/raid1/www/Hosts/bankrupt/TCR_Public/110823.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, August 23, 2011, Vol. 15, No. 233
Headlines
155 EAST: Wants Access to Cash Collateral of Prepetition Lenders
155 EAST TROPICANA: To Hire Alvarez & Marsal as Financial Advisor
155 EAST TROPICANA: To Hire Goldon Silver as Attorneys
155 EAST TROPICANA: To Hire Innovation Capital as Fin'l Advisor
701 MARIPOSA: Case Summary & 11 Largest Unsecured Creditors
ADAMIS PHARMACEUTICALS: Incurs $1.2MM June 30 Quarter Net Loss
ADINO ENERGY: Reports $43,000 Net Income in Second Quarter
AFFILIATED MEDIA: Postpones Financing Attempts for Freedom Deal
AMERICA WEST: Delays Filing of Quarterly Report on Form 10-Q
AMERICAN POST: Delays Filing of Quarterly Report on Form 10-Q
AMERICAN SCIENTIFIC: Incurs $4 Million Second Quarter Net Loss
AMERICAS ENERGY: Delays Filing of Quarterly Report on Form 10-Q
AMTRUST FINANCIAL: WTC Says Plan and Disclosures "Inconsistent"
ANDRONICO'S COMMUNITY: In Talks to Sell to Investors via Ch. 11
ANGEL ACQUISITION: Delays Filing of Quarterly Report
APPLIED DNA: Number of Directors Increased to Seven
APPLIED MINERALS: Incurs $1.97 Million Second Quarter Net Loss
AQUILEX HOLDINGS: Cut by S&P to 'CCC+' on "Thin Headroom"
ASARCO LLC: Stutzman Bromberg Granted $21-Mil. in Fees
ASARCO LLC: Court Awards Fees, Lauds Baker Botts' Performance
ASTORIA MECHANICAL: Case Summary & 45 Largest Unsecured Creditors
AXION INTERNATIONAL: Incurs $2.9 Million Second Quarter Net Loss
BARBETTA LLC: Can Access Creditors' Cash Collateral Until Sept. 30
BERNARD L. MADOFF: March 5 Jury Trial on $1-Bil. Claim vs. Wilpon
BERNARD L. MADOFF: Trustee Sues Lion Global, 6 Firms for $172MM
BERNARD L. MADOFF: Activists Seek to File Amicus in JPMorgan Case
BERNARD L. MADOFF: Fund, Banks Fight Over $3.1-Bil. in Clawbacks
BIGLER LP: Court Rules on Priority of 3 Creditors' Liens
BONDS.COM GROUP: Delays Filing of Quarterly Report on Form 10-Q
BOOMERANG SYSTEMS: Incurs $3.3-Mil. Net Loss in June 30 Quarter
BOWE BELL: Wants Exclusive Filing Period Extended to Nov. 14
BILO CORPORATION: Case Summary & 6 Largest Unsecured Creditors
BRAINY BRANDS: Delays Filing of Quarterly Report on Form 10-Q
BURLINGTON COAT: Bank Debt Trades at 6% Off in Secondary Market
CALYPTE BIOMEDICAL: Delays Filing of Quarterly Report
CAMP COOLEY: Court Dismissed Motion to Employ Assiter & Associates
CAMP COOLEY: Circle X's $28.5-Mil. Offer Tops Auction
CAPMARK FINANCIAL: Wins Chapter 11 Plan Confirmation
CAPSALUS CORP: Delays Filing of Quarterly Report on Form 10-Q
CARIBE MEDIA: Files Plan to Exit Chapter 11 Under Lenders' Control
CASTLE BRANDS: Plan to Regain Compliance Accepted by NYSE Amex
CCS INCOME TRUST: Bank Debt Trades at 11% Off in Secondary Market
CEMTREX INC: Reports $428,000 Net Income in June 30 Quarter
CHARMING CASTLE: Trustee Obtains $323T Judgment v. Ex-Client
CHINA TEL GROUP: Incurs $2.4 Million Net Loss in Second Quarter
CLAIRE'S STORES: Bank Debt Trades at 15% Off in Secondary Market
CLUB VENTURES: Court Sets Sept. 23 Plan Confirmation Hearing
CLUB VENTURES: Court Approves DIP Loan Increase to $1.5 Million
COLTS RUN: Aug. 30 Status Hearing in Bank Suit v. Insider
COMPOSITE TECHNOLOGY: Sale of All Assets to CTC Acquisition OK'd
CONTECH CONSTRUCTION: Bank Debt Trades at 23% Off
DELPHI CORP: District Court Affirms Ruling Disallowing Adm. Claim
DELTA AIR: Wraps Up Bankruptcy Issues, Distributes Final Shares
DINEEQUITY INC: Bank Debt Trades at 4% Off in Secondary Market
DOLE FOOD: Fitch Lifts Long-Term Issuer Default Rating to 'B+'
DOT VN: Incurs $5 Million Net Loss in Fiscal 2011
DUANE READE: Former CEO Gets 3 Years Prison for Inflating Earnings
ECCO DRILLING: Plan Trustee Wins $57T Judgment in Avoidance Suit
EFD LTD: Reorganization Plan Confirmation Hearing Set for Nov. 21
ELLICOTT SPRINGS: Court Converts Case to Chapter 7
ENTEGRA TC: S&P Drops 'CCC+' on 2nd-Lien Debt After Refinancing
EPICEPT CORP: Incurs $4.3 Million Net Loss in Second Quarter
EVERGREEN SOLAR: Seeks to Retain Pachulski Stang as Co-Counsel
FIRST CHOICE BANK: Closed; Inland Bank & Trust Assumes Deposits
FIRST SOUTHERN NATIONAL: Closed; Heritage Bank Assumes Deposits
FLORIDA GAMING: Incurs $4.6 Million Net Loss in Second Quarter
FRANKLIN CREDIT: Reports $31.8 Million Second Quarter Net Income
FREEDOM COMMS: MediaNews Postpones Attempts to Get Financing
FUSION TELECOMMUNICATIONS: Borrows $33,000 from Director
FUSION TELECOMMUNICATIONS: Incurs $1.2MM Second Quarter Net Loss
GRAPHIC PACKAGING: Bank Debt Trades at 4% Off in Secondary Market
GROVE STREET: Court Dismisses Chapter 11 Case
GYMBOREE CORP: Bank Debt Trades at 11% Off in Secondary Market
HARBOUR EAST: Seeks to Hire Trust Global Realty as Broker
HENRY COUNTY: Delays Filing of Quarterly Report on Form 10-Q
IDO SECURITY: Delays Filing of Quarterly Report on Form 10-Q
IMAGE METRICS: Posts $3.4 Million Net Income in June 30 Quarter
IMPERIAL CAPITAL: Wants Status Hearing, May Modify Plan
INDEPENDENCE TAX III: Incurs $322,900 Net Loss in June 30 Quarter
INDEPENDENCE TAX IV: June 30 Balance Sheet Upside-Down by $18.1MM
INNER CITY: Sent to Ch. 11 by Yucaipa, Fortress for $254MM Debt
INNER CITY: Involuntary Chapter 11 Case Summary
INNKEEPERS USA: Cerberus Formally Backs Out of Deal, May Face Suit
INTEGRA BANK: Unable to File Quarterly Report Due to Bankruptcy
INTERNATIONAL ENERGY: Can Hire A. Frank Baron as Counsel
I/OMAGIC CORP: Thomas Gruber Appointed to Board of Directors
J CREW: Bank Debt Trades at 12% Off in Secondary Market
JEFFERSON CALHOUN: Court Confirms Bankruptcy Plan
JOHN D. OIL: Incurs $563,600 Net Loss in Second Quarter
JOSEPH DETWEILER: Judge Rules on Fee Request in Creditor Suit
JUNIPER GROUP: Delays Filing of Quarterly Report on Form 10-Q
KL ENERGY: Incurs $578,200 Net Loss in Second Quarter
KOLORFUSION INT'L: Sept. 26 Hearing for Reorganization Plan Set
KT SPEARS: FPSB Joins RBC's Motion to Dismiss for Bad Faith Filing
LA JOLLA: Reports $4.7 Million Net Income in Second Quarter
LEE ENTERPRISES: Receives Second NYSE Timetable
LG GUIJARRO: Case Summary & 5 Largest Unsecured Creditors
LOCAL INSIGHT: Settles Bain & Co. Bankruptcy Claim for $4 Million
LOST LAKE: Involuntary Chapter 11 Case Summary
LUMEA STAFFING: Case Summary & 20 Largest Unsecured Creditors
LV KAPOLEI: Plan Confirmation Hearing Scheduled for Sept. 27
LV KAPOLEI: Creditor KBP's Control of Assets Stayed Until Sept. 27
LYDIAN PRIVATE BANK: Closed; Sabadell United Assumes All Deposits
MANI VALLABH: Case Summary & 4 Largest Unsecured Creditors
MANISTIQUE PAPERS: Meeting to Form Creditors Committee Today
MAQ MANAGEMENT: Can Hire Talarchyk Merrill as Counsel
MAQ MANAGEMENT: Branch Banking Seeks Dismissal of 2 Debtor Cases
MARRS ELECTRIC: Case Summary & 8 Largest Unsecured Creditors
MASTER SILICON: Incurs $129,600 Net Loss in Second Quarter
MILNER ELECTRICAL: Case Summary & 20 Largest Unsecured Creditors
MOMENTIVE PERFORMANCE: Files Form 10-Q, Incurs $10MM Q2 Net Loss
MPM TECHNOLOGIES: Delays Filing of Second Quarter Form 10-Q
MT. ZION: Aug. 30 Status Hearing in Bank Suit v. Insider
NOW FAITH: Case Summary & 8 Largest Unsecured Creditors
ODYSSEY (III) DP: Case Summary & 20 Largest Unsecured Creditors
PERKINS & MARIE: Targets October Confirmation of Plan
PERKINS & MARIE: Court Approves Ropes & Gray as Panel's Counsel
PERKINS & MARIE: Court OKs Landis Rath as Committee's Del. Counsel
PERKINS & MARIE: Court Approves FTI as Committee's Fin'l Advisor
PETTERS COMPANY: 8th Cir. Affirms Global Settlement With Acorn
PHARMACY DISTRIBUTOR: U.S. Government Loses Bid to Dismiss Suit
PMI GROUP: Receives Continued Listing Standards Notice From NYSE
RITZ INTERACTIVE: Files for Bankruptcy in Sta. Ana, Calif.
RITZ INTERACTIVE: Case Summary & 20 Largest Unsecured Creditors
ROXBURY ASSOCIATES: Case Summary & 6 Largest Unsecured Creditors
SALT CREEK: Voluntary Chapter 11 Case Summary
SHENGDATECH INC: Seeks Bankruptcy With About $181-Mil. in Debt
SHENGDATECH INC: Voluntary Chapter 11 Case Summary
SPECTRAWATT, INC.: Case Summary & 9 Largest Unsecured Creditors
SUMMO INC: Sold Cars to Owner's Granddaughter for $4,000
SUMMO INC: Sec. 341 Creditors Meeting Set for Sept. 15
SUMMO INC: Status Conference Set for Sept. 15
TALBITZER CONSTRUCTION: Case Summary & 20 Largest Unsec Creditors
TERRESTAR NETWORKS: Noteholders Have Valid Lien on S-Band License
WACCAMAW BANKSHARES: Gets Letter From Nasdaq Relating to Late 10-Q
* S&P Speculative-Grade Composite Spread Widens to 712 Bps
* Banco Sabadell Buys Failed Florida Bank as Toll Rises to 68
* Large Companies With Insolvent Balance Sheets
*********
155 EAST: Wants Access to Cash Collateral of Prepetition Lenders
----------------------------------------------------------------
155 East Tropicana, LLC, and 155 East Tropicana Finance Corp., ask
the U.S. Bankruptcy Court for the District of Nevada for
authorization to use the cash collateral of their prepetition
lenders.
Canpartners Realty Holding Company IV LLC, successor
administrative agent and sole lender under a credit agreement
dated as of March 29, 2005, providing Debtors with a $15 million
revolving credit facility. Canpartners acquired the credit
facility from Wells Fargo. As of the Petition Date, the Debtors'
principal obligations outstanding were $14.49 million plus accrued
and unpaid interest. Indebtedness is secured by interests and
liens granted on the Debtors' personal property.
U.S. Bank National association, successor trustee under that
indenture dated as of March 29, 2005, pursuant to which
$130,000,000 of 8-3/4% senior secured notes due 2012 were issued
to various lenders. The Bank of New York Trust Company, N.A. was
the indenture trustee under the old senior secured notes. As of
the Petition Date, the Debtors' principal obligations outstanding
were $130,000,000 plus accrued interests, fees, costs and expenses
under the indenture to the Petition Date in the total amount of
$32,229,177.
The Debtors believe that the agent and the trustee asserts that
these represents cash collateral as encumbered personal property:
(i) the Company's cash and cash equivalents located on the
premises of the various Debtors as of the Petition Date; (ii) the
Company's bank accounts as of the Petition Date; and (iii) cash
generated or received by the Company from and after the Petition
Date. As of the Petition Date, the balance of deposit accounts
was $4,245,964 and cash on hand was $4,755,558. The cash on hand
includes the Company's casino bankroll of $2,500,000, which is
specifically included in the definition of excluded assets and
cannot serve as cash collateral.
The Debtors will use the cash collateral to pay costs of
administration and operate the Company's business in the ordinary
course.
As adequate protection of the agent's and the trustee's interests
in the cash collateral and disputed cash collateral, the Debtors
offer the following:
-- replacement liens on all collateral, superpriority
administrative expense claim status, subject to carve out of
certain expenses.
-- as additional adequate protection of the trustee, the
Debtors will pay the agent interest on the outstanding
principal obligation under the credit facility at the non-
default rate.
Objections
Canpartners submitted its limited objection to the Debtors' cash
collateral motion stating that:
A. The motion does not provide Canpartners with adequate
protection of its interest in its cash collateral.
B. The motion improperly seeks to determine the validity and
extent of Canpartners' liens outside of the context of an
adversary proceeding and in a manner that is unduly prejudicial
to Canpartners and its due process rights.
Canpartners related that it sought, before and after the Petition
Date, to negotiate with Debtors regarding certain deficiencies,
but the Debtors instead invited Canpartners to file the objection.
At the time of the filing, Canpartners continues to negotiate with
the Debtors to obtain the reasonable protections. To the extent
these deficiencies are not remedied, the motion must be denied.
Canpartners reserves all of its rights to seek additional adequate
protection at the final hearing, including seeking adequate
protection payments on the Senior Secured Notes.
Canpartners is represented by:
LOEB & LOEB LLP
Andrew S. Clare, Esq.
Lance N. Jurich, Esq.
10100 Santa Monica Blvd., Suite 2200
Los Angeles, CA 90067
Tel: (310) 282-2000
Fax: (310) 282-2200
E-mail: aclare@loeb.com
ljurich@loeb.com
SHEA & CARLYON, LTD.
James Shea, Esq.
Candace Carlyon, Esq.
701 Bridger, Suite 850
Las Vegas, NV 89101
Tel: (702) 471-7432
Fax: (702) 471-7435
E-mail: jshea@sheacarlyon.com
ccarlyon@sheacarlyon.com
U.S. Bank National Association supports the limited opposition of
Canpartners to the Debtors' cash collateral motion noting that the
proposed interim cash collateral order does not provide
Canpartners or the trustee with adequate protection of their
interest in the cash collateral.
U.S. Bank is represented by:
Jon T. Pearson, Esq.
BALLARD SPAHR LLP
100 North City Parkway, Suite 1750
Las Vegas, NV 89106
Tel: (702) 471-7000
Fax: (702) 471-7070
E-mail: pearsonj@ballardspahr.com
- and -
Vincent J. Marriott, III, Esq.
BALLARD SPAHR LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19147
Tel: (215) 665-8500
Fax: (215) 864-8999
E-mail: marriott@ballardspahr.com
- and -
Ethan B. Minkin, Esq.
BALLARD SPAHR LLP
1 East Washington Street, Suite 2300
Phoenix, AZ 85004-2555
Tel: (602) 798-5400
Fax: (602) 798-5595
E-mail: minkine@ballardspahr.com
- and -
Thomas O. Kelly, III, Esq.
Katherine A. Constantine, Esq.
Patrick J. McLaughlin, Esq.
DORSEY & WHITNEY LLP
50 South Sixth Street, Suite 1500
Minneapolis, MN 55402-1498
Tel: (612) 340-2600
Fax: (612) 340-2868
E-mail: kelly.tom@dorsey.com
constantine.katherine@dorsey.com
mclaughlin.patrick@dorsey.com
About 155 East Tropicana
155 East Tropicana owns the world's first Hooters Casino Hotel, a
696-room and 4-suite hotel located one block from the Las Vegas
Strip and across Tropicana Blvd. from MGM Grand.
155 East Tropicana, LLC, along with an affiliate, sought Chapter
11 protection (Bankr. D. Nev. Case No. 11-22216) on Aug. 1, 2011.
155 East sought bankruptcy protection to stop a scheduled Aug. 8
foreclosure of the second-lien debt. The two secured credit
facilities were accelerated early this year. Canpartners Realty
Holding Co. IV LLC acquired 98.4% of the $130 million in 8.75%
second-lien senior secured notes. An additional $32.2 million of
interest is owing on the second-lien debt. US Bank NA is the
indenture trustee. Holders of the $14.5 million in first-lien
debt have Wells Fargo Capital Finance Inc. as their agent. The
first-lien obligation is fully secured. Interest has been paid
currently at the default rate.
Brigid M. Higgins, Esq., at Gordon & Silver, Ltd., in Las Vegas,
Nevada, serves as counsel to the Debtors. Garden City Group,
Inc., is the claims agent.
155 East Tropicana estimated $50 million in assets and $100
million to $500 million in liabilities.
155 EAST TROPICANA: To Hire Alvarez & Marsal as Financial Advisor
-----------------------------------------------------------------
155 East Tropicana LLC seeks permission from the U.S. Bankruptcy
Court for the District of Nevada to employ Alvarez & Marsal as
financial and restructuring advisor.
The firm will among other things:
a. review and analyze the business operations, liquidity
situation, assets and liabilities, financial condition, and
prospects of Debtors;
b. review and analyze Debtors' business plan, operating and
capital expenditures budgets, loan agreements and bond
indentures and multi-year financial projections under
various operating scenarios; and
c. perform valuation analyses with respect to some and/or all
of Debtors' business.
Neither A&M nor the A&M Professionals (a) has any present
connection with Debtors, Debtors' creditors, or other parties-in-
interest or (b) holds or represents any interest adverse to the
Estate. A&M and the A&M Professionals thus are disinterested
within the meaning of 11 U.S.C. Sec 101(14) and 327, as modified
by 11 U.S.C. Sec 1107(b). Neither A&M nor the A&M professionals
have any connection with the United States Trustee or any persons
employed in the office of the United States Trustee.
A&M does not hold or represent any interest that would impair
A&M's ability to objectively perform the services contemplated
herein.
Within the one-year period immediately preceding the Petition
Date, Debtors paid A&M the sum of $92,545 for advisory services
rendered in connection with their restructuring (including $7,379
that was applied against the retainer prior to the Petition Date).
The firm's hourly rates are:
Personnel Rates
--------- -----
managing directors $450 to $850
senior directors $450 to $850
directors $450 to $850
associates $225 to $450
analysts $225 to $450
About 155 East Tropicana
155 East Tropicana LLC owns the world's first Hooters Casino
Hotel, a 696-room and 4-suite hotel located one block from the Las
Vegas Strip and across Tropicana Blvd. from MGM Grand.
155 East Tropicana, along with an affiliate, sought Chapter 11
protection (Bankr. D. Nev. Case No. 11-22216) on Aug. 1, 2011.
155 East sought bankruptcy protection to stop a scheduled Aug. 8
foreclosure of the second-lien debt. The two secured credit
facilities were accelerated early this year. Canpartners Realty
Holding Co. IV LLC acquired 98.4% of the $130 million in 8.75%
second-lien senior secured notes. An additional $32.2 million of
interest is owing on the second-lien debt. US Bank NA is the
indenture trustee. Holders of the $14.5 million in first-lien
debt have Wells Fargo Capital Finance Inc. as their agent. The
first-lien obligation is fully secured. Interest has been paid
currently at the default rate.
Brigid M. Higgins, Esq., at Gordon & Silver, Ltd., in Las Vegas,
Nevada, serves as counsel to the Debtors. Garden City Group,
Inc., is the claims agent.
155 East Tropicana estimated $50 million in assets and
$100 million to $500 million in liabilities as of the Chapter 11
filing.
155 EAST TROPICANA: To Hire Goldon Silver as Attorneys
------------------------------------------------------
155 East Tropicana LLC seeks permission from the U.S. Bankruptcy
Court for the District of Nevada to employ Goldon Silver as
attorneys.
The firm can be reached at:
GORDON SILVER
Attorneys At Law
Ninth Floor
3960 Howard Hughes Pkwy
Las Vegas, Nevada 89169
Tel: (702) 796-5555
Upon retention, the firm, will among other things:
a. advise Debtors with respect to their rights, powers and
duties as Debtors and Debtors in Possession in the continued
operation and management of their business and property;
b. prepare and pursue confirmation of a plan of
reorganization and approval of a disclosure statement;
c. prepare on behalf of Debtors all necessary applications,
motions, answers, proposed orders, other pleadings, notices,
schedules and other documents, and review all financial
and other reports to be filed.
Neither GS, nor any other shareholder or associate thereof has any
prior or present connection with Debtors, or Debtors' creditors or
other parties-in-interest, except as set forth below. GS and its
shareholders and associates do not hold or represent any interest
adverse to Debtors' estates and GS and its shareholders and
associates are disinterested persons within the meaning of 11
U.S.C. Sec 101(14) and 327 as modified by 11 U.S.C. Sec. 1107(b).
Additionally, GS does not have any connection with the United
States Trustee or any persons employed in the Office of the United
States Trustee. GS's representation of Debtors will not be
adverse to Debtors' estates.
The firm's rates are:
Personnel Rates
--------- -----
Paraprofessionals $130-$175 per hour
Associates $185-$350 per hour
Shareholders $455-$700 per hour
About 155 East Tropicana
155 East Tropicana LLC owns the world's first Hooters Casino
Hotel, a 696-room and 4-suite hotel located one block from the Las
Vegas Strip and across Tropicana Blvd. from MGM Grand.
155 East Tropicana, along with an affiliate, sought Chapter 11
protection (Bankr. D. Nev. Case No. 11-22216) on Aug. 1, 2011.
155 East sought bankruptcy protection to stop a scheduled Aug. 8
foreclosure of the second-lien debt. The two secured credit
facilities were accelerated early this year. Canpartners Realty
Holding Co. IV LLC acquired 98.4% of the $130 million in 8.75%
second-lien senior secured notes. An additional $32.2 million of
interest is owing on the second-lien debt. US Bank NA is the
indenture trustee. Holders of the $14.5 million in first-lien
debt have Wells Fargo Capital Finance Inc. as their agent. The
first-lien obligation is fully secured. Interest has been paid
currently at the default rate.
Alvarez & Marsal is the financial and restructuring advisor to the
Debtors. Garden City Group, Inc., is the claims agent.
155 East Tropicana estimated $50 million in assets and
$100 million to $500 million in liabilities as of the Chapter 11
filing.
155 EAST TROPICANA: To Hire Innovation Capital as Fin'l Advisor
---------------------------------------------------------------
155 East Tropicana LLC seeks permission from the U.S. Bankruptcy
Court for the District of Nevada to employ Innovation Capital, LLC
as financial advisor for Capital Raising transactions and M&A
transactions.
Upon retention, the firm, will among other things:
a) act as exclusive financial advisor solely in connection with
completing a Transaction;
b) act as exclusive placement agent with regard to securing
senior debt and/or junior capital and other aspects of
financing for a Transaction, as requested and mutually
agreed; and
c) assist Debtors in identifying, contacting and evaluating
investor and/or acquirer proposals for a potential
Transaction and assist Debtors in negotiating and
consummating a Transaction, as requested and mutually
agreed.
The Debtors intend to also seek authority from this Court to
retain Alvarez & Marsal North America, LLC as its financial
advisor with regard to the Chapter 11 cases.
The Debtors have discussed with both Innovation and A&M the
separate roles each will perform for Debtors, and is confident
that the services to be performed are not duplicative, but, in
fact, complimentary.
Innovation has informed Debtors that the firm has no material
connection with Debtors, their creditors, any other party in
interest, their respective attorneys and accountants, the United
States Trustee for the District of Nevada, or any person employed
by the office of the U.S. Trustee.
The Debtors have agreed to pay Innovation upon Closings of a
Transaction during the term of the Financial Advisory Agreement,
according to the Fee Structure, subject to this Court's approval
and in compliance with further orders of this Court, as follows:
(a) DIP/Senior Debt Financing Fee: 2.00% of the
Aggregate Senior Debt including debt provided as Debtor-in-
Possession financing raised, committed or contributed to the
Company for a Capital Raising Transaction.
(b) Junior Capital Financing Fee: 3.00% of the
aggregate Junior Capital Financing (the "Junior Capital
Financing Fee") raised, committed or contributed to the
Company for a Capital Raising Transaction. For the avoidance
of doubt, the Junior Capital Financing Fee shall not be
applied to equity contributions from a party in connection
with an M&A Transaction in which an M&A Transaction Fee
applies against Aggregate Consideration.
(c) M&A Transaction Fee: If a Transaction takes the form of an M&A
Transaction of the Company and/or a change of control
resulting in the sale, merger or acquisition of more than
95.0% of either the economic or voting interests in the
Company to a third party, $200,000 plus two percent (2.00%) of
the Aggregate Consideration actually received by the Company
in a M&A Transaction (the "M&A Transaction Fee").
(d) Restructuring Fee: In the event that the Company completes a
Canpartners Restructuring Transaction, provided that the
Company receives a bona fide letter of intent, expression of
interest or term sheet that is acceptable to the Company
from a financially qualified investor, institution and/or
gaming/hospitality company as a result of the efforts of
Innovation, a "Restructuring Fee" equal to $500,000 shall be
due.
(e) Hybrid Restructuring Fee: In the event that the Company
completes a Hybrid Restructuring Transaction, a "Hybrid
Restructuring Fee" equal to $250,000 will be due in addition
to the Fees due in connection with the Capital Raising
Transaction(s).
(f) Monthly Retainer Fee: The Company agrees to pay a monthly
retainer fee (the "Monthly Retainer Fee") in the amount of
thirty-five thousand dollars ($35,000) per month. The first
monthly payment shall be due upon the entry of an order by the
Bankruptcy Court approving this Agreement with subsequent
monthly payments to be due on each monthly anniversary
thereof. It is agreed that fifty percent (50.0%) of the
Monthly Retainer Fee payments shall be credited against any
Junior Capital Financing Fee and/or M&A Transaction Fee
earned.
About 155 East Tropicana
155 East Tropicana LLC owns the world's first Hooters Casino
Hotel, a 696-room and 4-suite hotel located one block from the Las
Vegas Strip and across Tropicana Blvd. from MGM Grand.
155 East Tropicana, along with an affiliate, sought Chapter 11
protection (Bankr. D. Nev. Case No. 11-22216) on Aug. 1, 2011.
155 East sought bankruptcy protection to stop a scheduled Aug. 8
foreclosure of the second-lien debt. The two secured credit
facilities were accelerated early this year. Canpartners Realty
Holding Co. IV LLC acquired 98.4% of the $130 million in 8.75%
second-lien senior secured notes. An additional $32.2 million of
interest is owing on the second-lien debt. US Bank NA is the
indenture trustee. Holders of the $14.5 million in first-lien
debt have Wells Fargo Capital Finance Inc. as their agent. The
first-lien obligation is fully secured. Interest has been paid
currently at the default rate.
Brigid M. Higgins, Esq., at Gordon & Silver, Ltd., in Las Vegas,
Nevada, serves as counsel to the Debtors. Alvarez & Marsal is the
financial and restructuring advisor to the Debtors. Garden City
Group, Inc., is the claims agent.
155 East Tropicana estimated $50 million in assets and
$100 million to $500 million in liabilities as of the Chapter 11
filing.
701 MARIPOSA: Case Summary & 11 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: 701 Mariposa Project, LLC
4768 Park Granada, Suite 200
Calabasas, CA 91302
Bankruptcy Case No.: 11-19932
Chapter 11 Petition Date: August 18, 2011
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Rachel S. Ruttenberg, Esq.
LAW OFFICES OF MARK E. GOODFRIEND
16255 Ventura Boulevard, Suite 205
Encino, CA 91436
Fax: (818) 783-5445
E-mail: rruttenberg@gmail.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 11 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/cacb11-19932.pdf
The petition was signed by Gary Walch, manager.
ADAMIS PHARMACEUTICALS: Incurs $1.2MM June 30 Quarter Net Loss
--------------------------------------------------------------
Adamis Pharmaceuticals Corporation filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q
reporting a net loss of $1.24 million on $0 of revenue for the
three months ended June 30, 2011, compared with a net loss of
$1.31 million on $0 of revenue for the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $687,556 in
total assets, $1.91 million in total liabilities, and a
$1.22 million total stockholders' deficit.
The Company reported a net loss of $6.98 million on $0 revenue for
the fiscal year ended March 31, 2011, compared with a net loss of
$6.71 million on $290,288 of revenue for the fiscal year ended
March 31, 2010.
As reported by the TCR on July 14, 2011, Mayer Hoffman McCann
P.C., in Boca Raton, Fla., expressed substantial doubt about
Adamis Pharmaceuticals' ability to continue as a going concern.
The independent auditors noted that the Company has incurred
recurring losses from operations and has limited working capital
to pursue its business alternatives.
If the Company did not have sufficient funds to continue
operations, it could be required to seek bankruptcy protection or
other alternatives that could result in the Company's stockholders
losing some or all of their investment in the Company. Any
failure to dispel any continuing doubts about the Company's
ability to continue as a going concern could adversely affect the
Company's ability to enter into collaborative relationships with
business partners, make it more difficult to obtain required
financing on favorable terms or at all, negatively affect the
market price of the Company's common stock and could otherwise
have a material adverse effect on the Company's business,
financial condition and results of operations.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/Wpac9s
About Adamis Pharmaceuticals
San Diego, Calif.-based Adamis Pharmaceuticals Corporation is an
emerging pharmaceutical company engaged in the development and
commercialization of a variety of specialty pharmaceutical
products. Its products are concentrated in major therapeutic
areas including oncology (cancer), immunology and infectious
diseases (viruses) and allergy and respiratory.
ADINO ENERGY: Reports $43,000 Net Income in Second Quarter
----------------------------------------------------------
Adino Energy Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q reporting
net income of $43,191 on $597,255 of total revenues for the three
months ended June 30, 2011, compared with a net loss of $51,088 on
$466,699 of total revenues for the same period during the prior
year.
The Company also reported a net loss of $450,281 on $1.08 million
of total revenues for the six months ended June 30, 2011, compared
with net income of $78,779 on $1.12 million of total revenues for
the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $3.53 million
in total assets, $6.39 million in total liabilities, and a
$2.85 million total stockholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/AeNgcO
About Adino Energy
Based in Houston, Texas, Adino Energy Corporation (OTC BB: ADNY)
-- http://www.adinoenergycorp.com/-- through its wholly owned
subsidiary Intercontinental Fuels, LLC, specializes in fuel
terminal operations for retail, wholesale, and governmental
suppliers.
The Company reported a net loss of $277,802 on $2.00 million of
total revenues for the year ended Dec. 31, 2010, compared with net
income of $23,029 on $2.18 million of total revenues during the
prior year.
As reported by the TCR on April 8, 2011, M&K CPAS, PLLC, in
Houston, Texas, expressed substantial doubt about the Company's
ability to continue as a going concern, following the 2010
financial results. The independent auditors noted that the
Company has suffered recurring losses from operations and
maintains a working capital deficit.
AFFILIATED MEDIA: Postpones Financing Attempts for Freedom Deal
---------------------------------------------------------------
Mike Spector and Russell Adams, writing for The Wall Street
Journal, report that people familiar with the matter said unstable
markets have stalled a deal for MediaNews Group Inc. to buy
Freedom Communications Inc.'s newspapers.
The sources told the Journal the inhospitable debt markets forced
MediaNews to postpone attempts to get financing for the deal.
MediaNews and its advisers believe financing terms would be
prohibitive given recent market turmoil and a challenging outlook
for newspaper companies, the people said.
The sources told the Journal MediaNews has been in discussions for
several months with Freedom about acquiring the Orange County
Register and more than 100 other newspapers for around $350
million. The deal would have left Freedom's television stations
to be sold to another suitor.
The sources added that MediaNews and Freedom could revisit a deal
in coming weeks, but that will depend on market conditions. A
Freedom spokesman said the company "has reached no resolution or
agreement and is continuing to talk with a number of potential
suitors."
About Affiliated Media
Denver, Colorado-based Affiliated Media, Inc., is the holding
company for the MediaNews Group family of newspapers, the nation's
second-largest newspaper publisher by circulation and owner of 54
daily newspapers, over 100 non-daily newspapers, as well as Web
sites, television and radio broadcasters that serve markets in 12
states.
The Company filed for Chapter 11 bankruptcy protection (Bankr. D.
Delaware Case No. 10-10202) on Jan. 22, 2010. Hughes
Hubbard & Reed LLP, served as the Debtor's general bankruptcy
counsel, while Daniel B. Butz, Esq., at Morris, Nichols, Arsht &
Tunnell LLP, served as the Debtor's co-bankruptcy counsel. Carl
Marks Advisory Group LLC acted as the Debtor's restructuring
advisor; Rothschild Inc., the Debtor's financial advisor; and Epiq
Bankruptcy Solutions, LLC, the Debtor's claims agent. The Company
estimated $100 million to $500 million in assets and $500 million
to $1 billion in liabilities.
The Hon. Kevin J. Carey confirmed the Company's plan of
reorganization on March 4, 2010, less than six weeks after
the bankruptcy filing. The Company had reached agreement
pre-bankruptcy with its lenders on terms of the plan, which
reduces the Company's debt from $930 million to $165 million and
involves no management change or change of control of the Company.
The Plan gives holders of senior notes aggregating $583.1 million
88% of the common stock, the proceeds of $150 million secured term
loan and certain cash payments. Holders of general unsecured
claims retain their claims or would be paid in full. Holders of
$326 million in subordinated notes would receive warrants to
purchase stock of the reorganized company. Holders of equity
interests were wiped out.
Affiliated Media emerged from Chapter 11 protection in March 2010.
About Freedom Communications
Freedom Communications, headquartered in Irvine, Calif., is a
national privately owned media company operating print
publications, broadcast television stations and interactive
businesses. The company's print portfolio includes approximately
100 daily and weekly publications, plus ancillary magazines and
other specialty publications. The broadcast company's stations --
five CBS, two ABC network affiliates and one CW affiliate -- reach
more than 3 million households across the country. The Company's
news, information and entertainment websites complement its print
and broadcast properties.
Freedom Communications filed for Chapter 11 protection (Bankr. D.
Del. Case No. 09-13046) on Sept. 1, 2009. Attorneys at Young
Conaway Stargatt & Taylor, and Latham & Watkins LLP served as
Chapter 11 counsel. Houlihan, Lokey, Howard & Zukin, Inc., served
as financial advisors while AlixPartners LLC served as
restructuring consultants. Logan & Co. served as claims and
notice agent.
Freedom Communications had $757 million in assets against debts of
$1.077 billion as of July 31, 2009.
The Bankruptcy Court confirmed Freedom Communications' Plan of
Reorganization on March 9, 2010. The Plan became effective
April 30, 2010. The Plan, which was supported by the Steering
Committee of the Company's secured lenders and the Official
Committee of Unsecured Creditors, eliminated $450 million of debt
from Freedom's balance sheet.
AMERICA WEST: Delays Filing of Quarterly Report on Form 10-Q
------------------------------------------------------------
America West Resources, Inc., is in the process of preparing and
reviewing the financial and other information to be disclosed in
its quarterly report on Form 10-Q for the period ended June 30,
2011, and management does not believe the Form 10-Q can be
completed on or before the prescribed due date without
unreasonable effort or expense.
About America West
Based in Salt Lake City, Utah, America West Resources, Inc., is an
established domestic coal producer engaged in the mining of clean
and compliant (low-sulfur) coal. The majority of the Company's
coal is sold to utility companies for use in the generation of
electricity.
The Company reported a net loss of $16.14 million on
$10.07 million of total revenue for the year ended Dec. 31, 2010,
compared with a net loss of $8.70 million on $11.01 million of
total revenue during the prior year.
As reported by the TCR on April 21, 2011, MaloneBailey, LLP, in
Houston, Texas, expressed substantial doubt about America West's
ability to continue as a going concern, following the 2010
financial results. The independent auditors noted that the
Company has a working capital deficit and has incurred significant
losses.
The Company's balance sheet at March 31, 2011, showed
$28.14 million in total assets, $27.03 million in total
liabilities, and $1.11 million in total stockholders' equity.
AMERICAN POST: Delays Filing of Quarterly Report on Form 10-Q
-------------------------------------------------------------
American Post Tension, Inc., completed a major corporate
restructuring as of June 30, 2011, which included the acquisition
of a new operating subsidiary. As a result of issues related to
the integration of the financial operating results of the new
acquisitions and acquiring the necessary historic financial
information, the Company has been unable to complete the
preparation and review of its consolidated financial reports for
the quarter. The financial statements will be completed and the
required for 10-Q will be filed within five calendar days of the
original due date.
About American Post
Henderson, Nev.-based American Post Tension, Inc., provides slab-
on-grade post-tensioning products and services. In addition, the
Company also provides materials to its customers on a freight-on-
board ('FOB') basis so the buyer assumes the responsibility for
the shipment and shipping charges of the materials purchased from
the Company.
As reported by the TCR on April 7, 2011, Moss, Krusick &
Associates, LLC, in Winter Park, Florida, expressed substantial
doubt about the American Post Tension's ability to continue as a
going concern. The independent auditors noted that the Company
has suffered recurring losses and operating cash outflows.
The Company reported a net loss of $1.8 million on $7.0 million of
sales for 2010, compared with a net loss of $1.9 million on
$7.9 million of sales for 2009.
The Company's balance sheet at March 31, 2011, showed
$1.73 million in total assets, $3.50 million in total liabilities,
all current, and a $1.77 million total stockholders' deficit.
AMERICAN SCIENTIFIC: Incurs $4 Million Second Quarter Net Loss
--------------------------------------------------------------
American Scientific Resources, Incorporated, filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
10-Q reporting a net loss applicable to common shareholders of $4
million on $222,129 of net product sales for the three months
ended June 30, 2011, compared with a net loss applicable to common
shareholders of $814,298 on $137,528 of net product sales for the
same period during the prior year.
The Company also reported a net loss applicable to common
shareholders of $6.14 million on $323,376 of net product sales for
the six months ended June 30, 2011, compared with a net loss
applicable to common shareholders of $2.29 million on $313,151 of
net product sales for the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $1.38 million
in total assets, $9.28 million in total liabilities and a $7.90
million total shareholders' deficit.
At March 31, 2011, the amount of principal outstanding on notes
payable for which the Company was in default amounted to
$1.4 million. Subsequent to March 31, 2011, additional notes
payable entered into events of default raising the aggregate
indebtedness in default to $2.2 million.
As of and for the six months ended June 30, 2011, the Company had
current liabilities that exceeded current assets by $7,437,987,
has incurred a net loss of $6,142,744, and used $925,392 of cash
in operating activities. As reported in the Dec. 31, 2010,
audited financial statements, the Company had current liabilities
that exceeded current assets by $5,149,524 as of Dec. 31, 2010,
and had reported a net loss of $7,040,767 and used $896,346 of
cash in operating activities for the year ended Dec. 31, 2010. In
addition, the Company remains in default with regard to payment of
certain of its obligations. At June 30, 2011, the amount of
principal outstanding on notes payable for which the Company was
in default amounted to $2,040,377. Subsequent to June 30, 2011,
additional notes payable entered into events of default raising
the aggregate indebtedness in default to $2,275,377 as of Aug. 15,
2011.
Rosenberg Rich Baker Berman & Company, in Somerset, New Jersey,
expressed substantial doubt about American Scientific Resources'
ability to continue as a going concern, following the Company's
2010 results. The independent auditors noted that the Company has
suffered recurring losses, its current liabilities exceed its
current assets and it is in default with certain of its
obligations.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/m1xwAQ
About American Scientific
Weston, Fla.-bases American Scientific Resources, Inc., provides
healthcare and medical products. The Company develops,
manufactures and distributes healthcare and medical products
primarily to retail drug chains, retail stores specializing in
sales of products for babies and medical supply dealers. The
Company does sub-component assembly and packaging for the
Disintegrator product line. All of the Company's other products
are manufactured by third parties. The Company was comprised of
three subsidiaries: (i) Kidz-Med, Inc., (ii) HeartSmart, Inc., and
(iii) Ulster Scientific, Inc., of which only Kidz-Med was active
until Dec. 31, 2010. All subsidiaries are currently inactive.
AMERICAS ENERGY: Delays Filing of Quarterly Report on Form 10-Q
---------------------------------------------------------------
Americas Energy Company-AECo's quarterly report could not be filed
within the prescribed time period due to the Company requiring
additional time to prepare and review the quarterly report for the
period ended June 30, 2011. Such delay could not be eliminated by
the Company without unreasonable effort and expense. In
accordance with Rule 12b-25 of the Securities Exchange Act of
1934, the Company will file its Form 10-Q no later than five
calendar days following the prescribed due date.
About Americas Energy
Knoxville, Tenn.-based Americas Energy Company-AECo currently
operates surface mines in southeastern Kentucky. In March 2010,
the Company acquired Evans Coal Corp. for $7,000,000 in cash, a
$25,000,000 promissory note and a 2% overriding royalty on all
coal sales generated from the properties acquired from Evans.
Evans owns or controls by lease mineral rights and currently
operates by use of contractors, two surface mines in Bell County
and one in Knox County, Kentucky. In addition, the Company has
rights to oil properties located in Cumberland County, Kentucky
that are intended for future development.
The Company reported a net loss of $1.27 million on $6.83 million
of total revenues for the fiscal year ended March 31, 2011,
compared with a net loss of $9.72 million on $3.57 million of
total revenues for the period from July 13, 2009, through March
31, 2010.
The Company's balance sheet at March 31, 2011, showed
$25.49 million in total assets, $11.65 million in total
liabilities, and $13.84 million total stockholders' equity.
Weaver & Martin, LLC, in Kansas City, Mo., expressed substantial
doubt about Americas Energy's ability to continue as a going
concern for the second year in a row. Weaver & Martin said the
Company has suffered recurring losses and had negative cash flows
from operations that raise substantial doubt about the Company's
ability to continue as a going concern.
AMTRUST FINANCIAL: WTC Says Plan and Disclosures "Inconsistent"
---------------------------------------------------------------
BankruptcyData.com reports that Wilmington Trust Company, as
indenture trustee for AmTrust Financial's 9.50% Junior
Subordinated Deferrable Interest Debentures due 2027 filed with
the U.S. Bankruptcy Court a response to the Company's Amended
Disclosure Statement.
The response states, "Specifically, the Plan and the Disclosure
Statement remain inconsistent with the Subordinated Notes
Indenture vis-a-vis distributions to the holders of the
Subordinated Notes upon which the Trustee maintains a lien to
secure payment of its fees and expenses. Trustee has provided to
the Debtors proposed language to remedy the Plan's inconsistency;
however, to date, the Trustee's suggested language has not been
incorporated into the Plan or the Disclosure Statement."
About AmTrust Financial
AmTrust Financial Corp (PINK: AFNL) was the owner of the AmTrust
Bank. AmTrust was the seventh-largest holder of deposits in South
Florida, with $4.7 billion in deposits and 21 branches.
In November 2008, the Office of Thrift Supervision issued a cease
and desist order requiring AmTrust to improve its capital ratios.
AmTrust Financial, together with affiliates that include AmTrust
Management Inc., filed for Chapter 11 bankruptcy protection
(Bankr. N.D. Ohio Case No. 09-21323) on Nov. 30, 2009. The debtor
subsidiaries include AmFin Real Estate Investments, Inc., formerly
AmTrust Real Estate Investments, Inc. (Case No. 09-21328).
G. Christopher Meyer, Esq., Christine M. Piepont, Esq., and Sherri
L. Dahl, Esq., at Squire Sanders & Dempsey (US) LLP, in Cleveland,
Ohio; and Stephen D. Lerner, Esq., at Squire Sanders & Dempsey
(US) LLP, in Cincinnati, Ohio, serve as counsel to the Debtors.
Kurtzman Carson Consultants serves as claims and notice agent.
Attorneys at Hahn Loeser & Parks LLP serve as counsel to the
Official Committee of Unsecured Creditors. AmTrust Management
estimated $100 million to $500 million in assets and liabilities
in its Chapter 11 petition.
AmTrust Bank was not part of the Chapter 11 filings. On Dec. 4,
2009, AmTrust Bank was closed by regulators and the Federal
Deposit Insurance Corporation was named receiver. New York
Community Bank, in Westbury, New York, assumed all of the deposits
of AmTrust Bank pursuant to a deal with the FDIC.
ANDRONICO'S COMMUNITY: In Talks to Sell to Investors via Ch. 11
---------------------------------------------------------------
One of the Bay Area's best known family-owned specialty
supermarkets is in discussions with a private investor group to
preserve jobs for 400 employees and to ensure its historic markets
continue to serve future generations of shoppers.
Andronico's Community Markets founded in 1929 on Berkeley's Solano
Avenue, is in negotiations with Renovo Capital to obtain Debtor-
in-Possession financing and sell the company to the investor
group, as part of the Chapter 11 filing in the Oakland division of
the United States Bankruptcy Court for the Northern District of
California.
"This is a bittersweet moment in our history," said Bill
Andronico, Andronico's CEO and a member of the third generation of
the family that owns the markets. "We have struggled mightily to
keep going, but the combination of the economic downturn and a
broken balance sheet was too heavy a burden. The good news is
that this deal preserves our markets and keeps our employees
working."
The 82-year-old Andronico's markets have struggled in recent years
after an aggressive expansion program in which it took on
significant debt to develop stores in Danville, Walnut Creek and
Emeryville in the late 1990s and early 2000s. These stores are
now closed, but Andronico said he was unable to get its bank
lenders to restructure their claims and the remaining stores were
saddled with too heavy a debt to continue under family ownership.
Currently, Andronico's operates in seven locations: four stores in
Berkeley and markets in San Francisco, Los Altos and San Anselmo.
Founded by Greek immigrant Frank Andronico in 1929, the family
began with a vision of providing the best quality products with
the excellent customer service of a neighborhood grocer. In fact,
Andronico even let his neighborhood customers name the store --
"Park and Shop" -- which remained as the name of the markets until
1986.
Today, the Andronico's name is synonymous with freshness,
extensive and unique product offerings, and friendly, helpful
customer service. Its continued innovations with specialty
products and presentation have made the markets stand out in a
highly competitive business.
During both good and challenging economic times, these tenets have
guided the Company's strategic decision making. In 2010
Andronico's encountered a daunting retail environment, and
replaced nearly all of its executive management team with a core
group of experienced industry veterans from Whole Foods Market and
Safeway. The new team began the work to stabilize the business but
the lack of resources did not allow for a full recovery.
ANGEL ACQUISITION: Delays Filing of Quarterly Report
----------------------------------------------------
BioGeron Inc. informed the U.S. Securities and Exchange Commission
that it will be late in filing its quarterly report on Form 10-Q
for the period ended June 30, 2011. The Company said it did not
provide its auditors with all of the information necessary for the
auditors to complete the review of the financial statements prior
to the date on which the Form 10-Q was required to be filed.
About Angel Acquisition
Carson City, Nev.-based Angel Acquisition Corp., now known as
BioGeron, Inc., was incorporated under the laws of the state of
Nevada on March 10, 1999, under the name Palomar Enterprises, Inc.
On February 5, 2008, the Company changed its name to Angel
Acquisition Corp. to properly reflect the change in business
direction. The Company assists private companies in the process
of going public as well as being a licensed mortgage broker and
developer.
As reported by the TCR on April 13, 2011, Gruber & Company, LLC,
Lake Saint Louis, Missouri, expressed substantial doubt about the
Company's ability to continue as a going concern, following the
2010 financial results. The independent auditor noted that the
Company has been unable to generate sufficient operating revenues
and has incurred operating losses.
The Company's balance sheet at March 31, 2011, showed $617,760 in
total assets, $1.31 million in total liabilities and a $694,727
total stockholders' deficit.
APPLIED DNA: Number of Directors Increased to Seven
---------------------------------------------------
The Board of Directors of Applied DNA Sciences, Inc., increased
the size of the Board from three directors to seven directors and
appointed John Bitzer III, Gerald Catenacci, Karol Gray and
Charles Ryan to fill the newly-created Board seats.
Mr. Bitzer, III, is President & Chief Executive Officer of ABARTA,
Inc., a private, fourth-generation family holding-company with
operations in the soft drink beverages, newspaper publishing, oil
and gas exploration and development, and frozen food industries.
In 1985, Mr. Bitzer began his career in sales for the Cleveland
Coca-Cola Bottling Company. He has been Publisher of Atlantic
City Magazine in Atlantic City, N.J. In 1994 he founded the
ABARTA Media Group and held the position of Group Publisher. In
1997 he was named President & Chief Operating Officer of ABARTA
and has been President & Chief Executive Officer since 1999. He
is also a director of the Institute for Entrepreneurial Excellence
at the University of Pittsburgh. Mr. Bitzer has a degree from the
University of Southern California and an MBA from the University
of Michigan.
ABARTA participated as an investor in the Company's private
placement of the Company's common stock, par value $0.001 per
share on July 15, 2011, in which it acquired 21,052,632 shares of
Common Stock for a purchase price of $1,000,000. In connection
with the Private Placement, the Company agreed to use best efforts
to nominate Mr. Bitzer to the Board and elect him as director
within 30 days of the closing of the Private Placement.
On Nov. 30, 2010, the Company issued and sold a $750,000 principal
amount senior secured convertible note bearing interest at a rate
of 10% per annum to ABARTA. On Jan. 7, 2010, the Company issued
and sold a $750,000 principal amount senior secured convertible
note bearing interest at a rate of 10% per annum to ABARTA.
Mr. Catenacci is the Founder and President of Neustrada Capital,
LLC, a private investment fund. Mr. Catennaci obtained a Bachelor
of Science in Civil Engineering from McMaster University in 1985,
and has spent his career in equity management. Mr. Catenacci was
the Founding Partner and Managing Director Principled Capital
Management, a hedge fund that operated from New York City from
1998 to 2010.
Neustrada participated as an investor in the Private Placement and
acquired 42,105,263 shares of Common Stock for a purchase price of
$2,000,000. In connection with the Private Placement, the Company
agreed to use best efforts to nominate Mr. Catenacci to the Board
and elect him as director within 30 days of the closing of the
Private Placement.
Ms. Gray is Vice President for Finance & Administration and the
Chief Financial Officer at the University at Stony Brook. She is
active on several committees, including the Brookhaven National
Laboratory Audit Committee, the Presidential Budget Working Group,
and the Investment Subcommittee of the Research Foundation of the
State University of New York, and is a member of the Executive
Committee of the State University of New York Business and
Officers Association. Ms. Gray is a Certified Public Accountant
with a Bachelor in Business Administration from Hofstra
University.
Dr. Ryan is the Senior Vice President, and Chief Intellectual
Property Counsel at Forest Laboratories, a developer of branded
and generic drugs, where he has been employed since 2003. Dr.
Ryan earned a doctorate in oral biology and pathology from SUNY
Stony Brook and a law degree from Western New England College
School of Law.
The New Directors will be eligible to receive awards under the
Company's 2005 Incentive Stock Plan in the event the Company
decides to grant those awards.
About Applied DNA
Stony Brook, N.Y.-based Applied DNA Sciences, Inc., is principally
devoted to developing DNA embedded biotechnology security
solutions in the United States.
As reported in the Troubled Company Reporter on Dec. 21, 2010,
RBSM LLP, in New York, expressed substantial doubt about Applied
DNA Sciences' ability to continue as a going concern, after
auditing the Company's financial statements for fiscal year ended
Sept. 30, 2010. The independent auditors noted that the Company
has suffered recurring losses and does not have significant cash
or other material assets, nor does it have an established source
of revenues sufficient to cover its operations.
The Company reported a net loss of $7.91 million on $519,844 of
sales for fiscal 2010, compared with net income of $3.94 million
on $295,162 of sales for fiscal 2009.
The Company's balance sheet at June 30, 2011, showed $893,586 in
total assets, $4.86 million in total liabilities, all current, and
a $3.97 million total deficiency in stockholders' equity.
APPLIED MINERALS: Incurs $1.97 Million Second Quarter Net Loss
--------------------------------------------------------------
Applied Minerals, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting a
net loss of $1.97 million on $18,699 of revenue for the three
months ended June 30, 2011, compared with a net loss attributable
to Applied Minerals, Inc., of $1.16 million on $0 of revenue for
the same period during the prior year.
The Company also reported a net loss of $3.67 million on $63,167
of revenue for the six months ended June 30, 2011, compared with a
net loss attributable to Applied Minerals, Inc., of $2.01 million
on $0 of revenue for the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $6.08 million
in total assets, $4.24 million in total liabilities, and
$1.83 million in total stockholders' equity.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/auVKbA
About Applied Minerals
New York City-based Applied Minerals, Inc. (OTC BB: AMNL) is a
leading global producer of halloysite clay used in the development
of advanced polymer, catalytic, environmental remediation, and
controlled release applications. The Company operates the Dragon
Mine located in Juab County, Utah, the only commercial source of
halloysite clay in the western hemisphere. Halloysite is an
aluminosilicate clay that forms naturally occurring nanotubes.
The Company reported a net loss of $4.77 million for 2010,
compared with a net loss of $6.77 million for 2009. The Dragon
Mine property has yet to produce any significant revenue and, as
such, the Company generated no gross profit for the twelve months
ended Dec. 31, 2010, and 2009.
As reported by the TCR on April 28, 2011, PMB Helin Donovan, LLP,
in Spokane, Washington, after auditing the Company's financial
statements for the year ended Dec. 31, 2010, expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company has an accumulated
deficit from operations and a net deficiency in working capital.
Applied Minerals in its Form 10-Q acknowledged that it has
incurred material recurring losses from operations. At March 31,
2011, the Company had aggregate accumulated deficits prior to and
during the exploration stage of $33,239,435, in addition to
limited cash and unprofitable operations. For the period ended
March 31, 2011 and 2010, the Company sustained net losses before
discontinued operations of $1,343,240 and $1,084,299,
respectively. These factors indicate that the Company may be
unable to continue as a going concern for a reasonable period of
time, according to the quarterly report.
AQUILEX HOLDINGS: Cut by S&P to 'CCC+' on "Thin Headroom"
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Aquilex Holdings LLC to 'CCC+' from 'B'. At the same
time, Standard & Poor's lowered all of the issue-level ratings by
two notches. The recovery ratings remain unchanged, at '1' on the
senior secured credit facilities and '5' on the senior unsecured
notes. The outlook is negative, reflecting the potential for a
downgrade if Aquilex is unable to negotiate adequate covenant
relief for the upcoming quarterly periods and improve operating
performance.
"Aquilex's thin margin of headroom under its financial covenants
at the end of the second quarter could trigger a financial
covenant violation in the second half of 2011," said Standard &
Poor's credit analyst James Siahaan. "Although Aquilex's lenders
amended the financial covenants to provide additional headroom as
recently as February 2011, headroom still remains very thin and
has not improved as much as we had expected."
"The company's ability to maintain sufficient liquidity is key to
the rating," Mr. Siahaan added. The company drew down the
remaining amounts on its $50 million revolving credit facility
earlier this month and no longer has any availability under that
facility. As of Aug. 15, 2011, the company had $35 million of
cash; if it can negotiate covenant relief, this amount could
afford the company enough liquidity to meet anticipated cash needs
for the remainder of 2011.
However, given the uncertain macroeconomic environment, Standard &
Poor's does not expect Aquilex's operating performance and credit
metrics to improve substantially during this period.
The ratings on Aquilex Holdings reflect the company's high debt
leverage, narrow scope of operations in a fragmented market,
variability of operating results, moderately concentrated customer
base, exposure to cyclicality in certain end-markets, and sizable
working capital usage at times. Partially offsetting these
weaknesses are Aquilex's good market positions in its niche
markets, its largely variable cost structure, and its favorable
debt maturity schedule.
Aquilex Holdings is the holding company of energy industry
maintenance services provider Aquilex Corp. Operations are
narrowly focused on maintenance, repair, and cleaning services in
energy sector end markets. Services offered include welding,
overlays, hydroblasting, industrial vacuuming, and chemical and
tank cleaning. Although Aquilex maintains good market positions in
its niche segments, the overall market size is modest at
slightly less than $5 billion -- Aquilex generated revenues of
approximately $475 million for the 12 months through June 30, 2011
-- and highly fragmented; competition ranges from a handful of
large, national operators to smaller, regional players. Although
the company's sales have started to rebound, profit margins have
eroded in recent quarters.
ASARCO LLC: Stutzman Bromberg Granted $21-Mil. in Fees
------------------------------------------------------
Bankruptcy Judge Richard S. Schmidt granted $905,433.76 in
expenses and $19,317,274.78 in fees to Stutzman, Bromberg,
Esserman & Plifka, P.C., as counsel for the Official Committee of
Asbestos Claimants in ASARCO LLC and its subsidiaries' Chapter 11
cases from April 11, 2005, through Jan. 31, 2010.
The Court also approved the payment of another $353,862 for the
firm's services rendered from Feb. 1, 2010, through May 31, 2010,
plus an additional $8,721.50 for actual and necessary expenses
during this period. These additional costs were incurred as part
of the firm's defense of its fee application.
The Court also granted the firm $293,761.51 for actual and
necessary professional services rendered from June 1, 2010,
through June 18, 2010, plus an additional $12,539.10 for expenses
incurred during the period; and an additional $90,000 for actual
and necessary services and expenses incurred from June 19, 2010,
through and including closing arguments on July 13, 2010, with
respect to the defense of the fee application.
The Court also granted the firm a $451,131 bonus for its work.
A copy of Judge Schmidt's July 20, 2011 Memorandum Opinion is
available at http://is.gd/nVB2B2from Leagle.com.
About Asarco LLC
Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.
ASARCO LLC filed for Chapter 11 protection (Bankr. S.D. Tex. Case
No. 05-21207) on Aug. 9, 2005. Attorneys at Baker Botts
L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented
the Debtor in its restructuring efforts.
On Dec. 9, 2009, Asarco Incorporated and Americas Mining
Corporation's Seventh Amended Plan of Reorganization for the
Debtors became effective and the ASARCO Asbestos Personal Injury
Settlement Trust was created and funded with nearly $1 billion in
assets, including more than $650 million in cash plus a $280
million secured note from Reorganized ASARCO. The Plan, which was
confirmed both by the bankruptcy and district courts, reintegrated
ASARCO LLC back to parent Grupo Mexico concluding the four-year
Chapter 11 proceeding.
ASARCO LLC: Court Awards Fees, Lauds Baker Botts' Performance
-------------------------------------------------------------
The Honorable Richard S. Schmidt, U.S. Bankruptcy Judge for the
Southern District of Texas, Corpus Christi Division, has entered
an order approving the fees previously paid, and awarding
additional fees, in recognition of Baker Botts' role as chapter 11
counsel to ASARCO LLC.
Judge Schmidt wrote in his supporting opinion that the ASARCO
bankruptcy was "truly a rags-to-riches story" and "probably the
most successful Chapter 11 of any magnitude in the history of the
[Bankruptcy] Code." Creditors in the ASARCO bankruptcy received
more than $3.5 billion, which represented payment in full of all
claims, plus interest and attorney's fees.
Judge Schmidt wrote that: "Baker Botts lawyers conducted
themselves with the utmost professionalism and commitment,
addressing an array of challenging legal issues with
sophistication, creativity, and skill. . . . Few firms in the
country have the breadth and depth of experience in different
disciplines necessary to handle these cases with the skill
demonstrated by Baker Botts" and "no other firm could have
achieved the results in these cases at the rates charged by Baker
Botts" during the fee application period.
Originally organized in 1899, ASARCO initially held diverse
smelting, refining and mining operations throughout the United
States and now operates as a Tucson-based fully integrated copper
mining, smelting and refining company. Judge Schmidt wrote that
when ASARCO filed bankruptcy in August 2005, "'the [C]ompany had
essentially run out of cash and was saddled with massive
environmental liability, financial debt, potential asbestos-
related liability, falling copper prices, and a striking
workforce.' Creditors were expected to receive cents on the
dollar." Ultimately, Americas Mining Corporation (AMC), a
subsidiary of Mexican mining giant Grupo Mexico, retained the
ownership of its wholly-owned subsidiary, ASARCO, in the
bankruptcy by funding a plan that resulted in payment in full to
creditors.
"That ASARCO resolved all of these issues, cleansed its balance
sheet of billions of dollars of debt, and confirmed a chapter 11
plan that paid creditors in full is an exceptional result that no
one could have predicted at the time ASARCO filed bankruptcy in
2005," said Jack Kinzie, the lead bankruptcy lawyer in the case
and the head of Baker Botts' bankruptcy and restructuring group.
Judge Schmidt wrote that the "pivotal event" in the bankruptcy was
Baker Botts' successful prosecution of a multi-billion-dollar
fraudulent transfer lawsuit (the SCC Litigation) against AMC, the
parent of ASARCO. "Through its creativity, tenacity, and legal
talent, Baker Botts was able quickly and efficiently to prosecute
the [l]itigation, prevail at trial, and obtain and secure a
judgment . . . valued in excess of $6 billion"-- likely the
largest fraudulent transfer judgment in United States history.
Judge Schmidt found that the "results obtained by Baker Botts in
the SCC Litigation are rare and extraordinary."
"The fraudulent transfer litigation was particularly challenging
and unique," said Irv Terrell, the lead Baker Botts trial lawyer
in the case, "not only because of its fast pace, which was
essential to accommodate the needs of the restructuring
proceedings in Corpus Christi, but also because, as Judge Schmidt
noted in his opinion, we had to decipher millions of pages of
documents and use those documents to tell a compelling story out
of the mouths of adverse witnesses in the courtroom."
Judge Schmidt also recognized Baker Botts' "outstanding
achievements" in other areas of the case, which has been described
by the United States Department of Justice, Environmental and
Natural Resource Division (DOJ) as "the largest environmental
bankruptcy in U.S. history." Regarding ASARCO's environmental
liabilities, for example, Judge Schmidt wrote that "Baker Botts
managed to craft a global environmental settlement that resolved
billions of dollars of environmental liabilities. And the Firm
did it in a demanding, compressed time frame." The environmental
settlement will help fund clean-up efforts at over 80 sites in 19
different states (Alabama, Arizona, Arkansas, California,
Colorado, Idaho, Illinois, Indiana, Kansas, Missouri, Montana,
Nebraska, New Jersey, New Mexico, Ohio, Oklahoma, Texas, Utah, and
Washington).
Judge Schmidt also found that Baker Botts "conceived, recommended,
and commenced an innovative auction of the multi-billion-dollar
judgment against AMC that, under the Debtors' unique plan
structure, exposed [Grupo Mexico] to the possibility that it could
lose the Company and have to pay the judgment in full."
"ASARCO was an extraordinary case," said Kinzie. "I am thankful
and proud of many things about it, but I think I am proudest of
the positive impact the successful reorganization had on ASARCO
stakeholders. Nearly 2,000 union and non-union workers depend on
ASARCO for their livelihood. In some Arizona towns, such as
Hayden, ASARCO is the primary source of tax revenues to keep
schools and other public service functions going. Federal and
state regulators received funding for many of the largest, oldest
and most complex Superfund sites in the country. That ASARCO, a
company that has operated for over 112 years, exited chapter 11
financially sound and cleansed of billions of dollars of
liabilities proves that chapter 11 works."
In his order and supporting opinion, Judge Schmidt awarded Baker
Botts approximately: (a) $113 million in fees and $6 million in
expenses incurred during the 52 months of the ASARCO bankruptcy,
virtually all of which have previously been paid; (b) $5 million
in fees and $450,000 in expenses incurred in preparing and
defending the firm's final fee application after confirmation of
the bankruptcy plan; and (c) an additional $4 million in fees
because he found "Baker Botts' services were instrumental in
producing the exceptional results that were unanticipated at case
commencement."
About Baker Botts
Baker Botts -- http://www.bakerbotts.com/--
is an international law firm with over 725 lawyers and a network
of 13 offices around the globe.
About Asarco LLC
Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.
ASARCO LLC filed for Chapter 11 protection (Bankr. S.D. Tex. Case
No. 05-21207) on Aug. 9, 2005. Attorneys at Baker Botts
L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented
the Debtor in its restructuring efforts.
On Dec. 9, 2009, Grupo Mexico, S.A.B., consummated the Chapter
11 plan that it sponsored for Asarco LLC. The Plan, which was
confirmed both by the bankruptcy and district courts, reintegrated
Asarco LLC back to parent Grupo Mexico concluding the four-year
Chapter 11 proceeding.
ASTORIA MECHANICAL: Case Summary & 45 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Astoria Mechanical Corporation
20-36 Steinway Street
Astoria, NY 11105
Bankruptcy Case No.: 11-47177
Chapter 11 Petition Date: August 19, 2011
Court: U.S. Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Elizabeth S. Stong
Debtor's Counsel: Bruce Weiner, Esq.
ROSENBERG MUSSO & WEINER LLP
26 Court Street, Suite 2211
Brooklyn, NY 11242
Tel: (718) 855-6840
Fax: (718) 625-1966
E-mail: rmwlaw@att.net
Scheduled Assets: $2,302,100
Scheduled Debts: $1,684,549
A list of the Company's 45 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/nyeb11-47177.pdf
The petition was signed by William Rudden, president.
AXION INTERNATIONAL: Incurs $2.9 Million Second Quarter Net Loss
----------------------------------------------------------------
Axion International Holdings, Inc., filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q
reporting a net loss of $2.94 million on $1.29 million of revenue
for the three months ended June 30, 2011, compared with a net loss
of $2.21 million on $445,939 of revenue for the same period during
the prior year.
The Company also reported a net loss of $4.87 million on $1.48
million of revenue for the six months ended June 30, 2011,
compared with a net loss of $3.89 million on $848,632 of revenue
for the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $6.64 million
in total assets, $2.01 million in total liabilities, $6.67 million
in 10% Convertible preferred stock, and a $2.04 million total
stockholders' deficit.
"From Axion's inception through the second quarter of 2011 we laid
the necessary groundwork to effectively monetize our innovative
structural building materials designed from 100% recycled
plastic," said Steve Silverman, Axion's president and chief
executive officer. "Prior to 2011 Axion, along with Rutgers, did
a fantastic job improving the technology over time and across
multiple applications. Over the last six months the Company has
been diligent in constructing a strong foundation for future
growth by improving our financial system, adding key management
personnel, working with strategic manufacturing partners to expand
our capacity, reducing material costs, and significantly ramping
up our business on many fronts."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/I75vXw
About Axion International
New Providence, N.J.-based Axion International Holdings, Inc. (OTC
BB: AXIH) - http://www.axionintl.com/-- is the exclusive licensee
of patented and patent-pending technologies developed for the
production of structural plastic products such as railroad
crossties, pilings, I-beams, T-Beams, and various size boards
including a tongue and groove design that are utilized in multiple
engineered design solutions such as rail track, rail and tank
bridges (heavy load), pedestrian/park and recreation bridges,
marinas, boardwalks and bulk heading to name a few.
As reported by the TCR on May 6, 2011, RBSM LLP, in New York,
expressed substantial doubt about Axion International's ability to
continue as a going concern, following its audit of the Company's
balance sheet as of Dec. 31, 2010, and the related consolidated
statements of operations, stockholders' equity (deficit), and cash
flows for the three month period ended Dec. 31, 2010. The
independent auditors noted that the Company has incurred
significant operating losses in the current year and also in the
past.
BARBETTA LLC: Can Access Creditors' Cash Collateral Until Sept. 30
------------------------------------------------------------------
The Hon. J. Rich Leonard of the U.S. Bankruptcy Court for the
Eastern District of North Carolina authorized, in a third interim
order, Barbetta, LLC to use the cash collateral of the creditors
until Sept. 30, 2011.
The Court will consider the Debtor's access to the cash collateral
beyond the third interim period, at a hearing on Sept. 28, at
10:00 a.m.
Each creditor asserts that rental income and other cash proceeds
generated by the Debtor's properties securing the claims of the
creditor constitutes the cash collateral of the creditor.
The Debtor will use the cash collateral to fund the operating
expenses of owning, operating, managing and maintaining the
Debtor's properties.
The Court also ordered that the Debtor (a) will maintain at least
one Debtor-in-Possession bank account for each creditor, into
which they will deposit all cash, checks, and other cash items
generated by the Debtor's properties securing the claims of the
creditor, and (b) will segregate and hold separate the cash
collateral of each creditor in each separate DIP account
maintained for each creditor.
The Debtor's tenants are directed to pay all future rent payments
directly to the Debtor.
About Barbetta, LLC
Based in Selma, North Carolina, Barbetta, LLC -- formerly doing
business as Hester 1996 Family Limited Partnership, South Pollock
Street Development & Sign Co., LLC, Hester 5, LLC, and Hester 8,
LLC -- filed for Chapter 11 bankruptcy (Bankr. E.D.N.C. Case No.
11-04370) on June 6, 2011.
Judge J. Rich Leonard presides over the case. Trawick H. Stubbs,
Jr. and Stubbs & Perdue, P.A., represents the Debtor in its
restructuring efforts. The Debtor tapped Charles E. Hester, as
member-manager of the Debtor, and the accounting firm of David J.
Bradley, CPA, as accountants. In its schedules filed together
with the petition, the Debtor disclosed $24,889,321 in total
assets and $12,855,596 in total liabilities. The petition was
signed by Charles E. Hester, member manager.
Charles and Barbetta Hester also filed a separate Chapter 11
petition (Bankr. E.D.N.C. Case No. 11-04375) on June 6, 2011.
BERNARD L. MADOFF: March 5 Jury Trial on $1-Bil. Claim vs. Wilpon
-----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that New York Mets Owner Fred Wilpon needs to decide in
the next month whether to settle the lawsuit by the trustee
liquidating Bernard L. Madoff Investment Securities Inc. or face a
potential judgment of more than $1 billion at a two-week jury
trial beginning March 5. Mr. Wilpon's quandary resulted from an
Aug. 19 hearing when he asked U.S. District Judge Jed Rakoff to
dismiss the entire lawsuit by the Madoff trustee. While not
immediately making a ruling, Judge Rakoff's decision to schedule a
trial beginning March 5 wasn't a hopeful sign for Mr. Wilpon. By
the end of the year, Mr. Wilpon and the trustee must finish
scouring each other's files for evidence.
Mr. Rochelle notes that losing the trial might require selling the
entire team where a settlement now may enable Mr. Wilpon to retain
some of the Mets. Judge Rakoff said he would issue a formal
ruling by the end of September on whether to dismiss the lawsuit.
The Trustee seeks $300 million from Mr. Wilpon, his friends,
family and associates, for fictitious profits, according to the
lawsuit. He is after another $700 million of principal the Wilpon
group withdrew from the Madoff firm before the fraud surfaced.
The Trustee contends Mr. Wilpon has essentially no defense to
recovery of the $300 million in false profits, which represented
money stolen from other investors. The Trustee argues the Wilpon
group must pay back the $700 million if they didn't receive the
funds in good faith.
According to Mr. Rochelle, if Mr. Wilpon loses at trial, he faces
the possibility of a judgment for $1 billion plus interest that
might amount to tens or hundreds of millions more. The Trustee
wouldn't likely take less than $300 million in a settlement.
The Wilpon suit in district court is Picard v. Katz,
11-03605, U.S. District Court, Southern District New York.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of
New York granted the application of the Securities Investor
Protection Corporation for a decree adjudicating that the
customers of BLMIS are in need of the protection afforded by the
Securities Investor Protection Act of 1970. The District Court's
Protective Order (i) appointed Irving H. Picard, Esq., as trustee
for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP
as his counsel, and (iii) removed the SIPA Liquidation proceeding
to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789)
(Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims
agent.
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
US$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
As of July 15, 2011, a total of US$6.88 billion in claims by
investors has been allowed, with US$794.9 million to be paid by
the Securities Investor Protection Corp. Investors are expected
to receive additional distributions from money recovered by Mr.
Picard from lawsuits or settlements.
BERNARD L. MADOFF: Trustee Sues Lion Global, 6 Firms for $172MM
---------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the liquidator of Bernard L. Madoff's firm sued Lion
Global Investors Ltd. and at least six other companies to recover
at least $172.8 million they allegedly received from investments
made with the con man by Fairfield Sentry Ltd.
Irving Picard, the trustee overseeing the liquidation of Bernard
L. Madoff Investment Securities LLC, claims Fairfield, a so-called
feeder fund to the Madoff company, transferred "customer property"
to Lion Global, a Singapore-based asset management company;
Quilvest Finance Ltd., a unit of Luxembourg-based investor
Quilvest SA; and five other entities, according to filings in U.S.
Bankruptcy Court in Manhattan.
According to the report, seven complaints filed Aug. 18 seek at
least $172.8 million for investors in Madoff's Ponzi scheme. Mr.
Picard demanded $11.5 million from First Gulf Bank PJSC, the
United Arab Emirates lender owned by Abu Dhabi's ruling family.
Mr. Picard said he has the authority to take back the transfers as
he works to recover money for Madoff customers.
Mr. Picard, after targeting and sometimes settling with the
largest feeder funds, is pursuing comparatively small amounts from
investors who redeemed money from the feeders before Madoff's 2008
arrest. The trustee's settlement with Walter Noel's Fairfield
Sentry was approved in court in June.
The trustee last month lost the right to claim almost $9 billion
in damages from HSBC Holdings Plc and feeder funds after a ruling
by U.S. District Judge Jed Rakoff, who said Mr. Picard was free to
pursue bankruptcy claims.
Mr. Picard is seeking at least $50.6 million from Lion Global,
according to the filing. Lion Global's lawyers are looking into
the lawsuit, Mae Wong, a spokeswoman for the Singapore firm, said
Aug. 19.
The case is Picard v. Lion Global, 11-2540, U.S. Bankruptcy
Court, Southern District of New York (Manhattan).
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of
New York granted the application of the Securities Investor
Protection Corporation for a decree adjudicating that the
customers of BLMIS are in need of the protection afforded by the
Securities Investor Protection Act of 1970. The District Court's
Protective Order (i) appointed Irving H. Picard, Esq., as trustee
for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP
as his counsel, and (iii) removed the SIPA Liquidation proceeding
to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789)
(Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims
agent.
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
US$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
As of July 15, 2011, a total of US$6.88 billion in claims by
investors has been allowed, with US$794.9 million to be paid by
the Securities Investor Protection Corp. Investors are expected
to receive additional distributions from money recovered by Mr.
Picard from lawsuits or settlements.
BERNARD L. MADOFF: Activists Seek to File Amicus in JPMorgan Case
-----------------------------------------------------------------
Lance Duroni at Bankruptcy Law360 reports that an activist group
representing small investors victimized by Bernard L. Madoff's
notorious Ponzi scheme asked a New York federal judge on Thursday
for permission to file an amicus curiae brief on the issue of red
flags in the Madoff bankruptcy trustee's case against JPMorgan
Chase & Co.
With the brief, the Network for Investor Action and Protection --
whose 1,200 members are largely Madoff victims -- hopes to bolster
trustee Irving H. Picard's case that large financial institutions
that dealt with Madoff should be held liable, according to Law360.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of
New York granted the application of the Securities Investor
Protection Corporation for a decree adjudicating that the
customers of BLMIS are in need of the protection afforded by the
Securities Investor Protection Act of 1970. The District Court's
Protective Order (i) appointed Irving H. Picard, Esq., as trustee
for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP
as his counsel, and (iii) removed the SIPA Liquidation proceeding
to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789)
(Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims
agent.
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
US$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
As of July 15, 2011, a total of US$6.88 billion in claims by
investors has been allowed, with US$794.9 million to be paid by
the Securities Investor Protection Corp. Investors are expected
to receive additional distributions from money recovered by Mr.
Picard from lawsuits or settlements.
BERNARD L. MADOFF: Fund, Banks Fight Over $3.1-Bil. in Clawbacks
----------------------------------------------------------------
Eric Hornbeck at Bankruptcy Law360 reports that attorneys for
Bernard L. Madoff's largest feeder fund and a host of financial
institutions sparred Friday before a New York federal judge over
$3.11 billion worth of clawback suits that both sides said could
"turn Chapter 15 on its head."
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of
New York granted the application of the Securities Investor
Protection Corporation for a decree adjudicating that the
customers of BLMIS are in need of the protection afforded by the
Securities Investor Protection Act of 1970. The District Court's
Protective Order (i) appointed Irving H. Picard, Esq., as trustee
for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP
as his counsel, and (iii) removed the SIPA Liquidation proceeding
to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789)
(Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims
agent.
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
US$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
As of July 15, 2011, a total of US$6.88 billion in claims by
investors has been allowed, with US$794.9 million to be paid by
the Securities Investor Protection Corp. Investors are expected
to receive additional distributions from money recovered by Mr.
Picard from lawsuits or settlements.
BIGLER LP: Court Rules on Priority of 3 Creditors' Liens
--------------------------------------------------------
Amegy Bank National Association, v. Brazos M&E, Ltd., et al., Adv.
Proc. No. 10-03304 (Bankr. S.D. Tex.), concerns three creditors --
plaintiff Amegy and two defendants, Shaw Maintenance, Inc., and
Halgo Power, Inc. -- all of whom were active participants in the
main Chapter 11 case of Bigler LP and are bound by the plan which
was confirmed by the Bankruptcy Court. The dispute pertains to
the priority of the three creditors' liens. Shaw and Halgo
request that the Court enter a judgment declaring that they
supplied "removables" to the debtors' high purity isobutylene
facility -- the HPIB Facility -- and, therefore, their liens have
priority over Amegy's liens.
Amegy, which provided substantial financing to the debtors,
contends that the goods which Halgo and Shaw supplied are not
"removables" and, therefore, Amegy's liens are superior to any
liens held by Halgo and Shaw. Amegy's counsel implied that the
Court should, as one factor in its decision-making process,
consider the fact that Halgo did in fact receive some payment for
the goods and services it provided under the Contract with Bigler;
and that, therefore, the remaining amount that Halgo is attempting
to collect in this lawsuit represents a 100% profit to which the
equities dictate Halgo should not receive. According to Amegy's
counsel, it is inequitable for Halgo to receive its complete
profit under the Contract because Amegy lent millions of dollars
to Bigler and has taken a huge hit insofar as the deficiency owed
by Bigler to Amegy is millions of dollars more than the aggregate
amount still owed to Halgo and Shaw. In the wake of the huge loss
suffered by Amegy, Halgo and Shaw should not be allowed to recover
any of their profit.
Trial took place from June 29 to July 1, 2011, and on July 8,
2011.
In a Aug. 19, 2011 Memorandum Opinion, Judge Bohm held that
whether Halgo's lien and Shaw's lien trump Amegy's liens must be
determined through proper application of the extensive and
specific laws of the State of Texas on mechanics' and
materialmen's liens and removables, not on whether any party will
wind up making a profit if that party prevails. According to
Judge Bohm, Halgo's materialman's lien on two boilers owned by
Bigler is superior to Amegy's liens, but that Shaw's mechanic's
lien on the piping system is not.
"To the extent that this conclusion generates a profit for Halgo,
so be it," Judge Bohm said. "That is, after all, the ultimate
objective of any for-profit corporation in this country's
economy."
A copy of Judge Bohm's decision is available at
http://is.gd/Dk7b5Ffrom Leagle.com.
Amegy extended revolving credit loans and term loans to Bigler and
issued letters of credit for the benefit of the Debtors. The
Debtors granted to Amegy first priority liens on, and security
interests in, substantially all of the Debtors' assets, including
the real property and improvements located at 1500 North South
Street, Pasadena, Texas.
Shaw is a pipe fabrication and installation company that
fabricated and installed a process piping system at the HPEB
Facility. Halgo furnished boilers and related equipment to the
HPIB Facility.
Halgo filed a secured proof of claim for $544,918.68 for two
boiler units it had supplied. Shaw filed a secured proof of claim
for $1,447,557.09 for, among other work and materials provided,
the process piping system that it supplied and installed at the
HPIB Facility.
Amegy filed a secured proof of claim for $68,483,026. In June
2010, Amegy purchased the HPIB Facility in a court-supervised
auction. Amegy credit bid $38,000,000. Amegy assigned its
winning bid for the HPIB Facility to Enterprise Products. The
sale to Enterprise closed on Nov. 18, 2010, and Enterprise now
operates the HPIB Facility. Amegy's claim was not fully satisfied
from the proceeds of the sale of the HPIB Facility; after the
sale, Amegy was still owed roughly $30,000,000.
About Bigler LP
Bigler LP; Bigler Land, LLC; Bigler Petrochemical, LP; Bigler
Plant Services, LP; Bigler Terminals, LP, owned and operated a
petrochemical plant in Pasadena, Texas. Each filed a voluntary
Chapter 11 petition (Bankr. S.D. Tex. Case Nos. 09-38188 to 09-
38190, 09-38192, 09-38194) on Oct. 30, 2009. King & Spalding LLP
served as the Debtor's bankruptcy counsel. The Debtor estimated
assets of $233 million against debt totaling $151 million.
Liabilities include $67 million owed to secured lender Amegy Bank
NA, which has a lien on all assets. Secured lender Amegy Bank is
represented by Porter & Hedges LLP.
The Debtors sold their assets on a piecemeal basis in an auction
in June 2010.
On Nov. 11, 2010, the Debtors filed their Fourth Amended Joint
Plan of Liquidation. On Nov. 18, 2010, the Plan was confirmed,
and on Nov. 29, 2010, the Plan became effective.
BONDS.COM GROUP: Delays Filing of Quarterly Report on Form 10-Q
---------------------------------------------------------------
Bonds.com Group, Inc., is in the process of reviewing certain
significant transactions that relate to the capital raise in June
2011. The Company's Form 10-Q is expected to be filed not later
than the fifth calendar day following the prescribed due date.
About Bonds.com Group
Based in Boca Raton, Florida, Bonds.com Group, Inc. (OTC BB: BDCG)
-- http://www.bonds.com/-- through its subsidiary Bonds.com,
Inc., serves institutional fixed income investors by providing a
comprehensive zero subscription fee online trading platform. The
Company designed the BondStation and BondStationPro platforms to
provide liquidity and competitive pricing to the fragmented Over-
The-Counter Fixed Income marketplace.
The Company differentiates itself by offering through Bonds.com,
Inc. an inventory of more than 35,000 fixed income securities from
more than 175 competing sources. Asset classes currently offered
on BondStation and BondStationPro, the Company's fixed income
trading platforms, include municipal bonds, corporate bonds,
agency bonds, certificates of deposit, emerging market debt,
structured products and U.S. Treasuries.
The Company reported a net loss applicable to common stockholders
of $12.51 million on $2.71 million of revenue for the year ended
Dec. 31, 2010, compared with a net loss applicable to common
stockholders of $4.69 million on $3.90 million of revenue during
the prior year.
As reported by the TCR on May 9, 2011, Daszkal Bolton LLP, in Boca
Raton, Fla., in its audit reports for the years ended Dec. 31,
2009, and Dec. 31, 2010, expressed substantial doubt about the
Company's ability to continue as a going concern. The auditors
noted that the Company has sustained recurring losses and has
negative cash flows from operations.
"We have a history of operating losses since our inception in
2005, and have a working capital deficit of approximately
$4.4 million and an accumulated deficit of approximately
$28.6 million at Dec. 31, 2010, which together raises doubt about
the Company's ability to continue as a going concern," the Company
acknowledged in the Form 10-K.
The Company's balance sheet at March 31, 2011, showed $6.26
million in total assets, $11.29 million in total liabilities and a
$5.03 million stockholders' deficit.
BOOMERANG SYSTEMS: Incurs $3.3-Mil. Net Loss in June 30 Quarter
---------------------------------------------------------------
Boomerang Systems, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss of $3.35 million on $0 of total revenues for the three
months ended June 30, 2011, compared with a net loss of $3.70
million on $254,700 of total revenues for the same period during
the prior year.
The Company also reported a net loss of $15.77 million on $1.32
million of total revenues for the nine months ended June 30, 2011,
compared with a net loss of $13.62 million on $341,675 of total
revenues for the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $4.47 million
in total assets, $6.24 million in total liabilities, and a
$1.77 million total stockholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/gpn6co
About Boomerang Systems
Headquartered in Morristown, New Jersey, Boomerang Systems, Inc.
(Pink Sheets: BMER) through its wholly owned subsidiary, Boomerang
Utah, is engaged in the design, development, and marketing of
automated racking and retrieval systems for automobile parking and
automated racking and retrieval of containerized self-storage
units.
For the fiscal year ended Sept. 30, 2010, the Company had a net
loss of $15,789,559 compared with a net loss of $9,693,734 during
the prior year. Revenues were $718,530 for the fiscal year ended
Sept. 30, 2010 compared with $0 for the fiscal year ended
Sept. 30, 2009.
BOWE BELL: Wants Exclusive Filing Period Extended to Nov. 14
------------------------------------------------------------
Mail Systems Liquidation, Inc., formerly known as Bowe Systec,
Inc., et al., ask the U.S. Bankruptcy Court for the District of
Delaware, to extend their exclusive periods in which to file a
Chapter 11 Plan and to solicit votes on any plan, through and
including Nov. 14, 2011, and Jan. 13, 2012, respectively.
The Debtors relate that currently they are working with the
purchaser and other parties in interest to finalize certain post-
closing matters in connection with the sale of substantially all
of their assets.
About Bowe Bell
Headquartered in Wheeling, Ill., BOWE BELL + HOWELL --
http://www.bowebellhowell.com/-- is a leading provider of high-
performance document management solutions and services. In 1936,
the company pioneered gripper arm mail-inserting systems and has
one of the world's largest installed bases of such inserters as a
result of the technology's flexibility, performance and
reliability. The company's complete portfolio of inserting,
sorting, plastic card, integrity, cutting, packaging, print-on-
demand and software solutions is one of the most comprehensive
product offerings for paper-based communications. These solutions
are supported by one of the largest dedicated service
organizations in the industry. In addition to its headquarters
offices, the company maintains major manufacturing and service
locations in Durham, N.C. and Bethlehem, Penn.
Bowe Bell + Howell sought bankruptcy protection in the U.S. as
part of a deal to itself to creditor Versa Capital Management Inc.
to pay off debt.
Bowe Systec, Inc., Bowe Bell + Howell Holdings, Inc., and other
affiliates, including Bowe Bell + Howell Holdings, Inc., filed
Chapter 11 petitions (Bankr. D. Del. Lead Case No. 11-11186) on
April 18, 2011. Bowe Systec estimated assets and debt of $100
million to $500 million as of the bankruptcy filing.
Mark D. Collins, Esq., Michael J. Merchant, Esq., and Lee E.
Kaufman, Esq., at Richards, Layton & Finger, P.A., in Wilmington,
Delaware, serve as the Debtors' bankruptcy counsel. McDermott
Will & Emery is the Debtors' special corporate counsel. Focus
Management Group is the Debtors' financial advisors. Lazard
Middle Market LLC is the Debtors' investment banker. The Garden
City Group, Inc is the Debtors' claims and notice agent.
Bowe Bell + Howell International Ltd., BBH's Canadian subsidiary,
commenced parallel ancillary proceeding under Part IV of the
Companies' Creditors Arrangement Act. BBH Canada, as the proposed
foreign representative for the Debtors in the ancillary
proceeding, will ask an Ontario Superior Court judge to recognize
the bankruptcy proceedings in the U.S. PricewaterhouseCoopers
Inc. is the prospective Information Officer in the Canadian
Proceeding.
Versa Capital Management, Inc. on June 27 announced the completion
of its previously publicized acquisition of the assets of Bowe
Bell + Howell and the formation of a new company and brand, Bell
and Howell, LLC.
BILO CORPORATION: Case Summary & 6 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: The Bilo Corporation
1580 Chapel Street
New Haven, CT 06511
Bankruptcy Case No.: 11-32155
Chapter 11 Petition Date: August 18, 2011
Court: U.S. Bankruptcy Court
District of Connecticut (New Haven)
Judge: Lorraine Murphy Weil
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: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's six largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/ctb11-32155.pdf
The petition was signed by Janis Borgueta, president.
BRAINY BRANDS: Delays Filing of Quarterly Report on Form 10-Q
-------------------------------------------------------------
The Brainy Brands Company, Inc., informed the U.S. Securities and
Exchange Commission that it will be late in filing its quarterly
report on Form 10-Q for the period ended June 30, 2011. The
Company said 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 that have rendered
timely filing of the Form 10-Q impracticable without undue
hardship and expense. The Company undertakes the responsibility
to file such report no later than five days after its original
prescribed due date.
About Brainy Brands
Suwanee, Ga.-based The Brainy Brands Company, Inc., through its
operating subsidiary, engages in the business of selling
educational DVDs, books, games, and toys for babies, toddlers and
pre-schoolers both domestically and internationally through
retailers under licensing agreements, as well as directly to
customers primarily via internet sales.
The Company's balance sheet at March 31, 2011, showed $1.6 million
in total assets, $3.6 million in total liabilities, and a
stockholders' deficit of $2.0 million.
Habif, Arogeti & Wynne, LLP, in Atlanta, Ga., expressed
substantial doubt about The Brainy Brands' ability to continue as
a going concern, following the Company's 2010 results. The
independent auditors noted that the Company has incurred
significant operating losses and has a net capital deficiency.
BURLINGTON COAT: Bank Debt Trades at 6% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Burlington Coat
Factory Warehouse Corp. is a borrower traded in the secondary
market at 93.77 cents-on-the-dollar during the week ended Friday,
Aug. 19, 2011, a drop of 2.53 percentage points from the previous
week according to data compiled by Loan Pricing Corp. and reported
in The Wall Street Journal. The Company pays 475 basis points
above LIBOR to borrow under the facility. The bank loan matures
on Feb. 18, 2017, and carries Moody's B3 rating and Standard &
Poor's B- rating. The loan is one of the biggest gainers and
losers among 64 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday.
Burlington Coat Factory Warehouse Corp. --
http://www.burlingtoncoatfactory.com/-- operates about 425 no-
frills retail stores offering off-price current, brand-name
clothing in about 45 states and Puerto Rico. Although it is one
of the nation's largest coat sellers, the stores also sells
children's apparel, bath items, furniture, gifts, jewelry, linens,
and shoes. Sister chains include a pair of higher-priced Cohoes
Fashions shops, about 15 MJM Designer Shoes stores, and a single
Super Baby Depot. Founded in 1972, Burlington is owned by
affiliates of buyout firm Bain Capital.
CALYPTE BIOMEDICAL: Delays Filing of Quarterly Report
-----------------------------------------------------
Calypte Biomedical Corporation is unable to file its quarterly
report on Form 10-Q for the quarter ended June 30, 2011, on a
timely basis due to its limited financial resources, thin
staffing, and delays in completing its Annual Report on Form 10-K
for the fiscal year ended Dec. 31, 2010, and its quarterly report
on Form 10-Q for the quarter ended March 31, 2011.
As of this time, the Company expects to file its Form 10-Q on or
about Oct. 31, 2011.
About Calypte Biomedical
Portland, Oregon-based Calypte Biomedical Corporation develops,
manufactures, and distributes in vitro diagnostic tests, primarily
for the diagnosis of Human Immunodeficiency Virus ("HIV")
infection.
Odenberg, Ullakko, Muranishi & Co. LLP, in San Francisco,
California, expressed substantial doubt about Calypte Biomedical's
ability to continue as a going concern. The independent auditors
noted that the Company has suffered recurring operating losses and
negative cash flows from operations, and management believes that
the Company's cash resources will not be sufficient to sustain its
operations through 2011 without additional financing.
"At Dec. 31, 2010, and 2009, we had working capital deficits of
$3.5 million and $16.6 million, respectively, the Company said in
the filing. "As of Dec. 31, 2009, the $11.6 million outstanding
under our Credit Facility and Convertible Notes was under default.
Our cash on hand and existing sources of cash are insufficient to
fund our cash needs over the next twelve months under our current
capital structure."
The Company reported net income of $8.8 million on $444,000 of
product sales for 2010, compared with a net loss of $3.6 million
on $726,000 of product sales for 2009.
The Company recorded a gain on transfer of assets of $2.3 million
and a gain on restructuring of notes of $8.5 million in 2010,
absent in 2009.
The Company's balance sheet at Dec. 31, 2010, showed $2.3 million
in total assets, $7.4 million in total liabilities, and a
stockholders' deficit of $5.1 million.
CAMP COOLEY: Court Dismissed Motion to Employ Assiter & Associates
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Texas
ordered that Camp Cooley Ltd.'s motion to employ Assiter &
Associates, LLC is dismissed as withdrawn.
In relation to this, the Court, on Aug. 10, 2011, dismissed the
Debtor's motion to auction its personal property.
As reported in the Troubled Company Reporter on Aug. 18, 2011, the
Debtor asked the Court authorize the employment of Assiter &
Associates to provide services related to the auction of its
personal property.
The Debtor's assets consist primarily of 10,629 acres of improved
ranch land located in Franklin, Robertson County, Texas, together
with interests in minerals there under. The Debtor also owned
personal property including, but not limited to furniture, tools,
equipment, vehicles, livestock, exotic game, cattle genetics and
related equipment, and other miscellaneous items of personal
property.
About Camp Cooley
Franklin, Texas-based Camp Cooley Ltd. operates an agricultural
and farming business. Camp Cooley is the entity resulting from
the merger of these entities effective Nov. 7, 2009: North CC
Pipeline, LLC; Birkel CCR GP LLC; CCR Royalty, Ltd.; Ultimate
Genetics, LLC; and Camp Cooley Genetics, LLC.
Camp Cooley filed for Chapter 11 bankruptcy protection (Bankr.
W.D. Tex. Case No. 09-61311) on Nov. 8, 2009. In its schedules,
the Debtor disclosed $57,917,118 in assets and $28,138,421 in
liabilities.
Blake L. Beckham, Esq., at Beckham & Mandel, Esq., in Dallas; and
Debra L. Innocenti, Esq., Raymond W. Battaglia, Esq., and Robert
K. Sugg, Esq., at Oppenheimer Blend Harris & Tate, in San Antonio,
Tex., represent the Debtor as counsel.
CAMP COOLEY: Circle X's $28.5-Mil. Offer Tops Auction
-----------------------------------------------------
Camp Cooley Ltd., asks the U.S. Bankruptcy Court for the Western
District of Texas to approve the sale of substantially all of its
assets, to Circle X Land & Cattle Co., Ltd.
Circle X's $28,500,000 bid was declared the highest among
17 qualified bidders in an Aug. 4, 2011, auction.
The assets to be sold include assets owned by the Debtor pursuant
to its merger with North CC Pipeline, LLC; Birkel CCR GP
LLC; CCR Royalty, Ltd.; Ultimate Genetics, LLC; and Camp Cooley
Genetics, LLC which occurred prior the Petition Date.
The Debtor's property to be sold to the buyer pursuant to the
proposed sale:
i) Real Property: All of Debtor's right, title and interest in
and to the surface only of 10,629 acres of land, more or
less, located in Franklin, Robertson County, Texas, together
with all structures, buildings and improvements located
thereon and all fixtures and fixed assets affixed to the
Land or such improvements;
ii) Interest Associated with the Land: the Debtor's interest in
and to all rights, privileges, easements and appurtenances
benefiting the premises including, without limitation, all
water rights, surface rights, wetland and mitigation
development credits, and all easements, rights of way and
other appurtenance used in connection with or benefiting the
premises;
iii) Leases: the Debtor's interest in and to all leases,
licenses, subleases and other agreements granting to a third
party the right to use or occupy any portion of the land;
iv) Minerals: All minerals owned and held by Debtor relating to
the land whether surface or subsurface, including all
royalty interests (and the associated royalty interest
revenue) owned and held by Debtor; and
v) Personal Property.
The key provisions summary of purchase and sale agreement
includes:
i) Purchase Price: $28,500,000
ii) Escrow Deposit: $1,425,000
iii) Closing Date: On or before Aug. 31, 2011
iv) Commissions to be paid by Debtor from the proceeds of
the proposed sale:
i) Texas Farms and Ranches d/b/a Great Estates,
Ranches and Real Estate (broker): a fee equal to 2%
of the Purchase Price; ii) ESA (Broker): a fee
equal to 2% of the purchase price; and iii) Hall
and Hall (Auctioneer): a fee equal to 15% of the 4%
commission to be paid to the brokers, with two
thirds (2/3rd) to be paid from the brokers'
commissions and one third (1/3rd) paid by the
Debtor from the proceeds of the sale, plus actual
out of pocket expenses not to exceed $25,000.
The Court scheduled an Aug. 10 hearing on the approval of the
assets sale to Circle X.
About Camp Cooley
Franklin, Texas-based Camp Cooley Ltd. operates an agricultural
and farming business. Camp Cooley is the entity resulting from
the merger of these entities effective Nov. 7, 2009: North CC
Pipeline, LLC; Birkel CCR GP LLC; CCR Royalty, Ltd.; Ultimate
Genetics, LLC; and Camp Cooley Genetics, LLC.
Camp Cooley filed for Chapter 11 bankruptcy protection (Bankr.
W.D. Tex. Case No. 09-61311) on Nov. 8, 2009. In its schedules,
the Debtor disclosed $57,917,118 in assets and $28,138,421 in
liabilities.
Blake L. Beckham, Esq., at Beckham & Mandel, Esq., in Dallas; and
Debra L. Innocenti, Esq., Raymond W. Battaglia, Esq., and Robert
K. Sugg, Esq., at Oppenheimer Blend Harris & Tate, in San Antonio,
Tex., represent the Debtor as counsel.
CAPMARK FINANCIAL: Wins Chapter 11 Plan Confirmation
----------------------------------------------------
Lance Duroni at Bankruptcy Law360 reports that Capmark Financial
Group Inc. won confirmation of its reorganization plan on Friday,
clearing the commercial mortgage lender to distribute about
$4 billion of stock, cash and new debt to unsecured creditors and
streamline operations around its flagship bank.
U.S. Bankruptcy Judge Kevin Gross said he would sign off on the
plan once it is submitted with minor language revisions hashed out
at the confirmation hearing, likely early next week, Law360
relates.
About Capmark Financial
Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- provides financial services to
investors in commercial real estate-related assets. Capmark has
three core businesses: lending and mortgage banking, investments
and funds management, and servicing. Capmark operates in North
America, Europe and Asia. Capmark has 1,000 employees located in
37 offices worldwide.
On Oct. 25, 2009, Capmark Financial and certain of its
subsidiaries filed voluntary petitions for relief under Chapter 11
(Bankr. D. Del. Lead Case No. 09-13684). Capmark disclosed assets
of US$20 billion against total debts of US$21 billion as of
June 30, 2009.
Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey
& LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local
counsel. Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor. Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.
The Official Committee of Unsecured Creditors in Capmark Financial
Group Inc.'s cases tapped Kramer Levin Naftalis & Frankel LLP as
its counsel and JR Myriad LLC as its commercial real estate
business advisors. The Committee also retained Cutler Pickering
Hale and Dorr LLP as its attorneys for the special purpose of
providing legal services in connection with Federal Deposit
Insurance Corporation matters.
Protech Holdings C LLC, an affiliate of Capmark, filed for
Chapter 11 protection on July 29, 2010 (Bankr. D. Del. Case No.
10-12387). The Debtor estimated assets and debts in excess of
$1 billion as of the filing date.
Since filing for Chapter 11, Capmark completed three sales to
generate more than $1 billion in cash. Berkshire Hathaway Inc.
and Leucadia National Corp. bought most of the business for
$468 million.
In April 2011, Greenline Ventures LLC completed the acquisition of
the New Markets Tax Credit division of Capmark Financial Group
Inc. Since inception of the NMTC program, Capmark's NMTC division
has closed over $1.1 billion of NMTC investment funds and financed
over $2.5 billion of projects and businesses in low income
communities nationwide.
CAPSALUS CORP: Delays Filing of Quarterly Report on Form 10-Q
-------------------------------------------------------------
Capsalus Corp. informed the U.S. Securities and Exchange
Commission that it will be late in filing its quarterly report on
Form 10-Q for the period ended June 30, 2011. The Company said it
did not obtain all information prior to filing date.
About Capsalus Corp.
Atlanta, Ga.-based Capsalus Corp. offers a broad range of
solutions to global health problems. WhiteHat Holdings, LLC, was
acquired on April 14, 2010. In combining with WhiteHat, the
Company is creating a new, consumer-driven business unit, the
Nutritional Products Division, focused on healthy food and
beverages.
The Company reported a net loss of $16.02 million for the year
ended Dec. 31, 2010, compared with a net loss of $10.89 million
during the prior year.
The Company's balance sheet at March 31, 2011, showed
$4.67 million in total assets, $5.29 million in total liabilities,
and a $617,587 total stockholders' deficit.
The Company has not generated any operating revenues from its
continuing operations, and as of Dec. 31, 2010, it had incurred a
cumulative consolidated net loss from inception of $30.66 million.
As reported by the TCR on April 21, 2011, Moquist Thorvilson
Kaufmann Kennedy & Pieper LLC, in Edina, Minnesota, expressed
substantial doubt about the Company's ability to continue as a
going concern, following the 2010 financial results. The
independent auditors noted that the Company has suffered losses
from operations since its inception.
CARIBE MEDIA: Files Plan to Exit Chapter 11 Under Lenders' Control
------------------------------------------------------------------
Dow Jones' DBR Small Cap reports that Caribe Media Inc., an
affiliate of bankrupt yellow-pages publisher Local Insight Media
Holdings Inc., filed a reorganization plan explaining how it
intends to emerge from Chapter 11 protection under control of its
lenders.
About Caribe Media
Caribe Media Inc. owns publication rights for certain print and
Internet directories in the Dominican Republic and Puerto Rico.
Caribe Media owns 60% of Axesa Servicios de Informacion, S. en C.,
a Yellow Pages publisher in Puerto Rico and the official publisher
of all telephone directories for Puerto Rico Telephone Company,
Inc., the largest local exchange carrier in Puerto Rico, and
US$100% of Caribe Servicios de Informacion Dominicana, S.A., the
sole directory publisher in the Dominican Republic with the
exclusive right to publish under the brand of Codetel, the largest
telecom operator in the Dominican Republic. Caribe Media is
wholly owned by CII Acquisition Holding Inc. They are affiliates
of Local Insight Media Holdings, Inc.
Caribe Media and CII filed for Chapter 11 bankruptcy protection
(Bankr. D. Del. Case Nos. 11-11387 and 11-11388) on May 3, 2011.
Caribe Media is being represented by lawyers at Kirkland & Ellis
LLP and Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel.
Lawyers at Curtis, Mallet-Prevost, Colt & Mosle LLP will serve as
conflicts counsel.
Local Insight Media is also a debtor in its own Chapter 11 pending
in Delaware. Local Insight Media filed in 2010. It is also being
represented by lawyers at Kirkland and Pachulski.
CASTLE BRANDS: Plan to Regain Compliance Accepted by NYSE Amex
--------------------------------------------------------------
Castle Brands Inc. disclosed that its plan to regain compliance
with the NYSE Amex continued listing standards has been accepted
by the Exchange.
On July 15, 2011, Castle Brands received a notice from the NYSE
Amex Staff indicating that the Company was not in compliance with
Section 704 of the NYSE Amex Company Guide, in that it did not
hold an annual shareholder meeting within one year after its
fiscal year ended March 31, 2010. The Company submitted a plan of
compliance to the NYSE Amex advising the Exchange that the Company
expects to hold a meeting of its shareholders for the fiscal years
ended March 31, 2010 and March 31, 2011 on September 12, 2011,
which would bring the Company into compliance with Section 704.
The Exchange granted the Company an extension until Jan. 5, 2012
to regain compliance with the continued listing standards. The
Company will be subject to periodic review by Exchange Staff
during the Plan Period. Failure to make progress consistent with
the plan or to regain compliance with the continued listing
standards by the end of the Plan Period could result in the
Company being delisted from the NYSE Amex LLC. The Company
expects to regain compliance with the continued listing standards
following its September 12, 2011 shareholder meeting.
The Company's trading symbol on the NYSE Amex will continue to be
"ROX", however, the extension .BC will be appended on the
Consolidated Tape Association's Consolidated Tape System and
Consolidated Quote System until the Company regains compliance
with the Exchange's requirements.
About Castle Brands
Castle Brands -- http://www.castlebrandsinc.com/-- is a developer
and international marketer of premium beverage alcohol brands
including: Gosling's Rum(R), Jefferson's(R), Jefferson's
Presidential Select(TM)and Jefferson's Reserve(R) Bourbon, Boru(R)
Vodka, Pallini(R) Limoncello, Raspicello and Peachcello, Knappogue
Castle Whiskey(R), Clontarf(R) Irish Whiskey, Betts & Scholl(TM)
wines, cc: wines(TM), Celtic Crossing(R) Liqueur, Brady's(R) Irish
Cream, A. De Fussigny(R) cognacs, Travis Hasse's
Original(R)Liqueurs and Tierras(TM) tequila.
CCS INCOME TRUST: Bank Debt Trades at 11% Off in Secondary Market
-----------------------------------------------------------------
Participations in a syndicated loan under which CCS Corporation,
formerly known as CCS Income Trust, is a borrower traded in the
secondary market at 89.12 cents-on-the-dollar during the week
ended Friday, Aug. 19, 2011, a drop of 2.48 percentage points from
the previous week according to data compiled by Loan Pricing Corp.
and reported in The Wall Street Journal. The Company pays 300
basis points above LIBOR to borrow under the facility. The bank
loan matures on Nov. 5, 2014, and carries Moody's 'B2' rating and
Standard & Poor's 'B' rating. The loan is one of the biggest
gainers and losers among 64 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
About CCS Corporation
CCS Corporation is an opportunity-rich growth organization that
provides energy and environmental waste management services.
Focused on disciplined growth, CCS maintains its long-term
comprehensive commitment to environmental stewardship by
continually setting -- and raising -- industry standards. CCS
services the global energy and environment sectors through four
major divisions; CCS Midstream Services, CCS Energy Marketing,
HAZCO Environmental & Decommissioning Services and Concord Well
Servicing. CCS was formerly known as CCS Income Trust and changed
its name on Nov. 14, 2007. The Company was founded in 1984 and is
based in Calgary, Canada.
* * *
In June 2011, Moody's Investors Service affirmed CCS's B3
Corporate Family Rating and Probability of Default Rating.
CCS's B3 CFR reflects the company's high financial leverage,
associated substantial debt service cost, and expected negative
free cash flow in 2011. Meaningful improvement in leverage
metrics will be contingent upon growth in EBITDA, which is
expected to result from the company's large capital expenditure
program. The majority of growth capital is directed to waste
management services in response to the increase in drilling
activity, and should help to improve CCS's leverage metrics. The
ratings are supported by the company's revenues and margins in
waste management services, high barriers to entry created through
a combination of technical expertise and ownership of permitted
Treatment Recovery and Disposal facilities and landfill assets,
and relatively diversified revenue streams that somewhat mitigate
dependence on cyclical oil and gas drilling activity.
CEMTREX INC: Reports $428,000 Net Income in June 30 Quarter
-----------------------------------------------------------
Cemtrex, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting net income
of $428,452 on $6 million of revenue for the three months ended
June 30, 2011, compared with a net loss of $114,770 on $654,721 of
revenue for the same period during the prior year.
The Company also reported net income of $813,553 on $11.07 million
of revenue for the nine months ended June 30, 2011, compared with
a net loss of $306,087 on $2.56 million of revenue for the same
period a year ago.
The Company's balance sheet at June 30, 2011, showed $1.78 million
in total assets, $1.88 million in total liabilities, and a
$102,843 total stockholders' deficit.
As reported in the Troubled Company Reporter on Jan. 21, 2011,
Gruber & Company, LLC, in Saint Louis, Mo., expressed substantial
doubt about Cemtrex's ability to continue as a going concern,
following the Company's results for the fiscal year ended
Sept. 30, 2010. The independent auditors noted that the Company
has a negative equity and negative working capital.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/NQQVXA
About Cemtrex, Inc.
Farmingdale, N.Y.-based Cemtrex, Inc., is engaged in manufacturing
and selling the most advanced instruments for emission monitoring
of particulate, opacity, mercury, sulfur dioxide, nitrogen oxides,
etc. Cemtrex also provides turnkey services for carbon creation
projects from abatement of greenhouse gases pursuant to Kyoto
protocol and assists project owners in selling of carbon credits
globally. The Company's products are sold to power plants,
refineries, chemical plants, cement plants & other industries
including federal and state governmental agencies.
CHARMING CASTLE: Trustee Obtains $323T Judgment v. Ex-Client
------------------------------------------------------------
Robert A. Morgan, Trustee, v. Royal Manufactured Homes, LLC, Adv.
Proc. No. 08-70007 (Bankr. N.D. Ala.), seeks the recovery of money
that Royal Manufactured Homes allegedly owes to Charming Castle,
LLC, d/b/a Indies House, for homes that the Debtor manufactured.
In an Aug. 18, 2011 Memorandum Opinion, Bankruptcy Judge C.
Michael Stilson finds that the Trustee is entitled to judgment of
$323,382.80. Royal Manufactured Homes is a mobile home dealer
that operates in Opelousas, Louisiana.
About Charming Castle
Headquartered in Hackleburg, Alabama, Charming Castle LLC, dba
Indies House -- http://www.indieshouse.net/-- was a manufacturer
of mobile homes, operating two manufacturing plants, one in
Haleyville, Alabama and the other in Hackleburg, Alabama. The
Company filed for chapter 11 protection (Bankr. N.D. Ala. Case No.
06-71420) on Oct. 5, 2006. Robert L. Shields, III, Esq., at the
Shields Law Firm represented the Debtor. Derek F. Meek, Esq., and
Jennifer Brooke Kimble, Esq., at Burr & Forman LLP represented the
Official Committee of Unsecured Creditors.
Charming Castle estimated assets of less than $50,000 and debts
between $10 million and $50 million as of the Chapter 11 filing.
On Dec. 11, 2006, the Court converted the Debtor's case into
chapter 7. Robert A. Morgan serves as Chapter 7 trustee and is
represented by William Dennis Schilling in Birmingham, Alabama.
The Trustee also hired Clydette Hughes as assets liquidator.
CHINA TEL GROUP: Incurs $2.4 Million Net Loss in Second Quarter
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Velatel Global Communications, Inc., formerly China Tel Group,
Inc., filed with the U.S. Securities and Exchange Commission its
quarterly report on Form 10-Q reporting a net loss of $2.40
million on $168,734 of revenue for the three months ended June 30,
2011, compared with a net loss of $29.02 million on $236,584 of
revenue for the same period a year ago.
The Company also reported a net loss of $10.74 million on $373,105
of revenue for the six months ended June 30, 2011, compared with a
net loss of $36.29 million on $459,403 of revenue for the same
period during the prior year.
The Company's balance sheet at June 30, 2011, showed $9.74 million
in total assets, $27.23 million in total liabilities, and a
$17.48 million total stockholders' deficit.
The Company reported a net loss of $66,623,130 on $955,311 of
revenue for the year ended Dec. 31, 2010, compared with a net loss
of $56,065,029 on $657,876 of revenue during the prior year.
Since the Company's inception until June 30, 2011, it has incurred
accumulated losses of approximately $242.36 million. The Company
expects to continue to incur net losses for the foreseeable
future.
The Company's independent accountants have expressed substantial
doubt about the Company's ability to continue as a going concern
in their audit report, dated April 15, 2011, for the period ended
Dec. 31, 2010. As reported by the TCR on April 21, 2011, Mendoza
Berger & Company, LLP, in Irvine, California, expressed
substantial doubt about the Company's ability to continue as a
going concern, following the 2010 financial results. The
independent auditors noted that the Company has incurred a net
loss of $56,041,182 for the year ended Dec. 31, 2009, cumulative
losses of $165,361,145 since inception, a negative working capital
of $68,760,057, and a stockholders' deficit of $63,213,793.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/J7BPOn
About China Tel
Based in San Diego, California, and Shenzhen, China, China Tel
Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/--
provides high speed wireless broadband and telecommunications
infrastructure engineering and construction services. Through its
controlled subsidiaries, the Company provides fixed telephony,
conventional long distance, high-speed wireless broadband and
telecommunications infrastructure engineering and construction
services. ChinaTel is presently building, operating and deploying
networks in Asia and South America: a 3.5GHz wireless broadband
system in 29 cities across the People's Republic of China with and
for CECT-Chinacomm Communications Co., Ltd., a PRC company that
holds a license to build the high speed wireless broadband system;
and a 2.5GHz wireless broadband system in cities across Peru with
and for Perusat, S.A., a Peruvian company that holds a license to
build high speed wireless broadband systems.
CLAIRE'S STORES: Bank Debt Trades at 15% Off in Secondary Market
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Participations in a syndicated loan under which Claire's Stores,
Inc., is a borrower traded in the secondary market at 84.95 cents-
on-the-dollar during the week ended Friday, Aug. 19, 2011, an
increase of 3.45 percentage points from the previous week
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. 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 'B3' rating and Standard & Poor's
'B' rating. The loan is one of the biggest gainers and losers
among 64 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 Jan. 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.
The Company's balance sheet at April 30, 2011, showed $2.86
billion in total assets, $249.40 million in total current
liabilities, $2.64 billion in long-term debt, and a stockholders'
deficit of $26.70 million. Claire's Stores carries 'Caa2'
corporate family and probability of default ratings, with
'positive' outlook, from Moody's Investors Service, and 'B-'
issuer credit ratings, with 'stable' outlook, from Standard &
Poor's.
* * *
Moody's Investors Service in December 2010 upgraded Claire's
Stores' ratings, including its Corporate Family Rating and
Probability of Default Rating, to 'Caa2' from 'Caa3'. The upgrade
reflects a decrease in Claire's probability of default given that
the company can now fully cover its interest expense. This is due
to earnings improvement from solid comparable store sales growth,
improved merchandise margins, and continued expense discipline.
Claire's Caa2 Probability of Default Rating reflects Moody's view
that although Claire's credit metrics have improved, they remain
very weak as a result of its heavy debt load. For the twelve
months ending Oct. 30, 2010, Claire's debt to EBITDA was very high
at 9.3 times.
CLUB VENTURES: Court Sets Sept. 23 Plan Confirmation Hearing
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On Aug. 8, 2011, the U.S. Bankruptcy Court for the Southern
District of New York approved the disclosure statement for the
joint plan of reorganization of Club Ventures Investments, LLC, et
al.
The confirmation hearing will take place on Sept. 23, 2011, at
10:00 a.m.
Objections or proposed modifications must be filed no later than
Sept. 12, 2011.
Ballots must be received no later than Sept. 12, 2011. A written
certification of the acceptance or rejection of the Plan must be
filed with the Bankruptcy Court and served on the United States
Trustee and counsel to the Committee no later than Sept. 20, 2011.
Claims against the Debtors are classified and will be treated as
follows under the Plan:
Class 1 - Non-Tax Priority Claims. Unimpaired, deemed to have
accepted the Plan and not entitled to vote.
Class 2 - BofA Secured Claim. Impaired and entitled to vote.
The BofA Secured Claim is the Claim asserted by BofA
against CVI in the approximate amount of
$11,115,000.
The BofA Secured Claim will be reinstated; provided,
however, that notwithstanding anything to the
contrary in the BofA Documentation, the date by
which CVI is required to repay all outstanding
principal, interest and other charges outstanding
will be extended to Sept. 15, 2012.
Class 3 - LBN Secured Claim. Impaired and entitled to vote.
The LBN Secured Claim is the collective contingent
and noncontingent Claims against the Debtors
asserted by LBN in the noncontingent amount of not
less than $22,418,294.61, and the contingent amount
of not less than $13,202,431.16.
The Holder of the LBN Secured Claim will receive, in
full and final satisfaction, release, and discharge
of, and in exchange for, the LBN Secured Claim: (1)
the LBN Notes and Reimbursement Obligation, and (2)
New Membership Interests as set forth in the Amended
CVI Operating Agreement.
Class 4 - Praesidian Secured Claim. Impaired and entitled to
vote. The Praesidian Secured Claim is the
collective Claims asserted by Praesidian against the
Debtors in the approximate amount of $30,626,715.
The Holders of the Praesidian Secured Claim shall
receive, in full and final satisfaction, release,
and discharge of, and in exchange for, the
Praesidian Secured Claim: (1) the Praesidian Notes,
and (2) New Membership Interests as set forth in the
Amended CVI Operating Agreement.
Class 5 - Other Secured Claims. Unimpaired, deemed to have
accepted the Plan and not entitled to vote.
Class 6 - Member Claims. Unimpaired, deemed to have accepted
the Plan and not entitled to vote.
Class 7 - Convenience Claims. Impaired and entitled to vote.
Class 8 - General Unsecured Claims. Impaired and entitled to
vote. Each Holder of an Allowed General Unsecured
Claim will receive a Cash payment equal to its Pro
Rata share of the General Unsecured Claim
Distribution Amount, in full and final satisfaction
of the Claim. Estimated recovery is 4.25%.
Class 9 - Insured Claims. Unimpaired, deemed to have accepted
the Plan and not entitled to vote. All Insured
Claims will be Reinstated.
Class 10 - Subordinated Claims. Impaired, deemed to have
rejected the Plan and not entitled to vote.
Class 11 - Interests in Subsidiary Debtors. Unimpaired, deemed
to have accepted the Plan and not entitled to vote.
Class 12 - Series B Preferred Interests in CVI. Impaired,
deemed to have rejected the Plan and not entitled to
vote.
Class 13 - Series A Preferred Interests in CVI. Impaired,
deemed to have rejected the Plan and not entitled to
vote.
Class 14 - Class C Interests in CVI. Impaired, deemed to have
rejected the Plan and not entitled to vote.
Class 15 - Class B Interests in CVI. Impaired, deemed to have
rejected the Plan and not entitled to vote.
Class 16 - Class A Interests in CVI. Impaired, deemed to have
rejected the Plan and not entitled to vote.
All Cash necessary for the Reorganized Debtors to make payments
required by the Plan will be obtained from (i) existing Cash
balances, (ii) the operations of the Debtors or Reorganized
Debtors, and (iii) the Exit Facility, which is a financing
facility to be provided to the Reorganized Debtors on the
Effective Date by LBN Holding LLC.
The terms and conditions of the Exit Facility are presently being
negotiated and a final agreement will be set forth in a plan
supplement filed with the Bankruptcy Court no later than five days
prior to the hearing on confirmation of the Plan.
The Confirmation Order will constitute an Order approving the
terms and conditions of the Exit Facility. If the Court refuses
to approve the final terms of the Exit Facility, the Plan in its
present form will not be feasible and will not be confirmed.
A copy of the Disclosure Statement, dated August __ , 2011, is
available at http://bankrupt.com/misc/clubventures.DS.pdf
About Club Ventures
New York-based Club Ventures Investments LLC, aka DavidBartonGym,
is a boutique gym company. Club Ventures owns DavidBartonGym, an
operator of upscale health clubs in four cities. Founded in 1992
by David Barton, DavidBartonGym has grown to operate health clubs
in New York, Miami, Chicago, and Seattle (Bellevue).
Club Ventures and its affiliates filed for Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-10891) on March 2,
2011. Club Ventures disclosed $327,921 and $71,037,100 in
liabilities as of the Chapter 11 filing.
David B. Shemano, Esq., at Peitzman, Weg & Kempinsky LLP, in Los
Angeles, serves as the Debtors' bankruptcy counsel.
Tracy L. Klestadt, Esq., at Klestadt & Winters LLP, in New York,
represents the Official Committee of Unsecured Creditors retained
as counsel. The Creditors Committee also tapped FTI Consulting,
Inc., as its financial advisor.
CLUB VENTURES: Court Approves DIP Loan Increase to $1.5 Million
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On June 1, 2011, the U.S. Bankruptcy Court for the Southern
District of New York entered a final order authorizing Club
Ventures Investments LLC, et. al., to (A) obtain Junior Secured
Superpriority Postpetition Financing of up $800,000, all of which
financing has been advanced by LBN Holdings LLC to the Debtors,
and (B) utilize Cash Collateral of the Prepetition Secured
Lenders.
On July 6, 2011, LBN advanced to the Debtors an additional
$350,000, which the Debtors required to satisfy their ongoing
operating expenses, in excess of the amount authorized by the
Final DIP Order and DIP Agreement.
On Aug. 15, 2011, the Bankruptcy Court approved the Stipulation
supplementing the Final DIP Order and amending the DIP Agreement
by and among the Debtors and LBN. The maximum loan amount was
increased to $1,500,000 to cover the First Supplemental Advance of
$350,000 and any further advances required by the Debtors to fund
ongoing operations up to and through the Effective Date.
Bank of America, N.A., Praesidian Capital Investors, LP,
Praesidian II SPV 1 LP, Praesidian II SPV 2, LP, the Committee and
the Office of the United States Trustee, consented to the
Stipulation and Order.
As reported in the TCR on March 10, 2011, the DIP facility will
incur interest at the Applicable Federal Rate. In the event of
default, the Debtors will pay an additional 2.0% default interest
per annum.
The DIP Lender is granted automatically perfected, valid and
enforceable junior security interests in and liens on all of the
DIP collateral, including all property constituting cash
collateral. The DIP Lender is granted allowed superpriority
administrative expense claims in the cases for the DIP Facility
and all obligations owing thereunder and under the DIP Documents,
including all indemnification obligations of the Debtors
thereunder. The DIP Superpriority Claim will be subordinate only
to the carve-out and the adequate protection claims granted to
Bank of America, N.A.
The DIP lien is subject to an up to $50,000 carve-out for U.S.
Trustee and Clerk of court fees; fees payable to professional
employed in the Debtors' case; and fees of the committee in
pursuing actions challenging the DIP Lenders' lien.
Each of the DIP Lender and the prepetition lenders will have the
right to credit bid with respect to any sale of assets or equity.
About Club Ventures
New York-based Club Ventures Investments LLC, aka DavidBartonGym,
is a boutique gym company. Club Ventures owns DavidBartonGym, an
operator of upscale health clubs in four cities. Founded in 1992
by David Barton, DavidBartonGym has grown to operate health clubs
in New York, Miami, Chicago, and Seattle (Bellevue).
Club Ventures and its affiliates filed for Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-10891) on March 2,
2011. Club Ventures disclosed $327,921 and $71,037,100 in
liabilities as of the Chapter 11 filing.
David B. Shemano, Esq., at Peitzman, Weg & Kempinsky LLP, in Los
Angeles, serves as the Debtors' bankruptcy counsel.
Tracy L. Klestadt, Esq., at Klestadt & Winters LLP, in New York,
represents the Official Committee of Unsecured Creditors retained
as counsel. The Creditors Committee also tapped FTI Consulting,
Inc., as its financial advisor.
COLTS RUN: Aug. 30 Status Hearing in Bank Suit v. Insider
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District Judge George M. Marovich will hold a status hearing on
Aug. 30, 2011, at 11:00 a.m. in the complaint styled, PNC Bank,
National Association, v. Ivan Djurin, No. 10 C 3785 (N.D. Ill.).
PNC Bank filed suit against Mr. Djurin to collect on three
guaranty agreements signed by Mr. Djurin. PNC made a series of
three loans to entities related to Mr. Djurin. With respect to
each loan, Mr. Djurin signed a guaranty of payment:
-- In December 2007, Colts Run LLC executed a Fourth Amended
and Restated Adjustable Rate Note in an amount greater
than $16,000,000;
-- In January 2008, PNC entered a loan agreement with Mt.
Zion Limited Partnership. Pursuant to that agreement, PNC
loaned Mt. Zion $25,250,000; and
-- In January 2008, Mt. Zion executed a mezzanine loan
Agreement.
In April 2010, Colts Run and Mt. Zion filed separate Chapter 11
bankruptcy petitions. The filings constituted an "Event of
Default" under the Colts Run Loan and the Mt. Zion Loans.
On June 11, 2010, PNC demanded immediate payment under the Mt.
Zion Guaranty, the Mezzanine Guaranty and the Colts Run Guaranty.
The Defendant made no payment.
In an Aug. 16, 2011 Memorandum Opinion and Order, Judge Marovich
granted PNC's motion for judgment on the pleadings with respect to
the merits of its claims. PNC did not move for judgment as to
damages. A copy of the Court's ruling is available at
http://is.gd/HnrNcKfrom Leagle.com.
About Colts Run
Lake Forest, Illinois-based Colts Run, LLC, owns and operates a
residential apartment project located in Lexington, Kentucky,
known as Colts Run Apartments. The Company filed for Chapter 11
bankruptcy protection (Bankr. N.D. Ill. Case No. 10-18071) on
April 23, 2010. Arthur G. Simon, Esq., David K. Welch, Esq.,
Jeffrey C. Dan, Esq., and Scott R. Clar, Esq., at Crane Heyman
Simon Welch & Clar, in Chicago, Ill, represent the Debtor in its
restructuring effort. William E. Huml & Co., Ltds., serves as the
Debtor's accountants. In its schedules, the Debtor disclosed
$25,085,211 in assets and $23,063,333 in liabilities as of the
Petition Date.
The U.S. Bankruptcy Court for the Northern District of Illinois
entered an order directing the appointment of a Chapter 11 trustee
to oversee the bankruptcy case of Colts Run LLC.
In August 2010, Colts Run filed a full-payment plan of
reorganization and an explanatory disclosure statement. Plan
distributions, the Debtor proposed, would be made from cash
deposits existing at the confirmation and from proceeds realized
from the continued operation of the Debtor's business. The Debtor
does not intend to liquidate any if its assets to make the
payments. If necessary, at the point of the balloon payment
coming due to PNC, the Debtor may borrow the funds sufficient to
make the balloon payment. The Debtor's members (i) Ivan Djurin
and (ii) The Teresa M. Baldwin Trust would retain their equity
interest in the Debtor after confirmation of the Plan.
In March 2011, PNC, which asserts a $23,172,000 claim secured by
perfected liens in substantially all the assets of the Debtor,
succeeded in its request for the appointment of a Chapter 11
trustee to take over the estate.
PNC is represented by Ronald Barliant, Esq., at Goldberg Kohn
Ltd., in Chicago, Illinois.
About Mt. Zion Limited Partnership
Lake Forest, Illinois-based Mt. Zion Limited Partnership, dba
Woodspring Apartments, owns and operates a residential apartment
project located in Florence, Kentucky, known as Woodspring
Apartments. The Company filed for Chapter 11 protection (Bankr.
N.D. Ill. Case No. 10-18075) on April 23, 2010. David K. Welch,
Esq., at Crane Heyman Simon Welch & Clar, assists the Debtor in
its restructuring effort. The Company estimated its assets and
debts at $10 million to $50 million as of the Petition Date.
PNC Bank has a secured claim of $28,100,000 and an unsecured
deficiency claim of $1,725,110. PNC is represented by Ronald
Barliant, Esq., at Goldberg Kohn Ltd., in Chicago, Illinois.
PNC has objected to the Second Amended Plan of Reorganization,
dated March 29, 2011, filed by Mt. Zion, saying the Plan fails to
satisfy Section 1129(a)(1) of the Bankruptcy Code and cannot be
confirmed.
COMPOSITE TECHNOLOGY: Sale of All Assets to CTC Acquisition OK'd
----------------------------------------------------------------
The Hon. Scott Clarkson of the U.S. Bankruptcy Court for the
Central District of California authorized Composite Technology
Corporation, et al., to sell substantially all of the assets of
the estate to CTC Acquisition Corp., a Delaware corporation.
As reported in the Troubled Company Reporter on Aug. 18, 2011, CTC
Acquisition purchased all of the Company's operating assets,
excluding the following:
i) residual operating cash at the date of closing,
ii) certain claims under the Chapter 11 proceedings,
iii) $3,000,000 of cash retained in escrow pursuant to the
DSME transaction dated September 2009 and
iv) certain residual interests in subsidiaries located in
Europe related to the former Dewind business.
The book value of the assets transferred totaled $9.2 million
including all accounts receivables, inventories and fixed assets,
all of which approximated fair value.
In addition, CTC Acquisition acquired all the Company's
intellectual property, including patents, trademarks, copyrights,
brands and other intellectual property.
CTC Acquisition paid approximately $15.4 million for the assets in
the form of:
i) $1.0 million in cash;
ii) $10.5 million in assumed senior secured debt, fees and
accrued interest, of which $4.0 million will be paid upon
closing to the lender and $6.5 million restructured under a
2-year senior secured note payable by CTC Acquisition
bearing 8% annual interest;
iii) $2.6 million in assumed executory contracts;
iv) $1.0 million in employee-related payroll and vacation
accrual liabilities; and
v) up to $0.3 million of additional payment for premiums on
product warranty insurance policies.
The Court also approved the amendment of secured creditor
agreement which provides, among other things, if Partners for
Growth II, LP, obtains any recovery from the Debtors' estates or
otherwise, the Debtors' estates will be automatically subrogated
to: (i) all of PFG's rights and remedies under the secured
creditor agreement in the amount of additional PFG recoveries and
(ii) all of PFG's obligations under the secured creditor
agreement; and the purchaser will be obligated to the Debtors'
estates under the terms of the secured creditor agreement;
provided, however, that until the time as PFG will have obtained
any additional PFG recoveries: (a) PFG will have the sole right to
enforce its rights and remedies under the secured creditor
agreement and to take other actions as may be required or
permitted; and (b) purchaser may rely upon PFG's sole authority.
For avoidance of doubt and notwithstanding anything to the
contrary in the order, the sale of the assets to purchasers will
not be free and clear of (i) the liens of PFG in the assets
securing the obligations that are assumed by the purchaser and the
liens granted by purchaser to PFG, which liens will transfer with
the assets; and (ii) the liens granted by the purchaser to the
Debtors' estates; and the rights and remedies of PFG and the
Debtors' estates' with respect to such liens are fully preserved.
About Composite Technology
Headquartered in Irvine, California, Composite Technology
Corporation - http://www.compositetechcorp.com/-- develops,
produces, markets and sells energy efficient and renewable energy
products for the electrical utility industry. As of March 31,
2011, the Company has one business segment: CTC Cable Corporation.
CTC Cable produces and sells ACCC(R) conductor products and
related ACCC(R) hardware products. ACCC(R) conductor has been
sold commercially since 2005 and is currently marketed worldwide
to electrical utilities, transmission companies and transmission
design/engineering firms.
Composite Technology filed for Chapter 11 bankruptcy (Bankr. C.D.
Calif. Case No. 11-15058) on April 10, 2011, with Judge Mark S.
Wallace presiding over the case. The Debtor's bankruptcy case was
reassigned to Judge Scott C. Clarkson on April 13, 2011. BCC
Advisory Services LLC, BCC Ho1dco LLC's FINRA registered
Broker/Dealer, serves as investment banker to provide exclusive
equity financing services and debt financing services. Composite
Technology disclosed $5,855,670 in assets and $12,395,916 in
liabilities as of the Chapter 11 filing.
CTC Cable Corporation (Bankr. C.D. Calif. Case No. 11-15059) and
Stribog, Inc. (Bankr. C.D. Calif. Case No. 11-15065) also filed
for Chapter 11 protection.
The cases are jointly administered, with Composite Technology as
the lead case. Paul J. Couchot, Esq., at Winthrop Couchot PC,
serves as the Debtors' bankruptcy counsel. The Debtors also
tapped Marsch Fischmann & Breyfogle LLP as special intellectual
property approval counsel; Knobbe, Martens, Olson & Bear, LLP as
special patent litigation counsel; McIntosh Group as special
intellectual property counsel.
Peter C. Anderson, the U.S. Trustee for Region 16, appointed five
members to the official committee of unsecured creditors in the
Debtor's cases. Steptoe & Johnson LLP represents the Committee.
CONTECH CONSTRUCTION: Bank Debt Trades at 23% Off
-------------------------------------------------
Participations in a syndicated loan under which Contech
Construction Products, Inc., is a borrower traded in the secondary
market at 77.00 cents-on-the-dollar during the week ended Friday,
Aug. 19, 2011, a drop of 1.00 percentage points from the previous
week according to data compiled by Loan Pricing Corp. and reported
in The Wall Street Journal. The Company pays 200 basis points
above LIBOR to borrow under the facility. The bank loan matures
on Jan. 31, 20113, and carries Moody's 'Caa2' rating and Standard
& Poor's 'B' rating. The loan is one of the biggest gainers and
losers among 64 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday.
About Contech Construction
Headquartered in West Chester, Ohio, Contech Construction
Products, Inc. -- http://www.contech-cpi.com/-- makes,
distributes, and installs civil engineering products related to
environmental storm water, drainage, bridges, walls, and earth
stabilization. Contech has dealers, distributors, or
manufacturing plants in all 50 U.S. states and a national sales
organization of more than 350 people. Investment firm Apax
Partners owns Contech.
As reported by the Troubled Company Reporter on June 6, 2011,
Standard & Poor's revised its outlook on West Chester, Ohio-based
Contech Construction Products, Inc., to negative from stable. "At
the same time, we affirmed our ratings on Contech, including the
'B-' corporate credit rating," S&P stated. "The outlook revision
reflects our assessment of Contech's limited near-term liquidity
due to higher-than-expected borrowings on its revolving credit
facility to support higher steel costs," said Standard & Poor's
credit analyst Thomas Nadramia.
"The outlook revision also reflects that Contech's operating
environment is likely to remain difficult in the near term,
resulting in reduced cushion in the company's minimum EBITDA
covenant, which governs its revolving credit facility and term
loan. The minimum EBITDA requirement continues to step up over
the next several quarters. However, our current expectation is
that liquidity will likely remain at, or near, current reduced
levels in the next two quarters until seasonal cash collections
begin in the last quarter of 2011."
DELPHI CORP: District Court Affirms Ruling Disallowing Adm. Claim
-----------------------------------------------------------------
Chapter11Cases.com reports that in an Aug. 19, 2011 opinion, Judge
Paul Crotty of the United States District Court for the Southern
District of New York affirmed a September 2010 bankruptcy court
ruling in the Delphi Corporation (n/k/a DPH Holdings Corp.)
chapter 11 cases which denied a request by Appellant Michigan
Funds Administration (or MFA) to amend an administrative expense
claim and disallowed and expunged the underlying claim.
According to the report, in the bankruptcy court order, entered by
Bankruptcy Judge Robert Drain (Bankr. S.D.N.Y.), the bankruptcy
court considered whether an untimely administrative claim filed by
the MFA for 2009 yearly assessments could be considered an
amendment of the MFA's timely administrative claim for 2008
assessments. Judge Drain, relying on the two-part test outlined
by the Second Circuit in Midland Cogeneration Venture L.P. v.
Enron Corp. (In re Enron Corp.), 419 F.3d 115 (2d Cir. 2005),
found that "the [2009 Claim] would not properly relate back to the
[2008 Claim].
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation --
http://www.delphi.com/-- was a global supplier of electronics and
technologies for automotive, commercial vehicle and other market
segments. Delphi operates major technical centers, manufacturing
sites and customer support facilities in 30 countries.
The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead
Case No. 05-44481) on Oct. 8, 2005. John Wm. Butler Jr., Esq.,
John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps,
Slate, Meagher & Flom LLP, represented the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represented the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on Jan. 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi. At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.
On Oct. 6, 2009, Delphi Corp.'s Chapter 11 plan of reorganization
became effective. A Master Disposition Agreement executed among
Delphi Corporation, Motors Liquidation Company, General Motors
Company, GM Components Holdings LLC, and DIP Holdco 3, LLC,
divides Delphi's business among three separate parties -- DPH
Holdings LLC, GM Components, and DIP Holdco 3.
Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings is
responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000
DELTA AIR: Wraps Up Bankruptcy Issues, Distributes Final Shares
--------------------------------------------------------------
The Atlanta Journal-Constitution reports that Delta Air Lines is
finally wrapping up its bankruptcy issues from a Chapter 11 filing
six years ago.
According to the report, the bankruptcy court granted an order for
final decree to close the Northwest bankruptcy case in March.
After completing paperwork on the final claims, earlier this week
Delta distributed its final round of shares to unsecured creditors
and to some employees.
The report notes that includes about 1,000 pre-merger Northwest
pilots who took their bankruptcy claim in stock, according to the
Air Line Pilots Association at Delta. It also includes 104 shares
for Mickey Foret, a Delta board member, former chief financial
officer of Northwest and president of Aviation Consultants LLC.
The shares were for an unsecured claim held by Aviation
Consultants.
The final step in the Northwest bankruptcy case follows the
conclusion of Delta's bankruptcy earlier this year. Delta's order
for a final decree was granted in December 2010, and the final
claims were distributed in March 2011.
About Delta Air Lines
Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) --
http://www.delta.com/or http://www.nwa.com/-- provides scheduled
air transportation for passengers and cargo throughout the United
States, and around the world. The Company's route network is
centered on the hub system it operate at airports in Atlanta,
Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK,
Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo-
Narita. The hub operations include flights, which gather and
distribute traffic from markets in the geographic region
surrounding the hub to domestic and international cities and to
other hubs. The network is supported by a fleet of aircraft, which
is varied in terms of size and capabilities. On Dec. 31,
2009, the Company's wholly owned subsidiary Northwest Airlines,
Inc., merged with and into Delta. The wholly owned subsidiary of
the Company is Northwest Airlines Corporation.
Northwest and 12 affiliates filed for Chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan. That amended plan took effect May 31, 2007.
Delta and 18 affiliates filed for Chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan. That plan
became effective on April 30, 2007.
(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).
* * *
Delta Air Lines and Northwest Airlines carry a 'B/Stable/--'
corporate ratings from Standard & Poor's. They also continue to
carry 'B2' corporate family ratings from Moody's and "B-" LT
Issuer Default rating from Fitch.
S&P said at the end of February 2011 that its ratings on Atlanta,
Ga.-based Delta Air Lines Inc. reflect its highly leveraged
financial profile, with significant intermediate-term debt
maturities, and the risks associated with participation in the
price-competitive, cyclical, and capital-intensive airline
industry. The ratings also incorporate the reduced debt load and
operating costs Delta achieved while in Chapter 11 in 2005-2007,
and its enhanced competitive position and synergistic
opportunities associated with its 2008 merger with Northwest
Airlines Corp. (parent of Northwest Airlines Inc.), with the two
airlines fully integrated in December 2009. S&P characterize
Delta's business risk profile as weak and its financial risk
profile as highly leveraged.
DINEEQUITY INC: Bank Debt Trades at 4% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which DineEquity, Inc.,
is a borrower traded in the secondary market at 95.55 cents-on-
the-dollar during the week ended Friday, Aug. 19, 2011, a drop of
1.70 percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 300 basis points above LIBOR to borrow
under the facility. The bank loan matures on Oct. 25, 2017, and
carries Moody's Ba2 rating and Standard & Poor's BB- rating. The
loan is one of the biggest gainers and losers among 64 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
About DineEquity
DineEquity, Inc. (NYSE:DIN) -- http://www.dineequity.com/-- owns
and operates two restaurant concepts: Applebee's Neighborhood
Grill and Bar (Applebee's) in the bar and grill segment of the
casual dining category of the restaurant industry, and
International House of Pancakes (IHOP) in the family dining
category of the restaurant industry. The Company's segments
include franchise operations, company restaurant operations,
rental operations and financing operations. Within each segment,
as applicable, the Company operates two restaurant concepts:
Applebee's and IHOP. As of December 31, 2010, the franchise
operations segment consisted of 1,701 restaurants operated by
Applebee's franchisees in the United States, one United States
territory and 16 countries outside of the United States, and 1,493
restaurants operated by IHOP franchisees and area licensees in the
United States, two United States territories and two countries
outside of the United States.
DineEquity posted net income of $348,000 on total segment revenues
of $268.3 million for the second quarter ended June 30, 2011, as
compared with net income $14.0 million on total segment revenues
of $340.1 million for the prior year period. For the six months
ended June 30, 2011, DineEquity posted net income of $30.0 million
on total segment revenues of $568.5 million, as compared with net
income $33.7 million on total segment revenues of $698.2 million
for the prior year period.
At June 30, 2011, DineEquity's unaudited balance sheet showed
total assets of $2.66 billion, total liabilities of $2.53 billion,
and total stockholders' equity of $126.2 million.
DOLE FOOD: Fitch Lifts Long-Term Issuer Default Rating to 'B+'
--------------------------------------------------------------
Fitch Ratings has upgraded the following ratings of Dole Food Co.,
Inc. and its wholly-owned subsidiary Solvest Ltd.
Dole (Operating Company)
-- Long-term Issuer Default Rating (IDR) to 'B+' from 'B';
-- Asset-based (ABL) revolver due 2016 to 'BB+/RR1' from
'BB/RR1';
-- Secured term loan B due 2018 to 'BB+/RR1' from 'BB/RR1';
-- 13.875% third-lien notes due 2014 to 'BB/RR2' from 'BB-/RR2';
-- 8% third-lien notes due 2016 to 'BB/RR2' from 'BB-/RR2'.
Solvest Ltd. (Bermuda-Based Subsidiary)
-- Long-term IDR to 'B+' from 'B';
-- Secured term loan C due 2018 to 'BB+/RR1' from 'BB/RR1'.
Additionally, Fitch has affirmed the following rating:
Dole (Operating Company)
-- 8.75% senior unsecured notes due 2013 at 'B-'. The recovery
rating for this debt has been revised to RR6 from RR5. The
revision is due to the heavy amount of secured debt in the
company's capital structure.
The Ratings Outlook is Positive. At June 18, 2011, Dole had $1.6
billion of total debt.
Rating Rationale:
The upgrade is due to continued improvement in Dole's credit
profile, management's focus on debt reduction, and the company's
good financial flexibility. Furthermore, Fitch believes Dole's
current liquidity and internal cash flow generation will more than
adequately cover its working capital, capital expenditures and
other funding requirements in the near term.
Dole's credit statistics are in line with Fitch's expectations.
For the latest 12 month (LTM) period ended June 18, 2011, total
debt-to-operating EBITDA was 4.2 times (x), down from 5.3x at Jan.
1, 2011. Operating EBITDA-to-gross interest expense was 2.4x, up
from 1.9x and FFO fixed charge coverage was 1.6x, versus 1.4x at
year end. Dole's metrics are benefiting from significant year-
over-year improvement in the company's fresh fruit operations and
modest debt reduction.
Free cash flow (FCF- defined as cash flow from operations less
capital expenditures and dividends) is also in line with Fitch's
expectations. During the LTM period, Dole generated $42 million
of FCF. Liquidity at June 18, 2011 totaled $441 million and
consisted of $239 million of cash and $202 million of revolver
availability. Upcoming maturities are limited to $155 million of
senior unsecured notes due in 2013 and approximately $2.25 million
of quarterly debt amortization.
The 'RR1' rating on Dole's secured credit facilities indicates
that Fitch views recovery prospects on these obligations as
outstanding at 91% - 100%. Similarly, the 'RR2' rating on the
firm's third-lien notes suggests that recovery rates would be
viewed as superior in the 71% - 90% range if Dole were in a
distressed situation. However, the 'B-/RR6' rating on the
company's senior unsecured notes is due to Fitch's opinion that
recovery would be poor in the 0% - 10% range if the company had to
restructure its debt.
Ratings continue to reflect Dole's mid-single digit consolidated
operating margin and incorporate the effects periodic operating
earnings volatility can have on profitability. With approximately
40% of the company's Fresh Fruit segment revenue coming from its
banana operations, fluctuating banana prices, particularly in
Europe, along with high fruit, fuel and packaging cost can
significantly affect Dole's cash flow.
Dole's restructuring efforts in its fresh fruit operations should
help minimize the future effect of pricing volatility and
inflationary pressures. The company realized $14 million of the
total $37 million of annual cash savings expected for 2011 during
the first half of fiscal 2011.
Positive Ratings Outlook and Rating Triggers:
Fitch believes Dole will continue to gradually make progress
towards its goal of 2.0x net leverage. Per Fitch's calculations,
net leverage was about 3.5x at June 11, 2011. Dole's financial
strategy includes utilizing FCF and asset sale proceeds to reduce
debt. As such, an additional upgrade could occur if leverage
remains below 4.0x and the firm generates FCF in most periods.
Significant declines in operating cash flow and more aggressive
policies related to acquisitions, dividends or share repurchases
would be viewed negatively.
Dole is targeting $50 million of asset sales in 2011. However,
Fitch expects FCF during the second half of 2011 to be negatively
affected by higher cash taxes associated with an IRS settlement.
Fees from the refinancing transaction discussed below and premiums
in connection with the early retirement of a portion of the
company's 13.875% notes will also reduce cash flow. Dole
repurchased $38 million of these notes subsequent to the most
recent quarter end.
July 8, 2011 Credit Agreement Refinancing:
As a result of its recent refinancing, Dole has extended
maturities and has eliminated certain financial maintenance
covenants in its secured credit facilities. In addition, the
company now has more favorable pricing on portions of its
agreements.
Dole's $350 million ABL facility expires on July 8, 2016 versus
Mar. 2, 2014 previously. The maturity date on $900 million of
secured term loans have been pushed out to July 8, 2018 from Mar.
3, 2017. Dole's only financial covenant, per terms of its ABL
agreement, is a springing fixed charge coverage ratio of at least
1.0x if availability is below a certain amount. Prior to the
amendment, the company's term loans included a maximum total
leverage and a minimum interest coverage ratio requirement.
The LIBOR spread on Dole's ABL revolver declined by 125 basis
points (bps) to a range of 1.75% - 2.25% depending on average
historical borrowing availability. Moreover, the LIBOR floor on
the company's term loans was reduced to 1.25% from 1.75% even
though the LIBOR-based margin increased 50 bps to 3.75%. Dole has
the opportunity to reduce the term loan margin by 25 bps after
Dec. 31, 2011 if total leverage is 3.5x or lower.
Dole's ABL has a first-priority lien on U.S. account receivables
and inventory and a second-priority lien on real and intangible
property. The term loans are secured on a first priority basis by
real and intangible property and on a second priority basis by ABL
collateral. Lastly, third-lien notes have the benefit of a lien on
certain U.S. assets of Dole that is junior to the liens of the
company's senior secured credit facilities. The company's debt is
guaranteed by substantially all U.S. subsidiaries.
DOT VN: Incurs $5 Million Net Loss in Fiscal 2011
-------------------------------------------------
DOT VN, Inc., filed with the U.S. Securities and Exchange
Commission its Annual Report on Form 10-K reporting a net loss of
$5 million on $1.01 million of revenue for the year ended
April 30, 2011, compared with a net loss of $7.32 million on $1.12
million of revenue during the prior year.
The Company's balance sheet at April 30, 2011, showed
$2.76 million in total assets, $8.77 million in total liabilities,
and a $6.01 million total shareholders' deficit.
PLS CPA, in San Diego, Calif., noted that the Company's losses
from operations raise substantial doubt about its ability to
continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
http://is.gd/UQOTCE
About Dot VN
Dot VN, Inc. (OTC BB: DTVI) -- http://www.DotVN.com/-- provides
Internet and telecommunication services for Vietnam and operates
and manages Vietnam's innovative online media web property,
www.INFO.VN. The Company is the "exclusive online global domain
name registrar for .VN (Vietnam)." Dot VN is the sole distributor
of Micro-Modular Data Centers(TM) solutions and E-Link 1000EXR
Wireless Gigabit Radios to Vietnam and Southeast Asia region. Dot
VN is headquartered in San Diego, California with offices in
Hanoi, Danang and Ho Chi Minh City, Vietnam.
Dot VN was incorporated in the State of Delaware on May 27, 1998,
under the name Trincomali Ltd.
DUANE READE: Former CEO Gets 3 Years Prison for Inflating Earnings
------------------------------------------------------------------
Chad Bray, writing for The Wall Street Journal, reports that
Anthony Cuti, Duane Reade Inc.'s former CEO, was sentenced to
three years in prison Monday after he was convicted last year in a
scheme to inflate the company's income and misrepresent its
expenses. Federal prosecutors in Manhattan had alleged Mr. Cuti
and William Tennant, its former chief financial officer, inflated
the company's income through fraudulent real-estate transactions
and artificially reduce its expenses through fictitious credits
from vendors who didn't work for the company. The scheme
allegedly ran from November 2000 to June 2005.
The Journal relates Mr. Cuti, 65, was found guilty in June 2010 of
five criminal charges, including conspiracy, securities fraud and
making false filings with the U.S. Securities & Exchange
Commission. Mr. Tennant, 64, was convicted of securities fraud
and acquitted of one count of conspiracy at the time. He is
expected to be sentenced on Aug. 29.
About Duane Reade
Founded in 1960, Duane Reade is the largest drug store chain in
New York City, offering a wide variety of prescription and over-
the-counter drugs, health and beauty care items, cosmetics,
convenience foods, greeting cards and photofinishing. As of
June 27, 2009, the Company operated 253 stores.
At Sept. 26, 2009, Duane Reade Holdings, Inc., had $725,237,000 in
total assets against $867,282,000 in total liabilities, resulting
in stockholders' deficit of $142,045,000.
Moody's Investors Service had placed Duane Reade's ratings in deep
junk territory: Corporate Family Rating at Caa1, Probability of
Default Rating at Caa1, and $300 million 11.75% guaranteed senior
secured notes due 2015 at Caa1 (LGD 4, 57%). Those ratings were
withdrawn upon full repayment of Duane Reade's rated debt
following the company's acquisition by Walgreen Co. for
approximately $1.075 billion in February 2010.
ECCO DRILLING: Plan Trustee Wins $57T Judgment in Avoidance Suit
----------------------------------------------------------------
Bankruptcy Judge Bill Parker ruled that J. Gregg Pritchard,
creditor-trustee under the confirmed plan of liquidation of Ecco
Drilling Co., Ltd., is entitled to summary judgment that he should
recover from Wright Capital Corporation, the preferential payment
of $57,500, plus pre-judgment interest in the amount of $329.07,
for an aggregate award of $57,829.07, together with post-judgment
interest at the federal post-judgment interest rate of 0.16% until
paid. The case is Z. Gregg Pritchard, Creditor-Trustee Under the
Confirmed Plan of Liquidation of Ecco Drilling Co., Ltd., v.
Wright Capital Corporation, Adv. Proc. No. 09-6036 (Bankr. E.D.
Tex.). A copy of Judge Parker's Aug. 12, 2011 Memorandum of
Decision is available at http://is.gd/mrLjlZfrom Leagle.com.
Based in Tyler, Texas, Ecco Drilling Company, Ltd., filed for
Chapter 11 bankruptcy (Bankr. E.D. Tex. Case No. 07-60987) on
Nov. 23, 2007. The Debtor offers oil well drilling and gas well
drilling services. Judge Bill Parker presides over the case.
Jason R. Searcy, Esq., served as the Debtor's counsel. In its
petition, the Debtor estimated $1 million to $100 million in both
assets and debts.
EFD LTD: Reorganization Plan Confirmation Hearing Set for Nov. 21
-----------------------------------------------------------------
The Hon. Craig A. Gargotta of the U.S. Bankruptcy Court for the
Western District of Texas will convene a hearing on Nov. 21, 2011,
at 1:30 p.m., to consider the confirmation of EFD, LTD. d/b/a
Blanco San Miguel's proposed Plan of Reorganization.
Any objection and ballots accepting or rejecting the Plan are due
Nov. 11, 2011, at 5:00 p.m. Central Standard Time.
All ballots will be returned to the Debtor's counsel at:
HOHMANN, TAUBE & SUMMERS, LLP
Attn: EFD Balloting
100 Congress Ave, Suite 1800
Austin, TX 78701
Fax: (512) 472-5997
As reported in the Troubled Company Reporter on July 1, 2011, the
Plan provides for these treatment and classification of claims:
Class I - Administrative Claims will receive either (i) the
amount of the Allowed Claim in one cash payment or
other treatment as may be agreed upon.
Class II - Priority Non-tax Claims will receive payment of its
Allowed Claim in full. Class II is impaired.
Class III - Priority Tax Claims. The ad valorem tax claims of
Blanco County ($8,246) and Burnet County ($135) will
be paid in full and in cash on the Effective Date.
Class IV - Claim of Capital Farm Credit. The holder of Class
IV Claim will receive sufficient acreage selected by
the Debtor based upon the Court's valuation of the
Property, along with all entitlements related to that
Property, in satisfaction of its claim. Upon
conveyance of the Conveyed Property, the claim and
the indebtedness owed to the Class IV holder will be
deemed paid in full and satisfied. The Class IV
Claim holder will also receive an easement for access
to the Conveyed Property. The Debtor will also
release all claims owed by the Estate against CFC.
The Class is impaired.
Class V - Claim of Dale and Rita Steitle. The Allowed Claim of
the Class V holder, consisting of debt approximately
$2.75 million, will be satisfied by a return of the
property securing repayment of that indebtedness to
the Class V Claim holder, at which time the claim and
indebtedness will be deemed paid in full and
satisfied. The Class is impaired.
Class VI - General Unsecured Claims. Each holder of a Class VI
General Unsecured Claim will receive payment in full
for their allowed unsecured in cash and without
interest no less than one year from the Effective
Date.
Class VII - Equity Interests. Holders of Equity Interests of
the Debtor will retain their Interests, but will not
receive any distributions or any other property on
account of those interests until all senior classes
are paid in full.
A full-text copy of the Disclosure Statement, dated June 23, 2011,
is available for free at:
http://bankrupt.com/misc/EFDLTD_disclosurestatement.pdf
About EFD, Ltd.
Austin, Texas-based EFD, Ltd., dba Blanco San Miguel, fdba Blanco
San Miguel, Ltd., filed for Chapter 11 bankruptcy protection
(Bankr. W.D. Tex. Case No. 11-10846) on April 5, 2011. Eric J.
Taube, Esq., at Hohmann Taube & Summers, LLP, in Austin, Texas,
serves as the Debtor's bankruptcy counsel. The Company disclosed
$128,207,835 in assets and $30,395,205 in liabilities as of the
Chapter 11 filing.
The U.S. Trustee has not yet appointed an official committee of
unsecured creditors. The U.S. Trustee reserves the right to
appoint such a committee should interest developed among the
creditors.
ELLICOTT SPRINGS: Court Converts Case to Chapter 7
--------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado has
converted the Chapter 11 case of Ellicott Springs Resources, LLC,
to Chapter 7 of the Bankruptcy Code.
The Order was entered on July 29, 2011.
About Ellicott Springs
Colorado Springs, Colorado-based Ellicott Springs Resources, LLC,
filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case
No. 10-13116) on Feb. 19, 2010. The Company disclosed $21,940,030
in assets and $8,411,246 in liabilities as of the Chapter 11
filing.
Ellicott Springs Development, LLC; PLW, Inc. (Case No. 10-13114);
and Rodney J. Preisser (Case No. 10-13110), the Debtor's
affiliates are also based in Colorado Springs, Colorado, and each
estimated assets and debts at $10 million to $50 million.
Benjamin H. Shloss, Esq., David M. Miller, Esq., and Lee M.
Kutner, Esq., at Kutner Miller Brinen PC, in Denver, Colorado,
represented the Debtors. Their services were terminated on
June 1, 2011.
On Jan. 11, 2011, the Court vacated its order for joint
administration and directed separate administration of Chapter 11
estates.
ENTEGRA TC: S&P Drops 'CCC+' on 2nd-Lien Debt After Refinancing
---------------------------------------------------------------
Standard & Poor's Rating Services withdrew its CCC+/Negative
rating on U.S. power generator Entegra TC LLC's second-lien debt
facilities following refinancing.
The project's second-lien debt consisted of a $450 million second-
lien senior term loan issued in 2007 and due 2014 ($251 million
outstanding as of Dec. 31, 2010). The project refunded the debt
with a portion of the proceeds from two asset sales, about $140
million in November 2010 and about $106 million in July 2011, and
a debt issuance in August 2011. "We also withdrew the rating on
the $30 million second-lien synthetic revolving credit facility
for working capital due 2014 that was terminated in conjunction
with the November 2010 asset sale. We also withdrew our '1'
recovery rating on the second-lien debt facilities," S&P related.
The project's unrated first-lien letter of credit facility and
unrated third-lien payment-in-kind senior term facility remain
outstanding.
EPICEPT CORP: Incurs $4.3 Million Net Loss in Second Quarter
------------------------------------------------------------
EpiCept Corporation filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting a net loss
of $4.34 million on $224,000 of total revenue for the three months
ended June 30, 2011, compared with a net loss of $4.89 million on
$251,000 of total revenue for the same period during the prior
year.
The Company also reported a net loss of $6.81 million on $462,000
of total revenue for the six months ended June 30, 2011, compared
with a net loss of $9.39 million on $446,000 of total revenue for
the same period a year ago.
The Company's balance sheet at June 30, 2011, showed
$16.84 million in total assets, $26.57 million in total
liabilities, and a $9.72 million total stockholders' deficit.
The Company's recurring losses from operations and the Company's
stockholders' deficit raise substantial doubt about its ability to
continue as a going concern and, as a result, the Company's
independent registered public accounting firm, Deloitte & Touche
LLP, in Parsippany, New Jersey, included an explanatory paragraph
in its report on the Company's consolidated financial statements
for the year ended Dec. 31, 2010, which was included in our Annual
Report on Form 10-K, with respect to this uncertainty.
"We are encouraged by the clinical, regulatory and commercial
progress we made during the second quarter," commented Jack
Talley, president and chief executive officer of EpiCept.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/zeATfn
About EpiCept Corporation
Tarrytown, N.Y.-based EpiCept Corporation (Nasdaq and Nasdaq OMX
Stockholm Exchange: EPCT) -- http://www.epicept.com/-- is focused
on the development and commercialization of pharmaceutical
products for the treatment of cancer and pain. The Company's lead
product is Ceplene(R), approved in the European Union for the
remission maintenance and prevention of relapse in adult patients
with Acute Myeloid Leukemia (AML) in first remission. In the
United States, a pivotal trial is scheduled to commence in 2011.
The Company has two other oncology drug candidates currently in
clinical development that were discovered using in-house
technology and have been shown to act as vascular disruption
agents in a variety of solid tumors. The Company's pain portfolio
includes EpiCept(TM) NP-1, a prescription topical analgesic cream
in late-stage clinical development designed to provide effective
long-term relief of pain associated with peripheral neuropathies.
The Company reported a net loss of $15.54 million on $994,000 of
revenue for the year ended Dec. 31, 2010, compared with a net loss
of $38.81 million on $414,000 of revenue during the prior year.
EVERGREEN SOLAR: Seeks to Retain Pachulski Stang as Co-Counsel
--------------------------------------------------------------
BankruptcyData.com reports that Evergreen Solar filed with the
U.S. Bankruptcy Court motions to employ:
* Pachulski Stang Ziehl & Jones (Contact: Laura Davis Jones) as
co-counsel at hourly rates ranging from $245 to $895,
* Bingham McCutchen (Contact: Ronald J. Silverman) as attorney
at these hourly rates: partner at $605 to $1,095, of counsel at
$425 to $1,085, counsel/associate at $375 to $730,
paraprofessional at $135 to $390 and staff attorney at $185 to
$320 and
* Zolfo Cooper (Contact: Donald W. Reilly) as bankruptcy
consultant and special financial advisor at these hourly rates:
managing director at $775 to $825, professional staff at 230 to
695 and support personnel at $55 to $295.
About Evergreen Solar
Evergreen Solar, Inc. -- http://www.evergreensolar.com/--
develops, manufactures and markets String Ribbon solar power
products using its proprietary, low-cost silicon wafer technology.
The Company's patented wafer manufacturing technology uses
significantly less polysilicon than conventional processes.
Evergreen Solar's products provide reliable and environmentally
clean electric power for residential and commercial applications
globally.
The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy
(Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge
Mary F. Walrath. The Company's balance sheet at April 2, 2011,
showed $373,972,000 in assets, $455,506,000 in total liabilities,
and a stockholders' deficit of $81,534,000.
Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham
McCutchen LLP, serve as general bankruptcy counsel to the Debtor.
Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski
Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is
the financial advisor. Epiq Bankruptcy Solutions has been tapped
as claims agent.
In conjunction with the Chapter 11 filing, the Company entered
into a restructuring support agreement with certain holders of
more than 70% of the outstanding principal amount of the Company's
13% convertible senior secured notes. As part of the bankruptcy
process the Company will undertake a marketing process and will
permit all parties to bid on its assets, as a whole or in groups
pursuant to 11 U.S.C. Sec. 363. An entity formed by the
supporting noteholders, ES Purchaser, LLC, entered into an asset
purchase agreement with the Company to serve as a "stalking-horse"
and provide a "credit-bid" pursuant to the Bankruptcy Code for
assets being sold.
The supporting noteholders are represented by Michael S. Stainer,
Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer &
Feld LLP, in New York.
FIRST CHOICE BANK: Closed; Inland Bank & Trust Assumes Deposits
---------------------------------------------------------------
First Choice Bank of Geneva, Ill., was closed Friday, Aug. 19,
2011, by the Illinois Department of Financial and Professional
Regulation - Division of Banking, which appointed the Federal
Deposit Insurance Corporation as receiver. To protect the
depositors, the FDIC entered into a purchase and assumption
agreement with Inland Bank & Trust of Oak Brook, Ill., to assume
all of the deposits of First Choice Bank.
The sole branch of First Choice Bank will reopen during normal
business hours as a branch of Inland Bank & Trust. Depositors of
First Choice Bank will automatically become depositors of Inland
Bank & Trust. 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
up to applicable limits. Customers of First Choice Bank should
continue to use their existing branch until they receive notice
from Inland Bank & Trust that it has completed systems changes to
allow other Inland Bank & Trust branches to process their accounts
as well.
As of June 30, 2011, First Choice Bank had around $141.0 million
in total assets and $137.2 million in total deposits. In addition
to assuming all of the deposits of the failed bank, Inland Bank &
Trust agreed to purchase essentially all of the assets.
Customers with questions about the transaction should call the
FDIC toll-free at 1-800-517-8236. Interested parties also can
visit the FDIC's Web site at
http://www.fdic.gov/bank/individual/failed/firstchoice-il.html
The FDIC estimates that the cost to the Deposit Insurance Fund
will be $31.0 million. Compared to other alternatives, Inland
Bank & Trust's acquisition was the least costly resolution for the
FDIC's DIF. First Choice Bank is the 68th FDIC-insured
institution to fail in the nation this year, and the seventh in
Illinois. The last FDIC-insured institution closed in the state
was Bank of Shorewood, Shorewood, on August 5, 2011.
FIRST SOUTHERN NATIONAL: Closed; Heritage Bank Assumes Deposits
---------------------------------------------------------------
First Southern National Bank of Statesboro, Ga., was closed
Friday, Aug. 19, 2011, by the Office of the Comptroller of the
Currency, which appointed the Federal Deposit Insurance
Corporation as receiver. To protect the depositors, the FDIC
entered into a purchase and assumption agreement with Heritage
Bank of the South in Albany, Ga., to assume all of the deposits of
First Southern National Bank.
The sole branch of First Southern National Bank will reopen during
regular banking hours as a branch of Heritage Bank of the South.
Depositors of First Southern National Bank will automatically
become depositors of Heritage Bank of the South. 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 up to applicable limits.
Customers of First Southern National Bank should continue to use
their existing branch until they receive notice from Heritage Bank
of the South that it has completed systems changes to allow other
Heritage Bank of the South branches to process their accounts as
well.
As of June 30, 2011, First Southern National Bank had around
$164.6 million in total assets and $159.7 million in total
deposits. Heritage Bank of the South will pay the FDIC a premium
of 1.0% to assume all of the deposits of First Southern National
Bank. In addition to assuming all of the deposits of the failed
bank, Heritage Bank of the South agreed to purchase essentially
all of the assets.
The FDIC and Heritage Bank of the South entered into a loss-share
transaction on $115.7 million of First Southern National Bank's
assets. Heritage Bank of the South 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, please visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html
Customers with questions about the transaction should call the
FDIC toll-free at 1-800-517-1846. Interested parties also can
visit the FDIC's Web site at
http://www.fdic.gov/bank/individual/failed/firstsouthern-ga.html
The FDIC estimates that the cost to the Deposit Insurance Fund
will be $39.6 million. Compared to other alternatives, Heritage
Bank of the South's acquisition was the least costly resolution
for the FDIC's DIF. First Southern National Bank is the 67th
FDIC-insured institution to fail in the nation this year, and the
seventeenth in Georgia. The last FDIC-insured institution closed
in the state was High Trust Bank, Stockbridge, on July 15, 2011.
FLORIDA GAMING: Incurs $4.6 Million Net Loss in Second Quarter
--------------------------------------------------------------
Florida Gaming Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss of $4.64 million on $2 million of total operating revenue
for the three months ended June 30, 2011, compared with a net loss
of $1.82 million on $2.65 million of total operating revenue for
the same period a year ago.
The Company also reported a net loss of $6.37 million on $4.29
million of total operating revenue for the six months ended
June 30, 2011, compared with a net loss of $3.17 million on $5.78
million of total operating revenue for the same period during the
prior year.
The Company's balance sheet at June 30, 2011, showed $102.02
million in total assets, $113.82 million in total liabilities and
a $11.80 million total stockholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/FjLrl9
About Florida Gaming
Florida Gaming Corporation operates live Jai Alai games at
frontons in Ft. Pierce, and Miami, Florida through its Florida
Gaming Centers, Inc. subsidiary. The Company also conducts
intertrack wagering (ITW) on jai alai, horse racing and dog racing
from its facilities. Poker is played at the Miami and Ft. Pierce
Jai-Alai, and dominoes are played at the Miami Jai-Alai. In
addition, the Company operates Tara Club Estates, Inc., a
residential real estate development located near Atlanta in Walton
County, Georgia. Approximately 46.2% of the Company's common
stock is controlled by the Company's Chairman and CEO either
directly or beneficially through his ownership of Freedom Holding,
Inc. The Company is based in Miami, Florida.
The Company reported a net loss of $4.84 million on $4.11 million
of Jai-Alai Mutuel revenue for the year ended Dec. 31, 2010,
compared with a net loss of $4.87 million on $6.85 million of Jai-
Alai Mutuel revenue during the prior year.
As reported by the TCR on April 7, 2011, King + Company, PSC, in
Louisville, Kentucky, noted that the Company has suffered
recurring losses from operations and cash flow deficiencies which
raise substantial doubt about its ability to continue as a going
concern.
FRANKLIN CREDIT: Reports $31.8 Million Second Quarter Net Income
----------------------------------------------------------------
Franklin Credit Holding Corporation filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q
reporting net income of $31.83 million on $52.81 million of total
revenues for the three months ended June 30, 2011, compared with a
net loss of $13.03 million on $12.13 million of total revenues for
the same period a year ago.
The Company also reported net income of $46.19 million on $87.80
million of total revenues for the six months ended June 30, 2011,
compared with a net loss of $19.68 million on $31.64 million of
total revenues for the same period during the prior year.
The Company's balance sheet at June 30, 2011, showed $25.34
million in total assets, $828.87 million in total liabilities and
a $803.53 million total stockholders' deficit.
The Company reported a net loss of $55.27 million on
$41.74 million of total revenue for the year ended Dec. 31, 2010,
compared with a net loss of $357.82 million on $244.75 million of
total revenue during the prior year.
As reported by the TCR on April 4, 2011, Marcum LLP, in New York,
noted that the Company's recurring losses from operations and
stockholders' deficit raise substantial doubt about its ability to
continue as a going concern.
The Company's quarterly report for the period ending June 30,
2011, was not filed timely due to certain technical difficulties
in making format changes to the document immediately prior to
review and submission, as well as the high volume of filings
handled by the Company's Edgar vendor prior to 5:30 p.m. EDT.
A full-text copy of the Company's Quarterly Report is available at
no charge at http://is.gd/6uHMb2
Potential FCMC Spin Off
The Company anticipates that it will break out its mortgage
servicing subsidiary, Franklin Credit Management Corporation, from
Franklin Holding's consolidated group as a separate company
through some form of "spin-off" type of transaction, preferably
around the end of 2011. It is the Company's objective to spin off
its 80% ownership of FCMC to the stockholders of Franklin Credit
Holding Corporation through some form of separation such as a
spin-off type transaction or to negotiate a pre-packaged
bankruptcy of FCHC and its subsidiary companies with major
stakeholders that would include such a spin-off of FCMC, either of
which would result in FCMC emerging as a separate publicly-owned
company.
During the quarter ended Sept. 30, 2010, the Company and FCMC
entered into a series of transactions with The Huntington National
Bank facilitating sales by the Bank's Trust to third parties of
substantially all of the loans underlying the trust certificates
issued by the Trust. The September 2010 transaction with the
Bank, which occurred simultaneously with the sale of substantially
all of the subordinate-lien consumer loans owned by a trust of the
Bank, resulted in, subject to the final approval of the Bank, the
Bank's consent to proceed with a spin off of the ownership of
FCMC.
There can be no assurance, however, that the Company's board of
directors will approve or FCMC will be successful in completing a
separation of FCMC as tax, shareholder, legal, regulatory,
accounting or other matters could present significant impediments
to accomplishing such a separation.
The Company's investment in a real estate investment trust
securities, which were surrendered to the Bank on May 23, 2011,
included preferred and common stocks of the Bank's REIT. As a
result of the Company voluntarily surrendering and transferring to
the Bank the REIT Securities, the Company's principal source of
cash flow to meet its obligations with respect to its outstanding
indebtedness remaining after the surrender of the REIT Securities,
which at June 30, 2011, was approximately $825 million, was
eliminated.
According to the Company, regardless of whether a spin-off of FCMC
is effectuated, the other direct and indirect subsidiaries of
Franklin Holding that are obligors under the Legacy Debt are
essentially insolvent and unable to pay off the balance of Legacy
Debt owed to the Bank.
About Franklin Credit Holding
Franklin Credit Holding Corporation (OTC BB: FCMC)
-- http://www.franklincredit.com/-- is a specialty consumer
finance company primarily engaged in the servicing and resolution
of performing, reperforming and nonperforming residential mortgage
loans, including specialized loan recovery servicing, and in the
analysis, pricing, due diligence and acquisition of residential
mortgage portfolios for third parties. The Company's executive,
administrative and operations offices are located in Jersey City,
N.J.
FREEDOM COMMS: MediaNews Postpones Attempts to Get Financing
------------------------------------------------------------
Mike Spector and Russell Adams, writing for The Wall Street
Journal, report that people familiar with the matter said unstable
markets have stalled a deal for MediaNews Group Inc. to buy
Freedom Communications Inc.'s newspapers.
The sources told the Journal the inhospitable debt markets forced
MediaNews to postpone attempts to get financing for the deal.
MediaNews and its advisers believe financing terms would be
prohibitive given recent market turmoil and a challenging outlook
for newspaper companies, the people said.
The sources told the Journal MediaNews has been in discussions for
several months with Freedom about acquiring the Orange County
Register and more than 100 other newspapers for around $350
million. The deal would have left Freedom's television stations
to be sold to another suitor.
The sources added that MediaNews and Freedom could revisit a deal
in coming weeks, but that will depend on market conditions. A
Freedom spokesman said the company "has reached no resolution or
agreement and is continuing to talk with a number of potential
suitors."
About Affiliated Media
Denver, Colorado-based Affiliated Media, Inc., is the holding
company for the MediaNews Group family of newspapers, the nation's
second-largest newspaper publisher by circulation and owner of 54
daily newspapers, over 100 non-daily newspapers, as well as Web
sites, television and radio broadcasters that serve markets in 12
states.
The Company filed for Chapter 11 bankruptcy protection (Bankr. D.
Delaware Case No. 10-10202) on Jan. 22, 2010. Hughes
Hubbard & Reed LLP, served as the Debtor's general bankruptcy
counsel, while Daniel B. Butz, Esq., at Morris, Nichols, Arsht &
Tunnell LLP, served as the Debtor's co-bankruptcy counsel. Carl
Marks Advisory Group LLC acted as the Debtor's restructuring
advisor; Rothschild Inc., the Debtor's financial advisor; and Epiq
Bankruptcy Solutions, LLC, the Debtor's claims agent. The Company
estimated $100 million to $500 million in assets and $500 million
to $1 billion in liabilities.
The Hon. Kevin J. Carey confirmed the Company's plan of
reorganization on March 4, 2010, less than six weeks after
the bankruptcy filing. The Company had reached agreement
pre-bankruptcy with its lenders on terms of the plan, which
reduces the Company's debt from $930 million to $165 million and
involves no management change or change of control of the Company.
The Plan gives holders of senior notes aggregating $583.1 million
88% of the common stock, the proceeds of $150 million secured term
loan and certain cash payments. Holders of general unsecured
claims retain their claims or would be paid in full. Holders of
$326 million in subordinated notes would receive warrants to
purchase stock of the reorganized company. Holders of equity
interests were wiped out.
Affiliated Media emerged from Chapter 11 protection in March 2010.
About Freedom Communications
Freedom Communications, headquartered in Irvine, Calif., is a
national privately owned media company operating print
publications, broadcast television stations and interactive
businesses. The company's print portfolio includes approximately
100 daily and weekly publications, plus ancillary magazines and
other specialty publications. The broadcast company's stations --
five CBS, two ABC network affiliates and one CW affiliate -- reach
more than 3 million households across the country. The Company's
news, information and entertainment websites complement its print
and broadcast properties.
Freedom Communications filed for Chapter 11 protection (Bankr. D.
Del. Case No. 09-13046) on Sept. 1, 2009. Attorneys at Young
Conaway Stargatt & Taylor, and Latham & Watkins LLP served as
Chapter 11 counsel. Houlihan, Lokey, Howard & Zukin, Inc., served
as financial advisors while AlixPartners LLC served as
restructuring consultants. Logan & Co. served as claims and
notice agent.
Freedom Communications had $757 million in assets against debts of
$1.077 billion as of July 31, 2009.
The Bankruptcy Court confirmed Freedom Communications' Plan of
Reorganization on March 9, 2010. The Plan became effective
April 30, 2010. The Plan, which was supported by the Steering
Committee of the Company's secured lenders and the Official
Committee of Unsecured Creditors, eliminated $450 million of debt
from Freedom's balance sheet.
FUSION TELECOMMUNICATIONS: Borrows $33,000 from Director
--------------------------------------------------------
Fusion Telecommunications International, Inc., on Aug. 9, 2011,
borrowed $33,000 from Marvin S Rosen, a Director of the Company.
This note (a) is payable on demand in full upon ten days' notice
of demand from the lender, (b) bears interest on the unpaid
principal amount at the rate of 3.25% per annum, and (c) grants
the lender a collateralized security interest, pari passu with
other lenders, in the Company's accounts receivable. The proceeds
of this note are to be used primarily for general corporate
purposes.
About Fusion Telecommunications
New York City-based Fusion Telecommunications International, Inc.
(OTC BB: FSNN) is a provider of Internet Protocol ("IP") based
digital voice and data communications services to corporations and
carriers worldwide.
As reported by the TCR on April 26, 2011, Rothstein, Kass &
Company, P.C., in Roseland, New Jersey, expressed substantial
doubt about Fusion Telecommunications' ability to continue as a
going concern. The independent auditors noted that the Company
the Company has negative working capital balances, incurred
negative cash flows from operations and net losses since
inception, and has limited capital to fund future operations.
Fusion Telecommunications reported a net loss of $5.8 million on
$41.8 million of revenues for 2010, compared with a net loss of
$9.6 million on $40.9 million of revenues for 2009.
The Company's balance sheet at March 31, 2011, showed
$4.42 million in total assets, $13.55 million in total
liabilities, and a $9.12 million total stockholders' deficit.
FUSION TELECOMMUNICATIONS: Incurs $1.2MM Second Quarter Net Loss
----------------------------------------------------------------
Fusion Telecommunication International, Inc., filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
10-Q reporting a net loss of $1.20 million on $10.64 million of
revenue for the three months ended June 30, 2011, compared with a
net loss of $1.58 million on $9.72 million of revenue for the same
period during the prior year.
The Company also reported a net loss of $2.43 million on $20.84
million of revenue for the six months ended June 30, 2011,
compared with a net loss of $3.12 million on $19.31 million of
revenue for the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $4.81 million
in total assets, $14.33 million in total liabilities and a $9.52
million total stockholders' deficit.
As reported by the TCR on April 26, 2011, Rothstein, Kass &
Company, P.C., in Roseland, New Jersey, expressed substantial
doubt about Fusion Telecommunications' ability to continue as a
going concern. The independent auditors noted that the Company
the Company has negative working capital balances, incurred
negative cash flows from operations and net losses since
inception, and has limited capital to fund future operations.
Fusion Telecommunications reported a net loss of $5.8 million on
$41.8 million of revenues for 2010, compared with a net loss of
$9.6 million on $40.9 million of revenues for 2009.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/e2jRNX
About Fusion Telecommunications
New York City-based Fusion Telecommunications International, Inc.
(OTC BB: FSNN) is a provider of Internet Protocol ("IP") based
digital voice and data communications services to corporations and
carriers worldwide.
GRAPHIC PACKAGING: Bank Debt Trades at 4% Off in Secondary Market
-----------------------------------------------------------------
Participations in a syndicated loan under which Graphic Packaging
International, Inc., is a borrower traded in the secondary market
at 96.08 cents-on-the-dollar during the week ended Friday, Aug.
19, 2011, a drop of 1.46 percentage points from the previous week
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. The Company pays 200 basis points above
LIBOR to borrow under the facility. The bank loan matures on May
16, 2014, and carries Moody's Ba2 rating and Standard & Poor's
BBB- rating. The loan is one of the biggest gainers and losers
among 64 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Friday.
About Graphic Packaging
Graphic Packaging International, Inc., formerly known as Riverwood
International Corporation, offers paperboard and integrated
paperboard solutions to beverage and consumer products
multinationals. It provides paperboard and packaging machines.
It operates paper mills, converting facilities, and machinery
manufacturing facilities. Graphic Packaging International, Inc.
is a wholly owned subsidiary of Graphic Packaging Holding Company
headquartered in Marietta, Georgia
Graphic Packaging Holding Company (GPHC) (NYSE:GPK) --
http://www.graphicpkg.com/-- is a provider of packaging solutions
for a range of products to food, beverage and other consumer
products companies. The Company operates in three business
segments: paperboard packaging, multi-wall bag and specialty
packaging. GPHC operates in four geographic areas: the United
States/Canada, Central/South America, Europe and Asia Pacific. On
March 10, 2008, the businesses of Graphic Packaging Corporation
and Altivity Packaging, LLC, were combined through a series of
transactions. In June 2009, the Company announced that is sold
certain assets of the Handschy inks, coatings and varnishes
business to Sun Chemical. As of December 31, 2009, the Company
held 50% ownership interest in Rengo Riverwood Packaging, Ltd. In
2009, GPHC held 60% ownership interest in Graphic Hung Hing
Packaging Ltd. In April 2011, the Company acquired Sierra Pacific
Packaging, Inc.
GROVE STREET: Court Dismisses Chapter 11 Case
---------------------------------------------
At a hearing on July 28, 2011, U.S. Bankruptcy Court Chief Judge
ordered the dismissal of the Chapter 11 case of Grove Street
Realty Urban Renewal, LLC.
About Grove Street
Sewell, New Jersey-based Grove Street Realty Urban Renewal, LLC,
owns certain parcels of real property at 370 Grove Street in the
Township of West Deptford, County of Gloucester, New Jersey,
commonly known as RiverWinds Cove Apartments. The land consists
of improvements generally consisting of two buildings containing
in the aggregate approximately 215,832 square feet of Class A
residential apartment space, comprised of approximately 200 units,
and having approximately 259 parking spaces.
The Company filed for Chapter 11 bankruptcy protection (Bankr. D.
N.J. Case No. 10-30427) on July 1, 2010. Adrienne N. Roth, Esq.,
Albert A. Ciardi, III, Esq., and Jennifer E. Cranston, Esq., at
Ciardi Ciardi & Astin, P.C., in Philadelphia, Pa., assist the
Debtor in its restructuring effort. The Company estimated assets
and debts at $10 million to $50 million as of the Petition Date.
An Official Committee of Unsecured Creditors appointed in the case
is represented by Benesch, Friedlander, Coplan & Aronoff LLP.
GYMBOREE CORP: Bank Debt Trades at 11% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which The Gymboree
Corporation is a borrower traded in the secondary market at 88.85
cents-on-the-dollar during the week ended Friday, Aug. 19, 2011, a
drop of 1.34 percentage points from the previous week according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. The Company pays 412.5 basis points above LIBOR
to borrow under the facility. The bank loan matures on Feb. 23,
2018, and carries Moody's B1 rating and Standard & Poor's B
rating. The loan is one of the biggest gainers and losers among
64 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Friday.
The Gymboree Corporation (GYMB: Nasdaq) --
http://www.gymboree.com/-- is a specialty retailer operating
stores selling apparel and accessories for children under the
Gymboree, Gymboree Outlet, Janie and Jack and Crazy 8 brands, as
well as play programs for children under the Gymboree Play & Music
brand. The Company operates retail stores in the United States,
Canada and Puerto Rico in regional shopping malls and in selected
suburban and urban locations. As of January 30, 2010, the Company
conducted its business through five divisions: Gymboree, Gymboree
Outlet, Janie and Jack, Crazy 8, and Gymboree Play & Music. As of
January 30, 2010, the Company operated a total of 953 retail
stores, including 916 stores in the United States (593 Gymboree
stores, 139 Gymboree Outlet stores, 119 Janie and Jack shops, and
65 Crazy 8 stores), 34 Gymboree stores in Canada, 2 Gymboree
stores in Puerto Rico, and 1 Gymboree Outlet store in Puerto Rico.
HARBOUR EAST: Seeks to Hire Trust Global Realty as Broker
---------------------------------------------------------
Harbour East Development, Ltd., seeks authority from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Trust Group Realty, LLC as its non-exclusive sales and marketing
agent and real estate broker to assist in the leasing and sale of
certain of the Debtor's condominium units.
The Debtor also seeks the Court's approval with respect to the
termination of EWM Realty's representation of the Debtor as real
estate broker, nunc pro tunc to June 30, 2011. The Debtor and EWM
Realty agreed to terminate their Broker and Developer Agreement,
effective June 30.
The Debtor is the developer and owner of the luxury residential
condominium development known as CIELO on the Bay located at 7935
East Drive, North Bay Village. CIELO contains 35 residential
condominium units.
The Debtor needs a new broker to maintain access to the multiple
listing service to maintain the visibility of the Property on the
internet and in the brokerage community. The Debtor has
determined that it is in the best interest of the estate to retain
a broker only on select Condominium Units so as to preserve its
ability to self market the Property to independent leads and
existing tenants.
The Debtor is limiting the number of units offered for sale to two
units and the number of units offered for lease to one unit. In
the event the Broker is the procuring cause of a sale or lease of
a Condominium Unit that is not specifically identified in the
Listing Agreement, the Debtor seeks authority to substitute the
particular Condominium Units identified in the Listing Agreement.
According to the Debtor, this structure will preserve its ability
to negotiate with prospects with which it has an existing or
independent relationship, without obligating itself to pay
commission on such sales or leases.
The salient terms of the proposed retention agreement include:
* The Debtor will retain Trust Group Realty to exclusively
market for lease or sale three selected Condominium Units
for an initial period of four months;
* The Broker will not be entitled to any fee unless and
until the Debtor actually closes on the sale of, or
leases, a particular Condominium Unit within the scope of
the Agreement;
* The Debtor will generally pay the Broker a commission of
6% of the sale price of each particular Condominium Unit
and 8% of the gross value of any lease of each particular
Condominium Unit. Commissions may vary depending on the
participation of cooperating agents or brokers; and
* The Agreement excludes pending contracts and prospects.
Based on the affidavit of Madeleyne Sutton, Trust Group Realty has
not advised any parties-in-interest in connection with this
bankruptcy case. The Debtor believes that Trust Group Realty is a
disinterested person as the term is defined in Section 101(14) of
the Bankruptcy Code.
About Harbour East
Harbour East Development, Ltd., is the developer and owner of the
luxury residential condominium development known as CIELO on the
Bay located at 7935 East Drive, North Bay Village. CIELO contains
35 residential condominium units.
Harbour East filed for Chapter 11 bankruptcy (Bankr. S.D. Fla.
Case No. 10-20733) on April 22, 2010. Michael L. Schuster, Esq.,
who has an office in Miami, Florida, represents the Debtor. The
Company estimated assets and debts at $10 million to $50 million,
as of the Chapter 11 filing.
Judge Cristol denied the request of 7935 NBV LLC's request to
dismiss the case.
No creditors' committee has been appointed in the case. In
addition, no request for the appointment of a trustee or examiner
has been made.
HENRY COUNTY: Delays Filing of Quarterly Report on Form 10-Q
------------------------------------------------------------
Henry County Bancshares, Inc., requests an extension of time to
file its Form 10-Q for the period ended June 30, 2011, as it could
not complete the filing of its Form 10-Q on or before the
prescribed due date without unreasonable effort. The Company
needs additional time to receive the preliminary results of its
ongoing regulatory examination in order to complete the
compilation dissemination and review of the information required
to be presented in the Form 10-Q. The Company expects to file its
quarterly report on Form 10-Q on or before the fifth day following
the prescribed due date for the Company's Form 10-Q.
About Henry County
Stockbridge, Georgia-based Henry County Bancshares, Inc., is a
Georgia business corporation which operates as a bank holding
company. The Company was incorporated on June 22, 1982, for the
purpose of reorganizing The First State Bank to operate within a
holding company structure. The Bank is a wholly owned subsidiary
of the Company.
The Company's principal activities consist of owning and
supervising the Bank, which engages in a full service commercial
and consumer banking business, as well as a variety of deposit
services provided to its customers. Until Dec. 15, 2009, when it
suspended operations, the Company also conducted mortgage-lending
operations through the Bank's wholly owned subsidiary, First Metro
Mortgage Company. First Metro provided the Bank's customers with
a wide range of mortgage banking services and products in the same
primary market area as the Bank.
As reported by the TCR on April 6, 2011, Mauldin & Jenkins, LLC,
in Atlanta, Ga., expressed substantial doubt about Henry County
Bancshares' ability to continue as a going concern. The
independent auditors noted that the Company as suffered
significant losses from operations due to the economic downturn,
which has resulted in declining levels of capital.
The Company reported a net loss of $6.7 million on $10.0 million
of net interest income for 2010, compared with a net loss of
$36.6 million on $6.6 million of net interest income for 2009.
Other operating income was $3.9 million for 2010, compared with
$2.6 million for 2009.
The Company's balance sheet at March 31, 2011, showed
$574.87 million in total assets, $560.11 million in total
liabilities, and $14.76 million in total stockholders' equity.
IDO SECURITY: Delays Filing of Quarterly Report on Form 10-Q
------------------------------------------------------------
IDO Security Inc.'s quarterly report on Form 10-Q for the three
months ended June 30, 2011, could not be filed by the prescribed
due date of Aug. 15, 2011, because Company had not yet finalized
its treatment and disclosure of certain material events that
occurred during the quarter. As a result, the review of Company's
financial statements for the three months ended June 30, 2011, is
ongoing.
About IDO Security
IDO Security Inc. is engaged in the design, development and
marketing of devices for the homeland security and loss prevention
markets that are intended for use in security screening procedures
to detect metallic objects concealed on or in footwear, ankles and
feet through the use of electro-magnetic fields. The Company's
common stock trades on the OTC Bulletin Board under the symbol
IDOI. The Company is headquartered in New York City.
The Company reported a net loss of $7.78 million on $61,399 of
revenue for the year ended Dec. 31, 2010, compared with a net loss
of $6.40 million on $82,721 of revenue during the prior year.
The Company's balance sheet at March 31, 2011, showed $1.71
million in total assets, $18.38 million in total liabilities and a
$16.66 million total stockholders' deficiency.
At March 31, 2011, the Company had not achieved profitable
operations, had accumulated losses of $39.5 million (since
inception), a working capital deficiency of $17.1 million and
expects to incur further losses in the development of its
business. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As reported by the TCR on April 15, 2011, Rotenberg Meril Solomon
Bertiger & Guttilla, P.A., in Saddle Brook, New Jersey, expressed
substantial doubt about the Company's ability to continue as a
going concern, following the 2010 financial results. The
independent auditors noted that the Company has not achieved
profitable operations, has incurred recurring losses, has a
working capital deficiency and expects to incur further losses in
the development of the business.
IMAGE METRICS: Posts $3.4 Million Net Income in June 30 Quarter
---------------------------------------------------------------
Image Metrics, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q reporting net income
of $3.42 million on $5.87 million of revenue for the three months
ended June 30, 2011, compared with a net loss of $2.56 million on
$926,000 of revenue for the same period a year ago.
The Company also reported net income of $1.99 million on $6.85
million of revenue for the nine months ended June 30, 2011,
compared with a net loss of $9.18 million on $4.88 million of
revenue for the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $3.74 million
in total assets, $10.69 million in total liabilities and a $6.95
million total shareholders' deficit.
BDO USA, LLP, in Los Angeles, after auditing the Company's
financial statements for the year ended Sept. 30, 2010, expressed
substantial doubt about Image Metrics, Inc.'s ability to continue
as a going concern. The independent auditors noted that the
Company has suffered recurring losses from operations and has a
net capital deficiency.
The Company reported a net loss of $9.7 million on $5.9 million of
revenue for fiscal 2010, compared to a net loss of $6.8 million on
$4.0 million of revenue for fiscal 2009.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/Oaf9Al
About Image Metrics
Santa Monica, Calif.-based Image Metrics, Inc., provides
technology-based facial animation solutions to the interactive
entertainment industry. Using proprietary software and
mathematical algorithms that "read" human facial expressions, the
Company's technology converts video footage of real-life actors
into 3D computer generated animated characters. Examples of the
Company's facial animation projects include the 2008 "Grand Theft
Auto IV" video game, the 2009 computer generated aging of Brad
Pitt in the feature film "The Curious Case of Benjamin Button,"
the 2009 Black Eyed Peas' "Boom Boom Pow" music video, and the
2010 "Red Dead Redemption" video game.
The Company's key intellectual property consists of one patent
registered in the United States, four additional patents in
process, the identification of 16 potential new patents, and
significant well-documented trade secrets.
IMPERIAL CAPITAL: Wants Status Hearing, May Modify Plan
-------------------------------------------------------
BankruptcyData.com reports that Imperial Capital Bancorp filed a
request with the U.S. Bankruptcy Court that the Court conduct a
status conference regarding the Debtor's case instead of the
confirmation hearing currently scheduled for Sept. 22, 2011. The
Company tells the Court that it needs the hearing change because
it may need to modify the existing Chapter 11 Plan.
On June 16, 2011, the Court signed an order declaring the Debtors'
Disclosure Statement "not approved because Debtor's counsel has
not lodged an order and this order is not approved as to form."
The order continues, "While court is sympathetic that Debtor may
miss its confirmation hearing deadline, Debtor had ample
opportunity to lodge an order and chose not to do so. If the
confirmation hearing must be continued, a hearing date/time is
available on 8/25/11 at 10:30 a.m.; however, Debtor must contact
the courtroom deputy to confirm this date."
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.
INDEPENDENCE TAX III: Incurs $322,900 Net Loss in June 30 Quarter
-----------------------------------------------------------------
Independence Tax Credit Plus L.P. III filed its quarterly report
on Form 10-Q, reporting a net loss of $322,949 on $1.5 million of
revenues for the three months ended June 30, 2011, compared with a
net loss of $463,439 on $1.5 million of revenues for the three
months ended June 30, 2010.
At June 30, 2011, the Partnership's balance sheet showed
$18.8 million in total assets, $48.9 million in total liabilities,
and a partners' deficit of $30.1 million.
As reported in the TCR on July 11, 2011, Trien Rosenberg Weinberg
Ciullo & Fazzari LLP, in New York, noted that the Partnership's
consolidated financial statements for the fiscal year ended
March 31, 2011, include the financial statements of two subsidiary
partnerships with significant uncertainties. These two subsidiary
partnerships' net losses aggregated $413,927 (2010 Fiscal Year)
and $4,959,477 (2009 Fiscal Year) and their assets aggregated
$1,715,468 at March 31, 201,1 and $1,938,832 at March 31, 2010.
A copy of the Form 10-Q is available at http://is.gd/biIZzE
About Independence Tax III
Independence Tax Credit Plus L.P. III is a limited partnership
which was formed under the laws of the State of Delaware on
Dec. 23, 1993. The Partnership invests in other partnerships
owning leveraged apartment complexes that are eligible for the
low-income housing tax credit enacted in the Tax Reform Act of
1986, some of which may also be eligible for the historic
rehabilitation tax credit. The Partnership is based in New York
City.
INDEPENDENCE TAX IV: June 30 Balance Sheet Upside-Down by $18.1MM
-----------------------------------------------------------------
Independence Tax Credit Plus L.P. IV filed its quarterly report on
Form 10-Q, reporting a net loss of $324,152 on $1.31 million of
revenues for the three months ended June 30, 2011, compared with a
net loss of $442,380 on $1.25 million of revenues for the same
period of the prior fiscal year.
The net loss for the years ended March 31, 2011, and 2010, totaled
$4.34 million and $15.24 million, respectively.
The Partnership's balance sheet at June 30, 2011, showed
$19.46 million in total assets, $37.53 million in total
liabilities, and a partners' deficit of $18.07 million.
A copy of the Form 10-Q is available at http://is.gd/N5ywjT
About Independence Tax IV
Headquartered in New York, Independence Tax Credit Plus L.P. IV
Independence Tax Credit Plus L.P. IV is a limited partnership
which was formed under the laws of the State of Delaware on
February 22, 1995. The general partner of the Partnership is
Related Independence L.L.C., a Delaware limited liability company.
Centerline Holding Company is the ultimate parent of Centerline
Affordable Housing Advisors LLC, the managing member of Related
Independence L.L.C.
The Partnership's business is primarily to invest in other
partnerships owning leveraged apartment complexes that are
eligible for the low-income housing tax credit enacted in the Tax
Reform Act of 1986, some of which may also be eligible for the
historic rehabilitation tax credit.
The Partnership had originally acquired limited partnership
interests in fourteen subsidiary partnerships, all of which have
been, or were, consolidated. The Partnership does not anticipate
acquiring limited partnership interests in additional subsidiary
partnerships. The Partnership's investments in Local Partnerships
represent from 98.99% to 99.89% interests, except for one
investment which is a 58.12% interest.
INNER CITY: Sent to Ch. 11 by Yucaipa, Fortress for $254MM Debt
---------------------------------------------------------------
A bankruptcy judge in Manhattan is set to consider a request to
place Inner City Media Corporation (Bankr. S.D.N.Y. Case No.
11-13967) and 12 affiliates in Chapter 11 bankruptcy.
Affiliates of Yucaipa and CF ICBC LLC, Fortress Credit Funding I
L.P., and Drawbridge Special Opportunities Fund Ltd., signed
involuntary Chapter 11 petitions for Inner City and its affiliates
in order to collect on a $254 million debt.
The Petitioning Creditors are party to the senior secured credit
facility pursuant to which they (or their predecessors in
interest) extended $197 million in loans to the Alleged Debtors to
be used for general corporate purposes. More than two years ago,
the Alleged Debtors defaulted under the Senior Secured Credit
Facility, and in any event the entire amount of principal and
accrued and unpaid interest and fees became immediately due and
payable on February 13, 2010. As a result, the Senior Lenders are
owed approximately $250 million in principal and accrued and
unpaid interest and fees as of the Involuntary Chapter 11 Petition
Date.
The Senior Lenders say they will demonstrate in the Chapter 11
cases that the Alleged Debtors have been mismanaged and the value
of the Senior Lenders' collateral has steadily decreased to the
point where they are now substantially undersecured.
"Despite having gone unpaid for years and being deeply
undersecured, the Senior Lenders exercised extreme patience and
refrained from exercising remedies under the Senior Secured Credit
Facility - notwithstanding a clear right to do so - all in an
effort to promote a spirit of genuine good faith, cooperation, and
compromise and to give the parties ample opportunity to negotiate
a consensual resolution," according to a court filing by the
Senior Lenders.
"These negotiations resulted in a proposal from the Senior Lenders
that, had it been accepted and implemented by the Alleged Debtors,
would have led to an orderly, prepackaged bankruptcy case
resulting in prompt confirmation of a plan of reorganization and
the restructuring of the Alleged Debtors as viable ongoing
entities."
According to the Senior Lenders, although they are at this point
undersecured, the restructuring offer made by the Senior Lenders
would have left unsecured creditors unimpaired and provided
equityholders with a cash recovery and a continuing stake in the
reorganized entities.
That proposal was initially accepted by the board of one of the
Alleged Debtors -- ICMC, the main operating company of the Alleged
Debtors. The Alleged Debtors' professionals at the time, Skadden
Arps and Alvarez & Marsal, recommended to the board of ICMC that
it approve the restructuring proposal embedded in the plan support
agreement.
"However, on the eve of moving forward with this orderly chapter
11 filing, the parent company of the Alleged Debtors, at the
behest of the parent company's chairman, Mr. Pierre Sutton, forced
the Alleged Debtors to back out of this deal, apparently to
seek a greater recovery for himself and other existing
shareholders," according to the Senior Lenders.
Rather than seeking the protections of a voluntary chapter 11
case, the Alleged Debtors have made disturbing written threats --
going so far as threatening to file chapter 7 petitions, with the
consequential devastating affects on the Debtors' employees and
vendors, and seeking to destroy the Alleged Debtors' Federal
Communications Commission licenses, which are the bedrock of the
Alleged Debtors' operations and value.
Faced with these reckless threats, the Senior Lenders say they
reluctantly concluded that they had no choice but to commence the
involuntary chapter 11 cases.
To facilitate an expedited exit, the Senior Lenders are prepared
to seek relief from the Court in short order that would permit
them to file a plan of reorganization predicated upon the concept
of paying all allowed administrative expense, priority and general
unsecured claims in full.
Attorneys for Yucaipa Corporate Initiatives Fund II, L.P. and
Yucaipa Corporate Initiatives (Parallel) Fund II, L.P. are:
John J. Rapisardi, Esq.
Scott J. Greenberg, Esq.
CADWALADER, WICKERSHAM & TAFT LLP
One World Financial Center
New York, New York 10281
Telephone: (212) 504-6000
Facsimile: (212) 504-6666
E-mail: john.rapisardi@cwt.com
scott.greenberg@cwt.com
Attorneys for CF ICBC LLC, Fortress Credit Funding I L.P.,
and Drawbridge Special Opportunities Fund Ltd are:
Adam C. Harris, Esq.
Meghan Breen, Esq.
SCHULTE ROTH & ZABEL LLP
919 Third Avenue
New York, New York 10022
Telephone: (212) 756-2000
Facsimile: (212) 593-5955
E-mail: adam.harris@srz.com
meghan.breen@srz.com
INNER CITY: Involuntary Chapter 11 Case Summary
-----------------------------------------------
Alleged Debtor: Inner City Media Corporation
c/o ICBC Broadcast Holdings, Inc.
3 Park Avenue, 41st Floor
New York, NY 10016
Bankruptcy Case No.: 11-13967
Affiliates also subject to involuntary Chapter 11 petitions:
Debtor Case No.
------ --------
ICBC Broadcast Holdings, Inc. 11-13968
ICBC Broadcast Holdings-CA, Inc. 11-13969
ICBC Broadcast Holdings-NY, Inc. 11-13970
ICBC-NY, L.L.C. 11-13971
Inner-City Broadcasting Corporation of Berkeley 11-13972
Urban Radio I, L.L.C. 11-13973
Urban Radio II, L.L.C. 11-13974
Urban Radio III, L.L.C. 11-13975
Urban Radio IV, L.L.C. 11-13976
Urban Radio of Mississippi, L.L.C. 11-13977
Urban Radio of South Carolina, L.L.C. 11-13978
Urban Radio, L.L.C. 11-13979
Involuntary Chapter 11 Petition Date: August 19, 2011
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Petitioners' Counsel: John J. Rapisardi, Esq.
CADWALADER, WICKERSHAM & TAFT LLP
One World Financial Center
New York, NY 10281
Tel: (212)504-6000
Fax: (212)504-6666
E-mail: john.rapisardi@cwt.com
Creditors who signed the Chapter 11 petition:
Petitioners Nature of Claim Claim Amount
----------- --------------- ------------
Yucaipa Corporate Initiatives Fund Business Debt $118,229,166
II, L.P.
9130 West Sunset Boulevard
Los Angeles, CA 90069
Yucaipa Corporate Initiatives Business Debt $36,994,991
(Parallel) Fund II, L.P.
9130 West Sunset Boulevard
Los Angeles, CA 90069
CF ICBC LLC Business Debt $74,679,684
1345 Avenue of the Americas
New York, NY 10105
Fortress Credit Funding I L.P. Business Debt $16,920,007
1345 Avenue of the Americas
New York, NY 10105
Drawbridge Special Opportunities Business Debt $7,251,432
Fund Ltd.
1345 Avenue of the Americas
New York, NY 10105
INNKEEPERS USA: Cerberus Formally Backs Out of Deal, May Face Suit
------------------------------------------------------------------
The Wall Street Journal's Mike Spector and Kris Hudson report that
New York private-equity firm Cerberus Capital Management LP and
real-estate investment trust Chatham Lodging Trust on Friday
terminated a deal to acquire a portfolio of Innkeepers USA Trust's
hotels. In a statement, Cerberus and Chatham said they had
abandoned the deal "as a result of the occurrence of a condition,
change or development that could reasonably be expected to have a
material adverse effect" on Innkeepers's business, operations or
financial condition, among other things.
The Journal relates people familiar with the matter said Cerberus
and Chatham didn't elaborate further when notifying Innkeepers
late Friday and over the weekend about the decision to back out of
the deal.
The Journal says a spokeswoman for Innkeepers didn't respond to a
request for comment.
The deal had a Sept. 15 deadline to close. Cerberus and Chatham
now must pay a $20 million termination fee.
The Journal relates people familiar with the matter said
Innkeepers's representatives believe no changes have occurred to
the hotel owner's business that would trigger the "material
adverse effect" clause in the buyout's contract. The sources
noted that Innkeepers' properties are performing relatively well,
so the business hasn't suffered major setbacks. According to the
Journal, the representatives believe Cerberus could be hoping to
buy Innkeepers at a lower price or calculating that paying the
termination fee makes more sense than going through with the deal.
The sources told the Journal that Innkeepers' lawyers are weighing
the next options, which could include suing Cerberus and Chatham.
They also could ask a bankruptcy judge to hold a hearing on the
matter that would force Cerberus and Chatham to explain their
decision more, these people said.
Another source told the Journal that Cerberus had become concerned
that it would be more difficult to borrow necessary funds to run
Innkeepers's hotels in coming months. The same source said
Cerberus also had planned to unload some of Innkeepers' hotels
after acquiring them, a significant underpinning of the deal that
now looks more difficult to achieve.
Other sources told the Journal that since Cerberus signaled it
might abandon the deal, Innkeepers had been in discussions with
creditors about possibly renegotiating the deal. The sources said
the creditor controlling Innkeeper's senior mortgage debt, Midland
Loan Services Inc., had expressed willingness to rework the deal
in a way that might appease Cerberus. Another creditor, Lehman
Brothers Holdings Inc.'s bankruptcy estate, holds so-called junior
mortgage debt and informed Innkeepers and Cerberus that it
expected the buyers to honor the sale agreement.
The Journal says Midland declined to comment. Lehman's estate
declined to comment.
Sale & Plan Process
In June 2011, the Bankruptcy Court entered an order confirming
Innkeepers' chapter 11 plan of reorganization. The Plan was
supported by the Company's secured lenders and was accepted by
more than 90% of Innkeepers' unsecured creditors and shareholders.
The Plan is premised on the sale of the Company's hotel portfolio.
A joint venture between the private-equity firm Cerberus Capital
Management, L.P. and the real estate investment trust Chatham
Lodging agreed to purchase for roughly $1.12 billion the equity in
entities that own and operate 65 of the Company's hotels.
Cerberus and Chatham agreed to pay $400.5 million cash and assume
about $723.8 million mortgage debt for the hotels. Cerberus
agreed to shoulder $363.5 million of the cash portion for a 91%
ownership stake in the restructured hotelier.
Chatham Lodging also agreed to purchase for $195 million, five of
the Company's hotels that serve as collateral for loan trusts
serviced by LNR Partners LLC. The deal for the five hotels closed
in July 2011.
About Innkeepers USA Trust
Innkeepers USA Trust is a self-administered Maryland real estate
investment trust with a primary business focus on acquiring
premium-branded upscale extended-stay, mid-priced limited service,
and select-service hotels.
Innkeepers, through its indirect subsidiaries, owns and operates
an expansive portfolio of 72 upscale and mid-priced extended-stay
and select-service hotels, consisting of approximately 10,000
rooms, located in 20 states across the United States.
Apollo Investment Corporation acquired Innkeepers in June 2007.
Innkeepers USA Trust and 91 affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. 10-13800) on July 19, 2010.
Paul M. Basta, Esq., at Kirkland & Ellis LLP, in New York; Anup
Sathy, P.C., Esq., Marc J. Carmel, Esq., at Kirkland & Ellis in
Chicago; and Daniel T. Donovan, Esq., at Kirkland & Ellis in
Washington, D.C., serve as counsel to the Debtors. AlixPartners
is the restructuring advisor and Marc A. Beilinson is the chief
restructuring officer. Moelis & Company is the financial advisor.
Omni Management Group, LLC, is the claims and notice agent.
Attorneys at Morrison & Foerster, LLP, represent the Official
Committee of Unsecured Creditors.
The Company's consolidated assets for 2009 totaled approximately
$1.5 billion. As of July 19, 2010, the Company and its affiliates
have incurred approximately $1.29 billion of secured debt.
INTEGRA BANK: Unable to File Quarterly Report Due to Bankruptcy
---------------------------------------------------------------
Integra Bank Corporation was unable to file its quarterly report
on Form 10-Q for the quarter ending June 30, 2011, by Aug. 15,
2011. The Company will not file the Form 10-Q within the five-day
extension permitted by Rule 12b-25 promulgated by the Securities
and Exchange Commission under the Securities Exchange Act of 1934,
as amended.
On July 29, 2011, Integra Bank N.A., the Company's wholly-owned
subsidiary, was closed by the Office of the Comptroller of the
Currency and the Federal Deposit Insurance Corporation was
appointed as receiver of Integra Bank. As Integra Bank was the
Company's principal asset and the Company does not expect to
receive any recovery from the FDIC receivership, on July 30, 2011,
the Company filed a voluntary petition for relief under Chapter 7
of Title 11 of the United States Code before the United States
Bankruptcy Court for the Southern District of Indiana, Evansville
Division as Case No. 11-71224-BHL-7A. Deborah J. Caruso has been
appointed as the Trustee in the Chapter 7 bankruptcy proceeding
and will liquidate the Company's remaining assets. All of the
Company's material business activities have ceased. Neither the
Company nor the Trustee will have access to the accounting books
and records of Integra Bank, Integra Bank's former accounting
staff or a registered independent public accounting firm and,
therefore, no longer have the capability to prepare the financial
statements and other disclosures required for the Form 10-Q or any
other periodic reports that may be required to be filed thereafter
pursuant to the Exchange Act.
About Integra Bank
Integra Bank, the holding company of a bank shuttered by
regulators on Friday, filed for Chapter 7 protection (Bankr. S.D.
InD. Case No. 11-71224).
The Chapter 7 filing follows the July 29, 2011 closure by the
Office of the Comptroller of the Currency (OCC), pursuant to 12
USC Sections 464(d)(2)(A) and (d)(2)(E)(ii), of Integra Bank N.A.
(the Bank) - which was the subsidiary of the Company. The OCC
subsequently appointed the Federal Depository Insurance
Corporation (FDIC) as receiver of the Bank.
Old National Bank of Evansville, Indiana, assumed all of the
deposits of the Bank and purchased essentially all of the
Bank's assets. As of March 31, 2011, Integra Bank, National
Association, had around $2.2 billion in total assets and $1.9
billion in total deposits.
On its most recent annual report filed with the SEC, the Company
reported $2.4 billion in pre-petition assets, but its Chapter 7
petition indicates a range of $1 million to 10 million.
INTERNATIONAL ENERGY: Can Hire A. Frank Baron as Counsel
--------------------------------------------------------
The Honorable William L. Edmonds has authorized the Official
Committee of Unsecured Creditors in the Chapter 11 cases of
International Energy Holdings Corp., et al., to retain A. Frank
Baron of the firm Baron, Sar, Goodwin, Gill, & Lohr as its
attorney.
About International Energy
Tampa, Florida-based International Energy Holdings Corp. -- fka
International CRO Holdings Corp.; The Cornerstone Brad, LLC; and
Bison Renewable Energy, LLC -- filed for Chapter 11 bankruptcy
protection on March 28, 2011 (Bankr. M.D. Fla. Case No. 11-05547).
Richard J. McIntyre, Esq., at McIntyre, Panzarella, Thanasides &
Eleff, serves as the Debtor's bankruptcy counsel. The Debtor
disclosed $13,154,805 in assets and $15,862,937 in liabilities as
of the Chapter 11 filing.
The Florida Court in June 2011 authorized the transfer of venue of
the case to Iowa (Bankr. N.D. Iowa Case No. 11-01593), at the
behest of secured creditor HCI Construction.
Donald F. Walton, U.S. Trustee for Region 21, appointed three
members to the Official Committee of Unsecured Creditors in the
Debtor's case.
I/OMAGIC CORP: Thomas Gruber Appointed to Board of Directors
------------------------------------------------------------
The Board of Directors of I/OMagic Corporation appointed Thomas L.
Gruber as a member of the Board of Directors of the Company.
Since January 2008, Mr. Gruber has acted as a consultant to
Firebarrell Partners, Inc., providing financial consultancy
services on Firebarrell's behalf to the Company. The Company pays
$2,400 per week to Firebarrell for those services. Prior to May
2011, the Company paid $3,000 per week to Firebarrell for those
services.
I/OMagic was unable to file its quarterly report on Form 10-Q for
the period ended June 30, 2011, in a timely manner without
unreasonable effort or expense because the Company needs
additional time to complete its report and allow for the review of
its report by its certified registered public accounting firm.
Management has been working diligently to complete the Form 10-Q
and anticipates that the report will be filed no later than the
fifth calendar day following the prescribed due date.
About I/OMagic
Irvine, Calif.-based I/OMagic Corporation sells electronic data
storage products and other consumer electronics products in the
North American retail marketplace, which includes the United
States and Canada. During 2010 and 2009, all of the Company's
net sales were generated within the United States.
The Company's balance sheet at March 31, 2011, showed $1.5 million
in total assets, $4.4 million in total liabilities, and a
stockholders' deficit of $2.9 million.
As reported in the TCR on March 8, 2011, Simon & Edward, LLP, in
City of Industry, Calif., expressed substantial doubt about
I/OMagic's ability to continue as a going concern, following the
Company's results for fiscal year ended Dec. 31, 2010. The
independent auditors noted that the Company has incurred
significant operating losses, has serious liquidity concerns and
may require additional financing in the foreseeable future.
J CREW: Bank Debt Trades at 12% Off in Secondary Market
-------------------------------------------------------
Participations in a syndicated loan under which J.Crew is a
borrower traded in the secondary market at 88.45 cents-on-the-
dollar during the week ended Friday, Aug. 19, 2011, a drop of 1.13
percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 350 basis points above LIBOR to borrow
under the facility. The bank loan matures on Feb. 10, 2018, and
carries Moody's B1 rating and Standard & Poor's B rating. The
loan is one of the biggest gainers and losers among 64 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
J.Crew -- http://www.jcrew.com/-- is a nationally recognized
apparel and accessories retailer that differentiates itself
through high standards of quality, style, design and fabrics with
consistent fits and authentic details. J.Crew is an integrated
multi-channel, multi-brand specialty retailer that operates stores
and websites to consistently communicate with its customers. The
Company designs, markets and sells its products, including those
under the J.Crew, crewcuts and Madewell brands, offering complete
assortments of women's, men's and children's apparel and
accessories. Its customer base consists primarily of affluent,
college educated, professional and fashion-conscious women and
men. In 2011, J.Crew expanded its international e-commerce to
include shipping to the United Kingdom, while continuing to ship
anywhere in the U.S., Canada and Japan.
For the year ended January 29, 2011, J.Crew reported net income of
$121.5 million on total revenues of $1.72 billion compared with
net6 income of $123.4 million on total revenues of $1.58 billion
in 2010.
As of January 29, 2011, the Company's balance sheet showed $860.2
million in total assets, $349.0 million in total liabilities and
$511.1 million in total stockholders' equity.
JEFFERSON CALHOUN: Court Confirms Bankruptcy Plan
-------------------------------------------------
Bankruptcy Judge Margaret A. Mahoney confirmed Jefferson G.
Calhoun's Plan of Reorganization over the objections of GE
Commercial Finance Business Property Corporation and Zions First
National Bank. A copy of Judge Mahoney's Aug. 19, 2011 Order is
available at http://is.gd/1dvWBZfrom Leagle.com.
Mr. Calhoun owned a large interest in PRP, Inc., a corporation
engaged in the operation of several Arby's restaurants. PRP Inc.
filed a voluntary chapter 11 petition on Jan. 11, 2010, prompting
Mr. Calhoun to file his own voluntary chapter 11 petition (Bankr.
S.D. Ala. Case No. 10-01331) on March 26, 2010. Mr. Calhoun owns
commercial properties in Semmes, Alabama, Bay Minette, Alabama,
and Pascagoula, Mississippi which he leased to PRP (the franchise
holder). The three properties are encumbered:
* 1551 Denny Ave., Pascagoula, MS -- Hancock Bank holds a
secured claim for $488,500;
* 3441 Schillinger Road, Semmes, AL -- GE Capital Solutions
holds a secured claim for $296,000; and
* 620 McMeans Ave, Bay Minette, AL -- Zion First National
Bank holds a secured claim for $504,000.
In Mr. Calhoun's Disclosure Statement he also lists these
properties with creditors holding secured claims:
* 14395 Riverside Drive, Magnolia Springs, AL -- Hancock
Bank holds a secured claim for $472,000;
* 31542 Rhett Drive, Spanish Fort, AL -- Hancock Bank holds
a secured claim for $263,772;
* 809 US Hwy 43, Saraland, AL -- FFCA/Irwin Capital holds a
secured claim for $558,000; and
* Ford Motor Credit also held a secured claim for $28,000
on the Debtor's vehicle.
During PRP's chapter 11 case, the Court entered an order setting
forth an agreement between GE and PRP under which PRP would make
monthly payments on the Semmes location to Mr. Calhoun who would
in turn remit monthly adequate protection payments of $4,635.83 to
GE. In Mr. Calhoun's own chapter 11 case, the court entered an
order setting forth an agreement between Zions First and Mr.
Calhoun under which the Debtor would make monthly payments of
$2,500 to Zions First as adequate protection on the Bay Minette
location.
PRP's case converted to one under chapter 7 on Jan. 21, 2011, and
most of its Arby's locations were sold to Beavers Southeast, LLC.
Mr. Calhoun retained the three commercial properties which he
leased to Beavers on a month-to-month basis.
Mr. Calhoun submitted a plan of reorganization on March 9, 2011.
He proposes to fund the plan with rental property income and
income from a consulting job. The plan proposes to pay secured
and priority creditors in full to the extent of their allowed
claims over a period of time and offers each unsecured creditor a
pro rata share of a monthly payments of $3,000, resulting in a
dividend of approximately 5% of the allowed amount of each
unsecured claim.
Prior to the confirmation hearing, GE (Class 1) and Zions First
National Bank (Class 3) rejected the plan. Hancock Bank (Classes
2, 4, and 5) initially voted to reject, but changed its vote at
the confirmation hearing in light of minor amendments to the plan.
Ford Motor Credit (Class 7), the Internal Revenue Service (Class
8), and the General Unsecured Creditors (Class 9) accepted the
plan. FFCA/Irwin Capital (Class 6) did not vote.
GE and Zions object to confirmation under 11 U.S.C. Sec.
1129(a)(11) arguing that the plan is not feasible and that it
violates the absolute priority rule. Zions also objects to the
plan on the grounds that it does not meet Sec. 1123(a)(5) because
it fails to provide for adequate means of implementation.
Mr. Calhoun testified that he receives approximately $18,000 each
month from Beavers Southeast and $3,200 each month from Just
Cause, Inc. Although there is no long term lease with Beavers,
Mr. Calhoun testified that he has had contact with four different
individuals interested in potentially leasing the Schillinger
property should the arrangement with Beavers fall through. While
Mr. Calhoun discussed a ballpark figure for rent with the
interested parties, no letters of intent have been signed nor has
the Debtor discussed detailed operating information with them.
The Debtor testified that should he experience a severe decrease
in rental income, he would be able to continue funding the plan
for 90 days with his income from Just Cause, Inc., and from cash
reserves he would receive as a gift. Mr. Calhoun pointed out that
even though he received no rental income from Beavers for the
month of October, he was still able to make timely payments.
According to Judge Mahoney, the Bankruptcy Code does not require a
debtor to prove that success is inevitable, and a relatively low
threshold of proof will satisfy Sec. 1129(a)(11) so long as
adequate evidence supports a finding of feasibility. She said the
Debtor has met the requirements of Sec. 1129(a)(11). While he has
not provided evidence sufficient to guarantee the success of his
plan, he has provided evidence sufficient to prove his plan is
feasible.
JOHN D. OIL: Incurs $563,600 Net Loss in Second Quarter
-------------------------------------------------------
John D. Oil and Gas Company filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss of $563,582 on $337,289 of total revenues for the three
months ended June 30, 2011, compared with a net loss of $391,183
on $679,517 of total revenues for the same period during the prior
year.
The Company also reported a net loss of $1.12 million on $829,725
of total revenues for the six months ended June 30, 2011, compared
with a net loss of $483,542 on $1.50 million of total revenues for
the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $8.25 million
in total assets, $12.59 million in total liabilities and a $4.34
million total deficit.
The Company reported a net loss of $1.38 million on $2.63 million
of total revenues for the year ended Dec. 31, 2010, compared with
a net loss of $2.69 million on $4.04 million of total revenues
during the prior year.
As reported by the TCR on April 7, 2011, Maloney + Novotny LLC, in
Cleveland, Ohio, expressed substantial doubt about the Company's
ability to continue as a going concern, following the Company's
2010 financial results. The independent auditors noted that the
Company has suffered recurring losses and has $9.5 million of debt
currently due and subject to a forbearance.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/WP9gjP
About John D. Oil
Mentor, Ohio-based John D. Oil and Gas Company is in the business
of acquiring, exploring, developing, and producing oil and natural
gas in Northeast Ohio. The Company currently has fifty-eight
producing wells.
JOSEPH DETWEILER: Judge Rules on Fee Request in Creditor Suit
-------------------------------------------------------------
In the lawsuit styled, Sequatchie Mountain Creditors, v. Joseph J.
Detweiler, Adv. Proc. No. 09-6118 (Bankr. N.D. Ohio), Judge Russ
Kendig sustained in part, the plaintiffs' objection to $4,735.05
in fees sought by the defendant, saying certain items were
"patently unreasonable." A copy of Judge Kendig's Aug. 19, 2011
Memorandum of Opinion is available at http://is.gd/h26MX9from
Leagle.com.
Based in Uniontown, Ohio, Joseph J. Detweiler filed for Chapter 11
protection (Bankr. N.D. Ohio Case No. 09-63377) on Aug. 17, 2009.
Anthony J. DeGirolamo, Esq., represents the Debtor. In his
petition, the Debtor has $3,669,999 in total assets and
$32,913,552 in total debts.
JUNIPER GROUP: Delays Filing of Quarterly Report on Form 10-Q
-------------------------------------------------------------
Juniper Group, Inc.'S quarterly report on Form 10-Q for the
quarter ended June 30, 2011, could not be filed within the
prescribed period because the Company was unable to compile
certain information required in order to permit the Company to
file a timely and accurate report on the Company's financial
condition. This inability could not have been eliminated by the
Company without unreasonable effort or expense.
About Juniper Group
Boca Raton, Fla.-based Juniper Group, Inc., is a holding company.
The Company was incorporated in the State of Nevada in 1997 and
conducts its business through indirect wholly-owned subsidiaries.
The Company's wireless infrastructure services operating
subsidiaries primarily focus their activities in the Eastern and
Central United States. The Company's intention is to be able to
support the increased demand in the deployment of wireless
infrastructure services with leading wireless telecommunication
companies in providing them with maintenance and upgrading of
wireless telecommunication network sites, site acquisitions, site
surveys, co-location facilitation, tower construction and antenna
installation to tower system integration, hardware and software
installations.
As reported by the TCR on April 21, 2011, Liebman Goldberg &
Hymowitz, LLP, in Garden City, New York, expressed substantial
doubt about the Company's ability to continue as a going concern,
following the 2010 financial results. The independent auditors
noted that the Company has a working capital deficiency and has
suffered recurring losses from operations.
KL ENERGY: Incurs $578,200 Net Loss in Second Quarter
-----------------------------------------------------
KL Energy Corporation filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q reporting a net loss
of $578,189 on $785,345 of total revenue for the three months
ended June 30, 2011, compared with a net loss of $1.50 million on
$0 of total revenue for the same period during the prior year.
The Company also reported net income of $201,824 on $2.57 million
of total revenue for the six months ended June 30, 2011, compared
with a net loss of $3.27 million on $120,000 of total revenue for
the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $4.67 million
in total assets, $21.28 million in total liabilities and a $16.61
million total stockholders' deficit.
The Company reported a net loss of $20.90 million on $4.07 million
of total revenue for the year ended Dec. 31, 2010, compared with a
net loss of $8.25 million on $0 of revenue during the prior year.
As reported by the TCR on March 23, 2011, Ehrhardt Keefe Steiner &
Hottman PC expressed substantial doubt about the Company's ability
to continue as a going concern. Ehrhardt Keefe noted that the
Company has suffered recurring losses and has an accumulated
deficit. Accordingly, unless the Company raises additional
working capital, obtain project financing or revenues grow to
support the Company's business plan, the Company may be unable to
remain in business.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/aTLfzG
About KL Energy Corporation
Based in Rapid City, South Dakota, KL Energy Corporation
-- http://www.klenergycorp.com/-- formerly known as Revive-it
Corp., focuses on developing unique technical and operational
capabilities designed to enable the production and
commercialization of biofuel, in particular ethanol from
cellulosic biomass. The Company also plans to provide contracted
engineering and project development services to third party
customers.
KOLORFUSION INT'L: Sept. 26 Hearing for Reorganization Plan Set
---------------------------------------------------------------
The United States Bankruptcy Court for the District of Colorado
issued an Order approving the Disclosure Statement filed by
Kolorfusion International, Inc., in its pending Chapter 11
bankruptcy case and has scheduled a hearing on approval of its
Amended Plan of Reorganization for September 26, 2011 at 3:30 p.m.
MT in Courtroom C502, Byron C. Rogers Courthouse, Denver,
Colorado. Any objections to approval of the pending Amended Plan
of Reorganization filed by Kolorfusion International, Inc. are due
by September 19, 2011. Kolorfusion International, Inc.,
(pinksheets:KOLR) filed for voluntary Chapter 11 bankruptcy
reorganization on July 27, 2010.
The Amended Plan of Reorganization, Disclosure Statement and the
Court's Order scheduling the confirmation hearing are available
for viewing on Kolorfusion's website at
http://www.kolorfusion.com/courtdocuments.html.
About Kolorfusion International, Inc.
Kolorfusion International, Inc., (pinksheets:KOLR) owns, develops
and markets a system for transferring color patterns to metal,
wood, glass and plastic products. "Kolorfusion" is a process that
allows the transfer of colors and patterns into coated metal, wood
and glass and directly into plastic surfaces of virtually any
shape or size. The creation of a pattern to be part of a product's
surface is designed to enhance consumer appeal, create demand for
mature products, achieve product differentiation and customization
and as a promotional vehicle.
Kolorfusion International filed for voluntary Chapter 11
bankruptcy (Bankr. D. Colo. Case No. 10-28857) on July 27, 2010.
The Company's bankruptcy attorney is Bonnie Bell Bond, Esquire,
Law Office of Bonnie Bell Bond, LLC, Greenwood Village, Colorado.
KT SPEARS: FPSB Joins RBC's Motion to Dismiss for Bad Faith Filing
------------------------------------------------------------------
First Palmetto Savings Bank, FSB, has adopted in their entirely
the arguments set forth in the motion of RBC Bank (USA), Inc., to
dismiss the Chapter 11 case of KT Spears Creek, LLC, for bad faith
filing.
FPSB tells the U.S. Bankruptcy Court for the District of South
Carolina, Columbia Division, that it is a secured creditor of the
Debtor by virtue of that certain promissory note dated June 22,
2010, in the principal amount of $885,719.46, and that certain
mortgage dated March 16, 2009, on the Debtor's real property which
is contiguous to the real property subject to RBC's mortgage and
part of the same project of the Debtor.
Counsel for FPSB may be reached at:
Ian D. McVey, Esq.
CALLISON TIGHE & ROBINSON, LLC
P.O. Box 1390
Columbia, SC 29202
Tel: (803) 404-6900
Fax: (803) 404-6901
E-mail: ianmcvey@callisontighe.com
A hearing on the motion of RBC for the dismissal of the Debtor's
case will be held on Sept. 6, 2011, at 9:00 a.m. Any party
objecting to the relief sought must file a response in
accordance with SC LBR 9014-1, and must serve the party seeking
the relief with a copy of said objection by Aug. 29, 2011.
As reported in the TCR on Aug. 5, 2011, RBC Bank (USA), Inc.,
asked the Bankruptcy Court to dismiss the Debtor's Chapter 11
case, citing that the case was filed in bad faith to thwart RBC
from completing its foreclosure of the property.
In support of its claim that this is a "bad faith" filing, RBC
Bank related that the Debtor is a single asset real entity, has
no employes, the cash flow generated by the apartment complex is
insufficient to fund a confirmable plan of reorganization, and the
Debtor has no or relatively few unsecured creditors.
Further, RBC Bank said that prior to the filing of the
foreclosure, Kyle Tauch, the Debtor's principal, caused over
$350,000 to be diverted to an affiliated company and failed to pay
over the $800,000 in taxes owed on the property securing the
Bank's debt. RBC Bank noted also that this case is nothing more
that a dispute between the Debtor and its secured lenders, and
that it believes that that Debtor has no hope for a successful
Plan of Reorganization.
About KT Spears
KT Spears Creek, LLC, in Houston, Texas, filed for Chapter 11
bankruptcy (Bankr. S.D. Tex. Case No. 11-33991) on May 3, 2011,
Judge Letitia Z. Paul presiding. The Debtor estimated $10 million
to $50 million in both assets and debts. The petition was signed
by Kyle D. Tauch, sole
member.
The Hon. Letitia Z. Paul transferred the Debtor's Chapter 11 case
to the Bankruptcy Court for the District of South Carolina. The
Case No. is 11-04241. The case was assigned to Chief Judge John
E. Waites. Daniel J. Reynolds, Jr., Esq., and G. William
McCarthy, Jr., Esq., at McCarthy Law Firm, LLC, represent the
Debtor as counsel.
LA JOLLA: Reports $4.7 Million Net Income in Second Quarter
-----------------------------------------------------------
La Jolla Pharmaceutical Company filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q reporting
net income of $4.71 million for the three months ended June 30,
2011, compared with a net loss of $3.10 million for the same
period a year ago.
The Company also reported a net loss of $1.79 million for the six
months ended June 30, 2011, compared with a net loss of $4.87
million for the same period during the prior year.
The Company's balance sheet at June 30, 2011, showed $5.81 million
in total assets, $6.87 million in total liabilities, all current,
$5.32 million in Series C-1 redeemable convertible preferred
stock, and a $6.38 million total stockholders' deficit.
The Company reported a net loss of $3.76 million on $0 of revenue
from collaboration agreement for the year ended Dec. 31, 2010,
compared with a net loss of $8.63 million on $8.12 million of
revenue from collaboration agreement during the prior year.
The Company has a history of recurring losses from operations and,
as of June 30, 2011, the Company had no revenue sources, an
accumulated deficit of $429,876,000 and available cash and cash
equivalents of $5,792,000 of which up to $5,325,000 could be
required to be paid upon the exercise of redemption rights under
the Company's outstanding preferred securities. Such redemption
was not considered probable as of June 30, 2011.
As reported by the TCR on April 18, 2011, BDO USA, LLP, in San
Diego, Calif., expressed substantial doubt about the Company's
ability to continue as a going concern, following the 2010
financial results. The independent auditors noted that the
Company has suffered recurring losses from operations, an
accumulated deficit of $428 million as of Dec. 31, 2010 and has no
current source of revenues.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/loNudK
About La Jolla Pharmaceutical
San Diego, Calif.-based La Jolla Pharmaceutical Company (OTC BB:
LJPC) -- http://www.ljpc.com/-- is a biopharmaceutical company
that has historically focused on the development and testing of
Riquent as a treatment for Lupus nephritis.
LEE ENTERPRISES: Receives Second NYSE Timetable
-----------------------------------------------
As anticipated and previously disclosed, Lee Enterprises,
Incorporated, has received notification that it is in
noncompliance with a second standard for continued listing on the
New York Stock Exchange.
In a letter dated Aug. 15, 2011, the NYSE noted that as of Aug. 9,
2011, Lee was below criteria for a continued listing standard that
requires average market capitalization of not less than $50
million over a 30 trading-day period or stockholders' equity of
not less than $50 million. The noncompliance stemmed from
estimated impairment charges recorded in the June 2011 quarter.
Lee will be required to submit a plan within 45 days for returning
to compliance within 18 months.
Previously, the NYSE had notified Lee in July that it was below
the NYSE's continued listing standard for an average 30-day
closing market price of at least $1 per share and would have until
Jan. 8, 2012, to return to compliance.
Until Lee returns to compliance with the listing standards, the
LEE stock symbol has been assigned a ".BC" indicator to denote
that the company is below compliance with such standards. An
average 30-day closing market price of approximately $1.12 per
share would bring Lee back into compliance with all applicable
listing standards. On Aug. 18, 2011, Lee common stock closed at
72 cents per share.
Mary Junck, Lee chairman and chief executive officer, said Lee
expects to return to compliance within the required timetables
after successful completion of a comprehensive refinancing
initiative.
About Lee Enterprises
Lee Enterprises -- http://www.lee.net/-- is the leading provider
of local news and information, and a major platform for
advertising, in its markets, with 49 daily newspapers and a joint
interest in four others, rapidly growing digital products and
nearly 300 specialty publications in 23 states. Lee's newspapers
have circulation of 1.4 million daily and 1.7 million Sunday,
reaching nearly four million readers in print alone. Lee's
digital sites attracted 21.6 million unique visitors in June 2011.
Lee's markets include St. Louis, Mo.; Lincoln, Neb.; Madison,
Wis.; Davenport, Iowa; Billings, Mont.; Bloomington, Ill.; and
Tucson, Ariz. Lee Common Stock is traded on the New York Stock
Exchange under the symbol LEE.
LG GUIJARRO: Case Summary & 5 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: LG Guijarro Trust
aka Fideicomiso LG Guijarro, Trust
P.O. Box 13966
San Juan, PR 00908
Bankruptcy Case No.: 11-06961
Chapter 11 Petition Date: August 17, 2011
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Luis D. Flores Gonzalez, Esq.
LUIS D FLORES GONZALEZ LAW OFFICE
80 Calle Georgetti Suite 202
San Juan, PR 00925-3624
Tel: (787) 758-3606
Fax: (787) 753-5317
E-mail: ldfglaw@coqui.net
Scheduled Assets: $2,551,237
Scheduled Debts: $2,047,718
A list of the Company's five largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/prb11-06961.pdf
The petition was signed by Gabriel Guijarro Brunet.
LOCAL INSIGHT: Settles Bain & Co. Bankruptcy Claim for $4 Million
-----------------------------------------------------------------
Ian Thoms at Bankruptcy Law360 reports that Local Insight Media
Holdings Inc. agreed Thursday to pay $4 million to settle a
bankruptcy claim brought in Delaware by consulting firm Bain & Co.
Inc.
Law360 relates that Bain & Co. claimed Local Insight and its
subsidiaries owed it $5.2 million for consulting services it
provided under an engagement agreement signed in January 2009.
Under terms of the agreement, the settlement will be paid as an
allowed claim against Local insight subsidiary The Berry Co. LLC.
About Local Insight Media
Local Insight Media Holdings, Inc., through its subsidiary The
Berry Company LLC, is a leading provider of local search
solutions, generating leads for its advertising clients and
enabling consumers to efficiently find the products and services
they need. The Berry Company serves approximately 225,000
advertising clients in 41 states, publishing approximately 850
print Yellow Pages directories on behalf of approximately 115
telco and other customers. As an authorized reseller of
YP.com(TM) in all of its markets, The Berry Company provides its
clients with online listings and video advertising through this
leading national Internet Yellow Pages site. The Berry Company
also provides small and medium-sized businesses with website
development and search engine marketing services, and is a
Google(TM) Qualified Company.
LOST LAKE: Involuntary Chapter 11 Case Summary
----------------------------------------------
Alleged Debtor: Lost Lake Resort LLC
aka Lost Lake RV Resort
aka Lost Lake RV Sales
1546 Reservation Road SE
Olympia, WA 98513
Case Number: 11-46596
Involuntary Chapter 11 Petition Date: August 17, 2011
Court: Western District of Washington (Tacoma)
Petitioner's Counsel: John S. Mills, Esq.
705 S 9th St Ste 303
Tacoma, WA 98405
Tel: (253) 226-6362
E-mail: jmills@jmills.pro
Lost Lake's petitioners:
Petitioner Nature of Claim Claim Amount
---------- --------------- ------------
Danny E. Lazares Trade Debt $9,438
202 East 34th Street
Tacoma, WA 98404
Randy Bishop Wages $86,500
1546 Reservation Rd SE
Olympia, WA 98513
WCEM, Inc. Trade Debt $40,000
P.O. Box 3148
Federal Way, WA 98063
Michael Stewart Loan $5,700
4501 North 29th
Tacoma, WA 98407
Scheduled Assets: $10,420,950
Scheduled Debts: $4,005,614
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/wawb11-46596.pdf
LUMEA STAFFING: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Lumea Staffing, Inc.
15010 N. 78th Way, Suite 204
Scottsdale, AZ 85260
Bankruptcy Case No.: 11-23582
Chapter 11 Petition Date: August 17, 2011
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: James M. Marlar
Debtor's Counsel: Dean M. Dinner, Esq.
NUSSBAUM GILLIS & DINNER, P.C.
14500 N. Northsight Blvd., Suite 116
Scottsdale, AZ 85260-0001
Tel: (480) 609-0011
E-mail: ddinner@ngdlaw.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $10,000,001 to $50,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/azb11-23582.pdf
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Lumea Staffing of CA, Inc. 11-23585 08/17/11
Estimated Assets: $100,001 to $500,000
Estimated Debts: $10,000,001 to $50,000,000
The petitions were signed by James C. Marshall, CFO.
LV KAPOLEI: Plan Confirmation Hearing Scheduled for Sept. 27
------------------------------------------------------------
The Hon. Robert J. Faris of the U.S. Bankruptcy Court for the
District of Hawaii will convene a hearing on Sept. 27, 2011, at
9:30 a.m., to consider the confirmation of LV Kapolei 54, LLC's
First Amended Plan of Reorganization dated as of June 17, 2011.
Objections, if any, to the Plan, expert reports and declarations
must be filed by Sept. 12. The Debtor must file a reply brief and
rebuttal expert reports and declarations by Sept. 21. Ballot
tabulation deadline is Sept. 20.
Ballots accepting or rejecting the Plan are due Sept. 16, 2011.
All ballots must be received by:
Wagner Choi & Verbrugge
James A. Wagner, Esq.
745 Fort Street, Suite 1900
Honolulu, HI 96813
Tel: (808) 533-1877
E-mail: jwagner@hibklaw.com
According to the amended Disclosure Statement, the Plan
contemplates that the additional capital of $1,700,000 will be
funded by the Debtor's members.
Under the Plan, unless KBPI and the Debtor agree to a different
treatment, the CPB promissory note and CPB mortgage will be
modified on the effective date as:
-- maturity date extended to the third anniversary of the
Effective Date;
-- the amount outstanding under the CPB note and CPB mortgage
will be equal to the amount as of the Effective Date
(estimated to be about $23,500,000, as of Sept. 1, 2011);
-- the Debtor will make monthly interest only payments on the
modified note until it is paid in full or matures; and
-- interest rate on the modified Note will be 4% points above
the 30-LIBOR Rate.
Class 2 Allowed General Unsecured Claims will be paid in full with
interest at the rate of 6% per annum in eight equal quarterly
installments.
Class 3 Allowed Subordinated Claims will receive payment in full
or pro rata in accordance with return provided them under the
Debtor's operating agreement, provided that the members of Class 1
and Class 2 have first been paid in full.
Class 4 Allowed Equity Interest will retain their equity interest
in the Debtor.
A full-text copy of the Amended Disclosure Statement is available
for free at:
http://bankrupt.com/misc/LVKAPOLEI_DS_firstamendment.pdf
The Debtor also filed a first amendment to Plan Supplement on
June 17, a full-text copy of the plan supplement is available for
free at:
http://bankrupt.com/misc/LVKAPOLEI_plansupplement_1stamendment.pdf
About LV Kapolei
San Francisco, California-based LV Kapolei 54, LLC, is developing
the 54-acre Kapolei Business Park in Hawaii. The Debtor filed for
Chapter 11 bankruptcy protection (Bankr. D. Hawaii Case No.
11-00981) on April 8, 2011. James A. Wagner, Esq., at Wagner
Choi & Verbrugge, serves as the Debtor's bankruptcy counsel. The
Debtor disclosed $35,162,973 in assets and $23,955,318 in
liabilities as of the chapter 11 filing.
LV KAPOLEI: Creditor KBP's Control of Assets Stayed Until Sept. 27
------------------------------------------------------------------
The Hon. Robert J. Faris of the U.S. Bankruptcy Court for the
District of Hawaii LV ordered that the automatic stay in Kapolei
54, LLC's assets will remain in place until Sept. 27, 2011.
As reported in the Troubled Company Reporter on July 22, 2011,
Secured creditor KBP Industrial LLC is the assignee of the Note,
Mortgage, Security Agreement and other loan documents formerly
held by Central Pacific Bank.
KBP asked the Court to lift the automatic stay because the Debtor
filed a single asset real estate case and has not filed a plan
with a reasonable possibility of confirmation in a reasonable
amount of time.
KBP also argued that the Debtor has not provided adequate
protection because it has not made any payments on the secured
loan since October 2009. The Debtor has accrued unpaid real
property taxes plus penalties and interest of approximately
$644,876 for the period 2009 to July 2011.
KBP noted that payment amounting $134,907 is due for real property
taxes in August 2011.
In response to KBP Industrial LLC's motion for relief from stay,
the Court directed the Debtor to pay $134,907 to the City and
County of Honolulu, State of Hawaii on account of Real Property
Taxes due. The payment must be made by Aug. 22, 2011, and will
provide proof of payment of RPT Payment to counsel for KBP
Industrial LLC.
If the RPT Payment and proof of payment are not made, KBP may file
a declaration of default by the Debtor under the order and relief
from stay will be granted if after three business days after the
filing of the declaration of default, no response is made by
Debtor. In the event of any response by the Debtor, the Court
will hold an expedited hearing on the matter.
If necessary, a final hearing on the KBP's motion will be held on
Sept. 27, 2011, at 9:30 am.
KBP is represented by:
CASE LOMBARDI & PETTIT, A Law Corporation
Ted N. Pettit, Esq.
Dana R.C. Lyons, Esq.
Ryan M. Hamaguchi, Esq.
Pacific Guardian Center, Mauka Tower
737 Bishop Street, Suite 2600
Honolulu, HI 96813
Tel: (808) 547-5400
Fax: (808) 523-1888
E-Mail: tpettit@caselombardi.com
dlyons@caselombardi.com
rhamaguchi@caselombardi.com
About LV Kapolei
San Francisco, California-based LV Kapolei 54, LLC, is developing
the 54-acre Kapolei Business Park in Hawaii. The Debtor filed for
Chapter 11 bankruptcy protection (Bankr. D. Hawaii Case No.
11-00981) on April 8, 2011. James A. Wagner, Esq., at Wagner
Choi & Verbrugge, serves as the Debtor's bankruptcy counsel. The
Debtor disclosed $35,162,973 in assets and $23,955,318 in
liabilities as of the chapter 11 filing.
LYDIAN PRIVATE BANK: Closed; Sabadell United Assumes All Deposits
-----------------------------------------------------------------
Lydian Private Bank of Palm Beach, Fla., was closed Friday, Aug.
19, 2011, by the Office of the Comptroller of the Currency, which
appointed the Federal Deposit Insurance Corporation as receiver.
To protect the depositors, the FDIC entered into a purchase and
assumption agreement with Sabadell United Bank, National
Association, of Miami, Fla., to assume all of the deposits of
Lydian Private Bank.
The five branches of Lydian Private Bank will reopen during
regular banking hours as branches of Sabadell United Bank,
National Association. Depositors of Lydian Private Bank will
automatically become depositors of Sabadell United Bank, National
Association. 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
up to applicable limits. Customers of Lydian Private Bank should
continue to use their existing branch until they receive notice
from Sabadell United Bank, National Association, that it has
completed systems changes to allow other Sabadell United Bank,
National Association, branches to process their accounts as well.
As of June 30, 2011, Lydian Private Bank had around $1.70 billion
in total assets and $1.24 billion in total deposits. In addition
to assuming all of the deposits of the failed bank, Sabadell
United Bank, National Association agreed to purchase essentially
all of the assets.
The FDIC and Sabadell United Bank, National Association, entered
into a loss-share transaction on $907.1 million of Lydian Private
Bank's assets. Sabadell United Bank, 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, please visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers with questions about the transaction should call the
FDIC toll-free at 1-800-523-0640. Interested parties also can
visit the FDIC's Web site at
http://www.fdic.gov/bank/individual/failed/lydian.html.
The FDIC estimates that the cost to the Deposit Insurance Fund
will be $293.2 million. Compared to other alternatives, Sabadell
United Bank, National Association's acquisition was the least
costly resolution for the FDIC's DIF. Lydian Private Bank is the
66th FDIC-insured institution to fail in the nation this year, and
the tenth in Florida. The last FDIC-insured institution closed in
the state was Landmark Bank of Florida, Sarasota, on July 22,
2011.
MANI VALLABH: Case Summary & 4 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Mani Vallabh, Inc.
dba Howard Johnson
107 East Frontage Road
Iowa, LA 70647
Bankruptcy Case No.: 11-20836
Chapter 11 Petition Date: August 19, 2011
Court: U.S. Bankruptcy Court
Western District of Louisiana (Lake Charles)
Judge: Robert Summerhays
Debtor's Counsel: Wade N. Kelly, Esq.
ROBICHAUX, MIZE, WADSACK & RICHARDSON, LLC
1777 Ryan Street
P.O. Box 2065
Lake Charles, LA 70601
Fax? 337) 433-1274
E-mail: wnkellylaw@yahoo.com
Scheduled Assets: $1,303,957
Scheduled Debts: $2,048,562
A list of the Company's four largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/lawb11-20836.pdf
The petition was signed by Girish Patel, president.
MANISTIQUE PAPERS: Meeting to Form Creditors Committee Today
------------------------------------------------------------
Roberta DeAngelis, United States Trustee for Region 3, will hold
an organizational meeting on Aug. 23, 2011, at 10:00 a.m. in the
bankruptcy case of Manistique Papers Inc. The meeting will be
held at:
United States Trustee's Office
J. Caleb Boggs Federal Building
844 King Street, Room 5209
Wilmington, DE 19801
The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' cases.
The organizational meeting is not the meeting of creditors
pursuant to Section 341 of the Bankruptcy Code. A representative
of the Debtor, however, may attend the Organizational Meeting, and
provide background information regarding the bankruptcy cases.
To increase participation in the Chapter 11 proceeding, Section
1102 of the Bankruptcy Code requires that the United States
Trustee appoint a committee of unsecured creditors as soon as
practicable. The Committee ordinarily consists of the persons,
willing to serve, that hold the seven largest unsecured claims
against the debtor of the kinds represented on the committee.
Section 1103 of the Bankruptcy Code provides that the Committee
may consult with the debtor, investigate the debtor and its
business operations and participate in the formulation of a plan
of reorganization. The Committee may also perform other services
as are in the interests of the unsecured creditors whom it
represents.
About Manistique Papers
Manistique Papers Inc. operates a landfill in Manistique,
Michigan, whereby residuals resulting from paper production are
deposited.
Manistique Papers Inc. filed for Chapter 11 bankruptcy protection
(Bankr. District of Del. Case No. 11-12562) on Aug. 12, 2011.
Daniel B. Butz, Esq., and Eric D. Schwartz, Esq., at Morris,
Nichols, Arsht & Tunnell LLP, represent as the Debtor's bankruptcy
counsel. Manistique Papers estimated assets of $10 million to
$50 million and debts of $50 million to $100 million in its
Chapter 11 petition.
MAQ MANAGEMENT: Can Hire Talarchyk Merrill as Counsel
-----------------------------------------------------
The Honorable Erik P. Kimbali approved the application of MAQ
Management, Inc., et al. to employ Tina M. Talarchyk, Esq. and the
law firm Talarchyk Merrill, LLC as their attorney on a general
retainer.
Judge Kimbali found that counsel are disinterested persons as
required by Section 327(a) of the Bankruptcy Code.
About MAQ Management
Based in Boca Raton, Florida, MAQ Management, Inc., and three
other affiliates serve as commercial landlords to convenience
stores and gas stations in primarily in South Florida. They filed
for Chapter 11 bankruptcy (Bankr. S.D. Fla. Cases No. 11-26571 to
11-26574) on June 15, 2011. Affiliates that sought Chapter 11
protection are Super Stop Petroleum, Inc., Super Stop Petroleum I,
Inc., and Super Stop Petroleum IV, Inc. Judge Erik P. Kimball
presides over the case. Lawyers at Talarchyk Merrill, LLC, serve
as the Debtors' counsel. MAQ Management estimated assets and
debts of $1 million to $10 million. Super Stop estimated assets
and debts of $10 million to $50 million. The petitions were
signed by Mahammad A. Qureshi, CEO.
MAQ MANAGEMENT: Branch Banking Seeks Dismissal of 2 Debtor Cases
----------------------------------------------------------------
Secured creditor Branch Banking and Trust Company asks the U.S.
Bankruptcy Court for the Southern District of Florida to dismiss
the Chapter 11 cases of Super Stop Petroleum I, Inc. and Super
Stop Petroleum IV, Inc., arguing that these are "bad faith
filings."
Representing BB&T, Kevin A. Reck, Esq., at Foley & Lardner LLP, in
Orlando, Florida, relates that both Debtors filed their Chapter 11
petitions the night before trial was scheduled to begin on the
foreclosure of their sole assets. Super Stop I's sole asset is a
vacant, unimproved real property located in Osceola County,
Florida, and Super Stop IV's sole asset is a vacant, unimproved
real property located in Orange County, Florida. BB&T believes
that the Debtors filed for bankruptcy solely for the purpose of
seeking to prevent BB&T from going forward with its state court
foreclosure action.
BB&T is the successor-in-interest to Colonial Bank by the
acquisition of assets from the Federal Deposit Insurance
Corporation as Receiver for Colonial Bank, the successor of Palm
Beach National Bank & Trust. BB&T purchased the loan obligations
from FDIC, which makes it the owner and holder of the loan
associated with Super Stop I and Super Stop IV.
Effective July 26, 2007, Super Stop I and Super Stop IV executed
in favor of BB&T's predecessor a Line of Credit in the original
principal sum of $9,966,000. The Super Stop I & IV Loan matured
by its own terms on July 26, 2009, and is secured by the Super
Stop I Property and the Super Stop IV Property.
Super Stop I and IV executed and delivered to BB&T's predecessor a
mortgage securing repayment of the Super Stop I & IV Loan by
granting the predecessor a security interest in the Super Stop I
Property and the Super Stop IV Property, which included an
assignment of rents, leases, and contract rights.
In 2009, BB&T filed an action in the Ninth Circuit in and for
Orange County, Florida to collect debts and to foreclose on the
Super Stop I and Super Stop IV Property. On June 29, 2011, the
Circuit Court issued its Findings of Facts and Conclusions of Law,
finding that BB&T was the owner and holder of the $9,966,000 Super
Stop I & IV Loan and was entitled to enforce the terms of the
note. The Circuit Court also found that the Loan was in default
because the note had matured by its terms.
Furthermore, the Circuit Court found that $14,054,215 was due and
owing BB&T from the guarantors, Mahammad and Denise Qureshi, plus
attorney's fees and post-judgment interest, according to Mr. Reck.
On July 1, 2011, the Circuit Court reduced the State Court Order
to a final judgment in favor of BB&T against Denise Qureshi on the
liabilities owed by the Debtors to BB&T, in the amount of
$14,062,117, plus reasonable attorney's fees, he continues.
The cases of Super Stop I and Super Stop IV were filed in bad
faith and should be dismissed pursuant to Section 1112(b) of the
Bankruptcy Code, Mr. Reck asserts. Moreover, Super Stop I and
Super Stop IV have no hope of reorganizing, he tells the Court.
Mr. Reck points out that the two Debtors do not have any cash or
income with which to fund a Chapter 11 plan. The Debtors' only
assets are the Super Stop I Property and the Super Stop IV
Property, which do not generate any significant income, he says.
A hearing to consider BB&T's motion to dismiss is scheduled for
Sept. 2, 2011.
About MAQ Management
Based in Boca Raton, Florida, MAQ Management, Inc., and three
other affiliates serve as commercial landlords to convenience
stores and gas stations in primarily in South Florida. They filed
for Chapter 11 bankruptcy (Bankr. S.D. Fla. Cases No. 11-26571 to
11-26574) on June 15, 2011. Affiliates that sought Chapter 11
protection are Super Stop Petroleum, Inc., Super Stop Petroleum I,
Inc., and Super Stop Petroleum IV, Inc. Judge Erik P. Kimball
presides over the case. Lawyers at Talarchyk Merrill, LLC, serve
as the Debtors' counsel. MAQ Management estimated assets and
debts of $1 million to $10 million. Super Stop estimated assets
and debts of $10 million to $50 million. The petitions were
signed by Mahammad A. Qureshi, CEO.
MARRS ELECTRIC: Case Summary & 8 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Marrs Electric Sales Co., Inc.
P.O. Box 282
Yonkers, NY 10705
Bankruptcy Case No.: 11-23666
Chapter 11 Petition Date: August 18, 2011
Court: U.S. Bankruptcy Court
Southern District of New York (White Plains)
Judge: Robert D. Drain
Debtor's Counsel: Erica R. Feynman, Esq.
RATTET PASTERNAK, LLP
550 Mamaroneck Avenue
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: efeynman@rattetlaw.com
- and -
Jonathan S. Pasternak, Esq.
RATTET PASTERNAK, LLP
550 Mamaroneck Avenue, Suite 510
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: jsp@rattetlaw.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's eight largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/nysb11-23666.pdf
The petition was signed by Jean Suwal, president.
MASTER SILICON: Incurs $129,600 Net Loss in Second Quarter
----------------------------------------------------------
Master Silicon Carbide Industries, Inc., filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
10-Q reporting a net loss of $129,634 on $4.33 million of revenue
for the three months ended June 30, 2011, compared with a net loss
of $5,634 on $2.41 million of revenue for the same period during
the prior year.
The Company also reported a net loss of $307,255 on $8.65 million
of revenue for the six months ended June 30, 2011, compared with a
net loss of $445,057 on $3.24 million of revenue for the same
period a year ago.
The Company's balance sheet at June 30, 2011, showed $28.64
million in total assets, $10.05 million in total liabilities, $10
million in redeemable preferred stock-A, $10 million in redeemable
preferred stock-B, and a $1.41 million total stockholders'
deficit.
As reported by the TCR on April 7, 2011, Child, Van Wagoner &
Bradshaw, PLLC, in Salt Lake City, expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has cash flow
constraints, an accumulated deficit, and has suffered recurring
losses from operations.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/dooMLg
About Master Silicon
Lakeville, Conn.-based Master Silicon Carbide Industries, Inc.,
through its indirectly wholly-owned operating subsidiary Yili
China, produces and sells in China high quality "green" silicon
carbide and lower-quality "black" silicon carbide (together,
hereinafter referred to as "SiC"). SiC is a non-metallic
compound that has special chemical properties and a level of
hardness that is similar to diamonds, is produced by smelting
quartz sand and refinery coke at temperatures ranging from
approximately 1,600 to 2,500 degrees centigrade in a graphite
electric resistance furnace.
MILNER ELECTRICAL: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Milner Electrical Company, Inc.
aka Milner Electrical Company
Milner Electrical
817 Winchester Road, Suite 100
Lexington, KY 40505
Bankruptcy Case No.: 11-52333
Chapter 11 Petition Date: August 18, 2011
Court: U.S. Bankruptcy Court
Eastern District of Kentucky (Lexington)
Judge: Joseph M. Scott, Jr.
Debtor's Counsel: Michael B. Baker, Esq.
THE BAKER FIRM, PLLC
6900 Houston Road, Building 600, Suite 16
Florence, KY 41042
Tel: (859) 647-7777
Fax: (859) 647-7799
E-mail: mbaker@bakerlawky.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/kyeb11-52333.pdf
The petition was signed by James I. Milner, II, vice president.
MOMENTIVE PERFORMANCE: Files Form 10-Q, Incurs $10MM Q2 Net Loss
----------------------------------------------------------------
Momentive Performance Materials Inc. filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
10-Q reporting a net loss of $10 million on $728 million of net
sales for the fiscal three-month period ended July 3, 2011,
compared with a net loss of $1 million on $651 million of net
sales for the fiscal three-month period ended June 27, 2010.
The Company also reported a net loss of $13 million on $1.38
billion of net sales for the fiscal six-month period ended July 3,
2011, compared with a net loss of $4 million on $1.25 billion of
net sales for the fiscal six-month period ended June 27, 2010.
The Company's balance sheet at July 3, 2011, showed $3.45 billion
in total assets, $4.07 billion in total liabilities and a $624
million total deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/CliAAX
About Momentive Performance
Momentive Performance Materials, Inc., is a producer of silicones
and silicone derivatives, and is engaged in the development and
manufacture of products derived from quartz and specialty
ceramics. As of Dec. 31, 2008, the Company had 25 production
sites located worldwide, which allows it to produce the majority
of its products locally in the Americas, Europe and Asia.
Momentive's customers include companies in industries, such as
Procter & Gamble, 3M, Goodyear, Unilever, Saint Gobain, Motorola,
L'Oreal, BASF, The Home Depot and Lowe's.
The Company reported a net loss of $62.96 million on $2.58 billion
of net sales for the year ended Dec. 31, 2010, compared with a net
loss of $41.67 million on $2.08 billion of net sales during the
prior year.
* * *
Momentive carries a 'B3' corporate family and probability of
default ratings from Moody's Investors Service. It has 'B-'
issuer credit ratings from Standard & Poor's Ratings Services.
As reported by the Troubled Company Reporter on Oct. 27, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on Momentive Performance Materials Inc. to 'B-' from
'CCC+'. In addition, S&P raised its second lien, senior
unsecured, and subordinated debt ratings by one notch to 'CCC'
(two notches below the corporate credit rating) from 'CCC-'. The
recovery ratings on these classes of debt remain unchanged at '6',
indicating S&P's expectation of negligible (0%-10%) recovery in
the event of a payment default.
At the same time, based on the corporate credit rating upgrade and
its updated recovery analysis, S&P raised its senior secured debt
rating by two notches to 'B' (one notch above the corporate credit
rating) from 'CCC+' and revised the recovery rating to '2' from
'3'. These ratings indicate S&P's expectation for substantial
(70%-90%) recovery in the event of a payment default.
MPM TECHNOLOGIES: Delays Filing of Second Quarter Form 10-Q
-----------------------------------------------------------
MPM Technologies, Inc., informed the U.S. Securities and Exchange
Commission that it will be late in filing its quarterly report on
Form 10-Q for the period ended June 30, 2011. The Company said
additional 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 Sept. 30, 2010, showed
$1.17 million in total assets, $15.32 million in total
liabilities, all current, and a stockholders' deficit of
$14.15 million.
The Company recorded a net loss of $1,563,759 for 2009 from a net
loss of $1,717,511 for 2008.
MT. ZION: Aug. 30 Status Hearing in Bank Suit v. Insider
--------------------------------------------------------
District Judge George M. Marovich will hold a status hearing on
Aug. 30, 2011, at 11:00 a.m. in the complaint styled, PNC Bank,
National Association, v. Ivan Djurin, No. 10 C 3785 (N.D. Ill.).
PNC Bank filed suit against Mr. Djurin to collect on three
guaranty agreements signed by Mr. Djurin. PNC made a series of
three loans to entities related to Mr. Djurin. With respect to
each loan, Mr. Djurin signed a guaranty of payment:
-- In December 2007, Colts Run LLC executed a Fourth Amended
and Restated Adjustable Rate Note in an amount greater
than $16,000,000;
-- In January 2008, PNC entered a loan agreement with Mt.
Zion Limited Partnership. Pursuant to that agreement, PNC
loaned Mt. Zion $25,250,000; and
-- In January 2008, Mt. Zion executed a mezzanine loan
Agreement.
In April 2010, Colts Run and Mt. Zion filed separate Chapter 11
bankruptcy petitions. The filings constituted an "Event of
Default" under the Colts Run Loan and the Mt. Zion Loans.
On June 11, 2010, PNC demanded immediate payment under the Mt.
Zion Guaranty, the Mezzanine Guaranty and the Colts Run Guaranty.
The Defendant made no payment.
In an Aug. 16, 2011 Memorandum Opinion and Order, Judge Marovich
granted PNC's motion for judgment on the pleadings with respect to
the merits of its claims. PNC did not move for judgment as to
damages. A copy of the Court's ruling is available at
http://is.gd/HnrNcKfrom Leagle.com.
About Colts Run
Lake Forest, Illinois-based Colts Run, LLC, owns and operates a
residential apartment project located in Lexington, Kentucky,
known as Colts Run Apartments. The Company filed for Chapter 11
bankruptcy protection (Bankr. N.D. Ill. Case No. 10-18071) on
April 23, 2010. Arthur G. Simon, Esq., David K. Welch, Esq.,
Jeffrey C. Dan, Esq., and Scott R. Clar, Esq., at Crane Heyman
Simon Welch & Clar, in Chicago, Ill, represent the Debtor in its
restructuring effort. William E. Huml & Co., Ltds., serves as the
Debtor's accountants. In its schedules, the Debtor disclosed
$25,085,211 in assets and $23,063,333 in liabilities as of the
Petition Date.
The U.S. Bankruptcy Court for the Northern District of Illinois
entered an order directing the appointment of a Chapter 11 trustee
to oversee the bankruptcy case of Colts Run LLC.
In August 2010, Colts Run filed a full-payment plan of
reorganization and an explanatory disclosure statement. Plan
distributions, the Debtor proposed, would be made from cash
deposits existing at the confirmation and from proceeds realized
from the continued operation of the Debtor's business. The Debtor
does not intend to liquidate any if its assets to make the
payments. If necessary, at the point of the balloon payment
coming due to PNC, the Debtor may borrow the funds sufficient to
make the balloon payment. The Debtor's members (i) Ivan Djurin
and (ii) The Teresa M. Baldwin Trust would retain their equity
interest in the Debtor after confirmation of the Plan.
In March 2011, PNC, which asserts a $23,172,000 claim secured by
perfected liens in substantially all the assets of the Debtor,
succeeded in its request for the appointment of a Chapter 11
trustee to take over the estate.
PNC is represented by Ronald Barliant, Esq., at Goldberg Kohn
Ltd., in Chicago, Illinois.
About Mt. Zion Limited Partnership
Lake Forest, Illinois-based Mt. Zion Limited Partnership, dba
Woodspring Apartments, owns and operates a residential apartment
project located in Florence, Kentucky, known as Woodspring
Apartments. The Company filed for Chapter 11 protection (Bankr.
N.D. Ill. Case No. 10-18075) on April 23, 2010. David K. Welch,
Esq., at Crane Heyman Simon Welch & Clar, assists the Debtor in
its restructuring effort. The Company estimated its assets and
debts at $10 million to $50 million as of the Petition Date.
PNC Bank has a secured claim of $28,100,000 and an unsecured
deficiency claim of $1,725,110. PNC is represented by Ronald
Barliant, Esq., at Goldberg Kohn Ltd., in Chicago, Illinois.
PNC has objected to the Second Amended Plan of Reorganization,
dated March 29, 2011, filed by Mt. Zion, saying the Plan fails to
satisfy Section 1129(a)(1) of the Bankruptcy Code and cannot be
confirmed.
NOW FAITH: Case Summary & 8 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Now Faith Christian Deliverance Center Churches, a
Colorado non-profit Corporation
4834 North Chambers Road
Denver, CO 80239
Bankruptcy Case No.: 11-29886
Chapter 11 Petition Date: August 19, 2011
Court: U.S. Bankruptcy Court
District of Colorado (Denver)
Judge: Howard R. Tallman
Debtor's Counsel: Lee M. Kutner, Esq.
KUTNER MILLER, BRINEN, P.C.
303 E. 17th Avenue, Suite 500
Denver, CO 80203
Tel: (303) 832-2400
E-mail: lmk@kutnerlaw.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 eight largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/cob11-29886.pdf
The petition was signed by Leon M. Emerson, senior
pastor/president.
ODYSSEY (III) DP: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Odyssey (III) DP IX, LLC
dba Westwood Village
fka CRF - Sanford, LLC
500 S. Florida Avenue, Suite 700
Lakeland, FL 33801
Bankruptcy Case No.: 11-15654
Chapter 11 Petition Date: August 19, 2011
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Catherine Peek McEwen
Debtor's Counsel: Edward J. Peterson, III, Esq.
STICHTER, RIEDEL, BLAIN & PROSSER, PA
110 East Madison Street, Suite 200
Tampa, FL 33602
Tel: (813) 229-0144
Fax: (813) 229-1811
E-mail: epeterson@srbp.com
Debtor's
Chief
Restructuring
Officer: BILL MALONEY CONSULTING
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/flmb11-15654.pdf
The petition was signed by Robert L. Madden, president of OC DIP,
LLC, manager.
Debtor-affiliates that previously filed separate Chapter 11
petitions:
* Paradise Shoppes at Apollo Beach, LLC
* Odyssey (III) DP XVII, LLC
* CRF-Panther IX, LLC
* Century/AG - Avondale, LLC
* Odyssey Properties III, LLC
* Century (III) DP III, LLC
* Odyssey (III) DP III, LLC
* Odyssey (III) DP XI, LLC
* Odyssey (VI) Commercial DP I, LLC
PERKINS & MARIE: Targets October Confirmation of Plan
-----------------------------------------------------
Perkins & Marie Callender's Inc. f/k/a The Restaurant Company and
its debtor affiliates, ask the U.S. Bankruptcy Court for the
Northern District of Delaware to approve the schedules related to
the proposed Plan of Reorganization dated as of July 14, 2011.
The plan-related schedule includes:
Disclosure Statement:
Objection Deadline: Aug. 15, at 4:00 p.m.
Hearing Date: Aug. 22, at 2:00 p.m.
Plan Confirmation:
Voting Deadline: Sept. 20, at 4:00 p.m.
Objection Deadline: Sept. 27, at 4:00 p.m.
Hearing Date: Oct. 4, at 10:00 a.m.
As reported in the Troubled Company Reporter on July 18, the
Debtors relate that the filing of the Plan and the Disclosure
Statement fulfills a significant milestone under the restructuring
support agreement that the Company entered into prior to the
commencement of its chapter 11 cases with the holders of 100
percent of the Company's 14% Senior Secured Notes due 2013 and
more than 80% of the Company's 10% Senior Notes due 2013. With
this filing, the Company intends to exit bankruptcy in Fall 2011.
The Company expects to emerge from its financial restructuring in
a significantly strengthened financial position. Pursuant to the
proposed Plan, the Company's secured noteholders will receive new
secured term loans. The proposed Plan also contemplates that the
Company's unsecured noteholders will receive equity in the
reorganized Company, and the Company's general unsecured creditors
will be entitled to elect to receive either cash or equity in the
reorganized Company. In addition, the Plan provides that the
Company will obtain exit financing in an amount of up to
$35 million to finance its operations after the Company exits
Chapter 11, which will replace the Company's current $21 million
Debtor-in-Possession credit facility. During its restructuring,
the Company will continue the process of reviewing its leases and
business contracts and identifying underperforming restaurant
locations through store level analyses of historical performance,
local market conditions and cost structure.
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. Deloitte Tax LLPserves as tax services provider.
DIP lender Wells Fargo is represented by lawyers at Paul,
Hastings, Janofsky & Walker LLP.
Roberta A. Deangelis, U.S. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors in the Debtors' cases. Ropes & Gray LLP
represents the Committee.
PERKINS & MARIE: Court Approves Ropes & Gray as Panel's Counsel
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
the Official Committee of Unsecured Creditors in the Chapter 11
case of Perkins & Marie Callender's Inc. to retain Ropes & Gray
LLP as its counsel.
Ropes & Gray will represent the Committee in the bankruptcy
proceedings. The Committee has also selected the law firm of
Landis Rath & Cobb LLP to serve as co-counsel to Ropes & Gray,
subject to the approval of the Court. Ropes & Gray and Landis
will use their best efforts to avoid duplication of efforts.
The hourly rates of Ropes & Gray's personnel are:
Partners $650 - $1,120
Special Counsel and Counsel $495 - $1,030
Associates $285 - $720
Paraprofessionals $145 - $305
Professionals with primary responsibility to the Committee are:
Mark R. Somerstein, partner $930
Benjamin L. Schneider, associate $660
Jose Raul Alcantar, associate $535
Darren T. Azman, associate $360
To the best of the Committee's knowledge, Ropes & Gray is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
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. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors in the Debtors' cases. Ropes & Gray LLP
serves as the Committee's counsel. Landis Rath & Cobb serves as
Delaware counsel for the Committee. FTI Consulting serves as
restructuring and financial advisor for the Committee.
PERKINS & MARIE: Court OKs Landis Rath as Committee's Del. Counsel
------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
the Official Committee of Unsecured Creditors of Perkins & Marie
Callender to retain Landis Rath & Cobb as Delaware counsel at
hourly rates ranging from $255 to $650 for associates through
partner.
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. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors in the Debtors' cases.
PERKINS & MARIE: Court Approves FTI as Committee's Fin'l Advisor
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
the Official Committee of Unsecured Creditors of Perkins & Marie
Callender to retain FTI Consulting (Contact: Steven Simms) as
restructuring and financial advisor for a fixed monthly fee of
$125,000 for the first two months and $100,000 per month
thereafter.
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. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors in the Debtors' cases.
PETTERS COMPANY: 8th Cir. Affirms Global Settlement With Acorn
--------------------------------------------------------------
The United States Court of Appeals for the Eighth Circuit shot
down an appeal by Interlachen Harriet Investments Ltd., from the
bankruptcy court's approval of a multi-million dollar, global
settlement in the bankruptcy cases of Petters Company, Inc., and
its affiliated debtors. The Settlement has been substantially
consummated, and the appeal has been rendered largely moot.
Nevertheless, to the extent relief could be fashioned at this
juncture, the Eighth Circuit said no such relief is warranted.
The bankruptcy court properly exercised its discretion to approve
the settlement. The Eighth Circuit, therefore, affirmed the order
approving the Settlement.
The Eighth Circuit held that the Settlement spans multiple estates
and proceedings in four separate courts. "Interlachen's appeal,
if successful, would negatively impact numerous non-parties,
including recipients of distributions from the Aviation/Elite
Plan, recipients of distributions from the PAL estate, creditors
and other parties in interest to the Polaroid estates, parties
with an interest in the Bermuda liquidation, and all parties that
received a release as part of the Settlement. Although it might be
possible to undo some aspects of the Settlement, it would
certainly be impractical and inequitable to undo them all," the
Eighth Circuit held.
Ponzi Scheme
The appeal arises out of the multi-billion-dollar Ponzi scheme
perpetrated by Thomas Petters. Over many years, Petters used
various wholly owned, special purpose entities, including Petters
Company Inc. -- PCI -- Petters Group Worldwide LLC -- PGW -- and
PAC Funding LLC -- PAC Funding -- to carry out a fraudulent
investment scheme. PCI obtained capital for the Petters
enterprises on its own account and by using the special purpose
entities to obtain billions of dollars of funding. Petters and his
entities led investor-lenders to believe that their loans were
being used to purchase electronics and other merchandise from
wholesalers to be resold to "big box" retailers. The loans were
purportedly secured by purchase orders. But the merchandise and
inventory supposedly being bought with the investors' funds were
nonexistent, and the purchase orders and related documents that
were supposed to serve as security were fabricated. As in the
prototypical Ponzi scheme, investors were not repaid with earnings
from their investments, but instead with funds Petters obtained
from other investors. In addition, Petters used investor funds to
purchase the well-known Polaroid camera brand in 2005.
On Sept. 24, 2008, the FBI and other federal agencies executed
search warrants at multiple locations and seized records of
Petters, PCI, PGW and other Petters entities. On Oct. 3, 2008,
Petters was arrested. He was charged with and found guilty of
numerous federal criminal offenses and was sentenced to 50 years
in prison.
At the time the PCI case was filed it was the largest Ponzi
scheme. It has since been eclipsed by the Bernard Madoff
investment case currently pending in the Bankruptcy Court for the
Southern District of New York.
Federal Receivership and Bankruptcies
On Oct. 2, 2008, the United States Government filed a complaint
pursuant to 18 U.S.C. Sec. 1345 and sought an asset freeze and
receivership for the benefit of the victims of the Petters fraud.
On Oct. 6, 2008, Judge Ann D. Montgomery of the United States
District Court for the District of Minnesota, in United States v.
Thomas Joseph Petters, et al., Civil Case No. 08-05248, appointed
Douglas A. Kelley as the receiver for Petters, PCI and PGW, as
well as entities 100% owned or controlled by them.
PCI, PGW, and PAC Funding were all receivership entities at one
time. The receivership court specifically granted Kelley authority
to file bankruptcy petitions for any of the receivership entities
in order to protect and preserve their assets. In October 2008
Kelley filed Chapter 11 bankruptcy petitions for PCI, PGW, PAC
Funding, and several other Petters entities. These cases have been
consolidated for purposes of joint administration under In re
Petters Company, Inc., et al., Case No. 08-45257, and Kelley was
appointed as the trustee in all of these cases. An Official
Committee of Unsecured Creditors was also appointed and has been
actively involved in the PCI Bankruptcy Cases. The PCI Bankruptcy
Cases are pending before Judge Gregory F. Kishel of the United
States Bankruptcy Court for the District of Minnesota.
Judge Kishel also presides over the related bankruptcy cases of
PBE Corporation and PBE Consumer Electronics, LLC, formerly known
as Polaroid Corporation and Polaroid Consumer Electronics, LLC.
The Polaroid Bankruptcy Cases were commenced in December 2008 and
operated as Chapter 11 debtors-in-possession. They were jointly
administered under In re Polaroid Corporation, et al., Case No.
08-46617, and in April 2009, substantially all of Polaroid's
assets were sold pursuant to 11 U.S.C. Sec. 363, generating
approximately $87 million for the Polaroid Bankruptcy Estates.
The Polaroid Bankruptcy Cases were voluntarily converted to
Chapter 7 on Sept. 1, 2009. John R. Stoebner was appointed as the
Chapter 7 trustee of the Polaroid Bankruptcy Estates.
Petters Aviation, LLC and its wholly-owned subsidiary, Elite
Landings, LLC, were initially excluded from the Receivership, but
they ultimately filed voluntary petitions for relief under Chapter
11 of the Bankruptcy Code. Judge Robert J. Kressel of the United
States Bankruptcy Court for the District of Minnesota presides
over these cases; they are captioned In re Petters Aviation, LLC,
No. 08-45136 and In re Elite Landings, LLC, Case No. 08-45210.
Acorn
Asset Based Resource Group, LLC, successor-servicer to Acorn
Capital Group, LLC, is one of the larger creditors in the
Receivership and of the Petters Bankruptcy Estates. The settlement
focuses in large part on resolving the many and complex disputes
between ABRG and various Petters entities.
Beginning in the early 2000s, Acorn originated numerous loans to
several Petters entities, including PCI, PAC Funding, Petters
Aviation, and PAL. From 2001 to 2008, Acorn invested $2.7 billion
in various Petters entities. Measured by cash invested minus cash
repaid to Acorn, Acorn lost approximately $138 million as a result
of investments in PAC Funding and PCI.
Many of the loans Acorn made to the Petters entities were assigned
directly or indirectly to various third parties, including
Stewardship Credit Arbitrage Fund, LLC, Putnam Green LLC, ACG II,
LLC -- Onshore Funds -- and three Bermuda-based entities --
Offshore Funds. After discovery of the Petters fraud, both the
Onshore Funds and Offshore Funds began to wind up their affairs,
and liquidation proceedings were commenced for the Offshore Funds
in the Supreme Court of Bermuda, Commercial Court.
Acorn -- Polaroid Litigation
Acorn has asserted claims of $290,500,725.10 against the Polaroid
Bankruptcy Estates, allegedly secured by senior liens against
substantially all of the Polaroid Bankruptcy Estates' assets.
In February 2009 Polaroid commenced an adversary proceeding
against Acorn, alleging that approximately $3.9 million in
transfers made by Polaroid to Acorn were preferential and
fraudulent transfers avoidable pursuant to Bankruptcy Code
sections 544, 547, and 548 and Minn. Stat. Sec. 513.41, et seq.
The Polaroid Adversary Proceeding has been vigorously litigated,
with both parties engaging in extensive discovery. As of the date
of the hearing on the Settlement, the Polaroid Bankruptcy Estates
had incurred more than $1 million in fees and expenses. Cross-
motions for summary judgment were pending at the time the parties
pursued (and ultimately consummated) settlement discussions.
PCI/PAC Funding -- Acorn Litigation
On Oct. 10, 2010, Kelley also commenced an adversary proceeding
against Acorn, alleging that over $2.7 billion of the transfers
made by PCI, PGW, and PAC Funding to Acorn were preferential or
fraudulent transfers avoidable under the Bankruptcy Code and
Minnesota law. As of the date of the Settlement, the Petters
Adversary had not progressed beyond the filing of the Complaint.
The Complaint also seeks disallowance of Acorn's claims --
exceeding $312 million -- against PCI and PAC Funding.
Interlachen's Involvement with PCI
Interlachen was one of the last entities to invest in the Petters
enterprises before the fraud was exposed. In April 2008 -- at a
time when PCI and other Petters entities were in default on
numerous notes, were entering into numerous forbearance
agreements, and the Ponzi scheme was collapsing -- Interlachen
entered into a short-term, high-interest loan with PCI and Petters
for $60 million. As of the petition date, $71,540,984 was due on
the loan. Interlachen was not repaid any principal and has
asserted a claim of more than $60 million against the PCI Estate.
Global Settlement
The Settlement effectively resolves all disputes between Acorn and
the other parties, thereby resolving numerous adversary
proceedings pending in four different bankruptcy cases. The
Settlement has several key components, including:
1. The Polaroid Trustee's payment of $11,500,000 to Acorn in
settlement and release of all claims and liens asserted by Acorn
against the Polaroid, Bankruptcy Estates, including alleged
secured claims totaling $290,500,725;
2. The Polaroid Trustee's payment of $3,000,000 on behalf of
Acorn to PCI and PGW to resolve avoidance claims against Acorn,
including an approximately $3.9 million preference claim;
3. The reduction of Acorn's claims against PCI and PAC
Funding from in excess of $312 million to a non-priority,
unsecured claim in the amount of $141,290,116, representing
Acorn's Ponzi scheme losses (money paid into the Ponzi scheme less
money repaid);
4. The Petters and Polaroid Trustees' separate release of
Acorn, and Acorn's release of the Petters and Polaroid Trustees;
5. Petters Aviation and Elite Landing's allowance of certain
claims, including two Acorn claims, a non-priority unsecured PGW
claim of $647,225.62, and PCI's full non-priority, unsecured claim
for $4,214,333.33.
In addition to the bankruptcy court's approval of the Settlement
in the PCI Bankruptcy Case, the Settlement was contingent on: (1)
the approval of the bankruptcy court (Kressel, J.) in the Polaroid
Bankruptcy Cases; (2) the approval of the District Court in the
Receivership Proceedings; (3) the bankruptcy court's confirmation
of the Third Modified Joint Plan of Liquidation in the Aviation
Bankruptcy Cases; and (4) approval by the Bermuda court presiding
over the wind-up and liquidation of the Offshore Funds. Judge
Kressel, the District Court, and the Bermuda court have all
approved of the settlement. The Aviation/Elite Plan was confirmed
on March 10, 2011, and became effective on March 25, 2011.
In February 2011, the bankruptcy court approved the Settlement,
explained its reasoning.
ABRG's Motion to Dismiss
On July 1, 2011, ABRG (Acorn's successor-servicer in interest)
filed a motion to dismiss Interlachen's appeal on the grounds that
the appeal has been rendered moot (constitutionally and equitably)
by the performance of many aspects of the Settlement since it was
approved by the bankruptcy court, including:
1. Trustee Stoebner (of the Polaroid Bankruptcy Estates) has
transferred $11,500,000 to Acorn;
2. Trustee Kelley has transferred $2,376,900 to Acorn on
behalf of Petters Aircraft Leasing, LLC;
3. Stoebner has transferred $3 million to PAC Funding, of
which $2,918,430 has been distributed to PCI and $81,570 has been
distributed to PGW;
4. The Aviation/Elite Plan has become effective.
5. Payments from Petters Aviation to Class 11 convenience
class claims and to Class 10 unsecured creditors have commenced.
6. Petters Aviation has transferred $4,721,703.13 to Acorn.
7. The adversary proceedings pending in the United States
Bankruptcy Court for the District of Minnesota have been dismissed
with prejudice and closed pursuant to court-approved stipulations:
a. Stoebner v. Acorn Capital Group, Adversary Proceeding
No. 09-04031;
b. Petters Aviation, LLC v. Douglas A. Kelley, Receiver
for Thomas J. Petters, individually, and for Thomas Petters, Inc.,
Adversary Proceeding No. 10-04327;
c. Petters Aviation, LLC v. Acorn Capital Group, LLC and
Asset Based Resource Group, LLC, Adversary Proceeding No. 10-
04333;
d. Petters Aviation, LLC v. Douglas A. Kelley, Chapter 11
Trustee for Petters Group Worldwide, LLC, Adversary Proceeding No.
10-04349;
e. Petters Aviation, LLC v. Douglas A. Kelley, Chapter 11
Trustee for Petters Company, Inc., Adversary Proceeding No. 10-
04350; and
f. Douglas A. Kelley v. Acorn Capital Group, LLC, et al.,
Adversary Proceeding No. 10-04441;
The appellate case is Interlachen Harriet Investments Ltd.,
Objector-Appellant, v. Douglas Arthur Kelley, as Chapter 11
Trustee for Petters Company, Inc., Petters Group Worldwide, LLC,
and PAC Funding, LLC and as Court Appointed Receiver for Thomas
Petters, Inc. and Petters Aircraft Leasing, LLC; John R. Stoebner,
as Chapter 7 trustee of the Jointly Administered Bankruptcy Cases
Captioned In re: Polaroid Corp., et al., Case No. 08-46617;
Petters Aviation, LLC; Elite Landings, LLC; Asset Based Resource
Group, LLC, Movants-Appellees, No. 11-6013 (8th Cir.). A copy of
the Eighth Circuit's Aug. 19, 2011 decision is available at
http://is.gd/d30ZTufrom Leagle.com.
PHARMACY DISTRIBUTOR: U.S. Government Loses Bid to Dismiss Suit
---------------------------------------------------------------
Bankruptcy Judge Erik P. Kimball denied the U.S. government's
request to dismiss the complaint styled, ROBERT C. FURR, Trustee
for the Bankruptcy Estate of Pharmacy Distributor Services, Inc.,
v. UNITED STATES DEPARTMENT OF TREASURY INTERNAL REVENUE SERVICE,
Adv. Proc. No. 11-01844 (Bankr. S.D. Fla.). The United States of
America argues that the trustee's fraudulent conveyance action
brought under 11 U.S.C. section 544 is not subject to waiver of
sovereign immunity in spite of the fact that section 106
explicitly waives sovereign immunity for actions under section
544. The United States argues that a rule of Florida law
prohibiting claims for refund of Florida taxes that were
voluntarily paid should be extended to bar the trustee's claims in
connection with federal taxes, citing two decisions construing
Maryland law that have been repeatedly questioned, in spite of the
fact that the so-called voluntary payment doctrine is a defense
applicable only to taxes imposed by the State of Florida and only
to refund claims brought by the payor and not fraudulent
conveyance claims. The United States argues that the trustee's
action was not timely commenced in spite of the fact that it was
filed within the period explicitly provided in section 546 as
construed by numerous published decisions.
Each of the arguments lacks merit, Judge Kimball ruled in an
Aug. 17, 2011 Order, a copy of which is available at
http://is.gd/YpPCSQfrom Leagle.com. The Court held that the
United States waived sovereign immunity for all claims addressed
in the Complaint. The Court also said the tax payment occurred no
later than Oct. 20, 2006, less than a month before the bankruptcy
filing. The four-year statute of limitations provided by Florida
Statutes section 726.110 had not expired as of the petition date.
Pursuant to section 546, the applicable limitations period to file
the adversary proceeding would have expired on May 13, 2011, one
year after the Trustee became the permanent trustee under section
702. The adversary proceeding was filed March 29, 2011.
About Pharmacy Distributor Services
Based in Jupiter, Florida, Pharmacy Distributor Services, Inc., --
http://www.pharmacydistributorservices.com/-- sold medical device
for diabetes. It filed a voluntary chapter 11 petition (Bankr.
S.D. Fla. Case No. 08-27284) on Nov. 13, 2008. Judge Erik P.
Kimball presides over the case. Eric A. Rosen, Esq. --
erosen@ericrosenlaw.com -- in Palm Beach Gardens, Florida, served
as Chapter 11 counsel. In its petition, the Debtor estimated
$100,000 to $500,000 in assets and $1 million to $10 million in
debts.
On April 13, 2010, the Court granted the Debtor's motion to
convert its chapter 11 reorganization case to a chapter 7
liquidation case. On April 15, 2010, Robert C. Furr was appointed
the interim chapter 7 trustee pursuant to section 701. A meeting
of creditors was held on May 13, 2010, at which point the Trustee
became the permanent chapter 7 trustee in the case.
PMI GROUP: Receives Continued Listing Standards Notice From NYSE
----------------------------------------------------------------
The PMI Group, Inc. disclosed that the New York Stock Exchange has
notified the Company that the Company has fallen below the NYSE's
continued listing standard that requires a minimum average closing
price of $1.00 per share over 30 consecutive trading days.
Under NYSE rules, the Company has six months from receipt of the
notice to regain compliance with the minimum share price
requirement or until the Company's next annual meeting of
stockholders, if stockholder approval is required, to cure the
deficiency. Subject to compliance with the NYSE's other listing
requirements during the cure period, the Company's common stock
will continue to be listed and trade on the NYSE.
The Company can regain compliance at any time during the six-month
cure period if on the last trading day of any calendar month
during the cure period the Company has a closing share price of at
least $1.00 and an average closing share price of at least $1.00
over the 30 trading-day period ending on the last trading day of
that month or on the last day of the cure period. If the Company
takes an action that will require approval of its stockholders by
its next annual meeting of stockholders, the condition will be
deemed cured if the price promptly exceeds $1.00 per share, and
the price remains above the level for at least the following 30
trading days. If the Company fails to regain compliance within
the required time period, the NYSE will commence suspension and
delisting procedures.
Under NYSE rules, the Company has ten business days following
receipt of the notice to respond to the NYSE and indicate its
intention to cure this deficiency or be subject to suspension and
delisting procedures. The Company has notified the NYSE, within
the required ten business-day period, that it will seek to cure
the deficiency.
The Company's business operations, Securities and Exchange
Commission reporting requirements and debt obligations are not
affected by the receipt of the NYSE notification.
About PMI Group
Walnut Creek, Calif.-based The PMI Group, Inc., through its
subsidiary, PMI Mortgage Insurance Co. and its affiliated
companies, provides residential mortgage insurance in the United
States.
RITZ INTERACTIVE: Files for Bankruptcy in Sta. Ana, Calif.
----------------------------------------------------------
Ritz Interactive Inc. sought Chapter 11 bankruptcy protection on
Aug. 19, 2011, with the U.S. Bankruptcy Court in Santa Ana,
California, reporting assets of $809,000 and debts of $7.2
million.
Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review,
reports that court papers show Ritz Interactive's executive
committee of its board of directors deemed the Chapter 11 filing
"in the best interests" of the company, its creditors and
stakeholders.
According to DBR, court papers show that David Ritz holds an
18.55% stake in the company, while the Fred H. Lerner & Carol A.
Lerner Family Trust hold an 18.19% stake. Fred Lerner is the
company's chief executive and president.
DBR relates among Ritz Interactive's debts are a $3.55 million
secured claim held by Ritz Camera. Ritz Interactive's top
unsecured trade creditors include American Express, owed about
$434,000; Federal Express, owed nearly $104,000; and Google, owed
more than $45,000.
Irvine, California-based Ritz Interactive Inc. operates Web sites
for retailers like Ritz Camera and Boaters World.
RITZ INTERACTIVE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Ritz Interactive, Inc
2010 Main Street, Suite 550
Irvine, CA 92614
Bankruptcy Case No.: 11-21690
Chapter 11 Petition Date: August 19, 2011
Court: U.S. Bankruptcy Court
Central District of California (Santa Ana)
Judge: Erithe A. Smith
Debtor's Counsel: Scott F. Gautier, Esq.
PEITZMAN WEG & KEMPINSKY LLP
2029 Century Park E., Suite 3100
Los Angeles, CA 90067
E-mail: sgautier@pwkllp.com
Scheduled Assets: $809,192
Scheduled Debts: $7,212,463
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/cacb11-21690.pdf
The petition was signed by Fred H. Lerner, president & CEO.
ROXBURY ASSOCIATES: Case Summary & 6 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Roxbury Associates LLC
602 N. Roxbury Drive
Beverly Hills, CA 90210
Bankruptcy Case No.: 11-45427
Chapter 11 Petition Date: August 18, 2011
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Barry Russell
Debtor's Counsel: Rachel S. Ruttenberg, Esq.
LAW OFFICES OF MARK E. GOODFRIEND
16255 Ventura Boulevard, Suite 205
Encino, CA 91436
Fax: (818) 783-5445
E-mail: rruttenberg@gmail.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 six largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/cacb11-45427.pdf
The petition was signed by Jonathan Ledesma, manager.
SALT CREEK: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Salt Creek Golf, LLC
525 Hunte Parkway
Chula Vista, CA 91914
Bankruptcy Case No.: 11-13898
Chapter 11 Petition Date: August 19, 2011
Court: U.S. Bankruptcy Court
Southern District of California (San Diego)
Debtor's Counsel: Michael D. Breslauer, Esq.
SOLOMON WARD SEIDENWURM & SMITH, LLP
401 B. Street, Suite 1200
San Diego, CA 92101
E-mail: mbreslauer@swsslaw.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 William Gustafson, managing member.
SHENGDATECH INC: Seeks Bankruptcy With About $181-Mil. in Debt
--------------------------------------------------------------
ShengdaTech Inc., a maker of nano precipitated calcium carbonate
for the tire industry, sought Chapter 11 protection from creditors
(Bankr. D. Nev. Case No. 11-52649).
The Shanghai-China based company said in its bankruptcy filing it
would fire all of its officers and restructure to try to recover
from an accounting scandal.
The Company disclosed $295.4 million in assets and $180.9 million
in debt as of Sept. 30 in Chapter 11 documents filed in U.S.
Bankruptcy Court in Reno, Nevada.
The Debtor disclosed that two persons/entities which directly or
indirectly own, control or hold, with power to vote, 5% or more of
its voting securities:
* Goldman Sachs Asset Management (as manager for certain of its
funds)
* Xiangzhi Chen (listed as the company's Chief Executive
Officer, President and Director on its website) and his wife
Bob Olsen, Esq., and Nancy Peterman, Esq., at Greenberg Traurig
LLP, serve as counsel to the Debtor.
A meeting of creditors under 11 U.S.C. Sec. 341 is scheduled for
Sept. 19, 2011, at 3:00 p.m. at Young Building, Room 3024, in
Reno, Nevada. Last day to file proofs of claim is Dec. 19, 2011.
ShengdaTech fell 4 cents, or 6.4%, to 59 cents Aug. 18 in over the
counter trading. The stock has dropped 88% this year, according to
Bloomberg data.
Securities Scandal
Richard Vanderford at Bankruptcy Law360 reports that ShengdaTech
admitted March 15 that it had found "potentially serious
discrepancies and unexplained issues" in its financial records, a
disclosure that halted trading of the NASDAQ-listed company's
stock and spurred several investor class actions.
According to Chapter11Cases.com, the petition also states that
ShengdaTech's board of directors created a special committee in
March of this year to "undertake an internal investigation of
issues identified by KPMG arising out of its audit for the year
ended December 31, 2010." Minutes and resolutions from a meeting
of the special committee Friday (attached to the petition) report
that, after receiving reports on the status of the investigation
and obtaining advice from "various counsel," the special committee
took various steps, including:
* Removed from office each officer of ShengdaTech "effective
immediately," specifically noting that Xiangzhi Chen has
been removed as President and Chief Executive Officer
* Removed all officers and directors of wholly-owned
subsidiary Faith Bloom Limited
* Added an officer position designated as the Chief
Restructuring Officer
* Appointed Michael Kang as the Chief Restructuring Officer
"with such powers and duties previously held by all officers
of the Corporation, including, without limitation, the Chief
Executive Officer, such other powers and duties set forth in
the engagement letter by and between the Corporation and
Alvarez & Marsal . . . and such additional powers and duties
as authorized by the Board"
* Determined that "it is desirable and in the best interests
of the Corporation" to file for chapter 11 protection and
authorized the bankruptcy filing
* Retained the following professionals:
-- Greenberg Traurig, LLP as general bankruptcy counsel
-- Skadden, Arps, Slate, Meagher & Flom LLP as special
counsel to the Special Committee of the Board
-- Jun He Law Offices to assist on China law matters
-- Conyers Dill and Pearman to assist on British Virgin
Islands law matters
-- PricewaterhouseCoopers to continue forensic accounting
work necessary to the ongoing internal investigation
-- Alvarez & Marsal.
Restoring Financial Health
ShengdaTech, Inc. said in a statement the Chapter 11 process will
facilitate the Company's financial and operational restructuring,
with the objective of restoring the Company to financial health.
Chapter 11 of the U.S. Bankruptcy Code allows a company to
continue operating its business and managing its assets in the
ordinary course of business. The U.S. Congress enacted Chapter 11
to encourage and enable a debtor business to continue to operate
as a going concern, to preserve jobs and to maximize the recovery
of all its stakeholders.
The Company's legal representative in its Chapter 11 case is
Greenberg Traurig, LLP. The Board of Directors Special Committee's
legal representative is Skadden, Arps, Slate, Meagher & Flom LLP.
A&M's Kang Named CRO
The Company also announced that Michael Kang, a managing director
at global professional services firm Alvarez & Marsal, has been
appointed Chief Restructuring Officer to lead the Company's
restructuring effort. For over 15 years, Mr. Kang has helped
numerous companies improve their operational performance and
successfully navigate through complex restructuring situations.
Through a wide range of financial advisory engagements, he has
been involved in all aspects of the reorganization process,
advised on debt restructurings and served in interim management
and financial advisory roles for both public and private
companies. Mr. Kang's recent assignments included: CEO and CRO of
Perquest, Inc., CRO of Hines Horticulture, Inc. restructuring
advisor to Citadel Broadcasting and many others.
"Mike's vast experience and proven track record in assisting
companies through complex situations make him the right person to
lead ShengdaTech through its restructuring process," said A. Carl
Mudd, ShengdaTech's Chairman of the Special Committee and Audit
Committee. "I look forward to working with Mike and ShengdaTech's
bondholders to develop a consensual restructuring plan intended to
maximize value to all stakeholders."
About ShengdaTech
Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano
precipitated calcium carbonate for the tire industry. ShengdaTech
converts limestone into nano-precipitated calcium carbonate (NPCC)
using its proprietary and patent-protected technology. NPCC
products are increasingly used in tires, paper, paints, building
materials, and other chemical products. In addition to its broad
customer base in China, the Company currently exports to
Singapore, Thailand, South Korea, Malaysia, India, Latvia and
Italy.
SHENGDATECH INC: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Shengda Tech, Inc.
c/o Lionel Sawyer & Collins, Ltd.
50 W. Liberty Street, Suite 1100
Reno, NV 89501
Bankruptcy Case No.: 11-52649
Chapter 11 Petition Date: August 19, 2011
Court: U.S. Bankruptcy Court
District of Nevada (Reno)
Judge: Bruce T. Beesley
Debtor's Counsel: Bob L. Olson, Esq.
GREENBERG TRAURIG LLP
3773 Howard Hughes Parkway, Suite 500
Las Vegas, NV 89169
Tel: (702) 792-3773
Fax: (702) 792-9002
E-mail: lvecffilings@gtlaw.com
- and -
Miriam G. Bahcall, Esq.
GREENBERG TRAURIG, LLP
77 W. Wacker Drive, Suite 3100
Chicao, IL 60601
Tel: (312) 456-8400
Fax: (312) 456-8435
E-mail: bahcallm@gtlaw.com
- and -
Nancy A. Peterman, Esq.
GREENBERG TRAURIG, LLP
77 W. Wacker Drive, Suite 2500
Chicago, IL 60601
Tel: (312) 456-8400
Fax: (312) 456-8435
E-mail: petermann@gtlaw.com
- and -
Paul Ferak, Esq.
GREENBERG TRAURIG, LLP
77 W. Wacker Drive, Suite 3100
Chicago, IL 60601
Tel: (312) 456-8400
Fax (312) 456-8435
E-mail: ferakp@gtlaw.com
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The 20 largest unsecured creditors are owed about $167.5 million.
Bank of New York Mellon Corp. is the biggest, acting as the
indenture trustee for 6.5 percent noteholders owed about
$130 million. The bank is also listed as the trustee for 6
percent noteholders owed about $36.3 million.
Bond debt claims in unknown amounts are also listed for Zazove
Associates, LLC; CQS (UK) LLP; Radcliffe Capital Management;
Citadel Group; CNA Partners; Lazard Asset Management LLC; Deutsche
Bank Securities; Advent Capital Management, LLC; and CNH Partners.
Other large claims are listed for outstanding professional fees
owing to several firms.
The petition was signed by A. Carl Mudd, chair of Special
Committee of the Board and Audit Committee.
SPECTRAWATT, INC.: Case Summary & 9 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: SpectraWatt, Inc.
2070 Route 52, Building 334 Zip 23A
Hopewell Junction, NY 12533
Bankruptcy Case No.: 11-37366
Chapter 11 Petition Date: August 19, 2011
Court: U.S. Bankruptcy Court
Southern District of New York (Poughkeepsie)
Judge: Cecelia G. Morris
Debtor's Counsel: Mark W. Wege, Esq.
KING & SPALDING LLP
1100 Louisiana Street, Suite 4000
Houston, TX 77002
Tel: (713) 751-3200
Fax: (713) 751-3290
E-mail: MWege@kslaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Brad Walker, chief restructuring
officer and CEO.
Debtor's List of nine Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Avantor Performance Materials Factory - Materials $186,709
222 Red School Lane
Phillipsburg, NJ 08865
State of Delaware-Secretary of Taxes $143,515
State
P.O. Box 898
Dover, DE 19903
Camstar Systems Inc. Office $67,967
13024 Ballantyne Commons Parkway, Suite 300
Charlotte, NC 28277
Kelly Services Consultants/ $55,216
Contractors
Washington County Taxes $35,519
Assessment & Taxation
Oregon Health and Science Rent $12,184
University
Portland State University Research and $9,951
Development
Viking Industries Factory - Other $7,878
Ferro Corporation Factory - Materials Disputed
SUMMO INC: Sold Cars to Owner's Granddaughter for $4,000
--------------------------------------------------------
Summo, Inc., disclosed in papers filed in Court that two company
cars, a 1978 Cadillac and a 1996 Cadillac, were sold last year to
Jenna Machietto, the company owner's granddaughter, for $4,000 in
the aggregate. The Debtor also reported earning $1,050,000 in May
2009 from the sale of real estate. The proceeds from the May 2009
deal were paid directly to lender Frontier Bank.
The Debtor also disclosed paying $2,500 to Usiak Law Firm in
August 2011 for bankruptcy-related services.
The disclosures were part of the Statement of Financial Affairs
filed by the Debtor in the bankruptcy case.
About Summo Inc.
Pueblo, Colorado-based Summo Inc., fka Pinion Ridge, LLC, filed
for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 11-28971) on
Aug. 9, 2011. Judge Elizabeth E. Brown presides over the case.
Daniel K. Usiak, Jr., Esq., at Usiak Law Firm, serves as the
Debtor's bankruptcy counsel. The Debtor scheduled $15,845,500 in
assets and $4,809,760 in debts. The petition was signed by John
Musso, president.
SUMMO INC: Sec. 341 Creditors Meeting Set for Sept. 15
------------------------------------------------------
The U.S. Trustee in Denver, Colorado, will convene a Meeting of
Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case
of Summo Inc. on Sept. 15, 2011, at 9:30 a.m. at UST Conference
Room (New).
The debtor's representative must be present at the meeting to be
questioned under oath by the trustee and by creditors. Creditors
are welcome to attend, but are not required to do so. The meeting
may be continued and concluded at a later date without further
notice. The court, after notice and a hearing, may order that the
United States trustee not convene the meeting if the debtor has
filed a plan for which the debtor solicited acceptances before
filing the case.
About Summo Inc.
Pueblo, Colorado-based Summo Inc., fka Pinion Ridge, LLC, filed
for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 11-28971) on
Aug. 9, 2011. Judge Elizabeth E. Brown presides over the case.
Daniel K. Usiak, Jr., Esq., at Usiak Law Firm, serves as the
Debtor's bankruptcy counsel. The Debtor scheduled $15,845,500 in
assets and $4,809,760 in debts. The petition was signed by John
Musso, president.
SUMMO INC: Status Conference Set for Sept. 15
---------------------------------------------
The Bankruptcy Court will hold a Status Conference in Summo Inc.'s
Chapter 11 case on Sept. 15, 2011, at 11:00 a.m. BRCH Courtroom
C501.
About Summo Inc.
Pueblo, Colorado-based Summo Inc., fka Pinion Ridge, LLC, filed
for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 11-28971) on
Aug. 9, 2011. Judge Elizabeth E. Brown presides over the case.
Daniel K. Usiak, Jr., Esq., at Usiak Law Firm, serves as the
Debtor's bankruptcy counsel. The Debtor scheduled $15,845,500 in
assets and $4,809,760 in debts. The petition was signed by John
Musso, president.
TALBITZER CONSTRUCTION: Case Summary & 20 Largest Unsec Creditors
-----------------------------------------------------------------
Debtor: Talbitzer Construction, LLC
4553 Freemont
Camas, WA 98607
Bankruptcy Case No.: 11-46593
Chapter 11 Petition Date: August 17, 2011
Court: United States Bankruptcy Court
Western District of Washington (Tacoma)
Judge: Paul B. Snyder
Debtor's Counsel: John D. Nellor, Esq.
NELLOR RETSINAS CRAWFORD PLLC
1201 Main St.
P.O. Box 61918
Vancouver, WA 98666
Tel: (360) 695-8181
E-mail: jd@nellorlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/wawb11-46593.pdf
The petition was signed by Howard Talbitzer, member.
TERRESTAR NETWORKS: Noteholders Have Valid Lien on S-Band License
-----------------------------------------------------------------
TerreStar Networks, Inc., is a mobile satellite services provider
whose business requires a Federal Communications Commission
license to use 20 MHz of a 2 GHz S-Band spectrum. Pursuant to
certain FCC declaratory rulings, Sprint Nextel filed $104 million
in claims against the Debtors for the Debtors' alleged share of
Sprint's costs to clear the bandwidth that TerreStar now uses. To
satisfy its admittedly unsecured obligation, Sprint asserts that a
lien on TerreStar's license assets held by the 15% senior secured
noteholders -- facially superior in priority to Sprint's claim --
should either be (a) declared invalid; or (b) subordinated to
Sprint's claim.
In the lawsuit styled, Sprint Nextel Corporation, and Official
Committee of Unsecured Creditors of Terrestar Networks, Inc., et
al., Plaintiff, and Plaintiff-Intervenor, v. U.S. Bank National
Association, in its capacity as Indenture Trustee and Collateral
Agent for the 15.0% Senior Secured Payment-In-Kind Notes due 2014,
Ad Hoc Group of Noteholders of 15% Secured Notes, and Terrestar
Networks, Inc., et al., Defendant, and Defendant-Intervenors, Adv.
Proc. No. 10-05461 (Bankr. S.D.N.Y.), cross motions for partial
summary judgment were filed relating the validity of the
Noteholders' lien in relation to Sprint's claim.
Sprint's complaint has four counts, each alleging a different
theory for its position. In Count I, Sprint maintains that the
Noteholders' lien cannot attach to the S-Band License itself, and
the lien is, therefore, invalid. Count II argues that even if the
Noteholders' lien might be permissible as to the economic value
associated with the license, the lien is not effective because (a)
it could not attach under Article 9 of the New York Uniform
Commercial Code until after a sale of the license assets occurred;
and (b) such lien is not permitted under Bankruptcy Code Section
552, which prohibits liens on property acquired after the
bankruptcy filing. Count III of Sprint's complaint argues that,
assuming there is a valid lien on the S-Band License, the lien
should be invalidated or subordinated to Sprint's claim for
reimbursement under the equities of the case provision of
Bankruptcy Code Section 552(b)(1). Finally, Count IV contends that
the Noteholders' lien should be subordinated to Sprint's claim
pursuant to Bankruptcy Code Section 506(a)(1) and Article 9 of the
NYUCC because the FCC conditioned TerreStar's license upon
reimbursement to Sprint for clearing the bandwidth that TerreStar
now uses.
Sprint seeks summary judgment on Counts I, II, and IV. The
Official Committee of Unsecured Creditors appointed in the
Debtors' Chapter 11 cases supports Sprint's motion on Counts I and
II, but maintains that the remaining counts are not ripe for
summary judgment because discovery is incomplete. U.S. Bank, the
indenture trustee and collateral agent for the Noteholders,
opposes Sprint's motion and has cross moved for summary judgment
on all four counts. An ad hoc committee representing the
Noteholders in the Debtors' Chapter 11 cases joins U.S. Bank's
motion on Counts I and II.
U.S. Bank and the Noteholders acknowledge the case law holding
that a security interest may not be granted in an FCC license
itself but argue that it is nonetheless well established that a
lien may exist on the economic value of an FCC license. They
maintain that the security agreement here grants a security
interest in all economic value relating to TerreStar's S-Band
License and that such a lien is not barred by Article 9 of the
NYUCC or Section 552 of the Bankruptcy Code.
In an Aug. 19, 2011 Memorandum of Decision, Bankruptcy Judge Sean
H. Lane held that U.S. Bank and the Noteholders have a valid lien
on the economic value of the S-Band License, and nothing in
Article 9 of the NYUCC or Section 552 invalidates this lien.
Accordingly, the Court granted summary judgment to U.S. Bank and
the Noteholders on Counts I and II, and denied summary judgment to
Sprint and the Committee. As for Count III, the Court concluded
that the equitable claim is fact dependent and not ripe for
summary judgment until after the completion of discovery. The
Court also declined to grant Sprint priority over the Noteholders'
lien based on relevant FCC rulings and, therefore, denied Sprint's
motion on Count IV while granting the motion of U.S. Bank.
A copy of Judge Lane's decision is available at
http://is.gd/NIvwh9from Leagle.com.
About TerreStar Networks
TerreStar Corporation and TerreStar Holdings, Inc., filed
voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for
the Southern District of New York on Feb. 16, 2011.
TSC's Chapter 11 filing joins the bankruptcy proceedings of
TerreStar Networks Inc. and 12 other affiliates, which filed on
Oct. 19, 2010. The October Chapter 11 cases are procedurally
consolidated under TSN's Case No. 10-15446 under Judge Sean H.
Lane.
TSC is the parent company of each of the October Debtors. TSC has
four wholly owned direct subsidiaries: TerreStar Holdings, Inc.,
TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings
Inc.
TSC's case is jointly administered with the cases of seven of the
October Debtors under the caption In re TerreStar Corporation, et
al., Case No. 11-10612 (SHL). The seven Debtor entities who
sought joint administration with TSC are TerreStar New York Inc.,
Motient Communications Inc., Motient Holdings Inc., Motient
License Inc., Motient Services Inc., Motient Ventures Holdings
Inc., and MVH Holdings Inc.
TSC is a Delaware corporation whose main asset is the equity in
non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use
a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by
the Federal Communication Commission. TSC also has an indirect
89.3% ownership interest in TerreStar Network, Inc., which
operates a separate and distinct mobile communications business.
TerreStar Holdings is a Delaware corporation that directly holds
100% of the interests in 1.4 Holdings LLC.
TerreStar Networks -- TSN -- the principal operating entity of
TSC, developed an innovative wireless communications system to
provide mobile coverage throughout the United States and Canada
using satellite-terrestrial smartphones. The system, however,
required an enormous amount of capital expenditures and initially
produced very little in the way of revenue. TSN's available cash
and borrowing capacity were insufficient to cover its funding;
thus, forcing TSN to seek bankruptcy protection in October 2010.
TSC estimated assets and debts of $100 million to $500million in
its Chapter 11 petition.
Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP,
in New York, serves as counsel for the TSC and TSN Debtors.
Garden City Group is the claims and notice agent. Blackstone
Advisory Partners LP is the financial advisor. The Garden City
Group, Inc., is the claims and noticing agent in the Chapter 11
cases.
Otterbourg Steindler Houston & Rosen P.C. is the counsel to the
Official Committee of Unsecured Creditors formed in TSN's Chapter
11 cases. FTI Consulting, Inc., is the Committee's financial
advisor.
TerreStar has signed a contract to sell its business to Dish
Network Corp. for $1.38 billion. TerreStar cancelled a June 30
auction because there were no competing bids submitted by the
deadline.
Attorneys for Sprint Nextel Corp. are:
Darryl Scott Laddin, Esq.
Frank N. White, Esq.
Matthew T. Covell, Esq.
ARNALL GOLDEN GREGORY LLP
171 17th Street, Suite 2100
Atlanta, GA 30363-1031
Tel: 404-873-8120
404-873-8121
E-mail: darryl.laddin@agg.com
Counsel to U.S. Bank, N.A.:
Franklin Ciaccio, Esq.
Gerald Griffin, Esq.
Bryce Bernards, Esq.
CARTER LEDYARD & MILBURN LLP
2 Wall Street
New York, NY 10005
Tel: 212-238-8864
Fax: 212-732-3232
E-mail: ciaccio@clm.com
griffin@clm.com
bernards@clm.com
Attorneys for Ad Hoc Group of Holders of 15% Senior Secured Notes
are:
Jonathan S. Henes, Esq.
Joseph Serino, Jr., Esq.
Hunter Murdock, Esq.
Christopher T. Greco, Esq.
Patrick J. Nash, Jr., Esq.
KIRKLAND & ELLIS LLP
601 Lexington Avenue
New York, NY 10022
Tel: 212-446-4927
Fax: 212-446-4900
E-mail: jonathan.henes@kirkland.com
joseph.serino@kirkland.com
hunter.murdock@kirkland.com
WACCAMAW BANKSHARES: Gets Letter From Nasdaq Relating to Late 10-Q
------------------------------------------------------------------
Waccamaw Bankshares, Inc., the bank holding company for Waccamaw
Bank, announced Aug. 22 that it received a non-compliance notice
from The Nasdaq Stock Market stating that the company is not in
compliance with Nasdaq Listing Rule 5250(c)(1) because the company
has not timely filed its Quarterly Report on Form 10-Q for the
quarter ended June 30 with the Securities and Exchange Commission.
On June 24, the Listing Qualifications Department of Nasdaq denied
the company's request for continued listing on the Nasdaq Global
Market. The company is subject to delisting because it has not
filed its Annual Report on Form 10-K for 2010 or its Quarterly
Report on Form 10-Q for the quarter ended March 31 with the
Securities and Exchange Commission.
The company appealed the June 24 delisting determination to the
Nasdaq Hearings Panel and appeared before the Hearings Panel on
August 4. The Hearings Panel has not yet issued a decision. The
company's securities will remain listed on the Nasdaq Global
Market until a decision is rendered by the Hearings Panel. The
Hearings Panel will take the latest non-compliance notice into
account when making its decision.
As disclosed in the company's Form 12b-25, Notification of Late
Filing, filed with the Securities and Exchange Commission on
August 15 the Company has not yet completed its financial
statements for the quarter ended June 30. Three complex
transactions completed by the Company in 2010 are at the center of
the delay -- the sale of problem loans, purchase of home equity
lines of credit, and a private placement of preferred stock. The
10-K and 10-Q reports cannot be filed with the SEC until the audit
of the Company's financial statements is complete.
About Waccamaw Bankshares, Inc.
Waccamaw Bankshares, Inc., is the holding company for Waccamaw
Bank, a North Carolina-chartered community bank. We are
headquartered in Whiteville, North Carolina and conduct our
business through seventeen full-service banking offices located in
Whiteville, Tabor City, Chadbourn, Elizabethtown, Shallotte (2),
Holden Beach, Southport (2), Sunset Beach, Oak Island, and
Wilmington, North Carolina and Heath Springs, Conway (2),
Socastee, and Little River, South Carolina. Our primary market
area includes Columbus, Bladen, Brunswick and New Hanover Counties
of North Carolina and Lancaster and Horry Counties of South
Carolina. Waccamaw Bank began operations in Whiteville, North
Carolina on September 2, 1997 and on June 30, 2001 became our
wholly owned subsidiary upon completion of our reorganization into
a bank holding company. We conduct all of our business activities
through our banking subsidiary, Waccamaw Bank. The bank's deposits
are insured up to applicable limits by the FDIC. Our principal
executive office is located at 110 North J.K. Powell Boulevard,
Whiteville, North Carolina 28472 and our telephone number is (910)
641-0044. The Web site is http://www.waccamawbank.com/
* S&P Speculative-Grade Composite Spread Widens to 712 Bps
----------------------------------------------------------
Standard & Poor's speculative-grade composite spread widened by
7 basis points (bps) to 712 bps, while the investment-grade
composite spread widened by 2 bps to 203 basis bps.
By rating, the 'AA' spread expanded by 1 bp to 147 bps. The 'A'
spread remained flat at 177 bps. The 'BBB' spread expanded by 2
bps to 241 bps. The 'BB' spread widened by 4 bps to 517 bps. The
'B' spread expanded by 8 bps to 755 bps, and the 'CCC' spread
expanded by 11 bps to 1,061 bps.
By industry, financial institutions widened by 1 bp to 322 bps.
Banks expanded by 5 bps to 320 bps. Industrials widened by 2 bps
to 325 bps. Utilities remained unchanged at 200 bps.
Telecommunications expanded by 4 bps to 352 bps.
The investment-grade and speculative-grade composite spreads are
currently at their highest points for the year. Since the
beginning of August, the investment-grade spread has increased by
20%, while the speculative grade spread is up by 28%. S&P expects
continued volatility in the near term, especially in the
speculative-grade segment, which could result from both positive
and negative factors. On the positive side, S&P expects U.S.
corporate defaults to remain low in the short term. On the
negative side, an increase in volatility in the financial markets,
influenced partially by sovereign rating concerns, could continue
to weigh on risky assets.
* Banco Sabadell Buys Failed Florida Bank as Toll Rises to 68
-------------------------------------------------------------
Dakin Campbell at Bloomberg News reports that Banco Sabadell SA,
the Spanish firm that owns a bank in Florida, purchased a failed
lender while U.S. regulators shuttered three others last week,
pushing the year's tally to 68.
Sabadell United Bank, a Miami-based subsidiary, bought Palm Beach,
Florida-based Lydian Private Bank, the Federal Deposit Insurance
Corp. said Aug. 19 on its Web site. Lenders in Georgia and
Illinois were also closed. The three failures, and a fourth on
Thursday, drained the deposit-insurance fund of $374.8 million.
"This acquisition is a great fit for us, for Lydian Private Bank's
customers and for the communities we serve," Fernando Perez-
Hickman, chairman of the Americas for Banco Sabadell, said in a
statement.
2011 Failed Banks List
The FDIC was appointed as receiver for the closed banks. To
protect the depositors, the FDIC entered into a purchase and
assumption agreement with various banks that agreed to assume the
deposits of most of the closed banks. The FDIC also entered into
loss-share transactions on assets bought by the banks.
For this year, the failed banks are:
Loss-Share
Transaction Party FDIC Cost
Assets of Bank That Assumed to Insurance
Closed Bank Deposits & Bought Fund
Closed Bank (millions) Certain Assets (millions)
----------- ---------- -------------- -----------
First Choice Bank Geneva $141.0 Inland Bank & Trust $31.0
First Southern Nat'l $164.6 Heritage Bank $39.6
of the South
Lydian Private Bank $1,700.0 Sabadell United Bank $293.2
Public Savings Bank $46.8 Capital Bank, N.A. $11.0
1st Nat'l Bank of Olathe $538.1 Enterprise Bank & Trust $116.6
Bank of Whitman $548.6 Columbia State Bank $134.8
Bank of Shorewood $110.7 Heartland Bank and Trust $25.6
Integra Bank $2,200.0 Old National Bank $170.7
BankMeridian, N.A. $239.8 SCBT N.A. $65.4
Virginia Business $95.8 Xenith Bank $17.3
Bank of Choice $1,070.0 Bank Midwest, N.A. $213.6
LandMark Bank of Fla. $275.0 American Momentum $34.4
Southshore Community $46.3 American Momentum $8.3
Summit Bank $72.0 The Foothills Bank $11.3
First Peoples Bank $228.3 Premier American Bank $7.4
One Georgia Bank $186.3 Ameris Bank $44.4
High Trust Bank $192.5 Ameris Bank $66.0
Colorado Capital $717.5 First-Citizens Bank $283.8
First Chicago Bank $959.3 Northbrook Bank $284.3
Signature Bank $66.7 Points West Community $22.3
Mountain Heritage $103.7 First American Bank $41.1
First Commercial Bank $98.6 Stonegate Bank $28.5
McIntosh State Bank $339.9 Hamilton State Bank $80.0
Atlantic Bank and Trust $208.2 First Citizens Bank $36.4
First Heritage Bank $173.5 Columbia State $34.9
First Georgia Banking $731.0 CertusBank $156.5
Atlantic Southern $741.9 CertusBank $273.5
Summit Bank $142.7 Columbia State $15.7
Coastal Bank $129.4 Premier American Bank $13.4
Community Central $476.3 Talmer Bank & Trust $183.2
The Park Avenue Bank $953.3 Bank of the Ozarks $306.1
Cortez Community Bank $70.9 Florida Community Bank $18.6
First National Bank $352.0 Florida Community Bank $42.9
First Choice Community $308.5 Bank of the Ozarks $92.4
Heritage Banking $224.0 Trustmark National $49.1
Rosemount National $37.6 Central Bank $3.6
Nexity Bank $793.7 AloStar Bank of Commerce $175.4
New Horizons Bank $110.7 Citizens South Bank $30.9
Bartow County Bank $330.2 Hamilton State Bank $69.5
Superior Bank $3,000.0 Superior Bank, N.A. $259.6
Nevada Commerce Bank $144.9 City National Bank $31.9
Western Springs $186.8 Heartland Bank $31.0
Bank of Commerce $163.1 Advantage National $41.9
Legacy Bank $190.4 Seaway Bank and Trust $43.5
First Nat'l Bank of Davis $90.2 The Pauls Valley National $26.5
Valley Community Bank $123.8 First State Bank $22.8
Citizens Bank $214.3 Heritage Bank $59.4
San Luis Trust $332.6 First California $96.1
Habersham Bank $387.6 SCBT National $90.3
Charter Oak Bank $120.8 Bank of Marin $21.8
Sunshine State $125.5 Premier American $30.0
Badger State Bank $83.8 Royal Bank $17.5
Canyon National $210.9 Pacific Premier Bank $10.0
Peoples State Bank $390.5 First Michigan Bank $87.4
American Trust Bank $238.2 Renasant Bank $71.5
Community First $51.1 Northbrook Bank $11.7
North Georgia Bank $153.2 BankSouth $35.2
First Community Bank $2,310.0 U.S. Bank, N.A. $260.0
FirsTier Bank $781.5 No Acquirer $242.6
Evergreen State $246.5 McFarland State $22.8
The First State Bank $43.5 Bank 7 $20.1
The Bank of Asheville $195.1 First Bank $56.2
CommunitySouth Bank $440.6 Certus Bank $46.3
Enterprise Banking $100.9 [No Acquirer] $39.6
United Western Bank $2,050.0 First-Citizens Bank $312.8
Oglethorpe Bank $230.6 Bank of the Ozarks $80.4
Legacy Bank, Arizona $150.6 Enterprise Bank & Trust $27.9
First Commercial Bank $598.5 First Southern Bank $78.0
In 2010, there were 157 failed banks, compared with 140 in 2009
and just 25 for 2008.
A complete list of banks that failed since 2000 is available at:
http://www.fdic.gov/bank/individual/failed/banklist.html
884 Banks in Problem List
The FDIC said for all of 2010, mergers absorbed 197 institutions,
while 157 insured commercial banks and savings institutions
failed. This is the largest annual number of bank failures since
1992, when 181 institutions failed.
The number of institutions on the FDIC's "Problem List" increased
from 860 in the third quarter to 884 in the fourth quarter. There
were 775 banks on the list at the end of the first quarter and 829
at June 30.
Total assets of "problem" institutions increased from $379 billion
at Sept. 30, 2010, to $390 billion at the end of the fourth
quarter. The assets though are below the $403 billion reported at
year-end 2009.
FDIC Chairman Sheila C. Bair notes the rate of increase in the
number of "problem" banks has declined in each of the past four
quarters. Thirty insured institutions failed during the fourth
quarter, bringing the total number of failures for the full year
to 157. "As we have repeatedly stated, we believe that the number
of failures peaked in 2010, and we expect both the number and
total assets of this year's failures to be lower than last
year's," added Bair.
Problem Institutions Failed Institutions
-------------------- -------------------
Year Number Assets (Mil) Number Assets (Mil)
---- ------ ------------ ------ ------------
2010 884 $390,017 157 $92,085
2009 702 $402,800 140 $169,700
2008 252 $159,405 25 $371,945
2007 76 $22,189 3 $2,615
2006 50 $8,265 0 $0
2005 52 $6,607 0 $0
2004 80 $28,250 4 $170
Federal regulators assign a composite rating to each financial
institution, based upon an evaluation of financial and operational
criteria. The rating is based on a scale of 1 to 5 in ascending
order of supervisory concern. "Problem" institutions are those
institutions with financial, operational, or managerial weaknesses
that threaten their continued financial viability. Depending upon
the degree of risk and supervisory concern, they are rated either
a "4" or "5." The number and assets of "problem" institutions are
based on FDIC composite ratings. Prior to March 31, 2008, for
institutions whose primary federal regulator was the OTS, the OTS
composite rating was used.
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ----- -------- -------
ABSOLUTE SOFTWRE ABT CN 116.7 (13.2) (2.9)
ACCO BRANDS CORP ABD US 1,135.8 (28.3) 339.3
ALASKA COMM SYS ALSK US 615.6 (37.7) 20.4
AMC NETWORKS-A AMCX US 2,110.5 (1,099.4) 514.7
AMER AXLE & MFG AXL US 2,195.4 (357.9) 50.1
AMERISTAR CASINO ASCA US 2,067.1 (121.9) (40.8)
AMR CORP AMR US 25,787.0 (4,509.0) (1,769.0)
ANOORAQ RESOURCE ARQ SJ 1,016.8 (119.1) 20.8
AUTOZONE INC AZO US 5,884.9 (1,119.5) (655.3)
BLUEKNIGHT ENERG BKEP US 327.4 (45.5) (90.0)
BOSTON PIZZA R-U BPF-U CN 146.1 (101.0) 1.3
CABLEVISION SY-A CVC US 6,975.1 (5,439.8) (703.4)
CANADIAN SATEL-A XSR CN 174.4 (29.8) (55.9)
CARBONITE INC CARB US 42.6 (11.4) (18.2)
CC MEDIA-A CCMO US 16,882.1 (7,270.0) 1,501.0
CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1)
CENVEO INC CVO US 1,410.8 (330.1) 223.4
CHEFS WAREHOUSE CHEF US 81.3 (47.8) 12.9
CHENIERE ENERGY CQP US 1,726.6 (559.0) 22.7
CHENIERE ENERGY LNG US 2,619.8 (430.3) (103.2)
CHOICE HOTELS CHH US 441.3 (27.9) 6.5
CINCINNATI BELL CBB US 2,658.5 (633.6) 30.5
CLOROX CO CLX US 4,163.0 (86.0) (86.0)
DENNY'S CORP DENN US 286.7 (99.5) (39.9)
DIRECTV-A DTV US 19,177.0 (1,399.0) 1,270.0
DISH NETWORK-A DISH US 12,827.7 (92.6) 2,164.2
DISH NETWORK-A EOT GR 12,827.7 (92.6) 2,164.2
DOMINO'S PIZZA DPZ US 487.0 (1,171.4) 167.9
DUN & BRADSTREET DNB US 1,767.1 (567.8) (483.7)
EASTMAN KODAK EK US 5,334.0 (1,419.0) 842.0
ECOSYNTHETIX INC ECO CN 45.2 (346.7) 32.2
EXELIXIS INC EXEL US 454.2 (81.8) 90.2
FRANCESCAS HOLDI FRAN US 59.1 (55.5) 13.2
FREESCALE SEMICO FSL US 4,583.0 (4,401.0) 1,329.0
GENCORP INC GY US 987.3 (161.1) 94.3
GLG PARTNERS INC GLG US 400.0 (285.6) 156.9
GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9
GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5
HANDY & HARMAN L HNH US 391.4 (6.5) 18.5
HCA HOLDINGS INC HCA US 23,877.0 (7,534.0) 2,613.0
HOVNANIAN ENT-B HOVVB US 1,736.6 (349.8) 1,071.5
HUGHES TELEMATIC HUTC US 100.6 (94.9) (28.3)
INCYTE CORP INCY US 416.7 (136.3) 281.3
IPCS INC IPCS US 559.2 (33.0) 72.1
ISTA PHARMACEUTI ISTA US 135.7 (66.5) 10.4
JUST ENERGY GROU JE CN 1,471.5 (208.2) (299.7)
LIN TV CORP-CL A TVL US 797.5 (119.9) 47.4
LIZ CLAIBORNE LIZ US 1,247.3 (211.1) (52.7)
LORILLARD INC LO US 2,498.0 (831.0) 904.0
MAINSTREET EQUIT MEQ CN 475.2 (10.5) -
MEAD JOHNSON MJN US 2,526.1 (184.5) 652.4
MERITOR INC MTOR US 2,838.0 (963.0) 226.0
MOODY'S CORP MCO US 2,744.6 (16.6) 691.1
MORGANS HOTEL GR MHGC US 604.4 (51.3) 112.0
NATIONAL CINEMED NCMI US 817.6 (329.8) 62.2
NAVISTAR INTL NAV US 9,966.0 (764.0) 1,819.0
NEXSTAR BROADC-A NXST US 558.0 (183.4) 35.4
NPS PHARM INC NPSP US 253.3 (27.3) 201.5
OTELCO INC-IDS OTT US 317.0 (8.6) 21.8
OTELCO INC-IDS OTT-U CN 317.0 (8.6) 21.8
PALM INC PALM US 1,007.2 (6.2) 141.7
PDL BIOPHARMA IN PDLI US 284.3 (293.5) (4.6)
PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9)
PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9)
PRIMEDIA INC PRM US 208.0 (91.7) 3.6
PROTECTION ONE PONE US 562.9 (61.8) (7.6)
PURE INDUSTRIAL AAR-U CN 277.1 (8.6) -
QUALITY DISTRIBU QLTY US 279.4 (113.4) 47.2
QWEST COMMUNICAT Q US 16,849.0 (1,560.0) (2,828.0)
RAPTOR PHARMACEU RPTP US 20.5 (14.6) (21.4)
REGAL ENTERTAI-A RGC US 2,367.9 (538.3) (72.9)
RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4)
REVLON INC-A REV US 1,100.0 (677.5) 144.6
RSC HOLDINGS INC RRR US 2,949.6 (59.2) (205.0)
RURAL/METRO CORP RURL US 303.7 (92.1) 72.4
SALLY BEAUTY HOL SBH US 1,725.5 (260.7) 429.3
SINCLAIR BROAD-A SBGI US 1,497.3 (135.3) 69.0
SINCLAIR BROAD-A SBTA GR 1,497.3 (135.3) 69.0
SKULLCANDY INC SKUL US 108.5 (12.5) 33.2
SMART TECHNOL-A SMT US 574.8 (17.3) 194.3
SMART TECHNOL-A SMA CN 574.8 (17.3) 194.3
SUN COMMUNITIES SUI US 1,322.8 (65.4) -
TAUBMAN CENTERS TCO US 2,495.4 (426.8) -
THERAVANCE THRX US 303.1 (37.5) 253.4
TOWN SPORTS INTE CLUB US 450.6 (4.3) (35.4)
UNISYS CORP UIS US 2,642.9 (661.8) 374.7
VANGUARD HEALTH VHS US 4,162.2 (186.6) 356.5
VECTOR GROUP LTD VGR US 941.2 (50.1) 257.6
VERISIGN INC VRSN US 1,795.6 (4.2) 873.4
VERISK ANALYTI-A VRSK US 1,408.1 (144.4) (216.1)
VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3)
WARNER MUSIC GRO WMG US 3,583.0 (289.0) (630.0)
WEIGHT WATCHERS WTW US 1,104.5 (542.4) (274.4)
WORLD COLOR PRES WC CN 2,641.5 (1,735.9) 479.2
WORLD COLOR PRES WCPSF US 2,641.5 (1,735.9) 479.2
WORLD COLOR PRES WC/U CN 2,641.5 (1,735.9) 479.2
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
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related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise
Marie Varquez, 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.
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