/raid1/www/Hosts/bankrupt/TCR_Public/110806.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, August 6, 2011, Vol. 15, No. 216
Headlines
BORDERS GROUP: Has $1,500,000 Net Loss in June
CATHOLIC CHURCH: Milw. Has $2,917,795 in Cash Receipts in June
CONSOLIDATED HORTICULTURE: Hines Nurseries Has $1.19 Million Cash
IMPERIAL CAPITAL: Posts $181,236 Net Loss in June 2011
INTERNATIONAL GARDEN: Reports $6.l Million Net Income in May 2011
LEHMAN BROTHERS: Files March Balance Sheet
LEHMAN BROTHERS: Hikes Cash in June By $912MM to $24.4BB
LTV CORP: Ends June 2011 With $4.7 Million Cash
PEGASUS RURAL: Posts $1.2 Million Net Loss From June 10 to June 30
PERKINS & MARIE: Restaurants Run $6.15 Million Month Net Loss
POINT BLANK: Has $1.16 Million June Operating Income
PROFILE TECHNOLOGIES: Ends June 2011 With $23,073 Cash
RQB RESORT: Sawgrass Marriott's EBITDA in June is $371,000
SBARRO INC: Posts $2.83 Million Net Loss From May 30 to July 3
SEAHAWK DRILLING: Posts $18.58 Million Net Loss in June 2011
SOUTHWEST GEORGIA: Ethanol Loses $2.34 Million in June
TOWNSENDS INC: Posts $523,000 Net Loss in 4-Weeks Ended May31
TOWNSENDS INC: Ends June 2011 With $16.69 Million Cash
TROPICANA ENT: Adamar of NJ Has $31,000 June Net Loss
WASHINGTON MUTUAL: Ends June With $4.502 Billion in Cash
*********
BORDERS GROUP: Has $1,500,000 Net Loss in June
----------------------------------------------
Borders Group, Inc.
Balance Sheet
As of June 25, 2011
ASSETS
Current assets:
Cash and cash equivalents $19,400,000
Merchandise inventories 431,700,000
Accounts receivable and other current assets 61,200,000
---------------
Total current assets 512,300,000
Property and equipment, net of accumulated
depreciation 160,400,000
Other assets 23,800,000
---------------
TOTAL ASSETS $696,500,000
===============
LIABILITIES
Current liabilities:
Short term debt-credit facility $146,700,000
Capital lease liability 1,100,000
Trade accounts payable 10,100,000
Accrued payroll and other liabilities 144,100,000
Taxes, including income taxes 26,500,000
---------------
Total current liabilities 328,500,000
Long-term debt 1,000,000
Other long-term liabilities 135,700,000
Liabilities subject to compromise 606,300,000
---------------
Total liabilities 1,071,500,000
Stockholders' equity:
Common stock 189,000,000
Retained deficit (564,000,000)
---------------
Total stockholders' equity (375,000,000)
---------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $696,500,000
===============
Borders Group, Inc.
Statement of Operations
For the Period May 29, 2011 to June 25, 2011
Sales $86,600,000
Other revenue 3,500,000
---------------
Total revenue 90,100,000
Cost of merchandise sold (includes occupancy) 76,100,000
---------------
Gross margin 14,100,000
Selling, general and administrative expenses 30,800,000
---------------
Operating income (loss) (16,800,000)
Interest expense (income) 3,800,000
---------------
Income (loss) from continuing operations before
reorganization items and income taxes (20,600,000)
Reorganization items, net (19,000,000)
---------------
Income (loss) from continuing operations before
income taxes (1,600,000)
Income tax provision (benefit) (100,000)
---------------
NET INCOME (LOSS) ($1,500,000)
===============
Borders Group, Inc.
Schedule of Cash Receipts and Disbursements
For the period May 29, 2011 to June 25, 2011
Cash Receipts
Combined Debtors $192,989,000
---------------
Total Cash Receipts $192,989,000
===============
Cash Disbursements:
Borders Group, Inc. ($5,187,000)
Borders, Inc. (181,620,000)
Borders International Services, Inc. -
Borders Direct, LLC (6,325,000)
Borders Properties, Inc. (15,000)
Borders Online, Inc. -
Borders Online, LLC -
BGP (UK) Limited -
---------------
Total Cash Disbursements ($193,147,000)
===============
Borders also made payments, totaling $3,294,000, for its DIP Loans
and Leases for the period from May 29, 2011, to June 25, 2011.
A full-text copy of Borders' June 2011 Monthly Operating Report is
available for free at:
http://bankrupt.com/misc/Borders_June2011MOR.pdf
About Borders Group
Borders Group operates book, music and movie superstores and mall-
based bookstores. At Jan. 29, 2011, the Debtors operated 642
stores, under the Borders, Waldenbooks, Borders Express and
Borders Outlet names, as well as Borders-branded airport stores in
the United States, of which 639 stores are located in the United
States and 3 in Puerto Rico. In addition, the Debtors operate a
proprietary e-commerce Web site, http://www.Borders.com/,
launched in May 2008, which includes both in-store and online e-
commerce components. As of Feb. 11, 2011, Borders employed total
of 6,100 full-time employees, 11,400 part-time employees, and
approximately 600 contingent employees.
Borders Group Inc. and its affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in
Manhattan on Feb. 16, 2011.
David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn,
Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres &
Friedman LLP, in New York, serve as counsel to the Debtors.
Jefferies & Company's Inc. is the financial advisor. DJM Property
Management is the lease and real estate services provider. AP
Services LLC is the interim management and restructuring services
provider. The Garden City Group, Inc., is the claims and notice
agent.
Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein
LLP, serve as counsel to the DIP Agents.
Lowenstein Sandler represents the official unsecured creditors
committee for Borders Group. Bruce S. Nathan and Bruce Buechler,
members of Lowenstein Sandlers' Bankruptcy, Financial
Reorganization & Creditors' Rights Group, are leading the team.
The Debtor disclosed US$1.28 billion in assets and US$1.29 billion
in liabilities as of Dec. 25, 2010
Borders Group has sought approval to sell merchandise and owned
furniture, fixtures and equipment located at approximately 200 of
their stores and, at Borders' option, up to 75 of 136 potential
other stores, through store closing sales.
Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by Borders Group Inc., the United States' second
largest bookstore chain. (http://bankrupt.com/newsstand/or
215/945-7000)
CATHOLIC CHURCH: Milw. Has $2,917,795 in Cash Receipts in June
--------------------------------------------------------------
Archdiocese of Milwaukee
Statement of Financial Position
As of June 30, 2011
Current Assets
Cash and cash equivalents $8,811,991.92
Short-term investments 2,213,657.07
Accounts receivables 3,080,689.89
Notes receivable 813,392.32
Other Assets 656,512.24
Prepaid Expenses 710,000.00
--------------
Total Current Assets 16,286,243.49
Ground burial & mausoleum crypt sites 5,980,412.04
Property and equipment, net 4,735,464.88
Investments and Other Assets
Long-term investments 13,003,282.57
Cemeteries Pre-Need Trust Fund Acct 3,267,233.37
Charitable gift annuities invest. 703,315.62
Other Assets 315,470.50
--------------
Total Investments and Other Assets 17,289,302.06
--------------
TOTAL ASSETS $44,291,422.47
==============
Current Liabilities
Current maturities of charitable
gift annuities -
Accounts payable 217,519.58
Accrued expenses 1,554,607.54
Chapter 11 expenses 698,907.54
Contributions payable C.S.A. 2,657,224.00
--------------
Total Current Liabilities 5,128,258.66
Deferred revenue 3,314,832.81
Prepetition Debt
Accrued post-retirement and
pension benefits 14,862,955.00
Contractual contributions payable 2,745,769.51
Pre-Chapter 11 payables 517,747.76
Note payable 4,650,000.00
Charitable gift annuities 580,768.00
--------------
Total Liabilities 31,800,331.74
Unclassified - Prepetition Operations 500,858.94
Unclassified - postpetition Operations (2,387,575.84)
Unrestricted - Current Year -
Unrestricted - Prior Year 1,566,138.90
--------------
Total Undesignated operating (deficit) 1,566,138.90
Designated Current Year -
Designated Prior Year 6,480,976.51
--------------
Total Designated 6,480,976.51
--------------
Total Unrestricted 8,047,115.41
Temporarily restricted Current Year -
Temporarily restricted Prior Year 2,614,326.17
--------------
Total Temporarily Restricted 2,614,326.17
Permanently restricted Current Year -
Permanently restricted Prior Year 3,716,366.05
--------------
Total Permanently Restricted 3,716,366.05
--------------
Total Net Assets 12,491,090.73
--------------
Total Liabilities and Net Assets $44,291,422.47
==============
Note: Invested funds held for others totaled $2,744,308.28
Archdiocese of Milwaukee
Statements of Activities
As of June 30, 2011
CHANCERY
Support and Revenue
Contributions $832,559.25
Parish assessments -
Parish assessments adj. to budget -
Tuition and fees 44,433.75
Activities and programs 438.90
Miscellaneous revenues 70,184.60
Net assets released from restrictions -
--------------
Total Support and Revenue 947,616.50
CHANCERY OPERATING EXPENSES
Payroll and fringe benefits 573,583.42
Maintenance, insurance, utility costs 92,314.34
Travel and education 54,543.71
Supplies and services 48,066.82
Assessments -
Purchased services 146,650.49
Professional services 589,004.23
Charity and donations 293,918.09
Miscellaneous expenses 74,240.54
Pension related changes other than NPPC -
--------------
Total Operating Expenses 1,872,321.64
Chancery income before fixed assets, --------------
non-operations gain (loss), and (924,705.14)
extraordinary expense
FIXED ASSETS
Fixed asset purchases -
Depreciation expense (17,880.63)
Impairment of leasehold improvements -
Gain(loss) on sale of property and
equipment, net -
--------------
Total Fixed Asset Expense (Income) (17,880.63)
NON-OPERATING ACTIVITIES
Investment income 62,016.90
Net realized gains(losses) 32,924.50
Net unrealized gains(losses) (92,909.18)
Interest expense (30,064.87)
Other non-operating revenues(expenses) -
--------------
Total non-operating activities (28,032.65)
--------------
Extraordinary events, net 0.00
--------------
Chancery net gain(loss) (970,618.42)
Reimbursed operations net gain(loss) 20,036.35
--------------
Change in net assets before cumulative (950,582.07)
effect and cemetery operations
Cumulative effect of change in 0.00
accounting principle
--------------
Chancery change in net assets (950,582.07)
Cemetery operations
Cemetery gain(loss) 343,859.80
--------------
Cemetery change in net assets 343,859.80
--------------
Total change in net assets ($606,722.27)
==============
Archdiocese of Milwaukee
Cash Receipts
For the month ending June 30, 2011
Receipt Category
Contributions $802,322.61
Assessments -
Tuition and fees 75,411.90
Cemetery cash receipts/transfers 561,310.09
Investment income 0.17
Realized gains -
Gains on sales and fixed assets -
Miscellaneous revenues 635,447.96
Clearing 76,134.96
A/R & N/R payments 767,167.93
--------------
Total Receipts $2,917,795.62
Notes: Funds transferred in from other
Archdiocesan accounts $8,299,402.23
Funds held for others -
==============
Archdiocese of Milwaukee
Cash Disbursements
For the month ending June 30, 2011
Disbursements Category
Salary and wages $525,540.09
Payroll taxes 187,870.24
Employee benefits 216,679.95
Employee withholdings 42,379.80
Facility and operating 252,487.85
Travel and education 52,437.61
Supplies 53,276.35
Assessments -
Purchased services 313,815.76
Legal/Professional 396,106.70
Grants 279,479.29
Interest and bank fees 23,985.82
Other 108,875.76
Reimbursed expense 96,447.62
Clearing 47,334.30
Fee assistance -
--------------
Total Disbursements $2,596,717.14
Notes: Funds transferred in from other
Archdiocesan accounts $7,024,402.23
Funds held for others $115,508.76
==============
About The Diocese of Milwaukee
The Diocese of Milwaukee was established on Nov. 28, 1843, and
was elevated to an Archdiocese on Feb. 12, 1875, by Pope Pius
IX. The region served by the Archdiocese consists of 4,758 square
miles in southeast Wisconsin which includes counties Dodge, Fond
du Lac, Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth,
Washington and Waukesha. There are 657,519 registered Catholics
in the Region.
The Catholic Archdiocese of Milwaukee, in Wisconsin, filed for
Chapter 11 bankruptcy protection (Bankr. E.D. Wisc. Case No.
11-20059) on Jan. 4, 2011, to address claims over sexual abuse
by priests on minors.
The Archdiocese became at least the eighth Roman Catholic diocese
in the U.S. to file for bankruptcy to settle claims from current
and former parishioners who say they were sexually molested by
priests.
Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in
Milwaukee, Wisconsin, serves as the Archdiocese's counsel. The
Official Committee of Unsecured Creditors in the bankruptcy case
has retained Pachulski Stang Ziehl & Jones LLP as its counsel, and
Howard, Solochek & Weber, S.C., as its local counsel.
The Archdiocese estimated assets and debts of $10 million to
$50 million in its Chapter 11 petition.
(Catholic Church Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
CONSOLIDATED HORTICULTURE: Hines Nurseries Has $1.19 Million Cash
-----------------------------------------------------------------
Post-Sale Co II, LLC, formerly known as Consolidated Horticulture
LLC, filed on July 7, 2011, a monthly operating report for Hines
Nurseries LLC, now known as Post-Sale Co III, LLC (Case No. 10-
13310) for the filing period May 9, 2011, to June 5, 2011.
Consolidated Horticulture Group LLC (Case No. 10-13308) and New
Hines Parent Company LLC (Case No. 10-13309) have no ongoing
operations.
Hines Growers LLC, the NewCo entity, purchased all of Hines
Nurseries LLC assets and assumed all of the outstanding post-
petition liabilities via a 363 asset sale purchase agreement. The
transaction closed on April 4, 2011. As part of the transaction,
NewCo purchased all of the Debtor's bank accounts with the
exception of Bank of America Deposit Account No. 7232, which will
remain with the Debtors to facilitate a wind down of the estate.
As part of the purchase price, Hines Growers LLC paid Hines
Nurseries LLC $2,050,233 in cash consideration to cover
outstanding post-petition professional fees and up to $250,000 of
post-closing costs.
The Company had no income or expense transactions during the
period.
The Debtor ended the period with $1,190,000 cash, compared with
$2,050,000 at the beginning of the period. During the period, the
Debtor paid a total of $827,117 in professional fees.
A copy of the monthly operating report is available at:
http://bankrupt.com/misc/hinesnurseries.may9-june5mor.pdf
About Consolidated Horticulture
Irvine, California-based Consolidated Horticulture
Group LLC, doing business as Hines Nurseries LLC --
http://www.hineshorticulture.com/-- operates nursery facilities
located in Arizona, California, Oregon and Texas. Through its
affiliate, the company produces and distributes horticultural
products.
Black Diamond Capital Management LLC purchased Hines Nurseries
Inc. in a bankruptcy sale in January 2009. The resulting
reorganization plan, confirmed in January 2009, paid secured
creditors in full on their $35.9 million in claims while providing
as much as $12 million toward debt owing to suppliers both before
and after the bankruptcy filing. The business bought by Black
Diamond was renamed to Consolidated Horticulture.
Consolidated Horticulture and its affiliates filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 10-13308) on Oct. 12,
2010. Laura Davis Jones, Esq. and Timothy P. Cairns, Esq. at
Pachulski Stang Ziehl & Jones LLP, serve as Delaware counsel to
the Debtors. Attorneys at Jones, Walker, Waechter, Poitevent,
Carrere & Denegre, L.L.P., serve as bankruptcy counsel. Epiq
Bankruptcy Solutions LLC is the claims agent. The Official
Committee of Unsecured Creditors has tapped Lowenstein Sandler PC
as counsel and Blank Rome LLP as co-counsel. Consolidated
Horticulture estimated $100 million to $500 million in assets and
$50 million to $100 million in debts in the Chapter 11 petition.
On July 18, 2011, the Bankruptcy Court approved the motion of
Post-Sale Co II, LLC, for the dismissal of the Debtors' Chapter 11
cases.
IMPERIAL CAPITAL: Posts $181,236 Net Loss in June 2011
------------------------------------------------------
On July 20, 2011, Imperial Capital Bancorp, Inc., filed its
unaudited monthly operating report for the month of June 2011 with
the Office of the United States Trustee as required by the OUST
Guidelines.
The Company reported a net loss of $181,236 on $0 revenue for
June 2011.
At June 30, 2011, the Company had $40.0 million in total assets,
$99.3 million in total liabilities, and a stockholders' deficit of
$59.3 million.
A copy of operating report is available at http://is.gd/FvX7kI
About Imperial Capital Bancorp
La Jolla, California-based Imperial Capital Bancorp, Inc., filed
for Chapter 11 bankruptcy protection (Bankr. S.D. Calif. Case No.
09-19431) on Dec. 18, 2009. Gregory K. Jones, Esq., at Stutman,
Treister & Glatt, P.C., serves as the Company's bankruptcy
counsel. FTI Consulting Inc. serves as its financial advisor.
The Company disclosed $40,439,363 in assets and $98,721,610 in
liabilities.
Tiffany L. Carroll, the U.S. Trustee for Region 15, appointed
three members to the official committee of unsecured creditors in
the Debtor's case.
The Debtor's proposed Liquidating Plan of Reorganization provides
that based upon assets available for distribution, creditors of
the Company will not be paid in full under the Plan. The Company
predicts that, after payment to the Company's unsecured creditors,
there will be no assets available for distribution to the holders
of the Company's common stock.
INTERNATIONAL GARDEN: Reports $6.l Million Net Income in May 2011
-----------------------------------------------------------------
International Garden Products, Inc., et al., reported net income
of $6.1 million on $3.2 million of total sales for May 2011. The
Debtor recorded an operating loss of $1.2 million for the period.
At May 31, 2011, the Debtors had total assets of $43.8 million,
total liabilities of $48.1 million, and a stockholders' deficit of
$4.3 million.
A copy of the May 2011 monthly operating report is available at:
http://bankrupt.com/misc/int'lgarden.may2011mor.pdf
About International Garden
International Garden Products, Inc. was incorporated in 1996 as a
holding company for Iseli Nursery, Inc., California Nursery
Supply, Weeks Wholesale Rose Grower, and Old Skagit, Inc. The
company's operating businesses, Iseli and Weeks, focus primarily
on growing horticultural products for nationwide sale to
independent garden centers, landscape suppliers, landscapers and
similar parties. Iseli's is known in the industry as the premium
source of dwarf conifers, Japanese maples and unique companion
plants. Weeks is one of the largest wholesale breeders and
growers of premium roses in the U.S.
International Garden Products, Inc., and its affiliates filed
For Chapter 11 protection (Bankr. Lead Case No. 10-13207) on
Oct. 4, 2010. International Garden estimated assets and debts at
$10 million to $50 million in its Chapter 11 petition.
Andrew R. Remming, Esq., at Morris, Nichols, Arsht & Tunnell,
serves as bankruptcy counsel. Bryan Cave LLP is the legal
counsel. FTI Consulting is the restructuring advisor. Garden
City Group is the claims and notice agent.
The debtor-affiliates are Weeks Wholesale Rose Grower (Bankr.
D. Del. Case No. 10-13208), California Nursery Supply (Case No.
10-13209), Iseli Nursery, Inc. (Case No. 10-13210), and Old
Skagit, Inc. (Case No. 10-13211).
LEHMAN BROTHERS: Files March Balance Sheet
------------------------------------------
Lehman Brothers Holdings Inc. and its affiliated debtors filed
with the Court copies of their balance sheets as of March 31,
2011. The documents showed that as of March 31, 2011, LBHI had
total assets of $151.634 billion, total liabilities of $178.253
billion and total stockholders' equity of -$26.62 billion.
Copies of the balance sheets are available without charge at
http://bankrupt.com/misc/LBHI_SuppMarch2011MOR.pdf
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009 or
more than a year after LBHI and its other affiliates filed their
bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant to
the provisions of the Securities Investor Protection Act (Case No.
08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on Sept. 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Hikes Cash in June By $912MM to $24.4BB
--------------------------------------------------------
Lehman Brothers Holdings Inc. disclosed these cash receipts and
disbursements of the company, its affiliated debtors and other
controlled entities for the month ended June 30, 2011:
Beginning Total Cash & Investments (06/01/11) $23,497,000,000
Total Sources of Cash 1,595,000,000
Total Uses of Cash (685,000,000)
FX Fluctuation (2,000,000)
---------------
Ending Total Cash & Investments (06/30/11) $24,409,000,000
LBHI reported $3.762 billion in cash and investments as of
June 1, 2011, and $3.796 billion as of June 30, 2011.
The monthly operating report also showed that a total of
$27,500,000 was paid last month to the U.S Trustee and
professionals that were retained in the Debtors' Chapter 11
cases.
From Sept.15, 2008, to June 30, 2011, a total of $1,344,592,000
was paid to the U.S. Trustee and professionals, of which
$451,148,000 was paid to the Debtors' turnaround manager,
Alvarez & Marsal LLC, while $318,933,000 was paid to their
bankruptcy counsel, Weil Gotshal & Manges LLP.
A full-text copy of the June 2011 Operating Report is available
for free at http://bankrupt.com/misc/LehmanMORJune3011.pdf
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009 or
more than a year after LBHI and its other affiliates filed their
bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant to
the provisions of the Securities Investor Protection Act (Case No.
08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on Sept. 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LTV CORP: Ends June 2011 With $4.7 Million Cash
-----------------------------------------------
On July 10, 2011, The LTV Corporation, et al., submitted to
the United States Bankruptcy Court for the Northern District of
Ohio, Eastern Division, their monthly operating report for
June 2011.
LTV ended the period with a $4,752,000 cash balance. LTV
reported $1,000 in receipts and $313,000 in disbursements in
June, including $267,000 paid to Chapter 11 professionals.
Beginning cash was $5,064,000.
A copy of the operating report is available at http://is.gd/hCbQpW
About The LTV Corporation
Headquartered in Cleveland, Ohio, The LTV Corp. operates as a
domestic integrated steel producer. The Company along with 48
subsidiaries filed for Chapter 11 protection on Dec. 29, 2000
(Bankr. N.D. Ohio, Case No. 00-43866). On Aug. 31, 2001, the
Company disclosed $4,853,100,000 in total assets and
$4,823,200,000 in total liabilities.
By order dated Feb. 28, 2002, the Court approved the sale of
substantially all of the Debtors' integrated steel assets to WLR
Acquisition Corp. n/k/a International Steel Group, Inc., for a
purchase price of roughly $80 million, plus the assumption of
certain environmental and other obligations. ISG also purchased
inventories which were located at the integrated steel facilities
for roughly $52 million. The sale of the Debtors' integrated
steel assets to ISG closed in April 2002, and a second closing
related to the purchase of the inventory occurred in May 2002.
On Dec. 31, 2002, substantially all of the assets of the Pipe
and Conduit Business, consisting of LTV Tubular Company, a
division of LTV Steel Company, Inc., and Georgia Tubing
Corporation, were sold to Maverick Tube Corporation for cash of
roughly $120 million plus the assumption of certain environmental
and other obligations. On Oct. 16, 2002, the Debtors announced
that they intended to reorganize the Copperweld Business as a
stand-alone business. The LTV Corporation no longer exercised any
control over the business or affairs of the Copperweld Business.
A separate plan of reorganization was developed for the Copperweld
Business. On Aug. 5, 2003, the Copperweld Business filed a
disclosure statement for the Joint Plan of Reorganization of
Copperweld Corporation and certain of its debtor affiliates. On
Oct. 8, 2003, the Court approved the Second Amended Disclosure
Statement. On Nov. 17, 2003, the Court confirmed the Second
Amended Joint Plan, as modified, and on Dec. 17, 2003, the Plan
became effective and the common stock was canceled. Because The
LTV Corporation received no distributions under the Second Amended
Plan, its equity in the Copperweld Business is worthless and has
been canceled.
In November 2002, the Debtors paid the DIP Lenders the remaining
balance due for outstanding loans and in December 2002, the
remaining letters of credit were canceled or cash collateralized.
Consequently, the Debtors have no remaining obligation to the DIP
Lenders. Pursuant to a February 2003 Court order, LTV Steel
continued the orderly liquidation and wind down of its businesses.
On Oct. 8, 2003, the Court entered an Order substantively
consolidating the Chapter 11 estates of LTV Steel and Georgia
Tubing Corporation for all purposes.
In November and December 2003, approximately $91.9 million was
distributed by LTV Steel to other Debtors pursuant to the
Intercompany Settlement Agreement that was approved by the Court
on Nov. 17, 2003. On Dec. 23, 2003, the Court authorized LTV
Steel and Georgia Tubing to make distributions to their
administrative creditors and, after the final distribution, to
dismiss their Chapter 11 cases and dissolve.
On March 31, 2005, the Court entered an order that among other
things: (a) approved a distribution and dismissal plan for LTV
and certain other debtors; (b) authorized The LTV Corporation
and LTV Steel to take any and all actions that are necessary or
appropriate to implement the distribution and dismissal plan;
(c) established March 31, 2005, as the record date for identifying
shareholders of LTV that are entitled to any and all shareholder
rights with respect to the distribution and dismissal plan and the
eventual dissolution of LTV; and (d) authorized The LTV
Corporation to establish and fund a reserve account for the
conduct of post-dismissal activities and the payment of post-
dismissal claims.
LTV is in the process of liquidating, and its stock is worthless.
On March 28, 2007, the Official Committee of Administrative
Claimants filed a motion with the Court requesting an order to
approve the appointment of a Chapter 11 trustee. On April 11,
2007, April 12, 2007, and May 1, 2007, certain of the Defendants
filed motions to convert the case to Chapter 7. On June 28, 2007,
the ACC filed a motion to withdraw the Chapter 11 Trustee Motion;
the Court granted the ACC's withdrawal motion on Aug. 1, 2007.
An evidentiary hearing on the Chapter 7 Trustee Motion was held in
August 2007. The Court has not yet issued its order.
PEGASUS RURAL: Posts $1.2 Million Net Loss From June 10 to June 30
------------------------------------------------------------------
Pegasus Rural Broadband, LLC, et al., reported a net loss of
$1,185,165 on $240,680 of customer revenue for the filing period
June 10, 2011, through June 30, 2011.
At June 30, 2011, the Company had $45,489,582 in total assets,
$69,219,344 in total liabilities, and a stockholders' deficit of
$23,729,762.
A copy of the monthly operating report is available at:
http://bankrupt.com/misc/pegasus.june10-June30mor.pdf
About Pegasus Rural Broadband
Pegasus Rural Broadband, LLC, and its affiliates, including
Xanadoo Holdings Inc., sought Chapter 11 protection (Bankr. D.
Del. Lead Case No. 11-11772) on June 10, 2011.
The Debtors are subsidiaries of Xanadoo Company, a 4G wireless
Internet provider. Xanadoo Co. was not among the Chapter 11
filers.
The subsidiaries sought Chapter 11 protection after they were
unable to restructure $52 million in 12.5% senior secured
promissory notes that matured in May. The notes are owing to
Beach Point Capital Management LP.
Xanadoo Holdings, through Xanadoo LLC -- XLC -- offers wireless
high-speed broadband service, including digital phone services,
under the Xanadoo brand utilizing licensed frequencies in the 2.5
GHz frequency band. As of May 31, 2011, XLC served 12,000
subscribers in Texas, Oklahoma and Illinois. In the summer of
2010, the Debtors closed all of their retail stores and kiosks in
its six operating markets and severed all fulltime sales
personnel. Since the closings, the Debtors relied one key
retailer in each market to serve as local point of presence to
market customer transactions.
Judge Peter J. Walsh presides over the case. Jonathan M.
Stemerman, Esq., Neil Raymond Lapinski, Esq., and Rafael Xavier
Zahralddin-Aravena, Esq., Shelley A. Kinsella, Esq., at Elliott
Greenleaf, in Wilmington, Delaware, serve as counsel to the
Debtor. Epiq Systems, Inc., is the claims and notice agent.
Xanadoo Holdings, Pegasus Guard Band and Xanadoo Spectrum each
estimated assets of $100 million to $500 million and debts of
$50 million to $100 million.
PERKINS & MARIE: Restaurants Run $6.15 Million Month Net Loss
-------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Perkins & Marie Callender's Inc. filed an operating
report covering the period from the beginning of the Chapter 11
case on June 13 through July 10. The Perkins stores reported a
$6.15 million net loss on total revenue of $21.11 million. The
Callender's retail operation had a $25,000 net profit on total
revenue of $6.21 million.
About Perkins & Marie Callender's
Based in Memphis, Tennessee, Perkins & Marie Callender's Inc., fka
The Restaurant Company, is the owner or franchiser of nearly 600
family-dining restaurants, the Perkins Restaurants and Marie
Callender's. Perkins & Marie and several affiliates filed for
Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11795) on
June 13, 2011. Perkins & Marie disclosed $290 million in assets
and $441 million in debt as of the Chapter 11 filing.
Judge Kevin Gross presides over the case. Robert S. Brady, Esq.,
and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt &
Taylor, LLP; and Mitchel H. Perkiel, Esq., Hollace T. Cohen, Esq.,
and Brett D. Goodman, Esq., at Troutman Sanders, LLP, serve as
bankruptcy counsel. The Debtors' financial advisors are Whitby,
Santarlasci & Company. Their claims agent is Omni Management
Group, LLC.
DIP lender Wells Fargo is represented by lawyers at Paul,
Hastings, Janofsky & Walker LLP.
Roberta A. Deangelis, U.S.s Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors in the Debtors' cases.
The company has a Chapter 11 plan on file giving stock to general
unsecured creditors and to holders of senior unsecured notes. The
plan is designed for funds managed by Wayzata Investment Partners
LLC to take control of the company when the plan is confirmed.
POINT BLANK: Has $1.16 Million June Operating Income
----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Point Blank Solutions Inc. reported $1.16 million of
operating income in June on net sales of $16.01 million. The net
loss of $483,000 resulted in part from $1.36 million of
reorganization expenses.
Mr. Rochelle relates that although the creditors' committee isn't
objecting to the $6 million settlement of a lawsuit against Toyobo
Co. Ltd., the panel is opposing immediate payment of a $1.25
million contingency fee to Point Blank's lawyers in the suit. The
committee wants the entire $6 million paid to Point Blank, with no
payment to the lawyers until the bankruptcy court approves a
formal fee request.
Zylon which was allegedly not effective in stopping bullets.
Despite being in Chapter 11 since April 2010, Point Blank doesn't
have a reorganization plan given disputes with the official equity
holders' committee.
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, as well as select international markets.
The Company maintains facilities in Pompano Beach, Florida, and
Jacksboro, Tennessee.
The Company's former chief executive officer and chief operating
officer were convicted in September 2010 of orchestrating a
$185 million fraud.
Point Blank Solutions, formerly DHB Industries, filed for
Chapter 11 protection (Bankr. D. Del. Case No. 10-11255) on
April 14, 2010. Laura Davis Jones, Esq., Alan J. Kornfeld, Esq.,
David M. Bertenthal, 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. Epiq Bankruptcy Solutions serves as
claims and notice agent.
The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Equity Security
Holders in the case. Ian Connor Bifferato, Esq., and Thomas F.
Driscoll III, Esq., at Bifferato LLC; and Carmen H. Lonstein,
Esq., Andrew P.R. McDermott, Esq., and Lawrence P. Vonckx, Esq.,
at Baker & McKenzie LLP, serve as counsel for the Official
Committee of Equity Security Holders. Robert M. Hirsh, Esq., and
George P. Angelich, Esq., at Arent Fox LLP, serve as counsel to
the Creditors Committee, and Frederick B. Rosner, Esq., and Brian
L. Arban, Esq., at the Rosner Law Group LLC, serve as co-counsel.
PROFILE TECHNOLOGIES: Ends June 2011 With $23,073 Cash
------------------------------------------------------
On July 22, 2011, Profile Technologies, Inc. filed with the U.S.
Bankruptcy Court for the Eastern District of New York its monthly
operating report for each of the following periods: (i) May 9,
2011, to May 31, 2011, and (ii) June 1, 2011, to June 30, 2011.
For the May 9 ? 31 period, the Debtor reported a net loss of
$6,879.56, on a cash basis.
At May 31, 2011, the Debtor's Statement of Assets and Liabilities
(Cash Basis) showed $78,586.36 in total assets, $1,460,812.16 in
total liabilities, and a stockholders' deficit of $1,382,225.80
The Debtor ended the period with $43,286.36 cash.
A copy of the May 2011 monthly operating report is available at:
http://is.gd/4PdRxa
For the month ended June 30, 2011, the Debtor reported a net loss
of $20,164.34 on $4,770.94 of total income, on a cash basis.
At June 30, 2011, the Debtor's Statement of Assets and Liabilities
(Cash Basis) showed $58,373.57 in total assets, $1,460,555.91 in
total liabilities, and a stockholders' deficit of $1,402,182.34
382,225.80
The Debtor ended the period with $23,073.57 cash.
A copy of the June 2011 monthly operating report is available at:
http://is.gd/Cz1IbY
About Profile Technologies
Profile Technologies, Inc. -- http://www.profiletech.net-- is
headquartered in Manhasset, N.Y. with an Operations and Research
facility in Albuquerque, N.M. It is the developer and owner of
proprietary, patented technologies that utilize electromagnetic
waves to detect and characterize corrosion and other anomalies on
cased, insulated and other pipelines.
The Company filed for Chapter 11 protection on May 9, 2011
(Bankr. E.D.N.Y., Case No. 11-73269). Judge Alan S. Trust
(Central Islip) presides over the case. Randall S.D. Jacobs,
Esq., represents the Debtor as counsel. The Debtor's balance
sheet at March 31, 2011, showed $242,675 in total assets and
$1,372,736 in total liabilities as of March 31, 2011.
RQB RESORT: Sawgrass Marriott's EBITDA in June is $371,000
----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the Sawgrass Marriott Resort in Ponte Vedra Beach,
Florida, reported a $178,000 net loss in June on total revenue of
$3.83 million. Earnings before interest, taxes, depreciation and
amortization for the month were $371,000. For this year as a
whole, the net loss was $1.259 million on total revenue of
$21.97 million, according to the operating report filed with the
bankruptcy court.
Mr. Rochelle notes that the resort's owners are on their third and
last extension of the exclusive right to propose a Chapter 11
plan. Exclusivity ends Sept. 9 and can't be extended because the
resort will have been in Chapter 11 for 18 months. The
reorganization has been beset with continual disputes between the
resort's owner and the secured lender Goldman Sachs Mortgage Co.
In January the bankruptcy judge ruled in favor of Goldman Sachs by
concluding that the property is worth $132 million, compared with
the $193 million balance on the lender's mortgage. The resort
filed a motion for reconsideration and lost. The resort
previously said it "identified" several investors willing to
provide capital.
About RQB Resort
RQB Resort LP and RQB Development LP own Florida's Sawgrass
Marriott Resort, the site of the U.S. PGA Tour's Tournament
Players Championship.
Ponte Vedra Beach, Florida-based RQB Resort, LP, aka Sawgrass
Marriott Resort & Cabana Club, filed for Chapter 11 bankruptcy
protection (Bankr. M.D. Fla. Case No. 10-01596) on March 1, 2010.
The Company's affiliate -- RQB Development, LP, aka Sawgrass
Marriott Golf Villas & Spa -- filed a separate Chapter 11
petition. Cynthia C. Jackson, Esq., at Smith Hulsey & Busey, in
Jacksonville, Fla., represents the Debtors. The Company estimated
its assets and debts at $100 million to $500 million in its
Chapter 11 petition.
SBARRO INC: Posts $2.83 Million Net Loss From May 30 to July 3
--------------------------------------------------------------
Sbarro, Inc., et al., reported a net loss of $2.83 million on
$30.75 million of revenues for the filing period May 30, 2011,
through July 3, 2011. Reorganization items of $1.80 million
includes $1.61 million of accrued professional fees directly
related to the restructuring.
At July 3, 2011, the Debtors had $394.36 million in total assets,
$521.16 million in total liabilities, and a stockholders' deficit
of $126.80 million. The Debtors ended the period with
$18.71 million in cash and cash equivalents, compared to
$20.04 million at the beginning of the period.
A copy of the operating report is available at:
http://bankrupt.com/misc/sbarro.may30-july3mor.pdf
About Sbarro Inc.
The Sbarro family started its business after moving to Brooklyn,
New York, from Naples, Italy, in 1956. Today Sbarro is a leading,
global Italian quick service restaurant concept with approximately
5,170 employees, 1,045 restaurants throughout 42 countries, and
annual revenues in excess of $300 million.
Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr.
S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million
in debt. According to its schedules, the Debtor disclosed
$51,537,899 in total assets and $460,975,646 in total debts.
Sbarro said it has reached an agreement with all of its second-
lien secured lenders and approximately 70% of its senior
noteholders on the terms of a reorganization plan that will
eliminate more than half of the Company's total indebtedness.
Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland &
Ellis, LLP, serve as the Debtors' general bankruptcy counsel.
Rothschild, Inc., is the Debtors' investment banker and financial
advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy
consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors'
special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle
LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy
Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co
is the Debtors' communications advisor. DJM Realty Services, LLC,
serves as the Debtors' real estate consultant and advisor.
On April 12, 2011, the U.S. Trustee for the Southern District of
New York appointed appointed an official committee of unsecured
creditors. The Committee retained Mesirow Financial Consulting,
LLC, as financial advisor and Otterbourg, Houston & Rosen, P.C.,
as counsel.
On May 27, 2011, the Bankruptcy Court established (i8) July 8,
2011, as the general bar date for filing proofs of claim against
the Debtors' estates and (ii) Oct. 3, 2011, for governmental units
to file proofs of claim.
SEAHAWK DRILLING: Posts $18.58 Million Net Loss in June 2011
------------------------------------------------------------
Seahawk Drilling, Inc., et al., reported loss from continuing
operations of $18.58 million on $0 revenues for the month ended
June 30, 2011.
At June 30, 2011, the Debtor had $143.81 million in total assets,
$429.88 million in total liabilities, and a stockholders' deficit
of $286.07 million.
The Debtor ended the period with $14.07 million cash, compared
with $15.29 million cash at the beginning of the period. Payments
to restructuring professionals totaled $867,733 for the month.
Payments to insiders totaled $118,455.
A copy of the operating report is available at http://is.gd/irWqyE
About Seahawk Drilling
Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup
rig business in the United States, Gulf of Mexico, and offshore
Mexico. It offers rigs and drilling crews on a day rate
contractual basis.
The Company and several affiliates filed for Chapter 11 bankruptcy
protection (Bankr. S.D. Tex. Lead Case No. 11-20089) on Feb. 11,
2011. Berry D. Spears, Esq., and Jonathan C. Bolton, Esq., at
Fullbright & Jaworkski L.L.P., in Houston, serve as the Debtors'
bankruptcy counsel. Shelby A. Jordan, Esq., and Nathaniel Peter
Holzer, Esq. at Jordan, Hyden, Womble, Culbreth & Holzer, P.C., in
Corpus Christi, Texas, serve as the Debtors' co-counsel. Alvarez
and Marsal North America, LLC, is the Debtors' restructuring
advisor. Simmons & Company International is the Debtors'
transaction advisor. Kurtzman Carson Consultants LLC is the
Debtors' claims agent. Judy A. Robbins, U.S. Trustee for
Region 7, appointed three creditors to serve on an Official
Committee of Unsecured Creditors of Seahawk Drilling Inc. and its
debtor-affiliates. Heller, Draper, Hayden, Patrick & Horn,
L.L.C., represents the creditors committee.
In its amended schedules, Seahawk Drilling disclosed $208,190,199
in assets and $438,458,460 in liabilities as of the petition date.
Seahawk filed for Chapter 11 protection to complete the sale of
all assets to Hercules Offshore, Inc. As reported by the Troubled
Company Reporter on April 11, 2011, the Bankruptcy Court approved
an Asset Purchase Agreement between Hercules Offshore and its
wholly owned subsidiary, SD Drilling LLC, and Seahawk Drilling,
pursuant to which Seahawk agreed to sell to Hercules, and Hercules
agreed to acquire from Seahawk, all 20 of Sellers' jackup rigs and
related assets, accounts receivable and cash and certain
liabilities of Sellers in a transaction pursuant to Section 363 of
the U.S. Bankruptcy Code. The deal was valued at about
$176 million when it received court approval.
Based on previous TCR reports, the purchase price for the
acquisition will be funded by the issuance of roughly 22.3 million
shares of Hercules Offshore common stock and cash consideration of
$25 million, which will be used primarily to pay off Seahawk's
Debtor-in-Possession loan. The number of shares of Hercules
Offshore common stock to be issued will be proportionally reduced
at closing, based on a fixed price of $3.36 per share, if the
outstanding amount of the DIP loan exceeds $25 million, with the
total cash consideration not to exceed $45 million.
The deal closed on April 27, 2011.
SOUTHWEST GEORGIA: Ethanol Loses $2.34 Million in June
------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Southwest Georgia Ethanol LLC reported a
$2.34 million net loss in June on total revenue of $30.6 million.
The loss before interest, taxes, depreciation and amortization for
the month was $778,000. The gross margin was $1.01 million.
Professional fees in the month were $931,000.
Southwest Georgia Ethanol LLC, a unit of First United Ethanol Co.,
sought bankruptcy protection (Bankr. M.D. Ga. 11-10145) in Albany,
Georgia, on Feb. 1, 2011.
The Debtor owns and operates an ethanol production facility
located on 267 acres in Mitchell County, Georgia, producing
100 million gallons of ethanol annually. Ethanol production
operations commenced in October 2008. Revenue was $168.9 million
for fiscal year ended Sept. 30, 2010. The Debtor said
profitability and liquidity have been materially reduced by
unfavorable fluctuations in commodity prices for ethanol and corn.
John Michael Levengood, Esq., at McKenna Long & Aldridge LLP, in
Atlanta, Georgia, serves as counsel to the Debtor. Morgan Keegan
& Company, Inc., is the investment banker and financial advisor.
The Debtor's balance sheet showed $164.7 million in assets and
$134.1 million in debt as of Dec. 31, 2010.
Since 2008, at least 11 ethanol-related companies have sought
court protection, including VeraSun Energy Corp., once the second-
largest U.S. ethanol maker; units of Pacific Ethanol Inc.; and
White Energy Holding Co.
TOWNSENDS INC: Posts $523,000 Net Loss in 4-Weeks Ended May31
-------------------------------------------------------------
Townsends Inc. and subsidiaries reported a consolidated net loss
of $523,000 on $0 revenue for the 4-week period ended May 31,
2011. The Debtors accrued $277,000 in professional fees during
the period.
At May 31, the Debtors had $17.32 million in total assets,
$80.49 million in total liabilities, and stockholders' deficit of
$63.17 million. The Debtors ended the period with $16.71 million
cash, which includes $15.60 million of restricted cash.
Townsends paid a total of $299,838.36 in professional fees and
reimbursed a total of $18,078.24 in professional expenses for the
period.
A copy of the monthly operating report is available at:
http://bankrupt.com/misc/townends.may2011mor.pdf
About Townsends Inc.
Founded in 1891, Townsends Inc. is a third-generation, family-
owned poultry company. Headquartered in Georgetown, Delaware,
Townsends operates production and processing facilities in
Arkansas and North Carolina. Townsends Inc. -- fka Townsend
Specialty Foods -- and several affiliates filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 10-14092) on
Dec. 19, 2010. As of Dec. 5, 2010, the Debtors disclosed
$131 million in total assets and $127 million in total debts.
Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell, serves
as the Debtors' bankruptcy counsel. McKenna Long & Aldridge LLP
serves as special counsel. Huron Consulting Group's Dalton T.
Edgecomb serves as the Debtors' chief restructuring officer. SSG
Capital Advisors, LLC, serves as investment banker. Donlin,
Recano & Company, Inc., is the Debtors' claims, noticing and
balloting agent.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee has tapped Lowenstein Sandler PC as its
counsel and J.H. Cohn LLP as its financial advisor. No trustee or
examiner has been appointed in the Debtors' bankruptcy cases.
The Debtors sold virtually all of their assets in two Asset Sale
transactions which closed on Feb. 25, 2011. The purchasers were
Omtron, Ltd., and Peco Foods, Inc.
TOWNSENDS INC: Ends June 2011 With $16.69 Million Cash
------------------------------------------------------
Townsends Inc. and subsidiaries reported a consolidated net loss
of $101,000 on $0 revenue for the 4-week period ended June 30,
2011. The Debtors accrued $8,000 in professional fees during the
period.
At June 30, 2011, the Debtors had $17.30 million in total assets,
$80.45 million in total liabilities, and stockholders' deficit of
$63.15 million. The Debtors ended the period with $16.69 million
cash, which includes $15.60 million of restricted cash.
Townsends paid a total of $66,421.08 in professional fees and
reimbursed a total of $3,067.31 in professional expenses for the
period.
A copy of the monthly operating report is available at:
http://bankrupt.com/misc/townsends.june2011mor.pdf
About Townsends Inc.
Founded in 1891, Townsends Inc. is a third-generation, family-
owned poultry company. Headquartered in Georgetown, Delaware,
Townsends operates production and processing facilities in
Arkansas and North Carolina. Townsends Inc. -- fka Townsend
Specialty Foods -- and several affiliates filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 10-14092) on
Dec. 19, 2010. As of Dec. 5, 2010, the Debtors disclosed
$131 million in total assets and $127 million in total debts.
Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell, serves
as the Debtors' bankruptcy counsel. McKenna Long & Aldridge LLP
serves as special counsel. Huron Consulting Group's Dalton T.
Edgecomb serves as the Debtors' chief restructuring officer. SSG
Capital Advisors, LLC, serves as investment banker. Donlin,
Recano & Company, Inc., is the Debtors' claims, noticing and
balloting agent.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee has tapped Lowenstein Sandler PC as its
counsel and J.H. Cohn LLP as its financial advisor. No trustee or
examiner has been appointed in the Debtors' bankruptcy cases.
The Debtors sold virtually all of their assets in two Asset Sale
transactions which closed on Feb. 25, 2011. The purchasers were
Omtron, Ltd., and Peco Foods, Inc.
TROPICANA ENT: Adamar of NJ Has $31,000 June Net Loss
-----------------------------------------------------
Adamar of NJ In Liquidation, LLC
Consolidated Balance Sheets
As of June 30, 2011
ASSETS
Current Assets
Cash and cash equivalents $2,412,000
Receivables, gaming, hotel and other, net 0
Inventories 0
Prepaid expenses and other 0
Deferred income taxes 0
--------------
Total current assets 2,412,000
Property and equipment, at cost, net 0
Investments 0
Tenant allowances and other assets 0
--------------
TOTAL ASSETS $2,412,000
==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accruals $470,000
Accrued payroll and employee benefits 0
Current portion of long-term debt 0
Casino reinvestment obligation 0
Advances from TE and other affiliates, net 0
Advances from NJ affiliates, net 0
Other current liabilities 0
Liabilities subject to compromise 9,560,000
--------------
Total current liabilities 10,030,000
Long-term debt, net of current portion 0
Deferred income taxes 0
--------------
Total Liabilities 10,030,000
Stockholders' Equity
Common stock, no par value (100 shares 0
authorized, issued and outstanding)
Paid-in capital 0
Accumulated deficit (7,619,000)
--------------
Total shareholders' equity (7,619,000)
--------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $2,412,000
==============
Adamar of NJ In Liquidation, LLC
Consolidated Statements of Operations
For the Month Ended June 30, 2011
Revenues
Casino $0
Rooms 0
Food and beverage 0
Other 0
--------------
Total revenues 0
--------------
Costs and Expenses
Casino 0
Rooms 0
Food and beverage 0
Other 0
Marketing 0
General and administrative 0
Utilities 0
Repairs and maintenance 0
Provision for doubtful accounts 0
Property taxes and insurance 0
Rent 0
Rent to New Jersey affiliate 0
Depreciation and amortization 0
Reorganization expense 32,000
--------------
Total 32,000
Operating profit (loss) (32,000)
License denial expense 0
Interest income, net 1,000
Interest expense 0
--------------
Income before income taxes (31,000)
Income taxes benefit/(provision) 0
--------------
NET (LOSS) ($31,000)
==============
Adamar of NJ In Liquidation, LLC
Cash Flows
For the Month Ended June 30, 2011
Beginning cash $2,447,000
Disbursements:
Claims settlement 0
Professional fees disbursements 35,000
Transfer to Tropicana Entertainment 0
UST fees 0
--------------
Total disbursements 35,000
Interest income 1,000
--------------
Ending Cash $2,412,000
==============
About Tropicana Entertainment
Tropicana Entertainment Inc. is a publicly reporting company that,
along with its affiliates, owns or operates nine casinos and
resorts in Indiana, Louisiana, Mississippi, Nevada and New Jersey.
The Company owns approximately 6,000 rooms, 9,000 slot positions
and 250 table games. In addition, the Company owns a development
property in Aruba. The company is based in Las Vegas, Nevada.
Tropicana Entertainment LLC and certain affiliates filed for
Chapter 11 protection on May 5, 2008 (Bankr. D. Del. Case No. 08-
10856). Kirkland & Ellis LLP and Mark D. Collins, Esq., at
Richards Layton & Finger, represent the Debtors in their
restructuring efforts. Their financial advisor is Lazard Ltd.
Their notice, claims, and balloting agent is Kurtzman Carson
Consultants LLC. Epiq Bankruptcy Solutions LLC is the Debtors'
Web site administration agent. AlixPartners LLP is the Debtors'
restructuring advisor. Stroock & Stroock & Lavan LLP and Morris
Nichols Arsht & Tunnell LLP represent the Official Committee of
Unsecured Creditors in this case. Capstone Advisory Group LLC is
financial advisor to the Creditors' Committee.
The OpCo Debtors, a group of Tropicana entities owning casinos and
resorts in Atlantic City, New Jersey and Evansville, Indiana
obtained confirmation from the Bankruptcy Court of a
reorganization plan. On April 29, 2009, non-debtor units of the
OpCo Debtors, designated as the New Jersey Debtors -- Adamar of
New Jersey, Inc., and its affiliate, Manchester Mall, Inc. --
filed for Chapter 11 (Bankr. D. N.J. Lead Case No. 09- 20711) to
effectuate a sale of the Atlantic City Resort and Casino to a
group of Investors-led by Carl Icahn. Judge Judith H. Wizmur
presides over the cases. Manchester Mall is a wholly owned
subsidiary of Adamar that owns and operates certain real property
utilized in the New Jersey Debtors' business operations.
Effective March 8, Tropicana Entertainment successfully emerged
from the Chapter 11 reorganization process as an Carl Icahn-owned
entity.
A group of Tropicana entities, known as the LandCo Debtors, which
own Tropicana casino property in Las Vegas, have obtained approval
of a separate Chapter 11 plan.
Ilana Volkov, Esq., and Michael D. Sirota, Esq., at Cole, Schotz,
Meisel, Forman & Leonard, in Hackensack, New Jersey, represented
the New Jersey Debtors. Kurtzman Carson Consultants LLC acts as
their claims and notice agent. Adamar disclosed $500 million to
$1 billion both in total assets and debts in its petition.
Manchester Mall disclosed $1 million to $10 million in total
assets, and less than $50,000 in total debts in its petition.
Debtors Adamar of New Jersey Inc. and Manchester Mall Inc. have
merged into Adamar of NJ In Liquidation, LLC. The merger and name
change is in accordance with an Amended and Restated Purchase
Agreement, which governs the sale and transfer of the operations
of the Tropicana Casino and Resort - Atlantic City, including
substantially all of the New Jersey Debtors' assets, to Tropicana
Entertainment Inc., Tropicana Atlantic City Corp., and Tropicana
AC Sub Corp., free and clear of any and all liens, claims and
encumbrances.
Bankruptcy Creditors' Service, Inc., publishes Tropicana
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Tropicana Entertainment Inc. and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
WASHINGTON MUTUAL: Ends June With $4.502 Billion in Cash
--------------------------------------------------------
On Aug. 1, 2011, Washington Mutual, Inc., and WMI Investment Corp.
filed their monthly operating report for June 2011 with the United
States Bankruptcy Court for the District of Delaware.
Washington Mutual reported a net loss of $16.85 million for the
period.
At June 30, 2011, Washington Mutual had $6.741 billion in total
assets, $8.389 billion in total liabilities, and a shareholders'
deficit of $1.648 billion. Washington Mutual ended June 2011 with
$4.502 billion in unrestricted cash and cash equivalents.
Washington Mutual paid a total of $4.12 million in professional
fees and reimbursed a total of $4.53 in professional expenses in
June.
WMI Investment reported a net loss of $23,927 for the month of
June.
At June 30, 2011, WMI Investment had $921,265,475 in total
assets, $14,825 in post-petition liabilities, and a stockholders'
equity of $921,250,650. WMI Investment ended June 2011 with
$276,366,639 in unrestricted cash and cash equivalents.
A copy of the operating report is available at http://is.gd/n0ZiVb
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries.
Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns
100% of the equity in WMI Investment. When WaMu filed for
protection from its creditors, it disclosed assets of
$32,896,605,516 and debts of $8,167,022,695. WMI Investment
estimated assets of $500 million to $1 billion with zero debts.
WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal &
Manges LLP in New York City; Mark D. Collins, Esq., at Richards,
Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari,
Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver &
Hedges, LLP. The Debtor tapped Valuation Research Corporation as
valuation service provider for certain assets.
Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New
York and David B. Stratton, Esq., at Pepper Hamilton LLP in
Wilmington, Del., represent the Official Committee of Unsecured
Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and
William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the
Equity Committee. The official committee of equity security
holders also tapped BDO USA as its tax advisor. Stacey R.
Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis,
Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent
JPMorgan Chase, which acquired the WaMu bank unit's assets prior
to the Petition Date.
On Jan. 7, 2011, the U.S. Bankruptcy Court for the District of
Delaware entered a 107-page opinion determining that the global
settlement agreement, among certain parties including WMI, the
Federal Deposit Insurance Corporation and JPMorgan Chase Bank,
N.A., upon which the Plan is premised, and the transactions
contemplated therein, are fair, reasonable, and in the best
interests of WMI. Additionally, the Opinion and related order
denied confirmation, but suggested certain modifications to the
Company's Sixth Amended Joint Plan of Affiliated Debtors that, if
made, would facilitate confirmation.
Washington Mutual has filed with the Bankruptcy Court a Modified
Sixth Amended Joint Plan and a related Supplemental Disclosure
Statement. The Company believes that the Modified Plan has
addressed the Bankruptcy Court's concerns and looks forward to
returning to the Bankruptcy Court to seek confirmation of the
Modified Plan.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Jhonas Dampog, 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 2011. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $775 for 6 months delivered via e-
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are $25 each. For subscription information, contact Christopher
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*** End of Transmission ***