
"Although peptide drugs have been on the market for some time,
their commercialization remains a challenge for the industry,
affecting big pharma, big biotech, specialty pharma, and
development stage companies alike. In the past, this has often
resulted in considerable disappointment for investors. Delivering
these relatively large molecules safely, effectively and
efficiently to the body requires state-of-the-art formulation
expertise; cutting-edge drug delivery technology; and cost-
effective, high-yield production and purification capabilities.
Unigene's partnerships with leading biopharmaceutical companies,
such as Novartis and GlaxoSmithKline, clearly validate the
Company's technology to be competitive with, or superior to, that
of other participants in the therapeutic peptide development
space.
"The pharmaceutical industry appears to be aggressively investing
in therapeutic peptide R&D via internal programs and by partnering
with, or acquiring, companies that focus on this area. In my
opinion, Unigene could not be better strategically positioned to
take advantage of this opportunity. I anticipate that Unigene's
focused business development capability will facilitate the
establishment of an enhanced, relatively low-risk, high-return,
diversified portfolio of ongoing feasibility, formulation,
preclinical and clinical development projects. This portfolio
will be relatively low-risk, because the feasibility work will be
sponsored, in most instances, by the prospective partners that are
actively developing the novel peptides. These partners will
require Unigene's proprietary technologies and peptide expertise
to ensure commercial viability. By leveraging Unigene's suite of
patented biotechnologies and putting Peptelligence to work in a
more focused and concerted manner, the Company is likely to be
able to establish a diversified portfolio of proprietary peptide
development partnerships. In so doing, Unigene investors will be
afforded the opportunity to enjoy an expanded, and potentially
less volatile, stake in one of the industry's emerging high-growth
sectors.
"With the Company firmly in the hands of strong, competent
leadership, I believe it will soon become reestablished as an
innovator in rational peptide design and lead optimization, as
well as an industry leader in superior development, drug delivery
and manufacture of peptide-based therapeutics. It is my intention
to promote and market these capabilities and ensure that Unigene's
technology is preferentially incorporated into as many therapeutic
peptides as our limited resources permit. Throughout the
remainder of this calendar year, as the 'New Unigene's'
reformulated strategy emerges from more advanced stages of
business planning, investors can expect to see modest structural
reorganization to realign the Company's resources with a more
focused and more purposeful strategic intent. A number of
revisions and updates to the Company's website and corporate slide
deck can also be expected. This will be an iterative process and
will support and facilitate Unigene's focused business development
efforts. Unigene will also begin actively promoting its new
business plan to institutional investors throughout the remainder
of 2010, beginning with attendance at prominent investor
conferences in September and October.
"It is also imperative that Unigene improves upon the service,
support and management of its existing highly valued partnerships;
in particular, Upsher-Smith (US Forticalr sales); Novartis (high
yield calcitonin manufacture); Tarsa (oral calcitonin drug
delivery); and GlaxoSmithKline (parathyroid hormone drug delivery
and commercial scale manufacture). I can only imagine the
frustration loyal shareholders must feel when there are relatively
long periods without updates on what is happening with these
important partnerships or, as happened recently, when an equivocal
signal from a Data Monitoring Board is reported. However, in many
instances, Unigene cannot contractually disclose specific
information about the status of a confidential partnership or is
too far removed from the details of a particular partner's
clinical program (as might be the case with an arm's length
manufacturing license). Nevertheless, we will do our best to keep
you as well informed as reasonably possible.
"In closing, I would like to emphasize Unigene's commitment to
realizing the potential of a pipeline of novel peptides it has in
early stage development. In particular, the Company is developing
certain novel peptide analogs for the treatment of obesity. It is
my understanding that obesity is growing faster than any other
public health issue our nation is facing. If current trends
continue, over 100 million US adults will be considered obese by
2018 and are anticipated to be associated with more than $300
billion in healthcare costs. The Company's lead compound, UGP281,
is a potent agonist of the amylin receptor with marked
anorexigenic activity and less unwanted binding to other receptors
attributable to unwanted side effects. UGP281 can be manufactured
recombinantly and is currently in preclinical development
undergoing feasibility for oral delivery using Unigene's
proprietary technology. Once an oral formulation has been
finalized, the Company intends to conduct toxicology studies to
support an IND filing to enable early phase clinical testing for
human proof-of-concept. If successful, we will endeavor to
partner UGP281 for late phase clinical studies, registration and
commercialization. In addition to Unigene's obesity program, the
Company has licensed intellectual property pertaining to the
Annexin peptide and is currently developing analogs for the
treatment or prevention of tissue damage resulting from acute
inflammatory response. It is anticipated that these analogs could
have increased circulatory half-life and greater therapeutic
potential than the natural Annexin peptide.
"Finally, but by no means least, I would like to acknowledge and
sincerely thank the extraordinary team of scientists, operational
experts and business professionals that I am so very fortunate to
be working alongside at Unigene. These are talented, dedicated
and hardworking people who care deeply about the drugs they are
developing and the partners they support. Investors can rest
assured that every New Unigene employee is absolutely committed to
building shareholder value and reestablishing and maintaining the
Company's leadership position in therapeutic peptides going
forward.
"Again, thank you for your patience and support. I look forward
to reporting further on my transition and the accelerated progress
of a refocused New Unigene in the coming months," Mr. Palmer says.
About Unigene
Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/
-- is a biopharmaceutical company focusing on the oral and nasal
delivery of large-market peptide drugs.
Grant Thornton LLP, in New York, expressed substantial doubt about
Unigene Laboratories' ability to continue as a going concern
following the Company's 2009 results. The firm noted that the
Company has incurred a net loss of $13,400,000 during the year
ended December 31, 2009 and has an accumulated deficit of
approximately $143,000,000 as of December 31, 2009. As of that
date, the Company's current liabilities exceeded its current
assets by $1,251,000 and its total liabilities exceeded total
assets by $30,442,000.
The Company's balance sheet for December 31, 2009, showed
$23,954,941 and $54,396,602 total liabilities for a $30,441,661
total stockholders' deficit.
USEC INC: Posts $7.2 Million Net Income for June 30 Quarter
-----------------------------------------------------------
USEC Inc. reported net income of $7.2 million for the second
quarter ended June 30, 2010, compared with net income of
$17.3 million or 11 cents per diluted share for the second quarter
of 2009. For the six-month period ending June 30, USEC reported a
net loss of $2.5 million or 2 cents per diluted and basic share
compared to net income of $15.2 million or 10 cents per diluted
share in the same period of 2009. Results in the six-month period
of 2010 include a one-time charge of $6.5 million related to a
change in tax treatment of Medicare Part D reimbursements
resulting from recent health care legislation.
The Company's balance sheet at June 30, 2010, showed $3.6 billion
in total assets, $1.2 billion in total current liabilities, and
$556.0 million in other long-term liabilities, resulting in $1.2
billion in total stockholders' equity.
The financial results for the quarter and six-month period ended
June 30, 2010 reflect a decrease in volume of separative work
units sold compared to the same periods of 2009 due to the
variability of nuclear utility customer orders and lower unit
profits on uranium sales. USEC's advanced technology expense,
primarily from the American Centrifuge project, totaled $26.0
million during the second quarter. This amount was offset in part
by $10.3 million that was recognized as other income in the second
quarter related to the Department of Energy's cost-sharing support
for American Centrifuge under the terms of a cooperative agreement
between USEC and DOE.
"As we continue deploying our future technology platform, we have
also kept a sharp eye on our current, core operations. During the
first half of 2010, we found ways to manage our costs, identify
additional sales opportunities and work with our customers to
adjust product delivery schedules that have improved the outlook
for full-year financial results," said John K. Welch, USEC
president and chief executive officer.
"Although this is a challenging business environment, we are
taking steps to control costs and improve our outlook, while
continuing to invest in our American Centrifuge technology. Even
with the substantial expense of this investment in our future, and
tight gross profit margin for 2010, we expect to have
approximately breakeven earnings," he said.
During the quarter, USEC concluded its process for reviewing
strategic alternatives for the company and signed a definitive
agreement with Toshiba Corporation and an affiliate of The Babcock
& Wilcox Company, two major players in the nuclear industry.
Under the terms of the agreement, B&W and Toshiba will each invest
$100 million, over three phases, each of which is subject to
specific closing conditions. The investment is expected to
strengthen our financial position for the deployment of the
American Centrifuge Plant and create key new business
opportunities throughout the nuclear fuel cycle.
USEC issued a separate news release today providing an update on
the American Centrifuge project.
Revenue
Revenue for the second quarter was $459.7 million, a decrease of
11 percent compared to the same quarter of 2009. Revenue from the
sale of SWU for the quarter was $331.0 million compared to $371.3
million in the same period last year. The volume of SWU sales
declined 11 percent in the quarter and the average price billed to
customers was essentially unchanged. For the six-month period,
SWU revenue was $597.6 million, a decrease of 25 percent compared
to the same period of 2009. SWU sales volume in the six-month
period was 28 percent lower and the average price billed to
customers was 3 percent higher, reflecting the particular
contracts under which SWU were sold during the periods as well as
the general trend of higher prices under contracts signed in
recent years.
Revenue from the sale of uranium was $69.6 million, a decrease of
$25.8 million from the same quarter last year. The quarterly
results reflect a decrease of 5 percent in uranium volume sold at
average prices that were 23 percent lower than in the 2009 period
due to the mix and timing of uranium contracts. For the six-month
period, revenue from the sale of uranium was $85.2 million, a
decrease of $38.8 million on sales volume that declined 13 percent
at average prices that declined 21 percent from the same period
last year. Revenue from our U.S. government contracts segment was
$59.1 million, an increase of $11.5 million compared to the second
quarter last year, and $121.6 million in the six-month period, an
increase of $24.9 million over the same period in 2009 due to
additional cold shutdown services performed at the Portsmouth
gaseous diffusion plant and fee recognition in the first quarter
of 2010 on certain contracts.
In a number of sales transactions, USEC transfers title and
collects cash from customers but does not recognize the revenue
until low enriched uranium is physically delivered. At June 30,
2010, deferred revenue totaled $344.8 million, an increase of
$42.9 million from December 31, 2009. The gross profit associated
with deferred revenue as of June 30, 2010, was $58.0 million.
A majority of reactors served by USEC are refueled on an 18-to-24-
month cycle, and this can lead to significant quarterly and annual
swings in SWU sales volume that reflects the mix of refueling
cycles. Therefore, short-term comparisons of USEC's financial
results are not necessarily indicative of longer-term results.
Cash Flow
At June 30, 2010, USEC had a cash balance of $207.5 million
compared to $32.5 million at March 31, 2010 and $131.3 million at
December 31, 2009. Cash flow provided by operations in the six
months ended June 30, 2010 was $173.2 million, compared to cash
flow from operations of $221.7 million in the previous year.
Payables under the Russian Contract increased $53.8 million in the
six-month period, due to timing of deliveries. Inventories
declined $44.3 million during the first half of 2010, representing
a monetization of inventory. Capital expenditures, primarily
related to the American Centrifuge Plant, totaled $87.9 million
during the six-month period compared to $257.8 million in the same
period of 2009.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?67d7
About USEC Inc.
Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) --
http://www.usec.com/-- a global energy company, is a supplier of
enriched uranium fuel for commercial nuclear power plants.
The Company's balance sheet at March 31, 2010, showed $3.4 billion
in total assets, $1.0 billion in total current liabilities,
$575.0 million in long term debt, and $556.1 million other long-
term liabilities, for a stockholder's equity of $1.2 billion.
* * *
According to the Troubled Company Reporter on Dec. 30, 2009, USEC
Inc. has a revolving credit that matures in August and a corporate
rating from Standard & Poor's that recently declined one click to
CCC+, matching the action taken on Dec. 18 by Moody's Investors
Service.
The Troubled Company Reporter on May 28, 2010, reported that
Standard & Poor's Ratings Services said that its rating and
outlook on USEC Inc. (CCC+/Developing/--) are not affected by the
announcement that Toshiba Corp. and Babcock & Wilcox Investment
Co., an affiliate of The Babcock & Wilcox Co., have signed a
definitive investment agreement for $200 million with USEC.
VILLAGEEDOCS INC: Amends Questys Stock Purchase Agreement
---------------------------------------------------------
VillageEDOCS Inc. entered into agreements which amend its Stock
Purchase Agreement and related Promissory Note entered into in
connection with the acquisition of Decision Management Company,
d/b/a Questys Solutions, Inc. in August 2008.
The Company said, "These amendments have the effect of
restructuring our remaining repayment obligations in connection
with the acquisition of Questys. Pursuant to the amendments, we
paid the Questys shareholder $175,000 on July 30, 2010. Our
remaining payment obligation of $505,000 is repayable on a monthly
basis through August 1, 2012 at twelve percent (12%) annual
interest."
"We will incur a 20% payment penalty for any late payments. The
security interest granted to the Questys shareholder, pursuant to
the original sale documents, shall remain in full force and
effect," the Company said.
A full-text copy of the First Amendment To Stock Purchase
Agreement And Forbearance is available for fee at:
http://ResearchArchives.com/t/s?67af
A full-text copy of the First Amendment To Promissory Note Is
Available for free at:
http://ResearchArchives.com/t/s?67b0
About VillageEDOCS
Santa Ana, Calif.-based VillageEDOCS, Inc. is a global outsource
provider of business process solutions that simplify, facilitate
and enhance critical business processes.
The Company's balance sheet as of March 31, 2010, showed
$8,541,436 in assets, $2,612,142 of liabilities, and $5,929,294 of
stockholders' equity.
KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statements
for the year ended December 31, 2009. The independent auditors
noted that the Company has incurred recurring losses from
operations.
WALNUT I-35: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Walnut I-35 Enterprises. LLC
dba Flashmart
Church's Chicken
Valero Gas Station
2410 Walnut Hill Lane
Dallas, TX 75229
Bankruptcy Case No.: 10-35490
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Barbara J. Houser
Debtor's Counsel: Joyce W. Lindauer, Esq.
Joyce W. Lindauer, Attorney at Law
8140 Walnut Hill Lane, Suite 301
Dallas, TX 75231
Tel: (972) 503-4033
Fax: (972) 503-4034
E-mail: courts@joycelindauer.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 Saeed Mahbaubi, president.
WASSON PROPERTIES: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Wasson Properties, LLC
1111 Hendersonville Road
Asheville, NC 28803
Bankruptcy Case No.: 10-10914
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
Western District of North Carolina (Asheville)
Judge: George R. Hodges
Debtor's Counsel: David G. Gray, Esq.
81 Central Avenue
Asheville, NC 28801
Tel: (828) 254-6315
E-mail: judyhj@bellsouth.net
Scheduled Assets: $1,515,000
Scheduled Debts: $2,552,361
The list of unsecured creditors filed together with its petition
does not contain any entry.
The petition was signed by Michael S. Wasson, member/manager.
WILLY NG: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Joint Debtors: Willy W. Ng
Janey K. Ng
7931 Lakenheath Way
Potomac, MD 20854
Bankruptcy Case No.: 10-27520
Chapter 11 Petition Date: August 2, 2010
Court: U.S. Bankruptcy Court
District of Maryland (Greenbelt)
Judge: Paul Mannes
Debtor's Counsel: Jonathan C. Silverman, Esq.
5505 Branchville Road
College Park, MD 20740
Tel: (301) 474-5214
Fax: (301) 474-5213
E-mail: jonathan.c.silverman@gmail.com
Scheduled Assets: $1,363,350
Scheduled Debts: $2,100,277
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/mdb10-27520.pdf
The petition was signed by the Joint Debtors.
WATER PIK: Moody's Raises Ratings on Senior Facilities to 'Ba3'
---------------------------------------------------------------
Moody's Investors Service raised the ratings on Water Pik, Inc.'s
first lien senior secured credit facilities to Ba3 from B1 and the
second lien senior secured term loan to B3 from Caa1.
Concurrently, Moody's affirmed the company's B2 corporate family
and probability-of-default ratings. The ratings outlook remains
stable.
Water Pik's B2 corporate family rating is supported by credit
metrics that are solid for the ratings category, but restrained by
its modest scale and niche focus.
The ratings of the senior secured credit facilities were increased
based on Moody's expectation of lower first lien term loan
balances. This increases the relative proportion of second lien
claims relative to first lien, thus lowering the expected loss of
both instruments and raising their ratings accordingly, consistent
with Moody's Loss Given Default Methodology.
These ratings were upgraded:
* Senior secured revolving credit facility due 2013 to Ba3 (LGD2,
24%) from B1 (LGD3, 34%);
* First lien senior secured term loan due 2014 to Ba3(LGD2, 24%)
from B1 (LGD3, 34%);
* Second lien senior secured term loan due 2014 to B3 (LGD5, 76%)
from Caa1 (LGD5, 85%).
These ratings were affirmed:
* Corporate family rating at B2;
* Probability-of-default rating at B2.
The last rating action was on October 6, 2009, when Moody's
upgraded Water Pik's corporate family and probability-of-default
ratings to B2 from B3, and the second lien term loan to Caa1 from
Caa2. Moody's also affirmed the B1 rating on the company's first
lien senior secured credit facilities.
Headquartered in Fort Collins, Colorado, Water Pik, Inc., sells
dental water jets, power flossers, automatic toothbrushes,
professional dental products, and replacement showerheads through
its oral healthcare and showerhead divisions.
YRC WORLDWIDE: Has Deal to Sell $70 Million Conv. Senior Notes
--------------------------------------------------------------
YRC Worldwide Inc. entered into an agreement with certain
investors to issue and sell up to $70 million in aggregate
principal amount of its 6% Convertible Senior Notes due 2014 in a
private placement.
The Notes are subject to semi-annual interest and, pursuant to
certain terms contained in the Notes, the Company intends to pay
the Interest due on August 15, 2010 in shares of its common stock.
The amount of Interest payable on the Interest Payment Date will
be $28.67 per $1,000 in principal amount of the Notes.
The number of shares of common stock that will be issued in
respect of the Interest will be calculated as set forth in the
Notes. The Shares will be issued in reliance on certain
exemptions from the registration requirements of the Securities
Act of 1993, as amended, and the rules and regulations promulgated
thereunder.
About YRC Worldwide
Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ:
YRCW) -- http://www.yrcw.com/-- is a holding company that through
wholly owned operating subsidiaries offers its customers a wide
range of transportation services. These services include global,
national and regional transportation as well as logistics.
The Company's balance sheet as of March 31, 2010, showed
$2.919 billion in assets and $3.024 billion of liabilities, for a
stockholders' deficit of $104.9 million.
* * *
As reported in the Troubled Company Reporter on March 18, 2010,
KPMG LLP, in Kansas City, Missouri, expressed substantial doubt
about YRC Worldwide's ability to continue as a going concern in
its report on the Company's consolidated financial statements as
of and for the year ended December 31, 2009. The independent
auditors noted that the Company has experienced significant
declines in operations, cash flows, and liquidity.
YRC WORLDWIDE: Has Deal to Sell Remaining $20.2 Mil. of Sr. Notes
-----------------------------------------------------------------
YRC Worldwide Inc. disclosed that it had entered into a Letter
Agreement with certain investors to facilitate the Company's
issuance of the remaining $20.2 million of its 6% Convertible
Senior Notes due 2014 and that the Company expected to issue the
remaining $20.2 million of Notes on August 3, 2010.
On August 3, 2010, the Company entered into a Supplemental
Indenture to that certain Indenture, dated as of February 23,
2010, among the Company, the subsidiaries party thereto from time
to time, as guarantors, and U.S. Bank National Association, as
trustee, relating to the Notes. The holders of the outstanding
Notes consented to the amendments contained in the Supplemental
Indenture, which facilitate the agreements set forth in the Letter
Agreement.
The Company completed the sale of $20.2 million in aggregate
principal amount of the Notes pursuant to the second closing under
that certain Note Purchase Agreement, dated as of February 11,
2010, among the Company, certain of its subsidiaries party
thereto, as guarantors, and the Buyers.
A full-text copy of the supplemental indenture is available for
free at http://ResearchArchives.com/t/s?67d1
About YRC Worldwide
Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ:
YRCW) -- http://www.yrcw.com/-- is a holding company that through
wholly owned operating subsidiaries offers its customers a wide
range of transportation services. These services include global,
national and regional transportation as well as logistics.
The Company's balance sheet as of March 31, 2010, showed
$2.919 billion in assets and $3.024 billion of liabilities, for a
stockholders' deficit of $104.9 million.
* * *
As reported in the Troubled Company Reporter on March 18, 2010,
KPMG LLP, in Kansas City, Missouri, expressed substantial doubt
about YRC Worldwide's ability to continue as a going concern in
its report on the Company's consolidated financial statements as
of and for the year ended December 31, 2009. The independent
auditors noted that the Company has experienced significant
declines in operations, cash flows, and liquidity.
YRC WORLDWIDE: Reports $9.5-Mil. Net Loss for Second Quarter
------------------------------------------------------------
YRC Worldwide Inc. reported its second quarter 2010 results. For
the second quarter ending June 30, 2010, the company reported a
net loss of $9.5 million and a $.01 loss per share on an average
outstanding fully diluted share count of 1.079 billion. As a
comparison, the company reported a net loss of $309 million and a
$5.20 loss per share in the second quarter of 2009 with average
fully diluted shares outstanding of 59 million.
The company's balance sheet for June 30, 2010, showed $2.8 billion
in total assets, $1.1 billion in total current liabilities, $913.4
million in long term debt, $146.2 million deferred income taxes,
$352.6 million pension and post retirement, $359.2 million claims
and other liabilities, and $37,000 noncurrent liabilities, for a
$77.2 million in total stockholders' deficit.
"We are pleased with the sequential improvement in our business
volumes and earnings as our pricing discipline, customer mix
management and cost initiatives gain significant traction," stated
Bill Zollars, Chairman, President and CEO of YRC Worldwide. "For
the quarter, the Regional companies reported positive operating
income, and YRC National achieved positive adjusted EBITDA."
The company's second quarter 2010 results include an $83 million
non-cash reduction to its equity-based compensation expense
related to its March 2010 union equity-based awards. On a year-
to-date basis, this benefit partially offsets the $108 million
non-cash charge reported in the first quarter of 2010 related to
the same equity awards. In addition, YRC Logistics is being
reported within discontinued operations for all periods presented
based upon the previously announced definitive agreement to sell a
portion of YRC Logistics business to Austin Ventures for $37
million and discontinuation of its pooled distribution service
offering. In November 2009 the company sold YRC Logistics'
Dedicated Fleet business for $34 million.
For the second quarter of 2010, the company reported cash usage
from operating activities of $33 million which included working
capital requirements and other expenditures in excess of its
positive adjusted earnings before interest, taxes, depreciation
and amortization. To fund revenue growth the company increased
the aggregate borrowings under its asset-backed securitization
facility by approximately $30 million, inclusive of the $22
million of availability that resulted from the June 2010 amendment
of that facility, and generated $15 million of net proceeds from
its at-the-market equity issuance program.
At June 30, 2010, the company reported cash and cash equivalents
of $144 million, unrestricted availability of $8 million and
unused restricted revolver reserves of $129 million, subject to
the terms of the company's credit agreement, for a total of $281
million. As a comparison, at March 31, 2010 the company reported
a total of $241 million.
"The sequential growth in our business volumes put increased
pressure on our liquidity even though our adjusted EBITDA from
continuing operations improved from $3 million in April to $22
million in June," said Sheila Taylor, Executive Vice President and
CFO of YRC Worldwide. "We proactively addressed these working
capital needs by partnering with our lenders to open up additional
borrowing availability, while we handled more shipments with fewer
people and improved our consolidated days sales outstanding by
four days compared to last year, our best DSO in more than four
years."
Outlook
"With the significant operating momentum we achieved throughout
the second quarter and experienced in July, the company is
positioned for further growth, and we expect to achieve positive
adjusted EBITDA in the third quarter of 2010 in excess of the
second quarter," stated Zollars.
In addition, the company has the following expectations for 2010:
* Gross capital expenditures in the range of $30 million to $50
million
* Excess real estate sales of approximately $50 million
* Sale and financing leasebacks in the range of $40 million to
$50 million
* Interest expense in the range of $40 to $45 million per
quarter, with cash interest of $10 million to $12 million per
quarter
* Effective income tax rate of approximately 2%
Credit Agreement Amendment
On July 28, 2010 the company amended its credit agreement, as
follows:
The following provisions are effective upon approval of the
conforming amendment by the applicable pension funds who are
parties to the pension contribution deferral agreement:
* the company would retain 100% of the estimated $30 million of
net proceeds from initial closing of the sale of YRC Logistics
and the company's revolver would be reduced by 50% of those
proceeds;
* the company would receive 75%, rather than 25%, of the next
$20 million of net cash proceeds from sale and leaseback
transactions and the company's revolver would be reduced by
50% of those proceeds, subject to the company's satisfaction
of certain cost reduction criteria established by the credit
agreement lenders;
* the company would receive 25% of subsequent proceeds from the
sale of real estate and sale and leaseback transactions and
the company's revolver and term loan under the credit
agreement would be ratably reduced by 75% of such proceeds;
and
* the amendment converts $150 million of outstanding revolver
borrowings to term loans. As of June 30, 2010 the company had
$358 million of outstanding revolver borrowings.
* Adjusted EBITDA now includes a new add-back for charges,
expense and losses from permitted dispositions and
discontinued operations. For the second quarter of 2010 the
company's adjusted EBITDA under this amendment was $40 million
as compared to the covenant requirement of $5 million.
* The amendment reduces the letter of credit sublimit to $550
million. As of June 30, 2010 the company had $455 million in
outstanding letters of credit under its credit agreement.
A full-text copy of the company's earnings release is available
for free at http://ResearchArchives.com/t/s?67d2
About YRC Worldwide
Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ:
YRCW) -- http://www.yrcw.com/-- is a holding company that through
wholly owned operating subsidiaries offers its customers a wide
range of transportation services. These services include global,
national and regional transportation as well as logistics.
The Company's balance sheet as of March 31, 2010, showed
$2.919 billion in assets and $3.024 billion of liabilities, for a
stockholders' deficit of $104.9 million.
* * *
As reported in the Troubled Company Reporter on March 18, 2010,
KPMG LLP, in Kansas City, Missouri, expressed substantial doubt
about YRC Worldwide's ability to continue as a going concern in
its report on the Company's consolidated financial statements as
of and for the year ended December 31, 2009. The independent
auditors noted that the Company has experienced significant
declines in operations, cash flows, and liquidity.
* Pimco's El-Erian Says U.S. Has 25% Chance of Deflation
--------------------------------------------------------
The U.S. faces a 25% chance of deflation and a double-dip
recession, according to Mohamed A. El-Erian, of Pacific Investment
Management Co., Bloomberg News reported.
"I do not think the deflation and double-dip is the baseline
scenario, but I think it's the risk scenario," said Mr. El-Erian,
51, which heads Pimco, the world's biggest bond fund. U.S.
unemployment will probably stay unusually high, he told reporters
August 5 in Tokyo.
Companies are accumulating cash and individuals are saving, making
it tougher to counter deflation, Mr. El-Erian said, according to
the report. That reduction in private-sector spending makes
government policies to stimulate the economy less effective, he
said. A mix of the lowest U.S. inflation rate in four decades and
concern that the global recovery will falter is boosting
Treasuries, sending two-year yields to a record low this week.
* BOOK REVIEW: Beyond the Quick Fix: Managing Five Tracks To
Organizational Success
------------------------------------------------------------
Author: Ralph H. Kilmann
Publisher: Beard Books
Hardcover: 320 pages
Listprice: $34.95
Review by Henry Berry
Every few years, a new approach is offered for unleashing the full
potential of organized efforts. These are the quick fixes to
which the title of this book refers. The jargon of the quick fix
is familiar to any businessperson: decentralization, human
resources, restructuring, mission statement, corporate strategy,
corporate culture, and so on. These terms are all limited in
scope or objective, and some are even irrelevant or misconceived
with regard to the overall well-being and purpose of a
corporation.
With his extensive experience as a corporate consultant, author of
numerous articles, and professor in business studies, Kilmann
recognizes that each new idea for optimum performance and results
is germane to some area of a corporation. However, he also
recognizes that each new idea inevitably falls short in bringing
positive change -- that is, a change that is spread throughout the
corporation and is lasting. At best, when a corporation relies on
an alluring, and sometimes little more than fashionable, idea, it
is a wasteful distraction. At worst, it can skew a corporate
organization and its operations, thereby allowing the
corporation's true problems or weaknesses to grow until they
become ruinous. As the author puts it, "Essentially, it is not
the single approach of culture, strategy, or restructuring that is
inherently ineffective. Rather, each is ineffective only if it is
applied by itself -- as a "quick fix"."
Kilmann tells corporate leaders how to break the cycle of
embracing a quick fix, discarding it after it proves ineffective,
and then turning to a newer and ostensibly better quick fix that
soon proves to be equally ineffective. For a corporation to break
this self-defeating cycle, the author offers a five-track program.
The five tracks, or elements, of this program are corporate
culture, management skills, team-building, strategy-structure, and
reward system. These elements are interrelated. The virtue of
Kilmann's multidimensional five-track program is that it addresses
a corporation in its entirety, not simply parts of it.
Kilmann's five tracks offer structural and operational aspects of
a corporation that executives and managers will find familiar in
their day-to-day leadership and strategic thinking. Thus, the
author does not introduce any unfamiliar or radical perspectives
or ideas, but rather advises readers on how to get all parts of a
corporation involved in productive change by integrating the five
tracks into "a carefully designed sequence of action: one by one,
each track sets the stage for the next track." Kilmann does more,
though, than bring all significant features of a modern
corporation together in a five-track program and demonstrate the
interrelation of its elements. His singularly pertinent and
useful contribution is providing a sequence of steps to be
implemented with respect to each track so that a corporation
progresses toward its goals in an integrated way.
Beyond the Quick Fix is a manual for implementing and evaluating
the progress of a five-track program for corporate success. The
book should be read by any corporate leader desiring to bring
change to his or her organization.
Ralph H. Kilmann has been connected with the University of
Pittsburgh for 30 years. For a time, he was its George H. Love
Professor of Organization and Management at its Katz Graduate
School of Business. Additionally, he is president of a firm
specializing in quantum transformations.
*********
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
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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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*** End of Transmission ***