/raid1/www/Hosts/bankrupt/TCR_Public/100823.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, August 23, 2010, Vol. 14, No. 233
Headlines
4 UNION: Case Summary & 7 Largest Unsecured Creditors
A & I LEASE: Case Summary & 17 Largest Unsecured Creditors
AFFINITY GROUP: Cut by S&P to 'D' After Missing Interest Payment
AGY HOLDING: Files 10-Q; Posts Q2 2010 Net Loss of $5.9 Million
AMBAC FIN'L: Shares Lost Quarter of Value Amid Likely Bankruptcy
ANDERSON NEWS: Asks Judge to Reconsider Decision on Collusion Suit
ANTHONY BRONGE: Case Summary & 16 Largest Unsecured Creditors
ARENA FOOTBALL: Former Owners Dispute Insolvency Claim
AVAYA INC: Bank Debt Trades at 12% Off in Secondary Market
BARCALOUNGER CORP: Can Sell Remaining Assets for $1.9 Million
BIOJECT MEDICAL: Reports $556,000 Net Loss for Second Quarter
BIO-KEY INT'L: Needs Commercialization of Technology to Be Viable
BONIFER PARUNGAO: Case Summary & 20 Largest Unsecured Creditors
BOSTON GENERATING: Case Summary & 20 Largest Unsec. Creditors
BRANDTVILLE SERVICE: Voluntary Chapter 11 Case Summary
BRENTWOOD OKEECHOBEE: Case Summary & Creditors List
BRIDGEVIEW OFFICE: Case Summary & 19 Largest Unsecured Creditors
BRUNO MACHINERY: Insiders Must Return $185,865 to Estate
BUTTE COMMUNITY BANK: Closed; Rabobank Assumes All Deposits
CARIBBEAN PETROLEUM: Section 341(a) Meeting Scheduled for Sept. 16
CARIBBEAN PETROLEUM: Wants Filing of Schedules Extended to 60 Days
CENTERVILLE PARTNERS: Case Summary & 12 Largest Unsec Creditors
CES ENVIRONMENTAL: Case Summary & 20 Largest Unsecured Creditors
CHARTWELL INTERNATIONAL: Voluntary Chapter 11 Case Summary
CHOA VISION: Case Summary & 20 Largest Unsecured Creditors
CHRISTENSEN REALTY: Files Schedules of Assets & Liabilities
CHRISTENSEN REALTY: Section 341(a) Meeting Scheduled for Sept. 10
CHRISTENSEN REALTY: Taps D. Blair as Bankruptcy Counsel
CINEMARK INC: Bank Debt Trades at 1% Off in Secondary Market
CLAIRE'S STORES: Bank Debt Trades at 14% Off in Secondary Market
CMP SUSQUEHANNA: Bank Debt Trades at 11% Off in Secondary Market
COLETO CREEK: Bank Debt Trades at 11% Off in Secondary Market
COMMUNITY NATIONAL: Closed; CenterState Bank Assumes Deposits
COMVERSE TECHNOLOGY: S&P Cuts Corporate Credit Rating to 'B-'
CORD BLOOD: Delays Filing of Form 10-Q for June 30 Quarter
DANNY KEYS: Case Summary & 20 Largest Unsecured Creditors
DAVID RANDALL: Case Summary & 20 Largest Unsecured Creditors
DAVITA INC: Fitch Affirms Issuer Default Rating at 'BB-'
DELTEK INC: Moody's Gives Positive Outlook, Affirms 'B1' Rating
DEX MEDIA EAST: Bank Debt Trades at 20% Off in Secondary Market
EMISPHERE TECH: Posts $13.7 Million Net Loss for June 30 Quarter
EMPIRE LAND: Ch. 7 Trustee Slams Officers' Bid for D&O Coverage
ENERGYSOLUTIONS INC: S&P Assigns 'BB-' Rating on $300 Mil. Notes
FLETCHER GRANITE: Aims for Quick Sale of Business
FRANK TURNER: Case Summary & 20 Largest Unsecured Creditors
FUQI INT'L: Receives Additional Noncompliance Notice from Nasdaq
FX REAL ESTATE: Posts $11.3 Million Net Loss in Q2 2010
GATEHOUSE MEDIA: Bank Debt Trades at 61% Off in Secondary Market
GATEWAY TO EAST: Case Summary & 6 Largest Unsecured Creditors
GENERAL DATACOMM: Posts $959,000 Net Loss for June 30 Quarter
GEORGE GEORGITSEAS: Case Summary & 5 Largest Unsecured Creditors
GEORGE W PARK: Blackstreet Affiliate to Buy Assets for $7.09MM
GLEBE INC: Files Schedules of Assets and Liabilities
GLENN MANIGAULT: Files Schedules of Assets and Liabilities
GRAY COMMS: Bank Debt Trades at 6% Off in Secondary Market
GREENSHIFT CORP: Delays Filing of 2nd Quarter Report on Form 10-Q
GWENDOLYN MCADAMS: Voluntary Chapter 11 Case Summary
HARRAH'S ENTERTAINMENT: Posts $272 Mil. Net Loss for June 30 Qtr
HAWKS PRAIRIE: Case Summary & 6 Largest Unsecured Creditors
HEALTHSOUTH CORP: Bank Debt Trades at 2% Off in Secondary Market
HERBST GAMING: Bank Debt Trades at 41% Off in Secondary Market
HERTZ CORP: Bank Debt Trades at 3% Off in Secondary Market
HF THREE: Voluntary Chapter 11 Case Summary
HUNTSMAN ICI: Bank Debt Trades at 6% Off in Secondary Market
IMPERIAL SAVINGS: Closed; River Community Bank Assumes Deposits
INDEPENDENT NATIONAL: Closed; CenterState Bank Assumes Deposits
INFOLOGIX INC: Posts $567,000 Net Income for June 30 Quarter
ISE CORP: Section 341(a) Meeting Scheduled for Sept. 14
JANICE BECKER: Section 341(a) Meeting Scheduled for Sept. 28
JEAN DETHIERSANT: Case Summary & 7 Largest Unsecured Creditors
JOHN MANEELY CO: Bank Debt Trades at 5% Off in Secondary Market
KAISER GROUP: Squire Sanders Escapes Malpractice Suit
LAS VEGAS MONORAIL: Files Ch. 11 Plan, May Cease Operations 2019
LESLIE CONTROLS: Court Approves Disclosure Statement
LESLIE CONTROLS: Fireman's Fund Challenge Proposed Plan
LOS PADRES BANK: Closed; Pacific Western Bank Assumes All Deposits
LYONDELL CHEMICAL: Ex-Workers Seek Approval to Sue Over Bonuses
MARCO VELA: Case Summary & 19 Largest Unsecured Creditors
MARCUS MILLER: Case Summary & 3 Largest Unsecured Creditors
MARIO LOERA: Case Summary & 20 Largest Unsecured Creditors
MARKET CENTER: Oversecured Creditor's 5% Late Fee Disallowed
MARKET DALLAS: Voluntary Chapter 11 Case Summary
MARKETXT HOLDINGS: Settles Chimera's $37M Claim for $730K
MESA SOUTHERN: Case Summary & 9 Largest Unsecured Creditors
MPM TECHNOLOGIES: Delays Filing of Form 10-Q for 2nd Quarter 2010
NADER ANDRE: Case Summary & 20 Largest Unsecured Creditors
NCOAT INC: Updated Case Summary & 20 Largest Unsecured Creditors
NEC HOLDINGS: Proofs of Claim Must Be Filed By Oct. 8, 2010
NEFF CORP: Unsecured Creditors Seeks OK to Sue Over Buyouts
NEXSTAR BROADCASTING: To Redeem All $5.3 Million Notes on Sept. 15
NORD RESOURCES: Posts $6.15 Million Net Loss for June 30 Quarter
NORTH GENERAL: Files Schedules of Assets and Liabilities
NORWALK FURNITURE: New Owners Restart Firm with Simple Biz Plan
NT MINING: Hughes Maritime Says Firm Defaulted on Payments
OSI RESTAURANT: Bank Debt Trades at 12% Off in Secondary Market
PACIFIC STATE: Closed by Regulators; Rabobank Assumes Deposits
PATRICIA MUHAMMAD: Case Summary & 14 Largest Unsecured Creditors
PATRICK BALLANTINE: Files for Chapter 7 Bankruptcy Protection
PATRIOT STEEL: Case Summary & 20 Largest Unsecured Creditors
PCS EDVENTURES: Posts $395,400 Net Loss in Q1 Ended June 30
PEARVILLE LP: Wins Final Approval to Use Cash Collateral
PETCO ANIMAL: Bank Debt Trades at 4% Off in Secondary Market
PETROFLOW ENERGY: Files for Bankruptcy Protection in Canada & U.S.
PHOENIX FOOTWEAR: Board Names Kevin Wulff as Director
PLASTIPAK HOLDINGS: S&P Gives Stable Outlook, Keeps 'BB-' Rating
POINT BLANK: Seeks to Retain Goldin as Financial Advisor
PORT ARTHUR: Case Summary & 20 Largest Unsecured Creditors
REALOGY CORP: Bank Debt Trades at 13% Off in Secondary Market
RENEGADE HOLDINGS: Judge OKs Tourtellot as Chapter 11 Trustee
RIMA SHAHBAZIAN: Case Summary & 9 Largest Unsecured Creditors
ROBERT CARCHIETTA: Case Summary & 10 Largest Unsecured Creditors
ROBERT GARTON: Case Summary & 4 Largest Unsecured Creditors
ROBERT GRIFFIN: Files Schedules of Assets and Liabilities
RONSON AVIATION: Updated Case Summary & Largest Unsec. Creditors
SALLY BEAUTY: Bank Debt Trades at 3% Off in Secondary Market
SANDISK CORP: S&P Assigns 'BB-' Senior Unsecured Rating
SEA ISLAND: Court Extends Filing of Schedules Until Sept. 8
SEA ISLAND: Taps King & Spalding as Bankruptcy Counsel
SEA ISLAND: Wants to Hire Gilbert Harrell as Co-Counsel
SEA ISLAND: Wants to Hire FTI Consulting as Restructuring Advisor
SECUREALERT INC: Posts $2.05 Million Net Loss for June 30 Quarter
SELECTO-FLASH SAFETY: Case Summary & 20 Largest Unsec. Creditors
SEMGROUP LP: Judge Streamlines Avoidance Claims
SENTRY INVESTMENTS: Disclose Delisting Date of Capital Units
SHELDRAKE LOFTS: Section 341(a) Meeting Scheduled for Sept. 15
SHOREBANK OF CHICAGO: Closed; Urban Partnership Assumes Deposits
SICEL TECHNOLOGIES: Judge Delays Hearing on Involuntary Case
SILVER LAKE: Case Summary & 9 Largest Unsecured Creditors
SONOMA VALLEY BANK: Closed; Westamerica Bank Assumes Deposits
SOUTHEASTERN MATERIALS: Equipment Lease Was Disguised Financing
SPARK DESIGN: Case Summary & 20 Largest Unsecured Creditors
STERLING FINANCIAL: To Raise $730 Million in New Capital
STOCK BUILDING: Lessor's Waiver Nixed Rejection Damage Claim
SUN-TIMES MEDIA: Unions Seek Rule 2004 Probe of STMG Holding
SUNGARD DATA: Bank Debt Trades at 3% Off in Secondary Market
SYS HOSPITALITY: Files for Bankruptcy Armed With Plan
TACO DEL MAR: Competing Bids for All Assets Due on September 29
TBI LLC: Case Summary & 4 Largest Unsecured Creditors
TELKONET INC: Posts $444,200 Net Income for June 30 Quarter
TELTRONICS INC: Posts $3.23 Million Net Loss for June 30 Quarter
TEXAS RANGERS: New CEO Moves from Pepper Hamilton to Reed Smith
TRIBUNE CO: Bank Debt Trades at 39% Off in Secondary Market
TRUAX CONSTRUCTION: Voluntary Chapter 11 Case Summary
TYSON FOODS: S&P Raises Corporate Credit Rating to 'BB+'
UNIVERSAL BUILDING: Unsecured Creditors Want Sale Delayed
U.S. ENERGY: Confirmation Hearing Set for Oct. 5, 2010
UTE MESA: Case Summary & 13 Largest Unsecured Creditors
VEBLEN WEST: Court Orders Appointment of a Chapter 11 Trustee
WECHSLER & CO.: Voluntary Chapter 11 Case Summary
WECK CORPORATION: Case Summary & 41 Largest Unsecured Creditors
WESTERN REFINING: Bank Debt Trades at 6% Off in Secondary Market
WORLDGATE COMMS: To Discuss Financial Results on August 24
WYLE SERVICES: Moody's Downgrades Corporate Family Rating to 'B3'
WYLE SERVICES: S&P Affirms 'B+' Corporate Credit Rating
YRC WORLDWIDE: Completes Initial Closing for Logistics Sale
* Bankruptcy Claims Trading Hits $12.7 Billion in July
* BOND PRICING -- For the Week From August 16 to 20, 2010
*********
4 UNION: Case Summary & 7 Largest Unsecured Creditors
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Debtor: 4 Union, LLC
62 First St.
San Francisco, CA 94105
Tel: (415) 344-4571
Bankruptcy Case No.: 10-33165
Chapter 11 Petition Date: Aug 17, 2010
Court: U.S. Bankruptcy Court
Northern District of California (San Francisco)
Judge: Dennis Montali
Debtor's Counsel: Iain A. Macdonald, Esq.
MACDONALD AND ASSOCIATES
221 Sansome Street, Third Floor
San Francisco, CA 94104
Tel: (415) 362-0449
E-mail: iain@macdonaldlawsf.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
A list of the Company's seven largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/canb10-33165.pdf
The petition was signed by Graham Seel, senior vice president of
CMR, Inc., Manager of 4 Union, LLC.
A & I LEASE: Case Summary & 17 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: A & I Lease Service, Inc.
P.O. Box 2012
Mission, TX 78573
Tel: (956) 585-0131
Bankruptcy Case No.: 10-70582
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Southern District of Texas (McAllen)
Judge: Richard S. Schmidt
Debtor's Counsel: Jose Luis Flores, Esq.
LAW OFFICE OF JOSE LUIS FLORES
1111 W Nolana
McAllen, TX 78504
Tel: (956) 682-0924
Fax: (956) 682-3838
E-mail: bklaw@jlfloreslawfirm.com
Scheduled Assets: $1,356,403
Scheduled Debts: $1,966,132
A list of the Company's 17 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/txsb10-70582.pdf
The petition was signed by Ismael Garza, president.
AFFINITY GROUP: Cut by S&P to 'D' After Missing Interest Payment
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Ventura, Calif.-based Affinity Group Holding Inc. and
its operating subsidiary Affinity Group Inc. to 'D' from 'CCC'.
S&P also lowered its issue-level rating on AGHI's 10.875% senior
notes to 'D' from 'CC', while leaving the recovery rating on this
debt unchanged at '6', indicating S&P's expectation of negligible
(0%-10%) recovery for noteholders.
In addition, S&P lowered its issue-level rating on Affinity Group
Inc.'s senior secured credit facilities to 'CC' from 'B-', while
leaving the recovery rating unchanged at '1', indicating S&P's
expectation of very high (90% to 100%) recovery for lenders in the
event of a payment default.
Lastly, S&P lowered its issue-level rating on Affinity Group
Inc.'s 9% senior subordinated notes to 'C' from 'CC'. The
recovery rating on this debt remains unchanged at '6'.
The rating downgrade reflects Affinity Group's failure to make the
Aug. 15 interest payment on its holding company's 10.875% senior
notes. A payment default has not occurred according to the legal
provision of the notes because the company has a grace period of
30 days to cure the default. However, according to S&P's
criteria, S&P considers it a default when a payment related to an
obligation is not made, in the event that the nonpayment is a
function of the borrower being under financial stress and S&P is
not confident that the payment will be made in full. S&P has
taken this view because of Affinity's highly leveraged financial
profile, weak operating outlook, thin liquidity, and near-term
refinancing risk for the company's senior secured credit facility.
Affinity Group is a direct marketer and retailer targeting North
American RV owners and outdoor enthusiasts. Revenue and
profitability deteriorated over the past two years because of
reduced consumer discretionary spending due to the weak economy
and declines in advertising spending. During the second quarter
of 2010, EBITDA grew 6.5% on a 0.9% revenue increase year over
year, despite continued weakness at the publishing business and a
modest decline at membership services. Revenue in the retail
segment was up 3.8% on a 5.3% increase in same-store sales during
the quarter. Membership services, which accounts for 30% of
overall sales, reported a 1.4% revenue decline because of a change
in timing of an annual event. The EBITDA margin for the 12 months
ended June 30, 2010, was 11.1%, down from 11.4% in the prior-year
period.
AGY HOLDING: Files 10-Q; Posts Q2 2010 Net Loss of $5.9 Million
---------------------------------------------------------------
AGY Holding Corp. filed on August 16, 2010, its quarterly report
on Form 10-Q, reporting a net loss of $5.9 million for the three
months ended June 30, 2010, compared with a net loss of
$32.7 million for the same period of 2009.
Net sales increased $16.5 million, or 50.3%, to $49.3 million for
the three months ended June 30, 2010, compared to $32.8 million
during the comparable quarter of 2009.
The Company reported a loss from operations for the second quarter
of 2010 of $3.2 million, compared to loss from operations of
$56.6 million reported in the second quarter of 2009. The second
quarter 2009 operating loss was significantly impacted by a non-
cash goodwill impairment charge of $44.5 million, partly offset by
a $22.5 million non-cash gain in connection with the bargain
purchase related to the AGY Asia acquisition, as well as non-
recurring expenses associated with management's decision to
curtail production capacity and lower inventory levels in order to
improve liquidity.
Total debt was $234.1 million at June 30, 2010, compared to
$232.5 million at December 31, 2009.
At June 30, 2010, AGY US had total liquidity of $20.6 million,
consisting of $400,000 in unrestricted cash and roughly
$20.2 million of borrowing availability under the Company's
$40 million Senior Secured Revolving Credit Facility. At June 30,
2010, AGY Asia had total liquidity of $9.3 million, consisting of
$3.4 million of unrestricted cash and roughly $5.9 million of
borrowing availability under the AGY Asia Credit Facility with the
Bank of Shanghai.
Based upon its current and anticipated levels of operations, the
Company believes that its cash flows from operations and from the
monetization of excess alloy metals, together with availability
under its credit facilities for its US and Asian segments, will be
adequate to meet its liquidity needs for the next twelve months.
The Company's balance sheet as of June 30, 2010, showed
$315.7 million in total assets, $289.5 million in total
liabilities, $3.6 million in Obligation Under Put/Call for
Noncontrolling Interest, and a stockholders' equity of
$22.6 million.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?698d
About AGY Holding
AGY Holding Corp. -- http://www.agy.com/-- produces fiberglass
yarns and high-strength fiberglass reinforcements used in a
variety of composites applications. AGY serves a diverse range of
markets including aerospace, defense, electronics, construction
and industrial. Headquartered in Aiken, South Carolina, AGY has a
European office in Lyon, France and manufacturing facilities in
the U.S. in Aiken, South Carolina and Huntingdon, Pennsylvania and
a controlling interest in a manufacturing facility in Shanghai,
China.
* * *
AGY Holding carries a 'CCC+' corporate credit rating from Standard
& Poor's Ratings Services. In December 2009, S&P lowered the
rating to 'CCC+' from 'B'. "The downgrade follows S&P's ongoing
concern on operating performance, including S&P's expectation for
very weak credit metrics for 2009, weak liquidity relative to
interest payments and operating requirements in 2010, and
integration concerns related to the large $72 million acquisition
-- with a $20 million cash component -- of AGY Hong Kong Ltd.,"
said Standard & Poor's credit analyst Paul Kurias.
AMBAC FIN'L: Shares Lost Quarter of Value Amid Likely Bankruptcy
----------------------------------------------------------------
Dow Jones Newswires' Alistair Barr reports that Ambac Financial
Group Inc. shares have lost about a quarter of their value last
week as investors position for a possible bankruptcy filing by the
troubled bond insurer.
Ambac Financial Group, the holding company, said Aug. 9 that it's
pursuing a restructuring of its outstanding debt through a
prepackaged bankruptcy proceeding. Ratings agency Moody's
Investors Service last week said a prepackaged bankruptcy filing
for Ambac's holding company, in which major creditors and other
stakeholders agree on a restructuring ahead of time, would save
time and money in court.
"Part of Ambac's restructuring would likely involve creditors
exchanging their debt for Ambac Financial Group's common stock,"
Moody's senior analyst Helen Remeza wrote in a note to investors,
according to Dow Jones. "As a result, creditors may emerge as new
owners of Ambac Financial Group, and they could influence the
insurance subsidiaries' operation."
Dow Jones relates Ambac Financial Group has already been swapping
some of its debt for new equity. In June, the company said it
issued 13.6 million shares of its common stock in exchange for
$20.3 million in aggregate principal amount of its 9-3/8%
debentures, due August 2011.
According to Dow Jones, it is not clear which debt holders agreed
to the exchanges. However, Brigade Capital Management, a credit
hedge fund firm run by Donald Morgan, held a new 2.3% equity stake
in Ambac Financial Group at the end of June, according to a
regulatory filing last week. That made Brigade Ambac's fourth-
largest shareholder, according to FactSet.
Brigade, which declined to comment Thursday, specializes in high-
yield capital structure arbitrage, according to FactSet. This
strategy involves spotting anomalies in the valuation of different
parts of a company's capital structure.
Dow Jones relates while Ambac Financial Group's common stock has
slumped well below $1 in recent months, there are billions of
dollars of debt and other fixed-income securities related to the
company and its subsidiaries that can be used to trade and hedge.
According to Dow Jones, Ambac shares remain quite heavily traded,
and this activity may be driven by such strategies.
Dow Jones notes Ambac's main subsidiary, Ambac Assurance Corp.,
has been hit hard by the housing meltdown and financial crisis.
The insurer sold lots of guarantees on mortgage-related securities
that went sour when home prices fell.
The main regulator of Ambac Assurance seized the most troubled
part of its business earlier this year to protect policyholders.
A bankruptcy filing by Ambac's holding company probably won't have
a direct material effect on subsidiaries like Ambac Assurance and
their policyholders, Moody's Ms. Remeza said, according to Dow
Jones. Indeed, recent developments have been positive for many of
Ambac's policyholders, she added.
Ambac's holding company isn't in such great shape. It has no
access to dividends from insurance subsidiaries and faces about
$122 million of debt that needs to be repaid in August 2011, Ms.
Remeza noted.
Ambac Financial Group shares fell 4.5% to 53 cents on Thursday,
leaving them down 25%, Dow Jones notes. The shares fell further
to $0.518 as of the close of business Friday.
About Ambac Financial
Headquartered in New York, Ambac Financial Group, Inc., through
its subsidiaries, provided financial guarantees and financial
services to clients in both the public and private sectors around
the world.
KPMG LLP, in New York, expressed substantial doubt about the
Company's ability to continue as a going concern, following the
Company's 2009 financial results. The independent auditors noted
of the significant deterioration of Ambac's guaranteed portfolio
coupled with the inability to write new financial guarantees has
adversely impacted the business, results of operations and
financial condition of the Company's operating subsidiary. KPMG
also noted of the Company's limited liquidity.
Ambac Financial noted in its Form 10-Q for the quarter ended June
30, 2010 that its liquidity and solvency are largely dependent on
dividends principal financial guarantee operating subsidiary,
Ambac Assurance Corporation, and on the value of the subsidiary.
Ambac Financial said that Ambac Assurance is "highly unlikely" to
be able to make dividend payments to Ambac for the foreseeable
future. Ambac Financial said it is currently pursuing raising
additional capital and is also pursuing a restructuring of its
outstanding debt through a prepackaged bankruptcy proceeding.
The Company's balance sheet at June 30, 2010, showed
$30.05 billion in total assets, $31.47 billion in total
liabilities, and $1.42 billion in total stockholders' deficit.
ANDERSON NEWS: Asks Judge to Reconsider Decision on Collusion Suit
------------------------------------------------------------------
Anderson News LLC has asked Judge Paul Crotty to reconsider his
decision to toss its collusion suit against a host of single-issue
magazine publishers including Time Inc., Rodale Inc. and American
Media Inc., Bankruptcy Law360 reports. According to Law360,
Anderson said Judge Crotty made critical factual errors in his
opinion throwing out the case on Aug. 2, according to the
company's motion filed Monday.
About Anderson News
Anderson News LLC is a sales and marketing company for books and
magazines. In March 2009, Anderson News LLC's creditors filed
petitions for the Company's bankruptcy in the U.S. Bankruptcy
Court for the District of Delaware. The publishing companies
claimed that Anderson News owes them a combined $37.5 million.
ANTHONY BRONGE: Case Summary & 16 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Anthony Bronge
Sandy Bronge
720 Blackhawk
Marengo, IL 60152
Bankruptcy Case No.: 10-74108
Chapter 11 Petition Date: August 17, 2010
Court: U.S. Bankruptcy Court
Northern District of Illinois (Rockford)
Judge: Manuel Barbosa
Debtors' Counsel: James P. Mullally, Esq.
FRANKS GERKIN & MCKENNA PC
19333 E. Grant
P.O. Box 5
Marengo, IL 60152-0005
E-mail: ghayes@fgmlaw.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Joint Debtors' 16 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ilnb10-74108.pdf
Debtor-affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Detail Concrete, Inc 10-70176 01/20/10
ARENA FOOTBALL: Former Owners Dispute Insolvency Claim
------------------------------------------------------
Brandon Wright, correspondent for The St. Petersburg (Fla.) Times,
reports that Peter "Woody" Kern, the former owner of football team
Tampa Bay Storm, and coach Tim Marcum are filing a lawsuit in
Hillsborough County Circuit Court alleging that former owner Dr.
Robert Nucci failed to meet payment obligations. Dr. Nucci
purchased the team from Mr. Kern, who currently owns the Dallas
Vigilantes, for a reported $18.9 million in 2007. A payment
scheduled for July 15 had not been made, said attorney Patrick F.
Sprague, Esq., who represents Messrs. Kern and Marcum.
Mr. Sprague said Wednesday the paperwork "is out of my office and
should be (in court this) morning."
The Times reports that Dr. Nucci sued Kern, Marcum, the league and
the current owners -- Tampa Bay Storm Partners -- in June, saying
they knew about the former arena league's insolvency and deceived
him into buying a worthless franchise. Dr. Nucci owned the Storm
through the 2008 season. In 2009, the former league filed for
bankruptcy and suspended play.
The Times relates the rights to the teams and markets were sold to
Arena Football One for $6.1 million, and the old league was
dissolved.
The Troubled Company Reporter, citing Our Sports Central, reported
on December 10, 2009, that the Hon. Susan Sonderby of the U.S.
Bankruptcy Court in Chicago approved the sale of Arena Football
League's assets -- including all AFL and former af2 team names and
logos -- to Arena Football One LLC. AF1 offered $2.5 million for
the assets. The offer was subject to competing bids at an auction
scheduled for Nov. 25.
About Arena Football League
The Arena Football League was founded in 1987 as an American
football indoor league by Jim Foster. It is played indoors on a
smaller field than American football, resulting in a faster and
higher-scoring game. Almost two months after the New Orleans
Voodoo folded on the league's owners chose to cancel the 2009
season to work on developing a long-term plan to improve its
economic model.
As reported by the TCR on August 14, 2009, Arena Football League
LLC was sent to Chapter 7 liquidation on August 7 by creditors
owed a total of $300,000. The involuntary petition was signed by
Gridiron Enterprises Inc., Johnson & Bell Ltd., and Sheraton New
Orleans Hotel. Gridiron is the largest of the three creditors,
with $272,000 owed to it. Attorney Richard Lauter of Freeborn &
Peters LLP in Chicago is representing the petitioners.
Judge Susan Pierson Sonderby converted the case to a voluntary
Chapter 11 on Aug. 26 ((Bankr. N.D. Ill. Case No. 09-29024).
AVAYA INC: Bank Debt Trades at 12% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which Avaya, Inc., is a
borrower traded in the secondary market at 88.44 cents-on-the-
dollar during the week ended Friday, August 20, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.47 percentage points
from the previous week, The Journal relates. The Company pays 275
basis points above LIBOR to borrow under the credit facility,
which matures on October 26, 2014. The loan is not rated by
Moody's and Standard & Poor's. The loan is one of the biggest
gainers and losers among 209 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
Avaya, Inc., based in Basking Ridge, New Jersey, is a supplier of
communications systems and software for enterprise customers.
The Troubled Company Reporter stated on December 23, 2009, that
Moody's downgraded Avaya's corporate family rating to 'B3' from
'B2'. The downgrade was driven by challenges presented by the
acquisition of Nortel's enterprise assets as well as the large
amount of additional debt incurred to finance the acquisition
(around $1 billion).
BARCALOUNGER CORP: Can Sell Remaining Assets for $1.9 Million
-------------------------------------------------------------
Dow Jones DBR Small Cap reports that Barcalounger Corp. is selling
the remains of its reclining chair business to a trio of bidders
led by an affiliate of the company's private-equity owner, Hancock
Park Associates. Dow Jones says Barcalounger Corp. won court
approval to sell the assets for $1.9 million.
Barcalounger Corp. is a furniture maker from Martinsville,
Virginia. Barcalounger designs and manufactures recliners; its
American of Martinsville Inc. unit is engaged in the design and
contract manufacture of case goods and upholstered furniture for
the hospitality and healthcare markets.
Barcalounger filed for Chapter 11 bankruptcy protection on May 19,
2010 (Bankr. D. Del. Case No. 10-11637). Christopher A. Ward,
Esq., at Polsinelli Shughart PC, assists the Company in its
restructuring effort. The Company estimated $1 million to $10
million in assets and $10 million to $50 million in debts.
The Companies experienced significantly lower than anticipated
operating profits for the past two years, due primarily to the
economic downturn and the attendant drop in furniture sales in
general. Partially as a result, Barcalounger was unable to
maintain adequate liquidity to continue as a going concern under
present ownership.
BIOJECT MEDICAL: Reports $556,000 Net Loss for Second Quarter
-------------------------------------------------------------
Bioject Medical Technologies Inc. incurred a net loss of $556,074
for three months ended June 30, 2010, compared with a net loss of
$300,000 in the second quarter of 2009, according to the Form 10-Q
filed by the Company with the Securities and Exchange Commission.
As reported in the TCR on Aug. 10, 2010, the Company in an
earnings release that it had revenues of $1.157 million for the
quarter ended June 30, 2010, compared with revenues of
$1.675 million in the comparable 2009 period.
The Company's balance sheet at June 30, 2010, revealed
$3.99 million in total assets, $1.82 million in total current
liabilities, $1.22 million in deferred revenue, $349,999 in other
long-term liabilities, and a stockholder's equity of $599,883.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6958
A full-text copy of the Company's earnings release is available
for fee at http://ResearchArchives.com/t/s?682a
About Bioject Medical
Bioject Medical Technologies Inc. (OTCBB: BJCT) --
http://www.bioject.com/-- based in Portland, Oregon, is an
innovative developer and manufacturer of needle-free injection
therapy systems. The Company is focused on developing mutually
beneficial agreements with leading pharmaceutical, biotechnology,
and veterinary companies.
* * *
Moss Adams LLP, in Portland, Oregon, which audited the Company's
2009 results, expressed substantial doubt about the Company's
ability to continue as a going concern. The auditor noted that
the Company has suffered recurring losses, has had significant
recurring negative cash flows from operations, and has an
accumulated deficit.
BIO-KEY INT'L: Needs Commercialization of Technology to Be Viable
-----------------------------------------------------------------
BIO-key International Inc. reported net income of $234,766 for the
quarter ended June 30, 2010, compared with net income of $139,770
for the second quarter of 2009. Revenue for the three months
ended June 30, 2010, was $1,433,051 compared to $280,685 in the
same period last year, an increase of 411%. Driving this increase
in sales were higher service and licensing sales to both new and
existing customers.
The Company's balance sheet at June 30, 2010, showed $6,865,887 in
total assets, $1,865,592 in total liabilities, and a $2,051,468
stockholders' equity.
CCR LLP, in Westborough, Mass., after auditing the Company's 2009
results, expressed substantial doubt about the Company's ability
to continue as a going concern. The independent auditors noted of
the Company's substantial net losses in recent years and
accumulated deficit.
In its Form 10-Q for the June 30 quarter, BIO-key said, "Our long-
term viability and growth will depend upon the successful
commercialization of our technologies and our ability to obtain
adequate financing. In addition, the ongoing financial crisis in
the global capital markets and the current negative global
economic trends have had an adverse impact on market participants
including, among other things, volatility in security prices,
diminished liquidity, and limited access to financing. These
events could, therefore, affect our efforts to commercialize our
technology and to obtain adequate financing."
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6959
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?676c
About BIO-key
Wall, N.J.-based BIO-key International, Inc. (OTC BB: BKYI)
-- http://www.bio-key.com/-- develops and markets fingerprint
identification biometric technology and software.
BONIFER PARUNGAO: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Joint Debtors: Bonifer Puno Parungao
Marilou Miranda Parungao
17011 Gledhill Street
Northridge, CA 91325
Tel: (714) 938-3887
Bankruptcy Case No.: 10-20131
Chapter 11 Petition Date: August 16, 2010
Court: United States Bankruptcy Court
Central District Of California (San Fernando Valley)
Debtor's Counsel: Anthony Cartee, Esq.
ANTHONY CARTEE A LAW CORP
600 Anton Blvd., 11th Floor
Costa Mesa, CA 92626
Tel: (714) 371-4089
Fax: (714) 371-4001
E-mail: acartee@ac-legal.com
Estimated Assets: $50,001 to $100,000
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/cacb10-20131.pdf
BOSTON GENERATING: Case Summary & 20 Largest Unsec. Creditors
-------------------------------------------------------------
Debtor: Boston Generating, LLC
505 Fifth Avenue
21st Floor
New York, N.Y. 10017
Bankruptcy Case No.: 10-14419
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
EBG Holdings LLC 10-14417
Fore River Development, LLC 10-14420
Mystic, LLC 10-14421
Mystic Development, LLC 10-14422
BG New England Power Services, Inc. 10-14423
BG Boston Services, LLC 10-14424
Type of Business: Privately-held Boston Generating owns nearly
3,000 megawatts of mostly modern natural
gas-fired power plants in the Boston area.
It is an indirect subsidiary of US Power
Generating Co., and considers itself as the
third-largest fleet of plants in New England.
Chapter 11 Petition Date: August 18, 2010
Bankruptcy Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Debtors' Counsel: D. J. Baker, Esq.
LATHAM & WATKINS LLP
885 Third Avenue
New York, NY 10022-4834
Tel: (212) 906-1200
Fax: (212) 751-4864
E-mail: dj.baker@lw.co
Debtors'
Investment
Banker: JP Morgan Securities
Debtors'
Financial
Advisor: Perella Weinberg Partners, LP
Debtors'
Regulatory
Counsel: Brown Rudnick LLP
Debtors'
Restructuring
Consultant: FTI Consulting, Inc.
Debtors'
Conflicts
Counsel: Anderson Kill & Olick, P.C.
Debtors'
Claims Agent: The Garden City Group, Inc.
Estimated Assets: More than $1 billion
Estimated Debts: More than $1 billion
The petition was signed by Jeff Hunter, vice president and chief
financial officer.
Debtor's List of 30 Largest Unsecured Creditors:
Entity/Person Nature of Claim Claim Amount
------------- --------------- ------------
Credit Suisse, Cayman Islands Unsecured Term $426,999,996
Branch Loan Debt
Distrigas of Massachusetts LLC Trade Debt $50,655,331
Stroock & Stroock &
Lavan LLP
180 Maiden Lane
New York, NY 10038
Credit Suisse Energy LLC Trade Debt $36,905,023
Eleven Madison Avenue
10th Floor
New York, New York
10010
Sempra Tooling Trade Debt $9,374,733
Mitsubishi Power Systems Trade Debt $4,176,788
Inc.
Spectra Energy Trade Debts $1,159,803
NSTAR Trade Debts $1,003,741
Pension Benefit Guaranty Pension $987,383
City of Everett Trade Debt $373,386
National Grid Trade Debt $320,889
Exxon Mobile Trade Debt $235,185
Borden & Remington Trade Debt $209,907
Corporation
O'Connor Corp Trade Debt $89,492
Integrated IT Solutions Trade Debt $85,136
Derchert LLP Services $85,000
City of Quincy Trade Debt $84,809
Andrews International Trade Debt $71,662
New England Controls, Trade Debt $51,760
Inc.
Clear Harbors Trade Debt $50,816
Control Components, Inc. Trade Debt $45,050
Chalmers & Kubeck North Services $41,339
Air Industrial Park
Atlantic Contracting & Trade Debt $35,297
Special
Standard & Poors Trade Debt $32,000
Mechanical Dynamics & Trade Debt $28,560
Analysis
Adams Valves, Inc. Trade Debt $28,047
Stallion Companies LLC Trade Debt $25,000
Mitchell Services, Inc. Trade Debt $23,000
Capco Crane & Hoist, Inc. Trade Debt $22,290
Keystone Engineering Corp. Trade Debt $21,423
HF Controls LP Trade Debt $21,000
BRANDTVILLE SERVICE: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Brandtville Service, Inc.
317 E. Chestnut Street
Bloomington, IL 61701
Bankruptcy Case No.: 10-72563
Chapter 11 Petition Date: August 17, 2010
Court: U.S. Bankruptcy Court
Central District of Illinois (Springfield)
Judge: Mary P. Gorman
Debtor's Counsel: Sumner Bourne, Esq.
411 Hamilton Boulevard, #1600
Peoria, IL 61602
Tel: (309) 673-5535
E-mail: sbnotice@mtco.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 Timothy J. Maurer, secretary.
BRENTWOOD OKEECHOBEE: Case Summary & Creditors List
---------------------------------------------------
Debtor: Brentwood Okeechobee, LLC
dba Pier II Resort
2200 US Highway 441 SE
Okeechobee, FL 34974
Bankruptcy Case No.: 10-34278
Chapter 11 Petition Date: August 17, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Paul G. Hyman, Jr.
Debtor's Counsel: Bradley S. Shraiberg, Esq.
2385 NW Executive Center Drive, #300
Boca Raton, FL 33431
Tel: (561) 443-0801
Fax: (561) 998-0047
E-mail: bshraiberg@sfl-pa.com
Scheduled Assets: $2,300,000
Scheduled Debts: $4,067,181
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flsb10-34278.pdf
The petition was signed by Suketu Patel, managing member.
BRIDGEVIEW OFFICE: Case Summary & 19 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Bridgeview Office Park, LLC
6817 River Road
New Hope, Pa 18938
Bankruptcy Case No.: 10-16801
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Eric L. Frank
Debtor's Counsel: Albert A. Ciardi, III, Esq.
CIARDI CIARDI & ASTIN, P.C.
One Commerce Square
2005 Market Street, Suite 1930
Philadelphia, PA 19103
Tel: (215) 557-3550
Fax: (215) 557-3551
E-mail: aciardi@ciardilaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 19 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/paeb10-16801.pdf
The petition was signed by William L. Messick.
BRUNO MACHINERY: Insiders Must Return $185,865 to Estate
--------------------------------------------------------
WestLaw reports that a Chapter 11 debtor's loan repayments to
corporate insiders over the one-year period preceding the petition
date, while not made in response to any unusual collection
efforts, were not made in the "ordinary course of business or
financial affairs" of the debtor and insiders. Thus, the insiders
could not successfully assert an "ordinary course of business"
defense to the debtor-in-possession's preference claims. The
average amount of payments during the insider preference period
jumped by 85 percent from the average amount of the debtor's
payments during pre-preference period. So too, the average time
between the debtor's execution of notes and its payments thereon
also shortened by nearly 50 percent during the insider preference
period. In re Bruno Machinery Corp., --- B.R. ----, 2010 WL
2403124 (Bankr. N.D.N.Y.) (Littlefield, J.).
Bruno Machinery Corporation, majority owned by Robert F. Bruno,
Sr., and 35% owned by Unified Holdings, LLC, manufactured and sold
presses for a variety of industries. BMC also performed die-
cutting services for 3M Company at BMC's facilities in Troy, N.Y.
Those services were governed by a contract that BMC and 3M renewed
annually. Briefly, BMC used a Sheridan mechanical press upon
which it mounted cutting dies, supplied by 3M, to cut turn arrows,
lane markings, and other reflective decals into materials supplied
by 3M. In the late-1990s, when BMC spun off its die-cutting
business to form Troy Die Cutting, Inc., a separate entity owned
by Bruno's two adult sons, Robert F. Bruno, Jr. and Sean Bruno.
Bruno Machinery Corporation filed a voluntary Chapter 11
bankruptcy petition (Bankr. N.D.N.Y. Case No. 05-20412) on
December 27, 2005. On September 14, 2006, the court directed the
United States Trustee to select and appoint a Trustee pursuant to
11 U.S.C. Sec. 1104. The court approved the appointment of Paul
A. Levine, Esq., as the Chapter 11 Trustee. BMC and Unified filed
competing plans of reorganization, with Unified's plan ultimately
being confirmed on October 26, 2006. The Trustee was discharged
and BMC was authorized to operate its business and manage its
property as the reorganized debtor, as well as prosecute avoidance
actions. BMC then sued (Bankr. N.D.N.Y. Adv. Pro. No. 07-90028)
Troy Die Cutting Company and Herbert Chorbajian to avoid certain
alleged preferential transfers and fraudulent conveyances and to
recover transferred property pursuant to 11 U.S.C. Secs. 544, 547
and 550, and sections 273-276 of the New York Debtor and Creditor
Law.
Following a trial, the Honorable Robert E. Littlefield rendered
judgment in favor of BMC in the amount of $185,864.91, and says
that BMC is entitled to prejudgment interest at a rate of 1.94
percent per year, running from the date of the commencement of the
adversary proceeding, and post-judgment interest as calculated
under the federal rate.
BUTTE COMMUNITY BANK: Closed; Rabobank Assumes All Deposits
-----------------------------------------------------------
Butte Community Bankof Chico, Calif., and Pacific State Bank of
Stockton, Calif., were closed on Friday, August 20, 2010, by the
California Department of Financial Institutions, which then
appointed the Federal Deposit Insurance Corporation as receiver
for the two banks. To protect depositors, the FDIC entered into
purchase and assumption agreements with Rabobank, National
Association of El Centro, Calif., to assume all the deposits and
essentially all the assets of the two failed banks, which were not
affiliated with one another.
Collectively, the failed banks operated 23 branches, which will
reopen as branches of Rabobank, National Association, under their
normal business hours. Butte Community Bank has 14 branches, and
Pacific State Bank has nine branches. Depositors will
automatically become depositors of Rabobank, National Association.
Deposits will continue to be insured by the FDIC, so there is no
need for customers to change their banking relationship to retain
their deposit insurance coverage.
As of June 30, 2010, Butte Community Bank had total assets of
$498.8 million and total deposits of $471.3 million; and Pacific
State Bank had total assets of $312.1 million and total deposits
of $278.8 million. Rabobank, National Association will pay the
FDIC a premium of 4.05 percent to assume all of the deposits of
Butte Community Bank, but it did not pay the FDIC a premium for
the deposits of Pacific State Bank.
The FDIC and Rabobank, National Association entered into loss-
share transactions on $425.4 million of Butte Community Bank's
assets; and $249.7 million of Pacific State Bank's assets.
Rabobank, National Association will share in the losses on the
asset pools covered under the loss-share agreement. The loss-
share transaction is projected to maximize returns on the assets
covered by keeping them in the private sector. The transaction
also is expected to minimize disruptions for loan customers. For
more information on loss share, visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html
Customers who have questions about the transactions can call the
FDIC toll free: for Butte Community Bank customers, 1-800-450-
5417; and for Pacific State Bank customers, 1-800-640-2693.
Interested parties also can visit the FDIC's Web sites:
for Butte Community Bank:
http://www.fdic.gov/bank/individual/failed/butte.html
and for Pacific State Bank:
http://www.fdic.gov/bank/individual/failed/pacificbk.html
The FDIC estimates that the cost to the Deposit Insurance Fund for
Butte Community Bank will be $17.4 million; and for Pacific State
Bank, $32.6 million. Compared to other alternatives, Rabobank,
National Association's acquisition was the least costly resolution
for the FDIC's DIF.
These closings bring the total for the year to 116 banks in the
nation, and the seventh and eighth in California. Prior to these
failures, the last FDIC-insured bank closed in the state was
Granite Community Bank, National Association, Granite Bay, on
May 28, 2010.
CARIBBEAN PETROLEUM: Section 341(a) Meeting Scheduled for Sept. 16
------------------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of Caribbean
Petroleum Corp., et al.'s creditors on September 16, 2010, at
10:00 a.m. The meeting will be held at J. Caleb Boggs Federal
Building, 2nd Floor, Room 2112, Wilmington, Delaware 19801.
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 Juan, Puerto Rico-based Caribbean Petroleum Corporation aka
CAPECO owns and operates certain facilities in Bayomon, Puerto
Rico for the import, offloading, storage and distribution of
petroleum products. It filed for Chapter 11 protection on
August 12, 2010 (Bankr. D. Del. Case No. 10-12553). Jason M.
Madron, Esq., at Richards, Layton & Finger, P.A., assists the
Debtor in its restructuring effort. The Debtor's co-counsel is
Cadwalader, Wickersham & Taft LLP. The Debtor's financial advisor
is FTI Consulting Inc. The Debtor's chief restructuring officer
is Kevin Lavin of FTI Consulting Inc. The Debtor estimated its
assets at $100 million to $500 million and its debts at
$500 million to $1 billion as of the Petition Date.
Affiliates Caribbean Petroleum Refining, L.P., and Gulf Petroleum
Refining (Puerto Rico) Corporation filed separate Chapter 11
petitions on August 12, 2010.
CARIBBEAN PETROLEUM: Wants Filing of Schedules Extended to 60 Days
------------------------------------------------------------------
Caribbean Petroleum Corp. and its units ask the U.S. Bankruptcy
Court for the District of Delaware to extend the deadline to file
the schedules of assets and liabilities to 60 days after the
Petition Date.
The Debtors say that given the amount of work entailed in
completing the schedules, and the competing demands upon the
Debtors' limited staff to address numerous critical operational
matters during the initial postpetition period, they won't be able
to properly and accurately complete the schedules within the
required 30-day period.
San Juan, Puerto Rico-based Caribbean Petroleum Corporation aka
CAPECO owns and operates certain facilities in Bayomon, Puerto
Rico for the import, offloading, storage and distribution of
petroleum products. It filed for Chapter 11 protection on
August 12, 2010 (Bankr. D. Del. Case No. 10-12553). Jason M.
Madron, Esq., at Richards, Layton & Finger, P.A., assists the
Debtor in its restructuring effort. The Debtor's co-counsel is
Cadwalader, Wickersham & Taft LLP. The Debtor's financial advisor
is FTI Consulting Inc. The Debtor's chief restructuring officer
is Kevin Lavin of FTI Consulting Inc. The Debtor estimated its
assets at $100 million to $500 million and its debts at
$500 million to $1 billion as of the Petition Date.
Affiliates Caribbean Petroleum Refining, L.P., and Gulf Petroleum
Refining (Puerto Rico) Corporation filed separate Chapter 11
petitions on August 12, 2010.
CENTERVILLE PARTNERS: Case Summary & 12 Largest Unsec Creditors
---------------------------------------------------------------
Debtor: Centerville Partners, LC
8703 Mount Majestic Road
Sandy, UT 84093
Bankruptcy Case No.: 10-30978
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
District of Utah (Salt Lake City)
Judge: Joel T. Marker
Debtor's Counsel: Stephen G. Stoker, Esq.
STOKER SWINTON & CANNON
311 South State Street, Suite 400
Salt Lake City, UT 84111
Tel: (801) 359-4000
Fax: (801) 359-4004
E-mail: sgstoker@ssc-law.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A list of the Company's 12 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/utb10-30978.pdf
The petition was signed by Richard D. Lloyd, manager.
CES ENVIRONMENTAL: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: CES Environmental Services, Inc.
c/o Alan S. Gerger
Dunn, Neal & Gerger, LLP
3050 Post Oak Blvd., Suite 400
Houston, TX 77056
Bankruptcy Case No.: 10-36924
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Jeff Bohm
Debtor's Counsel: Alan Sanford Gerger, Esq.
DUNN, NEAL & GERGER, LLP
3050 Post Oak Blvd., Suite 400
Houston, TX 77056
Tel: (713) 403-7400
Fax: (713) 960-0204
E-mail: bkpfilings@dnglegal.com
Estimated Assets: $0 to $50,000
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/txsb10-36924.pdf
The petition was signed by Matt Bowman, president.
CHARTWELL INTERNATIONAL: Voluntary Chapter 11 Case Summary
----------------------------------------------------------
Debtor: Chartwell International, Inc,
7637 Leesburg Pike
Falls Church, VA 22403
Bankruptcy Case No.: 10-37462
Chapter 11 Petition Date: August 16, 2010
Court: United States Bankruptcy Court
Southern District of New York (Poughkeepsie)
Judge: Cecelia G. Morris
Debtor's Counsel: Brian Guillorn, Esq.
515 Madison Avenue, Suite 1118
New York, NY 10022
Tel: (212) 588-9174
Fax: (212) 588-9175
E-mail: bguillorn@aol.com
Scheduled Assets: $1,368,500
Scheduled Debts: $5,148,237
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Imre Eszenyi, chairman.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Middletown and New Jersey RR Comp 10-37378 08/06/2010
CHOA VISION: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: CHOA Vision, LLC
3699 Wilshire Boulevard, Suite 720
Los Angeles, CA 90010
Bankruptcy Case No.: 10-44798
Chapter 11 Petition Date: August 18, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Richard M. Neiter
Debtor's Counsel: Michael Jay Berger, Esq.
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212-2929
Tel: (310) 271-6223
Fax: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Gene Choe, managing member.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Zep, Inc. Unpaid Vendor $2,727,849
1310 Seaboard Industrial Drive
Atlanta, GA 30318
City of Hartford Property Taxes $798,992
550 Main Street
Hartford, CT 06103
City of Hartford Property Taxes $351,531
550 Main Street
Hartford, CT 06103
InterContinental Hotels Group Franchise Fees $342,934
3 Ravinia Drive, Suite 100
Atlanta, GA 30346
State of Connecticut Sales Taxes $300,000
Department of Revenue Services
25 Sigourney Street, Suite 2
Hartford, CT 06106
Hess Corporation Electricity Usage $162,000
City of Hartford Property Taxes $68,241
Metropolitan District Water Bill $36,000
Connecticut Light and Power Electricity $30,000
Delivery
US Foodservice Unpaid Vendor $23,739
Willis of Oregon, Inc. Unpaid Vendor $13,655
Greater Hartford C&V Bureau Unpaid Vendor $11,194
Lodgenet Interactive Corporation Unpaid Vendor $10,161
M3 Accounting Services Unpaid Vendor $9,907
Spark Energy Gas, L.P. Alternate Natural $9,000
Gas Supplier
City Line Distributors Unpaid Vendor $8,639
Carter Brothers, LLC Unpaid Vendor $7,072
Pullman & Comley, LLC Unpaid Legal Fees $6,521
One Communications Unpaid Vendor $6,237
American Hotel Register Company Unpaid Vendor $5,836
CHRISTENSEN REALTY: Files Schedules of Assets & Liabilities
-----------------------------------------------------------
Christensen Realty Investment, LLC, has filed with the U.S.
Bankruptcy Court for the District of Idaho its schedules of assets
and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $10,500,000
B. Personal Property $126,402
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $8,352,772
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $0
----------- -----------
TOTAL $10,626,402 $8,352,772
Boise, Idaho-based Christensen Realty & Investment, LLC, dba 9th &
Bannock Garage, filed for Chapter 11 protection on August 10, 2010
(Bankr. D. Idaho Case No. 10-02537). D. Blair Clark, Esq., at the
Law Offices of D. Blair Clark PLLC, assists the Debtor in its
restructuring effort.
CHRISTENSEN REALTY: Section 341(a) Meeting Scheduled for Sept. 10
-----------------------------------------------------------------
The U.S. Trustee for Region 18 will convene a meeting of
Christensen Realty Investment, LLC's creditors on September 10,
2010, at 10:00 a.m. The meeting will be held at Washington Group
Central Plaza, 720 Park Blvd., Suite 210, Boise, ID 83712.
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.
Boise, Idaho-based Christensen Realty & Investment, LLC, dba 9th &
Bannock Garage, filed for Chapter 11 protection on August 10, 2010
(Bankr. D. Idaho Case No. 10-02537). D. Blair Clark, Esq., at the
Law Offices of D. Blair Clark PLLC, assists the Debtor in its
restructuring effort. The Debtor estimated its assets at
$10 million to $50 million and its debts at $1 million to
$10 million as of the Petition Date.
CHRISTENSEN REALTY: Taps D. Blair as Bankruptcy Counsel
-------------------------------------------------------
Christensen Realty Investment LLC asks for authorization from the
U.S. Bankruptcy Court for the District of Idaho to employ the Law
Offices of D. Blair Clark PLLC as bankruptcy counsel.
D. Blair will:
(a) take all necessary action to protect and preserve the
estate of the Debtor, including the prosecution of
actions on the Debtor's behalf, the defense of any
actions commenced against the Debtor, the negotiation of
disputes in which the Debtor is involved, and the
preparation of objections to claims filed against the
estate; prepare on behalf of the Debtor, as debtor in
possession, all necessary motions, applications, answers,
orders, reports, and papers in connection with the
administration of the estate;
(b) prepare on behalf of the Debtor, as debtor-in-possession,
all necessary motions, applications, answers, orders,
reports, and papers in connection with the administration
of the estate;
(c) prosecute, on behalf of the Debtor, a proposed plan of
reorganization and all related transactions and any
revisions, amendments, etc., relating to same; and
(d) perform all other necessary legal services in connection
with this Chapter 11 case.
D. Blair will be paid based on the hourly rates of its personnel:
D. Blair Clark $230
Mary Beth Blair, Paralegal and
Certified Bankruptcy Assistant $75
Jeffrey P. Kaufman $175
D. Blair Clark, Esq., the principal of the Law Offices of D.
Blair, assures the Court that the firm is "disinterested" as that
term is defined in Section 101(14) of the Bankruptcy Code.
Boise, Idaho-based Christensen Realty & Investment, LLC, dba 9th &
Bannock Garage, filed for Chapter 11 protection on August 10, 2010
(Bankr. D. Idaho Case No. 10-02537). The Debtor estimated its
assets at $10 million to $50 million and its debts at $1 million
to $10 million as of the Petition Date.
CINEMARK INC: Bank Debt Trades at 1% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which Cinemark, Inc., is
a borrower traded in the secondary market at 98.85 cents-on-the-
dollar during the week ended Friday, August 20, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents an increase of 0.57 percentage
points from the previous week, The Journal relates. The Company
pays 325 basis points above LIBOR to borrow under the facility.
The bank loan matures on April 30, 2016, and carries Moody's Ba3
rating and Standard & Poor's BB- rating. The loan is one of the
biggest gainers and losers among 209 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
About Cinemark Holdings
Cinemark Holdings, Inc., which owns Cinemark, Inc., and Cinemark
USA, Inc. and is headquartered in Plano, Texas, is the United
States' third largest motion picture exhibitor with 294 theaters
and 3,830 screens in 39 states, and internationally (in 13
countries), mainly in Mexico, South and Central America, with a
further 130 theaters and 1,066 screens.
In April 2010, Moody's affirmed Cinemark, Inc.'s ratings,
including its 'B1' corporate family and probability of default
ratings, and 'SGL-1' speculative grade liquidity rating. The
existing 'Ba3' senior secured bank debt and 'B3' senior unsecured
bond ratings for Cinemark USA, Inc., were also affirmed. The
rating outlook remains positive.
CLAIRE'S STORES: Bank Debt Trades at 14% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Claire's Stores,
Inc., is a borrower traded in the secondary market at 85.88 cents-
on-the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 0.66
percentage points from the previous week, The Journal relates.
The Company pays 275 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 29, 2014, and carries
Moody's Caa2 rating and Standard & Poor's B- rating. The loan is
one of the biggest gainers and losers among 209 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
About Claire's Stores
Claire's Stores, Inc. -- http://www.clairestores.com/-- operates
as a specialty retailer of fashion accessories and jewelry for
preteens and teenagers, as well as for young adults in North
America and internationally. It offers jewelry products that
comprise costume jewelry, earrings, and ear piercing services; and
accessories, including fashion accessories, hair ornaments,
handbags, and novelty items.
Based in Pembroke Pines, Florida, Claire's Stores operates under
two brands: Claire's(R), which operates worldwide and Icing(R),
which operates only in North America. As of January 31, 2009,
Claire's Stores, Inc., operated 2,969 stores in North America and
Europe. Claire's Stores, Inc., also operates through its
subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a
50:50 joint venture with AEON, Co., Ltd. The Company also
franchises 198 stores in the Middle East, Turkey, Russia, South
Africa, Poland and Guatemala.
Claire's Stores, Inc., reported a net loss of $12,300,000 for the
three months ended May 1, 2010, from a net loss of $29,023,000 for
the three months ended May 2, 2009. Net sales were $322,077,000
for the three months ended May 1, 2010, from $293,098,000 for the
three months ended May 2, 2009.
At May 1, 2010, the Company had total assets of $2,828,167,000
against total current liabilities of $189,612,000; long-term debt
of $2,297,603,000; revolving credit facility of $194,000,000;
obligations under capital leases of $17,290,000; deferred tax
liability of $121,156,000; deferred rent expense of $22,680,000;
unfavorable lease obligations and other long-term liabilities of
$34,070,000; resulting in stockholder's deficit of $48,244,000.
CMP SUSQUEHANNA: Bank Debt Trades at 11% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which CMP Susquehanna
Corp. is a borrower traded in the secondary market at 88.95 cents-
on-the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 2.25
percentage points from the previous week, The Journal relates.
The Company pays 200 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 6, 2013, and carries
Moody's Caa1 rating and Standard & Poor's B- rating. The loan is
one of the biggest gainers and losers among 209 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
CMP Susquehanna Corp., headquartered in Atlanta, Georgia, is a
wholly owned subsidiary of Cumulus Media Partners LLC, the private
partnership formed by Cumulus Media, Inc. and a consortium of
private equity sponsors. CMP Susquehanna Corp. owns and operates
27 radio stations in nine markets in the U.S. The company's
reported revenues of $169 million for the year ended December 31,
2009.
CMP Susquehanna has 'Caa3' corporate family and probability of
default ratings from Moody's Investors Service. In April 2010,
Moody's placed the ratings under review for possible upgrade.
"The review is prompted by the expectation that performance will
improve in CMP's major markets in 2010 and combined with
restructuring activities completed in 2009, should result in
improved cash flow and reduced leverage. Covenants however remain
tight and leverage levels will likely remain very high."
COLETO CREEK: Bank Debt Trades at 11% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Coleto Creek Power
L.P. is a borrower traded in the secondary market at 88.85 cents-
on-the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 0.55
percentage points from the previous week, The Journal relates.
The Company pays 275 basis points above LIBOR to borrow under the
facility. The bank loan matures on June 28, 2013, and carries
Moody's B1 rating and Standard & Poor's B+ rating. The loan is
one of the biggest gainers and losers among 209 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
As reported by the Troubled Company Reporter on August 3, 2010,
Standard & Poor's affirmed its 'B+' rating on Coleto Creek Power
L.P.'s $735 million senior secured first-lien term loan due 2013,
$170 million synthetic letter of credit facility maturing 2013,
and $60 million working capital revolving facility maturing 2011.
The outlook is stable. The recovery rating is '2'.
"The 'B+' rating reflects a high debt burden, substantial
refinancing risk when the term loans mature in June 2013, and poor
merchant market conditions for the short to medium term," said
Standard & Poor's credit analyst Swami Venkataraman.
Coleto is an indirect, wholly owned partnership subsidiary of
International Power PLC (BB/Watch Dev/--) and owns the 632-
megawatt coal-fired Coleto plant in the Electric Reliability
Council of Texas region.
COMMUNITY NATIONAL: Closed; CenterState Bank Assumes Deposits
-------------------------------------------------------------
Community National Bank At Bartow of Bartow, Fla., and Independent
National Bank of Ocala, Fla., were closed on Friday, August 20,
2010, by the Office of the Comptroller of the Currency, which then
appointed the Federal Deposit Insurance Corporation as receiver
for the two banks. To protect depositors, the FDIC entered into
purchase and assumption agreements with CenterState Bank of
Florida, National Association, of Winter Haven, Fla., to assume
all the deposits and essentially all the assets of the two failed
banks, which were not affiliated with one another.
Collectively, the failed banks operated five branches, which will
reopen as branches of CenterState Bank of Florida, N.A., under
their normal business hours. Community National Bank At Bartow
has one branch, and Independent National Bank has four branches.
Depositors will automatically become depositors of CenterState
Bank of Florida, N.A. Deposits will continue to be insured by the
FDIC, so there is no need for customers to change their banking
relationship to retain their deposit insurance coverage.
As of June 30, 2010, Community National Bank At Bartow had total
assets of $67.9 million and total deposits of $63.7 million; and
Independent National Bank had total assets of $156.2 million and
total deposits of $141.9 million. CenterState Bank of Florida,
N.A. did not pay the FDIC a premium for the deposits of the two
failed banks.
The FDIC and CenterState Bank of Florida, N.A., entered into loss-
share transactions on $51.9 million of Community National Bank At
Bartow's assets; and $119.7 million of Independent National Bank's
assets. CenterState Bank of Florida, N.A., will share in the
losses on the asset pools covered under the loss-share agreement.
The loss-share transaction is projected to maximize returns on the
assets covered by keeping them in the private sector. The
transaction also is expected to minimize disruptions for loan
customers. For more information on loss share, visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html
Customers who have questions about the transactions can call the
FDIC toll free: for Community National Bank At Bartow customers,
1-800-450-5668; and for Independent National Bank customers, 1-
800-913-3058. Interested parties also can visit the FDIC's Web
sites:
for Community National Bank At Bartow:
http://www.fdic.gov/bank/individual/failed/cnbbartow.html
and for Independent National Bank:
http://www.fdic.gov/bank/individual/failed/inatbank.html.
The FDIC estimates that the cost to the Deposit Insurance Fund for
Community National Bank At Bartow will be $10.3 million; and for
Independent National Bank, $23.2 million. Compared to other
alternatives, CenterState Bank of Florida, N.A.'s acquisition was
the least costly resolution for the FDIC's DIF.
These closings bring the total for the year to 112 banks in the
nation, and the twenty-first and twenty-second in Florida. Prior
to these failures, the last FDIC-insured institution closed in the
state was Bayside Savings Bank, Port Saint Joe, on July 30, 2010.
COMVERSE TECHNOLOGY: S&P Cuts Corporate Credit Rating to 'B-'
-------------------------------------------------------------
S&P downgrades corporate credit ratings to 'B-'. S&P subsequently
withdrew the ratings.
CORD BLOOD: Delays Filing of Form 10-Q for June 30 Quarter
----------------------------------------------------------
Cord Blood America Inc. aid it could not timely file its quarterly
report on Form 10-Q for the period ended June 30, 2010. Cord
Blood told the Securities and Exchange Commission that the
compilation, dissemination and review of the information required
to be presented in the Form 10-Q for the relevant period has
imposed time constraints.
About Cord Blood America
Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily
a holding company whose subsidiaries include Cord Partners, Inc.,
CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc.
D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel
Inc, D/B/A Rainmakers International. Cord specializes in
providing private cord blood stem cell preservation services to
families. BodyCells is a developmental stage company and intends
to be in the business of collecting, processing and preserving
peripheral blood and adipose tissue stem cells allowing
individuals to privately preserve their stem cells for potential
future use in stem cell therapy. Properties was formed to hold
the corporate trademarks and other intellectual property of CBAI.
Rain specializes in creating direct response television and radio
advertising campaigns, including media placement and commercial
production.
The Company's balance sheet at March 31, 2010, revealed
$5,754,702 in total assets, $6,709,374 in total liabilities, all
current, and a stockholders' deficit of $954,672.
In its March 30, 2010 report, Rose, Snyder & Jacobs, in Encino,
California, said the Company's recurring operating losses,
continued cash burn, and insufficient working capital and
accumulated deficit at December 31, 2009, raise substantial doubt
about the Company's ability to continue as a going concern.
DANNY KEYS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Joint Debtors: Danny Lane Keys
dba Honey-Do Handyman Services
Timberline Resort
fdba Dian - Dan Enterprises, LLC
Janice D. Keys
80 Timberline Road
Crossville, TN 38571
Bankruptcy Case No.: 10-08554
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Middle District of Tennessee (Cookeville)
Debtor's Counsel: Steven L. Lefkovitz, Esq.
LAW OFFICES LEFKOVITZ & LEFKOVITZ
618 Church St., Suite 410
Nashville, TN 37219
Tel: (615) 256-8300
Fax: (615) 255-4516
E-mail: slefkovitz@lefkovitz.com
Scheduled Assets: $664,278
Scheduled Debts: $1,103,316
A list of the Joint Debtors' 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/tnmb10-08554.pdf
DAVID RANDALL: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: David Randall Maples
dba David Maples Construction Co. Inc.
Pamela Denise Maples
aka Pamela Gilreath Maples
102 Dogwood Circle
La Fayette, GA 30728
Bankruptcy Case No.: 10-14735
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Eastern District of Tennessee (Chattanooga)
Judge: Shelley D. Rucker
Debtor's Counsel: W. Thomas Bible, Jr., Esq.
LAW OFFICE OF W. THOMAS BIBLE, JR.
6918 Shallowford Rd., Suite 100
Chattanooga, TN 37421
Tel: (423) 424-3116
E-mail: melinda@tombiblelaw.com
Scheduled Assets: $3,018,099
Scheduled Debts: $4,595,715
A list of the Joint Debtors' 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/tneb10-14735.pdf
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
David Maple Construction Co, Inc. 10-14624 08/10/10
DAVITA INC: Fitch Affirms Issuer Default Rating at 'BB-'
--------------------------------------------------------
Fitch Ratings has affirmed the ratings of DaVita Inc.:
-- Issuer Default Rating at 'BB-';
-- Senior Secured Bank Credit Facility at 'BB+';
-- Senior Unsecured Notes at 'BB-';
-- Senior Subordinated Notes at 'B'.
The Rating Outlook is Stable. The ratings apply to approximately
$3.38 billion of debt outstanding as of June 30, 2010.
DaVita's ratings and Stable Outlook reflect these key rating
drivers:
-- The near-term potential for margin compression from
governmental reimbursement pressure, especially related to
the new bundling rule;
-- The historically acquisitive nature of the company's
operations and management's willingness to increase debt
leverage, despite recent conservatism;
-- DaVita's adequate liquidity position, good financial
flexibility, and ability to consistently generate meaningful
free cash flow; and
-- Long-term growth potential that is largely unaffected by
healthcare reform.
Near-Term Potential For Margin Pressure, New Bundling Rule:
On July 23, 2010, The Centers for Medicaid and Medicare Services
issued its final rule outlining the terms of its new bundled
Medicare End Stage Renal Disease prospective payment system. This
ruling will take effect Jan. 1, 2011. Most significantly, the new
bundling rule brings injectable drugs, including erythropoietin
stimulating agents, into the bundle. Medicare currently
reimburses ESRD treatment providers for these drugs on a per unit
basis, outside of the bundle. Fitch notes that ESAs account for
approximately 60% of separately billable services and 25% of the
total payment for ESRD services.
Top-line and margin pressure from the new bundling system is
probable for dialysis providers, as CMS estimates that the 2011
base rate per dialysis treatment will reimburse large dialysis
organizations at a level 3.7% lower than that at which the current
ESRD reimbursement system would have in 2011. Fitch believes that
DaVita can effectively mitigate this revenue pressure by using its
large scale and low operating leverage to manage costs and to
negotiate pricing for the products and services it uses, thereby
increasing profitability within the bundle.
Historically Acquisitive Operations:
The company has been operating in a relatively conservative manner
due to several factors, including some uncertainty surrounding the
industry's operating and financial outlook due to healthcare
reform and the pending switch to bundled Medicare reimbursement
for dialysis treatment. Although DaVita has historically been
highly acquisitive, this uncertainty, combined with recently high
asset valuations of potential targets, has somewhat curtailed M&A
activity.
Gross leverage for the latest 12-month period ending June 30, 2010
was 2.74 times (2.27x on a net leverage basis) - considerably
below the company's stated net leverage target range of 3.0x to
3.5x and relatively low for the current 'BB-' rating category.
Fitch expects gross debt leverage to hold relatively steady
between 2.6x and 2.8x for the year ending Dec. 31, 2010 before
increasing to within the lower end of the company's target range
in the medium term. Furthermore, Fitch anticipates that
management will manage acquisition activity and its capital
structure more aggressively now that there is incremental clarity
with respect to Medicare reimbursement and, to a lesser degree,
healthcare reform.
Consistent FCF, Solid Liquidity, And Good Financial Flexibility:
Free cash flow for the LTM period ending June 30, 2010, was
approx. $642 million, significantly higher than the $392 million
for the year ended Dec. 31, 2009. Increased FCF has been
supported almost entirely by positive working capital trends,
including an impact on cash flow of $142 million from working
capital in the second quarter of 2010 alone. Fitch expects DaVita
to generate between $300 and $400 million in FCF for the year
ending Dec. 31, 2010. Liquidity at June 30, 2010 was comprised of
$597 million in cash, cash equivalents, and short-term investments
as well as $198 million of availability under the company's
$250 million secured revolving credit facility (net of approx.
$52 million of outstanding letters of credit) which matures in
October 2012.
DaVita has good financial flexibility as a result of relatively
low fixed costs (approximately 35% of total) and a high percentage
of total capital expenditures that are discretionary. Margin
compression from government reimbursement pressure has been
mitigated by sales growth and fairly good SG&A control, resulting
in relatively dependable cash flow generation.
Fitch expects DaVita to deploy cash using these priorities:
-- Acquisitions: Current pricing has been somewhat prohibitive
as of late.
-- Share repurchases: $100 million was repurchased in the first
six months of 2010, and $400 million remains under the
company's current, non-expiring authorization.
-- Build cash: Historically, acquisitions have been financed
with cash on hand.
-- Debt reduction: DaVita pays relatively low interest rates on
its outstanding debt, so there is not a big rush to pay debt
ahead of its due date.
Long-Term Growth Potential Largely Unaffected By Healthcare
Reform:
Unlike much of the rest of the healthcare industry, which is
likely to see increased volumes and utilization, long-term growth
potential for DaVita and its peers will be largely unaffected by
healthcare reform, since Medicare already covers most Americans
who require ESRD treatment. Nevertheless, Fitch expects 3% to
3.5% annual patient growth in the ESRD market, driven by an aging
patient population and lifestyle trends that increase the
incidence of diabetes and hypertension - two leading causes of
ESRD. Additionally, DaVita's advancements in dialysis techniques,
technology, and supportive therapies could extend the lives of
existing patients, further adding to the growth rate of this
patient population. New technologies and supportive therapies
could provide additional opportunities for revenue growth as well.
At June 30, 2010, DaVita had approximately $3.38 billion in
outstanding debt, consisting of approximately $1.8 billion in term
loans under its senior secured credit facility and $1.55 billion
of senior and senior subordinated notes. Debt maturities are:
Senior secured credit facility:
-- $43.8 million due for the remainder of 2010;
-- $65.6 million due in 2011;
-- $1.7 billion due in 2012.
Senior unsecured notes:
-- $700 million due 2013.
Senior subordinated notes:
-- $850 million due 2015.
Management has publicly stated its intention to refinance, and
potentially upsize, the company's existing credit facility in the
next three to nine months. Fitch anticipates that the 2013 notes
and possibly the 2015 notes as well -- will be refinanced at the
same time as the bank facility.
DELTEK INC: Moody's Gives Positive Outlook, Affirms 'B1' Rating
---------------------------------------------------------------
Moody's Investors Service revised Deltek Inc.'s ratings outlook to
positive from stable and affirmed its B1 corporate family rating
and senior secured debt rating. The revision was driven by the
company's strong credit metrics through the downturn and Moody's
expectations of continued debt paydown. Credit metrics are strong
for the B1 rating and if the company is able to integrate the
recently acquired Maconomy and resume strong cash flow generation,
the ratings could face further upward pressure. Moody's also
revised the company's liquidity rating to SGL-2 from SGL-1 as a
result of reduced cash levels post the Maconomy acquisition.
Deltek's leverage decreased to 3.2x as of June 30, 2010, from 3.5x
in December 2008 and is expected to decline further as the company
continues to make its debt payments. While the company
experienced declines in operating performance during the economic
downturn, the company continued to generate strong levels of free
cash flow through the period, improving free cash flow to
$65 million for the twelve months ended June 30, 2010 from
$37 million in FY2008 (resulting in the free cash flow to debt
ratio increasing to a very strong 34% from 16% over the same
period). Although LTM cash flow was likely higher than normal due
to a one-time billing shift in 2010, Moody's expects the company
to continue to produce strong levels of cash flow relative to its
debt. Moody's also expect core license and services revenues and
operating profit levels to stabilize and possibly show some
moderate signs of growth over the next year.
The company recently purchased Maconomy A/S for approximately
$73 million, further expanding its geographic and end market
offerings in the project management software business. Denmark-
based Maconomy provides enterprise software systems for project
based industries such as ad agencies, accounting, tax and
consulting firms. Although Moody's expects Deltek to benefit from
expanded geographic distribution for the companies' products,
Maconomy had significantly lower margins than Deltek and slightly
negative cash flow in 2009 and Deltek's near term results will be
negatively impacted particularly after transaction costs and
purchase accounting adjustments. The ratings could be upgraded if
the company is able to integrate the businesses while maintaining
strong cash flow and credit metrics.
Moody's SGL-2 rating reflects the view that the company's
liquidity still remains good with approximately $67 million of
cash as of June 30, 2010 (pro forma for the Maconomy acquisition)
and an undrawn $22.5 million revolver but not as strong as periods
prior to the Maconomy acquisition.
These ratings were affirmed:
* Corporate family rating: B1
* Probability of default: B2
* $23 million senior secured revolving credit facility due April
2013: B1, LGD3 (32%)
* $152 million (as of June 30, 2010) senior secured term loan due
April 2011 and April 2013: B1, LGD3 (32%)
These items have changed:
* Speculative liquidity rating: to SGL-2 from SGL-1
* Ratings outlook: positive
Moody's most recent announcement was August 26, 2009, when Moody's
revised Deltek's speculative grade liquidity rating to SGL-1.
Headquartered in Herndon, Virginia, Deltek is a producer of
project focused enterprise software predominantly to the mid-size
enterprise market within government contracting and architecture
and engineering end-markets. Deltek had approximately
$263 million in revenue for the last twelve months ended June 30,
2010.
DEX MEDIA EAST: Bank Debt Trades at 20% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Dex Media East,
LLC, is a borrower traded in the secondary market at 79.91 cents-
on-the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.57
percentage points from the previous week, The Journal relates.
The Company pays 250 basis points above LIBOR to borrow under the
facility. The bank loan matures on October 24, 2014. The debt is
not rated by Moody's and Standard & Poor's. The loan is one of
the biggest gainers and losers among 209 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
Based in Cary, North Carolina, R.H. Donnelley Corp., fka The Dun &
Bradstreet Corp. (NYSE: RHD) -- http://www.rhdonnelley.com/--
publishes and distributes print and online directories in the U.S.
It offers print directory advertising products, such as yellow
pages and white pages directories. R.H. Donnelley Inc., Dex
Media, Inc., and Local Launch, Inc., are the company's only direct
wholly owned subsidiaries.
Dex Media East, LLC, is a publisher of the official yellow pages
and white pages directories for Qwest Communications International
Inc. (Qwest) in the states, where Qwest is the primary incumbent
local exchange carrier, such as Colorado, Iowa, Minnesota,
Nebraska, New Mexico, North Dakota and South Dakota.
R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media
East LLC, Dex Media West LLC and Dex Media, Inc., filed for
Chapter 11 protection on May 28, 2009 (Bank. D. Del. Case No. 09-
11833 through 09-11852), after missing a $55 million interest
payment on its senior unsecured notes due April 15. James F.
Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq.,
Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin
LLP, in Chicago, Illinois represent the Debtors in their
restructuring efforts. Edmon L. Morton, Esq., and Robert S.
Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in
Wilmington, Delaware, serve as the Debtors' local counsel. The
Debtors' financial advisor is Deloitte Financial Advisory Services
LLP while its investment banker is Lazard Freres & Co. LLC. The
Garden City Group, Inc., is claims and noticing agent.
Bankruptcy Creditors' Service, Inc., publishes R.H. Donnelley
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of R.H. Donnelley Corp. and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
EMISPHERE TECH: Posts $13.7 Million Net Loss for June 30 Quarter
----------------------------------------------------------------
Emisphere Technologies Inc. reported that for the three months
ended June 30, 2010, it incurred a net loss of $13.7 million,
compared to a net loss of $4.2 million for the same period last
year. The operating loss for the three months ended June 30, 2010
was $3.1 million, compared to an operating loss of $3.0 million in
same period last year.
The Company reported $39,000 in net sales during the second
quarter ended June 30, 2010, from $0 in net sales in the quarter
ended June 30, 2009.
The Company's balance sheet at June 30, 2010, showed $3.11 million
in total assets, $76.51 million in total liabilities, and a
$73.41 million stockholders' deficit.
At June 30, 2010, Emisphere reported cash and restricted cash
totaling $0.7 million, compared to $3.3 million at March 31, 2010.
On July 29, 2010, the Company issued a $525,000 promissory note to
MHR Institutional Partners IIA LP and MHR Institutional Partners
II LP. The Company said in a statement that it anticipates that
its existing cash resources, including the amounts provided by MHR
in connection with the Note but not accounting for an $2.6 million
arbitration award in favor of the Company's former CEO, will
enable the Company to continue operations through approximately
August 31, 2010 or earlier if unforeseen events arise that
negatively affect its liquidity.
As reported in the TCR on March 29, 2010, PricewaterhouseCoopers
LLP, in New York, which audited the Company's full-year 2009
results, expressed substantial doubt about the Company's ability
to continue as a going concern. The independent auditors noted
that the Company has experienced recurring operating losses, has
limited capital resources and has significant future commitments.
In the Form 10-Q for the quarter ended June 30, 2010, the Company
acknowledged, "We have limited capital resources and operations to
date have been funded primarily with the proceeds from
collaborative research agreements, public and private equity and
debt financings and income earned on investments. As of June 30,
2010 total cash was $0.7 million including restricted cash of
$0.26 million. The change in cash relates to the net loss offset
by changes in accounts payable and non-cash items. We anticipate
that we will continue to generate significant losses from
operations for the foreseeable future, and that our business will
require substantial additional investment that we have not yet
secured. As such, we anticipate that our existing cash resources,
including the amounts provided by MHR in connection with the July
2010 MHR Note but not accounting for an approximately $2.6 million
arbitration award in favor of the Company's former CEO, will
enable us to continue operations through approximately August 31,
2010 or earlier if unforeseen events arise that negatively affect
our liquidity. However, this expectation is based on the current
operating plan that could change as a result of many factors and
additional funding may be required sooner than anticipated. These
conditions raise substantial doubt about our ability to continue
as a going concern."
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6954
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6955
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.
EMPIRE LAND: Ch. 7 Trustee Slams Officers' Bid for D&O Coverage
---------------------------------------------------------------
Richard K. Diamond, the trustee overseeing Empire Land LLC's
Chapter 7 case, has blasted a bid by the Company's former CEO
James Previti and nearly two dozen other managers to gain access
to up to $10 million in directors and officers coverage to defend
themselves against adversary proceedings, Bankruptcy Law360
reports.
Headquartered in Ontario, California, Empire Land, LLC, dba Empire
Land Development, LLC -- http://www.epinc.com/-- develops
communities and other land construction projects located in
California and Arizona. As of March 31, 2008, the company owned
at least 11,800 lost in 14 separate land projects. The company
and seven of its affiliates filed for Chapter 11 protection on
April 25, 2008 (Bankr. C.D. Calif. Lead Case No.08-14592). James
Stang, Esq., at Pachulski Stang Ziehl & Jones, LLP, represents the
Debtors in their restructuring efforts. The U.S. Trustee for
Region 16 has appointed three creditors to serve on an Official
Committee of Unsecured Creditors in these cases. The Committee
selected Landau & Berger LLP as its general bankruptcy counsel.
When the Debtors filed for protection against their creditors,
they listed assets and debts between $100 million to $500 million.
ENERGYSOLUTIONS INC: S&P Assigns 'BB-' Rating on $300 Mil. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'BB-'
issue-level rating and '4' recovery rating to the $300 million
10.75% senior unsecured notes due 2018 co-issued by
EnergySolutions Inc. and subsidiary EnergySolutions LLC. The '4'
recovery rating indicates the expectation of average recovery
(30%-50%) in the event of a payment default. The notes were
issued under Rule 144A with registration rights.
S&P also assigned its 'BB+' issue-level rating and '1' recovery
rating to EnergySolutions LLC's $665 million credit facility,
which consists of a $105 million revolving facility due 2015 and a
$560 million term loan due 2016. The '1' recovery rating
indicates the expectation of very high recovery (90% to 100%) in
the event of a payment default.
The assignment of final ratings to the issues follows S&P's
previous assignment of preliminary ratings on July 15, 2010. The
amount of the revolving credit facility is $105 million, compared
with $125 million originally expected.
The company used the net proceeds of the notes, together with
borrowings under the credit facility, to refinance all of its
outstanding indebtedness under its previously existing credit
facilities. Borrowings of $310 million under the term loan in the
credit facility will be held in a restricted cash account as
collateral for the company's reimbursement obligations with
respect to letters of credit.
"The ratings on EnergySolutions Inc. reflect the company's
aggressive financial risk profile, marked by significant debt,
along with the operational risks associated with participating in
the highly regulated low-level radioactive waste industry,
including competitive contract bidding," said Standard & Poor's
credit analyst James Siahaan. "The company's leading market
position in the specialized niche of nuclear waste services,
limited competition in primary service areas, improved operating
results, and predictable free cash flow generation partially
offset these factors."
S&P will maintain the negative outlook on the 'BB-' corporate
credit rating until it is evident that business conditions are
consistently improving, including progress with respect to the
decommissioning project for Exelon Generation.
FLETCHER GRANITE: Aims for Quick Sale of Business
-------------------------------------------------
Fletcher Granite Company is prepping itself for a quick sale under
Chapter 11 and eliminating the encumbrances of liabilities for
potential buyers, Joyce Pellino Cran at wickedlocal.com reported,
citing a attorney representing Fletcher. The Company aims to
complete the sale by October 31.
According to wickedlocal, the Company shut down on June 18 when it
could no longer borrow from its bank to pay wages. The Company
said it is carrying $7 million in bank debt secured by its real
estate, machinery and equipment, inventory and receivables. The
Company owes $110,000 to the state Department of Revenue, and $1.9
million in trade debt including deposits on inventory. Employees
are owed $230,000 in wages, accrued vacation and unfunded health
benefits, and retirement contributions.
Westford, Massachusetts-based Fletcher Granite Company LLC --
http://www.fletchergranite.com/-- produced granite for buildings,
bridges and road construction.
Fletcher Granite filed for Chapter 11 bankruptcy protection on
August 2, 2010 (Bankr. D. Mass. Case No. 10-43884). David J.
Reier, Esq., and Laura Otenti, Esq., at Posternak Blankstein &
Lund LLP, serve as counsel to the Debtor. The Debtor estimated
its assets at $10 million to $50 million and debts at $1 million
to $10 million in its Chapter 11 petition. The U.S. Trustee has
formed a five-member Official Committee of Unsecured Creditors.
FRANK TURNER: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Frank Lenous Turner
aka Frank L. Turner
Frank Turner
Wanda Ivette Borrero-Turner
aka Wanda I. Borrero-Turner
Wanda Turner
7971 Wellington Drive
Warrenton, VA 20186
Bankruptcy Case No.: 10-16903
Chapter 11 Petition Date: August 16, 2010
Court: United States Bankruptcy Court
Eastern District of Virginia (Alexandria)
Judge: Stephen S. Mitchell
Debtor's Counsel: Raymond Pring, Jr., Esq.
GROSS, PRING & ASSOCIATES, P.C.
9431 Main Street
Manassas, VA 20110
Tel: (703) 361-7717
Fax: (703) 330-1361
E-mail: rpring@grosspringlaw.com
Estimated Assets: $0 to $50,000
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/vaeb10-16903.pdf
FUQI INT'L: Receives Additional Noncompliance Notice from Nasdaq
----------------------------------------------------------------
FUQI International, Inc. receive an additional noncompliance
notice from The Nasdaq Stock Market.
On August 17, 2010, the Company received, as expected, an
additional notification letter from The Nasdaq Stock Market
stating that the Company remains out of compliance with Nasdaq
Marketplace Rule 5250(c)(1), which requires timely filing of SEC
periodic reports, including the Company's Form 10-K for fiscal
2009 and Form 10-Q reports for the periods ended March 31, and
June 30, 2010. As previously reported, on June 16, 2010, Nasdaq
granted the Company an exception until September 28, 2010 to
regain compliance with Nasdaq listing standards. Accordingly, the
Company has until September 28, 2010 to file its Form 10-K for the
year ended December 31, 2009 and Form 10-Q reports for the periods
ended March 31 and June 30, 2010. As required by Nasdaq, the
Company also intends to submit by September 1, 2010 an update to
its original compliance plan. The Nasdaq Notification Letter has
no immediate effect on the listing or trading of the Company's
common stock on the Nasdaq Global Select Market.
If the Company is unable to file the delinquent reports by
September 28, 2010, Nasdaq will provide written notification that
the Company's securities will be delisted. At that time, the
Company may appeal Nasdaq's determination, and during any such
appeal, the Company's securities would continue to be listed on
Nasdaq.
About FUQI International
Based in Shenzhen, China, FUQI International, Inc. is a leading
designer, producer and seller of high quality precious metal
jewelry in China. Fuqi develops, promotes, manufactures and sells
a broad range of products consisting of unique styles and designs
made from gold and other precious metals such as platinum and
Karat gold.
FX REAL ESTATE: Posts $11.3 Million Net Loss in Q2 2010
-------------------------------------------------------
FX Real Estate and Entertainment Inc. filed its quarterly report
on Form 10-Q, reporting a net loss of $11.3 million on
$4.2 million of revenue for the three months ended June 30, 2010,
compared with a net loss of $88.2 million on $4.8 million of
revenue for the same period of 2009.
The Company's balance sheet as of June 30, 2010, showed
$141.8 million in total assets, $515.1 million in total
liabilities, and a stockholders' deficit of $373.3 million.
As reported in the Troubled Company Reporter on April 15, 2010, LL
Bradford, in Las Vegas, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that the Company is in default under the mortgage
loan, has limited available cash, has a working capital deficiency
and will need to secure new financing or additional capital in
order to pay its obligations.
The Company discloses in its latest 10-Q, that it has no current
cash flow and cash on hand as of August 13, 2010, is not
sufficient to fund its short-term liquidity requirements,
including its ordinary course obligations as they come due. On
April 21, 2010, the Company's remaining Las Vegas subsidiary,
namely FX Luxury Las Vegas I, LLC, filed for Chapter 11 in the
U.S. Bankruptcy Court for the District of Nevada (Case No.
10-17015).
"Invariably, the Las Vegas Property will either be liquidated in
the Chapter 11 Bankruptcy Proceeding under a Bankruptcy Court-
approved plan of liquidation or the Las Vegas Subsidiary will be
reorganized with the Company's equity interests being canceled."
"Under the Liquidation Plan, it is extremely unlikely the Company
will either participate in any material way in or receive any
material benefit from such liquidation of the Las Vegas Property."
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?698e
FX Real Estate and Entertainment Inc. owns 17.72 contiguous acres
of land located at the southeast corner of Las Vegas Boulevard and
Harmon Avenue in Las Vegas, Nevada. The Las Vegas Property is
currently occupied by a motel and several commercial and retail
tenants with a mix of short and long-term leases. On June 23,
2009, as a result of the default under the first mortgage loan,
the first lien lenders had a receiver appointed to take control of
the property. The Company is headquartered in New York City.
GATEHOUSE MEDIA: Bank Debt Trades at 61% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which GateHouse Media
Inc. is a borrower traded in the secondary market at 39.13 cents-
on-the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.60
percentage points from the previous week, The Journal relates.
The Company pays 200 basis points above LIBOR to borrow under the
facility. The bank loan matures on February 27, 2014, and
carries Moody's Ca rating and Standard & Poor's CCC- rating. The
loan is one of the biggest gainers and losers among 209 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
GateHouse Media Inc. released its full-year 2009 results,
reporting a net loss of $530.6 million for the year ended
December 31, 2009, from a net loss of $673.3 million in 2008.
Total reported revenues were $150.2 million for the fourth
quarter, a decline of 10.3% over the prior year. The decline in
same-store revenue was driven primarily by print local and
classified advertising categories, which were down 10.2% and
16.6%, respectively. Circulation revenues declined 3.6% for the
quarter on a same-store basis. Commercial printing and other
revenues declined 23.1% in the quarter on a same-store basis.
The Company's balance sheet at December 31, 2009, showed
$591.2 million in assets and $1.3 billion in liabilities,
resulting to a $753.0 million stockholders' deficit.
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.
GATEWAY TO EAST: Case Summary & 6 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Gateway to East Hills, LLC
11661 San Vicente Boulevard, #904
Los Angeles, CA 90049
Tel: (310) 739-2000
Bankruptcy Case No.: 10-44433
Chapter 11 Petition Date: Aug 17, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Ernest M. Robles
Debtor's Counsel: Stephen F. Biegenzahn, Esq.
611 W. 6th Street, Suite 850
Los Angeles, CA 90017
Tel: (213) 617-0017
Fax: (480) 247-5977
E-mail: efile@sfblaw.com
Scheduled Assets: $6,850,000
Scheduled Debts: $4,361,328
A list of the Company's six largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-44433.pdf
The petition was signed by Nick A. Danesh, managing member.
GENERAL DATACOMM: Posts $959,000 Net Loss for June 30 Quarter
-------------------------------------------------------------
General DataComm Industries Inc. filed its quarterly report on
Form 10-Q, reporting a net loss of $959,000 on $1.73 million of
total revenues for the three months ended June 30, 2010, compared
with net loss of $1.06 million on $2.21 million of total revenues
for the same period a year earlier.
The Company's balance sheet at June 30, 2010, showed $5.44 million
in total assets, $48.47 million in total liabilities, and a
$43.03 million stockholders' deficit.
According to the Form 10-Q "The Company incurred a net loss and
used a significant amount of cash in its operating activities for
the nine months ended June 30, 2010 and in recent years preceding
such date. The Company has no current ability to borrow
additional funds except as may be provided pursuant to a
receivable sales agreement with a related party. It must,
therefore, fund operations from cash balances, cash generated from
operating activities including the sale of its accounts receivable
and any cash that may be generated from the sale of non-core
assets such as real estate and other assets. In addition, at
June 30, 2010 the Company had a stockholders' deficit of
approximately $43.0 million, and a working capital deficit of
approximately $41.2 million, including debentures in the principal
amount of $19.4 million, together with accrued interest thereon
($13.2 million), which matured on October 1, 2008. While a
subordinated security agreement signed by the indenture trustee on
behalf of the debenture holders provides that no payments may be
made to debenture holders, and that no event of default may be
declared under the indenture, while senior secured debt is
outstanding, in the absence of such restrictions the Company does
not have the ability to repay the debentures. As of June 30,
2010, senior secured debt consists of notes payable to related
parties and a real estate mortgage. A failure to pay the
debentures when they become due and payable as described above,
could result in an event of default being declared under the
indenture governing the debentures."
"The conditions described above raise substantial doubt about the
Company's ability to continue as a going concern," the Company
said.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6953
The Company's previous audit firm resigned on January 5, 2009 and,
while the Company is in the process of appointing new auditors,
such appointment is pending its ability to pay audit fees.
About General DataComm
Based in Naugatuck, Connecticut, General DataComm Industries Inc.
(OTC: GNRD) -- http://www.gdc.com/-- is a provider of networking
and telecommunications products, services and solutions. The
Company designs, develops, assembles, markets, sells, installs and
maintains products that enable telecommunications common carriers,
corporations, and governments to build, improve and more cost
effectively manage their global telecommunications networks.
The Company's products and services are marketed worldwide through
a combination of direct sales and distribution channels.
GEORGE GEORGITSEAS: Case Summary & 5 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: George N. Georgitseas
72 Woodway Ridge Lane
New Canaan, CT 06840
Bankruptcy Case No.: 10-51950
Chapter 11 Petition Date: Aug 17, 2010
Court: U.S. Bankruptcy Court
District of Connecticut (Bridgeport)
Judge: Alan H.W. Shiff
Debtor's Counsel: Peter L. Ressler, Esq.
GROOB RESSLER & MULQUEEN
123 York Street, Suite 1B
New Haven, CT 06511-0001
Tel: (203) 777-5741
Fax: (203) 777-4206
E-mail: ressmul@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Debtor's five largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ctb10-51950.pdf
GEORGE W PARK: Blackstreet Affiliate to Buy Assets for $7.09MM
--------------------------------------------------------------
Lesley Lane at GwdToday News reports that George W. Park Seed
Company named J & P Park Acquistion, an affiliate of Blackstreet
Capital, as stalking-horse bidder for the Company's assets.
Absent higher and better offers, J & P Park will buy the Company's
assets for $7.09 million. The purchase price includes an equity
stake for local executives and a plan to keep the company in
Greenwood, sustaining the Company's current operations. The deal
will be finalized during a bankruptcy hearing on August 23, 2010,
according to the report.
J & Park has also promised to preserve the local operations of the
Company while saving about 200 area jobs, according to the report.
"[The] contract with Park Seed will rescue the company from
bankruptcy in a way that saves local jobs, maintains local
management and preserves Park Seed's unique heritage," a person
with knowledge of the matters said.
J & P Park has deposited $400,000 as part of the purchase.
Based in Greenwood, South Carolina, George W. Park Seed Co. Inc.,
along with four affiliates, filed for Chapter 11 protection on
April 2, 2010 (Bankr. D. S.C. Lead Case No. 10-02431). R.
Geoffrey Levy, Esq., represents the Company in its restructuring
effort. In its schedules, the Company disclosed $8.33 million in
assets and $44.79 million in liabilities.
GLEBE INC: Files Schedules of Assets and Liabilities
----------------------------------------------------
The Glebe, Inc., filed with the U.S. Bankruptcy Court for the
Western District of Virginia its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $8,510,235
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $55,540,000
E. Creditors Holding
Unsecured Priority
Claims $359,837
F. Creditors Holding
Unsecured Non-priority
Claims $20,252,891
----------- -----------
TOTAL $8,510,235 $76,152,728
Daleville, Virginia-based The Glebe, Inc., filed for Chapter 11
bankruptcy protection on June 28, 2010 (Bankr. W.D. Va. Case No.
10-71553). Michael E. Hastings, Esq., at Leclair Ryan, A
Professional Corporation, assists the Company in its restructuring
effort. The Company estimated assets at $10 million to
$50 million and liabilities at $50 million to $100 million.
GLENN MANIGAULT: Files Schedules of Assets and Liabilities
----------------------------------------------------------
Glenn L. Manigault, Jr., and Angela D. Manigault filed with the
U.S. Bankruptcy Court for the Southern District of New York a
summary of their schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $12,075,000
B. Personal Property $259,417
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $14,511,078
E. Creditors Holding
Unsecured Priority
Claims $80,000
F. Creditors Holding
Unsecured Non-priority
Claims $106,954
----------- -----------
TOTAL $12,334,417 $14,698,032
Highland Mills, New York-based Glenn L. Manigault, Jr., and Angela
D. Manigault -- aka Angela D. Simpson-Manigault and Angela D.
Simpson -- filed for Chapter 11 protection on June 26, 2010
(Bankr. S.D.N.Y. Case No. 10-36936). Anne J. Penachio, Esq.,
at Penachio Malara LLP, represents the Debtors in their
restructuring effort. The Debtors estimated their assets and
debts at $10 million to $50 million.
GRAY COMMS: Bank Debt Trades at 6% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which Gray
Communications System, presently known as Gray Television, Inc.,
is a borrower traded in the secondary market at 94.00 cents-on-
the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 0.40
percentage points from the previous week, The Journal relates.
The Company pays 150 basis points above LIBOR to borrow under the
facility. The bank loan matures on December 21, 2014, and carries
Moody's B2 rating and Standard & Poor's B rating. The loan is one
of the biggest gainers and losers among 209 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Formerly known as Gray Communications System, Atlanta, Georgia-
based Gray Television, Inc., is a television broadcast company.
Gray currently operates 36 television stations serving 30 markets.
Each of the stations are affiliated with either CBS (17 stations),
NBC (10 stations), ABC (8 stations) or FOX (1 station). In
addition, Gray currently operates 38 digital second channels
including 1 ABC, 4 Fox, 7 CW, 16 MyNetworkTV and 1 Universal
Sports Network affiliates plus 8 local news/weather channels and 1
"independent" channel in certain of its existing markets.
Gray Television carries 'CCC' issuer credit ratings from Standard
& Poor's and 'Caa1' corporate family rating from Moody's.
GREENSHIFT CORP: Delays Filing of 2nd Quarter Report on Form 10-Q
-----------------------------------------------------------------
Greenshift Corporation said it could not file its quarterly report
on Form 10-Q for the period ended June 30, 2010, within the
required time. Greenshift blamed a delay in completing the
adjustments necessary to close its books for the quarter,
according to the regulatory filing.
About Greenshift Corporation
Headquartered in New York, GreenShift Corporation develops and
commercializes clean technologies designed to integrate into and
leverage established production and distribution infrastructure to
address the financial and environmental needs of its clients by
decreasing raw material needs, facilitating co-product reuse, and
reducing waste and emissions.
The Company's balance sheet at March 31, 2010, showed
$19.2 million in total assets, $42.6 million in total liabilities,
and a stockholders' deficit of $65.6 million.
Rosenberg Rich Baker Berman & Company 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 suffered losses from operations and has
a working capital deficiency as of December 31, 2009.
GWENDOLYN MCADAMS: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Gwendolyn McAdams
aka Gwendolyn Schemwell
9649 Boswell Ct.
Brentwood, TN 37027
Bankruptcy Case No.: 10-08630
Chapter 11 Petition Date: August 16, 2010
Court: United States Bankruptcy Court
Middle District of Tennessee (Nashville)
Judge: Marian F. Harrison
Debtor's Counsel: Austin Lenoy McMullen, Esq.
BRADLEY ARANT BOULT CUMMINGS LLP
P.O. Box 340025
1600 Division Street, Suite 700
Nashville, TN 37203
Tel: (615) 252-2307
Fax: (615) 252-6307
E-mail: amcmullen@babc.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.
HARRAH'S ENTERTAINMENT: Posts $272 Mil. Net Loss for June 30 Qtr
----------------------------------------------------------------
Harrah's Entertainment Inc. filed its quarterly report on Form
10-Q, reporting a net loss of $272.50 million on $2.22 million of
net revenues for the quarter ended June 30, 2010, compared with
a net income of $2.30 billion on $2.27 million of net revenues for
the same period a year ago.
The Company's balance sheet at June 30, 2010, showed
$29.29 billion in total assets, $1.78 billion in total current
liabilities, $19.80 billion in long term debt, $901.10 million in
deferred credits and other, $5.58 billion in deferred income
taxes, and a $45.20 million stockholders' equity.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6948
About Harrah's Entertainment
Las Vegas, Nevada-based Harrah's Entertainment, Inc. --
http://www.harrahs.com/-- through its wholly owned subsidiary,
Harrah's Operating Company, Inc., operates nearly 40 casinos
across the United States, primarily under the Harrah's(R),
Caesars(R) and Horseshoe(R) brand names; Harrah's also owns the
London Clubs International family of casinos and the World Series
of Poker(R). Private equity firms Apollo Global Management and
TPG Capital LP acquired Harrah's in January for $31 billion.
Harrah's carries 'Caa3' corporate family and probability of
default ratings, with "positive outlook", from Moody's Investors
Service. It has 'B-' issuer credit ratings, with "stable"
outlook, from Standard & Poor's.
HAWKS PRAIRIE: Case Summary & 6 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Hawks Prairie Investment LLC
1500 79th Ave. SE
Olympia, WA 98501
Bankruptcy Case No.: 10-46635
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Western District of Washington (Tacoma)
Judge: Brian D Lynch
Debtor's Counsel: Timothy W. Dore, Esq.
RYAN SWANSON & CLEVELAND PLLC
1201 3rd Ave., Suite 3400
Seattle, WA 98101-3034
Tel: (206) 464-4224
E-mail: dore@ryanlaw.com
Estimated Assets: $50,000,001 to $100,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Tri M. Vo, manager.
Debtor's List of six Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Schwabe Williamson & Professional services $291,569
Wyatt PC
1211 SW Fifth Ave #1900
Portland, OR 97204
Berk & Associates Inc. Consulting services $39,901
120 Lakeside Ave #120
Seattle, WA 98122
CH May Realty Advisors Consulting services $23,479
LLC
5600 N River Road #800
Rosemont, IL 60018
Hatton Godat Pantier Engineering service $14,395
Shea Carr Jewel Inc. Land development and $7,671
transportation
planning services
Ditleveson Rodgers Professional services $1,126
Dixon PS
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Pacific Investment Group LLC 09-47915 10/22/09
HEALTHSOUTH CORP: Bank Debt Trades at 2% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which HealthSouth
Corporation is a borrower traded in the secondary market at 98.40
cents-on-the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 0.75
percentage points from the previous week, The Journal relates.
The Company pays 225 basis points above LIBOR to borrow under the
facility. The bank loan matures on March 10, 2013, and carries
Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is
one of the biggest gainers and losers among 209 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
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.
The Company's balance sheet at June 30, 2010, showed $1.7 billion
in total assets, $2.1 billion in total liabilities, and
shareholders' deficit of $817.3 million.
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.
HERBST GAMING: Bank Debt Trades at 41% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Herbst Gaming Inc.
is a borrower traded in the secondary market at 58.60 cents-on-
the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.90
percentage points from the previous week, The Journal relates.
The loan matures on December 8, 2013. The Company pays 187.5
basis points above LIBOR to borrow under the facility. Moody's
has withdrawn its rating, while Standard & Poor's does not
assigned a rating, on the bank debt. The loan is one of the
biggest gainers and losers among 209 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
As reported by the Troubled Company Reporter on April 12, 2010,
Standard & Poor's withdrew its ratings on Las Vegas-based Herbst
Gaming Inc. at the company's request.
Herbst filed for bankruptcy protection under Chapter 11 of the
U.S. Bankruptcy Code in Nevada on March 22, 2009. The Bankruptcy
Court issued an order on January 22, 2010, confirming the
company's amended joint plan of reorganization. Although the plan
became effective February 5, 2010, it will not be fully
implemented until the substantial consummation date; this will not
occur until certain conditions, including approval of gaming
authorities in Nevada, Missouri, and Iowa have been satisfied.
About Herbst Gaming
Headquartered in Reno, Nevada, Herbst Gaming, Inc. --
http://www.herbstgaming.com/-- is a diversified gaming company.
The Company and its subsidiaries focus on two business lines, slot
route operations and casino operations. The Company's route
operations involves the exclusive installation and, as of
September 30, 2009, operation of approximately 6,300 slot machines
in non-casino locations, such as grocery stores, drug stores,
convenience stores, bars and restaurants. The casino operations
consist of 16 casinos located in Nevada, Iowa and Missouri.
The Company and 17 of its affiliates filed for Chapter 11
protection on March 22, 2009 (Bankr. D. Nev. Lead Case No. 09-
50752). Thomas H. Fell, Esq., and Gerald M. Gordon, Esq., at
Gordon Silver, represent the Debtors in their restructuring
efforts. Herbst Gaming had $919.1 million in total assets; and
$33.5 million in total liabilities not subject to compromise and
$1.24 billion in liabilities subject to compromise, resulting in
$361.0 million in stockholders' deficiency as of March 31, 2009.
At December 31, 2009, Herbst Gaming, Inc., had $612.8 million in
total assets and $1.232 billion in total liabilities. Cash and
cash equivalents were $32.6 million at December 31, 2009.
HERTZ CORP: Bank Debt Trades at 3% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which The Hertz
Corporation is a borrower traded in the secondary market at 97.31
cents-on-the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 0.41
percentage points from the previous week, The Journal relates.
The Company pays 175 basis points above LIBOR to borrow under the
facility. The bank loan matures on December 21, 2012, and carries
Moody's Ba1 rating and Standard & Poor's BB- rating. The loan is
one of the biggest gainers and losers among 209 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc.
(NYSE: HTZ), based in Park Ridge, New Jersey, is the world's
largest general use car rental brand, operating from around 8,000
locations in 147 countries worldwide. Hertz also operates one of
the world's largest equipment rental businesses, Hertz Equipment
Rental Corporation, through more than 375 branches in the United
States, Canada, France, Spain and China.
Hertz carries Moody's 'B1' corporate family rating and probability
of default ratings.
HF THREE: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: HF Three I, LLC
7404 N. Las Brisas Lane
Paradise Valley, AZ 85253
Bankruptcy Case No.: 10-26198
Chapter 11 Petition Date:
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: George B. Nielsen, Jr.
Debtor's Counsel: Paul Sala, Esq.
ALLEN, SALA & BAYNE, PLC
Viad Corporate Center
1850 N. Central Avenue, #1150
Phoenix, AZ 85004
Tel: (602) 256-6000
Fax: (602) 252-4712
E-mail: psala@asbazlaw.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 the Family Trustee of the Donald R.
Hemholdt 2004 Irrevocable Trust, manager of HF Three, LLC, member
of HF three I, LLC.
HUNTSMAN ICI: Bank Debt Trades at 6% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which Huntsman ICI is a
borrower traded in the secondary market at 93.95 cents-on-the-
dollar during the week ended Friday, August 20, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents an increase of 0.52 percentage
points from the previous week, The Journal relates. The Company
pays 175 basis points above LIBOR to borrow under the facility.
The bank loan matures on April 23, 2014, and carries Moody's Ba2
rating and Standard & Poor's B1 rating. The loan is one of the
biggest gainers and losers among 209 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
Huntsman Corp. -- http://www.huntsman.com/-- is a global
manufacturer and marketer of differentiated chemicals. Its
operating companies manufacture products for a variety of global
industries, including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction, technology,
agriculture, health care, detergent, personal care, furniture,
appliances and packaging. Originally known for pioneering
innovations in packaging and, later, for rapid and integrated
growth in petrochemicals, Huntsman has more than 12,000 employees
and operates from multiple locations worldwide. The Company had
2008 revenues exceeding $10 billion.
In March 2010, Moody's Investors Service affirmed the debt ratings
of Huntsman Corporation (B1 Corporate Family Rating) and Huntsman
International LLC, a subsidiary of Huntsman.
IMPERIAL SAVINGS: Closed; River Community Bank Assumes Deposits
---------------------------------------------------------------
Imperial Savings and Loan Association of Martinsville, Va., was
closed on Friday, August 20, 2010, by the Office of Thrift
Supervision, which appointed the Federal Deposit Insurance
Corporation as receiver. To protect the depositors, the FDIC
entered into a purchase and assumption agreement with River
Community Bank, National Association, of Martinsville, Va., to
assume all of the deposits of Imperial Savings and Loan
Association.
The sole branch of Imperial Savings and Loan Association will
reopen during normal banking hours as a branch of River Community
Bank, N.A. Depositors of Imperial Savings and Loan Association
will automatically become depositors of River Community Bank, N.A.
Deposits will continue to be insured by the FDIC, so there is no
need for customers to change their banking relationship in order
to retain their deposit insurance coverage. Customers of Imperial
Savings and Loan Association should continue to use their existing
branch until they receive notice from River Community Bank, N.A.
that it has completed systems changes to allow other River
Community Bank, N.A. branches to process their accounts as well.
As of June 30, 2010, Imperial Savings and Loan Association had
around $9.4 million in total assets and $10.1 million in total
deposits. River Community Bank, N.A. did not pay the FDIC a
premium for the deposits of Imperial Savings and Loan Association.
In addition to assuming all of the deposits of the failed bank,
River Community Bank, N.A. agreed to purchase essentially all of
the assets.
Customers who have questions about the transaction can call the
FDIC toll-free at 1-800-517-1843. Interested parties also can
visit the FDIC's Web site at
http://www.fdic.gov/bank/individual/failed/imperialsvgs.html
The FDIC estimates that the cost to the Deposit Insurance Fund
will be $3.5 million. Compared to other alternatives, River
Community Bank, N.A.'s acquisition was the least costly resolution
for the FDIC's DIF. Imperial Savings and Loan Association is the
113th FDIC-insured institution to fail in the nation this year,
and the first in Virginia. The last FDIC-insured institution
closed in the state was Greater Atlantic Bank, Reston, on
December 4, 2009.
INDEPENDENT NATIONAL: Closed; CenterState Bank Assumes Deposits
---------------------------------------------------------------
Community National Bank At Bartow of Bartow, Fla., and Independent
National Bank of Ocala, Fla., were closed on Friday, August 20,
2010, by the Office of the Comptroller of the Currency, which then
appointed the Federal Deposit Insurance Corporation as receiver
for the two banks. To protect depositors, the FDIC entered into
purchase and assumption agreements with CenterState Bank of
Florida, National Association, of Winter Haven, Fla., to assume
all the deposits and essentially all the assets of the two failed
banks, which were not affiliated with one another.
Collectively, the failed banks operated five branches, which will
reopen as branches of CenterState Bank of Florida, N.A., under
their normal business hours. Community National Bank At Bartow
has one branch, and Independent National Bank has four branches.
Depositors will automatically become depositors of CenterState
Bank of Florida, N.A. Deposits will continue to be insured by the
FDIC, so there is no need for customers to change their banking
relationship to retain their deposit insurance coverage.
As of June 30, 2010, Community National Bank At Bartow had total
assets of $67.9 million and total deposits of $63.7 million; and
Independent National Bank had total assets of $156.2 million and
total deposits of $141.9 million. CenterState Bank of Florida,
N.A. did not pay the FDIC a premium for the deposits of the two
failed banks.
The FDIC and CenterState Bank of Florida, N.A. entered into loss-
share transactions on $51.9 million of Community National Bank At
Bartow's assets; and $119.7 million of Independent National Bank's
assets. CenterState Bank of Florida, N.A., will share in the
losses on the asset pools covered under the loss-share agreement.
The loss-share transaction is projected to maximize returns on the
assets covered by keeping them in the private sector. The
transaction also is expected to minimize disruptions for loan
customers. For more information on loss share, visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html
Customers who have questions about the transactions can call the
FDIC toll free: for Community National Bank At Bartow customers,
1-800-450-5668; and for Independent National Bank customers, 1-
800-913-3058. Interested parties also can visit the FDIC's Web
sites:
for Community National Bank At Bartow:
http://www.fdic.gov/bank/individual/failed/cnbbartow.html
and for Independent National Bank,
http://www.fdic.gov/bank/individual/failed/inatbank.html
The FDIC estimates that the cost to the Deposit Insurance Fund for
Community National Bank At Bartow will be $10.3 million; and for
Independent National Bank, $23.2 million. Compared to other
alternatives, CenterState Bank of Florida, N.A.'s acquisition was
the least costly resolution for the FDIC's DIF.
These closings bring the total for the year to 112 banks in the
nation, and the twenty-first and twenty-second in Florida. Prior
to these failures, the last FDIC-insured institution closed in the
state was Bayside Savings Bank, Port Saint Joe, on July 30, 2010.
INFOLOGIX INC: Posts $567,000 Net Income for June 30 Quarter
------------------------------------------------------------
Infologix Inc. filed its quarterly report on Form 10-Q, reporting
net income of $567,000 on $16.38 million of net revenues for the
three months ended June 30, 2010, compared with a net loss of
$1.78 million on $24.41 million in net revenues for the same
period a year ago.
The Company's balance sheet at June 30, 2010, showed
$38.07 million in total assets, $40.95 million in total
liabilities, and a $2.88 million stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6951
About InfoLogix Inc.
Based in Hatboro, Pennsylvania, InfoLogix, Inc. (NASDAQ: IFLG) --
http://www.infologix.com/-- provides end-to-end solutions for
electronic medical record and supply chain implementation and
mobilization, with experience in over 2,200 hospitals and
businesses nationwide. InfoLogix assists its healthcare and
commercial customers by implementing and optimizing EMR and SCM
systems, offers mobility to caregivers and workforces by making
data accessible directly at the point of care or point of
activity, and manages operations with services to improve clinical
and financial performance and supply chain with services to drive
greater efficiency.
McGladrey & Pullen, LLP, in Blue Bell, Pa., 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 suffered recurring losses from
operations, has negative working capital and an accumulated
deficit as of December 31, 2009.
ISE CORP: Section 341(a) Meeting Scheduled for Sept. 14
-------------------------------------------------------
The U.S. Trustee for Region 15 will convene a meeting of ISE
Corporation's creditors on September 14, 2010, at 1:30 p.m. The
meeting will be held at the Office of the U.S. Trustee, 402 W.
Broadway (use C Street Entrance), Suite 1360, Hearing Room B, San
Diego, CA 92101.
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.
ISE Corporation, a California corporation, fka ISE Research
Corporation, is the operating subsidiary of Ise Limited. ISE Corp
-- http://www.isecorp.com/-- makes drive train systems for hybrid
gasoline/electric buses. Established in 1995, ISE is
headquartered in San Diego, California. It filed for Chapter 11
protection on August 10, 2010 (Bankr. S.D. Calif. Case No. 10-
14198). Marc J. Winthrop, Esq., at Winthrop Couchot Professional
Corp, assists the Debtor in its restructuring effort. The Debtor
estimated its assets at $10 million to $50 million and its debts
at $10 million to $50 million as of the Petition Date.
JANICE BECKER: Section 341(a) Meeting Scheduled for Sept. 28
------------------------------------------------------------
The U.S. Trustee for Region 2 will convene a meeting of Janice
Marie Becker's creditors on September 28, 2010, at 2:30 p.m. The
meeting will be held at the Office of the United States Trustee,
80 Broad Street, Fourth Floor, New York, NY 10004-1408.
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.
New York-based Janice Marie Becker filed for Chapter 11 protection
on August 11, 2010 (Bankr. S.D.N.Y. Case No. 10-14314). Dana
Patricia Brescia, Esq., at Alter, Goldman & Brescia, LLP, assists
the Debtor in her restructuring effort. The Debtor estimated her
assets at $10 million to $50 million and her debts at $1 million
to $10 million as of the Petition Date.
JEAN DETHIERSANT: Case Summary & 7 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Jean Dethiersant
8571 Franklin Ave.
West Hollywood, CA 90069
Bankruptcy Case No.: 10-44108
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Central District of California (Los Angeles)
Judge: Barry Russell
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Blvd., 6th Flr
Beverly Hills, CA 90212-2929
Tel: (310) 271-6223
Fax: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
Scheduled Assets: $11,058,225
Scheduled Debts: $14,339,820
Debtor's List of Seven Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Wells Fargo 1502 West $5,880,000
PO Box 200658 Glendale Avenue
Dallas, TX 75320 Phoenix, Arizona 85021
Chase 8571 Franklin Ave. $2,265,000
Po Box 24696 Los Angeles,
Columbus, OH 43224 California 90069
Tavern Inn Condominiums Breach of contract $500,000
Homeowners Association,
a California nonprofit
Jan A Kopczynski,
Berding & Weil
3240 Stone Valley Road West
Alamo, CA 94507
Bank Of America Credit card $44,035
Chase Credit card $15,542
Citibank Sd., Na Credit card $4,637
Chase Credit card $1,903
JOHN MANEELY CO: Bank Debt Trades at 5% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which John Maneely
Company is a borrower traded in the secondary market at 95.17
cents-on-the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 0.52
percentage points from the previous week, The Journal relates.
The Company pays 325 basis points above LIBOR to borrow under the
facility. The bank loan matures on December 9, 2013, and carries
Moody's B3 rating and Standard & Poor's B rating. The loan is one
of the biggest gainers and losers among 209 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
As reported by the Troubled Company Reporter on June 3, 2010,
Moody's changed the rating outlook for John Maneely Company and
6582125 Canada Inc. to stable from negative. The company's
corporate family remains at B2. The revised rating outlook
recognizes the effective job JMC has done managing through the
severe downturn of the last 18 months and its debt reduction over
the last nine months.
The B2 corporate family rating positively reflects JMC's highly
variable cost structure, large scale and leading market position
for many of its pipe products and electrical conduit, and adequate
liquidity. However, the rating is constrained by Moody's
expectation for challenging market conditions for JMC's largest
market -- the non-residential construction market - with that
market still declining and a recovery possibly several years away.
The company remains highly levered and has a relatively high
reliance on commodity types of products that tend to have
aggravated cycles, which impacts margins.
Moody's previous rating action for JMC was on September 29, 2009,
when the company's ratings were confirmed (B2 CFR) and a negative
rating outlook was assigned, concluding a review for possible
downgrade that began in June 2009.
Headquartered in Beachwood, Ohio, John Maneely Company
manufactures steel pipe, hollow structural steel, electrical
conduit products and tubular products at ten manufacturing
facilities in the U.S. and Canada. The Company is number one or
two in its key product areas: HSS, standard pipe and electrical
conduit. JMC also enjoys leading market positions in the
galvanized mechanical tube and fittings markets. Its products are
sold principally to plumbing and electrical distributors. JMC's
parent, DBO Holdings, Inc., is approximately 55% owned by the
Carlyle Partners IV, LP.
KAISER GROUP: Squire Sanders Escapes Malpractice Suit
-----------------------------------------------------
Bankruptcy Law360 reports that Squire Sanders & Dempsey LLP has
escaped a malpractice suit filed by Kaiser Group International
Inc. alleging it failed to warn the bankrupt company that a
particular class of creditors had the right to seize hundreds of
thousands of shares of the reorganized entity. Law360 says Judge
Mary F. Walrath of the U.S. Bankruptcy Court for the District of
Delaware on Friday granted Squire Sanders' motion to dismiss
Kaiser's adversary proceeding in its entirety as time-barred.
Kaiser sued (Bankr. D.C. Adv. Pro. No. 08-10020) Squire Sanders &
Dempsey LLP. The lawsuit was filed in the Superior Court of the
District of Columbia on July 3, 2008. The law firm removed the
litigation to the U.S. District Court, which automatically
referred it to the Bankruptcy Court on July 31, 2008. The
Honorable S. Martin Teel, Jr., denied Kaiser's request for remand
or abstention, and granted the law firm's request to transfer the
adversary proceeding to the U.S. Bankruptcy Court for the District
of Delaware.
Kaiser says that Squire Sanders was negligent in drafting its
chapter 11 plan "in a manner that was not in compliance with
Bankruptcy Code" by failing to separately classify a claim
[without discussing that the Bankruptcy Court found in 2000 that
the plan the law firm drafted complied in all respects with 11
U.S.C. Sec. 1129(a)(1), (2) and (3)].
On June 9, 2000, Kaiser Group International, Inc., and 38 of
its domestic subsidiaries voluntarily filed for protection under
Chapter 11 (Bankr. D. Del. Case Nos. 00-2263 through 00-2301).
Kaiser Group International, Inc. emerged from chapter 11 under
a Second Amended Plan of Reorganization declared effective on
December 18, 2000.
LAS VEGAS MONORAIL: Files Ch. 11 Plan, May Cease Operations 2019
----------------------------------------------------------------
Bankruptcy Law360 reports that Las Vegas Monorail Co. has filed a
proposed Chapter 11 reorganization plan, lamenting that it will be
forced to cease operations by 2019 if its debt burden is not
relieved.
About Las Vegas Monorail
Las Vegas, Nevada-based Las Vegas Monorail Company, organized by
the State of Nevada in 2000 as a nonprofit corporation, owns and
manages the Las Vegas Monorail. The Monorail is a seven-stop,
elevated train system that travels along a 3.9-mile route near the
Las Vegas Strip. LVMC has contracted with Bombardier Transit
Corporation to operate the Monorail. Though it benefits from its
tax-exempt status due to being a nonprofit entity, LVMC claims to
be the first privately-owned public transportation system in the
nation to be funded solely by fares and advertising. LVMC says it
receives no governmental financial support or subsidies.
The Company filed for Chapter 11 bankruptcy protection on
January 13, 2010 (Bankr. D. Nev. Case No. 10-10464). Gerald M.
Gordon, Esq., at Gordon Silver, assists the Company in its
restructuring effort. Alvarez & Marsal North America, LLC, is the
Debtor's financial advisor. Stradling Yocca Carlson & Rauth is
the Debtor's special bond counsel. Jones Vargas is the Debtor's
special corporate counsel. The Company estimated $10 million to
$50 million in assets and $500 million to $1 billion in
liabilities in its petition.
In May 2010, Ambac Assurance Corp. lost its bid to stay the
bankruptcy case while a district court considers whether the
bankruptcy court wrongly rejected Ambac's argument that Monorail
was a municipality and thus ineligible to be a Chapter 11 debtor.
LESLIE CONTROLS: Court Approves Disclosure Statement
----------------------------------------------------
Bankruptcy Law360 reports that a bankruptcy judge approved Leslie
Controls Inc.'s Chapter 11 disclosure statement Thursday despite
the objections of two insurance companies concerned that their
contractual rights would be trampled under the valve maker's
reorganization plan. Law360 says Judge Christopher S. Sontchi of
the U.S. Bankruptcy Court for the District of Delaware signed off
on the statement and refused motions by Fireman's Fund Insurance
Co. and Century Indemnity.
About Leslie Controls
Based in Tampa, Florida, Leslie Controls is a manufacturer of
process control valves, severe service control valves, on-off
valves, regulators, steam water heaters, actuators and controls.
Leslie is a unit of CIRCOR International, Inc.
The Company filed for Chapter 11 bankruptcy protection on July 12,
2010 (Bankr. D. Del. Case No. 10-12199). Marion M. Quirk, Esq.,
and Norman L. Pernick, Esq., at Cole, Schotz, Meisel, Forman &
Leonard, assist the Company in its restructuring effort. The
Company listed $10,000,001 to $50,000,000 in assets and
$50,000,001 to $100,000,000 in liabilities.
LESLIE CONTROLS: Fireman's Fund Challenge Proposed Plan
-------------------------------------------------------
Bankruptcy Law360 reports that Fireman's Fund Insurance Co. has
launched a challenge to Leslie Controls Inc.'s proposed blueprint
for reorganization, saying the plan fails to protect its rights
and those of other insurers in the administration of asbestos
liability claims.
About Leslie Controls
Based in Tampa, Florida, Leslie Controls is a manufacturer of
process control valves, severe service control valves, on-off
valves, regulators, steam water heaters, actuators and controls.
Leslie is a unit of CIRCOR International, Inc.
The Company filed for Chapter 11 bankruptcy protection on July 12,
2010 (Bankr. D. Del. Case No. 10-12199). Marion M. Quirk, Esq.,
and Norman L. Pernick, Esq., at Cole, Schotz, Meisel, Forman &
Leonard, assist the Company in its restructuring effort. The
Company estimated $10 million to $50 million in assets and
$50 million to $100 million in liabilities in its petition.
LOS PADRES BANK: Closed; Pacific Western Bank Assumes All Deposits
------------------------------------------------------------------
Los Padres Bank of Solvang, Calif., was closed on Friday,
August 20, 2010, by the Office of Thrift Supervision, which
appointed the Federal Deposit Insurance Corporation as receiver.
To protect the depositors, the FDIC entered into a purchase and
assumption agreement with Pacific Western Bank of San Diego,
Calif., to assume all of the deposits of Los Padres Bank.
The 14 branches of Los Padres Bank will reopen during normal
banking hours as branches of Pacific Western Bank. Depositors of
Los Padres Bank will automatically become depositors of Pacific
Western Bank. Deposits will continue to be insured by the FDIC,
so there is no need for customers to change their banking
relationship in order to retain their deposit insurance coverage.
Customers of Los Padres Bank should continue to use their existing
branch until they receive notice from Pacific Western Bank that it
has completed systems changes to allow other Pacific Western Bank
branches to process their accounts as well.
As of June 30, 2010, Los Padres Bank had around $870.4 million in
total assets and $770.7 million in total deposits. Pacific
Western Bank will pay the FDIC a premium of 0.45 percent to assume
all of the deposits of Los Padres Bank. In addition to assuming
all of the deposits of the failed bank, Pacific Western Bank
agreed to purchase essentially all of the assets.
The FDIC and Pacific Western Bank entered into a loss-share
transaction on $579.8 million of Los Padres Bank's assets.
Pacific Western Bank will share in the losses on the asset pools
covered under the loss-share agreement. The loss-share
transaction is projected to maximize returns on the assets covered
by keeping them in the private sector. The transaction also is
expected to minimize disruptions for loan customers. For more
information on loss share, visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html
Customers who have questions about the transaction can call the
FDIC toll-free at 1-800-640-2751. Interested parties also can
visit the FDIC's Web site at:
http://www.fdic.gov/bank/individual/failed/lospadres.html
The FDIC estimates that the cost to the Deposit Insurance Fund
will be $8.7 million. Compared to other alternatives, Pacific
Western Bank's acquisition was the least costly resolution for the
FDIC's DIF. Los Padres Bank is the 117th FDIC-insured institution
to fail in the nation this year, and the eighth in California.
The last FDIC-insured institution closed in the state was Butte
Community Bank, Chico, earlier on August 20.
LYONDELL CHEMICAL: Ex-Workers Seek Approval to Sue Over Bonuses
---------------------------------------------------------------
Bankruptcy Law360 reports that former employees of Lyondell
Chemical Co. have asked a bankruptcy court to allow them to launch
a breach of contract suit over allegedly unpaid bonuses.
About 300 former Lyondell employees who took voluntary buyouts as
the company nosedived have not been paid promised bonuses,
plaintiff Gilbert Cruz argues in a putative class action against
Lyondell.
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.
MARCO VELA: Case Summary & 19 Largest Unsecured Creditors
---------------------------------------------------------
Joint Debtors: Marco Vela
Emma Vela
474 Central Avenue
Jersey City, NJ 07307-2644
Bankruptcy Case No.: 10-35073
Chapter 11 Petition Date: August 15, 2010
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Judge: Morris Stern
Debtor's Counsel: Harvey I. Marcus, Esq.
LAW OFFICE OF HARVEY I. MARCUS
250 Pehle Ave., Suite 200
Saddle Brook, NJ 07663
Tel: (201) 384-2200
Fax: (201) 384-9221
E-mail: him@lawmarcus.com
Scheduled Assets: $1,695,850
Scheduled Debts: $1,444,066
A list of the Joint Debtors' 19 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/njb10-35073.pdf
MARCUS MILLER: Case Summary & 3 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Marcus A. Miller
6212 Hackney Loop
Richmond, VA 23234
Bankruptcy Case No.: 10-35662
Chapter 11 Petition Date: August 16, 2010
Court: United States Bankruptcy Court
Eastern District of Virginia (Richmond)
Judge: Kevin R. Huennekens
Debtor's Counsel: Ronald Allen Page, Jr., Esq.
RONALD PAGE, PLC
4860 Cox Road, Suite #200
Glen Allen, VA 23060
Tel: (804) 562-8704
Fax: (804) 482-2427
E-mail: rpage@rpagelaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Debtor's three largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/vaeb10-35662.pdf
MARIO LOERA: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Joint Debtors: Mario Loera
Liliana Loera
2670 Colmar Court
Reno, NV 89521
Bankruptcy Case No.: 10-53228
Chapter 11 Petition Date: August 15, 2010
Court: United States Bankruptcy Court
District of Nevada (Reno)
Judge: Gregg W. Zive
Debtor's Counsel: Kevin A. Darby, Esq.
DARBY LAW PRACTICE, LTD.
4777 Caughlin Pkwy
Reno, NV 89519
Tel: (775) 322-1237
Fax: (775) 996-7290
E-mail: kevin@darbylawpractice.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/nvb10-53228.pdf
MARKET CENTER: Oversecured Creditor's 5% Late Fee Disallowed
------------------------------------------------------------
WestLaw reports that the late fee of five percent, or $377,439,
that an oversecured creditor sought to collect based on the
Chapter 11 debtor's failure to pay the principal balance due on
its note within five days of the note's maturity date was an
unenforceable penalty under New Mexico law, and thus was not
reasonable in amount, as required for it to be allowable under the
Bankruptcy Code. The anticipated injury resulting from the
debtor's failure to pay the principal balance on the note within
five days of the note's maturity was not difficult or incapable of
accurate estimation, and the fee amount was both extravagant and
disproportionate to the anticipated injury. Allowing the creditor
both its above-market default interest and late fees on the same
debt was unreasonable, and a late fee calculated based upon the
entire balloon payment was a windfall and an unreasonable reading
of the note, particularly where the late fee purportedly applied
no matter how late the payment was made. Finally, the late-fee
provision had no purpose other than ensuring that the debtor made
payments on time, and thus functioned as a penalty. In re Market
Center East Retail Property, Inc., --- B.R. ----, 2010 WL 3088550
(Bankr. D. N.M.) (Starzynski, J.).
As reported in the Troubled Company Reporter on August 10, 2010,
the Honorable James S. Starzynski allowed ORIX Capital Market,
LLC's secured claim in the amount of $265,212, which is net of all
adjustments and payments. Judge Starzynski's Memorandum Opinion
dated Aug. 3, 2010 -- a copy of which is available at
http://www.leagle.com/unsecure/page.htm?shortname=inbco20100803664
-- shows that ORIX's prepetition and postpetition claims total
$8,408,786, the Debtor paid $8,143,574, leaving a balance of
$265,212.
Market Center East Retail Property, Inc., is a limited liability
company that has operated a retail commercial shopping center in
Albuquerque, New Mexico since 2006. It acquired the property by
purchase from a former owner in 2006 by assuming that owner's
obligations under various loan documents and by executing new
guaranties. Danny Lahave is the 100% owner of the Debtor and its
sole officer.
Market Center sought Chapter 11 bankruptcy protection (Bankr. D.
N.M. Case No. 09-11696) on April 22, 2009, as a single asset real
estate debtor. The Company is represented by Daniel J. Behles,
Esq., at Cuddy & McCarthy, LLP. At the time of the filing, the
Debtor estimated its assets and debts at less than $10 million.
The Debtor filed a Chapter 11 Plan on June 16 or 17, 2009, and
filed an Amended Chapter 11 Plan on August 30, 2009.
MARKET DALLAS: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: The Market Dallas @ Home, Inc.
aka The Market @ Home
The Market
5470 West Lovers Lane, Suite 335
Dallas, TX 75209
Bankruptcy Case No.: 10-35683
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Stacey G. Jernigan
Debtor's Counsel: Vickie L. Driver, Esq.
COFFIN & DRIVER, PLLC
7557 Rambler Rd., Suite 110
Dallas, TX 75201
Tel: (214) 377-4848
Fax: (214) 377-4858
E-mail: vdriver@coffindriverlaw.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 Thomas W. Duke, vice president.
MARKETXT HOLDINGS: Settles Chimera's $37M Claim for $730K
---------------------------------------------------------
Bankruptcy Law360 reports that Chimera Capital LP has agreed to a
$730,000 settlement on a $37 million claim it lodged against the
estate of MarketXT Holdings Corp. over an alleged breach of an
exclusive trading agreement. Law360 says the settlement, approved
Wednesday by Judge Allan Gropper of the U.S. Bankruptcy Court for
the Southern District of New York, puts an end to a nearly eight-
year dispute.
MarketXT Holdings Corporation, fka Tradescape Corporation, was a
day-trading firm conducting electronic equity trades on all
the major U.S. stock exchanges. The Company sought Chapter 11
protection on March 26, 2004 (Bankr. S.D.N.Y. Case No. 04-12078).
Alan Nisselson served as the Chapter 11 Trustee and now serves
as the Distribution Agent and Responsible Officer of the Debtor.
Mr. Nisselson is represented by attorneys at Kaye Scholer LLP.
MESA SOUTHERN: Case Summary & 9 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Mesa Southern Suites, LLC
1310 E. Southern Avenue, Suite 200
Mesa, AZ 85204
Bankruptcy Case No.: 10-25867
Chapter 11 Petition Date: Aug 17, 2010
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: George B. Nielsen Jr.
Debtor's Counsel: Blake D. Gunn, Esq.
P.O. Box 22146
Mesa, AZ 85277-2146
Tel: (480) 710-8677
E-mail: bgunn@gunnfirm.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 nine largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/azb10-25867.pdf
The petition was signed by Ronald Walters, manager.
MPM TECHNOLOGIES: Delays Filing of Form 10-Q for 2nd Quarter 2010
-----------------------------------------------------------------
MPM Technologies Inc. said it could not timely file its quarterly
report on Form 10-Q for the period ended June 30, 2010, with the
Securities and Exchange Commission because more time is needed to
prepare financial statement from the Company's accounting data.
About MPM Technologies
Headquartered in Parsippany, N.J., MPM Technologies Inc.
(OTC BB: MPML) -- http://www.mpmtech.com/-- operates through its
three wholly owned subsidiaries: AirPol Inc., NuPower Inc. and MPM
Mining Inc. During the year ended Dec. 31, 2007, AirPol was the
only revenue generating entity. AirPol operates in the air
pollution control industry. It sells air pollution control
systems to companies in the United States and worldwide.
The company through its wholly owned subsidiary NuPower is engaged
in the development and commercialization of a waste-to-energy
process known as Skygas. These efforts are through NuPower's
participation in NuPower Partnership, in which MPM has a 58.21%
partnership interest. NuPower Partnership owns 85% of the Skygas
Venture. In addition to its partnership interest through NuPower
Inc., MPM also owns 15% of the Venture.
The Company's balance sheet at March 31, 2010, showed $1.2 million
in total assets, $14.9 million in total liabilities, all current,
and a $13.6 million stockholders' deficit.
NADER ANDRE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Nader Andre, Inc.
dba King David's Restaurant
King David's Downtown
6 Drumlins Terrace
Syracuse, NY 13224
Bankruptcy Case No.: 10-32171
Chapter 11 Petition Date: August 14, 2010
Court: United States Bankruptcy Court
Northern District of New York (Syracuse)
Debtor's Counsel: Edward J. Fintel, Esq.
EDWARD J. FINTEL & ASSOCIATES
P.O. Box 6451
430 E. Genesee St., Suite 205
Syracuse, NY 13217-6451
Tel: (315) 424-8252
Fax: (315) 424-7990
E-mail: ejfintel@aol.com
Scheduled Assets: $110,660
Scheduled Debts: $1,370,684
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nynb10-32171.pdf
The petition was signed by Nader A. Hatem, president.
NCOAT INC: Updated Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: nCoat, Inc.
7237 Pace Drive
Whitsett, NC 27377
Bankruptcy Case No.: 10-41789
Chapter 11 Petition Date: August 16, 2010
Court: United States Bankruptcy Court
Middle District of North Carolina (Greensboro)
Judge: Thomas W. Waldrep Jr.
Debtor's Counsel: John A. Northen, Esq.
Vicki L. Parrott, Esq.
NORTHERN BLUE, LLP
1414 Raleigh Road, Suite 435
P.O. Box 2208
Chapel Hill, NC 27515-2208
Tel: (919) 968-4441
E-mail: jan@nbfirm.com
vlp@nbfirm.com
Scheduled Assets: $1,375,746
Scheduled Debts: $913,619,139
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No. Petition Date
------ -------- -------------
nTech, Inc. 10-11513 8/16/10
Scheduled Assets: $1,480,231
Scheduled Debts: $174,020
High Performance Coatings, Inc. 10-11515 8/16/10
MCC, Inc., dba Jet Hot 10-11514 8/16/10
The petitions were signed by Paul Clayson, CEO.
nCoat's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Enable Growth Partners LP Series A Debenture, $346,169,721
One Ferry Building original amount
Suite 255 $4,250,000
San Francisco, CA 94111
Capital Venture Int'l Series A Debenture $122,177,548
101 California St. original amount
Suite 3250 $1,500,000
San Francisco, CA 94111
Bridge Point Master Series A Debenture $116,272,300
Fund, Ltd. original amount
1120 Sanctuary Parkway $1,500,000
Suite 325
Alpharetta, GA 30009
Knight Capital Group Series B Debenture $81,451,699
545 Washington Blvd original amount
Jersey City, NJ 70310 $1,000,000
Enable Opportunity Series A Debenture, $48,871,019
Partners LP original amount
One Ferry Building $600,000
Suite 255
San Francisco, CA 94111
Rahn & Bodmer Series B Debenture, $40,725,849
Talstrasse 15 Postfach original amount
CH 8022 Zurich, $500,000
Switzerland
GGR II - Gregory Voetsch Series B Debenture, $20,362,925
545 Washington Blvd original amount
Jersey City, NJ 70310 $250,000
GGR II - Thomas Joyce Series B Debenture, $20,362,925
545 Washington Blvd original amount
Jersey City, NJ 70310 $250,000
Jamees McCormick Series B Debenture $20,362,925
C/O FMCG original amount
90 Park Ave 18th Floor $250,000
New York, NY 10016
EGATNIV, LLC Series A Debenture, $12,217,755
150 West 46th St original amount
New York, NY 10036 $150,000
Pierce Diversified Series A Debenture, $12,217,755
Strategy/Master Fund original amount
One Ferry Building $150,000
Suite 255
San Francisco, CA 94111
Scott Lyman Series A Debenture, $12,217,755
156 Colonial Rd original amount
New Canaan, CT 06840 $150,000
E. Roger Williams Series A Debenture, $8,145,170
114 Ferris Hill Rd original amount
New Canaan, CT 06840 $100,000
Edward A Bugniazet III Series A Debenture, $8,145,170
25 Hilltop Pl original amount
Rye, NY 10580 $100,000
Mark Reinders Series A Debenture, $8,145,170
86 Codfish Hill Rd original amount
Bethel, CT 06801 $100,000
Rogers H/Nancy W Harper Series A Debenture, $8,145,170
20 Country Club Rd original amount
New Canaan, CT 06840 $100,000
William P Whalen Series A Debenture, $8,145,170
69 Oriole Way original amount
Westbury, NY 11590 $100,000
Jason Baer Series A Debenture, $4,072,585
35 Golf View Dr original amount
Easton, CT 06612 $50,000
Jeffrey Kahn Series A Debenture, $4,072,585
43 Antler Lane original amount
Wilton, CT 06897 $50,000
M Scott Moss Series A Debenture, $4,072,585
4 New Canaan Ave original amount
Norwalk, CT 06851 $50,000
A list of nTech's 14 largest unsecured creditors filed together
with the petition is available for free at
http://bankrupt.com/misc/ncmb10-11513.pdf
NEC HOLDINGS: Proofs of Claim Must Be Filed By Oct. 8, 2010
-----------------------------------------------------------
Creditors holding claims against NEC Holdings Corp. that arose
prior to June 10, 2010, have until 4:00 p.m., prevailing Eastern
Time, on October 8, 2010, to file their proofs of claim. This
General Bar Date includes claims arising under 11 U.S.C. Sec.
503(b)(9). Claim forms and additional information are available
from Garden City Group, the debtor's claims agent, at:
http://nationalenvelopeinfo.com/
About NEC Holdings
Uniondale, New York-based National Envelope Corporation --
http://www.nationalenvelope.com/-- is the largest manufacturer of
envelopes in the world with 14 manufacturing facilities and 2
distribution centers and approximately 3,500 employees in the U.S.
and Canada. The company is an environmental leader in the paper
and envelope converting industries with certifications from the
Forest Stewardship Council (FSC), Rainforest Alliance, Sustainable
Forestry Initiative (SFI), Programme for the Endorsement of Forest
Certification (PEFC), Chlorine Free Products Association, and
Green Seal.
NEC Holdings Corp., together with affiliates, including National
Envelope Inc., filed for Chapter 11 on June 10, 2010 (Bankr. D.
Del. Lead Case No. 10-11890). Kara Hammond Coyle, Esq., at Young
Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel.
David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R.
Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The
Garden City Group is the claims and notice agent.
NEC Holdings estimated in its Chapter 11 that its assets debts
range from $100,000,001 to $500,000,000.
NEFF CORP: Unsecured Creditors Seeks OK to Sue Over Buyouts
-----------------------------------------------------------
Unsecured creditors of Neff Rental Inc. have asked for permission
to sue its lenders, shareholders, and officers and directors over
a series of leveraged buyouts the creditors say pushed the
construction rental company into bankruptcy, Bankruptcy Law360
reports.
About Neff Corp.
Privately held Neff Corp., doing business as Neff Rental, provides
construction companies, golf course developers, industrial plants,
the oil industry, and governments with reliable and quality
equipment that is delivered on time where it is needed. With more
than 1,000 employees operating from branches coast to coast, Neff
Rental is ranked by Rental Equipment Register (RER) magazine as
one of the nation's 10 largest equipment rental companies.
Neff Corp. and its units, including Neff Rental Inc. filed for
Chapter 11 on May 17, 2010 (Bankr. S.D.N.Y. Case No. 10-12610).
Based in Miami, Neff has assets of $299 million and debt of
$609 million, according to the disclosure statement explaining the
plan. Funded debt totals $580 million. Revenue in 2009 was
$192 million.
NEXSTAR BROADCASTING: To Redeem All $5.3 Million Notes on Sept. 15
------------------------------------------------------------------
Nexstar Broadcasting Inc. has elected to redeem on Sept. 15, 2010,
all of its 13.5% Senior Subordinated PIK Notes due 2014 about $5.3
million outstanding at the redemption price of 109.75% of the
outstanding amount thereof together with accrued and unpaid
interest on the notes to the redemption date.
About Nexstar Broadcasting Group
Irving, Texas-based Nexstar Broadcasting Group Inc. currently
owns, operates, programs or provides sales and other services to
62 television stations in 34 markets in the states of Illinois,
Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania,
Louisiana, Arkansas, Alabama, New York, Rhode Island, Utah and
Florida. N exstar's television station group includes affiliates
of NBC, CBS, ABC, FOX, MyNetworkTV and The CW and reaches
approximately 13 million viewers or approximately 11.5% of all
U.S. television households.
* * *
Nexstar Broadcasting carries a 'B-' corporate credit rating, with
"positive" outlook, from Standard & Poor's.
NORD RESOURCES: Posts $6.15 Million Net Loss for June 30 Quarter
----------------------------------------------------------------
Nord Resources Corporation reported that net sales for the 2010
second quarter were $8.7 million from the 2010 first quarter $6.0
million and 67.3 percent higher than the $5.2 million -- including
$0.9 million from the settlement of copper hedges -- recorded in
the 2009 second quarter. The 2010 second-quarter sales were
generated from the sale of 2,729,194 pounds of copper, a 12.7
percent increase from the 2010 first-quarter level of 2,421,936
pounds and a 31.8 percent increase as compared with 2,070,034
pounds of copper sold in the 2009 second quarter. Sales during
the 2010 second quarter do not include the impact of the realized
loss from copper-hedge activity in the amount of $1.9 million as
these hedges were de-designated as cash-flow hedges and
consequently not included as an element of revenue.
For the first half of 2010, net sales were $14.7 million --
including losses of $1.9 million from the settlement of copper
hedges -- from the sale of 5,151,130 pounds of copper. Six-month
2010 sales were more than double the level for the first half of
2009 of $6.6 million from the sale of 2,626,087 pounds of copper
which does not include the $0.7 million from the sale of 280,728
pounds of copper that occurred during the first quarter of 2009
which were credited against mine development costs while the
company was still in the testing and development phase of the
mine.
The average realized price of copper sold during 2010 three and
six month periods ended June 30, 2010 was $3.19 and $2.86 per
pound, respectively. The average realized price of copper sold
during the 2010 three and six month periods ended June 30, 2010
would have been $2.50 and $2.49 per pound, respectively, if the
copper hedges would have remained classified as cash flow hedges.
The average realized price of copper sold during the three and six
month periods ended June 30, 2009 was $2.50 and $2.51 per pound,
respectively.
In the 2010 second quarter, Nord's costs applicable to sales were
$4.3 million, compared with $4.8 million in the 2009 period. For
the first six months of 2010, costs were $7.7 million, compared
with $5.7 million in the first half of 2009.
The Company's balance sheet at June 30, 2010, showed
$71.34 million in total assets, $54.68 million in total
liabilities, and a $16.65 million stockholders' equity.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6950
About Nord Resources
Based in Tuczon, Arizona, Nord Resources Corporation
(TSX:NRD/OTCBB:NRDS.OB) -- http://www.nordresources.com/-- is a
copper mining company whose primary asset is the Johnson Camp
Mine, located approximately 65 miles east of Tucson, Arizona.
Nord commenced mining new ore on February 1, 2009.
Nedbank, the Company's senior lender, has declined to extend the
forbearance agreement with respect to the scheduled principal and
interest payment in the approximate amount of $2,150,000 that was
due on March 31, 2010 under the Company's $25,000,000 secured
term-loan credit facility with Nedbank. Nedbank Capital has also
declined to extend the forbearance agreement regarding the
Company's failure to make the payment of $697,869 due on April 6,
2010 under the Copper Hedge Agreement between the parties. Both
forbearance agreements expired at midnight on May 13, 2010.
The Company is now in default of its obligations under the Credit
Agreement and the Copper Hedge Agreement with Nedbank.
On June 2, 2010, Nord Resources appointed FTI Consulting to advise
on refinancing structures and strategic alternatives.
NORTH GENERAL: Files Schedules of Assets and Liabilities
--------------------------------------------------------
North General Hospital filed with the U.S. Bankruptcy Court for
the Southern District of New York its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $23,063,836
B. Personal Property $24,606,912
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $210,998,441
E. Creditors Holding
Unsecured Priority
Claims $1,562,254
F. Creditors Holding
Unsecured Non-priority
Claims $66,959,232
----------- -----------
TOTAL $47,670,748 $279,519,927
About North General
New York-based North General Hospital is a not-for-profit 200-bed
community hospital in upper Manhattan that has serviced the
communities of East and Central Harlem since the 1970s. The
Hospital filed for Chapter 11 bankruptcy protection on July 2,
2010 (Bankr. S.D.N.Y. Case No. 10-13553). Charles E. Simpson,
Esq., at Windels, Marx, Lane & Mittendorf, LLP, assists the
Debtor in its restructuring effort.
Garfunkel Wild, P.C., is the Company's healthcare counsel.
Alvarez & Marsal is the Company's restructuring consultant.
NORWALK FURNITURE: New Owners Restart Firm with Simple Biz Plan
---------------------------------------------------------------
Dow Jones DBR Small Cap reports that Dan White has an edge that
many rivals in the slumping U.S. furniture business can only envy:
He wiped the slate clean at a venerable manufacturer, Norwalk
Furniture, and restarted the business with no union, little debt
and a simplified business plan. Nearly two years ago, Mr. White
and 11 other local investors paid about $5 million for the
choicest assets of Norwalk Furniture just before the rest of the
106-year-old company slid into bankruptcy liquidation. Mr. White,
a 60-year-old Norwalk native and entrepreneur who made his fortune
selling flood-zone data to mortgage lenders, had no experience in
furniture. But he ended up as chief executive of the resulting
firm, Norwalk Custom Order Furniture LLC. The wobbly economy is
keeping furniture sales depressed.
NT MINING: Hughes Maritime Says Firm Defaulted on Payments
----------------------------------------------------------
NT Mining Corporation on October 14, 2008, the Company entered
into a Share Purchase Agreement with Hughes Maritime Corp. under
which the company acquired all the issued shares of Bullmoose
Mines Ltd. from Hughes. Recently, Hughes has claimed that the
company has defaulted on payment for the Bullmoose shares and
therefore it is entitled to recover them.
The company is currently reviewing its position on this matter but
due to this recent and unfortunate development, the ownership of
the Bullmoose shares is in dispute.
On June 28, 2010, the company announced that it had entered into
an Agreement with Mill Bay Ventures Inc. to acquire a 100 percent
interest in mining tenures located on Valentine Mountain on the
south coast of British Columbia, Canada. The Agreement calls for
the payment of $100,000.00 cash, the issuance and delivery of
6,500,000 shares of the company to Mill Bay and a work commitment
of $1.5 million.
The Agreement is an option with a term of 30 days commencing with
a notice from Mill Bay to the company that the option period has
commenced. This notice was given on July 22, 2010.
The company has been unable to exercise the option purchase after
a non refundable deposit has been paid, because its shares were
cease-traded by the British Columbia Securities Commission on
August 18th, 2009 due to failure in meeting filing requirements in
British Columbia at that time.
The Company regrets these unfortunate developments pertaining to
its acquisitions and will continue to work vigorously to resolve
the outstanding issues. The Company will continue as an
exploration and development company with a focus on acquiring
viable 43-101 compliant properties with proven mineral reserves.
To that end, management is currently reviewing several viable
properties for possible acquisition.
About NT Mining
NT Mining Corporation engages in the exploration and development
of gold in Canada. The company is based in Richmond, Canada.
OSI RESTAURANT: Bank Debt Trades at 12% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which OSI Restaurant
Partners, Inc., is a borrower traded in the secondary market at
87.95 cents-on-the-dollar during the week ended Friday, August 20,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents an increase
of 0.83 percentage points from the previous week, The Journal
relates. The Company pays 225 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 9, 2014, and
carries Moody's B3 rating and Standard & Poor's B+ rating. The
loan is one of the biggest gainers and losers among 209 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
OSI Restaurant Partners, Inc., reported net income of
$19.23 million on $916.98 million of revenues for the three months
ended June 30, 2010, compared with a net loss of $88.06 million on
$905.77 million of revenues for the same period a year ago.
The Company said in its quarterly report on Form 10-Q, "The
recessionary economic conditions since 2008 have created a
challenging environment for us and for the restaurant industry,
and these factors have limited and may continue to limit our
liquidity. During 2009, we experienced declining revenues,
comparable store sales and operating cash flows and incurred
operating losses. We also incurred goodwill impairment charges of
$11,078,000, intangible asset impairment charges of $43,741,000,
the majority of which were recorded during the second quarter of
2009, and restaurant and other impairment charges of $94,471,000.
During the first half of 2010, we experienced a strengthening of
trends in consumer traffic and increases in comparable-store
sales. Notwithstanding these recent signs of improvement, the
industry continues to be challenged and uncertainty exists as to
the level and sustainability of these favorable trends."
The Company's balance sheet at June 30, 2010, showed $2.34 billion
in total assets, $2.450 billion in total liabilities, and a total
deficit of $106.2 million.
OSI Restaurant Partners, Inc., is the #3 operator of casual-dining
spots (behind Darden Restaurants and Brinker International), with
more than 1,400 locations in the U.S. and 20 other countries. Its
flagship Outback Steakhouse chain boasts more than 950 locations
that serve steak, chicken, and seafood in Australian-themed
surroundings. OSI also operates the Carrabba's Italian Grill
chain, with about 240 locations. Other concepts include Bonefish
Grill, Fleming's Prime Steakhouse, and Cheeseburger In Paradise.
Most of the restaurants are company owned. A group led by
Chairman Chris Sullivan took the company private in 2007.
PACIFIC STATE: Closed by Regulators; Rabobank Assumes Deposits
--------------------------------------------------------------
Butte Community Bankof Chico, Calif., and Pacific State Bank of
Stockton, Calif., were closed on Friday, August 20, 2010, by the
California Department of Financial Institutions, which then
appointed the Federal Deposit Insurance Corporation as receiver
for the two banks. To protect depositors, the FDIC entered into
purchase and assumption agreements with Rabobank, National
Association of El Centro, Calif., to assume all the deposits and
essentially all the assets of the two failed banks, which were not
affiliated with one another.
Collectively, the failed banks operated 23 branches, which will
reopen as branches of Rabobank, National Association, under their
normal business hours. Butte Community Bank has 14 branches, and
Pacific State Bank has nine branches. Depositors will
automatically become depositors of Rabobank, National Association.
Deposits will continue to be insured by the FDIC, so there is no
need for customers to change their banking relationship to retain
their deposit insurance coverage.
As of June 30, 2010, Butte Community Bank had total assets of
$498.8 million and total deposits of $471.3 million; and Pacific
State Bank had total assets of $312.1 million and total deposits
of $278.8 million. Rabobank, National Association will pay the
FDIC a premium of 4.05 percent to assume all of the deposits of
Butte Community Bank, but it did not pay the FDIC a premium for
the deposits of Pacific State Bank.
The FDIC and Rabobank, National Association entered into loss-
share transactions on $425.4 million of Butte Community Bank's
assets; and $249.7 million of Pacific State Bank's assets.
Rabobank, National Association will share in the losses on the
asset pools covered under the loss-share agreement. The loss-
share transaction is projected to maximize returns on the assets
covered by keeping them in the private sector. The transaction
also is expected to minimize disruptions for loan customers. For
more information on loss share, visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html
Customers who have questions about the transactions can call the
FDIC toll free: for Butte Community Bank customers, 1-800-450-
5417; and for Pacific State Bank customers, 1-800-640-2693.
Interested parties also can visit the FDIC's Web sites:
for Butte Community Bank,
http://www.fdic.gov/bank/individual/failed/butte.html
and for Pacific State Bank,
http://www.fdic.gov/bank/individual/failed/pacificbk.html
The FDIC estimates that the cost to the Deposit Insurance Fund for
Butte Community Bank will be $17.4 million; and for Pacific State
Bank, $32.6 million. Compared to other alternatives, Rabobank,
National Association's acquisition was the least costly resolution
for the FDIC's DIF.
These closings bring the total for the year to 116 banks in the
nation, and the seventh and eighth in California. Prior to these
failures, the last FDIC-insured bank closed in the state was
Granite Community Bank, National Association, Granite Bay, on
May 28, 2010.
PATRICIA MUHAMMAD: Case Summary & 14 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Patricia Muhammad
4940 W. Walton
Chicago, IL 60651
Bankruptcy Case No.: 10-36649
Chapter 11 Petition Date: August 17, 2010
Court: U.S. Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Carol A. Doyle
Debtor's Counsel: Debra J. Vorhies Levine, Esq.
LAW OFFICES OF DEBRA V. LEVINE
53 W. Jackson Boulevard, Suite 404
Chicago, IL 60604
Tel: (312) 259-5970
Fax: (312) 588-0785
E-mail: debravlevine@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Debtor's 14 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ilnb10-36649.pdf
PATRICK BALLANTINE: Files for Chapter 7 Bankruptcy Protection
-------------------------------------------------------------
Wayne Faulkner at StarNewsOnline.com, citing papers filed with the
court, reports that former state senator Patrick Ballantine filed
for bankruptcy under Chapter 7, listing assets of $819,937 and
liabilities of $6.2 million.
Mr. Ballantine has more than $3 million in debt in connection with
investments in The Peninsula development in Ocean Isle Beach,
where he held a 12.5% interest, according to the report. BB&T was
the guarantor of that development loan and is owed $2.8 million.
Mr. Ballantine's Waste Hauling Services LLC owes several creditors
about $342,000 including a $212,000 claim to the New Hanover
County landfill. Waste Hauling also owes $3,000 to Brunswick
County Solid Waste; $10,000, Horry County Solid Waste; and $5,600,
Onlslow County Solid Waste. Most the claims to Waste Hauling are
disputed, relates Mr. Faulkner.
PATRIOT STEEL: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Patriot Steel Inc.
dba Patriot Steel Trucking LLC
3350 Claremont Avenue
Evansville, IN 47712
Bankruptcy Case No.: 10-7146
Chapter 11 Petition Date: August 17, 2010
Court: U.S. Bankruptcy Court
Southern District of Indiana (Evansville)
Judge: Basil H. Lorch, III
Debtor's Counsel: Maurice E. Doll, Esq.
P.O. Box 730
Newburgh, IN 47629
Tel: (812) 858-2933
Fax: (812) 858-2955
E-mail: morriedoll@hotmail.com
Scheduled Assets: $1,030,000
Scheduled Debts: $5,842,673
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/insb10-71462.pdf
The petition was signed by Jack D. Cook, president.
PCS EDVENTURES: Posts $395,400 Net Loss in Q1 Ended June 30
-----------------------------------------------------------
PCS Edventures!.com, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $395,374 on $485,241 of revenue for
the three months ended June 30, 2010, compared with a net loss of
$449,682 on $464,882 of revenue for the three months ended
June 30, 2009.
The Company's balance sheet as of June 30, 2010, showed
$1.64 million in total assets, $480,236 in total liabilities, and
a stockholders' equity of $1.16 million.
M&K CPAS PLLC expressed substantial doubt about the Company's
ability to continue as a going concern, following its fiscal 2010
results. The firm noted that the Company has suffered reoccurring
losses and negative cash flow from operations.
The Company discloses in its latest 10-Q that it has accumulated
significant losses and that its established source of revenues is
not sufficient to cover its operating costs.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?698f
About PCS Edventures!.com
Boise, Idaho-based PCS Edventures!.com, Inc. (OTC BB: PCSV) --
http://www.edventures.com/-- is engaged in the design,
development and delivery of educational learning labs bundled with
related technologies and programs to the K-12 market worldwide.
The PCS suite of products ranges from hands-on learning labs in
technology-rich topics in Science, Technology, Engineering and
Math (STEM) to services rich in imagination, innovation, and
creativity. PCS programs operate in over 6,000 sites in all 50
United States as well as in 17 countries internationally.
PEARVILLE LP: Wins Final Approval to Use Cash Collateral
--------------------------------------------------------
American Bankruptcy Institute reports that bankruptcy Judge Karen
K. Brown gave Pearville LP final approval to use its cash
collateral for normal operating expenses leading up to a planned
reorganization.
Houston, Texas-based Pearville, L.P., filed for Chapter 11
bankruptcy protection on May 14, 2010 (Bankr. S.D. Texas Case No.
10-34074). Thomas H. Grace, Esq., at Spencer Crain Cubbage Healy
& McNamara, assists the Debtor in its restructuring effort. In
its schedules, the Debtor listed $12,233,583 in total assets and
$11,993,598 in total liabilities.
PETCO ANIMAL: Bank Debt Trades at 4% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which PETCO Animal
Supplies, Inc., is a borrower traded in the secondary market at
96.08 cents-on-the-dollar during the week ended Friday, August 20,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents an increase
of 0.42 percentage points from the previous week, The Journal
relates. The Company pays 200 basis points above LIBOR to borrow
under the facility. The bank loan matures on September 26, 2013,
and carries Moody's B1 rating and Standard & Poor's B+ rating.
The loan is one of the biggest gainers and losers among 209 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
PETCO Animal Supplies, Inc., headquartered in San Diego,
California, is a specialty retailer of premium supplies, food and
services for household pets. The Company operates about 1,000
stores in all 50 U.S. states. Revenues were about $2.6 billion
for the last twelve months ending May 2, 2009.
PETCO carries 'B2' corporate family rating and probability of
default rating from Moody's Investors Service.
PETROFLOW ENERGY: Files for Bankruptcy Protection in Canada & U.S.
------------------------------------------------------------------
Petroflow Energy Ltd. filed a voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the District of Delaware. Petroflow
will seek recognition of the U.S. chapter 11 proceedings from the
Alberta Court of Queen's Bench under the Companies' Creditors
Arrangement Act in Canada, and will seek to have its chapter 11
case jointly administered with those of its two chapter 11 debtor
affiliates under the caption "In re North American Petroleum
Corporation USA, Case # 10-11707 (CSS)."
Additional information on the Chapter 11 Petition, including
access to documents filed with the Court and other general
information about the chapter 11 cases is available at
http://dm.epiq11.com/napcus/
About Petroflow Energy
Petroflow Energy is the parent of Denver, Colorado-based North
American Petroleum Corp. USA and Prize Petroleum Corp.
North American Petroleum is a natural gas driller. North American
Petroleum filed for Chapter 11 bankruptcy protection on May 25,
2010 (Bankr. D. Del. Case No. 10-11707). Attorneys at Kirkland &
Ellis LLP serve as bankruptcy counsel. Domenic E. Pacitti, Esq.,
at Klehr Harrison Harvey Branzburg LLP, is the Debtor's Delaware
counsel. Kinetic Advisors LLC is the Company's restructuring
advisor. Epiq Bankruptcy Solutions, LLC, is the Debtor's notice,
claims and balloting agent. The Debtor estimated its assets and
debts at $100 million to $500 million as of the Petition Date.
The Debtor's affiliate, Prize Petroleum LLC, filed a separate
Chapter 11 petition on May 25, 2010 (Case No. 10-11708).
PHOENIX FOOTWEAR: Board Names Kevin Wulff as Director
-----------------------------------------------------
The Board of Directors of Phoenix Footwear Group Inc. appointed
Kevin G. Wulff to serve on the Company's Board of Directors
effective August 10, 2010. Mr. Wulff has been determined to be
independent under the NYSE Amex listing standards. He has not
been appointed to any committee of the Board of Directors at this
time.
Mr. Wulff's term will expire at the Company's next annual meeting
of stockholders.
There are no arrangements or understandings between Mr. Wulff and
any other person pursuant to which he was appointed as a director
of the Company. Mr. Wulff is not party to any transactions with
the Company pursuant to Item 404(a) of Regulation S-K.
As a non-employee director of the Company, Mr. Wulff is entitled
to receive cash compensation in the form of an annual retainer of
$20,000, which will be prorated for fiscal year 2010, and he will
also be reimbursed for reasonable expenses incurred in connection
with attendance of board meetings. Further, he will be eligible
to receive stock options and other stock awards under the
Company's Amended and Restated 2001 Long Term Incentive Plan.
About Phoenix Footwear
Based in Carlsbad, California, Phoenix Footwear Group, Inc. (NYSE
Amex: PXG) specializes in quality comfort women's and men's
footwear with a design focus on fitting features. Phoenix
Footwear designs, develops, markets and sells footwear in a wide
range of sizes and widths under the brands Trotters(R),
SoftWalk(R), and H.S. Trask(R). The brands are primarily sold
through department stores, leading specialty and independent
retail stores, mail order catalogues and internet retailers and
are carried by approximately 650 customers in more than 900 retail
locations throughout the U.S. Phoenix Footwear has been engaged
in the manufacture or importation and sale of quality footwear
since 1882.
* * *
According to the Troubled Company Reporter on May 17, 2010,
Phoenix Footwear Group, Inc., warned in a regulatory filing with
the Securities and Exchange Commission that it does not expect it
will be in compliance with a covenant under an agreement with
First Community Financial as of the end of May 2010. First
Community Financial is a division of Pacific Western Bank.
PLASTIPAK HOLDINGS: S&P Gives Stable Outlook, Keeps 'BB-' Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlooks on Plymouth, Mich.-based Plastipak Holdings Inc. and its
wholly owned subsidiary Plastipak Packaging Inc. to stable from
positive. At the same time, S&P affirmed its ratings including
its 'BB-' corporate credit ratings on the companies.
"The outlook revision reflects S&P's expectation that leverage
related credit metrics will not improve as previously anticipated
to meet its elevated expectation for a higher rating, but instead
will remain stable or possibly weaken slightly in fiscal 2011
relative to 2009 and 2010," said Standard & Poor's credit analyst
Paul Kurias.
Still, S&P expects credit metrics to remain appropriate for the
'BB-' corporate credit rating. A slight increase in debt levels
and S&P's expectation for a slowdown in EBITDA growth or slightly
weaker EBITDA are contributing to S&P's lower expectations for
leverage related credit metrics. S&P expects the key ratio of
funds from operations to total debt to remain in the 15% to 20%
range, which is lower than S&P's previous expectation of over 20%
on a sustained basis. As of May 1, 2010, the ratio was about 20%.
Despite volume growth, the operating environment for Plastipak is
expected to remain somewhat challenging. The company benefitted
in 2009 and early 2010 from favorable resin input costs and
product pricing. S&P does not expect these benefits to be
consistently sustained in the next several quarters. S&P also
expects cash flow to weaken somewhat from higher capital spending
and greater working capital needs. Free cash flow turned positive
in 2009 after several previous quarters of being negative.
S&P's ratings on Plastipak reflect a fair business position in the
fragmented and highly competitive rigid plastic packaging industry
and an aggressive financial profile. Privately held Plastipak,
with annual revenues of about $1.9 billion, is a leading producer
of rigid, blow-molded plastic containers for various end markets.
POINT BLANK: Seeks to Retain Goldin as Financial Advisor
--------------------------------------------------------
BankruptcyData.com reports that Point Blank Solutions' official
committee of equity security holders filed with the U.S.
Bankruptcy Court a motion seeking to retain Goldin Associates
(Contact: David Pauker) as financial advisor for a monthly fee of
$30,000 and a transaction fee of $500,000 upon consummation of a
Plan of Reorganization.
Separately, BankruptcyData.com says the Court approved the
Company's motion seeking to retain Navigant as government contract
consultant and the equity security holders' committee's motions to
retain to retain Morrison Cohen as co-counsel and Bayard as co-
counsel.
About Point Blank
Headquartered in Pompano Beach, Florida, Point Blank Solutions,
Inc. -- http://www.pointblanksolutionsinc.com/-- designs and
produces body armor systems for the U.S. Military, Government and
law enforcement agencies, well as select international markets.
The Company is recognized as the largest producer of soft body
armor in the U.S. The Company maintains facilities in Pompano
Beach, Florida and Jacksboro, Tennessee.
Point Blank Solutions filed for Chapter 11 on April 14, 2010
(Bankr. D. Del. Case No. 10-11255). Laura Davis Jones, Esq., and
Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP
serve as bankruptcy counsel to the Debtor. Olshan Grundman Frome
Rosenweig & Wolosky LLP serves as corporate counsel. T. Scott
Avila of CRG Partners Group LLC is the restructuring officer.
The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Equity Security
Holders in the case. The Equity Committee has tapped Morrison
Cohen LLP, and The Bayard, P.A., as counsel.
PORT ARTHUR: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Port Arthur Chemical & Environmental Services, LLC
2420 South Gulfway Drive
Port Arthur, TX 77641
Bankruptcy Case No.: 10-36978
Chapter 11 Petition Date: August 16, 2010
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Jeff Bohm
Debtor's Counsel: Erin E. Jones, Esq.
JONES MORRIS, LLP
2700 Post Oak, Suite 1120
Houston, TX 77056
Tel: (713) 589-5061
Fax: (713) 589-5513
E-mail: erin@jonesmorris.com
Estimated Assets: $0 to $50,000
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/txsb10-36978.pdf
The petition was signed by Matt Bowman, president.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
CES Environmental Services, Inc. 10-36924 08/13/2010
REALOGY CORP: Bank Debt Trades at 13% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Realogy
Corporation is a borrower traded in the secondary market at 87.07
cents-on-the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.63
percentage points from the previous week, The Journal relates.
The Company pays 300 basis points above LIBOR to borrow under the
facility. The bank loan matures on Sept. 30, 2013, and carries
Moody's Caa1 rating and Standard & Poor's CCC- rating. The loan
is one of the biggest gainers and losers among 209 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Realogy Corporation reported net revenue of $1.3 billion for the
second quarter of 2010, a 23% increase from the same period in
2009. Realogy recorded net income of $222 million in the second
quarter of 2010 from a net loss of $15 million during the same
period in 2009.
EBITDA before restructuring and other items for the quarter was
$234 million, an improvement of $85 million year-over-year due to
revenue gains, cost reductions and productivity increases. EBITDA
for the quarter was $544 million, which included the benefit of
$314 million related to the reduction in former parent legacy
liabilities.
The Company's balance sheet at June 30, 2010, showed $8.18 billion
in total assets, $9.13 billion in total liabilities, and a
stockholders' deficit of $951.00 million.
Realogy said it ended the second quarter with strong liquidity.
It had $239 million of readily vailable cash and no outstanding
balance on its revolving credit facility as of June 30, 2010.
About Realogy Corp.
Realogy Corp. -- http://www.realogy.com/-- a global provider of
real estate and relocation services with a diversified business
model that includes real estate franchising, brokerage, relocation
and title services. Realogy's world-renowned brands and business
units include Better Homes and Gardens Real Estate, CENTURY 21,
Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group,
ERA, Sotheby's International Realty, NRT LLC, Cartus and Title
Resource Group. Collectively, Realogy's franchise systems have
approximately 15,000 offices and 270,000 sales associates doing
business in 92 countries around the world.
Headquartered in Parsippany, N.J., Realogy is owned by affiliates
of Apollo Management, L.P., a leading private equity and capital
markets investor. Realogy fully supports the principles of the
Fair Housing Act.
Realogy carries a 'CC' corporate credit rating with a "developing"
outlook from Standard & Poor's Ratings Services. S&P noted that
leverage was high, at 15x at March 2010, although this was an
improvement compared to 20x one year ago.
It has 'Caa3' corporate family and probability of default ratings,
with negative outlook, from Moody's Investors Service.
RENEGADE HOLDINGS: Judge OKs Tourtellot as Chapter 11 Trustee
-------------------------------------------------------------
Richard Craver at Winston-Salem Journal reports that a federal
bankruptcy judge approved the appointment of Peter Tourtellot,
managing director of turnaround-management company Anderson Bauman
Tourtellot Vos & Co., as Chapter 11 trustee for Renegade Holdings
Inc.
The appointment is the latest legal development regarding
Renegade, Renegade Tobacco Co. and Alternative Brands Inc., and
its 140 employees in Davie County, according to the report.
Mr. Tourtellot was nominated to serve as a chief restructuring
officer by the previous management of the company.
The Company's owner Calvin Phelps laid off several key officials
and appointed a new chief executive. The National Association of
Attorneys General requested the immediate removal of Mr. Phelps
from any management responsibilities. Mr. Phelps resigned on June
25 to resolve legal issues with the Attorney Generals.
About Renegade Holdings
Renegade Holdings and two affiliates -- Alternative Brands, Inc.
and Renegade Tobacco Company -- filed for Chapter 11 protection on
Jan. 28, 2009 (Bankr. M.D. N.C. Lead Case No. 09-50140C).
ABI is a federally licensed manufacturer of tobacco products
consisting primarily of cigarettes and cigars. RTC distributes
the tobacco products produced by ABI through wholesalers and
retailers in 19 states and for export. ABI also is a contract
fabricator for private label brands of cigarettes and cigars which
are produced for other licensed tobacco manufacturers.
ABI and RTC are subsidiaries of RHI. The stock of RHI is owned
indirectly by Calvin A. Phelps through his ownership of the stock
of Compliant Tobacco, LLC which, in turn, owns all of the stock of
RHI which in turn owns all of the stock of RTC and ABI. Until his
resignation shortly before the June 26 hearing, Mr. Phelps was the
chief executive officer of all three companies. All three of the
Debtors' have their offices and production facilities in
Mocksville, North Carolina.
RIMA SHAHBAZIAN: Case Summary & 9 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Rima Shahbazian
aka Rima Isaian
17700 N. W. Cornell Road
Beaverton, OR 97006
Bankruptcy Case No.: 10-44596
Chapter 11 Petition Date: Aug 17, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Vincent P. Zurzolo
Debtor's Counsel: Stephen R Wade, Esq.
THE LAW OFFICES OF STEPHEN R. WADE
400 N. Mountain Avenue, Suite 214B
Upland, CA 91786
Tel: (909) 985-6500
Fax: (909) 985-2865
E-mail: dp@srwadelaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Debtor's nine largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-44596.pdf
ROBERT CARCHIETTA: Case Summary & 10 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Robert Carchietta
323 Sarah Wells Trail
Goshen, NY 10924
Bankruptcy Case No.: 10-37457
Chapter 11 Petition Date: August 16, 2010
Court: United States Bankruptcy Court
Southern District of New York (Poughkeepsie)
Judge: Cecelia G. Morris
Debtor's Counsel: Andrea B. Malin, Esq.
GENOVA & MALIN, ATTORNEYS
The Hampton Center, 1136 Route 9
Wappingers Falls, NY 12590-4332
Tel: (845) 298-1600
Fax: (845) 298-1265
E-mail: genmallaw@optonline.net
Scheduled Assets: $910,000
Scheduled Debts: $5,349,875
A list of the Debtor's 10 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nysb10-37457.pdf
ROBERT GARTON: Case Summary & 4 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Robert Otis Garton, Jr
27127 SE 403rd Street
Enumclaw, WA 98022
Bankruptcy Case No.: 10-19521
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Western District of Washington (Seattle)
Judge: Marc Barreca
Debtor's Counsel: Larry B. Feinstein, Esq.
VORTMAN & FEINSTEIN
500 Union St., Suite 500
Seattle, WA 98101
Tel: (206) 223-9595
E-mail: feinstein2010@gmail.com
Scheduled Assets: $787,250
Scheduled Debts: $1,082,067
A list of the Debtor's four largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/wawb10-19521.pdf
ROBERT GRIFFIN: Files Schedules of Assets and Liabilities
---------------------------------------------------------
Robert Griffin and Julia Griffin filed with the U.S. Bankruptcy
Court for the Western District of Arkansas a summary of their
schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $635,000
B. Personal Property $35,408,561
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $0
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $17,140,998
----------- -----------
TOTAL $36,043,561 $17,140,998
Greenwood, Arkansas-based Robert Griffin filed for Chapter 11
bankruptcy protection on July 6, 2010 (Bankr. W.D. Ark. Case No.
10-73471). Derrick Mark Davidson, Esq., who has an office in
Fayetteville, Arkansas, assists the Debtor in its restructuring
effort. The Company estimated its assets and debts at $10 million
to $50 million.
RONSON AVIATION: Updated Case Summary & Largest Unsec. Creditors
----------------------------------------------------------------
Debtor: Ronson Aviation, Inc.
Trenton Mercer Airport
Trenton, NJ 08628
Bankruptcy Case No.: 10-35315
Chapter 11 Petition Date: August 17, 2010
Court: U.S. Bankruptcy Court
District of New Jersey (Trenton)
Judge: Michael B. Kaplan
Debtor's Counsel: Michael D. Sirota, Esq.
COLE, SCHOTZ, MEISEL, FORMAN & LEONARD
25 Main Street
Hackensack, NJ 07601
Tel: (201) 489-3000
E-mail: msirota@coleschotz.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No. Petition Date
------ -------- -------------
RCLC, Inc. 10-35313 8/17/10
Assets: $1,000,001 to $10,000,000
Debts: $1,000,001 to $10,000,000
RCPC Liquidating Corporation 10-35318 8/17/10
Assets: $1,000,001 to $10,000,000
Debts: $1,000,001 to $10,000,000
The petitions were signed by Daryl K. Holcomb, chief financial
officer of RCLC, Inc. fka Ronson Corp.
Ronson Aviation's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Pension Benefits Guaranty Corp. -- $4,410,361
P.O. Box 77000
Detroit, MI 48277-0430
Multiservice -- $61,156
8650 College Boulevard
Overland Park, KS 66210
Phillip Baier -- $32,449
5 Soluff Drive
Hamilton, NJ 08610
George Zailer -- $24,593
US Customs -- $20,769
Eastern Aviation Fuels -- $19,034
Lynda Sacharov -- $18,027
Kathy Dawson -- $18,027
Central Jersey Landscaping Inc. -- $13,470
Cessna Aircraft Co. -- $12,009
PSE&G -- $11,930
Sensenich Prop. Serv., Inc. -- $11,807
PHI Air Medical Group -- $10,914
Ascent Technologies Group, Inc. -- $8,142
Internal Revenue Service -- $7,649
Hawker Beechcraft -- $7,124
State of New Jersey -- $6,034
Village Catering -- $5,038
Robert Serafini -- $4,850
Air BP Aviation Services -- $4,760
A list of RCLC, Inc.'s 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/njb10-35313.pdf
A list of RCPC Liquidating's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/njb10-35318.pdf
SALLY BEAUTY: Bank Debt Trades at 3% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which Sally Beauty
Holdings, Inc., is a borrower traded in the secondary market at
96.77 cents-on-the-dollar during the week ended Friday, August 20,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents an increase
of 0.38 percentage points from the previous week, The Journal
relates. The Company pays 250 basis points above LIBOR to borrow
under the facility. The bank loan matures on November 18, 2013,
and carries Moody's B1 rating and Standard & Poor's BB+ rating.
The loan is one of the biggest gainers and losers among 209 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
About Sally Beauty Holdings
Based in Denton, Texas, Sally Beauty Holdings Inc. (NYSE: SBH) --
http://www.sallybeautyholdings.com/-- is an international
specialty retailer and distributor of professional beauty
supplies. Through the Sally Beauty Supply and Beauty Systems
Group businesses, the company sells and distributes through over
3,500 stores, including approximately 200 franchised units,
throughout the United States, the United Kingdom, Canada, Puerto
Rico, Mexico, Japan, Ireland, Spain and Germany.
Beauty Systems Group stores, branded as CosmoProf or Armstrong
McCall stores, along with its outside sales consultants, sell up
to 9,800 professionally branded products including Paul Mitchell,
Wella, Sebastian, Goldwell, and TIGI which are targeted
exclusively for professional and salon use and resale to their
customers.
The Company's balance sheet at June 30, 2010, showed $1.51 billion
in total assets, $2.04 billion in total liabilities, and
stockholders' deficit of $525.50 million.
SANDISK CORP: S&P Assigns 'BB-' Senior Unsecured Rating
-------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'BB-'
senior unsecured rating (the same as the corporate credit rating)
to Milpitas, Calif.-based SanDisk Corp.'s proposed $1 billion in
senior convertible notes. The recovery rating is '4', indicating
meaningful (30%-50%) recovery in the event of a payment default.
The company will use proceeds of the new notes issue to retire
existing debt at maturity and for other general corporate
purposes. Pro forma leverage, including the new and existing
debt, is still low at about 1.4x.
"The rating on SanDisk," said Standard & Poor's credit analyst
Lucy Patricola, "reflects S&P's expectation that earnings and cash
flow will continue to fluctuate sharply over a cycle." Currently,
the company is in a strong cyclical upswing, generating credit
measures that are stronger than those consistent with an
"aggressive" financial profile.
"Still," added Ms. Patricola, "the rating incorporates a tolerance
for sharp industry downturns, elevated leverage, and negative cash
flow." Significant industry risk arising from technology shifts,
high capital spending, and volatile cash flows contribute to S&P's
"vulnerable" business risk. As a result, S&P expects the
company's financial profile to be meaningfully stronger than
medians for the rating.
The company's 'BB-' corporate credit rating and stable outlook
remain unchanged.
Ratings List
SanDisk Corp.
Corporate Credit Rating BB-/Stable/--
Ratings Assigned
SanDisk Corp.
Senior Unsecured
$1 bil. senior convertible notes BB-
Recovery Rating 4
SEA ISLAND: Court Extends Filing of Schedules Until Sept. 8
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Georgia
extended, at the behest of Sea Island Company, et al., the
deadline to file schedules of assets and liabilities and
statements of financial affairs until September 8, 2010.
The Debtors believe that they will be unable to compile all the
information necessary for the preparation and filing of the
schedules within the previous 14-day deadline. The Debtors said
that to prepare the schedules, they must gather information from
books, records, and documents relating to a multitude of
transactions. According to the Debtors, collection of the
necessary information requires the expenditure of substantial time
and effort on the part of the Debtors' limited and already over-
burdened employees.
St. Simons Island, Georgia-based Sea Island Company --
http://www.seaisland.com/-- aka Sea Island Shooting School, Sea
Island Yacht Club, Sea Island Stables, and Cabin Bluff, is a
private resort and real estate development company founded in
1926, Sea Island Company owns and operates Sea Island Resorts,
featuring two of the world's most exceptional destinations: the
Forbes Five-Star Cloister at Sea Island and The Lodge at Sea
Island. Sea Island is filing a Chapter 11 plan based upon an
agreement to sell substantially all of its assets to Sea Island
Acquisition LP, a limited partnership formed by investment funds
managed by the global investment firms Oaktree Capital Management,
L.P., and Avenue Capital Group.
Sea Island filed for Chapter 11 protection on August 10, 2010
(Bankr. S.D. Ga. Case No. 10-21034). Sarah R. Borders, Esq.;
Harris Winsberg, Esq.; Sarah L. Taub, Esq.; and Jeffrey R. Dutson,
Esq., at King & Spalding LLP, assists the Debtor in its
restructuring effort. Robert M. Cunningham, Esq., at Gilbert,
Harrell, Sumerford & Martin PC, is the Debtor's co-counsel. FTI
Consulting, Inc., is the Debtor's restructuring advisor. EPIQ
Bankruptcy Solutions, LLC, is the Debtor's claims and notice
agent. The Debtor estimated its assets and debts at $500 million
to $1 billion as of the Petition Date.
Affiliates Sea Island Coastal Properties, LLC; Sea Island
Services, Inc.; Sea Island Resort Residences, LLC; Sea Island
Apparel, LLC; First Sea Island, LLC; and Sical, LLC, filed
separate Chapter 11 petitions on August 10, 2010.
SEA ISLAND: Taps King & Spalding as Bankruptcy Counsel
------------------------------------------------------
Sea Island Company, et al., ask for authorization from the U.S.
Bankruptcy Court for the Southern District of Georgia to employ
King & Spalding LLP as bankruptcy counsel, nunc pro tunc to the
Petition Date.
K&S will, among other things:
(a) prepare on behalf of the Debtors all necessary motions,
applications, answers, orders, reports, and other papers
in connection with the administration of the Debtors'
estates;
(b) negotiate and prepare on behalf of the Debtors a plan, a
disclosure statement, and all related documents;
(c) negotiate and prepare documents relating to the
disposition of assets, as requested by the Debtors; and
(d) advise the Debtors on finance, finance-related matters
and transactions, and matters relating to the sale of the
Debtors' assets.
K&S will be paid based on the hourly rates of its personnel:
Sarah R. Borders, Partner $710
Harris Winsberg, Partner $550
Sarah Taub, Associate $455
Jeff Dutson, Associate $360
Missy Heinz, Senior Paralegal $260
Sarah R. Borders, Esq., a partner in K&S, assures the Court that
the firm is "disinterested" as that term is defined in Section
101(14) of the Bankruptcy Code.
St. Simons Island, Georgia-based Sea Island Company --
http://www.seaisland.com/-- aka Sea Island Shooting School, Sea
Island Yacht Club, Sea Island Stables, and Cabin Bluff, is a
private resort and real estate development company founded in
1926, Sea Island Company owns and operates Sea Island Resorts,
featuring two of the world's most exceptional destinations: the
Forbes Five-Star Cloister at Sea Island and The Lodge at Sea
Island. Sea Island is filing a Chapter 11 plan based upon an
agreement to sell substantially all of its assets to Sea Island
Acquisition LP, a limited partnership formed by investment funds
managed by the global investment firms Oaktree Capital Management,
L.P., and Avenue Capital Group.
Sea Island filed for Chapter 11 protection on August 10, 2010
(Bankr. S.D. Ga. Case No. 10-21034). Robert M. Cunningham, Esq.,
at Gilbert, Harrell, Sumerford & Martin PC, is the Debtor's co-
counsel. FTI Consulting, Inc., is the Debtor's restructuring
advisor. EPIQ Bankruptcy Solutions, LLC, is the Debtor's claims
and notice agent. The Debtor estimated its assets and debts at
$500 million to $1 billion as of the Petition Date.
Affiliates Sea Island Coastal Properties, LLC; Sea Island
Services, Inc.; Sea Island Resort Residences, LLC; Sea Island
Apparel, LLC; First Sea Island, LLC; and Sical, LLC, filed
separate Chapter 11 petitions on August 10, 2010.
SEA ISLAND: Wants to Hire Gilbert Harrell as Co-Counsel
-------------------------------------------------------
Sea Island Company, et al., ask for authorization from the U.S.
Bankruptcy Court for the Southern District of Georgia to employ
Gilbert, Harrell, Sumerford & Martin, P.C., as co-counsel, nunc
pro tunc to the Petition Date.
Gilbert Harrell will, among other things:
(a) advise the Debtors with respect to their powers and
duties as debtors-in-possession in the continued
management and operation of their business;
(b) take all necessary action to protect and preserve the
estates of the Debtors, including the prosecution of
actions on the Debtors' behalf, the defense of any
actions commenced against the Debtors, the negotiation of
disputes in which the Debtors are involved, and the
preparation of objections to claims filed against the
Debtors' estates;
(c) advise the Debtors, when appropriate, with respect to
federal and state regulatory matters; and
(d) advise the Debtors on finance, and finance-related
matters and transactions, and matters relating to the
sale of the Debtors' assets.
Gilbert Harrell assures that all work done by the firm would be
done "by committee", i.e. in concert with King & Spalding, LLP,
the Debtors' proposed bankruptcy counsel, and/or multiple members
of Gilbert Harrell.
Gilbert Harrell will be paid based on the hourly rates of its
personnel:
Senior Shareholders $200-$375
Support Staff $50-$75
Rees M. Sumerford, Esq., a shareholder in Gilbert Harrell, assures
the Court that the firm is "disinterested" as that term is defined
in Section 101(14) of the Bankruptcy Code.
St. Simons Island, Georgia-based Sea Island Company --
http://www.seaisland.com/-- aka Sea Island Shooting School, Sea
Island Yacht Club, Sea Island Stables, and Cabin Bluff, is a
private resort and real estate development company founded in
1926, Sea Island Company owns and operates Sea Island Resorts,
featuring two of the world's most exceptional destinations: the
Forbes Five-Star Cloister at Sea Island and The Lodge at Sea
Island. Sea Island is filing a Chapter 11 plan based upon an
agreement to sell substantially all of its assets to Sea Island
Acquisition LP, a limited partnership formed by investment funds
managed by the global investment firms Oaktree Capital Management,
L.P., and Avenue Capital Group.
Sea Island filed for Chapter 11 protection on August 10, 2010
(Bankr. S.D. Ga. Case No. 10-21034). FTI Consulting, Inc., is the
Debtor's restructuring advisor. EPIQ Bankruptcy Solutions, LLC,
is the Debtor's claims and notice agent. The Debtor estimated its
assets and debts at $500 million to $1 billion as of the Petition
Date.
Affiliates Sea Island Coastal Properties, LLC; Sea Island
Services, Inc.; Sea Island Resort Residences, LLC; Sea Island
Apparel, LLC; First Sea Island, LLC; and Sical, LLC, filed
separate Chapter 11 petitions on August 10, 2010.
SEA ISLAND: Wants to Hire FTI Consulting as Restructuring Advisor
-----------------------------------------------------------------
Sea Island Company, et al., ask for authorization from the U.S.
Bankruptcy Court for the Southern District of Georgia to employ
FTI Consulting, Inc., to provide restructuring management and
financial advisory services to the Debtors, nunc pro tunc to the
Petition Date.
FTI Consulting will, among other things:
a. assist with the identification and implementation of
short-term cash management procedures;
b. assist the Debtors with information and analyses required
pursuant to the Debtors' debtor-in-possession financing
including preparation for hearings regarding the use of
cash collateral and DIP financing;
c. provide strategic communication services to assist with
providing consistent and coordinated outreach to and
information for the Debtors' key stakeholders; and
d. assist with discussions with potential investors, banks
and other secured lenders, any official committee(s)
appointed in the Debtors' Chapter 11 cases, the U.S.
Trustee, other parties-in-interest and professionals
hired, as requested.
FTI Consulting will be paid based on the hourly rates of its
personnel:
Senior Managing Director $650-$825
Directors/Managing Directors/Sr. Vice Presidents $520-$685
Associates/Consultants/Assistant V.P./ Vice Presidents $255-$480
Administration/Paraprofessionals $105-$210
Timothy J. Dragelin, a senior managing director at FTI Consulting,
assures the Court that the firm is "disinterested" as that term is
defined in Section 101(14) of the Bankruptcy Code.
St. Simons Island, Georgia-based Sea Island Company --
http://www.seaisland.com/-- aka Sea Island Shooting School, Sea
Island Yacht Club, Sea Island Stables, and Cabin Bluff, is a
private resort and real estate development company founded in
1926, Sea Island Company owns and operates Sea Island Resorts,
featuring two of the world's most exceptional destinations: the
Forbes Five-Star Cloister at Sea Island and The Lodge at Sea
Island. Sea Island is filing a Chapter 11 plan based upon an
agreement to sell substantially all of its assets to Sea Island
Acquisition LP, a limited partnership formed by investment funds
managed by the global investment firms Oaktree Capital Management,
L.P., and Avenue Capital Group.
Sea Island filed for Chapter 11 protection on August 10, 2010
(Bankr. S.D. Ga. Case No. 10-21034). Sarah R. Borders, Esq.;
Harris Winsberg, Esq.; Sarah L. Taub, Esq.; and Jeffrey R. Dutson,
Esq., at King & Spalding LLP, assists the Debtor in its
restructuring effort. Robert M. Cunningham, Esq., at Gilbert,
Harrell, Sumerford & Martin PC, is the Debtor's co-counsel. EPIQ
Bankruptcy Solutions, LLC, is the Debtor's claims and notice
agent. The Debtor estimated its assets and debts at $500 million
to $1 billion as of the Petition Date.
Affiliates Sea Island Coastal Properties, LLC; Sea Island
Services, Inc.; Sea Island Resort Residences, LLC; Sea Island
Apparel, LLC; First Sea Island, LLC; and Sical, LLC, filed
separate Chapter 11 petitions on August 10, 2010.
SECUREALERT INC: Posts $2.05 Million Net Loss for June 30 Quarter
-----------------------------------------------------------------
SecureAlert Inc. filed its quarterly report on Form 10-Q,
reporting net loss of $2.05 million on $3.08 million of total
revenues in the three months ended June 30, 2010, compared with a
net loss of $5.03 million on $3.21 million of total revenues in
the same period a year ago.
The Company's balance sheet at June 30, 2010, showed
$12.34 million in total assets, $8.47 million in total liabilities
and a $3.87 million total equity.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?694f
About SecureAlert
Headquartered in Sandy, Utah, SecureAlert, Inc. (formerly
RemoteMDx, Inc.) (OTC BB: RMDX) -- http://www.securealert.com/--
and subsidiaries market and deploy offender management programs,
combining patented GPS tracking technologies, fulltime 24/7/365
intervention-based monitoring capabilities and case management
services.
* * *
As reported in the Troubled Company Reporter on January 18, 2010,
Hansen, Barnett & Maxwell, P.C., in Salt Lake City, expressed
substantial doubt about RemoteMDx, Inc., and subsidiaries' ability
to continue as a going concern, following the Company's fiscal
2008 and 2008 results. The independent public accounting firm
reported that the Company has incurred losses and has an
accumulated deficit.
SELECTO-FLASH SAFETY: Case Summary & 20 Largest Unsec. Creditors
----------------------------------------------------------------
Debtor: Selecto-Flash Safety, Inc.
P.O. Box 160
Cedar Grove, NJ 07009
Bankruptcy Case No.: 10-34907
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Judge: Morris Stern
Debtor's Counsel: Daniel J. Yablonsky, Esq.
YABLONSKY & ASSOCIATES, LLC
1430 Route 23 North
Wayne, NJ 07470
Tel: (973) 686-3800
Fax: (973) 686-3801
E-mail: ecfmail@yablaw.com
Estimated Assets: $0 to $50,000
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/njb10-34907.pdf
The petition was signed by Sulkous L. Jones, president.
SEMGROUP LP: Judge Streamlines Avoidance Claims
-----------------------------------------------
Bankruptcy Law360 reports that a bankruptcy judge approved a
motion Thursday to streamline mediation and discovery procedures
concerning allegedly fraudulent transfers made by SemCrude LP as
it teetered on the edge of insolvency.
Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the
District of Delaware granted Litigation Trustee Bettina M. Whyte's
request to stay formal discovery in 360 avoidance claims,
according to Law360.
About SemGroup, L.P.
SemGroup, L.P. -- http://www.semgrouplp.com/-- is a midstream
service company that provides diversified services for end users
and consumers of crude oil, natural gas, natural gas liquids and
refined products. Services include purchasing, selling,
processing, transporting, terminalling and storing energy.
SemGroup serves customers in the United States, Canada, Mexico and
Wales.
SemGroup L.P. and its debtor-affiliates filed for Chapter 11
protection on July 22, 2008 (Bankr. D. Del. Lead Case No.
08-11525). John H. Knight, Esq., L. Katherine Good, Esq. and Mark
D. Collins, Esq., at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq., and Sherri L. Toub, Esq., at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq., and Sylvia A.
Mayer, Esq., at Weil Gotshal & Manges LLP, represent the Debtors
in their restructuring efforts. Kurtzman Carson Consultants
L.L.C. is the Debtors' claims agent. The Debtors' financial
advisors are The Blackstone Group L.P. and A.P. Services LLC.
Margot B. Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye
Scholer LLP; and Laurie Selber Silverstein, Esq., at Potter
Anderson & Corroon LLP, represent the Debtors' prepetition
lenders.
SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude
Company, sought protection under the Companies' Creditors
Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc.,
is the appointed monitor of SemCanada Crude Company and its
affiliates' reorganization proceedings before the Canadian
Companies' Creditors Arrangement Act. The CCAA stay expires on
November 21, 2008.
SemGroup L.P.'s consolidated, unaudited financial conditions as of
June 30, 2007, showed $5,429,038,000 in total assets and
$5,033,214,000 in total debts.
SemGroup, LP, won confirmation from the Bankruptcy Court of its
Fourth Amended Plan of Reorganization on October 28, 2008. The
Plan, which distributes more than $2.5 billion in value to its
stakeholders, was declared effective November 30.
SENTRY INVESTMENTS: Disclose Delisting Date of Capital Units
------------------------------------------------------------
Sentry Select Capital Inc. disclosed that the Capital Units and
Preferred Securities of the Trust will be delisted from the
Toronto Stock Exchange at the close of business on Thursday,
September 9, 2010.
The Delisting is necessary to prepare for the scheduled
termination of the Trust which is to occur at the end of business
on September 15, 2010.
Oil Sands Split Trust
Oil Sands Split Trust offers investors both Capital Units and
Preferred Securities. The Trust holds Canadian Oil Sands Trust
units in order to fund quarterly fixed-interest payments on the
Preferred Securities and to enable the holders of the Capital
Units to participate in any capital appreciation in the COS Units
and benefit from any increase in the distributions paid on those
units.
About Sentry Investments
Sentry Investments is a Canadian asset management company that
offers a diverse range of investment products including mutual
funds, hedge funds, flow-through limited partnerships, closed-end
trusts and other alternative investments, covering a variety of
domestic and global mandates.
SHELDRAKE LOFTS: Section 341(a) Meeting Scheduled for Sept. 15
--------------------------------------------------------------
The U.S. Trustee for Region 2 will convene a meeting of Sheldrake
Lofts LLC's creditors on September 15, 2010, at 1:30 p.m. The
meeting will be held at the United States Bankruptcy Court, SDNY,
300 Quarropas Street, Room 243A, White Plains, NY 10601-5008.
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.
New Rochelle, New York-based Sheldrake Lofts LLC filed for Chapter
11 protection on August 10, 2010 (Bankr. S.D.N.Y. Case No. 10-
23650). David H. Wander, Esq., at Davidoff, Malito & Hutcher,
LLP, assists the Debtor in its restructuring effort. The Debtor
estimated its assets at $50 million to $100 million and its debts
at $10 million to $50 million as of the Petition Date.
SHOREBANK OF CHICAGO: Closed; Urban Partnership Assumes Deposits
----------------------------------------------------------------
ShoreBank of Chicago, Ill., was closed on Friday, August 20, 2010,
by the Illinois Department of Financial and Professional
Regulation, which appointed the Federal Deposit Insurance
Corporation as receiver. To protect the depositors, the FDIC
entered into a purchase and assumption agreement with Urban
Partnership Bank of Chicago, Ill., a newly-chartered institution,
to assume all of the deposits of ShoreBank.
The 15 branches of ShoreBank will reopen as branches of Urban
Partnership Bank, including those in Detroit, Michigan, and
Cleveland, Ohio, under their normal business hours. Depositors of
ShoreBank will automatically become depositors of Urban
Partnership Bank. Deposits will continue to be insured by the
FDIC, so there is no need for customers to change their banking
relationship in order to retain their deposit insurance coverage.
Customers of ShoreBank should continue to use their existing
branch until they receive notice from Urban Partnership Bank that
it has completed systems changes.
As of June 30, 2010, ShoreBank had around $2.16 billion in total
assets and $1.54 billion in total deposits. Urban Partnership
Bank will pay the FDIC a premium of 0.50 percent to assume all of
the deposits of ShoreBank. In addition to assuming all of the
deposits of the failed bank, Urban Partnership Bank agreed to
purchase essentially all of the assets except for the marketable
securities and fixed assets.
The FDIC and Urban Partnership Bank entered into a loss-share
transaction on $1.41 billion of ShoreBank's assets. Urban
Partnership Bank will share in the losses on the asset pools
covered under the loss-share agreement. The loss-share
transaction is projected to maximize returns on the assets covered
by keeping them in the private sector. The transaction also is
expected to minimize disruptions for loan customers. For more
information on loss share, visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html
Customers who have questions about the transaction can call the
FDIC toll-free at 1-800-523-8503. Interested parties also can
visit the FDIC's Web site at:
http://www.fdic.gov/bank/individual/failed/shorebank.html
The FDIC estimates that the cost to the Deposit Insurance Fund
will be $367.7 million. Compared to other alternatives, Urban
Partnership Bank's acquisition was the least costly resolution for
the FDIC's DIF. ShoreBank is the 114th FDIC-insured institution
to fail in the nation this year, and the fifteenth in Illinois.
The last FDIC-insured institution closed in the state was Palos
Bank and Trust Company, Palos Heights, on August 13, 2010.
SICEL TECHNOLOGIES: Judge Delays Hearing on Involuntary Case
------------------------------------------------------------
A judge delayed a hearing on a petition that seeks to place Sicel
Technologies, Inc. into involuntary bankruptcy. The company is
vigorously contesting the involuntary petition. Meanwhile, the
company's operations are continuing and several employees who had
previously been furloughed have returned to work to fill customer
orders.
Sicel Technologies, Inc. develops telemetric systems that provide
feedback about biological and physiological changes in cell and
organ systems. The company offers OneDose, which is a patient
dosimetry verification system used for radiation oncology therapy,
as well as provides wireless implantable sensors. The company
sells its products through distributors in Australia, Canada,
France, Italy, the United Kingdom, Ireland, Saudi Arabia, and
Spain. Sicel Technologies, Inc. was founded in 1999 and is based
in Morrisville, North Carolina. On August 10, 2010, an
involuntary petition for liquidation under Chapter 7 was filed
against Sicel Technologies, Inc. in the US Bankruptcy Court for
the Eastern District of North Carolina.
SILVER LAKE: Case Summary & 9 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Silver Lake Office Park, LLC
6817 River Road
New Hope, PA 18938
Bankruptcy Case No.: 10-16798
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Stephen Raslavich
Debtor's Counsel: Albert A. Ciardi, III, Esq.
Holly Elizabeth Smith, Esq.
CIARDI CIARDI & ASTIN, P.C.
One Commerce Square
2005 Market Street, Suite 1930
Philadelphia, PA 19103
Tel: (215) 557-3550
Fax: (215) 557-3551
E-mail: aciardi@ciardilaw.com
hsmith@ciardilaw.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 nine largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/paeb10-16798.pdf
The petition was signed by William Messick.
SONOMA VALLEY BANK: Closed; Westamerica Bank Assumes Deposits
-------------------------------------------------------------
Sonoma Valley Bank of Sonoma, Calif., was closed on Friday,
August 20, 2010, by the California Department of Financial
Institutions, which appointed the Federal Deposit Insurance
Corporation as receiver. To protect the depositors, the FDIC
entered into a purchase and assumption agreement with Westamerica
Bank of San Rafael, Calif., to assume all of the deposits of
Sonoma Valley Bank.
The three branches of Sonoma Valley Bank will reopen during normal
banking hours as branches of Westamerica Bank. Depositors of
Sonoma Valley Bank will automatically become depositors of
Westamerica Bank. Deposits will continue to be insured by the
FDIC, so there is no need for customers to change their banking
relationship in order to retain their deposit insurance coverage.
Customers of Sonoma Valley Bank should continue to use their
existing branch until they receive notice from Westamerica Bank
that it has completed systems changes to allow other Westamerica
Bank branches to process their accounts as well.
As of June 30, 2010, Sonoma Valley Bank had around $337.1 million
in total assets and $255.5 million in total deposits.
Westamerica Bank will pay the FDIC a premium of 2.0 percent to
assume all of the deposits of Sonoma Valley Bank. In addition to
assuming all of the deposits of the failed bank, Westamerica Bank
agreed to purchase essentially all of the assets.
Customers who have questions about the transaction can call the
FDIC toll-free at 1-800-913-3062. Interested parties also can
visit the FDIC's Web site at:
http://www.fdic.gov/bank/individual/failed/sonoma.html
The FDIC estimates that the cost to the Deposit Insurance Fund
will be $10.1 million. Compared to other alternatives,
Westamerica Bank's acquisition was the least costly resolution for
the FDIC's DIF. Sonoma Valley Bank is the 118th FDIC-insured
institution to fail in the nation this year, and the tenth in
California. The last FDIC-insured institution closed in the
state was Los Padres Bank, Solvang, earlier on August 20.
SOUTHEASTERN MATERIALS: Equipment Lease Was Disguised Financing
---------------------------------------------------------------
WestLaw reports that under North Carolina law, an alleged
equipment lease that a Chapter 11 debtor-lessee did not have the
ability to terminate, and under which it had the option to acquire
the equipment, at the end of the lease term, for the clearly
nominal price of $1.00, was not a true "lease," but a disguised
"security agreement," which the debtor did not have to assume or
reject. Under North Carolina law, when an alleged equipment lease
is not terminable by the lessee and there is an option to purchase
for a nominal price, the lease is, in fact, a disguised "security
agreement," and no further inquiry is necessary. In re
Southeastern Materials, Inc., --- B.R. ----, 2010 WL 2836360
(Bankr. M.D.N.C.) (Waldrep, J.).
Southeastern Materials, Inc., manufactures wooden roof trusses,
shingles, and other roofing materials. The Debtor sought Chapter
11 protection (Bankr. M.D.N.C. Case No. 09-52606) on December 30,
2009. A copy of the Debtor's Chapter 11 petition is available at
http://bankrupt.com/misc/ncmb09-52606.pdfat no charge.
SPARK DESIGN: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Spark Design, LLC
425 South Mill Avenue, Suite 301
Tempe, AZ 85281
Bankruptcy Case No.: 10-26022
Chapter 11 Petition Date: Aug 17, 2010
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: Sarah Sharer Curley
Debtor's Counsel: Lawrence D. Hirsch, Esq.
DECONCINI MCDONALD YETWIN & LACY, PC
7310 N. 16th Street, #330
Phoenix, AZ 85020
Tel: (602) 282-0472
Fax: (602) 282-0520
E-mail: lhirsch@dmylphx.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/azb10-26022.pdf
The petition was signed by Vince Adam, CEO.
STERLING FINANCIAL: To Raise $730 Million in New Capital
--------------------------------------------------------
Sterling Financial Corporation disclosed agreements to raise a
total of $730 million in new capital from institutional, private
equity and other accredited investors. The transaction is
expected to close on or about August 26, 2010.
Thomas H. Lee Partners, L.P. and Warburg Pincus Private Equity X,
L.P. have amended their agreements to increase their investments
in Sterling. Under the terms of the amendments, it is anticipated
that THL and WP would each purchase 68,366,000 shares of common
stock and 1,709,150 shares of Series B preferred stock, for an
aggregate purchase price of approximately $171 million each. THL
and WP also would receive warrants. Upon closing, THL and WP
would each own an aggregate of 22.6 percent of Sterling's pro
forma common stock on an as-converted basis and after giving
effect to the exercise of warrants.
Sterling has also entered into agreements with approximately 30
accredited investors for private placement of 155,268,000 shares
of common stock and 3,881,700 shares of Series D preferred stock
in exchange for aggregate gross proceeds of approximately $388
million in cash. In addition, as previously announced, the U.S.
Treasury will convert its $303 million investment of preferred
stock in Sterling into common shares. In aggregate, the
transactions with THL, WP, other accredited investors and U.S.
Treasury will result in the issuance of 4.2 billion shares of
Sterling common stock, assuming the conversion of preferred stock
and the exercise of warrants.
Sterling President and Chief Executive Officer Greg Seibly said,
"This commitment of $730 million in new capital represents a major
milestone in our recovery plan, and one that will substantially
strengthen our capital ratios and provide a solid base for
rebuilding long-term franchise value. The focused energies of
many at Sterling have helped us to preserve and grow our core
banking franchise in support of our customers and communities
across the Pacific Northwest. The announcement reflects the
investment community's recognition of this value."
Following the closing of the transaction and contingent on
regulatory approval, Les Biller, former vice chairman and chief
operating officer of Wells Fargo & Company, would serve as
chairman of Sterling's board of directors, and WP Managing
Director David A. Coulter and THL Managing Director Scott Jaeckel
would join Sterling's board of directors.
Les Biller said, "These investments reflect a clear vote of
confidence in the strength of the Sterling franchise and the great
progress Sterling has made in rebuilding and strengthening its
balance sheet. I look forward to working with Sterling's board
and management team."
David Coulter, WP Managing Director and co-head of its Financial
Services Group, said, "With the capital raise successfully lined
up, we are delighted to partner with Sterling in this new and
exciting chapter of its development. With its strong regional
banking franchise and talented management team, Sterling will now
be exceptionally positioned to benefit from the current
displacement in the financial services sector and to create
meaningful shareholder value."
THL Managing Director Scott Jaeckel added, "Following the closing
of the capital raise, Sterling will be well-capitalized and well-
positioned to build on its foundation as a commercial and consumer
lending leader in the Pacific Northwest. We look forward to
working with the Sterling management team to further develop the
bank as a strong platform for growth."
Each of the THL and WP investments, the private placement
transactions and the U.S. Treasury exchange previously announced
are conditioned upon each other and on other closing conditions,
including, among others, receipt of regulatory approvals and
third-party consents, Sterling's maintenance of asset levels and
capital ratios, the absence of material changes in the
characteristics of Sterling's loan portfolio, no occurrence of an
"ownership change" that would affect the preservation of certain
of Sterling's deferred tax assets, no occurrence of a material
adverse effect and no adverse change in banking or bank holding
company law, rule or regulation. Closing of the recapitalization
transactions are not conditioned upon receipt of any shareholder
approvals.
The shares of common stock and preferred stock to be purchased by
THL and WP and investors in the private placement will not be
registered under the Securities Act and may not be offered or sold
in the United States absent registration or an applicable
exemption from registration requirements.
About Sterling Financial
Spokane, Wash.-based Sterling Financial Corporation (NASDAQ: STSA)
-- http://www.sterlingfinancialcorporation-spokane.com/-- is a
bank holding company, organized under the laws of Washington State
in 1992. The principal subsidiaries of Sterling are Sterling
Savings Bank and Golf Savings Bank. Subsequent to June 30, 2010,
Golf Savings Bank was merged with and into Sterling Savings Bank,
with the mortgage banking operations of Golf Savings Bank
continuing to operate as a division of Sterling Savings Bank.
* * *
As reported in the Troubled Company Reporter on March 22, 2010,
BDO Seidman, LLP, in Spokane, Wash., expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has suffered
significant net losses during 2009 and 2008, a decline in
regulatory capital to support operations, and regulatory issues.
Sterling currently is categorized as being significantly
undercapitalized pursuant to regulatory guidelines. Both Sterling
and Sterling Savings Bank are currently operating under regulatory
agreements. Sterling has entered into a regulatory agreement with
the Federal Reserve Bank of San Francisco, and Sterling Savings
Bank has entered into a regulatory agreement with the FDIC and the
Washington Department of Financial Institutions. Both agreements
require, among other things, a return to "well capitalized"
status.
STOCK BUILDING: Lessor's Waiver Nixed Rejection Damage Claim
------------------------------------------------------------
WestLaw reports that under North Carolina law, the waiver
provision of a new lease executed by the lessor and tenant, which
stated that the lessor had suffered no damages due to the tenant's
rejection of the parties' prior lease in its Chapter 11 case and
had no claim against the bankruptcy estate for the rejection of
the prior lease, precluded any recovery by the lessor on its claim
for lease rejection damages. It did not matter that the lessor's
claim seeking such damages was filed before the new lease
containing the waiver provision was executed. In re Stock Bldg.
Supply, LLC, --- B.R. ----, 2010 WL 3002868 (Bankr. D. Del.)
(Walrath, J.).
A full-text copy of the Honorable Mary F. Walrath's Opinion dated
July 28, 2010, is available at:
http://www.leagle.com/unsecure/page.htm?shortname=inbco20100728601
Raleigh, North Carolina-based Stock Building Supply --
http://www.stockbuildingsupply.com/-- is a leading supplier of
building materials to professional home builders and contractors
in the United States. Stock operates in 19 markets including
Washington, D.C.; Paradise, Pa.; Richmond, Va.; Raleigh-Durham,
Charlotte and Winston-Salem/Greensboro, N.C.; Greenville and
Columbia, S.C.; Atlanta, Ga.; Austin, Amarillo, Houston, Lubbock
and San Antonio, Tex.; Albuquerque, N.M.; Salt Lake City and
Southern Utah; Spokane/Northern Idaho; and Los Angeles, Calif.
The Company and 25 of its affiliates filed for Chapter 11
protection on May 6, 2009 (Bankr. D. Del. Case No. 09-11554).
On that same date, the Debtor and its affiliates filed a
joint prepackaged plan of reorganization and related disclosure
statement. On June 15, 2009, the Court entered an Order
confirming the Plan. The Plan took effect on June 30, 2009.
Shearman & Sterling LLP and Young, Conaway, Stargatt & Taylor,
represent the Debtors, and FTI Consulting served as the
Debtors' restructuring consultant.
SUN-TIMES MEDIA: Unions Seek Rule 2004 Probe of STMG Holding
------------------------------------------------------------
Bankruptcy Law360 reports that two Chicago labor unions have asked
a bankruptcy judge for discovery under Rule 2004 to compel Sun-
Times Media Group Inc. buyer STMG Holding's Inc. to produce
documents related to collective bargaining agreements the
newspaper publisher allegedly breached.
In a motion filed Wednesday in the U.S. Bankruptcy Court for the
District of Delaware, the Chicago Newspaper Guild and the Chicago
Typographical Printers Union argued Sun-Times withheld health
insurance, according to Law360.
About Sun-Times Media
Sun-Times Media Group, Inc. (Pink Sheets: SUTMQ) --
http://www.thesuntimesgroup.com/-- (Pink Sheets: SUTM) owns
media properties including the Chicago Sun-Times and Suntimes.com
and 58 suburban newspaper titles and corresponding Web sites. The
Company and its affiliates conduct business as a single operating
segment which is concentrated in the publishing, printing, and
distribution of newspapers in greater Chicago, Illinois,
metropolitan area and the operation of various related Web sites.
The Company also has affiliates in Canada, the United Kingdom, and
Burma.
Sun-Times Media's balance sheet at September 30, 2008, showed
total assets of $479.9 million, total liabilities of
$801.7 million, and a stockholders' deficit of $321.8 million.
The Company and its affiliates filed for Chapter 11 bankruptcy
protection on March 31, 2009 (Bankr. D. Del. Case No. 09-11092).
James H.M. Sprayregan, P.C., James A. Stempel, Esq., David A.
Agay, Esq., and Sarah H. Seewer, Esq., at Kirkland & Ellis LLP,
assist the Debtors in their restructuring efforts. Sun-Times
Media's investment banker is Rothschild Inc. and its estructuring
advisor is Huron Consulting Group. Kurtzman Carson Consultants
LLC is the Debtors' claims agent. The Debtors disclosed
$479,000,000 in assets and $801,000,000 in debts as of November 7,
2008.
SUNGARD DATA: Bank Debt Trades at 3% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which SunGard Data
Systems, Inc., is a borrower traded in the secondary market at
97.04 cents-on-the-dollar during the week ended Friday, August 20,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents an increase
of 0.43 percentage points from the previous week, The Journal
relates. The Company pays 362.5 basis points above LIBOR to
borrow under the facility. The bank loan matures on February 28,
2016, and carries Moody's Ba3 rating and Standard & Poor's BB
rating. The loan is one of the biggest gainers and losers among
209 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Friday.
SunGard Data Systems, Inc., headquartered in Wayne, Pennsylvania,
is a provider of software and IT services to the financial
services industry well as higher education institutions and the
public sector. SunGard also provides disaster recovery/business
continuity services through its Availability Services division.
As stated by the Troubled Company Reporter on September 1, 2009,
Moody's Investors Service affirmed SunGard's 'B2' corporate family
and probability of default ratings, along with its SGL-2
speculative grade liquidity rating.
Standard & Poor's Ratings Services rates (i) SunGard's corporate
rating at 'B+', and its (ii) $2.7 billion tranche B secured term
loan maturing February 28, 2016, and the $580 million secured
revolving credit facility maturing May 11, 2013, at 'BB'.
SYS HOSPITALITY: Files for Bankruptcy Armed With Plan
------------------------------------------------------
David Keck at Daily Press reports that hotel owner SYS Hospitality
LLC has filed a plan of reorganization. The Company says its
hotel is worth $5.8 million but its debt exceeds $7 million.
SYS Hospitality owns the Hawthorn Suites by Wyndham on Dunia Road
in Victorville, California. SYS filed for Chapter 11 on April 9,
2010 (Bankr. C.D. Calif. Case No. 10-20501). Robert M. Yaspan,
Esq., serves as counsel to the Debtor.
TACO DEL MAR: Competing Bids for All Assets Due on September 29
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington
authorized Taco Del Mar Franchising Corp. and its affiliate,
Conrad & Barry Investments Inc., to sell substantially all of
TDM's assets in an auction led by Taco Del Mar Acquisition, Inc.
The Debtors scheduled an auction for the assets on September 30,
2010, at 1:00 p.m. at the offices of Karr Tuttle Campbell, 1201
Third Avenue, Suite 2900, Seattle, Washington. Competing bids are
due 5:00 p.m. on September 29.
Judge Karen A. Overstreet will consider the sale of the assets to
the proposed buyer or the winning bidder at a hearing on
October 1, at 9:30 a.m., at Courtroom 7206, 700 Stewart Street,
Seattle, Washington. Objections, if any, are due on September 24.
These parties are represented by:
1. the Debtor:
George S. Treperinas, Esq.
Karr Tuttle Campbell
1201 3rd Ave., No. 2900
Seattle, WA 98101
Tel: (206) 223-1313
Fax: (206) 682-7100
E-mail: gtreperinas@karrtuttle.com
2. the proposed buyer:
Alan M. Noskow, Esq.
Patton Boggs LLP
8484 Westpark Drive, 9th Floor
McLean, VA 22102
Tel: (703) 744-8102
Fax: (703) 744-8001
E-mail: anoskow@pattonboggs.com
3. the Official Unsecured Creditor Committee:
Geoffrey Groshong, Esq.
Miller Nash LLP
601 Union Street, No. 4400
Seattle, WA 98101
Tel: (206)777-7419
Fax: (206)622-7485
E-mail: Geoff.Groshong@millernash.com
About Taco Del Mar Franchising
Founded in Seattle, Washington, in 1992 by brothers James and John
Schmidt, Taco Del Mar is a quick-service casual restaurant chain
inspired by southern Baja, Mexico, and coastal beach shacks known
for serving some of the tastiest burritos and tacos. Today, Taco
Del Mar operates in more than 225 locations throughout the U.S.,
Canada and Guam.
Taco Del Mar Franchising Corp. and its affiliate, Conrad & Barry
Investments Inc., filed for Chapter 11 bankruptcy protection
(Bankr. W.D. Wash. Case No. 10-10528) on January 22, 2010. The
Company estimated assets at $10 million to $50 million and
liabilities at $50 million to $100 million.
TBI LLC: Case Summary & 4 Largest Unsecured Creditors
-----------------------------------------------------
Debtor: TBI LLC
P.O. Box 490
Waterbury, VT 05676
Bankruptcy Case No.: 10-11080
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
District of Vermont (Rutland)
Debtor's Counsel: Marc Elliot Wiener, Esq.
WIENER & GALE P.C.
P.O. Box 433
Burlington, VT 05402-0433
Tel: (802) 863-1836
Fax: (802) 863-1948
E-mail: marc@wgpc.com
Scheduled Assets: $1,566,057
Scheduled Debts: $1,405,993
A list of the Company's four largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/vtb10-11080.pdf
The petition was signed by Robert Burridge, president.
TELKONET INC: Posts $444,200 Net Income for June 30 Quarter
-----------------------------------------------------------
Telkonet Inc. filed its quarterly report on Form 10-Q, reporting
net income of $444,219 on $3.18 million of total revenue in the
three months ended June 30, 2010, compared with net income of
$7.41 million on $3.11 million of total revenue for the same
period a year ago.
The Company's balance sheet at June 30, 2010, showed
$16.17 million in total assets, $8.29 million in total current
liabilities, $697,557 in total long-term liabilities, and a
$6.37 million stockholders' equity.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?694e
About Telkonet
Milwaukee, Wisconsin-based Telkonet, Inc. is a clean technology
company that develops and manufactures proprietary energy
efficiency and smart grid networking technology.
RBSM LLP, in New York, 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 of
the Company's significant operating losses in the current year and
in the past.
TELTRONICS INC: Posts $3.23 Million Net Loss for June 30 Quarter
----------------------------------------------------------------
Teltronics Inc. filed its quarterly report on Form 10-Q, reporting
a net loss of $3.23 million on $6.17 million of net sales for the
three months ended June 30, 2010, compared with net income of
$1.91 million on $11.74 million of net sales for the same period a
year earlier.
The Company's balance sheet at June 30, 2010, showed
$10.14 million in total assets, $14.43 million in total current
liabilities, $4.24 million in total long-term liabilities, and a
$8.53 million stockholders' deficit.
Palmetto, Fla.-based Teltronics, Inc. (OTC BB: TELT)
-- http://ww.teltronics.com/-- designs, installs, develops,
manufactures and markets electronic hardware and application
software products, and engages in electronic manufacturing
services primarily in the telecommunication industry.
TEXAS RANGERS: New CEO Moves from Pepper Hamilton to Reed Smith
---------------------------------------------------------------
Bankruptcy Law360 reports that Charles M. "Chuck" Greenberg, the
new CEO of the Texas Rangers, has moved from Pepper Hamilton LLP,
where he headed the firm's sports practice, to Reed Smith LLP as
counsel.
Mr. Greenberg led a group of investors, including Hall of Fame
pitcher Nolan Ryan, to victory in a bidding war for ownership of
the Rangers in bankruptcy court, Law360 says.
About Texas Rangers Baseball
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.
Martin A. Sosland, Esq., at Weil, Gotshal & Manges LLP, serves as
bankruptcy counsel to the Debtor. Forshey & Prostok LLP is the
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.
TRIBUNE CO: Bank Debt Trades at 39% Off in Secondary Market
-----------------------------------------------------------
Participations in a syndicated loan under which Tribune Co. is a
borrower traded in the secondary market at 61.17 cents-on-the-
dollar during the week ended Friday, August 20, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 1.33 percentage points
from the previous week, The Journal relates. The Company pays 300
basis points above LIBOR to borrow under the facility, which
matures on May 17, 2014. Moody's has withdrawn its rating while
Standard & Poor's does not rate the bank debt. The loan is one of
the biggest gainers and losers among 209 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
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 December 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 December 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)
TRUAX CONSTRUCTION: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Truax Construction, Inc.
501 Baily Road
Landsowne, PA 19050
Bankruptcy Case No.: 10-16865
Chapter 11 Petition Date: August 16, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Eric L. Frank
Debtor's Counsel: Albert A. Ciardi, III, Esq.
Holly Elizabeth Smith, Esq.
CIARDI CIARDI & ASTIN, P.C.
One Commerce Square
2005 Market Street, Suite 1930
Philadelphia, PA 19103
Tel: (215) 557-3550
Fax: (215) 557-3551
E-mail: aciardi@ciardilaw.com
hsmith@ciardilaw.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Dennis Truax, president.
TYSON FOODS: S&P Raises Corporate Credit Rating to 'BB+'
--------------------------------------------------------
Standard & Poor's' Rating Services said that it raised its ratings
on Springdale, Ark.-based meat marketer and producer Tyson Foods
Inc., including the corporate credit rating to 'BB+' from 'BB'.
The outlook is positive.
At the same time, S&P raised the issue-level rating on Tyson'
senior unsecured notes to 'BB+' from 'BB'. The '3' recovery
ratings on the $810 million notes maturing 2014 ($810 million
outstanding as of July 3, 2010) and on the $1 billion notes
maturing 2016 ($705 million outstanding) remain unchanged. The
'4' recovery ratings on Tyson's other senior unsecured
indebtedness, including the convertible notes due 2013, also
remain unchanged.
Tyson had about $2.6 billion in reported debt outstanding as of
July 3, 2010.
"The upgrade and positive outlook reflect S&P's opinion that
operating performance continues to improve allowing the company to
accelerate debt repayments year-to-date in fiscal 2010, resulting
in credit measures that are significantly better than medians for
the 'BB' rating category," said Standard & Poor's credit analyst
Christopher Johnson. Moreover, S&P believes the company's
improved operating performance and credit measures will be
sustained beyond 2010. S&P estimates Tyson's adjusted EBITDA for
the 12 months ended July 3, 2010, more than doubled year over year
to $1.9 billion, reflecting meaningful operating income growth in
the company's key protein segments, including Chicken, Beef, and
Pork. As a result, S&P estimates adjusted debt to EBITDA for the
12 months ended July 3, 2010, improved to about 1.7x compared with
a ratio of 4.5x for the same period a year earlier. S&P expects
leverage to remain at current levels through fiscal year-end 2010.
The ratings on Tyson and its wholly owned subsidiary Tyson Fresh
Meats Inc., reflect the company's exposure to commodity price
swings and the very low-margin nature of the majority of Tyson's
sales. The company benefits from its position as one of the
largest marketers and producers of beef, chicken, and pork.
Tyson's key strengths include: its product portfolio diversity;
its position as one of the lowest-cost producers; and the high
barriers to entry in these industries.
Still, S&P believes many of the factors that can weaken operating
performance are beyond the company's control, including outbreaks
of disease and foreign governments' restrictions on the import and
export of the company's products. In several years prior to 2009,
outside factors had been of such a variety and nature that Tyson
was not able to easily withstand them. In Standard & Poor's view,
the volatility from these outside events (such as the increase in
commodity costs prior to 2009) had resulted in a very different
paradigm for the protein industry, compared with historical
patterns. However, the company took various steps to address
these issues, such as reducing excess beef-processing capacity and
taking a more prudent approach to managing its exposure to
volatile commodity input costs.
The positive outlook reflects S&P's belief that the company has
the potential to improve its operating performance and credit
measures beyond fiscal 2010. S&P would consider raising the
ratings if the company can sustain its improved operating
performance beyond fiscal 2010 while maintaining adjusted debt to
EBITDA in the 1.5x area and displaying a financial policy that is
consistent with a higher rating. S&P believes this would occur if
protein prices remain firm in 2011 as expected and the company
maintains a reported EBITDA margin above 6%. Alternatively, S&P
could lower the ratings if adjusted debt to EBITDA increased and
remained well above 3.5x. S&P believes such a scenario could
occur if grain prices spiked up again on a sustained basis similar
to 2008, while protein prices faltered (most likely in the chicken
segment where excess capacity is a higher risk), resulting in
EBITDA margins declining to the 3% area, similar to depressed
margins in 2008.
UNIVERSAL BUILDING: Unsecured Creditors Want Sale Delayed
---------------------------------------------------------
Dow Jones DBR Small Cap reports that unsecured creditors are
seeking to delay Universal Building Product Inc.'s auction. The
unsecured creditors say the Company's lender is forcing a "hurried
and condensed" bankruptcy process that discourages would-be buyers
from trying to best a $25 million bid from the lender, private-
equity firm Oaktree Capital Management LP.
As reported by the Troubled Company Reporter on August 18, 2010,
the U.S. Trustee for Region 3 named five parties to the Official
Committee of Unsecured Creditors. The members of the Creditors'
Committee are:
(1) Raytrans Distribution Services, Inc.
(2) King Steel Corporation
(3) Eastern Accessories Corp.
(4) Millennium Metals, LLC
(5) Jade-Sterling Steel Co., Inc.
The Debtors intend to sell substantially all of their assets to
UBP Acquisition Corp., an entity formed by certain funds managed
by Oaktree and Solus Alternative Asset Management LP, pursuant to
Sec. 363 of the Bankruptcy Code. The sale is subject to higher
and better offers.
The TCR, citing netDockets Blog, reported on August 9 that UBP
Acquisition acquired the Debtors' prepetition secured debt --
roughly $40.3 million -- and is proposing to credit bid $25
million of the secured claims as consideration for the assets.
netDockets said the Debtors acknowledge in bankruptcy court
filings that "the value of their businesses and assets is
substantially less than the amount of the outstanding obligations
under the Credit Agreement."
UBP Acquisition has agreed to provide a $6 million debtor-in-
possession credit facility to provide cash to fund the Debtors'
operations until the sale closes.
Bidders are required to submit a $2.5 million cash good faith
deposit and minimum bid of $26.5 million, among others. If
approved by the court, the timeline for the competitive bidding
process would be:
Objection to
Sale Process: Aug. 24, 2010 at 4:00 p.m. (Eastern)
Bid Deadline: Aug. 30, 2010, at noon (Eastern)
Auction: Sept. 2, 2010 at 9:00 a.m. (Central)
Sale Hearing: September 3, 2010
The Debtors are proposing to pay UBP Acquisition, as the stalking
horse bidder, an $850,000 expense reimbursement and $400,000
break-up fee if it is outbid at the auction.
Oaktree is a global alternative and non-traditional investment
manager with $75 billion in assets under management as of June 30,
2010. Solus is a New York-based alternative asset management
firm. Oaktree and Solus are the majority equity holders of Dayton
Superior Corp., a North American provider of specialized products
for the nonresidential concrete construction market.
About Universal Building
Westminster, California-based Universal Building Products, Inc.,
dba UBP, filed for Chapter 11 bankruptcy protection on August 3,
2010 (Bankr. D. Del. Case No. 10-12453). Mark Minuti, Esq.,
MaryJo Bellew, Esq., and Teresa K.D. Currier, Esq., at Saul Ewing
LLP, assists the Debtor in its restructuring effort. UBP
estimated $1 million to $10 million in assets and $10 million to
$50 million in debts in its petition.
The Debtor's affiliates Accubrace, Inc. (Bankr. D. Del. Case No.
10-12454), Don De Cristo Concrete Accessories, Inc. (Case No. 10-
12455), Form-Co, Inc. (Case No. 10-12456), and Universal Form
Clamp, Inc. (Case No. 10-12457), filed separate Chapter 11
petitions on August 4, 2010. Accubrace estimated $500,001 to $1
million in assets and $10 million to $50 million in debts.
U.S. ENERGY: Confirmation Hearing Set for Oct. 5, 2010
------------------------------------------------------
The Honorable Robert D. Drain has approved U.S. Energy Systems
Inc.'s Disclosure Statement explaining its First Amended Chapter
11 Plan, approved uniform solicitation and balloting procedures,
and scheduled a hearing to consider confirmation of that plan at
10:00 a.m., prevailing Eastern Time, on October 5, 2010. Holders
of allowed claims must submit their ballots by September 24, 2010,
for their votes to be counted, and any plan-related objections
must be filed and served by September 24, 2010.
Copies of all plan-related documents are available from the Claims
Agent at:
http://chapter11.EpiqSystems.com/ues/
About U.S. Energy
Based in Avon, Connecticut, U.S. Energy Systems, Inc., (Pink
Sheets: USEY) -- http://www.usenergysystems.com/-- owns green
power and clean energy and resources. USEY owns and operates
energy projects in the United States and United Kingdom that
generate electricity, thermal energy and gas production.
The company filed for Chapter 11 protection on Jan. 9, 2008 (Bank.
S.D.N.Y. Case No. 08-10054). Subsequently, 34 affiliates filed
separate Chapter 11 petitions. Peter S. Partee, Esq., at
Hunton & Williams LLP, represents the Debtor in its restructuring
efforts. Jefferies & Company, Inc., serves as the company's
financial advisor. The Debtor selected Epiq Bankruptcy Solutions
LLC as noticing, claims and balloting agent.
The Official Committee of Unsecured Creditors has yet to be
appointed in these cases by the U.S. Trustee for Region 2. When
the Debtors filed for protection from their creditors, they listed
total assets of US$258,200,000 and total debts of US$175,300,000.
UTE MESA: Case Summary & 13 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Ute Mesa Lot 1, LLC
c/o Duncan Barber, Esq.
Bieging Shapiro & Burrus, LLP
4582 S Ulster Street Parkway, Suite 1650
Denver, CO 80237
Bankruptcy Case No.: 10-30620
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: A. Bruce Campbell
Debtor's Counsel: Duncan E. Barber, Esq.
BIEGING SHAPIRO & BURRUS LLP
4582 S. Ulster St. Pkwy., Suite 1650
Denver, CO 80237
Tel: (720) 488-0220
Fax: (720) 488-7711
E-mail: dbarber@bsblawyers.com
Scheduled Assets: $10,017,982
Scheduled Debts: $11,633,024
The petition was signed by Leathem Stearn, manager.
Debtor's List of 13 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
United Western Bank Loan $5,600,000
700 17th Street, Ste 500
Denver, CO 80202
Custom Structural Steel $17,757
P.O. Box 1017
Silt, CO 81652
Ernest Kollar Engineers Services $17,159
320 Main Street, Ste 203
Carbondale, CO 81623
Haps Plumbing & Heating Services $16,314
Inc.
Lacroux Streeb Lighting Services $7,947
Design Inc.
Greg Mozian & Associates, Services $4,200
Inc.
Jack Miller & Services $2,280
Associates 2
Hepworth-Pawlak Services $1,157
Geotechnical Inc.
Garfield & Hecht, P.C. Services $1,142
Hayward Baker Services $678
Pitkin County, Colorado Unknown
Providence Builders of Construction Unknown
Aspen, LLC Contract
Ute Building Systems, Construction Unknown
LLC Contract
VEBLEN WEST: Court Orders Appointment of a Chapter 11 Trustee
-------------------------------------------------------------
WestLaw reports that while there was insufficient evidence of
continued postpetition dealings between a Chapter 11 debtor-in-
possession and other affiliated entities, the debtor's failure to
adequately explain suspicious prepetition dealings and the fact
that there were possible preference and fraudulent transfer claims
against these affiliated entities that would need to be evaluated
by an independent entity provided sufficient "cause" for the
appointment of a Chapter 11 trustee, regardless of whether the
parties moving for the appointment had to demonstrate cause by
clear and convincing, or only by a preponderance of the, evidence.
A bankruptcy judge in South Dakota nonetheless disagreed with
other courts in holding that a preponderance of the evidence
standard applied. In re Veblen West Dairy LLP, --- B.R. ----,
2010 WL 2851238 (Bankr. D. S.D.) (Nail, J.).
This decision by the Honorable Charles L. Nail grants AgStar
Financial's motion for appointment of a Chapter 11 trustee
reported in the Troubled Company Reporter on May 10, 2010.
Veblen West Dairy LLP, based in Veblen, S.D., operates a 4,000-cow
milking facility. Veblen West sought Chapter 11 protection
(Bankr. D. S.D. Case No. 10-10071) on April 7, 2010. Bryant D.
Tchida, Esq., at Leonard, Street and Deinard, P.A., in
Minneapolis, Minn., represents the Debtor. The Debtor's Schedules
disclose $15.5 million in assets and $23.7 million in liabilities
as of the Petition Date.
The Dairy Dozen-Milnor, LLP, a related milking facility, also
sought chapter 11 protection (Bankr. D. N.D. Case No. 10-30377) on
April 7, 2010. The Dairy Dozen-Thief River Falls, LLP, another
related entity, sought Chapter 11 protection (Bankr. D. Minn. Case
No. 10-60438) on April 7, 2010, and that case has been converted
to a Chapter 7 liquidation proceeding. Two additional related
entities filed Chapter 11 petitions on July 2, 2010 -- Veblen East
Dairy Limited Partnership (Bankr. D. S.D. Case No. 10-10146) and
The Dairy Dozen-Veblen, LLP (Bankr. D. S.D. Case No. 10-10147).
WECHSLER & CO.: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Wechsler & Co., Inc.
105 Kisco Avenue
Mount Kisco, NY 10549
Bankruptcy Case No.: 10-23719
Chapter 11 Petition Date: August 18, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (White Plains
Judge: Robert D. Drain
Debtor's Counsel: Jonathan S. Pasternak, Esq.
RATTET, PASTERNAK & GORDON OLIVER, LLP
550 Mamaroneck Avenue, Suite 510
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: jsp@rattetlaw.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 Jay Mittentag, chief financial officer.
WECK CORPORATION: Case Summary & 41 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: The Weck Corporation
dba Gracious Home
632 Broadway, Suite 401
New York, NY 10012
Bankruptcy Case No.: 10-14349
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Arthur J. Gonzalez
Debtor's Counsel: Mark T. Power, Esq.
HAHN & HESSEN LLP
488 Madison Avenue
New York, NY 10022
Tel: (212) 478-7200
Fax: (212) 478-7400
E-mail: MPower@HahnHessen.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Natan Wekselbaum, chairman.
Debtor-affiliates that filed separate Chapter 11 petitions:
Petition
Debtor Case No. Date
------ -------- ----
Weck Chelsea, LLC 10-14353 8/13/10
Gracious Home.com, LLC 10-14351 8/13/10
West Weck, LLC 10-14350 8/13/10
Assets: $1,000,001 to $10,000,000
Debts: $1,000,001 to $10,000,000
West Corp.'s List of 41 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
True Value Company Trade $722,102
P.O. Box 3316
Boston, MA 02241-3316
Lincoln Metrocenter Rent/RE Tax $270,161
Partners LP
1995 Broadway, 3rd Flr
New York, NY 10023
John Matouk & Co. Inc. Trade $165,883
11 East 26th Street
New York, NY 10010
Fraydun Realty Co. Rent/RE Tax $143,096
Habidecor & Abyss. Trade $136,173
Satco Products Inc. Trade $134,973
Rockrose Development Rent/RE Tax $133,675
Corp.
Yves Delorme Trade $132,350
Scandia Down LLC Trade $92,860
The New York Times Expense $90,585
Visual Comfort & Co. Trade $90,330
Miele Appliances Inc. Trade $88,326
Sferra Bros Ltd. Trade $86,264
American Express Co. Credit Card $84,505
Vornado Air Circulation Trade $76,950
H. George Caspari Co. Trade $74,999
Holtkoetter Int'l Inc. Trade $74,621
Oxford Insurance Benefits $66,224
Continental Superbag LLC Trade $65,703
Bradford Swett Rent/RE Tax $62,139
Management LLC
Antica Farmaista Trade $60,610
W7770 RA
Townsend House Corp. Rent/RE Tax $56,000
Diptyque Trade $53,138
Baldwin Hardware Trade $50,409
Schonbek Worlwide Trade $49,245
Lighting Inc.
Blueair Inc. Trade $48,999
Tizo Design Inc. Trade $45,569
Tentina Trade $44,771
Bonafide Estates, Inc. Rent/RE Tax $43,850
Benjamin Moore & Co. Trade $43,467
Samuel Heath & Sons PLC Trade $42,721
Bellino Inc. Trade $42,248
H. Schultz & Sons Trade $41,050
Omnia Industries Inc. Trade $40,759
Rohl Corporation Trade $40,348
TRG Group Trade $39,763
179 E 70th Street Corp. Rent/RE Tax $39,705
Tumi Inc. Trade $38,013
Hansgrohe, Inc. Trade $37,970
Toto USA Ltd. Trade $37,113
Con Edison Utility $36,135
A list of West Weck, LLC's 41 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nysb10-14350.pdf
WESTERN REFINING: Bank Debt Trades at 6% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Western Refining
Inc. is a borrower traded in the secondary market at 94.25 cents-
on-the-dollar during the week ended Friday, August 20, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 0.50
percentage points from the previous week, The Journal relates.
The Company pays 600 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 31, 2014, and carries
Moody's B3 rating and Standard & Poor's B rating. The loan is one
of the biggest gainers and losers among 209 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
About Western Refining
Western Refining, Inc., headquartered in El Paso, Texas, is an
independent refining and marketing company. Western owns and
operates a 128,000-barrel per day low complexity light sweet
refinery at El Paso, Texas, a medium sized relatively complex
coking refinery at Yorktown, Virginia, and two very small light
sweet crude oil refineries in the Four Corners region of New
Mexico.
As reported by the Troubled Company Reporter on August 11, 2010,
Standard & Poor's Ratings Services revised its outlook on refiner
Western Refining Inc. to stable from negative. S&P affirmed the
'B' corporate credit rating. At the same time, S&P placed
Western's 'B' senior secured issue-level rating on CreditWatch
with negative implications.
"The outlook revision reflects S&P's belief that conditions have
improved somewhat from apparent trough levels reached in late 2009
and early 2010 in Western's core southwest refineries [El Paso and
Gallup]," said Standard & Poor's credit analyst Marc Bromberg.
Industry indicators, such as the light-heavy differential and
gasoline and diesel margins, have rebounded moderately and demand
in key Southwest markets (i.e., Phoenix) has picked up over the
last several months. Nevertheless, S&P views the poor refining
environment as long-lasting, perhaps as long as several years, due
to overcapacity in the refining sector, leading to low utilization
rates and weak margins relative to historical levels. Given
Western's currently high leverage and the challenges the sector
faces, S&P remains concerned about Western's high fixed spending
requirements, which will total roughly $250 million ($100 million
in capital spending and about $150 million in interest) in 2010.
WORLDGATE COMMS: To Discuss Financial Results on August 24
----------------------------------------------------------
WorldGate Communications Inc. has scheduled a conference call on
Tuesday, August 24, 2010 at 4:30 p.m. Eastern Time. Management
will discuss the financial results for the quarter ended June 30,
2010 and will provide an overview of the business.
The conference call telephone number is 913-905-3216, 913-905-
3216. A replay of the conference call will be available for one
week after the call on the company's Web site at www.wgate.com
About Worldgate Communications
Trevose, Pa.-based Worldgate Communications, Inc., is a provider
of digital voice and video phone services and next generation
video phones. The Company designs and develops digital video
phones featuring real-time, two-way video. It also provides a
turn-key digital voice and video communication services platform
supplying complete back-end support services.
Worldgate Communications reported a net loss of $2.96 million on
$124,000 of net revenues for the three months ended June 30, 2010,
compared with $4.34 million on $143,000 of net revenues for the
same period a year earlier.
The Company's balance sheet at June 30, 2010, showed
$14.31 million in total assets, $17.92 in million total
liabilities, and a $3.61 million stockholders' deficit.
WYLE SERVICES: Moody's Downgrades Corporate Family Rating to 'B3'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family and
probability of default ratings of Wyle Services Corporation to B3
from B2. The downgrade follows weaker credit metrics expected to
follow the $235 million CAS, Inc. acquisition, which Wyle plans
to fund largely through an incremental ($205 million) first lien
credit facility term loan. Beyond the incremental term loan,
Wyle plans to increase the facility's revolver commitment to
$35 million from $25 million and to adjust the scheduled financial
ratio covenant compliance tests. To accomplish the acquisition
financing, the amendment also seeks a waiver of existing terms
that limit incremental term loan size. The rating outlook is
stable. This concludes the review for possible downgrade opened
on August 9, 2010.
The rating review has concluded:
* Corporate family and probability of default to B3 from B2
* $25 million first lien revolver due 2015, to B1, LGD 2, 26% from
Ba2, LGD 2, 19% (expected increase to $35 million at amendment
close)
* $95 million first lien term loan due 2016, to B1, LGD 2, 26%
from Ba2, LGD 2, 19% (expected increase to $300 million at
amendment close)
* $175 million 10.5% subordinated notes due 2018, to Caa2, LGD 5,
89% from B3, LGD 5, 77%
Ratings Rationale
The corporate family rating downgrade to B3 reflects expected
impact on credit metrics from the mostly debt funded CAS
acquisition. The company's rating was raised to B2 from B3 in
March 2010 with expectation that credit metrics would perform into
the B2 rating band from sustained revenue and earnings growth.
The upgrade did not contemplate a debt funded acquisition of this
magnitude. On a Moody's adjusted basis, Moody's now expect Wyle's
leverage, interest coverage and return on asset measures to be
more reflective of the B3 bandwidth over the rating horizon.
Expected softer credit metrics more than offset the benefits of
scale and revenue diversification that Moody's believe would
follow the acquisition (CAS' exposure to the U.S. Army is much
greater than is Wyle's). While Moody's recognize the U.S.
Department of Defense's increased preference for contractors that
do not face organizational conflicts of interests issues could
improve Wyle's revenue growth trajectory from recent levels, the
DoD's emphasis on controlling its contractor spending also adds
complexities.
The stable rating outlook reflects an adequate liquidity profile
and reasonable cash flow potential relative to a high debt load.
As a service business with low capital spending requirements,
Moody's anticipate free cash flow to debt in the low-to-mid single
digit percentage range which should help the company gradually
reduce debt.
As a result of the lower corporate family rating and capital
structure changes that would follow the increased senior secured
credit facility, both the senior secured and subordinated debt
ratings have been downgraded. The downgrades reflect poorer
recovery prospects for each class in a stress scenario, pursuant
to Moody's Loss Given Default Methodology.
The ratings would be upgraded if Moody's expect the company would
achieve and sustain debt to EBITDA (Moody's adjusted basis) closer
to 5.0 times with an adequate liquidity profile. The ratings
would be downgraded if debt to EBITDA rises to the mid-7.0 times
level or if liquidity profile adequacy comes into question.
Wyle Inc. is a provider of engineering and information technology
services to the federal government. The company generated 2009
revenue of approximately $760 million.
WYLE SERVICES: S&P Affirms 'B+' Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B+'
corporate credit rating on El Segundo, Calif.-based Wyle Services
Corp., a provider of contracting services to U.S. federal
government agencies. S&P also removed the ratings from
CreditWatch with negative implications, where they were placed on
Aug. 11, 2010. The outlook is negative.
At the same time, Standard & Poor's affirmed its 'BB' bank loan
ratings (two notches higher than the corporate credit rating on
Wyle) to the company's first-lien credit facilities. Wyle is in
the process of amending its existing $90 million term loan due
2016, increasing the total amount to $300 million and also
increasing the amount of its revolving credit facility due 2015 to
$35 million from $25 million. The '1' recovery rating on the debt
remains unchanged, indicating the expectation for very high (90%-
100%) recovery in the event of a payment default.
As a result of the increase in the amount of secured debt, S&P
revised the recovery rating on the company's $175 million senior
subordinated notes due 2018, to '6' from '4', indicating
expectations for negligible (0%-10%) recovery in the event of
default. As a result of the change in the recovery rating, S&P
lowered the rating on the notes to 'B-', two notches lower than
the corporate credit rating, from 'B+'.
Wyle will use the incremental debt, along with cash on hand and
approximately $20 million of equity from its controlling
shareholder, to fund its acquisition of CAS Inc., a Huntsville,
Ala.-based provider of systems engineering and technical
assistance services primarily to the U.S. Department of Defense.
CAS is a division of ITT Corp.
"The ratings reflect modest profitability inherent in the
government services business, budget reliance on key U.S. federal
government agencies, limited flexibility to pursue additional
debt-financed acquisitions, and a leveraged financial profile,"
said Standard & Poor's credit analyst Jennifer Pepper. Solid
positions in the niche government services market and predictable
revenue streams based on a contractual backlog of business, as
well as a more diversified customer base as a result of the CAS
acquisition, partially offset these factors.
YRC WORLDWIDE: Completes Initial Closing for Logistics Sale
-----------------------------------------------------------
YRC Worldwide Inc. completed the initial closing on the sale of a
portion of YRC Logistics. The gross proceeds for the transaction
were approximately $38.7 million of which YRC Worldwide received
$33.6 million at the initial closing with an additional $2.3
million placed in escrow for further closings of foreign entities
over the coming months, and $2.8 million was placed in escrow for
indemnification purposes.
All of the multiemployer pension funds who are parties to the
company's pension contribution deferral agreement agreed to amend
the CDA. The CDA amendment provides for certain terms in the
company's most recent amendment to its credit agreement to be
effective, including the retention of 100% of the proceeds from
the sale of YRC Logistics.
YRC Worldwide will retain all of its China-based operations.
The company will continue to offer its customers complimentary
logistics solutions through its strategic relationship with Austin
Ventures, which is created by a comprehensive commercial services
agreement between the parties.
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 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, $37,000 noncurrent liabilities, and
a $77.2 million stockholders' deficit.
* * *
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 si gnificant
declines in operations, cash flows, and liquidity.
* Bankruptcy Claims Trading Hits $12.7 Billion in July
------------------------------------------------------
American Bankruptcy Institute reports that the value of traded
bankruptcy claims shot to a record $12.7 billion in July due to a
handful of Lehman Brothers Inc. claims, while the number of trades
dipped for a fourth straight month.
* BOND PRICING -- For the Week From August 16 to 20, 2010
---------------------------------------------------------
Company Coupon Maturity Bid Price
------- ------ -------- ---------
155 E TROPICANA 8.750% 4/1/2012 5.500
ABITIBI-CONS FIN 7.875% 8/1/2009 10.750
ADVANTA CAP TR 8.990% 12/17/2026 14.750
AHERN RENTALS 9.250% 8/15/2013 40.600
AMBAC INC 9.375% 8/1/2011 41.060
AMBASSADORS INTL 3.750% 4/15/2027 50.000
AT HOME CORP 0.525% 12/28/2018 0.504
BANK NEW ENGLAND 8.750% 4/1/1999 12.813
BANK NEW ENGLAND 9.875% 9/15/1999 10.000
BANKUNITED FINL 6.370% 5/17/2012 5.250
BLOCKBUSTER INC 9.000% 9/1/2012 4.125
BOWATER INC 6.500% 6/15/2013 23.000
BOWATER INC 9.500% 10/15/2012 30.000
CAPMARK FINL GRP 5.875% 5/10/2012 32.000
CCK-CALL08/10 7.625% 11/15/2013 103.500
CELL THERAPEUTIC 7.500% 4/30/2011 80.600
CHENIERE ENERGY 2.250% 8/1/2012 43.250
EDDIE BAUER HLDG 5.250% 4/1/2014 5.000
EVERGREEN SOLAR 4.000% 7/15/2013 26.250
FAIRPOINT COMMUN 13.125% 4/2/2018 8.813
GASCO ENERGY INC 5.500% 10/5/2011 59.750
GENERAL MOTORS 7.125% 7/15/2013 31.000
GENERAL MOTORS 7.700% 4/15/2016 31.500
GENERAL MOTORS 9.450% 11/1/2011 30.000
GREAT ATLA & PAC 5.125% 6/15/2011 72.150
GREAT ATLA & PAC 6.750% 12/15/2012 53.000
HAWAIIAN TELCOM 9.750% 5/1/2013 1.875
INN OF THE MOUNT 12.000% 11/15/2010 49.000
INTL LEASE FIN 4.350% 9/15/2010 98.000
JBLU-CALL08/10 3.750% 3/15/2035 96.000
KEYSTONE AUTO OP 9.750% 11/1/2013 38.500
LEHMAN BROS HLDG 0.250% 2/16/2012 18.500
LEHMAN BROS HLDG 4.500% 8/3/2011 18.760
LEHMAN BROS HLDG 4.700% 3/6/2013 19.750
LEHMAN BROS HLDG 4.800% 2/27/2013 19.600
LEHMAN BROS HLDG 4.800% 3/13/2014 15.000
LEHMAN BROS HLDG 5.000% 1/22/2013 18.550
LEHMAN BROS HLDG 5.000% 2/11/2013 19.600
LEHMAN BROS HLDG 5.000% 3/27/2013 18.670
LEHMAN BROS HLDG 5.000% 8/3/2014 19.500
LEHMAN BROS HLDG 5.000% 8/5/2015 19.600
LEHMAN BROS HLDG 5.100% 1/28/2013 18.760
LEHMAN BROS HLDG 5.150% 2/4/2015 18.760
LEHMAN BROS HLDG 5.250% 2/6/2012 20.000
LEHMAN BROS HLDG 5.250% 1/30/2014 18.950
LEHMAN BROS HLDG 5.250% 2/11/2015 17.875
LEHMAN BROS HLDG 5.500% 4/4/2016 19.500
LEHMAN BROS HLDG 5.600% 1/22/2018 19.600
LEHMAN BROS HLDG 5.625% 1/24/2013 22.000
LEHMAN BROS HLDG 5.700% 1/28/2018 19.700
LEHMAN BROS HLDG 5.750% 4/25/2011 21.000
LEHMAN BROS HLDG 5.750% 7/18/2011 19.625
LEHMAN BROS HLDG 5.750% 5/17/2013 20.200
LEHMAN BROS HLDG 5.875% 11/15/2017 21.125
LEHMAN BROS HLDG 6.000% 7/19/2012 21.250
LEHMAN BROS HLDG 6.000% 6/26/2015 16.600
LEHMAN BROS HLDG 6.000% 12/18/2015 18.120
LEHMAN BROS HLDG 6.000% 2/12/2018 18.250
LEHMAN BROS HLDG 6.200% 9/26/2014 20.690
LEHMAN BROS HLDG 6.625% 1/18/2012 19.500
LEHMAN BROS HLDG 6.750% 11/22/2027 15.900
LEHMAN BROS HLDG 6.875% 5/2/2018 22.250
LEHMAN BROS HLDG 7.000% 4/16/2019 18.250
LEHMAN BROS HLDG 7.100% 3/25/2038 17.900
LEHMAN BROS HLDG 7.500% 5/11/2038 0.010
LEHMAN BROS HLDG 7.875% 11/1/2009 19.000
LEHMAN BROS HLDG 7.875% 8/15/2010 20.131
LEHMAN BROS HLDG 8.000% 3/5/2022 19.375
LEHMAN BROS HLDG 8.000% 3/17/2023 19.500
LEHMAN BROS HLDG 8.050% 1/15/2019 18.000
LEHMAN BROS HLDG 8.500% 8/1/2015 18.170
LEHMAN BROS HLDG 8.500% 6/15/2022 18.550
LEHMAN BROS HLDG 8.750% 12/21/2021 18.500
LEHMAN BROS HLDG 8.800% 3/1/2015 20.375
LEHMAN BROS HLDG 8.920% 2/16/2017 18.600
LEHMAN BROS HLDG 9.000% 3/7/2023 19.000
LEHMAN BROS HLDG 9.500% 12/28/2022 18.950
LEHMAN BROS HLDG 9.500% 1/30/2023 19.375
LEHMAN BROS HLDG 9.500% 2/27/2023 17.510
LEHMAN BROS HLDG 10.000% 3/13/2023 18.950
LEHMAN BROS HLDG 10.375% 5/24/2024 19.000
LEHMAN BROS HLDG 11.000% 6/22/2022 17.760
LEHMAN BROS HLDG 11.000% 3/17/2028 18.500
LEHMAN BROS HLDG 11.500% 9/26/2022 18.750
LEHMAN BROS HLDG 18.000% 7/14/2023 18.735
LOCAL INSIGHT 11.000% 12/1/2017 30.750
MAGNA ENTERTAINM 7.250% 12/15/2009 9.000
MAGNA ENTERTAINM 8.550% 6/15/2010 17.000
MASSEY ENERGY CO 2.250% 4/1/2024 82.000
MERRILL LYNCH 3.030% 3/9/2011 100.000
MFCCN-CALL09/10 5.200% 9/15/2030 97.202
NEWPAGE CORP 10.000% 5/1/2012 35.750
NEWPAGE CORP 12.000% 5/1/2013 25.000
NORTH ATL TRADNG 9.250% 3/1/2012 56.100
PALM HARBOR 3.250% 5/15/2024 70.386
RASER TECH INC 8.000% 4/1/2013 36.688
RESTAURANT CO 10.000% 10/1/2013 30.500
RESTAURANT CO 10.000% 10/1/2013 30.050
SPHERIS INC 11.000% 12/15/2012 24.750
THORNBURG MTG 8.000% 5/15/2013 4.030
TIMES MIRROR CO 7.250% 3/1/2013 43.500
TOREADOR RESOURC 5.000% 10/1/2025 96.200
TOUSA INC 7.500% 1/15/2015 0.500
TOUSA INC 10.375% 7/1/2012 2.500
TRICO MARINE 3.000% 1/15/2027 7.000
TRICO MARINE SER 8.125% 2/1/2013 16.250
VIRGIN RIVER CAS 9.000% 1/15/2012 45.500
WASH MUT BANK FA 5.125% 1/15/2015 0.200
WASH MUT BANK FA 5.650% 8/15/2014 0.200
WASH MUT BANK NV 5.500% 1/15/2013 0.200
WASH MUT BANK NV 6.750% 5/20/2036 0.650
WCI COMMUNITIES 9.125% 5/1/2012 2.250
*********
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
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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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