/raid1/www/Hosts/bankrupt/TCR_Public/120119.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, January 19, 2012, Vol. 16, No. 18
Headlines
17315 COLLINS: Files for Bankruptcy to Avert Foreclosure Action
5TH AVENUE: Counsel Wants Payam Khodadadi Disassociated from Case
ACCESS PHARMACEUTICALS: Amends 8.6 Million Common Shares Offering
AGRIPROCESSORS INC: Iowa County Retains Liens After Asset Sale
ALEXANDER PROPERTIES: Bank's Response Deadline Moved to Feb. 10
AMERICAN AXLE: Fitch Affirms 'B+' Issuer Default Ratings
AMERICAN DEFENSE: Richard Torykian Resigns from Board
AR BROADCASTING: Gets Final OK to Access Lenders' Cash Collateral
ATLANTIC & PACIFIC: To Close Store in Egg Harbor Township
BAKER LOFTS: Files for Chapter 11 Bankruptcy Protection
BARBETTA LLC: Wins Approval to Hire Mark O'Neal as Broker
BC PABST: Files for Bankruptcy to Halt Foreclosure
BERNARD L. MADOFF: Deutsche Bank Denies $1.6BB Deal to Buy Debt
BERNARD L. MADOFF: Trustee Loses Bid to Appeal in Mets Case
BLITZ USA: Committee Taps FTI Consulting as Restructuring Advisor
BOBBY HAMILTON: NASCAR Driver Seeks Chapter 11 Protection
BORDERS GROUP: Liquidation Plan Declared Effective
BROADSTRIPE LLC: Sells Cable Systems to Wave Broadband
BUFFETS INC: Returns to Chapter 11 to Remove $245MM Debt
BUFFETS INC: Case Summary & 40 Largest Unsecured Creditors
CAPISTRANO TERRACE: Residents Near Reaching Settlement Deal
CATALYST PAPER: Secures Deal to Cut Debt, May File for CCAA
CENTURION PROPERTIES: Wants to Use Cash Collateral Until March 31
CHRISTIAN BROTHERS: Exclusivity Extensions Hearing Set for Jan. 23
COACH AMERICA: Asks Court to Approve April 18 Auction
COLONIAL BANCGROUP: BofA Owes $900MM for Mortgages, Says FDIC
COMSTOCK MINING: To Issue 6 Million Shares Under Incentive Plan
COSTA DORADA: Plan Outline Hearing Rescheduled to Jan. 31
CREDITRON FINANCIAL: Y&Y Holdings Acquires Telatron
CROATAN SURF: Court Rejects Royal Bank's Stay Relief Motion
CROATAN SURF: Court Approves Robert Oakes as Broker
DALLAS LOGISTICS: Successfully Exits Chapter 11
DELTRON INC: Amends 2011 Report to Correct Accountant Name
DEVELOPING EQUITIES: Court Orders Dismissal of Chapter 11 Case
EASTMAN KODAK: Said to Hire Chief Restructuring Officer
EASTMAN KODAK: Sues Samsung Over Patents Related to Tablet PCs
EDWARD DEETS: No MORs Filed; U.S. Trustee Wants Chapter 7
ELITE PHARMACEUTICALS: Makes First Shipment to ThePharmaNetwork
FREDRIC NEWMAN: Files for Chapter 11 Bankruptcy Protection
GATEWAY METRO: Wants Access to Lenders' Cash Until March 30
GENERAL MARITIME: Court Approves Deloitte & Touche as Auditor
GEORGES MARCIANO: US Trustee No Show, May Be Convicted of Contempt
GERALD CHAMPION: Sues Insurer Over Malpractice Coverage
GIORDANO'S ENTERPRISES: Trustee Sues Former Owner Over Payments
GREYSTONE PHARMA: Court OKs Deal Resolving IRS' Plan Objection
HERCULES OFFSHORE: Liftboat Catches Fire in Nigeria
HOSTESS BRANDS: Ch. 11 Runs Into Confusion Over Union Talks
HOTEL AIRPORT: Files Chapter 11 Plan, To Pay Creditors in 3 Years
HRAF HOLDINGS: Court Confirms Amended Joint Plan
HUDSON TREE: Hires Bill F. Payne as Attorney
HUDSON TREE: Files Schedules of Assets and Liabilities
IMAGEWARE SYSTEMS: Incurs $5 Million Net Loss in 2010
INDIANTOWN COGENERATION: Fitch Withdraws BB Rating on $389MM Debt
JAMESON INN: Seeks to Employ AlixPartners as Financial Advisor
JAPAN AIRLINES: Senior Executive to Succeed Onishi as President
KBK OPERATIONS: To Keep Arby's Outlet Closed as Talks Continue
KERZNER INT'L: Brookfield Asset Ends Deal to Take Over Resort
KLN STEEL: Wins Interim Court Order to Use Cash
KOREA TECHNOLOGY: Judge Gives Final Approval for $5MM DIP Loan
LA VILLITA: Court Confirms Full-Payment Reorganization Plan
LANDINGS INVESTMENT: Wants to Sell Golf Course
LEE ENTERPRISES: Operating Revenue Drops 3.9% to $199.6MM in Q1
LEE ENTERPRISES: Court Approves Sidley Austin as Bankr. Counsel
LEE ENTERPRISES: Can Hire Young Conaway as Co-Counsel
LEE ENTERPRISES: Court Approves Blackstone as Financial Advisors
LEE ENTERPRISES: Taps Lane & Waterman as General Outside Counsel
M & M DEVELOPMENT: Sells Lakewood Shopping Center for $1.35-Mil.
MAKENA GREAT: Has Interim OK to Use Wells Fargo Cash Collateral
MANISTIQUE PAPERS: DIP Loan Maturity Extended Until March 31
MARCO INC: Grand Teton Mall Can't Terminate License Deal
MERCEDES HOMES CAROLINAS: Chapter 11 Case Dismissed
METROGAS SA: U.S. Appeals Court Flips $185MM Arbitration Award
MGM RESORTS: Issues $850 Million 8.625% Senior Notes Due 2019
MICROBILT CORP: Seeks to Employ Nagel Rice as Special Counsel
MICROBILT CORP: Court OKs RBSM LLP as Financial Advisor
MMRGLOBAL INC: SCM's Right to Terminate License Pact Terminates
NORTHERN BERKSHIRE: Hearing on Cash Collateral Use Set for Feb. 2
PACIFIC MONARCH: Gets OK to Sell Assets to Rival, Lender
PEAK BROADCASTING: Commences Prepack Chapter 11 Bankruptcy
PETRA FUND: Plan Confirmation Hearing scheduled for Feb. 3
RAKHRA MUSHROOM: Files for Chapter 11 Bankruptcy Protection
REAL MEX: Exclusive Plan Filing Period Extended Through April 1
REAL MEX: May Assume or Reject Real Property Leases Until May 1
RIVER ISLAND: Can Hire Max Hagen as Special Real Estate Counsel
ROOMSTORE INC: To Close Hagerstown Showroom on Jan. 25
SHOPS AT PRESTONWOOD: Plan of Reorganization Wins Confirmation
SHOREBANK CORP: Taps Garden City Group as Claims Agent
SHOREBANK CORP: Files Schedules of Assets and Liabilities
SHOREBANK CORP: Court Sets Feb. 27 as Claims Bar Date
SHOREBANK CORP: Sec. 341(a) Creditors' Meeting on Feb. 15
SOLYNDRA LLC: Workers Object to $500,000 Bonus Plan
SOLYNDRA LLC: Lease Decision Period Extended Until April 2
SOLYNDRA LLC: Manager Bonus Plan Draws Fire From Fired Workers
SOMERSET PROPERTIES: Final Hearing Today on Use of Cash Collateral
SONYA PORRETTO: Judge Converts Case to Chapter 7 Proceeding
SOVRAN LLC: Will Seek Plan Confirmation at March 5 Hearing
SP NEWSPRINT: Wants More Time to Fashion Chapter 11 Proposal
SWAMI SHREE: Can Use S4H's Cash Collateral Through Feb. 17
SWARTVILLE LLC: TD Bank Fails in Bid to Dismiss or Convert Case
TEE INVESTMENT: Will Seek Plan Confirmation at March 5 Hearing
TMP DIRECTIONAL: Has Interim Authorization to Use Cash Collateral
TOM MARTINO: Judge Orders Auction of Airplane Hangar
TRIDENT MICROSYSTEMS: Hiring Bankruptcy Professionals
US AIRWAYS: Navigate Challenging Market With JetBlue
VALLEY TRANSPORTATION: Fitch Holds Rating on $17MM Bonds at 'BB'
WINGATE AIRPORT: Can Borrow $2 Million From Lender's Mortgage
* International Shipping Companies Seek Harbor in Chapter 11
* USAID Ducks Contractor Claim Over Delayed Shipment
* Great American Group Appoints Mike Wyse as New Vice President
* Neuberger Berman Eyes Midmarket Debt With Distressed Fund
* Cadwalader's Palmer, Troop and Mirick Join Pillsbury
* Kristian Gluck Among New Partners at Fulbright & Jaworski
* MorrisAnderson Promotes Dave Bagley to Principal
* Paul Lang Becomes Bucks County's American Inns Court Member
* Sidley Austin Among of Law360's Bankruptcy Group of 2011
* Weil Gotshal One of Law360's Bankruptcy Group of 2011
* Recent Small-Dollar & Individual Chapter 11 Filings
*********
17315 COLLINS: Files for Bankruptcy to Avert Foreclosure Action
---------------------------------------------------------------
Brian Bandell, senior reporter at South Florida Business Journal,
reports that 17315 Collins Avenue LLC, an affiliate of Wavestone
Properties, filed on Jan. 10, 212, for bankruptcy protection under
Chapter 11, listing both assets and debts of between $10 million
and $50 million.
According to the report, the filing came a day before the Company
was set to lose the property at foreclosure auction. In December,
Corus Construction Venture won a foreclosure judgment against
17315 Collins Avenue over a $15.4 million mortgage. The auction
was supposed to take place on Jan. 11, 2012.
The report notes CCV was formed by the Federal Deposit Insurance
Corp. and Starwood Capital Group to assume the loans of the failed
Corus Bank.
According to the report, the Company intends to restructure its
debt. The Company had $5.5 million in gross income in 2011. The
Debtor believes its property is worth $39.9 million. In addition
to the $15.4 million in first mortgage with CCV, there is a $13
million second mortgage with an investment fund.
Miami attorney Joshua Dobin, with Meland Russin & Budwick, P.A.,
represents the Company.
5TH AVENUE: Counsel Wants Payam Khodadadi Disassociated from Case
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Winthrop Couchot Professional Corporation, 5th Avenue Partners,
LLC's counsel, asks the U.S. Bankruptcy Court for the Central
District of California to disassociate Payam Khodadadi from the
Debtor's case. Mr. Khodadadi is now an associate at McGuireWoods.
About 5th Avenue Partners
Newport Beach, California-based 5th Avenue Partners owns and
operates the Se San Diego hotel located in San Diego, California's
financial district. The hotel has 184 guestrooms, a 5,500-square-
foot spa, a restaurant, rooftop bar and lounge, 20,000 square feet
of banquet space and meeting rooms, an outdoor rooftop pool,
fitness center and 23 unsold condominium units. 5th Avenue also
owns next to the Se San Diego hotel building a 31,000-square-foot
building, which it leases to the House of Blues music club.
5th Avenue Partners, LLC, filed for Chapter 11 protection (Bankr.
C.D. Calif. Case No. 10-18667) on June 25, 2010. Marc J.
Winthrop, Esq., at Winthrop Couchot PC, in Newport Beach,
California, serves as counsel to the Debtor. Blitz Lee & Company
serves as its accountant. Richard M. Kipperman was appointed as
chief restructuring officer. The Company estimated assets at
$10 million to $50 million and debts at $50 million to
$100 million. The Official Committee of Unsecured Creditors
tapped Baker & McKenzie LLP as counsel.
ACCESS PHARMACEUTICALS: Amends 8.6 Million Common Shares Offering
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Access Pharmaceuticals, Inc., filed with the U.S. Securities and
Exchange Commission a Pre-Effective Amendment No. 1 to Form S-1
registration statement relating to the offer and sale of up to
8,615,517 shares of common stock, $0.01 par value per share, of
the Company, by Ernest W. Andberg, Ayer Capital Partners Master
Fund, LP, Cranshire Capital Master Fund, Ltd., et al. Access is
not selling any shares of common stock in this offering and
therefore will not receive any of the proceeds from this offering.
However, if the warrants are exercised, Access will receive the
proceeds from such exercise if payment is made in cash. All costs
associated with this registration will be borne by Access.
The shares of common stock are being offered for sale by the
selling stockholders at prices established on the OTC Bulletin
Board during the term of this offering. On Jan. 13, 2012, the
last reported sale price of the Company's common stock was $1.35
per share. The Company's common stock is presently listed on the
OTC Bulletin Board under the symbol "ACCP". These prices will
fluctuate based on the demand for the shares of common stock.
Brokers or dealers effecting transactions in these shares should
confirm that the shares are registered under the applicable state
law or that an exemption from registration is available.
No underwriter or person has been engaged to facilitate the sale
of shares of common stock in this offering. None of the proceeds
from the sale of stock by the selling stockholders will be placed
in escrow, trust or any similar account.
A full-text copy of the amended prospectus is available at:
http://is.gd/UBc3ms
About Access Pharmaceuticals
Access Pharmaceuticals, Inc., is an emerging biopharmaceutical
company focused on developing pharmaceutical products primarily
based upon its nano-polymer chemistry technologies and other drug
delivery technologies. The Company currently has one approved
product, one product candidate at Phase 3 of clinical development,
three product candidates in Phase 2 of clinical development and
other product candidates in pre-clinical development.
The Company reported a net loss of $7.54 million on $481,000 of
revenue for the year ended Dec. 31, 2010, compared with a net loss
of $17.34 million on $352,000 of revenue during the prior year.
The Company also reported a net loss of $2.81 million on
$1.34 million of total revenues for the nine months ended
Sept. 30, 2011, compared with a net loss of $9.84 million on
$334,000 of total revenues for the same period during the prior
year.
The Company's balance sheet at Sept. 30, 2011, showed
$2.22 million in total assets, $25.68 million in total
liabilities, and a $23.46 million total stockholders' deficit.
As reported by the TCR on April 5, 2011, Whitley Penn LLP, in
Dallas, Texas, expressed substantial doubt about the Company's
ability to continue as a going concern following the Company's
2010 results. The independent auditors noted that the Company has
had recurring losses from operations, negative cash flows from
operating activities and has an accumulated deficit.
AGRIPROCESSORS INC: Iowa County Retains Liens After Asset Sale
--------------------------------------------------------------
Chief Bankruptcy Judge Thad J. Collins ruled that the liens of
Allamakee County, Iowa, was not extinguished by the order
approving the sale of Agriprocessors Inc.'s assets, free and
clear. SHF Holdings LLC f/k/a SHF Industries, Inc., filed a
complaint seeking a declaration that the County's tax liens on
real property SHF purchased from Agriprocessors are void and
unenforceable against SHF. In the lawsuit, captioned as SHF
HOLDINGS, LLC, f/k/a SHF INDUSTRIES, INC., v. ALLAMAKEE COUNTY,
Adv. Proc. No. 10-9070 (Bankr. N.D. Iowa), the County sought
summary judgment, which the Court granted in part. The County
also made a Motion under Federal Rule of Civil Procedure 60(b) in
the bankruptcy case seeking to set aside the order allowing sale
of substantially all of the Debtor's property free and clear of
liens. The Court, however, said the Motion to Set Aside Order
will be heard and decided with the final disposition of the
adversary case. A copy of the Court's Jan. 17, 2012 Order is
available at http://is.gd/POo6MSfrom Leagle.com.
About Agriprocessors Inc.
Headquartered in Postville, Iowa, Agriprocessors once produced
half the kosher beef and 40% of the kosher poultry in the U.S. It
filed for bankruptcy following a raid by immigration authorities
in May 2008 on the plant in Postville, Iowa, where 389 workers
were arrested for having forged immigration documents. The
Company filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No.
08-47472) on Nov. 4, 2008. The case was later transferred to Iowa
(Bankr. N.D. Iowa Case No. 08-02751). Kevin J. Nash, Esq., at
Finkel Goldstein Rosenbloom & Nash, represented the Company in its
restructuring effort. The Debtor estimated assets and debts of
$100 million to $500 million in its Chapter 11 petition.
SHF Industries Inc. purchased substantially all of the Debtor's
assets for $8.5 million in July 2009, and renamed the company Agri
Star. The Court approved the sale free and clear of all liens.
Agriprocessors' case was then converted to liquidation under
Chapter 7, at the consent of the Chapter 11 trustee appointed to
take over the estate. The Chapter 11 trustee became the trustee
in the Chapter 7 case to liquidate the Debtor's remaining assets
and provide distributions to creditors.
ALEXANDER PROPERTIES: Bank's Response Deadline Moved to Feb. 10
---------------------------------------------------------------
The Patapsco Bank will have until Feb. 10, 2012, to respond to the
motion of Alexander Properties, L.L.C. for stay pending appeal of
the order denying approval of the disclosure statement explaining
its plan, according to a Fourth Stipulation signed off by
Bankruptcy Judge Nancy V. Alquist available at http://is.gd/I3fg0d
from Leagle.com.
Based in Annapolis, Maryland, Alexander Properties, L.L.C., and
Soultana Efthimiadis filed for Chapter 11 bankruptcy (Bankr. D.
Md. Case Nos. 10-38095 and 10-38104) on Dec. 14, 2010. James C.
Olson, Esq., serves as bankruptcy counsel. Alexander Properties
estimated under $50,000 in assets and $1 million to $10 million in
debts.
Soultana Efthimiadis is represented by Aryeh E. Stein, Esq., at
Meridian Law LLC. Efthimiadis estimated $100,001 to $500,000 in
assets and $1 million to $10 million in debts.
The Patapsco Bank, Alexander Properties' lender, is represented by
Michael C. Bolesta, Esq., at Gebhardt & Smith LLP.
AMERICAN AXLE: Fitch Affirms 'B+' Issuer Default Ratings
--------------------------------------------------------
Fitch Ratings has affirmed the 'B+' Issuer Default Ratings (IDRs)
of American Axle & Manufacturing Holdings, Inc. (AXL) and its
subsidiary American Axle & Manufacturing, Inc. (AAM).
Fitch has also upgraded AAM's senior secured credit facility and
senior secured notes ratings to 'BB+/RR1' from 'BB/RR2'. AAM's
senior unsecured rating has been affirmed at 'B-/RR6'. AAM's
ratings apply to a $322 million secured revolving credit facility,
$383 million of senior secured notes and $750 million of senior
unsecured notes.
In addition, Fitch has revised the Rating Outlooks for AXL and AAM
to Positive from Stable.
The ratings for AXL and AAM reflect improvement seen in the
drivetrain and driveline supplier's credit profile over the past
two years as conditions in the global light vehicle market have
improved. In particular, the company has benefited from
relatively strong pickup and sport-utility vehicle (SUV)
production at its two largest customers, General Motors Company
(GM) and Chrysler Group LLC. In addition, AXL's business has
fundamentally strengthened as the company has experienced success
in diversifying its revenue base away from a heavy reliance on
light trucks. Its backlog of new business wins is heavily
weighted toward passenger cars and crossover vehicles. AXL also
continues to increase the geographical diversity of its revenue
base as the company wins business from a greater number of global
manufacturers.
Despite this revenue diversification, AXL's ratings continue to be
weighed upon in the near term by the company's continued heavy
exposure to GM's light truck platform; however, the significant
progress the company has made in reducing its cost base places it
in a better position today to withstand any downturn in near-term
light truck demand. Also weighing on the ratings in the near term
is Fitch's expectation that free cash flow in 2012 will be limited
by the company's need to continue making investments to support
the significant growth in its business over the intermediate tem.
Longer-term, Fitch expects free cash flow to strengthen
meaningfully, as these new programs transition into regular
production.
AXL's three-year new business backlog stands at $1.1 billion, with
only about a quarter of the awards coming from GM. Roughly 70% of
the backlog pertains to non-U.S. programs, and about two-thirds is
related to passenger car, crossover and commercial vehicle
production. With this level of increased sales diversification,
sales related to GM's full-size light truck and SUV platform are
expected to make up less than 45% of the company's revenue base
within three years, down from close to 60% in 2011. Although AXL
will remain highly exposed to GM's full-size light truck platform
for at least the next several years, this exposure is expected to
continue declining over time. In addition, Fitch expects the
company's new technologies, including its EcoTrac fully
disconnecting all-wheel drive (AWD) and electric AWD systems to
help increase its penetration in the global car and crossover
markets. Although the EcoTrac electric AWD system has been
developed through a joint venture with Saab AB, Fitch does not
expect Saab's recent bankruptcy filing to have any meaningful
effect on the program.
Growth in global auto production, including increased production
of light trucks at GM and Chrysler, has driven a significant
increase in AXL's revenue in the post-recession period. At the
same time, Fitch estimates that AXL's breakeven level has declined
to a U.S. light vehicle seasonally adjusted annual rate (SAAR) of
around 10 million, or slightly below the level of sales seen
during the depressed auto environment in 2009. The combination of
the company's lower cost base and the higher demand for its
products has driven AXL's EBITDA margins into the 15% range, which
is very high for an auto supplier. Although maintaining margins
at this level will be difficult as the company's production grows
and becomes more diversified, Fitch nonetheless expects AXL to
continue producing margins at the high end of its peer group over
the intermediate term.
Margins are likely to decline somewhat in 2012 but still remain
relatively strong, as the company continues to produce an
increasing variety of products for a more diversified customer
base. GM's production shift to the new K2XX light truck from the
current GMT900 is not expected to have a significant effect on
AXL's 2012 performance, however. GM plans to retool its plants
for the new truck on a rolling basis and use overtime at open
plants to keep capacity near 2011 levels. As a result, the
changeover is not expected to result in any significant impact on
AXL's deliveries for GM's light truck programs at any time during
the year.
On June 30, 2011, AXL terminated the Settlement and Commercial
agreement that it had entered into with GM during the depths of
the auto industry downturn. As a result of the agreement's
termination, GM's payment terms to AXL shifted from a 'net 10
days' basis to a more typical 50-day basis. In return, AXL
stopped providing a 1% early payment discount to GM. The
termination of the program had a negative one-time affect on AXL's
working capital of about $190 million during the third quarter of
2011, which, in turn, resulted in free cash flow turning negative
in the 12 months ended Sept. 30, 2011.
To offset the negative effect on AXL's cash position from the
termination of the GM agreement, AXL initially borrowed from its
secured revolving credit facility during the third quarter of last
year, and later, in the fourth quarter, it issued $200 million of
new senior unsecured notes. Fitch estimates that the increase in
debt drove leverage (debt/LTM EBITDA) up to the mid-3 times (x)
range at year end 2011, up from 2.8x at the end of the previous
quarter. Fitch expects leverage to trend downward over the
intermediate term, however, as the company gains traction on its
new business wins. Looking ahead, Fitch expects free cash flow to
be relatively weak, but positive, in 2012 with the steep ramp-up
in new business and as the company continues to make investments
in both capital assets and research and development work to
support growth opportunities in its customer base and product
offerings. Beyond 2012, free cash flow is likely to strengthen
meaningfully as the new programs coming on line in the near term
begin to produce higher levels of cash.
The funded status of AXL's defined benefit pension plans was only
62% at year-end 2010, and although year-end 2011 pension figures
have not yet been released, Fitch expects the company's funded
status was also near that level at the end of 2011. As a result,
pension contributions will also put some downward pressure on free
cash flow over the intermediate term, as low discount rates are
likely to lead to an increase in required cash contributions above
the $26 million contributed in the first nine months of 2011.
However, given AXL's relatively strong liquidity position, which
Fitch estimates was in the $500 million range (including revolver
availability) at year-end 2011, pension contributions over the
next several years are expected to be manageable. Fitch notes that
on a dollar basis, the company's pension plans were underfunded by
$253 million at year-end 2010.
As with all auto suppliers, the greatest risk to AXL's credit
profile is the potential for another slowing of the global
economy. However, this is offset somewhat by the increasing
diversification of the company's customer base and its lower cost
structure, both of which have positioned the company to better
withstand another downturn in the auto market. Furthermore, AXL's
direct exposure to a potential European recession is very limited,
with only about 3% of its revenue generated in the region. A lack
of meaningful debt maturities until 2014 further helps to mitigate
liquidity risk over the next two years.
Another ongoing risk is the potential for a rise in U.S. fuel
prices to drive a decline in light truck demand, given the still-
substantial portion of the company's revenue that is derived from
light truck production. F itch expects light truck demand to hold
up better in a rising fuel cost environment today than during the
last spike in fuel prices, however, as a result of improved truck
fuel efficiency and ongoing demand from core truck customers. In
addition to fuel price sensitivity, margins and free cash flow
could also be pressured by increasing raw materials prices,
although a decline in AXL's fixed cost base and a continued focus
on passing these costs through to customers will help to dampen
the effect.
The 'RR1' Recovery Ratings on AAM's secured revolving credit
facility and its senior secured notes reflects their strong
collateral coverage, including virtually all of the assets of AXL
and AAM, and their superior recovery prospects (estimated in the
90% to 100% range) in a distressed scenario. Fitch has revised
the Recovery Rating on AAM's senior secured debt to 'RR1' from
'RR2' following the maturity of $53 million of secured credit
facility capacity, the termination of the $100 million GM second-
lien term loan facility and a $42.5 million prepayment on the
AAM's senior secured notes, all of which have reduced the amount
of potential secured debt in the company's capital structure,
improving recovery prospects for remaining secured debt holders.
The 'RR6' Recovery Rating on AAM's senior unsecured notes
continues to reflect estimated recovery prospects in the 0% to
10% range in a distressed scenario.
The ratings of AXL and AAM could be upgraded to 'BB-' in the
intermediate term if the company continues to further diversify
its customer base, produce positive free cash flow, reduce
leverage and increase the funded status of its pension plans. On
the other hand, Fitch could undertake a negative action on the
company's ratings in the event of a substantial decline in global
light vehicle production resulting from a slowing of the global
economy or if a fall-off in light truck production, driven either
by fuel prices or economic factors, results in a material
reduction in the company's production volumes.
Fitch has taken the following rating actions:
AXL
-- IDR affirmed at 'B+'.
AAM
-- IDR affirmed at 'B+';
-- Secured credit facility rating upgraded to 'BB+/RR1' from
'BB/RR2';
-- Senior secured notes rating upgraded to 'BB+/RR1' from
'BB/RR2';
-- Senior unsecured rating affirmed at 'B-/RR6'.
The Rating Outlooks for AXL and AAM are revised to Positive from
Stable
AMERICAN DEFENSE: Richard Torykian Resigns from Board
-----------------------------------------------------
Richard P. Torykian, Sr., notified the Board of Directors of
American Defense Systems, Inc., that he was resigning as a member
of the Board effective Jan. 12, 2012.
In the Letter, Mr. Torykian claimed he was resigning because he
disagreed with certain actions taken by the Board. Until it
received the Letter, however, the Board and the Company were
unaware of Mr. Torykian's disagreement with any board actions
because all recent board actions were unanimously approved by the
Board in meetings in which Mr. Torykian actively participated and
voted.
About American Defense
Hicksville, N.Y.-based American Defense Systems, Inc., is a
defense and security products company engaged in three business
areas: customized transparent and opaque armor solutions for
construction equipment and tactical and non-tactical transport
vehicles used by the military; architectural hardening and
perimeter defense, such as bullet and blast resistant transparent
armor, walls and doors. The Company also operates the American
Institute for Defense and Tactical Studies. The Company is in the
process of negotiating a sale or disposal of the portion of its
business related to the operation of a live-fire interactive
tactical training range location in Hicksville, N.Y. The portion
of the Company's business related to vehicle anti-ram barriers
such as bollards, steel gates and steel wedges that deploy out of
the ground was sold as of March 22, 2011.
The Company's balance sheet at Sept. 30, 2011, showed $3.9 million
in total assets, $4.9 million in total liabilities, and a
stockholders' deficit of $1.0 million.
As reported in the TCR on April 26, 2011, Marcum LLP, in Melville,
New York, expressed substantial doubt about American Defense
Systems' ability to continue as a going concern, following the
Company's 2010 results. The independent auditors noted that as of
Dec. 31, 2010, the Company had a working capital deficiency of
$14.1 million, an accumulated deficit of $26.3 million, a
shareholders' deficiency of $9.8 million and cash on hand of
$428,160.
AR BROADCASTING: Gets Final OK to Access Lenders' Cash Collateral
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The U.S. Bankruptcy Court for the District of Delaware approved a
stipulation authorizing, on a final basis, AR Broadcasting
Holdings, Inc., et al., to use the cash collateral of prepetition
lenders.
The stipulation was entered among the Debtors, NexBank, SSB, as
successor administrative agent and collateral agent to Deutsche
Bank Trust Company Americas, and the lenders from time to time
party thereto.
The stipulation, provides for among other things:
-- as of the Petition Date, the Debtor owed the prepetition
secured parties $86,228,000 in respect of loans made, letters
of credit issued and other financial accommodations made by the
prepetition secured parties;
-- the Debtors would use the cash collateral to operate their
business postpetition;
-- as adequate protection from dimunition in value of the
lenders' collateral, the Debtors will grant the lenders:
a) adequate protection liens upon all prepetition and
postpetition assets and property of the Debtors; and
b) a superpriority administrative claims, subject to carve on
on certain fees.
-- the cash collateral use will expire on the effective date or
consummation date of any plan of reorganization; and
-- the prepetition agent and other prepetition secured parties
will have the right to credit bid all or any portion of the
outstanding obligations.
About AR Broadcasting
AR Broadcasting Holdings Inc., AR Broadcasting LLC, and AR
Licensing LLC sought bankruptcy protection (Bankr. D. Del. Case
Nos. 11-13674 to 11-13676) on Nov. 17, 2011. AR Broadcasting, et
al., are struggling Missouri and Texas Radio stations owned by
Cumulus Media Inc. The Chapter 11 filing is a move to restructure
the debt-heavy finances of the subsidiary companies that control
them.
Based in Atlanta, Georgia, Cumulus Media Inc. is the second
largest radio broadcaster in the United States based on station
count, controlling 350 radio stations in 68 U.S. media markets.
Judge Brendan Linehan Shannon presides over the case. DLS Claims
Administration, LLC, is the claims and notice agent. Adam G.
Landis, Esq., and William E. Chipman, Jr., Esq., at Landis Rath &
Cobb LLP, serve as bankruptcy counsel.
AR Broadcasting Holdings estimated $10 million to $50 million in
assets and $50 million to $100 million in debts. The petitions
were signed by Linda Hill, vice president and principal accounting
officer.
ATLANTIC & PACIFIC: To Close Store in Egg Harbor Township
---------------------------------------------------------
Laura Stetser at Shore News Today reports that Great Atlantic &
Pacific Tea Company Inc., the parent company of the Pathmark
grocery store in Egg Harbor Township, said that it plans to close
Egg Harbor Township store as part of its bankruptcy proceedings.
According to the report, the location would be one of 14 stores
throughout the country to close as the company prepares to emerge
from Chapter 11. Identified as "underperforming," the Black Horse
Pike location opened in the early 1970s, according to Marcy
Connor, an A&P public relations representative.
According to the report, A&P President and Chief Executive Officer
Sam Martin said, "We are continuing to take the steps necessary to
position A&P to emerge from Chapter 11 with a strong future and
ensure we remain focused on our top priority -- providing great
value and service to our customers every day. "While this was a
very difficult decision that will unfortunately impact some of our
customers, partners, associates and the surrounding communities,
these actions are absolutely necessary as we continue to
strengthen (the company) operating foundation and improve
performance."
The report notes that the store should remain open until at least
March 2012.
About Great Atlantic & Pacific
Founded in 1859, Montvale, New Jersey-based Great Atlantic &
Pacific is a supermarket retailer, operating under a variety of
well-known trade names, or "banners" across the mid-Atlantic and
Northeastern United States. Before filing for bankruptcy in 2010,
A&P operated 429 stores in 8 states and the District of Columbia
under the following trade names: A&P, Waldbaum's, Pathmark,
Pathmark Sav-a-Center, Best Cellars, The Food Emporium, Super
Foodmart, Super Fresh and Food Basics. A&P had 41,000 employees
prior to the bankruptcy filing.
A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y.
Case No. 10-24549) on Dec. 12, 2010, in White Plains, New York.
In its petition, A&P reported total assets of $2.5 billion and
liabilities of $3.2 billion as of Sept. 11, 2010.
Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C.
Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J.
Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois,
serve as counsel to the Debtors. Kurtzman Carson Consultants LLC
is the claims and notice agent. Lazard Freres & Co. LLC is the
financial advisor. Huron Consulting Group is the management
consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and
Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represent the Official Committee of Unsecured Creditors.
A&P obtained court approval for a new contract with C&S Wholesale
Grocers Inc., its principal supplier. The contract is designed to
save A&P $50 million a year when the supermarket operator emerges
from Chapter 11 reorganization.
A&P sold 12 Super-Fresh stores in the Baltimore-Washington area
for $37.83 million, plus the value of inventory. Thirteen other
locations didn't attract buyers at auction and were closed mid-
July 2011.
A&P filed a proposed Chapter 11 plan founded upon a $490 million
debt and equity financing announced this month. The proposed
financing, tentatively approved by the bankruptcy judge, allows
A&P to accept a better offer if one appears. New investors
sponsoring the plan include Yucaipa Cos., Goldman Sachs Group Inc.
and Mount Kellett Capital Management LP.
BAKER LOFTS: Files for Chapter 11 Bankruptcy Protection
-------------------------------------------------------
Jim Hayden at the Holland Sentinel, citing court documents,
reports that Entrepreneur Scott Bosgraaf's Baker Lofts LLC and
Central Lofts LLC filed for bankruptcy in federal court. The
report says Baker Lofts filed for Chapter 11 bankruptcy Jan. 10,
2012, and Central Lofts LLC filed Jan. 11, 2012, for Chapter 7
bankruptcy.
According to the report, the filings come the week after an Ottawa
County judge ruled seven of Mr. Bosgraaf's area properties and
entities must be turned over to a receiver.
The report says Mr. Bosgraaf's businesses Auto Sports Unlimited
and Faargsob LLC filed for Chapter 7 bankruptcy in May. In June,
Huntington National Bank printed a legal notice of foreclosure on
Baker Lofts.
The report says the court appointed Amicus Management Inc. of
Grand Rapids as receiver for Mr. Bosgraaf's properties, which
include sites on Lakewood Boulevard, Aniline Avenue and James
Street in Holland Township, as well as Garfield Avenue in Zeeland.
Baker Lofts, LLC, filed a Chapter 11 petition (Bankr. W.D. Mich.
Case No. 12-00189) on Jan. 11, 2012, estimating under $10 million
in assets and debts. Robert F. Wardrop, II, Esq., at Wardrop &
Wardrop, P.C., in Grand Rapids, Michigan, serves as counsel.
BARBETTA LLC: Wins Approval to Hire Mark O'Neal as Broker
---------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina authorized Barbetta, LLC, to employ Mark O'Neal of
Pickett-Sprouse Real Estate as broker to aid in the marketing and
selling of the Debtor's real properties. The Debtor will pay Mr.
O'Neal, along with any buyer's agent 6% commission based upon the
total gross sale price in accordance with the exclusive right to
sell listing agreement.
About Barbetta, LLC
Based in Selma, North Carolina, Barbetta, LLC, along with its
owners, Charles E. Hester and Barbetta G. Hester, own a combined
total of over 70 properties throughout the state of North
Carolina. A significant majority of these properties are located
in Johnston County, North Carolina; however, the Debtor, along
with the Hesters, own property in 23 separate counties across the
state of North Carolina. All of the income producing properties
are rental properties leased for either commercial or residential
use. The Debtor is the surviving entity after a merger with
Hester 1996 Family Limited Partnership, South Pollock Street
Development & Sign Co., LLC, Hester 5, LLC, and Hester 8, LLC.
The Debtor 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.
BC PABST: Files for Bankruptcy to Halt Foreclosure
--------------------------------------------------
BC Pabst Holdings LLC filed for Chapter 11 bankruptcy (Bankr. E.D.
Wis. Case No. 12-20409) on Jan. 16, 2012, listing $101,600 in
assets and $4.98 million in debts.
It is represented by:
Jeffrey C. Dan, Esq.
CRANE, HEYMAN SIMON, WELCH & CLAR
135 South LaSalle Street, Suite 1540
Chicago, IL 60603-4297
Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review,
reports that BC Pabst Holdings has ties to retired Green Bay
Packer player Mark Chmura, and owns a historic building that used
to be part of the Pabst Brewing Co. empire in downtown Milwaukee.
The three-story, 28,000-square-foot building was built in 1913 and
used to be a Pabst research lab, according to BizTimes Milwaukee.
Its renovation into the new home of Cardinal Stritch University's
downtown outpost was completed in 2009, when Stritch signed a
10-year lease, the Milwaukee Business Journal reported.
DBR relates the building in bankruptcy has been in trouble since
at least last year, when it was hit with a foreclosure lawsuit
from an affiliate of commercial real estate company Colony
Financial Inc., court papers show. The Journal Sentinel reported
that the Colony affiliate, CRE Venture 2011-1 LLC, sought payment
of $4.8 million on an overdue loan. The bankruptcy filing
automatically halts all pending litigation, including the pending
foreclosure suit.
Matthew Chmura of The Bando Chmura Group LLC signed the petition.
DBR recounts Mr. Chmura was a Packers Hall of Famer, playing as a
tight end for the football club from 1992 through 1999. Mr.
Chmura was also at the center of a scandal in which he was charged
with sexually assaulting a 17-year-old girl -- his children's
former babysitter -- at a party after her prom in 2000. He was
acquitted the following year.
BERNARD L. MADOFF: Deutsche Bank Denies $1.6BB Deal to Buy Debt
---------------------------------------------------------------
Carolina Bolado at Bankruptcy Law360 reports that Deutsche Bank
Securities Inc. last week fired back at two Bernard L. Madoff
Investment Securities LLC feeder funds, saying it had never signed
a binding agreement to buy $1.6 billion of the funds' outstanding
Madoff debt. According to Law360, DBSI said an Aug. 24
confirmation letter it gave to British Virgin Islands-based funds
Kingate Global Fund Ltd. and Kingate Euro Fund Ltd. to buy their
Madoff claims did not bind the investment bank to the deal.
As reported by the Troubled Company Reporter on Dec. 22, 2011,
Kingate Global and Kingate Euro filed a lawsuit in New York
federal court accusing the Deutsche Bank AG unit of reneging on
the deal. The Wall Street Journal's Michael Rothfeld reported
that the lawsuit filed by Kingate alleges that DBSI has been
dragging its feet since Aug. 24, when both parties signed a letter
confirming terms of its deal to purchase Madoff claims from
Kingate. The lawsuit seeks a judgment stating that the
confirmation letter is binding and that Deutsche Bank hasn't
negotiated in good faith. The hedge funds alleged the value of
the claims is down by more than $90 million since late August.
The Journal said the lawsuit is a sign of the negative
consequences of recent court decisions against the trustee
overseeing the bankruptcy of Mr. Madoff's firm. Courts have
handed down recently a series of unfavorable decisions to Irving
Picard that limit his ability to further recover money. Those
decisions have pushed down the value of Madoff-related claims to
60 cents or less on the dollar, according to the lawsuit. Such
claims traded near 75 cents about six months ago.
Richard I. Werder Jr., Esq., represents the Kingate funds.
The Journal also noted the Kingate funds have been sued by Mr.
Picard for allegedly ignoring signs of the Ponzi scheme. The
Deutsche Bank deal would allow the funds to complete a legal
settlement with Mr. Picard and distribute some money to its own
investors, the Kingate lawsuit says.
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.
Mr. Picard has filed 1,000 lawsuits seeking $100 billion from
banks such as HSBC Holdings Plc and JPMorgan Chase & Co. The
trustee has seen more than $28 billion of his claims tossed by
district judges.
About Kingate
On Sept. 4, 2009, the Supreme Court of Bermuda entered separate
orders to have the operations of Kingate Global Fund Ltd., and
Kingate Euro Fund Ltd. wound up. On Oct. 5, 2009, the Supreme
Court appointed Messrs. John McKenna, William Tacon and Richard
Fogerty as the liquidators of the Funds.
BERNARD L. MADOFF: Trustee Loses Bid to Appeal in Mets Case
-----------------------------------------------------------
Ian Thoms at Bankruptcy Law360 reports that a federal judge on
Tuesday refused to allow Irving Picard, the bankruptcy trustee for
Bernard L. Madoff's investment company, to appeal a decision that
gutted his high-profile clawback lawsuit against the owners of the
New York Mets. Law360 relates that the decision paves the way for
the already-contentious battle between Mr. Picard and Mets owners
Fred Wilpon and Saul Katz to proceed to trial, which is slated to
start March 19.
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.
Mr. Picard has filed 1,000 lawsuits seeking $100 billion from
banks such as HSBC Holdings Plc and JPMorgan Chase & Co. The
trustee has seen more than $28 billion of his claims tossed by
district judges.
BLITZ USA: Committee Taps FTI Consulting as Restructuring Advisor
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors of Blitz U.S.A.,
Inc., et al., seeks permission from the U.S. Bankruptcy Court for
the District of Delaware to retain FTI Consulting, Inc., as its
restructuring and financial advisor. FTI Consulting will, among
other things:
(a) assist with the assessment and monitoring of the Debtors'
short-term cash flow, liquidity, pre-petition claim
payments and operating results;
(b) assist with the review of any postpetition financing;
(c) assist in the review and monitoring of asset sale
processes, including, but not limited to an assessment of
the adequacy of the marketing process, completeness of any
buyer lists, review and quantification of any bids;
(d) assist the Committee in the review of financial related
disclosures required by the Court, including the Schedules
of Assets and Liabilities, the Statement of Financial
Affairs and Monthly Operating Reports; and
(e) assist in the review of any proposed plans of
reorganization and related disclosure statements.
FTI Consulting will seek payment (i) for compensation on a fixed
monthly basis of $75,000 per month for the first four months, in
accordance with Section 328(a) of the Bankruptcy Code, and on an
hourly basis thereafter, plus (ii) reimbursement of actual and
necessary expenses.
The firm's customary hourly rates are:
Senior Managing Directors $780 - $895
Director/Managing Directors $560 - $745
Consultants/Senior Consultants $280 - $530
Administration/Associates $115 - $250
FTI Consulting assures the Committee that it does not represent
any other entity having an adverse interest in connection with the
Debtors' cases.
About Blitz USA
Blitz U.S.A. Inc., is a Miami, Oklahoma-based manufacturer of
plastic gasoline cans. The company, controlled by Kinderhook
Capital Fund II LP, filed for bankruptcy protection to stanch a
hemorrhage resulting from 36 product-liability lawsuits.
Parent Blitz Acquisition Holdings, Inc., and its affiliates filed
for Chapter 11 protection (Bankr. D. Del. Case Nos. 11-13602 thru
11-13607) on Nov. 9, 2011. The Hon. Peter J. Walsh presides over
the case. Debtor-affiliate Blitz Acquisition estimated assets and
debts at $50 million to $100 million.
Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger
represents the Debtors in their restructuring efforts. The
Debtors tapped Zolfo Cooper, LLC, as restructuring advisor; and
Kurtzman Carson Consultants LLC serves as notice and claims agent.
Lowenstein Sandler PC from Roseland, New Jersey, represents the
Official Committee of Unsecured Creditors.
The Chapter 11 case is financed with a $5 million secured
loan from Bank of Oklahoma. Bank of Oklahoma, as DIP agent, is
represented by Samuel S. Ory, Esq. -- sory@fdlaw.com -- at
Frederic Dorwart Lawyers in Tulsa.
BOBBY HAMILTON: NASCAR Driver Seeks Chapter 11 Protection
---------------------------------------------------------
Nascar.speedtv.com reports that former NASCAR Sprint Cup driver
Bobby Hamilton Jr. has filed for bankruptcy under Chapter 11 in
the U.S. Bankruptcy Court in Tennessee to reorganize his debts.
According to the report, Hamilton Jr. and his wife are listed as
debtors, as is his company, Hamilton Entertainment. Hamilton Jr.
listed assets of $551,825 and liabilities of $1,293,543. More
than $929,000 of the debts are property mortgages or loans.
Hamilton Jr. also owes the Internal Revenue Service $198,000 for
2005 taxes.
BORDERS GROUP: Liquidation Plan Declared Effective
--------------------------------------------------
BankruptcyData.com reports that Borders Group's First Amended
Joint Chapter 11 Plan of Liquidation became effective, and the
Company emerged from Chapter 11 protection. The Court confirmed
the Plan on December 20, 2011.
According to the Disclosure Statement, which was approved on
November 10, 2011, "The purpose of the Plan is to liquidate,
collect and maximize the Cash value of the remaining assets of the
Debtors and make distributions in respect of any Allowed Claims
against the Debtors' Estates. The Plan is premised on the
satisfaction of Claims through creation of the Liquidating Trust
(pursuant to the Liquidating Trust Agreement) and distribution of
the proceeds raised from the sale and liquidation of the Debtors'
remaining assets, claims and Causes of Action. On the Effective
Date, the Debtors will transfer and assign to the Liquidating
Trust substantially all property and assets of the Debtors. While
the Debtors, in consultation with the Committee, may designate
that certain assets remain with the Debtors, proceeds of those
assets will constitute Liquidating Trust assets. Pursuant to the
Plan, the Liquidating Trust will pay all Allowed Priority Claims
and Administrative Expense Claims in full that have not previously
been paid by the Debtors. To the extent there are assets remaining
in the Liquidating Trust after payment of all Allowed Priority
Claims, Administrative Expense Claims and expenses of the
Liquidating Trust, all Holders of Allowed General Unsecured Claims
shall receive a Pro Rata Share Distribution of the remaining
assets of the Liquidating Trust. The Holders of Intercompany
Claims and Equity Interests shall not receive any Distributions
from the Liquidating Trust."
About Borders Group
Borders Group operated book, music and movie superstores and mall
based bookstores under the Borders, Waldenbooks, Borders Express
and Borders Outlet names, as well as Borders-branded airport
stores in the United States. At Jan. 29, 2011, the Company
operated 639 stores in the United States and 3 in Puerto Rico.
The Company also operated a proprietary e-commerce Web site --
http://www.Borders.com/-- launched in May 2008, which included
both in-store and online e-commerce components. As of Feb. 11,
2011, Borders employed a total of 6,100 full-time employees,
11,400 part-time employees, and roughly 600 contingent employees.
Borders Group Inc. and its affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in
Manhattan on Feb. 16, 2011. David M. Friedman, Esq., David S.
Rosner, Esq., Andrew K. Glenn, Esq., and Jeffrey R. Gleit, Esq.,
at Kasowitz, Benson, Torres & Friedman LLP, in New York, served as
counsel to the Debtors. Jefferies & Company's Inc. served as the
financial advisor. DJM Property Management is the lease and real
estate services provider. AP Services LLC served as the interim
management and restructuring services provider. The Garden City
Group, Inc., acted as the claims and notice agent.
Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein
LLP, served as counsel to the DIP Agents. Lowenstein Sandler
represented the official unsecured creditors committee for Borders
Group.
The Debtor disclosed $1.28 billion in assets and $1.29 billion in
liabilities as of Dec. 25, 2010.
Borders selected proposals by Hilco and Gordon Brothers to conduct
going out of business sales for all stores after no going concern
offers of higher value were submitted by the deadline.
The Court confirmed a First Amended Joint Plan of Liquidation
filed by the Debtors and the Official Committee of Unsecured
Creditors at a Dec. 20, 2011 hearing.
BROADSTRIPE LLC: Sells Cable Systems to Wave Broadband
------------------------------------------------------
DH Capital, LLC disclosed that Broadstripe has completed the sale
of its cable systems to Wave Broadband and WOW!. Broadstripe,
which filed for Chapter 11 bankruptcy protection in January 2009,
operated systems in Maryland, Michigan, Oregon, and Washington.
Broadstripe's Chief Restructuring Officer Reece Fulgham of El
Molino Advisors commented, "This transaction represents the
successful culmination of a restructuring process that resulted in
the best outcome for the company's stakeholders, employees, and
customers. DH Capital's assistance from start to finish in this
transaction has been invaluable."
Steve Weed, CEO of Wave Broadband, said, "With this acquisition,
Wave continues a tradition of expansion in strategic West Coast
markets. Wave's successful growth stems from our sincere
commitment to providing superior products and exceptional service
to our customers."
Steven Cochran, President and Chief Financial Officer of WOW!,
commented, "We are excited to welcome Broadstripe employees and
customers into the WOW! family. This acquisition is a terrific
investment that will further the growth of our business. We're
eager to begin the process of transitioning and integrating the
system to WOW!'s operating philosophy -- to deliver an employee
and customer experience that lives up to our name."
Joseph Duggan, Chairman and Co-Founder at DH Capital, LLC, stated,
"I have worked with the ownership and management of Broadstripe
for several years and, while sad to leave the cable business, they
are glad the communities will benefit from the transition to Wave
Broadband and WOW!. Their management teams have a tremendous
reputation in the cable sector and we expect they will meet with
great success."
DH Capital served as exclusive financial advisor to Broadstripe.
About DH Capital
Headquartered in New York City, DH Capital, LLC is a private
investment banking partnership serving companies in the
communications and Internet infrastructure sectors.
About Wave Broadband
Wave Broadband is a cable, internet and phone services company
currently serving over 300,000 customers in Washington, Oregon and
California. Owned and operated by local industry leaders, Wave
supports its customers with decades of cable know-how. Its
mission is to provide 100% of its cable systems with the latest
technologies and upgrades including high speed internet, digital
cable, home phone service, international programming, DVR, HDTV,
and Free TV On Demand services.
About WOW!
WOW! is a competitive provider of residential and commercial High-
Speed Internet, cable television and telephone services. WOW!
Cable features Basic Cable, Digital Cable, and advanced services
such as HDTV, VOD, and DVRs.
About Broadstripe LLC
Headquartered in Chesterfield, Missouri, Broadstripe LLC --
http://www.broadstripe.com/-- provides videos and telephone
services to consumers and business in Maryland, Michigan,
Washington and Oregon. The Company and five of its affiliates
filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-10006)
on Jan. 2, 2009. Attorneys at Ashby & Geddes, and Gardere Wynne
Sewell LLP represent the Debtors in their restructuring efforts.
The Debtors tapped FTI Consulting Inc. as their restructuring
consultant, and Epiq Bankruptcy Consultants LLC as their claims
agent. In its petition, Broadstripe estimated assets and debts
between $100 million and $500 million. An Official Committee of
Unsecured Creditors has been appointed in the case.
BUFFETS INC: Returns to Chapter 11 to Remove $245MM Debt
--------------------------------------------------------
Buffets, Inc., on Jan. 18, 2012, unveiled a restructuring
agreement that it has reached with 83% of its lenders, which will
recapitalize the Company while eliminating virtually all of the
Company's approximately $245 million of outstanding debt. The
recapitalization will provide the Company with resources to invest
in its proven reconcepting program, as well as its other
restaurant and profitability improvement initiatives.
In order to most effectively implement the restructuring, the
Company and all of its subsidiaries filed voluntary petitions for
reorganization under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Lead Case No. 12-10237). The Company expects to
promptly file a proposed plan of reorganization and related
disclosure statement, which have been pre-negotiated with, and
enjoy the full support of, 83% of the Company's lenders.
The Company anticipates completing the restructuring process and
exiting Chapter 11 within approximately six months.
"The important step we're taking today is the culmination of the
strategic alternatives review that our Board of Directors
initiated in May 2011," said Mike Andrews, CEO of Buffets.
"Today's announcement marks the beginning of a new era for Buffets
and our many dedicated employees, as well as for our loyal guests
and new customers who will enjoy our high quality food, friendly
hospitality and unbeatable value through a consistently improving
dining experience. With the full support of senior lenders
holding 83% of our senior debt, we will recapitalize our balance
sheet, eliminate a burdensome debt load and increase our cash
flow, which in turn will strengthen our ability to invest in the
improvement of our restaurants through our reconcepting program
and other growth-oriented initiatives. We will now be able to more
effectively leverage our strong brands and operational strengths,
as we make long-term investments in the future success of our core
restaurants."
16% of Restaurants to Close
The Company intends to use the restructuring process to strengthen
its balance sheet and eliminate outstanding debt. As part of this
process, the Company expects to promptly close 81 underperforming
restaurants, representing 16% of its nearly 500 restaurants
nationally.
Buffets, Inc., the nation's largest steak-buffet restaurant
company, currently operates 494 restaurants in 38 states,
comprised of 483 steak-buffet restaurants and 11 Tahoe Joe's
Famous Steakhouse(R) restaurants, and franchises 3 steak-buffet
restaurants in two states. The restaurants are principally
operated under the Old Country Buffet(R), HomeTown(R) Buffet,
Ryan's(R) and Fire Mountain(R) brands. Buffets employs 28,000 team
members and serves 140 million customers annually.
$50 Mil. DIP Financing
To fund their continuing operations during the restructuring, the
Debtors have secured a $50 million debtor-in-possession loan from
existing lender base, which in addition to cash on hand and
ongoing cash flow from operations, is expected to provide the
Company with ample liquidity to meet normal operating costs during
the restructuring process. Credit Suisse Group, which led the
lenders that financed Buffets' 2008 bankruptcy, spearheads the
present lending syndicate.
Return to Chapter 11
"Although the Debtors reduced a significant amount of their long
term debt under their prior Chapter 11 plan, the Debtors have
continued to be adversely affected by the sluggish U.S. economy,"
says Keith Wall, executive vice president and CFO.
Buffets had 626 restaurants when it began its prior bankruptcy
case (Bankr. D. Del. Case Nos. 08-10141 to 08-10158). It emerged
from bankruptcy in April 2009.
Higher gasoline and energy costs, along with a decline in guest
count, have hampered the Debtors' ability to service their long-
term debt and caused a liquidity strain, forcing the Company to
return to Chapter 11 bankruptcy.
In the new Chapter 11 case, Buffets Inc.'s legal advisors are
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Young, Conaway,
Stargatt & Taylor, LLP. The Company's financial advisor is
Moelis, Inc. Epiq Bankruptcy Solutions LLC is the claims and
notice agent.
BUFFETS INC: Case Summary & 40 Largest Unsecured Creditors
----------------------------------------------------------
Lead Debtor: Buffets Restaurants Holdings, Inc.
1020 Discovery Road, Suite 100
Eagan, Minnesota 55121
Bankruptcy Case No.: 12-10237
Debtor-affiliates that filed separate Chapter 11 petitions:
Debtor Case No.
------ --------
Buffets Holdings, Inc. 12-10238
Buffets, Inc. 12-10239
Hometown Buffet, Inc. 12-10240
OCB Purchasing Co. 12-10241
OCB Restaurant Company, LLC 12-10242
Buffets Franchise Holdings, LLC 12-10243
Buffets Leasing Company, LLC 12-10244
Ryan's Restaurant Group, Inc. 12-10245
Ryan's Restaurant Leasing Company, LLC 12-10246
Hometown Leasing Company, LLC 12-10247
OCB Leasing Company, LLC 12-10248
Fire Mountain Restaurants, LLC 12-10249
Fire Mountain Leasing Company, LLC 12-10250
Tahoe Joe's, Inc. 12-10251
Tahoe Joe's Leasing Company, LLC 12-10252
Type of Business: Buffets Holdings Inc., through operating
company subsidiaries, owned and operated
the largest chain of family buffet
restaurants in the United States. The
restaurants included HomeTown Buffet,
Old Country Buffet, Roadhouse Grille,
and Tahoe Joe's.
Website: http://www.buffet.com/
Chapter 11 Petition Date: Jan. 18, 2012
Court: U.S. Bankruptcy Court
District of Delaware
Debtors'
Counsel : Jeffrey D. Saferstein, Esq.
Phil Weintraub, Esq.
Evan Zisholtz, Esq.
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
1285 Avenue of the Americas
New York, New York 10019-6064
Tel: (212) 373-3000
Fax: (212) 759-3990
E-mail: jsaferstein@paulweiss.com
pweintraub@paulweiss.com
ezisholtz@paulweiss.com
Debtors'
Co-Counsel: Pauline K. Morgan, Esq.
Sean T. Greecher, Esq.
Ryan Bartley, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
The Brandywine Building
1000 West Street, 17th Floor
Wilmington, DE 19801
Tel: (302) 571-6600
Fax: (302) 576-3318
E-mail: pmorgan@ycst.com
sgreecher@ycst.com
rbartley@ycst.com
Debtors'
Investment
Banker : MOELIS & COMPANY LLC
Debtors'
Tax
Advisor : PRICEWATERHOUSECOOPERS LLC
Debtors'
Real
Estate
Consultant: HUNTLEY, MULLANEY, SPARGO & SULLIVAN INC.
Debtors'
Auditor : DELOITTE & TOUCHE LLP
Debtors'
Claims and
Noticing
Agent : EPIQ BANKRUPTCY SOLUTIONS, LLC
Estimated Assets: $100 million to $500 million
Estimated Debts: $100 million to $500 million
The petition was signed by A. Keith Wall, chief financial officer.
Buffets Restaurants Holdings, Inc.'s List of Its 40 Largest
Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
McDonald Wholesale Co Trade Debt $1,239,349
P.O. Box 2340
Eugene, OR 97402
Salandino's Inc. Trade Debt $879,948
P.O. Box 12266
Fresno, CA 93777-2266
WB Doner and Company Trade Debt $855,017
P.O. Box 67-28701
Detroit, MI 48267-0287
Van Eerden Distribution Co Trade Debt $828,141
P.O. Box 3110
Grand Rapids, MI
49501-3110
Institute Food House Inc. Trade Debt $782,359
P.O. Box 741580
Atlanta, GA
30384-1580
Birite Trade Debt $775,912
123 S. Hill Drive
Brisbane, CA 94005
Merchants Foodservice Trade Debt $729,859
P.O. Box 1351
Hattiesburg, MS 39403
Sysco Food Service Trade Debt $715,678
P.O. Box 729
Modesto, CA 95353-0729
Pocono Produce Co Inc Trade Debt $645,796
P.O. Box 669
Stroudsburg, PA 18360
Sunrise Produce Trade Debt $588,617
P.O. Box 227280
Commerce, CA 90022
American Foodservice Trade Debt $504,363
290 Southeast
Thompson Drive
Lee Summit, MO 64082
Piazza Produce Trade Debt $380,331
P.O. Box 68931
Indianapolis, IN
46268-0931
Daylight Foods Inc Trade Debt $378,079
660 Vista Way
Milpitas, CA 95035
Glazier Foods Company Trade Debt $370,061
P.O. Box 201705
Houston, TX
77216-1705
Southern Foods Inc Trade Debt $274,504
P.O. Box 1657
Bowling Green, KY
42102-1657
Upper Lakes Foods Inc. Trade Debt $259,113
801 Industry Ave.
Cloquet, MN 55720
Shamrock Foods Co Trade Debt $246,128
Oracle America Inc. Trade Debt $244,575
Edward Don Company Trade Debt $209,396
Icee Company Trade Debt $193,671
Royal Cup Inc Trade Debt $184,102
Heritage Service Group Trade Debt $163,158
Bix Produce CO Trade Debt $148,443
Duck Delivery Produce Inc Trade Debt $143,660
Ecolab Trade Debt $138,493
Crunchtime! Information Trade Debt $135,957
Systems Inc
Phoenix Wholesale Food Trade Debt $135,850
Service
Tracy Locke Trade Debt $134,791
Fresh Point Turlock Trade Debt $127,677
Simplexgrinn Ell LP Trade Debt $110,074
Yanceys Food Service Trade Debt $96,011
Realty Income Corporation Trade Debt $90,620
Sirna & Sons Mainline Trade Debt $89,516
Produce
McCartney Produce Trade Debt $81,692
J Ambrogi Food Distribution Trade Debt $75,340
Cintas Corp Trade Debt $72,912
Sysco Corporation - St Louis Trade Debt $70,523
Keany Produce Co Trade Debt $65,713
Hartford Specialty Trade Debt $63,521
Nexus Information Systems Trade Debt $61,131
CAPISTRANO TERRACE: Residents Near Reaching Settlement Deal
-----------------------------------------------------------
Penny Areval at SanJuanCapistranoPatch reports that the residents
of Capistrano Terrace Mobile Home Park on Valle Road have met to
discuss a settlement offer made by the owners, Capistrano Terrace
Ltd.
According to the report, bankruptcy attorney James Hinds, who is
representing Capistrano Terrace's creditors, said the residents
have decided to make a counteroffer.
The report notes that Judge Mark S. Wallace ordered the parties
into mediation in August, and the two sides have been talking ever
since. Before all the legal entanglements began, Capistrano
Terrace owners made an offer to sell the property to the
homeowners for $11 million, but that was shelved after residents
filed the fail-to-maintain lawsuits in 2007. The figures being
discussed now are way below that price, Hinds said.
The owners are "going to get a decent interest rate. The
residents are willing to borrow money from the devil if the terms
are good," the report quotes Judge Hinds as saying. The residents
supported the counteroffer's terms with a vote of 95 percent.
Lake Forest, California-based Capistrano Terrace Ltd. filed a
Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-19767) on
July 12, 2011. D. Edward Hays, Esq., at Marshack Hays LLP, in
Irvine, California, serves as counsel to the Debtor. The Debtor
estimated assets of $1 million to $10 million and debts of up to
$50 million.
CATALYST PAPER: Secures Deal to Cut Debt, May File for CCAA
-----------------------------------------------------------
Catalyst Paper Corp. secured the agreement of a group of
bondholders to restructure its balance sheet in a way that would
reduce its debt load and interest payments, allowing for the
company to navigate the turbulent paper and pulp industry.
Catalyst Paper's management team and Board of Directors believe
that the proposed recapitalization offers substantial benefits to
Catalyst Paper, including:
* enhanced flexibility to respond to the downturn in the
market for paper, newsprint and pulp;
* improved capital structure: $315.4 million reduction in
debt; and
* reduced cash interest expense: up to $25.5 million reduction
in annual cash interest expense ($37.0 million if paid in
kind to the maximum extent possible).
Catalyst Paper's management team and Board of Directors believe
that, in view of the challenges and risks to the Company's ongoing
viability created by the current paper, newsprint and pulp markets
and the Company's existing capital structure, the recapitalization
is the best alternative available to the company and its
noteholders, shareholders and other stakeholders. The new capital
structure will provide a stronger financial base for the execution
of the Company's operating strategy and enhance the long-term
value of the Company.
"This transaction addresses the company's capital structure and
interest payment obligations, extending its operating horizon,"
said Dallas Ross, director and chair of the Board's independent
committee overseeing the noteholder negotiation. "Based on
extensive management analysis and independent review of options
related to preservation of enterprise value, the Board of
Directors is unanimous in its recommendation that all shareholders
and noteholders support this transaction."
The proposed recapitalization has the support of the Company's
creditors who have been subject to confidentiality agreements.
More specifically (a) holders of its 11% senior secured notes due
2016 holding approximately US$208.1 million aggregate principal
amount of outstanding Senior Secured Notes and (b) holders of its
7 3/8% senior notes due 2014 holding approximately US$54.5 million
aggregate principal amount of outstanding Senior Notes, have
signed the Agreement and agreed to vote in favour of and support
the recapitalization. The Company expects further support of the
recapitalization from additional holders of Senior Secured Notes
and Senior Notes.
The Company intends to implement the recapitalization through a
plan of arrangement under the Canada Business Corporations Act.
Implementation of the plan of arrangement under the CBCA will be
subject to approval by not less than 66 2/3% of the votes cast by
holders of each of the Senior Secured Notes and the Senior Notes
at meetings to be held to consider the arrangement, the approval
of the Supreme Court of British Columbia and receipt of all
necessary regulatory and stock exchange approvals. In addition,
the Agreement is subject to termination if a new labour agreement
with all union locals at the Company's Canadian mills has not been
ratified by Jan. 31, 2012.
The Company will continue to operate and satisfy its obligations
to trade creditors, customers and employees in the ordinary course
of business during the arrangement process.
Terms of the Recapitalization
Catalyst Paper's US$390.4 million aggregate principal amount of
outstanding Senior Secured Notes will be exchanged for:
* US$325 million aggregate principal amount of new 11% first
lien notes the terms of which are described below; and
* 80% of the Company's common shares.
Catalyst Paper's US$250 million aggregate principal amount of
Senior Notes will be exchanged for:
* 15% of the Company's common shares;
* warrants which will be exercisable to acquire up to 15% of the
fully diluted common shares of the Company as of the effective
date of the recapitalization at an exercise price aggregate
equity value of $111.7 million, for up to four years from the
effective date of the recapitalization; and
* an additional 4.5% of the Company's common shares, provided
that only holders of Senior Notes that agree to support this
recapitalization by the early consent date, which is currently
fixed at Jan. 27, 2012, will be entitled to receive such
additional common shares.
In total, additional common shares will be issued such that
99.5% of the common shares are held by the current holders of the
existing Senior Secured Notes and Senior Notes. The remaining
0.5% of the company's common shares will be held by holders of the
existing common shares, provided that the recapitalization is
implemented under the CBCA.
Upon the implementation of the recapitalization, a new Board of
Directors will be appointed as part of the transaction.
The New Notes will have substantially the same terms and
conditions as the Company's existing Senior Secured Notes with
certain exceptions including:
-- the maturity date of the New Notes will be the earlier of (i)
six months after the end date of the new labour agreements
and (ii) Dec. 16, 2017, provided that the maturity date will
never be earlier than Dec. 16, 2016.
-- interest on the New Notes will be payable semi-annually in
cash at an annual interest rate of 11% or, at the option of
Company, interest may be partially paid in kind, but if that
option is taken for any semi-annual interest payment,
interest for that payment will be calculated at an annual
rate of 13% with 7.5% being paid in cash and 5.5% being paid
in kind through the issuance of additional New Notes;
-- the Company will be able to issue up to an additional US$75
million in principal amount of New Notes, subject to the
consent of holders of 75% in principal amount of New Notes if
the Company's secured debt to EBITDA ratio, pro forma for the
issuance of the additional New Notes, exceeds 3.0x; and
-- the company will be able to repurchase the New Notes for 103%
of their principal amount until Dec. 15, 2013, and 100%
thereafter.
The holders of the Senior Secured Notes and the Senior Notes who
have signed the Agreement have agreed not to take any action to
enforce their rights under the Senior Secured Notes and the Senior
Notes, including by accelerating the notes as a result of the
Company's current non-payment of interest on the Senior Secured
Notes. The Agreement is subject to termination in certain
circumstances, including: (i) by the holders of the Senior Secured
Notes and Senior Notes in the event that the Company does not pay
the overdue interest on the Senior Secured Notes on or before
Jan. 31, 2012; (ii) by the Company if by Jan. 31, 2012, holders of
at least 66 2/3% of the outstanding principal amount of the Senior
Secured Notes and Senior Notes have not signed the Agreement or a
joinder to the Agreement; and (iii) by the company if by Jan. 31,
2012, a new labour agreement with all union locals at the
Company's Canadian mills has not been ratified. The current labour
contracts expire April 30, 2012.
Details of the recapitalization will be provided in an information
circular expected to be distributed to shareholders and holders of
the Senior Secured Notes and Senior Notes in February, 2012. The
recapitalization is expected to close by March 31, 2012.
A full-text copy of the Restructuring and Support Agreement is
available for free at http://is.gd/GoS5xs
CCAA Filing and U.S. Bankruptcy Filing
The recapitalization under the CBCA will require approval by the
holders of the Senior Secured Notes, the holders of the Senior
Notes and such other securityholders of Catalyst Paper as the
court and the TSX may require.
In the event that the votes or approvals required to complete the
recapitalization under the CBCA are not obtained, the Company has
agreed to implement the recapitalization pursuant to the
Companies' Creditors Arrangement Act. The Company will also
commence proceedings under the U.S. Bankruptcy Code.
The Agreement provides that in such case the shareholders of the
company would not receive anything in exchange for their common
shares.
The Company's Board of Directors, supported by a recommendation of
an independent committee of the Board, is unanimously recommending
that all shareholders and noteholders support the
recapitalization.
Advisors
Blake, Cassels & Graydon LLP and Skadden, Arps, Slate, Meagher &
Flom LLP are acting as the Company's legal counsel and Perella
Weinberg Partners is acting as the company's financial advisor
with respect to the recapitalization. Akin Gump Strauss Hauer &
Feld LLP and Fraser Milner Casgrain LLP are acting as counsel to
certain of the holders of Senior Secured Notes and Moelis &
Company is acting as financial advisor to such noteholders with
respect to the recapitalization. Goodmans LLP and Kramer Levin
LLP are acting as counsel to certain of the holders of Senior
Notes and Houlihan Lokey Capital, Inc. is acting as financial
advisor to such noteholders with respect to the recapitalization.
About Catalyst Paper
Catalyst Paper -- http://www.catalystpaper.com/-- manufactures
diverse specialty mechanical printing papers, newsprint and pulp.
Its customers include retailers, publishers and commercial
printers in North America, Latin America, the Pacific Rim and
Europe. With four mills, located in British Columbia and Arizona,
Catalyst has a combined annual production capacity of 1.9 million
tons. The Company is headquartered in Richmond, British Columbia,
Canada and its common shares trade on the Toronto Stock Exchange
under the symbol CTL.
The Company also reported a net loss of C$266.30 million on
C$941.70 million of sales for the nine months ended Sept. 30,
2011, compared with a net loss of C$407.20 million on C$895
million of sales for the same period during the prior year.
The Company's balance sheet at Sept. 30, 2011, showed
C$1.45 billion in total assets, C$1.31 billion in total
liabilities, and C$135.60 million in shareholders' equity.
* * *
Catalyst Paper carries Moody's Investors Service's 'Caa3'
corporate family rating with the outlook "negative."
The Caa3 CFR reflects Moody's view that Catalyst's capital
structure is unsustainable and that material losses are likely in
a restructuring scenario. The rating considers the company's
significant debt load, its weak financial performance and the
expectation that the company will continue to face challenging
industry conditions for some of its paper products. Two of the
company's primary products, newsprint and directory paper,
continue to face secular demand declines. The rating is supported
by the company's position as one of the leading producers of
telephone directory paper in the world and specialty papers and
newsprint in Western North America.
Standard & Poor's gave the company an 'SD' (selective default) in
December following the deferred payment.
CENTURION PROPERTIES: Wants to Use Cash Collateral Until March 31
-----------------------------------------------------------------
Centurion Properties III, LLC, asks, in its sixth motion, the U.S.
Bankruptcy Court for the Eastern District of Washington for
authorization to use cash collateral until March 31, 2012.
The Debtor relates that as of Dec. 9, 2011, it holds $3,857,652 in
its debtor-in-possession account(s). The money is derived from
ongoing operations and management of the Debtor's property
postpetition.
The Debtor received an appraisal and appraisal review indicating
that the fair market value of the Debtor's property interest is
$87,886,000.
The Debtor will use the rents to administer the estate, meet
contractual obligations, and meet payments of creditors associated
with post-confirmation operations.
The Debtor relates that under the General Electric Capital
Corporation Mediated Settlement, all material terms of existing
cash collateral agreements between GECC and CPIII will remain
throughout the term of the mediated settlement.
As adequate protection from diminution in value of the lender's
collateral, the Debtor will make adequate protection payments to
GECC of $330,000 per month.
About Centurion Properties
Kennewick, Washington-based Centurion Properties III, LLC, was
established in 2006 for the sole purpose of acquiring real estate
project Battelle Leaseholds located in Richland, Washington. Its
sole asset is its leasehold interests in the Battelle Memorial
Institute Campus and improvements, valued in excess of
$90 million.
CPIII filed for Chapter 11 bankruptcy protection (Bankr. E.D.
Wash. Case No. 10-04024) on July 9, 2010. John D. Munding, Esq.,
at Crumb & Munding, assists the Company in its restructuring
effort. The United States Trustee was unable to appoint a
creditors committee in the case. The Company disclosed
$98,907,255 in assets and $115,334,775 in liabilities as of the
Chapter 11 filing.
On Dec. 15, 2011, the Court confirmed its Second Amended Plan
which is is premised on (i) the Reorganized Debtor's ability to
obtain replacement financing for General Electric Capital Corp.'s
Allowed Secured Claim, and (ii) funding through "new equity
contributions" and continued use of GECC's cash collateral with
GECC's prior consent.
CHRISTIAN BROTHERS: Exclusivity Extensions Hearing Set for Jan. 23
------------------------------------------------------------------
The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York, in a bridge order, extended until
Jan. 24, 2012, The Christian Brothers' Institute, et al.'s
exclusive periods.
The Court will hold the adjourned hearing on the motion on
Jan. 23, at 10:00 a.m.
As reported in the Troubled Company Reporter on Nov. 29, 2011, the
Debtors is requesting that the Court extend their exclusive
periods to file and solicit acceptances for a proposed Chapter 11
plan until June 21, 2012, and Aug. 20, 2012, respectively.
The Debtors related that they need to determine the aggregate
amount of the claims or the amount that may be necessary to fund a
plan in these cases. In this relation, the Debtors, in
consultation with the Official Committee of Unsecured Creditors,
will afford potential abuse victims at least until June 1, 2012,
to file proofs of claim.
About The Christian Brothers' Institute
The Christian Brothers' Institute and The Christian Brothers of
Ireland filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case Nos. 11-22820 and 11-22821) on April 28, 2011.
Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, serves
as the Debtors' bankruptcy counsel. The Christian Brothers'
Institute disclosed assets of $63,418,267 and $8,484,853 in
liabilities. CBOI estimated its assets at $500,000 to $1 million
and debts at $1 million to $10 million.
COACH AMERICA: Asks Court to Approve April 18 Auction
-----------------------------------------------------
Dow Jones' DBR Small Cap reports that Coach USA's parent company
has asked for a bankruptcy judge's permission to sell off its bus
transportation business at an April 18 auction while its
executives continue their search for someone to put in the first
offer.
About Coach America
Coach America -- http://www.coachamerica.com/-- is the largest
tour and charter bus operator and the second largest motorcoach
service provider in the U.S. Coach America operates the second
largest fleet in the U.S. with over 3,000 vehicles, including over
1,600 motorcoaches, primarily under the Coach America, American
Coach Lines and Gray Line brands. Coach America employs
6,000 people.
Coach America Holdings Inc. and its U.S.-based subsidiaries filed
to reorganize under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
D. Del. Lead Case No. 12-10010) on Jan. 3, 2011. Judge Kevin
Gross presides over the case. Coach America's investment banker
is Rothschild Inc., legal counsel are Lowenstein Sandler PC and
Polsinelli Shughart, and its financial advisor is Alvarez & Marsal
North America LLC. BMC Group Inc. serves as the Debtors' notice,
claims and balloting agent.
Coach America disclosed $274 million in assets and $402 million in
liabilities as of Nov. 30, 2011. Liabilities include $318.7
million owing on first-lien debt with JPMorgan Chase Bank NA as
agent. Second-lien debt, with Bank of New York Mellon Corp. as
agent, is $30.5 million.
In connection with the filing, Coach America has obtained a
commitment for $30 million of debtor-in-possession financing from
a steering committee of its existing senior lenders. The loan was
arranged by JPMorgan Securities LLC. JPMorgan Chase Bank N.A. is
the DIP agent.
Attorneys for JPMorgan, as Prepetition First Lien Agent and DIP
Agent, are Brian M. Resnick, Esq., at Davis Polk & Wardwell LLP;
and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A.
COLONIAL BANCGROUP: BofA Owes $900MM for Mortgages, Says FDIC
-------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that the Federal
Deposit Insurance Corp. said Bank of America Corp. owes the failed
Colonial Bank $900 million for losses suffered when Colonial
collapsed in the wreckage of Taylor Bean & Whitaker Mortgage
Corp.'s multibillion-dollar bank fraud.
About The Colonial BancGroup
Headquartered in Montgomery, Alabama, The Colonial BancGroup,
Inc., (NYSE: CNB) owned Colonial Bank, N.A, its banking
subsidiary. Colonial Bank -- http://www.colonialbank.com/--
operated 354 branches in Florida, Alabama, Georgia, Nevada and
Texas with over $26 billion in assets. On Aug. 14, 2009, Colonial
Bank was seized by regulators and the Federal Deposit Insurance
Corporation was named receiver. The FDIC sold most of the assets
to Branch Banking and Trust, Winston-Salem, North Carolina. BB&T
acquired $22 billion in assets and assumed $20 billion in deposits
of the Bank.
The Colonial BancGroup filed for Chapter 11 bankruptcy protection
(Bankr. M.D. Ala. Case No. 09-32303) on Aug. 25, 2009. W. Clark
Watson, Esq., at Balch & Bingham LLP, and Rufus T. Dorsey IV,
Esq., at Parker Hudson Rainer & Dobbs LLP, serve as counsel to the
Debtor. The Debtor disclosed $45 million in total assets and $380
million in total liabilities as of the Petition Date.
In September 2009, an Official Committee of Unsecured Creditors
was formed consisting of three members, Fine Geddie & Associates,
The Bank of New York Trust Company, N.A., and U.S. Bank National
Association. Burr & Forman LLP and Schulte Roth & Zabel LLP serve
as co-counsel for the Committee.
Colonial Brokerage, a wholly owned subsidiary of Colonial
BancGroup, filed for Chapter 7 protection with the U.S. Bankruptcy
Court in the Middle District of Alabama in June 2010. Susan S.
DePaola serves as Chapter 7 trustee.
In June 2011, the Bankruptcy Court confirmed Colonial BancGroup's
revised Chapter 11 liquidation plan over the FDIC's objection.
Kevin O'Halloran was appointed as Plan trustee. He has tapped
Quinn Emanuel Urquhart & Sullivan LLP to serve special litigation
and conflicts counsel.
COMSTOCK MINING: To Issue 6 Million Shares Under Incentive Plan
---------------------------------------------------------------
Comstock Mining Inc. filed with the U.S. Securities and Exchange
Commission a Form S-8 registration statement registering 6 million
shares of common stock issuable under the Company's 2011 Equity
Incentive Plan. The proposed maximum offering price is
$11.2 million. A full-text copy of the prospectus is available
for free at http://is.gd/2O0wwZ
About Comstock Mining
Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based,
gold and silver mining company with extensive, contiguous property
in the historic Comstock district. The Company began acquiring
properties in the Comstock in 2003. Since then, the Company has
consolidated a substantial portion of the Comstock district,
secured permits, built an infrastructure and brought the
exploration project into test mining production. The Company
continues acquiring additional properties in the Comstock
district, expanding its footprint and creating opportunities for
exploration and mining. The goal of the Company's strategic plan
is to deliver stockholder value by validating qualified resources
(measured and indicated) and reserves (probable and proven) of
3,250,000 gold equivalent ounces by 2013, and commencing
commercial mining and processing operations by 2011, with annual
production rates of 20,000 gold equivalent ounces.
The Company reported a net loss of $60.32 million for the year
ended Dec. 31, 2010, compared with a net loss of $6.06 million
during the prior year. The Company had no revenues from
operations for the years ended Dec. 31, 2010 and 2009.
The Company reported a net loss of $9.10 million on $299,246
of hotel revenue for the nine months ended Sept. 30, 2011,
compared with a net loss of $26.63 million on $0 of revenue for
the same period during the prior year.
The Company's balance sheet at Sept. 30, 2011, showed $26.57
million in total assets, $10.01 million in total liabilities and
$16.55 million in total stockholders' equity.
COSTA DORADA: Plan Outline Hearing Rescheduled to Jan. 31
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico has
rescheduled a hearing set for Jan. 24, 2012, to Jan. 31, 2012, at
2:00 p.m., to consider adequacy of the Disclosure Statement
explaining Costa Dorada Apartments Corp.'s proposed Plan of
Reorganization dated as of Nov. 15, 2011.
The Debtor will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the Plan provides that,
among other things:
-- secured creditor Scotiabank de PR's claims will be paid in
full;
-- the Debtor will continue to make regular payments to secured
creditor Banco Popular de PR;
-- on the Consummation date, each general unsecured creditor
will receive from the Debtor a nonnegotiable, interest bearing
promissory note, dated as of the Effective Date, providing for
a payment of 100% of their allowed claims plus yearly interest
computed at 3.25%. Each Class 4 note will be payable in a
single payment which will be due the later of 36 months from
the effective date of the plan or 12 months after full payment
of all amounts due to Scotiabank;
-- the class of disputed and contested claims will not receive
any cash dividend throughout the Plan;
-- unsecured insiders claims will be paid in cash and in full
but only after all allowed claims under Class 1, 2, 4 and
allowed priority claims are paid in full; and
-- equity security interest holders may receive a residual
dividend throughout the plan consisting of all excess value in
property after payment of all allowed claims.
The Debtor states that upon confirmation of the plan, it will have
sufficient funds to make all payments then due under the Plan.
The funds will be obtained from the sale of 15 apartments in the
project and the rent of other apartments as part of the hotel
facilities.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/COSTA_DORADA_ds.pdf
About Costa Dorada Apartments
Costa Dorada Apartments Corp., dba Villas De Costa Dorada, in
Isabela, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D.
P.R. Case No. 11-03960) on May 10, 2011. The Debtor disclosed
$10.7 million in assets and $8.6 million in liabilities as of the
Chapter 11 filing. The petition was signed by Carlos R. Fernandez
Rodriguez, its president. Wigberto Lugo Mender, Esq., at Lugo
Mender & Co., in Guaynabo, Puerto Rico, represents the Debtor as
counsel.
CREDITRON FINANCIAL: Y&Y Holdings Acquires Telatron
---------------------------------------------------
Ed Palattella at Erie Times-News reports that Telatron Marketing
Group Inc. is now known as Agility Marketing Group, and has a one-
year lease for 1545 W. 38th St., where Telatron, a telemarketing
business, operated since its founding in 1985.
The report relates that the new owner is Y&Y Holdings LLC. It was
assigned the rights to purchase Creditron and Telatron by Y&B
Holdings LLC, of New York City's Brooklyn borough. Y&Y closed on
the $600,000 purchase on Jan. 3, 2012. The managing partner of
Y&Y Holdings is David Greenblatt.
According to the report, Agility's Web site identified Joyce
Covatto as Agility's president and chief executive. The other
three people listed on the Web site as Agility's executives also
held top positions with Telatron.
The report relates that the trustee, Erie lawyer John Melaragno,
took over control of the company from Joyce and Alfred Covatto,
who could still work at Telatron but not in supervisory roles.
With the sale of Creditron, Melaragno no longer is in charge of
Telatron, though he is still overseeing the bankruptcy case.
Melaragno said about 130 people now work at Telatron.
Based in Erie, Pennsylvania, Creditron Financial Corporation dba
Telatron Marketing Group Inc. filed for Chapter 11 bankruptcy
protection (Bankr. W.D. Penn. Case No. 08-11289) on July 3, 2008.
Stephen H. Hutzelman, Esq., Plate Shapira Hutzelman Berlin May, et
al., represents the Debtor. The Debtor disclosed $3 million in
total assets, and $4.8 million in total liabilities in its
bankruptcy petition.
CROATAN SURF: Court Rejects Royal Bank's Stay Relief Motion
-----------------------------------------------------------
Bankruptcy Judge Stephani W. Humrickhouse denied the request of
Royal Bank America for relief from the automatic stay pursuant to
11 U.S.C. Sec. 362(d) in the Chapter 11 case of Croatan Surf Club
LLC.
RBA financed the construction of Croatan Surf Club's 36-unit
condominium complex in Kill Devil Hills, North Carolina, through a
Dec. 20, 2007 loan.
The debtor filed a Chapter 11 petition on Jan. 10, 2011. It filed
its original bankruptcy-exit plan on Jan. 14, 2011, and then filed
an amended chapter 11 plan on January 19, 2011.
RBA filed a proof of claim on Feb. 16, 2011, for $19,059,327.
The debtor filed a Second Amended Plan on Feb. 18, 2011. That
same day, RBA sought relief from the stay pursuant to Sections
362(d)(1), (2), and (3), in which it asserted, inter alia, that a
plan could not be confirmed within a reasonable amount of time in
light of RBA's intent to ballot its claim and the claim of the
Edwards Family Partnership, a creditor whose claim RBA contended
it was entitled to vote pursuant to a subordination agreement,
against confirmation, thus depriving the debtor of an accepting
impaired class.
RBA's motion was originally addressed in a status conference on
March 10, 2011, and then first set for hearing on May 16, 2011.
Since that time, the hearing on the stay motion has been continued
multiple times with RBA's consent.
On Oct. 25, 2011, the Court entered an order determining that RBA
was not entitled to vote EFP's claim. The debtor filed a Third
Amended Plan and an amendment to its disclosure statement three
days later, on Oct. 28, 2011. The amended plan essentially only
modified the debtor's proposed treatment of RBA by correcting the
claim amount and providing that the lender would retain its
existing liens and priority until its secured claim was paid in
full.
On Nov. 3, 2011, the hearing on the disclosure statement and stay
motion set for Nov. 14, 2011 was cancelled, and both subsequently
were rescheduled for Dec. 12, 2011.
Soon after the filing of the Third Amended Plan and amendment to
the disclosure statement, RBA notified the Court and the debtor
that it would no longer consent to the continuation of the stay
and that it intended to proceed with the hearing on its stay
motion on the Dec. 12, 2011 hearing date. It filed a supplemental
brief on Dec. 9, 2011, asserting that the lack of a "still-
existing" plan filed within the 90-day period provided an
additional ground for termination of the stay under Sec.
362(d)(3). RBA argued that the Second Amended Plan, which was
filed within the 90-day period, was the only plan the Court could
consider for purposes of determining the debtor's compliance with
the statute, such that the consequence of the debtor filing an
amended plan meant that the debtor no longer had a timely-filed
plan with a reasonable possibility of being confirmed.
Accordingly, to RBA, this meant that the debtor was not in
compliance with Sec. 362(d)(3) and relief from the stay was
mandatory. After the hearing, the Court indicated in an email to
all parties that the motion for relief from stay would, to the
extent that it relied on Sec. 362(d)(3), be denied. The debtor
subsequently filed its Fourth Amended Plan, accompanied by a Third
Disclosure Statement, on Dec. 23, 2011.
In her Jan. 12, 2012 Order available at http://is.gd/bz3tNafrom
Leagle.com, Judge Humrickhouse held that, "In the court's view,
while there may be some disagreement as to the extent to which
Sec. 362(d)(3) circumscribes the actions of a SARE debtor in the
later stages of a chapter 11 case, this particular matter poses no
opportunity to explore them. The debtor filed a plan that fell
well within the parameters of having a reasonable possibility of
being confirmed within a reasonable time, and there is therefore
no basis for the court to grant relief from the stay either
through termination, conditioning, or any other modification."
About Croatan Surf Club
Kill Devil Hills, North Carolina-based Croatan Surf Club LLC owns
residential condominium units at a development in Dare County,
North Carolina known as Croatan Surf. It filed for Chapter 11
bankruptcy protection (Bankr. E.D.N.C. Case No. 11-00194) Jan. 10,
2011. Walter L. Hinson, Esq., at Hinson & Rhyne, P.A., in Wilson,
N.C., serve as counsel to the Debtor. Kevin J. Silverang, Esq.,
and Philip S. Rosenzweig, Esq., at Silverang & Donohoe, LLC, in
St. Davids, Pa., serve as co-counsel to the Debtor. No creditors
committee has been formed in the case. In its schedules, the
Debtor disclosed $26,151,718 in assets and $19,350,000 in
liabilities.
CROATAN SURF: Court Approves Robert Oakes as Broker
---------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina authorized Croatan Surf Club, LLC, to employ Robert A.
Oakes, Jr., of Village Realty & Management Services, Inc., as its
real estate broker to sell the Debtor's 25 residential units. Mr.
Oakes will be paid a sum not to exceed the 5.5% of the gross sales
price.
About Croatan Surf
Kill Devil Hills, North Carolina-based Croatan Surf Club, LLC,
is the owner of 35 residential condominium units at a development
in Dare County, North Carolina known as Croatan Surf. It filed
for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 11-
00194) on Jan. 10, 2011. Walter L. Hinson, Esq., at Hinson &
Rhyne, P.A., in Wilson, N.C., serve as counsel to the Debtor.
Kevin J. Silverang, Esq., and Philip S. Rosenzweig, Esq., at
Silverang & Donohoe, LLC, in St. Davids, Pa., serve as co-counsel
to the Debtor. No creditors committee has been formed in the
case. In its schedules, the Debtor disclosed $26,151,718 in
assets and $19,350,000 in liabilities.
DALLAS LOGISTICS: Successfully Exits Chapter 11
-----------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas,
Dallas Division, confirmed the Reorganization Plan for DLH Master
Land Holding, LLC, which became effective on Dec. 15, 2011,
allowing DLH Master Land Holding, LLC to exit bankruptcy and move
forward with the development.
DLH, the owner and developer of the Dallas Logistics Hub, emerged
from the case with 4,300 acres of land. During the proceedings
and as a part of the Plan, DLH returned approximately 1,380 acres
of land to creditors. Under the Plan, DLH will aggressively
market the development to reach its goal of providing South Dallas
with a premier multi-modal logistics hub along with thousands of
jobs for the people in the surrounding areas.
"The reorganization of DLH puts the company in a position to be
extremely competitive and have the resources to attract Fortune
500 companies to our development," said Dan McAuliffe, president
of DLH Master Land Holding, LLC. "It also enables the company to
repay its creditors 100 percent of the debt over the next 7-8
years while having the necessary capital to operate. It has been
a tough couple of years and we are grateful to those parties who
have stuck with us through these difficult times."
About Allen Capital
Allen Capital Partners LLC and subsidiary DLH Master Land Holding
LLC, are the developers of Dallas Logistics Hub, a 6,000-acre
multimodal logistics park 12 miles (19 kilometers) from downtown
Dallas.
Allen Capital Partners, LLC, dba The Allen Group, filed for
Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No.
10-30562) on Jan. 25, 2010. Mark MacDonald, Esq., at MacDonald +
MacDonald, P.C., represents the Debtor. Lain, Faulkner & Co. is
the Debtor's financial advisor. Allen disclosed $220,325,201 in
assets and $160,622,236 in liabilities as of the Chapter 11
filing.
The Debtor's affiliate -- DLH Master Land Holding, LLC, dba The
Allen Group -- filed a separate Chapter 11 bankruptcy petition.
Another affiliate, Visalia, California-based Richard S. Allen,
Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D.
Texas Case No. 10-33211) on May 3, 2010. Patrick J. Neligan, Jr.,
Esq., at Neligan Foley LLP, represents the Debtor. The Company
disclosed $76,158,469 in assets and $53,728,982 in liabilities as
of the petition date.
An Official Committee of Unsecured Creditors has been appointed.
Secured creditor BBVA Compass is represented by Kenneth Stohner,
Jr., Esq. -- kstohner@jw.com -- at Jackson Walker L.L.P.
So-called Pool 2 and Pool 4 secured creditors are represented by
Robert Yaquinto, Jr., Esq., at Sherman & Yaquinto, L.L.P.
There are two separate Chapter 11 plans filed in the Debtors'
Chapter 11 cases -- one filed by RSAI and Richard Allen, and
another filed by DLH and Allen Capital Partners.
Debtors Richard Allen and RSAI filed their original Joint Plan of
Reorganization on Aug. 18, 2010. However, after filing the
original Plan, due to delays and disputes related to the DLH and
ACP Plan, Allen and RSAI determined it was most efficient to wait
until the ACP and DLH Plan was confirmed before proceeding to
confirmation of the Allen and RSAI Plan.
An Amended Fifth Joint Plan of Reorganization was filed for Allen
Capital Partners and DLH Master Land Holding, but in an order
dated Oct. 12, 2011, Bankruptcy Judge Harlin D. Hale confirmed the
Plan only as to ACP.
DELTRON INC: Amends 2011 Report to Correct Accountant Name
----------------------------------------------------------
Deltron, Inc., filed an amendment to its annual report on Form
10-K/A to indicate that the correct name of its accountant is
Cacciamatta Accountancy Corporation.
Cacciamatta Accountancy Corporation, in Irvine, Calif., noted in
its report on the Company's 2011 financial results that the
Company has incurred recurring losses from operations and negative
cash flows from operating activities and has a net stockholders'
deficit that raise substantial doubt about its ability to continue
as a going concern.
A full-text copy of the Form 10-K/A is available at:
http://is.gd/i5JbpY
About Deltron
Garden Grove, Calif.-based Deltron, Inc., is a manufacturing
company with two distinct business segments: polyurethane and
rebreather. The Company's primary business is Elasco, Inc., which
is focused on manufacturing technology for plastic and
polyurethane products. The Company's secondary business segment
is focused on the development of deep-sea exploration breathing
technology marketed as Blu Vu.
The Company reported a net loss of $7.9 million on $3.5 million of
sales for fiscal 2011, compared with a net loss of $360,590 on
$2.5 million of sales for fiscal 2010.
The Company's balance sheet at Sept. 30, 2011, showed $4.0 million
in total assets, $12.4 million in total liabilities, and a
stockholders' deficit of $8.4 million.
DEVELOPING EQUITIES: Court Orders Dismissal of Chapter 11 Case
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado has granted
the motion of Developing Equities Group, LLC, for the dismissal of
its Chapter 11 case.
In its motion for dismissal, filed Dec. 14, 2011, Debtor disclosed
that after payment of the administrative expenses claims of
Debtor's counsel, there would be no cash realized by unsecured
creditors in a liquidation. Further, the Debtor says it is not
presently in possession of any funds or property that would result
in little to no recovery for unsecured creditors.
About Developing Equities Group
Highlands Ranch, Colorado-based Developing Equities Group LLC
operates a commercial real estate development company that
purchases commercial real property for development, lease or
resale depending on the property. The Debtor's remaining
commercial real property as of the petition date is the Thornton
Property, a 2.753 gross acres of vacant land located in Adams
County, Colorado. The Company filed for Chapter 11 bankruptcy
protection (Bankr. D. Colo. Case No. 10-39617) on Nov. 23, 2010.
Harvey Sender, Esq., and Matthew T. Faga, Esq., at Sender &
Wasserman, P.C., in Denver, Colo., assist the Debtor in its
restructuring effort. In its schedules, the Debtor disclosed
$16,977,815 in total assets and $6,823,390 in total liabilities.
EASTMAN KODAK: Said to Hire Chief Restructuring Officer
-------------------------------------------------------
The Wall Street Journal's Dana Mattioli and Mike Spector report
that people familiar with the matter said Eastman Kodak Co. is
preparing to appoint a chief restructuring officer, a move that
could help the company secure financing needed to stay afloat
during bankruptcy proceedings. The new executive would report to
the board and could have broad powers to manage Kodak's finances
and operations.
One source told WSJ that Antonio Perez would remain as Kodak's CEO
and chairman.
The sources said Kodak hasn't made a final decision to move ahead
with the appointment, however, Dominic Di Napoli, a vice chairman
at FTI Consulting Inc., is among those being considered for the
role. FTI has been advising Kodak on ways to shore up its
finances since last year.
Mr. Di Napoli may be reached at:
Dominic Di Napoli
Vice Chairman
FTI CONSULTING
3 Times Square, 9th Floor
New York, NY 10036
Tel: 212-247-1010
Fax: 212-841-9350
E-mail: dominic.dinapoli@fticonsulting.com
Bloomberg News, citing three people familiar with the matter, said
last week Kodak is in advanced talks with Citigroup Inc. to
provide bankruptcy financing as it prepares for a potential
filing. Kodak may seek protection from creditors within weeks and
then hold an auction to sell its patent portfolio, said the
people, who asked not to be identified because the talks are
private.
One of the sources also told Bloomberg that Kodak's advisers are
lining up a "stalking horse" that would become the lead bidder for
a patent portfolio should it be auctioned via the Chapter 11
process.
WSJ's sources said Kodak is seeking about $1 billion in so-called
DIP financing.
One source told WSJ that Kodak's management and board were briefed
Friday on the company's efforts to secure bankruptcy financing.
They were told that naming a restructuring chief would make it
easier to line up investors for the loan, the person said.
About Eastman Kodak
Headquartered in Rochester, New York, Eastman Kodak Company
(NYSE:EK) -- http://www.kodak.com/-- provides imaging technology
products and services to the photographic and graphic
communications markets.
Kodak's balance sheet at Sept. 30, 2011, showed $5.10 billion
in total assets, $6.75 billion in total liabilities and a
$1.65 billion total deficit.
In July 2011, the Company said it was exploring strategic
alternatives, including a potential sale, related to its digital
imaging patent portfolios. Kodak hired Jones Day as legal adviser
and investment bank Lazard Ltd., but denied rumors it was filing
for bankruptcy. It also enlisted FTI Consulting Inc. In
December, Kodak hired Sullivan & Cromwell's restructuring
practice, replacing Jones Day.
A group of Kodak's bondholders have formed an informal committee
and hired law firm Akin Gump Strauss Hauer & Feld LLP for advise.
Hogan Lovells has been hired to advise UK pension trustees.
* * *
As reported by the TCR on Nov. 3, 2011, Fitch Ratings affirmed and
then withdrew the 'CC' long-term Issuer Default Rating and issue
ratings of Eastman Kodak Company. Fitch decided to discontinue
the rating, which is uncompensated.
Moody's Investors Service said in a report Nov. 7, 2011, that
Kodak will run out of cash in the U.S. around the second or third
quarters of 2012.
In the Jan. 9, 2012 edition of the TCR, Standard & Poor's Rating
Services lowered its long-term ratings on Kodak to 'CCC-' from
'CCC'. "The current rating reflects both our expectation that
Kodak's pace of cash consumption will remain high over the near
term," said Standard & Poor's credit analyst John Moore, "and a
considerable risk that earnings and cash flow will be insufficient
to support debt through 2012." Absent a meaningful cash infusion
from asset sales or monetization of intellectual property (IP)
assets, the company could significantly deplete its liquidity with
its 2012 first-half working capital and growth investments.
As reported by the TCR on Jan. 9, 2012, Moody's Investors Service
lowered all Kodak ratings, including: the corporate family and
probability of default to Caa3 from Caa2, the senior unsecured to
Ca from Caa3, the senior secured to Caa1 from B3 and the
Speculative Grade Liquidity rating to SGL-4 from SGL-3. The
rating downgrade reflects a heightened probability of a bankruptcy
over the near term as a result of a deteriorating liquidity
outlook, which Moody's believes is posing additional challenges to
consummating the sale or licensing agreements of Kodak's key
digital patents. The negative outlook reflects Kodak's eroding
liquidity position and the higher probability of a bankruptcy
filing.
EASTMAN KODAK: Sues Samsung Over Patents Related to Tablet PCs
--------------------------------------------------------------
The Wall Street Journal's Dana Mattioli and Mike Spector report
that Eastman Kodak sued Samsung Electronics Co. Wednesday for
violating Kodak's patents with tablet computers including the
Galaxy Tab.
The suit, filed in federal court in Rochester, N.Y., is the latest
in a series filed by Kodak this month.
Kodak has sued Apple Inc. and HTC Corp. for violating patents
covering the transmission of photos from devices like mobile
phones and tablets. It also sued rival Fujifilm Corp., alleging
its digital cameras violated patents covering image recording and
processing technology.
WSJ notes it is the second time Kodak has sued Samsung for
violating one of the patents, covering image preview technology
for electronic cameras. Samsung paid $550 million to settle the
earlier suit, which covered Samsung's alleged violation of the
patent on its mobile phones. WSJ relates Kodak has been settling
its patent suits on a product by product basis, giving it the
option to go after companies for similar alleged violations on new
gadgets.
Kodak also has patent litigation against such companies as Apple
Inc., Taiwan's HTC Corp., and BlackBerry maker Research in Motion
Ltd., which if successful could boost the value of its patents,
WSJ notes.
About Eastman Kodak
Headquartered in Rochester, New York, Eastman Kodak Company
(NYSE:EK) -- http://www.kodak.com/-- provides imaging technology
products and services to the photographic and graphic
communications markets.
Kodak's balance sheet at Sept. 30, 2011, showed $5.10 billion
in total assets, $6.75 billion in total liabilities and a
$1.65 billion total deficit.
In July 2011, the Company said it was exploring strategic
alternatives, including a potential sale, related to its digital
imaging patent portfolios. Kodak hired Jones Day as legal adviser
and investment bank Lazard Ltd., but denied rumors it was filing
for bankruptcy. It also enlisted FTI Consulting Inc. In
December, Kodak hired Sullivan & Cromwell's restructuring
practice, replacing Jones Day.
A group of Kodak's bondholders have formed an informal committee
and hired law firm Akin Gump Strauss Hauer & Feld LLP for advise.
Hogan Lovells has been hired to advise UK pension trustees.
* * *
As reported by the TCR on Nov. 3, 2011, Fitch Ratings affirmed and
then withdrew the 'CC' long-term Issuer Default Rating and issue
ratings of Eastman Kodak Company. Fitch decided to discontinue
the rating, which is uncompensated.
Moody's Investors Service said in a report Nov. 7, 2011, that
Kodak will run out of cash in the U.S. around the second or third
quarters of 2012.
In the Jan. 9, 2012 edition of the TCR, Standard & Poor's Rating
Services lowered its long-term ratings on Kodak to 'CCC-' from
'CCC'. "The current rating reflects both our expectation that
Kodak's pace of cash consumption will remain high over the near
term," said Standard & Poor's credit analyst John Moore, "and a
considerable risk that earnings and cash flow will be insufficient
to support debt through 2012." Absent a meaningful cash infusion
from asset sales or monetization of intellectual property (IP)
assets, the company could significantly deplete its liquidity with
its 2012 first-half working capital and growth investments.
As reported by the TCR on Jan. 9, 2012, Moody's Investors Service
lowered all Kodak ratings, including: the corporate family and
probability of default to Caa3 from Caa2, the senior unsecured to
Ca from Caa3, the senior secured to Caa1 from B3 and the
Speculative Grade Liquidity rating to SGL-4 from SGL-3. The
rating downgrade reflects a heightened probability of a bankruptcy
over the near term as a result of a deteriorating liquidity
outlook, which Moody's believes is posing additional challenges to
consummating the sale or licensing agreements of Kodak's key
digital patents. The negative outlook reflects Kodak's eroding
liquidity position and the higher probability of a bankruptcy
filing.
EDWARD DEETS: No MORs Filed; U.S. Trustee Wants Chapter 7
---------------------------------------------------------
Roberta A. DeAngelis, the United States Trustee for Region 3,
filed a motion to convert the Chapter 11 case of Edward Deets
Holding Company, Inc., to one under Chapter 7 of the Bankruptcy
Code or, in the alternative, for dismissal of Debtor's Chapter 11
case.
The U.S. Trustee requested for the conversion of the Debtor's case
because the Debtor fails to timely file its monthly operating
reports for the months of October and November 2011 and to pay
quarterly fees.
The U.S. Trustee asserts that the conversion of Debtor's Chapter
11 case to a case under Chapter 7 is the appropriate remedy in
order that a trustee may be appointed to investigate Debtor's
financial affairs and, if appropriate, recover and administer
assets of the estate for the benefit of creditors. Alternatively,
the United States Trustee requests that Debtor's Chapter 11 case
be dismissed.
The U.S. Trustee is represented by:
Gregory B. Schiller, Esq.
United States Department of Justice
Office of the United States Trustee
Middle District of Pennsylvania
Federal Building, Suite 1190
228 Walnut Street, P.O. Box 969
Harrisburg, PA 17108-0969
Tel: (717) 221-4515
Fax: (717) 221-4554
E-mail: Gregory.B.Schiller@usdoj.gov
Mountain Top, Pa.-based Edward Deets Holding Company, Inc., filed
for Chapter 11 bankruptcy (Bankr. M.D. Pa. Case No. 11-06869) on
Oct. 6, 2011. The Debtor estimated assets of $10 million to
$50 million and estimated debts of $1 million to $10 million. The
petition was signed by Edward Deets, president.
ELITE PHARMACEUTICALS: Makes First Shipment to ThePharmaNetwork
---------------------------------------------------------------
Elite Pharmaceuticals, Inc., announced that the initial shipment
of methadone hydrochloride 10 mg tablets has been made to
ThePharmaNetwork, LLC, and its wholly owned subsidiary, Ascend
Laboratories, LLC, under the commercial Manufacturing and Supply
Agreement.
The methadone hydrochloride tablets are the generic equivalent of
the Dolophine hydrochloride 10 mg tablets. The product and its
equivalents had annual sales of approximately $44 million based on
September 2011 data. Elite will be compensated at an agreed upon
price for the manufacturing and packaging of the products.
Jerry Treppel, Chairman & CEO of Elite commented, "We are pleased
to assist TPN with the launch and commercialization of their
Methadone product."
About Elite Pharmaceuticals
Northvale, New Jersey-based Elite Pharmaceuticals, Inc., is a
specialty pharmaceutical company principally engaged in the
development and manufacture of oral, controlled-release products,
using proprietary technology and the development and manufacture
of generic pharmaceuticals. The Company has one product,
Phentermine 37.5mg tablets, currently being sold commercially.
Demetrius & Company, L.L.C., in Wayne, New Jersey, expressed
substantial doubt about Elite Pharmaceuticals' ability to continue
as a going concern. The independent auditors noted that the
Company has experienced significant losses resulting in a working
capital deficiency and shareholders' deficit.
The Company reported a net loss of $13.6 million on $4.3 million
of revenues for the fiscal year ended March 31, 2011, compared
with a net loss of $8.1 million on $3.3 million of revenues for
the fiscal year ended March 31, 2010.
The Company reported a net loss attributable to common
shareholders of $16.81 million on $1.26 million of total revenues
for the six months ended Sept. 30, 2011, compared with a net loss
attributable to common shareholders of $2.90 million on $1.82
million of total revenues for the same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed
$10.83 million in total assets, $34.52 million in total
liabilities, and a $23.68 million total stockholders' deficit.
FREDRIC NEWMAN: Files for Chapter 11 Bankruptcy Protection
----------------------------------------------------------
Paul Brinkmann at South Florida Business Journal reports that
Fredric Newman and his wife, Mary Katheryn Newman, filed on Jan.
11, 2012, for personal Chapter 11 bankruptcy protection (Bankr.
S.D. Fla. Case No. 12-10770), declaring $47 million in debt --
mostly loan guarantees -- and $1.8 million in assets.
Mr. Newman is a shareholder in a Parkland Town Center real estate
ownership company.
The report relates that the biggest claim listed on the petition
is a Regions Financial Corp. unliquidated claim of $22 million
($20 million secured) for Mr. Newman's interest in Heron Bay
Office/Shopping Center in Coral Springs, Florida. Also listed on
the petition is a Credit Suisse First Boston Mortgage claim of
$6.9 million ($4 million secured) for Parkland Town Center real
estate owned by Parkland TC LLC, of which Mr. Newman is a
shareholder.
The report says Parkland Town Center was the target in April 2010
of a foreclosure by Wells Fargo as the trustee for a commercial
mortgage-backed securities fund originated by Credit Suisse. Mr.
Newman was named in the foreclosure action.
Angelo Gasparri, Esq., represents Mr. Newman.
GATEWAY METRO: Wants Access to Lenders' Cash Until March 30
-----------------------------------------------------------
Gateway Metro Center, LLC, asks the U.S. Bankruptcy Court for the
Central District of California for authorization to continue using
cash collateral of Road Bay Investments, LLC, and Flying Tigers,
LLC, through March 30, 2012, in accordance with a proposed budget.
The Debtor anticipates that it will need to use $203,934 in cash
collateral between Jan. 28, 2012, and March 30, 2012, to cover
utilities, property management expenses, building repair and
maintenance expenses, limited liability company taxes and fees,
leasing costs and other expenses related to the operation of the
Building.
The Debtor is also requesting one minor change from paragraph K of
the October 3rd Final Agreed Cash Collateral Order to allow the
Debtor to pay $3,650 to its accountant, Skeehan & Company, in
accordance with the Oct. 27, 2011 Order approving Skeehan's
employment.
Flying Tigers has consented to (a) the use of cash collateral
through March 30, 2012, and (b) the minor changes from the Oct.
3rd Order.
As reported in the TCR on Oct. 14, 2011, the Bankruptcy Court on
Oct. 3, 2011, authorized the Debtor, on a final basis, to use cash
collateral of Road Bay and Flying Tigers to pay actual expenses in
accordance with a budget. In the event that the Debtor procures
new tenants for Gateway Metro Center, lenders agree that the
Debtor will be allowed to pay leasing commissions and/or tenant
improvement costs up to $10,000 per month in the aggregate.
As adequate protection for any diminution in the value of the
lenders' interest in collateral caused by the Debtor's use of cash
collateral, the Lenders are granted Replacement Liens upon all
categories of property of the Debtor and its estate. To the
extent that the replacement liens are insufficient to adequately
protect any interest of the lenders, the Lenders are granted a
superpriority administrative expense claim and all of the benefits
and protections allowable under Section 507(b) of the Bankruptcy
Code, provided, that the superpriority administrative expense
claim granted to Flying Tigers will be subordinated to the
superpriority administrative expense claim of Road Bay.
About Gateway Metro Center
Gateway Metro Center LLC, is a California limited liability
company whose primary assets include (1) an approximately 121,462
square foot - 11 story office building and land located in the
City of Pasadena, California ("Gateway Metro Center" formerly
known as Gateway Tower) including rights to further develop the
land on which the Gateway Metro Center is located, and (2) an
approximately 8,000 square feet parcel of land immediately
abutting the office building.
The Company filed a Chapter 11 petition (Bankr. C.D. Calif. Case
No. 11-47919) on Sept. 6, 2011. Judge Barry Russell presides over
the case. Howard J. Weg, Esq., and Lorie A. Ball, Esq., at
Peitzman, Weg & Kempinsky LLP, in Los Angeles, California,
represent the Debtors. Skeehan & Company serves as accountant to
the Debtor. FTI Consulting, Inc., is the financial advisor to the
Debtor. Colliers International, Inc. acts as leasing broker.
In its schedules, the Debtor disclosed $32,570,485 in assets and
$22,338,135 in debts. The petition was signed by John F. Pipia,
its president.
GENERAL MARITIME: Court Approves Deloitte & Touche as Auditor
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized General Maritime Corporation, et al., to employ
Deloitte & Touche LLP as their independent auditor and Deloitte
Financial Advisory Services LLP as their bankruptcy administration
consultant.
With respect to Audit Services, Deloitte & Touche is authorized
to:
(a) audit the financial statements of the Debtors and express
an opinion on the fairness of the presentation of the
Debtors' consolidated financial statements for the year
ending Dec. 31, 2011;
(b) review the interim financial information for each quarter
in the year ending Dec. 31, 2011, prepared for submission
to the Securities and Exchange Commission;
(c) express an opinion on the effectiveness of the Debtors'
internal control over financial reporting as of Dec. 31,
2011; and
(d) render other related or similar audit services as may be
requested by the Debtors and agreed to by Deloitte &
Touche pursuant to separate engagement letters.
With respect to bankruptcy administration consultant services,
Deloitte FAS is authorized to:
(1) provide assistance in the development and preparation of
the Debtors' Statement of Financial Affairs;
(2) provide assistance in the development and preparation of
Schedules of Assets and Liabilities, Monthly Operating
Reports, and other filings required to be submitted to the
Court; and
(3) provide assistance to the Debtors' management in its claim
reconciliation process including, matching claims to
scheduled liabilities, evaluating claims, and preparing
exhibits to objections.
Deloitte & Touche estimates that its fee for audit services will
be approximately $579,000 plus expenses. In addition to the fee
above, Deloitte & Touche will charge incremental fees relating to
audit procedures, consultations, and administrative time related
to the Debtors' bankruptcy filing at these hourly rates:
* $550 per hour for Partners, Principals or Directors;
* $400 per hour for Senior Managers;
* $325 per hour for Managers;
* $175 per hour for Senior Accountants; and
* $100 per hour for Staff Accountants.
For the Bankruptcy Administration Services, Deloitte FAS's fees
will be based upon the hours expended by Deloitte FAS personnel
multiplied by their applicable hourly rates:
* $550 per hour for Partners, Principals or Directors;
* $400 per hour for Senior Managers;
* $325 per hour for Managers;
* $225 per hour for Senior Consultants; and
* $150 per hour for staff.
About General Maritime
New York-based General Maritime Corporation, through its
subsidiaries, provides international transportation services of
seaborne crude oil and petroleum products. The Company's fleet is
comprised of VLCC, Suezmax, Aframax, Panamax and product carrier
vessels. The fleet consisted of 30 owned vessels and three
chartered vessels. The company generates substantially all of its
revenues by chartering its fleet to third-party customers. The
largest customers include major international oil companies, oil
producers, and oil traders such as BP, Chevron Corporation, CITGO
Petroleum Corp., ConocoPhillips, Exxon Mobil Corporation, Hess
Corporation, Lukoil Oil Company, Stena AB, and Trafigura.
General Maritime and 56 subsidiaries filed for Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 11-15285) on Nov. 17,
2011. Douglas Mannal, Esq., and Adam C. Rogoff, Esq., at Kramer
Levin Naftalis & Frankel LLP, in New York, serve as counsel to the
Debtors. Moelis & Company is the financial advisor. Garden City
Group Inc. is the claims and notice agent.
General Maritime disclosed $1,718,598,000 in assets and
$1,412,900,000 in liabilities as of Sept. 30, 2011. General
Maritime's publicly held securities include 121.5 million common
shares and $300 million in unsecured 12% notes due 2017.
Prepetition, General Maritime reached agreements with its key
senior lenders, including its bank group, led by Nordea Bank
Finland plc, New York Branch as administrative agent, as well as
affiliates of Oaktree Capital Management, L.P., on the terms of a
restructuring. Under terms of the agreements, Oaktree will
provide a $175 million new equity investment in General Maritime
and convert its prepetition secured debt to equity.
In conjunction with the filing, General Maritime has received a
commitment for up to $100 million in new DIP financing from a
group of lenders led by Nordea as administrative agent.
Counsel for Nordea, as the DIP Agent and the Senior Agent, are
Thomas E. Lauria, Esq., and Scott Greissman, Esq., at White & Case
LLP. Counsel for Oaktree Capital Management, the Junior Agent,
are Edward Sassower, Esq., and Brian Schartz, Esq., at Kirkland &
Ellis, LLP.
The Official Committee of Unsecured Creditors appointed in the
case has retained lawyers at Jones Day as Chapter 11 counsel.
Jones Day previously represented an ad hoc group of holders of the
12% Senior Notes due 2017 issued by General Maritime Corp. This
representation began Sept. 20, 2011, and concluded Nov. 29, 2011,
with the agreement of all members of the Noteholders Committee.
The Creditors Committee also tapped Lowenstein Sandler PC as
special conflicts counsel.
The Noteholders Committee consisted of Capital Research and
Management Company, J.P. Morgan Investment Management, Inc., J.P.
Morgan Securities LLC, Stone Harbor Investment Partners LP and
Third Avenue Focused Credit Fund.
The Creditors Committee is comprised of Bank of New York Mellon
Corporate Trust, Stone Harbor Investment Partners, Delos
Investment Management, and Ultramar Agencia Maritima Ltda.
GEORGES MARCIANO: US Trustee No Show, May Be Convicted of Contempt
------------------------------------------------------------------
U.S. trustee David Gottlieb, appointed by a U.S. Court in the
involuntary bankruptcy of Georges Marciano, did not appear at the
Montreal courthouse last Friday, despite a special order issued on
Dec. 29, 2011, by the Honourable Mark Schrager, judge of the
Superior Court of Quebec. Mr. Gottlieb is facing a charge of
contempt of court, which carries a fine of up to $5000 or
imprisonment.
As explained by Morty Freiheit, one of the prosecutors connected
with the Marciano case, "David Gottlieb seems to want to delay the
application of the judgement rendered against him in the interests
of his American clients." According to the documents submitted to
the Superior Court, David Gottlieb is refusing not only to comply
with orders and return illegally obtained documents, but he
submitted them to a court in California for the benefit of his
clients as part of proceedings brought against Mr. Marciano by
former employees for hurt feelings.
Today the Honourable Judge Schrager issued a new order summoning
David Gottlieb to appear in court on January 20. The court has
demanded that if he elects not to comply, he must solemnly declare
his refusal to appear and demonstrate that he understands he will
be liable to a fine or a prison sentence. Furthermore, Judge
Schrager was unequivocal: he will proceed on January 20 with or
without Mr. Gottlieb and will rule on whether to issue an arrest
warrant in his name.
On Dec. 8, 2011, Judge Schrager rejected the search warrant and
the authorization to seize assets belonging to Georges Marciano
and third parties. In his judgment, Judge Schrager ordered the
Gottlieb Trustee to return all assets that were seized from Mr.
Marciano before the trial (artwork, luxury vehicles, properties,
jewels, etc.).
About Georges Marciano
Georges Marciano is the co-founder of the apparel company Guess?,
Inc. and an investor in various companies and real estate
ventures. Three of the five former employees of Mr. Marciano,
who won a $370 million libel judgment against him in July 2009,
filed an involuntary chapter 11 bankruptcy petition (Bankr. C.D.
Calif. Case No. 09-39630) against the Guess? Inc. co-founder on
Oct. 27 2009. Mr. Marciano challenged the involuntary petition
for 14 months, and Judge Victoria S. Kaufman entered an order for
relief against Mr. Marciano on Dec. 29, 2010.
GERALD CHAMPION: Sues Insurer Over Malpractice Coverage
-------------------------------------------------------
Sindhu Sundar at Bankruptcy Law360 reports that Gerald Champion
Regional Medical Center sued its liability insurer Nautilus
Insurance Co. for coverage in dozens of medical malpractice suits
that led the beleaguered Alamogordo, N.M.-based hospital to file
for Chapter 11 bankruptcy protection.
In an adversary proceeding in New Mexico bankruptcy court, Gerald
Champion claimed that Nautilus revoked its professional liability
coverage to the hospital after agreeing in September 2010 to cover
it for more than 54 malpractice suits, after accusing the hospital
of making a false representation in its policy application,
according to Law360.
About Gerald Champion
Otero County Hospital Association, Inc., dba Gerald Champion
Regional Medical Center -- http:/www.gcrmc.com/ -- is a not-for-
profit 99-bed acute care facility located in Alamogordo, N.M. It
filed for Chapter 11 bankruptcy (Bankr. N.M. Case No. 11-11-13686)
on Aug. 16, 2011. Craig H. Averch, Esq., and Ronald Kevin
Gorsich, Esq., at White & Case, LLP, as well as John D. Wheeler &
Associates, PC, represent the Debtor.
GIORDANO'S ENTERPRISES: Trustee Sues Former Owner Over Payments
---------------------------------------------------------------
Dow Jones' DBR Small Cap reports that the family that owned the
Giordano's restaurant company for decades has been accused of
draining the company's finances of millions of dollars and putting
the treasured Chicago pizza chain on an unavoidable path to
bankruptcy.
About Giordano's Enterprises
Chicago, Illinois-based Giordano's Enterprises, Inc., was founded
in 1974 in Chicago, Illinois, by two Argentinean immigrants, Efren
and Joseph Boglio. In 1988, John and Eva Apostolou purchased
control of Giordano's. Although this casual dining eatery offers
a broad array of fine Italian cuisine, it is primarily know for
its "Chicago's World Famous Stuffed Pizza". At present,
Giordano's operates six company owned stores in Chicagoland, four
joint venture stores, and thirty-five franchisee locations. In
addition, Giordano's operates Americana Foods, Inc., located in
Mount Prospect, Illinois, that serves as the commissary for the
majority of food products purchased by the Illinois locations.
An affiliated real estate holding company, Randolph Partners, LP,
owns 12 restaurant buildings that are leased to four of the
company-owned locations, two of the joint venture locations and
six of the franchisee locations. The other 33 locations are
leased from third party landlords; two for the Giordano's
locations, two for the joint venture locations and 29 for the
franchise locations. Giordano's is the lessee and subleases the
restaurant facility for 22 of the 29 franchise third party leases.
JBA Equipment Finance, Inc, another affiliated entity, leases
restaurant equipment packages to eight franchisee locations.
Giordano's Enterprises and 26 affiliates filed for Chapter 11
bankruptcy protection (Bankr. N.D. Ill. Lead Case No. 11-06098) on
Feb. 16, 2011. Six additional affiliates filed for Chapter 11
protection on Feb. 17, 2011. Michael L. Gesas, Esq., David A.
Golin, Esq., Miriam R. Stein, Esq., and Kevin H. Morse, at
Arnstein & Lehr, LLP, in Chicago, serve as the Debtors'
bankruptcy counsel. Giordano's Enterprises disclosed $59,387 in
assets and $45,538,574 in liabilities as of the Chapter 11 filing.
Certain of the Debtors owe Fifth Third Bank not than $13,560,662,
pursuant to loans and financial accommodations, and $31,927,998
under a business loan as of the Petition Date. Fifth Third has
agreed to provide DIP financing of up to $35,983,563 to the
Debtors.
Philip V. Martino was appointed as Chapter 11 trustee in the
Debtors' bankruptcy cases, at the behest of the U.S. Trustee.
Mr. Martino filed a $3,000,000 bond.
GREYSTONE PHARMA: Court OKs Deal Resolving IRS' Plan Objection
--------------------------------------------------------------
The Hon. Paulette J. Delk of the U.S. Bankruptcy Court for the
Western District of Tennessee approved a stipulation resolving
objection to confirmation of the Second Amended Plan of
Reorganization for Greystone Pharmaceuticals, Inc., as proposed by
First Texas Medical Partners, LLC.
The United States of America, a creditor acting through the
Internal Revenue Service, has objected to the confirmation of the
Plan.
The parties stipulated that the Plan would be modified as:
1. All penalties as set forth on the IRS proof of claim and
that may accrued upon posting of the late filed returns listed on
the administrative claim are allowed.
2. Nothing in the Plan will be construed to prohibit the IRS
from asserting the trust fund recovery penalty against former
officers, and directors of the Debtor or to exercise its statutory
authority to audit and assert claims based on open tax periods.
3. The IRS administrative expense claim of $11,108 is allowed
and is to be paid within 30 days of the entry of the order
confirming the plan and will be paid at the statutory rate of
interest, which currently is 4%.
4. The IRS priority claim is to be paid at the statutory rate of
interest, which currently is 4%.
5. The IRS' unsecured general claim of $100,183, which includes
interest up to the date of the filing of the petition at the
statutory rate of interest is allowed and will be paid in the same
manner as all unsecured general claims.
6. The IRS' priority claim of $425,653 will be paid in equal
monthly installments of $7,839, beginning 30 days from the date of
entry of the confirmation order until full paid within 5 years
form confirmation.
7. The Debtor is prohibited form destroying tax records
necessary for the trust fund recovery penalty or audit purposes.
8. The plan will include this default language:
ORDERED, that if the Debtor fails to make any payment required
by the confirmed plan of reorganization to the Service or fails
to file any required federal tax return by the due date of such
return and pay any outstanding tax liability shown on the
return at the time the return is filed, then the United States
may declare that the Debtor is in default of the plan; that
failure to declare a default does not constitute a waiver by
the United States of the right to declare that the Debtor is in
default; that if the Untied States declares the Debtor to be in
default of the Debtor's obligations under the plan, then the
entire imposed liability, together with any unpaid current
liabilities, will become due and payable immediately upon
written demand to the Debtor; and that if full payment is not
made within 30 days of such demand, then the Internal Revenue
Service may collect any unpaid liabilities through the
administrative collection provisions of the Internal Revenue
Code.
9. The consent order prevails over the plan as confirmed and is
incorporated into the plan by reference.
The Amended Plan
The Plan provides that 100% of the Allowed Claim of Fifth Third
Bank on the Class 2 Claim has been paid in full, the transferred
assets of Debtor will be transferred to First Texas on the
Effective Date free and clear of any and all liens, security
interests, and adverse claims of any nature whatsoever. First
Texas will have the unrestricted right to assign the transferred
assets without altering the Debtor's right to payment. First
Texas will have the right to designate at any time assets to be
excluded from the transferred assets. The retained assets will
continue to be assets of Debtor to be administered by the
Liquidation Agent in accordance with the terms of the Plan.
Under the Plan, First Texas will provide financing in an amount of
approximately $5,000,000, which will be used to implement the Plan
and for working capital. First Texas has acquired a funding
agreement of approximately $5,000,000, which will be used to
implement the Plan. First Texas intends to obtain the funding
from MSB Fairway Capital Partners. The initial draw on the line
of credit for payments due on Effective Date, other expenses (fees
of legal counsel for First Texas) and for working capital is
expected to be not less than $2,500,000.
A full-text copy of the Second Amended Disclosure Statement is
available for free at:
http://bankrupt.com/misc/GREYSTONEPHARMA_ds_2ndamended.pdf
About Greystone Pharmaceuticals
Fort Myers, Florida-based Greystone Pharmaceuticals, Inc. -- aka
Greystone Medical, Inc., and Greystone Medical Group, Inc. --
operates a pharmaceutical company. The Company filed for Chapter
11 bankruptcy protection (Bankr. W.D. Tenn. Case No. 09-32236) on
Nov. 2, 2009. Kevin Crumbo has been appointed as Chapter 11
trustee in the Debtor's case. Butler, Snow, O'Mara, Stevens &
Cannada PLLC serves as the trustee's counsel. David J. Cocke,
Esq., at Evans Petree PC, in Memphis, Tenn., represents the
Unsecured Creditors' Committee as counsel. In its schedules, the
Debtor disclosed $25,467,546 in assets, and $22,601,150 in
liabilities as of the Petition Date.
HERCULES OFFSHORE: Liftboat Catches Fire in Nigeria
---------------------------------------------------
Hercules Offshore, Inc., announced that the Mako, a 175' class
liftboat in Nigeria, was engulfed by a fire that originated on a
third-party rig, the KS Endeavor, during the early morning hours
on Jan. 16, 2012. The Mako was providing excess storage services
adjacent to the KS Endeavor drilling rig at the time of the
incident. The incident occurred off the coast of Nigeria,
approximately 250 kilometers west of Port Harcourt. All 27
personnel aboard the Mako were safely rescued and transported to a
local clinic for medical evaluation and treatment. No major
injuries have been reported.
At this time, the Company has not been able to confirm the extent
of the damage to the Mako, although visual indication from Company
employees at the site indicated that the vessel sustained
significant damage. The vessel has an insured value of $8.0
million, subject to a $1.0 million deductible. The deductible
would not apply in the event the vessel is a total loss. The
Company also carries removal of wreck insurance, subject to a
$250,000 deductible.
The Company has notified the appropriate authorities, including
the United States Coast Guard.
About Hercules Offshore
Hercules Offshore Inc. (NASDAQ: HERO) --
http://www.herculesoffshore.com/-- provides shallow-water
drilling and marine services to the oil and natural gas
exploration and production industry in the United States, Gulf of
Mexico and internationally. The Company provides these services
to integrated energy companies, independent oil and natural gas
operators and national oil companies. The Company operates in six
business segments: Domestic Offshore, International Offshore,
Inland, Domestic Liftboats, International Liftboats and Delta
Towing.
The Company reported a net loss of $134.59 million on $657.48
million of revenue for the year ended Dec. 31, 2010, compared with
a net loss of $91.73 million on $742.85 million of revenue during
the prior year.
The Company also reported a net loss of $54.64 million on $492.57
million of revenue for the nine months ended Sept. 30, 2011,
compared with a net loss of $50 million on $460.06 million of
revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed $2.05
billion in total assets, $1.12 billion in total liabilities and
$928.65 million in total stockholders' equity.
* * *
The Troubled Company Reporter said on Nov. 17, 2010, Moody's
Investors Service downgraded the Corporate Family Rating of
Hercules Offshore Inc. and the Probability of Default Rating to
Caa1 from B2. Moody's also downgraded Hercules' 10.5% senior
secured notes due 2017, its senior secured revolving credit
facility due 2012, and its senior secured term loan B due 2013,
all to Caa1 with LGD3, 45%. The outlook remains negative.
"The inability of Hercules to generate meaningful free cash flow
despite limited reinvestment in its aging fleet of rigs is cause
for concern," commented Stuart Miller, Moody's Senior Analyst.
"Without a significant de-leveraging of its balance sheet,
Hercules is following a path that could lead to financial hardship
at the first sign of a market softening." Hercules' Caa1 CFR
rating reflects its highly leveraged balance sheet and limited
ability to generate free cash flow. The Caa1 rating on the senior
secured notes reflects their pari passu secured position in
Hercules' capital structure relative to the senior secured credit
facilities.
HOSTESS BRANDS: Ch. 11 Runs Into Confusion Over Union Talks
-----------------------------------------------------------
Hilary Russ at Bankruptcy Law360 reports that time-sensitive talks
between freshly bankrupt Hostess Brands Inc. and labor unions
appeared to be muddled last week in New York bankruptcy court
because of confusion about who was authorized to negotiate on
behalf of many of its 19,000 employees.
Law360 says the talks, and the timing, are critical. If the
company can't reach some accord on collective bargaining
agreements within 75 days, Hostess' post-petition lenders -- which
are providing access to $35 million in immediate financing to fund
business operations -- can demand that the company start selling
off, according to the report.
About Hostess Brands
Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known
for iconic brands such as Butternut, Ding Dongs, Dolly Madison,
Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride,
Twinkies and Wonder. Hostess has 36 bakeries, 565 distribution
centers and 570 outlets in 49 states.
Hostess filed for Chapter 11 bankruptcy protection early morning
on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through
12-22056) in White Plains, New York. Debtor-affiliates that filed
separate Chapter 11 petition are IBC Sales Corporation, IBC
Trucking LLC, IBC Services LLC, Interstate Brands Corporation, and
MCF Legacy Inc. Hostess Brands disclosed assets of $982 million
and liabilities of $1.43 billion as of Dec. 10, 2011. Debt
includes $860 million on four loan agreements. Trade suppliers
are owed as much as $60 million.
The bankruptcy filing was made two years after predecessors
Interstate Bakeries Corp. and its affiliates emerged from
bankruptcy (Bankr. W.D. Mo. Case No. 04-45814). Ripplewood
Holding LLC, after providing $130 million to finance the plan,
obtained control of IBC's business following the prior
reorganization. Hostess Brands is privately held. The new owners
pursued new Chapter 11 cases to escape from what they called
"uncompetitive and unsustainable" union contracts, pension plans,
and health benefit programs.
In 2011, Hostess retained Houlihan Lokey to explore sales of its
smaller assets and individual brands. Houlihan Lokey oversaw the
sale of Mrs. Cubbison's to Sugar Foods Corporation for $12
million, but was unable to sell any of Hostess' core assets.
Judge Robert D. Drain oversees the case. Hostess has hired Jones
Day as bankruptcy counsel; Stinson Morrison Hecker LLP as general
corporate counsel and conflicts counsel; Perella Weinberg Partners
LP as investment bankers, and Kurtzman Carson Consultants LLC as
administrative agent.
Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry
Wilson, the head of turnaround and restructuring firm MAEVA
Advisors, are representing the Teamsters union.
HOTEL AIRPORT: Files Chapter 11 Plan, To Pay Creditors in 3 Years
-----------------------------------------------------------------
Hotel Airport Inc. filed with the U.S. Bankruptcy Court for the
District of Puerto Rico a plan of reorganization and accompanying
disclosure statement on Dec. 9, 2011.
Holders of administrative expense claims and priority claims will
be paid in full on the Plan's effective date.
The classes of creditors and interests designated in the Plan are:
-- Class 1 Secured Claim by Firstbank. The Class is comprised
of the secured claim of FirstBank, which is secured with a
mortgage encumbering the Debtor's main asset -- its lease
contract with Puerto Rico Ports Authority, and virtually
all the other assets. As part of several transactions made
during the process of acquisition in 2008, Firstbank
granted an $11,000,000 loan to Caribbean Airport Facilities
Inc., guaranteed by its wholly-owned subsidiary HAI, which
later became a co-obligee. The outstanding balance of the
loan is approximately $9,000,000;
-- Class 2 Puerto Rico Ports Authority Claim. The Class is
comprised of the claims of PRPA arising out of the lease
contract for the premises used by the Debtor in the LMM
International Airport. Class 2 is subdivided into Class
2A, and Class 2B:
* Class 2A is that portion of the debt, which is secured
with a $1 million deposited in the Superior Court case
KPE2009-4313, together with any and all accrued interest;
and
* Class 2B is that portion of the debt which may be owed to
PRPA in excess of the funds securing Class 2A;
-- Class 3 General Unsecured. The Class will consist of
creditors with Allowed Unsecured Claims. General unsecured
creditors included in this Class were listed in the
Debtor's Amended Schedule F in the total amount of
$155,666,716. A substantial portion of the general
unsecured claims listed by the Debtor relate to its status
as a co-obligor for loans made by Firstbank to related
companies. These loans made to those related companies are
secured by property held by them, and are being paid
according to the debt-service agreed between the creditor
and the respective principal debtor. Hence, the Debtor will
not be making payments on the claims, but will remain as a
guarantor in case of default. The other unsecured claims
are to be paid 100% of their allowed amounts, without
interest, in 36 monthly installments starting 30 days after
the Effective Date;
-- Class 4 Stock Holders. The Class is comprised of the stock
holders of the Debtor. Except as provided in the merge
with Caribbean Airport Facilities, Inc., the members of the
Class will retain their interest in stock, but will receive
no dividends until payments to Class 3 (unsecured
creditors) are concluded;
-- Class 5 Other Sec. 507 Priorities. The Class is comprised
of the holders of claims entitled to priority under
Sections 507(a)(1), 507(a)(4), 507(a)(5), 507(a)(6), or
507(a)(7) of the Bankruptcy Code. The only claims
belonging to the Class are those held by the Debtor's
employees for accumulated vacation. The employees will
remain entitled to enjoy the vacation leave in the ordinary
course of the Debtor's business. If there is any other
type of Class 5 Claim, not identified by the Debtor as of
this time, the same will receive -- in 36 monthly
installments -- deferred cash payments of a value, as of
the Effective Date, equal to the allowed amount of the
Claim; and
-- Priority Governmental Claims. All unsecured priority
governmental claims pursuant to Section 507(a)(8) of the
Bankruptcy Code, as allowed, will be paid in 36 equal
monthly installments, together with the applicable
statutory interest accrued. Payments will commence on
Effective Date.
The Plan presents a scenario upon which it will be substantially
funded by the Debtor's assets and income from the operation of
business, according to David Tirri, the Debtor's president. The
Plan also considers the Debtor's experience and knowledge of the
business and specific knowledge of Debtor's sector of the
industry. The Reorganization process will take place under the
management of Mr. Tirri.
The Plan proposes a merger between the Debtor/HAI and and its
parent, CAF, whereby a single entity -- CAF -- will emerge. HAI's
operations will continue under its present management as a
division of CAF. The merger will take place upon the Effective
Date of the Plan. The Debtor submits that the merger will
strengthen HAI's ability to operate and maintain its business.
CAF -- as successor in interest of HAI -- will assume its
obligations maintaining HAI's current assets, which are all
encumbered with secured debts.
Upon the merge with CAF, Mr. Tirri's position will be vice-
president, and general manager for the hotel operations, with his
compensation remaining at $15,000 per month in salary, plus
$10,000 per month for expenses. Other insiders which may from
time to time be part of the management, due to their positions
with CAF are CAF's stockholders Anthony C. Tirri, Jean Tirri, and
Justin Tirri, with only Anthony C. Tirri receiving compensation of
$5,000 per month.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/HOTELAIRPORT_DS_Dec092011.pdf
About Hotel Airport
Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11
bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011.
Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo
Munoz, PSC, serves as bankruptcy counsel. Francisco J. Garrido
Molina serves as its accountant, and RS& Associates as external
auditors to perform auditing services. The Debtor disclosed
US$8,547,993 in assets and US$171,169,392 in liabilities as of the
Chapter 11 filing. The petition was signed by David Tirri, its
president.
HRAF HOLDINGS: Court Confirms Amended Joint Plan
------------------------------------------------
Bankruptcy Judge R. Kimball Mosier in Utah confirmed the First
Amended Plan of Reorganization Under Chapter 11 of the Bankruptcy
Code filed jointly by HRAF Holdings, LLC and Harbor Real Asset
Fund, LP. The Plan was filed Sept. 26, 2011. The Court held a
hearing Jan. 12, 2012, to consider confirmation of the Plan. A
copy of Judge Mosier's Jan. 12, 2012 Findings and Conclusions is
available at http://is.gd/WW97Oefrom Leagle.com.
The Dec. 5 edition of the Troubled Company Reporter outlined the
terms of the Plan. Through the Joint Plan, the Debtors intend to
substantively consolidate their assets and liabilities and to then
repay creditors in full with the proceeds of the liquidation of
their assets, while preserving the pre-confirmation priorities of
creditors and interest holders. The Reorganized Debtor may, but
is not required to, formalize the consolidation of HRAF and Harbor
by filing articles of merger, articles of dissolution or other
corporate filings, as the Reorganized Debtor may determine in its
sole discretion.
Since the Petition Date, HRAF has sold certain real property owned
by it as of the Petition Date for the aggregate purchase price of
$3,097,500, and currently is holding $2,579,696 in its bank
accounts.
The Debtors propose to liquidate their remaining real estate
holdings and other assets in an orderly process designed to
maximize returns to all stakeholders. The Reorganized Debtor will
pay in full the claim of Loan Acquisitions Group LLC no later than
Sept. 9, 2015, and the Reorganized Debtor also will make an
initial distribution to LAG and other unsecured creditors of HRAF,
if any, within 30 days after the Effective Date. Other secured
creditors (primarily real estate taxing authorities) will be paid
in full either (a) at the closing of the sales of the Reorganized
Debtor's real property assets, or (b) on the first Interim
Distribution Date following the closing of a sale of property upon
which they hold a lien.
Holders of Class 2 Allowed General Unsecured Claims as against
HRAF will be paid the full amount of their claim as of the
Petition Date, but will not be paid post-petition interest on
their Claims.
Holders of Class 23 Allowed General Unsecured Claims as against
Harbor will be paid the full amount of their claim as of the
Petition Date to the extent the Reorganized Debtor has sufficient
cash remaining after distributions to the holders of Secured
Claims and Priority Claims. The holders of Allowed Class 23
Claims will not be paid post-petition interest on their Claims.
A copy of the First Amended Plan is available for free at:
http://bankrupt.com/misc/hraf.firstamendedplan.pdf
About HRAF Holdings
Midvale, Utah-based HRAF Holdings, LLC, filed for Chapter 11
bankruptcy protection (Bankr. D. Utah Case No. 10-32433) on Sept.
9, 2010. HRAF disclosed $18,423,000 in assets and $10,989,436 in
liabilities as of the Chapter 11 filing. Michael R. Johnson,
Esq., at Ray Quinney & Nebeker P.C., in Salt Lake City, represents
HRAF Holdings, LLC.
Affiliate Harbor Real Asset Fund L.P. filed for Chapter 11
bankruptcy protection (Bankr. D. Utah Case No. 10-32436) on
Sept. 9, 2010. George Hofmann, Esq., Matthew M. Boley, Esq., and
Steven C. Strong, Esq., at Parsons Kinghorn Harris, in Salt Lake
City, represents Harbor Real Asset Fund, LP.
The two cases are consolidated and jointly administered under the
case of HRAF.
The U.S. Trustee for Region 19 had sought dismissal of the Chapter
11 case of HRAF Holdings and Harbor or, in the alternative,
conversion of the Debtors' case to Chapter 7 proceedings.
HUDSON TREE: Hires Bill F. Payne as Attorney
--------------------------------------------
Hudson Tree Farm, Inc., sought and obtained authority from the
U.S. Bankruptcy Court for the Eastern District of Texas to employ
Bill F. Payne, of The Moore Law Firm, L.L.P., as attorney.
Mr. Payne's professional services include:
a) giving Debtor legal advice with respect to power and
duties as debtor-in-possession in the continued
operation of the business and management of property;
b) preparing on behalf of applicant as debtor-in-possession
necessary applications, answers, orders, reports and
other legal papers; and
c) performing all other legal services for Debtor as debtor-
in-possession which may be necessary.
Mr. Payne will be paid for its services at hourly rate of $400.
A retainer of $15,000 was paid by Mark & Deana Hudson, principals
of Debtor. The attorney will make periodic applications for
interim compensation.
The Debtor assures the Court that Mr. Payne is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
About Hudson Tree Farm
Bonham, Texas-based Hudson Tree Farm, Inc., dba Kennedy Arbor, has
been engaged in the business of growing and selling trees. The
company is formerly known as Hudson & Williams Investments, Inc.
Hudson Tree Farm filed for Chapter 11 bankruptcy (Bankr. E.D. Tex.
Case No. 11-43633) on Dec. 5, 2011. Chief Judge Brenda T. Rhoades
oversees the case. Bill F. Payne, Esq., at The Moore Law Firm,
LLP, serves as the Debtor's counsel. In its petition, the Debtor
estimated assets of $10 million to $50 million and debts of $1
million to $10 million. The petition was signed by Mark Hudson,
president.
HUDSON TREE: Files Schedules of Assets and Liabilities
------------------------------------------------------
Hudson Tree Farm, Inc., filed with the U.S. Bankruptcy Court for
the District of Delaware its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $1,073,700
B. Personal Property $10,630,320
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $2,502,335
E. Creditors Holding
Unsecured Priority
Claims $8,199
F. Creditors Holding
Unsecured Non-priority
Claims $122,337
----------- -----------
TOTAL $11,704,020 $2,632,872
A copy of Hudson Tree Farm, Inc.'s schedules is available for free
at http://bankrupt.com/misc/HUDSON_TREE_sal.pdf
About Hudson Tree Farm
Bonham, Texas-based Hudson Tree Farm, Inc., dba Kennedy Arbor, has
been engaged in the business of growing and selling trees. The
company is formerly known as Hudson & Williams Investments, Inc.
Hudson Tree Farm filed for Chapter 11 bankruptcy (Bankr. E.D. Tex.
Case No. 11-43633) on Dec. 5, 2011. Chief Judge Brenda T. Rhoades
oversees the case. Bill F. Payne, Esq., at The Moore Law Firm,
LLP, serves as the Debtor's counsel. In its petition, the Debtor
estimated assets of $10 million to $50 million and debts of $1
million to $10 million. The petition was signed by Mark Hudson,
president.
IMAGEWARE SYSTEMS: Incurs $5 Million Net Loss in 2010
-----------------------------------------------------
Imageware Systems Incorporated filed with the U.S. Securities and
Exchange Commission its Annual Report on Form 10-K reporting a net
loss of $5.05 million on $5.81 million of revenue for the year
ended Dec. 31, 2010, compared with a net loss of $12.63 million on
$6.02 million of revenue during the prior year.
The Company's balance sheet as of Dec. 31 2010, showed
$3.98 million in total assets, $21.88 million in total
liabilities, and a $17.90 million total shareholders' deficit.
A full-text copy of the Form 10-K is available at:
http://is.gd/lhmy1m
About ImageWare Systems
Headquartered in San Diego, California, ImageWare Systems, Inc. is
a leader in the emerging market for software-based identity
management solutions, providing biometric, secure credential, law
enforcement and enterprise authorization. Its "flagship" product
is the IWS Biometric Engine. Scalable for small city business or
worldwide deployment, the Company's biometric engine is a multi-
biometric platform that is hardware and algorithm independent,
enabling the enrollment and management of unlimited population
sizes. The Company's identification products are used to manage
and issue secure credentials, including national IDs, passports,
driver licenses, smart cards and access control credentials. Its
law enforcement products provide law enforcement with integrated
mug shot, fingerprint LiveScan and investigative capabilities.
The Company also provides comprehensive authentication security
software.
INDIANTOWN COGENERATION: Fitch Withdraws BB Rating on $389MM Debt
-----------------------------------------------------------------
Fitch Ratings has withdrawn the 'BB' ratings on $389.4 million of
outstanding debt as follows:
Indiantown Cogeneration L.P. (ICLP) and Indiantown Cogeneration
Funding Corp (as co-issuers):
-- $264.4 million taxable first mortgage bonds due 2020.
Martin County Industrial Development Authority:
-- $125 million tax-exempt facility revenue bonds due 2025.
Fitch has withdrawn the ratings due to a decision by the project
sponsor, Energy Investors Funds (EIF), to stop participating in
the rating process. Fitch will no longer have sufficient
information to maintain the ratings going forward, and will no
longer provide ratings or analytical coverage for ICLP.
ICLP is a 330 megawatt pulverized coal-fired cogeneration facility
located in Martin County, Florida. ICLP supplies energy and
capacity to Florida Power and Light Co. (Issuer Default Rating of
'A' with a Stable Outlook by Fitch), under a 30-year power
purchase agreement. ICLP also provides steam to Louis Dreyfus
Citrus, an international juice processing company, under a long-
term steam supply agreement in order to maintain qualifying
facility status. ICLP was formed to construct, own, and operate
this coal facility, which began commercial operation in December
1995.
ICLP is 100% indirectly owned by the private equity firm, EIF. In
September 2007, funds managed by EIF acquired an 80% equity
interest in ICLP, and in June 2011 acquired the remaining 20%
interest from Goldman Sachs Group, Inc. and its wholly owned
subsidiary Cogentrix, Inc.
JAMESON INN: Seeks to Employ AlixPartners as Financial Advisor
--------------------------------------------------------------
JER/Jameson Mezz Borrower II LLC, et al., seek permission from the
U.S. Bankruptcy Court for the District of Delaware to employ
AlixPartners, LLP, to provide financial advisory and consulting
services. Primarily, the Debtors require the services of
AlixPartners to assist them in preparing their schedules of assets
and liabilities and statements of financial affairs.
The standard hourly rates charged by AlixPartners professionals
anticipated to be assigned to the case are:
Managing Directors $815 - $970
Directors $620 - $760
Vice Presidents $455 - $555
Associates $305 - $405
Analysts $270 - $300
Paraprofessionals $205 - $225
In addition, AlixPartners will seek reimbursement for reasonable
and necessary out-of-pocket expenses.
To the best of the Debtors' knowledge, AlixPartners is a
"disinterested person" within the meaning of Section 101(14) of
the Bankruptcy Code.
About Jameson Inn
Founded in 1987, Jameson is a chain of 103 small, budget hotels
operating under the Jameson brand in the Southeast and Midwest.
The Jameson properties are operated under the names Jameson Inn
and Signature Inn. The hotels are based in Smyrna, Georgia.
The chain was taken private in a 2006 buyout by JER Partners, a
unit of real-estate investor J.E. Robert Cos. JER then put
$330 million of debt on the chain to finance the buyout. At the
top of the list is a $175 million mortgage loan with Wells Fargo
Bank NA serving as special servicer. There are four tranches of
mezzanine loans, each for $40 million. The collateral for each of
the Mezz Loans is the equity interest in the entity or entities
immediately below the borrower of each Mezz Loan. All of the
mezzanine loans matured in August.
JER/Jameson NC Properties LP and JER/Jameson Properties LLC are
borrowers under the loan with Wells Fargo. The mortgage loan is
secured by mortgages on hotel properties. The first set of
foreclosure sales were set for Nov. 1, 2011. The Mortgage
Borrowers have not sought bankruptcy protection.
Colony Capital affiliates, CDCF JIH Funding LLC and ColFin JIH
Funding LLC, hold the first and second mezzanine loans. The First
Mezz Loan is secured by a pledge of JER/Jameson Mezz Borrower I
LLC's 100% interest in the Mortgage Borrowers.
Prior to the maturity default, the Colony JIH Lenders purchased
the Second Mezz Loan from a previous holder. The Second Mezz Loan
is secured by a pledge of JER/Jameson Mezz Borrower II's 100%
membership interest in the First Mezz Borrower.
Gramercy Warehouse Funding I LLC and Gramercy Loan Services LLC
hold a controlling participation interest in the Third Mezz and
Fourth Mezz Loans. JER Investors Trust Inc. holds the remaining
participation interests in the Third Mezz and Fourth Mezz Loans.
JER/Jameson Holdco LLC, an affiliate of the Mortgage Borrowers,
owns the 100% equity interest in the Fourth Mezz Borrower.
Gramercy took over its mezzanine borrower in August.
JER/Jameson Mezz Borrower II LLC filed for Chapter 11 bankruptcy
(Bankr. D. Del. Case No. 11-13338) on Oct. 18, 2011, to prevent
foreclosure by Colony. The Chapter 11 filing had the effect of
preventing Colony from wiping out Gramercy's interest.
Seven days later, JER/Jameson Mezz Borrower I LLC filed for
bankruptcy (Bankr. D. Del. Case No. 11-13392) on Oct. 25, 2011.
Judge Mary F. Walrath presides over the case. Laura Davis Jones,
Esq., at Pachulski Stang Ziehl & Jones LLP, serves as counsel to
both Debtors. Epiq Bankruptcy Solutions, LLC, serves as its
noticing, claims and balloting agent, and Houlihan Lokey
Howard & Zukin Capital Inc. serves as its investment banker.
Each of the Debtors estimated $100 million to $500 million in
assets and $10 million to $50 million in debts. The petitions
were signed by James L. Gregory, vice president.
Colony specializes in real estate and has roughly $34 billion of
assets under management. Colony is represented in the case by
Pauline K. Morgan, Esq., John T. Dorsey, Esq., Margaret Whiteman
Greecher, Esq., and Patrick A. Jackson, Esq., at Young Conaway
Stargatt & Taylor LLP; and Lindsee P. Granfield, Esq., Sean A.
O'Neil, Esq., and Jane VanLare, Esq., at Cleary Gottlieb Steen &
Hamilton LLP.
JAPAN AIRLINES: Senior Executive to Succeed Onishi as President
---------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that Japan Airlines Co.
appointed a new president to lead the company through its final
year of a three-year, court-led restructuring process in what will
be the next chapter in the firm's protection filing by a non-
financial company.
About Japan Airlines
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated
companies. JAL International Co. Ltd. is a wholly owned
operating subsidiary of Japan Airlines Corporation.
Japan Airlines Corporation, Japan Airlines International Co.,
Ltd. and JAL Capital Co., Ltd., on Jan. 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization Jan. 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in New
York (Bankr. S.D.N.Y. Case No. 10-10198). The Company estimated
debts at $28 billion.
In November 2010, Japan Airlines reached a basic agreement with
its major creditor banks on new loans of JPY284.9 billion. The
airline's rehabilitation plan was approved by the Tokyo District
Court at the end of the month.
KBK OPERATIONS: To Keep Arby's Outlet Closed as Talks Continue
--------------------------------------------------------------
Cathy Jett at fredericksburg.com reported that KBK Operations LLC
has said negotiations regarding its Arby's restaurants are
continuing, and no decision about reopening will be made until
talks have concluded. KBK temporarily closed an Arby's outlet
near Dahlgren in Maryland in December.
KBK is facing a lawsuit from Arby's Restaurant Group Inc. filed
Dec. 16 with the U.S. District Court in Greenbelt, Md. The
lawsuit alleges the franchisor had informed KBK on Sept. 29 that
KBK had defaulted under Arby's franchise agreements because it had
failed to pay nearly $472,640 in royalties and dues for its 10
locations. Those outlets employ 160 people.
The report relates KBK blamed its woes on the economy. It filed
for Chapter 11 bankruptcy on Oct. 10, 2011, the deadline for
payment to Arby's Restaurant Group. The franchisor, in a letter
sent to KBK president and CEO Wade Kingsley, has said that if the
money was not paid by then Arby's had the right to terminate the
franchise agreements and take legal action. It notified Mr.
Kingsley on Oct. 11 that the agreement was terminated.
In its lawsuit, the franchisor seeks a temporary restraining order
against KBK for such things as breach of contract and trademark
infringement.
Based in Charlotte Hall, Maryland, KBK Operations LLC filed for
Chapter 11 protection (Bankr. D. Md. Case No. 11-30136) on
Oct. 10, 2011. Judge Wendelin I. Lipp presides over the case.
Steven H. Greenfeld, Esq., at Cohen, Baldinger & Greenfeld, LLC,
represents the Debtor. The Debtor estimated assets of less than
$50,000, and debts of between $1 million and $10 million.
KERZNER INT'L: Brookfield Asset Ends Deal to Take Over Resort
-------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that Brookfield Asset
Management Inc. has canceled a deal to take control of the massive
Atlantis resort in the Bahamas and two other resorts from Kerzner
International Holdings Ltd. after other creditors obtained a court
ruling delaying the deal.
As reported in the Troubled Company Reporter on Dec. 9, 2011, Dow
Jones' Daily Bankruptcy Review reports that five years after
resort operator Kerzner International Holdings Ltd. was taken
private in a $4 billion buyout by a group of big-name investors --
including Goldman Sachs Group Inc.'s Whitehall funds and Colony
Capital LLC -- the deal has turned into a bad bet.
Kerzner International is the owner of several luxury getaways.
The Atlantis resort in the Bahamas, Kerzner's flagship property,
is one of the most popular resorts in North America.
KLN STEEL: Wins Interim Court Order to Use Cash
-----------------------------------------------
Patrick Danner at My San Antonio reports that KLN Steel Products
Co. LLC and its lender have not been able to reach a final
agreement that would allow the San Antonio furniture maker to use
its cash to pay expenses during its reorganization.
According to the report, U.S. Bankruptcy Judge Craig Gargotta has
issued a third interim order that allows KLN to use its cash to
operate for another month. But Judge Gargotta vowed to resolve
the issue himself if KLN and lender Banco Popular North America
can't settle their differences by the next court hearing, Feb. 13,
2012.
The report says KLN has indicated in court documents that without
access to the cash, which Banco Popular holds liens on, the
company would have to shut down. KLN and two sister companies
filed for Chapter 11 in November after Banco Popular, which is
owed more than $27 million, refused to fund payroll.
The report relates that, during a court hearing last week, KLN
lawyer Patricia Tomasco said the company has built up $3 million
since the bankruptcy filing. "The debtor is really sitting on a
lot of cash," Ms. Tomasco said. As a result, she said, KLN agreed
to pay Banco Popular $1 million.
The report says Ron Satija, a lawyer for the unsecured creditors'
committee, expressed concerns about whether the $1 million was
"prudent and in the interest of the unsecured creditors." But the
payment was approved by Ms. Gargotta as part of the interim order
allowing KLN to continue using cash collateral.
The report notes that Mr. Satija told the judge that the unsecured
creditors' committee is doing its own investigation of KLN. He
noted that KLN has indicated in financials that it has $5.6
million in uncollected accounts receivables.
The report says Ms. Tomasco said KLN has been filing lawsuits to
collect money still owed to the company. KLN also is making sure
that customers don't cancel orders
About KLN Steel Products
KLN Steel Products Company LLC, Dehler Manufacturing Co. Inc., and
Furniture by Thurston manufacture and market high quality
furniture for multi-person housing facilities and packaged
services for federal government offices and dormitory facilities.
They have two manufacturing facilities. One is in San Antonio,
Texas, which is consolidated and designed to accommodate high
volume fabrication of standard and semi-custom steel furniture and
casegoods of high quality for colleges and universities, military
quarters, and job corps centers, or wherever high quality, long
life, low maintenance furniture is essential. The facility
includes a manufacturing facility of more than 170,000 square feet
capable of producing substantial projects on a timely basis. The
second facility is located in Grass Valley, California, with more
than 61,000 square feet dedicated to the manufacturing of wood
furniture for military and university housing.
KLN Steel filed for Chapter 11 bankruptcy (Bankr. W.D. Tex. Case
No. 11-12855) on Nov. 22, 2011. Dehler (Case No. 11-12856) and
Furniture by Thurston (Case No. 11-12858) filed on the same day.
Judge Craig A. Gargotta oversees the case. Patricia Baron
Tomasco, Esq., at Jackson Walker LLP, serves as the Debtors'
counsel. Conway MacKenzie, Inc., serves as financial advisor.
Each of the Debtors estimated assets and debts of $10 million to
$50 million.
San Antonio, Texas-based 4200 Pan Am LLC filed for Chapter 11
bankruptcy (Bankr. W.D. Tex. Case No. 11-13154) on Dec. 29, 2011.
Judge Gargotta oversees the case, taking over from Judge H.
Christopher Mott. Patricia Baron Tomasco, Esq., at Jackson Walker
LLP, serves as 4200 Pan Am's counsel. In its petition, the Debtor
listed $10 million to $50 million in assets and debts. The
petition was signed by Edward J. Herman, manager.
4200 Pan Am is seeking joint administration of its case with those
of affiliates Dehler, Furniture By Thurston, and KLN.
KOREA TECHNOLOGY: Judge Gives Final Approval for $5MM DIP Loan
--------------------------------------------------------------
American Bankruptcy Institute reports that bankruptcy Judge R.
Kimball Mosier has granted Korea Technology Industry America Inc.
access to $5 million in postpetition financing so the company can
fund the opening of its Vernal, Utah, oil and tar sands plant.
Korea Technology Industry America, Inc., is a subsidiary of
Seoul-based Korea Technology Industry Co. that tried to squeeze
crude oil from Utah's sandy ridges. Korea Technology Industry
America, Uintah Basin Resources LLC, and Crown Asphalt Ridge
L.L.C., filed separate Chapter 11 bankruptcy petitions (Bankr. D.
Utah Case Nos. 11-32259, 11-32261, and 11-32264) on Aug. 22,
2011. The cases are jointly administered under KTIA's case.
Steven J. McCardell, Esq., and Kenneth L. Cannon II, Esq., at
Durham Jones & Pinegar, P.C., in Salt Lake City, serve as the
Debtors' counsel. The Debtors tapped DBH Consulting, LLC, as
their accountant. The Debtors disclosed US$35,246,360 in assets
and US$38,751,528 in debts.
Mark D. Hashimoto, in his capacity as examiner in the Debtors
cases retained George Hofmann and the firm of Parsons Kinghorn
Harris, P.C., as his counsel, and Piercy Bowler Taylor & Kern as
his accountants and financial advisors.
Richard A. Wieland, the United States Trustee for Region 19, has
appointed three members to the Official Committee of Unsecured
Creditors.
LA VILLITA: Court Confirms Full-Payment Reorganization Plan
-----------------------------------------------------------
On Dec. 15, 2011, U.S. Chief Bankruptcy Judge Ronald B. King
confirmed La Villita Motor Inns, J.V.'s Second Amended Plan of
Reorganization, as submitted Dec. 13, 2011. The Court had
approved the Disclosure Statement for the First Amended Plan on
Nov. 18, 2011.
The Plan provides for the implementation of a global settlement
among the Debtor, the Lender and the Guarantor providing for,
among other things, the restructuring of the obligations owing to
the Lender pursuant to the Lender Loan Documents (including the
Loan Modification Agreement, Deed in Lieu of Foreclosure,
Guaranty, Escrow Agreement, Closing Instruction Letter and
Subordination Agreement provided in the Plan Supplement) and the
incurrence of the Subordinated Loan (with Subordinated Creditor
Westgrove Properties Ltd.) in order to fund the obligations under
the Plan.
Classification Summary
The Plan segregates the various Claims against the Debtor and
Interests in the Debtor into 5 Classes:
Class 1. Priority Secured Tax Claims
Class 2. Lender Secured Claim
Class 3. General Unsecured Claims
Class 4. Insider Claims
Class 5. Equity Interests
Classes 2, 3 and 4 are impaired. Classes 1 and 5 are unimpaired.
On or before the Effective Date, the Fixed Rate Note to the Lender
will be amended and restated pursuant to the Loan Modification
Agreement which provides for, among other things, the bifurcation
of the loans under the Fixed Rate Note into two loan tranches --
the Tranche A Loan in the principal amount of $7,182,269,
following application of the Closing Date Principal Payment and
the Tranche B Loan in the principal amount of $1,499,976.
The Tranche A Loan will be paid $48,629 monthly up to and
including the month immediately preceding the Jan. 1, 2015
Maturity Date. Any other amounts owing under the Tranche A Loan
will be paid in accordance with the terms of the Note.
Notwithstanding the foregoing, all outstanding principal, interest
and other amounts under the Tranche A Loan will be due and payable
on the Maturity Date.
The outstanding principal balance of the Tranche B Loan, interest
and all other amounts due under the Tranchr B Loan will be due and
payable on the Maturity Date.
In the event all outstanding amounts under the Tranche A Loan are
paid in full on or before the Maturity Date, then the outstanding
amounts under the Tranche B Loan will be deemed discharged and
released.
General Unsecured Claims will be paid in full, with simple
interest of 7.5% p.a., over a period of three years from the
Effective Date.
Class 4 Insider Claims, constituted by accrued management fees in
the amount of $3,014,088, will only be paid after payment in full
of the Class 2 Lender Claim and Class 3 General Unsecured Claims
and will be specifically subordinated to payment in full of the
obligations owed to Lender under the Loan Modification Agreement.
Equity Interests will retain their Equity Interests in the Debtor
as they existed on the Petition Date.
A copy of the Second Amended Plan of Reorganization is available
for free at http://bankrupt.com/misc/lavillita.doc226.pdf
About La Villita Motor Inns JV
San Antonio, Texas-based La Villita Motor Inns JV is a joint
venture, formed on or about April 14, 1980, that owns and operates
a hotel located at 100 La Villita in San Antonio, Texas, known as
the Riverwalk Plaza Hotel. It filed for Chapter 11 bankruptcy
protection (Bankr. Case No. 10-54864) on Dec. 17, 2010. The
Debtor estimated assets at $10 million to $50 million and debts at
$1 million to $10 million.
The Debtor's original bankruptcy counsel was Oppenheimer, Blend,
Harrison & Tate, Inc. that subsequently merged with Strasburger &
Price, L.L.P. ORIX filed a motion seeking to disqualify Debtor's
counsel following the merger and the Bankruptcy Court granted
ORIX's motion by order entered on Sept. 29, 2011. Hohmann, Taube
& Summers, L.L.P., in Austin, Texas, replaced OBHT as counsel.
LANDINGS INVESTMENT: Wants to Sell Golf Course
----------------------------------------------
Lorra Lynch-Jones at 13wmaz.com reports that the Landings
Investment Group said it wants to sell a golf course.
According to the report, Mayor Chuck Shaheen and a few other city
leaders heard on Jan. 11, 2012, from the owners of the Landings
Golf Club about buying the course. The owners want to sell it
after filing for bankruptcy last month, the report notes.
The report says Landings Investment, including CEO Ed Wolfe and
Eddie Wiggins, came to Warner Robins City Hall to meet with the
mayor and members of the Warner Robins Building Authority, which
manages the International City Golf Course owned by the city of
Warner Robins.
The report relates that Mr. Wolfe said the lack of support, plus
the poor economy, led to Landings' financial downfall. Mr. Wolfe
added that the Company has 120 days to put forth a reorganization
plan to the court.
The report notes the mayor took the idea to council at a
pre-council meeting the night of Jan. 12, 2012.
About Landings Investment Group
Landings Investment Group LLC, in Warner Robins, Georgia, filed
for Chapter 11 bankruptcy (Bankr. M.D. Ga. Case No. 11-53852) on
Dec. 5, 2011. Wesley J. Boyer, Esq., at Katz, Flatau, Popson and
Boyer LLP, serves as the Debtor's counsel. In its petition, the
Debtor estimated $1 million to $10 million in assets and debts.
The petition was signed by Edwin L. Wolfe.
LEE ENTERPRISES: Operating Revenue Drops 3.9% to $199.6MM in Q1
---------------------------------------------------------------
Lee Enterprises, Incorporated, reported its first fiscal quarter
ended Dec. 25, 2011 earnings totaled 32 cents per diluted common
share, compared with 42 cents a year ago. Excluding refinancing
costs and other unusual matters, adjusted earnings per diluted
common share were 38 cents, compared with 32 cents a year ago.
Mary Junck, chairman and chief executive officer, said:
"Advertising sales in the quarter continued largely in line with
recent trends and reflected our expectations, given the still-
uneven economy. Comparisons with a year ago should take into
account that our December 2010 quarter was our strongest of the
year, with revenue then down only 1.0% to prior. We continue to
expect revenue trends to improve slowly in 2012, as we press
forward with more digital and print initiatives. Meanwhile, we
expect to complete our Chapter 11 refinancing process within a few
weeks. Our refinancing agreements, along with our continued strong
cash flow, will provide a solid financial footing as we continue
reshaping Lee for future growth."
Operating revenue for the quarter totaled $199.6 million, a
decline of 3.9% compared with a year ago. Combined print and
digital advertising revenue decreased 6.1% to $142.5 million, with
retail advertising down 5.4%, classified down 9.7% and national up
1.4%. Combined print and digital classified employment revenue
decreased 0.3%, while automotive decreased 4.1%, real estate
decreased 17.9% and other classified decreased 15.2%. Digital
advertising revenue on a stand-alone basis increased 10.4% to
$16.2 million. Print revenue on a stand-alone basis decreased
7.9%.
A full text copy of the first quarter results is available free at
http://is.gd/qjojbj
About Lee Enterprises
Lee Enterprises, Inc., headquartered in Davenport, Iowa, publishes
the St. Louis Post Dispatch and the Arizona Daily Star along with
more than 40 other daily newspapers and about 300 weekly
newspapers and specialty publications in 23 states. Revenue for
the 12 months ended December 2010 was $780 million. The Company
has 6,200 employees, with 4,650 working full-time.
Lee Enterprises and certain of its affiliates filed for chapter 11
(Bankr. D. Del. Lead Case No. 11-13918) on Dec. 12, 2011, with a
prepackaged plan of reorganization. The Debtor selected Sidley
Austin LLP and Young Conaway Stargatt & Taylor LLP as counsel; and
The Garden City Group Inc. as Claims, Noticing and Balloting
Agent. The Debtor disclosed total assets of $1.15 billion and
total liabilities of $1.25 billion at Sept. 25, 2011.
The Plan has been proposed to, among other things, amend and
extend the maturity of the Debtors' prepetition credit facilities
and the so-called PD LLC Notes as part of an overall effort to
restructure the Debtors' balance sheet. The Plan was proposed
prepetition and obtained the support of 100% of holders of claims
related to the Prepetition Credit Agreement, totaling roughly
$827.9 million, and 100% of the holders of PD LLC Notes claims,
totaling roughly $133.8 million. Priority Non-Tax Claims, Other
Secured Claims, The Herald Claim, General Unsecured Claims, and
Intercompany Claims against, as well as Interests in, all of the
Debtors will not be impaired by the Plan. A hearing is set for
Jan. 23 at 2:00 p.m. to consider confirmation of the prepack plan.
Certain Holders of Prepetition Credit Agreement Claims, Goldman
Sachs Lending Partners LLC, Mutual Quest Fund, Monarch Master
Funding Ltd, Mudrick Distressed Opportunity Fund Global, LP and
Blackwell Partners, LLC have committed to acquire up to a maximum
amount of $166.25 million of loans under a New Second Lien Term
Loan Facility. This commitment also includes the potential
payment of up to $10 million as backstop cash to Reorganized Lee
Enterprises to acquire the loans.
Deutsche Bank Trust Company Americas, as DIP Agent and Prepetition
Agent, is represented in the Debtors' cases by Sandeep "Sandy"
Qusba, Esq., and Terry Sanders, Esq., at Simpson Thacher &
Bartlett LLP. The Initial Backstop Lenders are represented by
Matthew S. Barr, Esq., and Brian Kinney, Esq., at Milbank, Tweed,
Hadley & McCloy LLP.
LEE ENTERPRISES: Court Approves Sidley Austin as Bankr. Counsel
---------------------------------------------------------------
Lee Enterprises Inc. sought and obtained Court authority to employ
Sidley Austin LLP as its general reorganization and bankruptcy
counsel.
Sidley Austin acted as the Debtors' principal outside
restructuring counsel and in that capacity advised the Debtors
with respect to the formulation of the restructuring of their
long-term debt, including the negotiation, preparation or revision
of all term sheets and implementing documents on the Debtors'
behalf. The firm also advised the Debtors in the preparation of
the prepackaged restructuring plan and the solicitation of
creditor votes.
The firm received from the Debtors $3.125 million as payment for
its pre-bankruptcy services and $52,387 as reimbursement of
expenses. The firm also received $2 million as retainer in
November.
Sidley Austin's hourly rates range from $100 to $975 per hour.
The lawyers who will primarily be involved in the case are Larry
J. Nyhan, Esq., Kenneth P. Kansa, Esq., Bojan Guzina, Esq., and
Steven W. Robinson in Sidley Austin's Chicago office.
Mr. Kansa, Esq., a partner at Sidley Austin, attests that his firm
does not have an interest materially adverse to the interest of
any of the Debtors' estates or of any class of creditors or equity
security holders, and is a "disinterested person" within the
meaning of Sec. 101(14) of the Bankruptcy Code.
About Lee Enterprises
Lee Enterprises, Inc., headquartered in Davenport, Iowa, publishes
the St. Louis Post Dispatch and the Arizona Daily Star along with
more than 40 other daily newspapers and about 300 weekly
newspapers and specialty publications in 23 states. Revenue for
the 12 months ended December 2010 was $780 million. The Company
has 6,200 employees, with 4,650 working full-time.
Lee Enterprises and certain of its affiliates filed for chapter 11
(Bankr. D. Del. Lead Case No. 11-13918) on Dec. 12, 2011, with a
prepackaged plan of reorganization. The Debtor selected Young
Conaway Stargatt & Taylor LLP as co-counsel; The Blackstone Group
as Financial and Asset Management Consultant; and The Garden City
Group Inc. as Claims, Noticing and Balloting Agent. The Debtor
disclosed total assets of $1.15 billion and total liabilities of
$1.25 billion at Sept. 25, 2011.
The Plan has been proposed to, among other things, amend and
extend the maturity of the Debtors' prepetition credit facilities
and the so-called PD LLC Notes as part of an overall effort to
restructure the Debtors' balance sheet. The Plan was proposed
prepetition and obtained the support of 100% of holders of claims
related to the Prepetition Credit Agreement, totaling roughly
$827.9 million, and 100% of the holders of PD LLC Notes claims,
totaling roughly $133.8 million. Priority Non-Tax Claims, Other
Secured Claims, The Herald Claim, General Unsecured Claims, and
Intercompany Claims against, as well as Interests in, all of the
Debtors will not be impaired by the Plan. A hearing is set for
Jan. 23 at 2:00 p.m. to consider confirmation of the prepack plan.
Certain Holders of Prepetition Credit Agreement Claims, Goldman
Sachs Lending Partners LLC, Mutual Quest Fund, Monarch Master
Funding Ltd, Mudrick Distressed Opportunity Fund Global, LP and
Blackwell Partners, LLC have committed to acquire up to a maximum
amount of $166.25 million of loans under a New Second Lien Term
Loan Facility. This commitment also includes the potential
payment of up to $10 million as backstop cash to Reorganized Lee
Enterprises to acquire the loans.
Deutsche Bank Trust Company Americas, as DIP Agent and Prepetition
Agent, is represented in the Debtors' cases by Sandeep "Sandy"
Qusba, Esq., and Terry Sanders, Esq., at Simpson Thacher &
Bartlett LLP. The Initial Backstop Lenders are represented by
Matthew S. Barr, Esq., and Brian Kinney, Esq., at Milbank, Tweed,
Hadley & McCloy LLP.
LEE ENTERPRISES: Can Hire Young Conaway as Co-Counsel
-----------------------------------------------------
The Bankruptcy Court has granted Lee Enterprises Inc. permission
to employ lawyers at Young Conaway Stargatt & Taylor LLP as
bankruptcy co-counsel. The personnel who will primarily be
involved in the case and their hourly rates are:
Professional Hourly Rate
------------ -----------
Robert S. Brady, Esq., partner $675
Edwin J. Harron, Esq., partner $625
Edmon L. Morton, Esq., partner $550
Donald J. Bowman, Jr., associate $385
Justin P. Duda, associate $290
Michelle Smith, paralegal $165
Young Conaway was first retained by the Debtors with respect to
restructuring efforts in early 2009. That engagement concluded in
March 2009. The firm was again retained in August 2011. In
October, it received a $50,000 retainer from Lee.
Robert S. Brady, Esq., a partner at the firm, attests that his
firm does not have an interest materially adverse to the interest
of any of the Debtors' estates or of any class of creditors or
equity security holders, and is a "disinterested person" within
the meaning of Sec. 101(14) of the Bankruptcy Code.
About Lee Enterprises
Lee Enterprises, Inc., headquartered in Davenport, Iowa, publishes
the St. Louis Post Dispatch and the Arizona Daily Star along with
more than 40 other daily newspapers and about 300 weekly
newspapers and specialty publications in 23 states. Revenue for
the 12 months ended December 2010 was $780 million. The Company
has 6,200 employees, with 4,650 working full-time.
Lee Enterprises and certain of its affiliates filed for chapter 11
(Bankr. D. Del. Lead Case No. 11-13918) on Dec. 12, 2011, with a
prepackaged plan of reorganization. The Debtor selected Sidley
Austin LLP as counsel; The Blackstone Group as Financial and Asset
Management Consultant; and The Garden City Group Inc. as Claims,
Noticing and Balloting Agent. The Debtor disclosed total assets
of $1.15 billion and total liabilities of $1.25 billion at Sept.
25, 2011.
The Plan has been proposed to, among other things, amend and
extend the maturity of the Debtors' prepetition credit facilities
and the so-called PD LLC Notes as part of an overall effort to
restructure the Debtors' balance sheet. The Plan was proposed
prepetition and obtained the support of 100% of holders of claims
related to the Prepetition Credit Agreement, totaling roughly
$827.9 million, and 100% of the holders of PD LLC Notes claims,
totaling roughly $133.8 million. Priority Non-Tax Claims, Other
Secured Claims, The Herald Claim, General Unsecured Claims, and
Intercompany Claims against, as well as Interests in, all of the
Debtors will not be impaired by the Plan. A hearing is set for
Jan. 23 at 2:00 p.m. to consider confirmation of the prepack plan.
Certain Holders of Prepetition Credit Agreement Claims, Goldman
Sachs Lending Partners LLC, Mutual Quest Fund, Monarch Master
Funding Ltd, Mudrick Distressed Opportunity Fund Global, LP and
Blackwell Partners, LLC have committed to acquire up to a maximum
amount of $166.25 million of loans under a New Second Lien Term
Loan Facility. This commitment also includes the potential
payment of up to $10 million as backstop cash to Reorganized Lee
Enterprises to acquire the loans.
Deutsche Bank Trust Company Americas, as DIP Agent and Prepetition
Agent, is represented in the Debtors' cases by Sandeep "Sandy"
Qusba, Esq., and Terry Sanders, Esq., at Simpson Thacher &
Bartlett LLP. The Initial Backstop Lenders are represented by
Matthew S. Barr, Esq., and Brian Kinney, Esq., at Milbank, Tweed,
Hadley & McCloy LLP.
LEE ENTERPRISES: Court Approves Blackstone as Financial Advisors
----------------------------------------------------------------
Lee Enterprises, Inc., won Bankruptcy Court permission to employ
Blackstone Advisory Partners L.P. as its financial advisors. The
firm will be paid according to this fee structure:
-- a $175,000 bi-monthly fee. The first postpetition payment
will be due in February 2012;
-- a $6 million restructuring fee, payable in cash, however,
in the event the matrity of the debtors' debt obligations
is not extended by at least 24 months, this fee will be
reduced to $3 million. The Debtors' prepack plan
currently contemplates an extension of the maturity date
to over three years;
-- an M&A fee in the event Lee enters into a material merger
and acquisition transaction as part of the restructuring,
and the fee will be based on Blackstone's role in the
deal;
-- a capital raise fee based on a percentage of gross
proceeds raised in any private financing, a portion of
which will be credited against any restructuring fee; and
-- reimbursement of expenses and indemnification.
Flip Huffard, senior managing director and head of Blackstone's
Restructuring and Reorganization Group, attests that his firm is a
"disinterested person" within the meaning of Sec. 101(14) of the
Bankruptcy Code. He may be reached at:
THE BLACKSTONE GROUP
345 Park Avenue
New York, NY 10154
E-mail: huffard@blackstone.com
About Lee Enterprises
Lee Enterprises, Inc., headquartered in Davenport, Iowa, publishes
the St. Louis Post Dispatch and the Arizona Daily Star along with
more than 40 other daily newspapers and about 300 weekly
newspapers and specialty publications in 23 states. Revenue for
the 12 months ended December 2010 was $780 million. The Company
has 6,200 employees, with 4,650 working full-time.
Lee Enterprises and certain of its affiliates filed for chapter 11
(Bankr. D. Del. Lead Case No. 11-13918) on Dec. 12, 2011, with a
prepackaged plan of reorganization. The Debtor selected Sidley
Austin LLP and Young Conaway Stargatt & Taylor LLP as counsel; The
Blackstone Group as Financial and Asset Management Consultant; and
The Garden City Group Inc. as Claims, Noticing and Balloting
Agent. The Debtor disclosed total assets of $1.15 billion and
total liabilities of $1.25 billion at Sept. 25, 2011.
The Plan has been proposed to, among other things, amend and
extend the maturity of the Debtors' prepetition credit facilities
and the so-called PD LLC Notes as part of an overall effort to
restructure the Debtors' balance sheet. The Plan was proposed
prepetition and obtained the support of 100% of holders of claims
related to the Prepetition Credit Agreement, totaling roughly
$827.9 million, and 100% of the holders of PD LLC Notes claims,
totaling roughly $133.8 million. Priority Non-Tax Claims, Other
Secured Claims, The Herald Claim, General Unsecured Claims, and
Intercompany Claims against, as well as Interests in, all of the
Debtors will not be impaired by the Plan. A hearing is set for
Jan. 23 at 2:00 p.m. to consider confirmation of the prepack plan.
Certain Holders of Prepetition Credit Agreement Claims, Goldman
Sachs Lending Partners LLC, Mutual Quest Fund, Monarch Master
Funding Ltd, Mudrick Distressed Opportunity Fund Global, LP and
Blackwell Partners, LLC have committed to acquire up to a maximum
amount of $166.25 million of loans under a New Second Lien Term
Loan Facility. This commitment also includes the potential
payment of up to $10 million as backstop cash to Reorganized Lee
Enterprises to acquire the loans.
Deutsche Bank Trust Company Americas, as DIP Agent and Prepetition
Agent, is represented in the Debtors' cases by Sandeep "Sandy"
Qusba, Esq., and Terry Sanders, Esq., at Simpson Thacher &
Bartlett LLP. The Initial Backstop Lenders are represented by
Matthew S. Barr, Esq., and Brian Kinney, Esq., at Milbank, Tweed,
Hadley & McCloy LLP.
LEE ENTERPRISES: Taps Lane & Waterman as General Outside Counsel
----------------------------------------------------------------
Lee Enterprises Inc. won Court permission to employ Lane &
Waterman LLP as general outside counsel. The firm has served as
Lee's general outside counsel for more than 65 years, and the
Debtors want to continue that engagement. Lane & Waterman will
represent the Debtors in corporate, litigation, real estate,
employment, intellectual property, SEC matters and others.
Lane & Waterman will charge the Debtors a flat fee of $35,000 per
month. The firm will also charge the Debtors on an hourly basis
for legal services related to the restructuring cases and the
pending class action litigation in California state court. The
firm's professionals charge $205 to $310 per hour while
paraprofessionals charge $100 to $110 per hour.
C. Dana Waterman III, Esq. -- dwaterman@l-wlaw.com -- the firm's
partner, disclosed that during the one-year period pre-bankruptcy,
the firm received $361,000 from the Debtors. Mr. Waterman attests
that Lane & Waterman does not have an interest materially adverse
to the interest of any of the Debtors' estates or of any class of
creditors or equity security holders, and is a "disinterested
person" within the meaning of Sec. 101(14) of the Bankruptcy Code.
About Lee Enterprises
Lee Enterprises, Inc., headquartered in Davenport, Iowa, publishes
the St. Louis Post Dispatch and the Arizona Daily Star along with
more than 40 other daily newspapers and about 300 weekly
newspapers and specialty publications in 23 states. Revenue for
the 12 months ended December 2010 was $780 million. The Company
has 6,200 employees, with 4,650 working full-time.
Lee Enterprises and certain of its affiliates filed for chapter 11
(Bankr. D. Del. Lead Case No. 11-13918) on Dec. 12, 2011, with a
prepackaged plan of reorganization. The Debtor selected Sidley
Austin LLP and Young Conaway Stargatt & Taylor LLP as counsel; The
Blackstone Group as financial and asset management consultant; and
The Garden City Group Inc. as claims, noticing and balloting
agent. The Debtor disclosed total assets of $1.15 billion and
total liabilities of $1.25 billion at Sept. 25, 2011.
The Plan has been proposed to, among other things, amend and
extend the maturity of the Debtors' prepetition credit facilities
and the so-called PD LLC Notes as part of an overall effort to
restructure the Debtors' balance sheet. The Plan was proposed
prepetition and obtained the support of 100% of holders of claims
related to the Prepetition Credit Agreement, totaling roughly
$827.9 million, and 100% of the holders of PD LLC Notes claims,
totaling roughly $133.8 million. Priority Non-Tax Claims, Other
Secured Claims, The Herald Claim, General Unsecured Claims, and
Intercompany Claims against, as well as Interests in, all of the
Debtors will not be impaired by the Plan. A hearing is set for
Jan. 23 at 2:00 p.m. to consider confirmation of the prepack plan.
Certain Holders of Prepetition Credit Agreement Claims, Goldman
Sachs Lending Partners LLC, Mutual Quest Fund, Monarch Master
Funding Ltd, Mudrick Distressed Opportunity Fund Global, LP and
Blackwell Partners, LLC have committed to acquire up to a maximum
amount of $166.25 million of loans under a New Second Lien Term
Loan Facility. This commitment also includes the potential
payment of up to $10 million as backstop cash to Reorganized Lee
Enterprises to acquire the loans.
Deutsche Bank Trust Company Americas, as DIP Agent and Prepetition
Agent, is represented in the Debtors' cases by Sandeep "Sandy"
Qusba, Esq., and Terry Sanders, Esq., at Simpson Thacher &
Bartlett LLP. The Initial Backstop Lenders are represented by
Matthew S. Barr, Esq., and Brian Kinney, Esq., at Milbank, Tweed,
Hadley & McCloy LLP.
M & M DEVELOPMENT: Sells Lakewood Shopping Center for $1.35-Mil.
----------------------------------------------------------------
Michael Braga at Herald-Tribune reports that M & M Development LLC
has sold a 21,500-square-foot commercial shopping center at 9114
Town Center Parkway in Lakewood Ranch, Florida, to Courtyards of
Market Square LLC for $1.35 million.
According to the report, M & M bought the land for $901,565 in
June 2002 and borrowed $1.95 million from First Commercial Bank of
Tampa bay to build the shopping center that currently houses
Goodwill, A.J. Nail Salon, Five Star Pet Salon and a Quiznos.
The report says the Company's most recent financial report states
that it pulled in $6,811 in rental income in December and paid out
$18,124 in insurance, legal fees, taxes and other expenses.
Tampa, Florida-based M & M Development LLC is located in 1902
South MacDill Avenue. The Company filed for Chapter 11 protection
(Bankr. M.D. Fla. Case No. 11-06186) on March 31, 2011. Richard
J. McIntyre, Esq., at McIntyre, Panzarella, Thanasides & Eleff,
represents the Debtor. The Debtor listed $3.5 million in assets
and $1.7 million in debts.
MAKENA GREAT: Has Interim OK to Use Wells Fargo Cash Collateral
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
has granted The Makena Great American Anza Company, LLC, interim
authorization to use cash collateral of Wells Fargo Bank, N.A.,
and to pay critical expenses pursuant to a Budget. In addition to
the items listed in the Budget, the Debtor and the Receiver are
authorized to pay a $4,000 start-up management fee to Storage Etc.
Property Management, LLC, pursuant to Section 6.1 of the Property
Management Agreement.
As adequate protection for any diminution in the value of its
prepetition collateral, the Lender is granted Replacement Liens in
the Prepetition Collateral, including, without limitation, cash
collateral. The Replacement Liens will be in addition to the
security interests of the Lender in the Prepetition Collateral and
cash collateral. In addition, the Lender is granted a
superpriority administrative claim under Section 507(b) of the
Bankruptcy Code in the full amount allowable.
A copy of the Budget is available for free at:
http://bankrupt.com/misc/makenagreat.doc21.pdf
The Makena Great American Anza Company, LLC
-- http://www.makenacapital.net/ -- is a commercial shopping
center developers in Southern California. Makena Great American
leads the way in the acquisition and development of "A-Location"
small commercial shopping centers and corner properties in
Southern California.
The Makena Great American Anza Company, LLC, filed a Chapter 11
petition (Bankr. N.D. Ill. Case No. 11-48549) on Dec. 1, 2011, in
Chicago, Illinois. Gordon E. Gouveia, Esq., at Shaw Gussis
Fishman Glantz Wolfson & Towbin, LLC, in Chicago, serve as counsel
to the Debtor. The Debtor estimated up to $50,000,000 in assets
and up to $50,000,000 in liabilities.
MANISTIQUE PAPERS: DIP Loan Maturity Extended Until March 31
------------------------------------------------------------
Manistique Papers, Inc., mBank, and the Michigan Economic
Development Corporation have entered into a stipulation approving
the Second Amendment to Debtor-In-Possession Credit Agreement
between Manistique Papers, Inc., as borrower, and mBank, as
lender, to extend certain dates.
The Parties have agreed to extend the "Termination Date" of the
Debtor's authorization to use cash collateral through and
including March 31, 2012. They have also have agreed to extend
the "Loan Maturity Date" of the DIP Financing through and
including March 31, 2012.
As previously reported, the U.S. Bankruptcy Court for the District
of Delaware authorized Manistique, on a final basis, to access
$5 million of DIP Financing from mBank.
Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware approved the Parties' stipulation.
About Manistique Papers
Manistique Papers Inc. operates a landfill in Manistique,
Michigan, whereby residuals resulting from paper production are
deposited. It owns a 125,000 ton-a-year plant making specialty
papers from recycled fiber.
Manistique Papers filed for Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 11-12562) on Aug. 12, 2011. Godfrey &
Kahn, S.C. represents the Debtor in its restructuring effort.
Morris, Nichols, Arsht & Tunnell LLP serves as its Delaware
bankruptcy co-counsel. Vector Consulting, L.L.C., serves as its
financial advisor. Baker Tilly Virchow Krause, LLC, serves as its
accountant.
The Official Committee of Unsecured Creditors appointed in the
case is represented by Lowenstein Sandler PC as lead counsel and
Ashby & Geddes, P.A., as Delaware counsel. J.H. Cohn LLC serves
as the panel's financial advisor.
Manistique Papers disclosed $19,688,471 in assets and $24,633,664
in liabilities as of the Chapter 11 filing.
MARCO INC: Grand Teton Mall Can't Terminate License Deal
--------------------------------------------------------
Bankruptcy Judge Peter J. McNiff denied the request of landlord
Grand Teton Mall LLC for relief from the automatic stay in the
bankruptcy case of retailer Marco Inc., noting that the payments
Grand Teton accepted for monthly licensing fee constituted
adequate protection payments that Grand Teton sought. "Based on
the receipt and acceptance of the adequate protection payments,
Grand Teton has not carried its burden establishing cause for
relief of the automatic stay," Judge McNiff said.
Marco Inc. operates retail clothing stores under the name of
"DeMarcos." DeMarcos has been in the Grand Teton Mall, Idaho
Falls, Idaho since 1984. On Feb. 23, 2011, Marco entered into a
License Agreement with Grand Teton which provided Marco to
continue to operate DeMarcos in the Mall. However, as the new
location was not ready for occupancy, DeMarcos was moved to a
temporary location with the intent that it would move into its
current location in April 2011. Due to delays in construction,
DeMarcos was delayed in completing its move until mid-April.
During that time, it continued to operate from its temporary
location in the mall.
A copy of Judge McNiff's Jan. 17, 2012 memorandum opinion is
available at http://is.gd/33ngsJfrom Leagle.com.
Marco filed for Chapter 11 bankruptcy (Bankr. D. Wyo. Case No. 11-
20982) on Aug. 31, 2011, listing under $1 million in both assets
and debts. A copy of its petition is available at
http://bankrupt.com/misc/wyb11-20982.pdf
MERCEDES HOMES CAROLINAS: Chapter 11 Case Dismissed
---------------------------------------------------
Susan Stabley at Charlotte Business Journal, citing court filings,
reports that Mercedes Homes exited Chapter 11 bankruptcy for its
Carolinas arm after working out terms with its lender.
Melbourne, Florida-based Mercedes Homes of the Carolinas LLC filed
for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-41131) on
Nov. 8, 2011. The report says the bankruptcy filing was made as
the debtor was struggling to negotiate a new credit agreement with
lenders.
A month later, the case was dismissed, according to the report.
Judge Erik P. Kimball oversaw the Carolinas case. Traci H.
Rollins, Esq., at Squire, Sanders & Dempsey (US) LLP, served as
the Debtor's counsel. In its petition, the Carolinas debtor
estimated $1 million to $10 million in assets and debts. The
petition was signed by Keith H. Buescher, chief executive officer.
About Mercedes Homes
Headquartered in Melbourne, Florida, Mercedes Homes Inc. --
http://www.mercedeshomes.com-- operates a homebuilding company
that was established in 1983 by Howard Buescher, a 23-year veteran
of the homebuilding business and his daughter Susan Girard. The
Company employs approximately 400 people who sell, and construct,
homes of distinctive quality in over 80 communities in Florida,
Texas and North and South Carolina.
The 2011 case is the second bankruptcy filing by Mercedes Homes of
the Carolinas. Mercedes Homes Inc. and 10 affiliates filed for
Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 09-11191) on
Jan. 26, 2009. Sean T. Cork, Esq., Tina M. Talarchyk, Esq., and
Craig D. Hansen, Esq., at Squire, Sanders & Dempsey, LLP,
represented the Debtors in the 2009 case. Richard M. Williamson
and Alvarez & Marsal North American LLC served as the Debtors'
chief restructuring officer, Odyssey Capital Group LLC as
valuation expert, Michael P. Kahn & Associates LLC as financial
advisor and Kurtzman Carson Consultants LLC as claims and noticing
agent. The Debtors' Schedules of Assets and Liabilities delivered
to the bankruptcy court in March 2009 show $309 million in assets
available to pay liabilities totalling $280 million, $224 million
of which is owed to secured creditors. M. Bryant Gatrell, Esq.,
at Moore & Van Allen PLLC, represented the agent for the Debtors'
prepetition first lien facilities. Jay M. Sakalo, Esq., at Bilzin
Sumberg Baena Price & Exelrod, LLP, represented the agent for the
Debtors' prepetition second lien facility.
METROGAS SA: U.S. Appeals Court Flips $185MM Arbitration Award
--------------------------------------------------------------
Sindhu Sundar at Bankruptcy Law360 reports that the U.S. Circuit
Court of Appeals for the D.C. Circuit on Tuesday reversed an
arbitration award of over $185 million to BG Group PLC in its
dispute with Argentina over regulatory measures it enforced during
its 2002 economic crisis that allegedly affected BG Group's
investment in now-bankrupt Argentine gas distributor MetroGas SA.
A three-judge panel agreed with Argentina's argument that the
arbitration panel had overstepped its authority by taking on the
dispute, violating a bilateral investment treaty between the
parties, according to Law360.
About MetroGas
Buenos Aires, Argentina-based MetroGAS S.A., a gas distribution
company, was incorporated on Nov. 24, 1992, and began operations
on Dec. 29, 1992, when the privatization of Gas del Estado S.E.
("GdE") (an Argentine Government-owned enterprise) was completed.
Through Executive Decree No. 2,459/92 dated Dec. 21, 1992, the
Argentine Government granted MetroGAS an exclusive license to
provide the public service of natural gas distribution in the area
of the Federal Capital and southern and eastern Greater Buenos
Aires, by operating the assets allocated to the Company by GdE for
a 35-year period from the Takeover Date (Dec. 28, 1992). This
period can be extended for an additional 10 year period under
certain conditions.
MetroGAS' controlling shareholder is Gas Argentino S.A., who holds
70% of the Common Stock of the Company. The 20%, which was
originally owned by the National Government, was offered in public
offering and the remaining 10% is under the Employee Stock
Ownership Plan ("Programa de Propiedad Participada" or "PPP").
The suspension of the original regime for tariff adjustments and
the inability to generate sufficient cash flows to pay its
financial debt obligations led the Company to file a petition for
a voluntary reorganization proceeding (concurso preventivo) in an
Argentine court on June 17, 2010.
On July 12, 2011, the Company presented a Reorganization Proposal
to all unsecured creditors with proved and admissible claims. The
offer consists of the payment of the unsecured claims, either
proved or admissible, by means of the delivery, in exchange for
and payment of such credits, of negotiable obligations payable in
14 years, in American Dollars, for 45%, measured in American
Dollars, of the unsecured claims verified or declared admissible
-- Negotiable Obligations.
The Negotiable Obligations will be amortized 1% per year from year
3 to, and including, year 13, and the remaining balance (89%) will
be amortized at the maturity of the Negotiable Obligations, in
year 14. The Negotiable Obligations will accrue interest at an
annual fixed rate of 4% and will be issued in two series under
substantially the same terms and conditions. Both will be offered
in public bids. One of the series will be offered in exchange to
those creditors with unsecured claims who hold existing negotiable
obligations with public offer, and the other series will be
offered to the other unsecured creditors who are not bondholders.
On Oct. 3, 2011, commercial creditor consents to MetroGAS' offer
were presented before the reorganization procedure court, in such
a number that represents the absolute majority of the verified
creditors.
MGM RESORTS: Issues $850 Million 8.625% Senior Notes Due 2019
-------------------------------------------------------------
MGM Resorts International, on Jan. 17, 2012, issued $850 million
in aggregate principal amount of its 8.625% Senior Notes due 2019
under an indenture dated as of Jan. 17, 2012, among the Company,
the guarantors named therein and U.S. Bank National Association,
as trustee. The Notes were sold in the United States only to
accredited investors pursuant to an exemption from the Securities
Act of 1933, as amended, and subsequently resold to qualified
institutional buyers pursuant to Rule 144A under the Securities
Act and to non-U.S. persons in accordance with Regulation S under
the Securities Act. The Notes have not been registered under the
Securities Act and may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements.
The Company intends to use the net proceeds of the offering, or
approximately $836.1 million, to repay a portion of its
indebtedness, which may include indebtedness under its senior
credit facility or outstanding debt securities.
The Notes will mature on Feb. 1, 2019. The Company will pay
interest on the Notes on February 1 and August 1 of each year,
commencing on Aug. 1, 2012. Interest on the Notes will accrue at
a rate of 8.625% per annum and be payable in cash.
The Notes are guaranteed, jointly and severally, on a senior basis
by the Company's subsidiaries, other than its excluded
subsidiaries and its Illinois subsidiary, Nevada Landing
Partnership, unless and until the Company obtains Illinois gaming
approval. The guarantors include all subsidiaries that guarantee
the Company's senior credit facility and its existing notes,
except for Nevada Landing Partnership, unless and until the
Company obtains Illinois gaming approval and, with respect to its
credit facility, MGM Grand Detroit, LLC.
The Company may redeem all or part of the Notes at a redemption
price equal to 100% of the principal amount of the Notes plus an
applicable make whole premium and accrued and unpaid interest.
The Indenture contains customary covenants that will limit the
Company's ability and, in certain instances, the ability of the
Company's subsidiaries to incur liens on assets to secure debt,
enter into certain sale and leaseback transactions, and merge or
consolidate with another company or sell all or substantially all
assets.
The Indenture provides for customary events of default, including,
without limitation, (i) payment defaults, (ii) covenant defaults,
(iii) cross-defaults to certain other indebtedness in excess of
specified amounts, (iv) certain events of bankruptcy and
insolvency or (v) judgment defaults in excess of specified
amounts.
In connection with the closing, a registration rights agreement
was entered into on Jan. 17, 2012, between the Company, the
subsidiary guarantors, Barclays Capital Inc. and the initial
purchasers named therein.
About MGM Resorts
MGM Resorts International (NYSE: MGM) --
http://www.mgmresorts.com/-- has significant holdings in gaming,
hospitality and entertainment, owns and operates 15 properties
located in Nevada, Mississippi and Michigan, and has 50%
investments in four other properties in Nevada, Illinois and
Macau.
The Company reported net income of $3.25 billion on $5.55 billion
of revenue for the nine months ended Sept. 30, 2011, compared with
a net loss of $1.29 billion on $4.58 billion of revenue for the
same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed $27.85
billion in total assets, $17.91 billion in total liabilities and
$9.94 billion in total stockholders' equity.
Bankruptcy Warning
Any default under the senior credit facility or the indentures
governing the Company's other debt could adversely affect its
growth, its financial condition, its results of operations and its
ability to make payments on its debt, and could force the Company
to seek protection under the bankruptcy laws.
* * *
As reported by the TCR on Nov. 14, 2011, Standard & Poor's Ratings
Services raised its corporate credit rating on MGM Resorts
International to 'B-' from 'CCC+'. "The rating upgrade reflects
MGM's solid performance thus far in 2011, and our expectation that
MGM will continue benefitting from improving performance trends on
the Las Vegas Strip, particularly on the lodging side of the
business," said Standard & Poor's credit analyst Ben Bubeck. "MGM
maintains weak credit measures, including operating lease-adjusted
debt to wholly owned EBITDA of over 11x and EBITDA coverage of
interest of just 1.0x. Still, we believe recent strong performance
trends are reducing refinancing risk in the company's
intermediate- term debt maturities, and expect credit measures to
continue to gradually improve modestly in 2012."
In the Nov. 21, 2011, edition of the TCR, Moody's Investors
Service upgraded MGM Resorts International's Corporate Family and
Probability of Default ratings to B2, its senior secured rating to
Ba2, and its senior unsecured notes to B3. MGM has an SGL-3
Speculative Grade. The B2 rating reflects Moody's view that
continued earnings improvement at MGM's 51% owned Macau joint
venture increases the likelihood of a dividend distribution that
would help improve the company's liquidity profile. The B2
Corporate Family Rating also reflects Moody's view that positive
lodging trends in Las Vegas will continue through 2012 and will
help improve MGM's leverage and coverage metrics modestly.
MICROBILT CORP: Seeks to Employ Nagel Rice as Special Counsel
-------------------------------------------------------------
MicroBilt Corporation, et al., seek permission from the U.S.
Bankruptcy Court for the District of New Jersey to employ Nagel
Rice, LLP, as their special counsel. The firm may be requested
to:
(a) investigate and prosecute any legal malpractice claims
against a law firm previously retained by the Debtors;
(b) represent the Debtors in connection with litigation
commenced in the United States District Court for the
Middle District of Florida captioned Chex Systems, Inc. v.
DP Bureau, LLC, Case No. 8:10-cv-02465-T-33MAP;
(c) pursue any other claims against Chex Systems, Inc., and its
attorneys;
(d) assist the Debtors with such other litigation as the
Debtors may require services for; and
(e) perform additional services as the Debtors may request
from time to time.
The principal attorneys and paralegals responsible for the
representation of the Debtors and their current hourly rates are:
Bruce H. Nagel, Partner $750
Robert H. Solomon, Partner $575
Greg M. Kohn, Associate $450
Nagel Rice will also charge the Debtors in all areas of practice
for all other expenses it incurred in connection with its
representation of the Debtors.
The Debtors maintain that the general disinterestedness standard
applicable to retention under Section 327(a) of the Bankruptcy
Code does not apply to special counsel, so long as special counsel
is not adverse as to the isolated special purpose for which it is
to be retained.
About MicroBilt Corporation
MicroBilt Corporation in Princeton, New Jersey, and CL Verify LLC
in Tampa, Florida, offer small business owner solutions for fraud
prevention, consumer financing, debt collection, skip tracing and
background screening. MicroBilt provides access to over 3 billion
debit account records, nearly 30 billion pieces of demographic and
public record data and over 100 million unique consumer records to
prevent identity fraud, evaluate credit risk and retain customer
relationships.
MicroBilt and CL Verify filed for Chapter 11 five days apart:
MicroBilt (Bankr. D. N.J. Case No. 11-18143) on March 18, 2011,
and CL Verify (Bankr. D. N.J. Case No. 11-18715) on March 23,
2011. The Debtors tapped Lowenstein Sandler PC as their counsel,
and Maselli Warren, PC, as their special litigation counsel.
MicroBilt estimated $10 million to $50 million in both assets and
debts. CL Verify estimated $100 million to $500 million in
assets, but under $1 million in debts. Court papers say the
Debtors have roughly $8.4 million in unsecured debt and no secured
debt. The Debtors believe they have an enterprise value of
$150 million to $180 million.
No trustee, examiner or committee has been requested or appointed
in these Chapter 11 cases.
MICROBILT CORP: Court OKs RBSM LLP as Financial Advisor
-------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey
authorized MicroBilt Corporation and CL Verify LLC to employ
RBSM LLP as their financial advisors, auditors and tax service
providers. Among other things, the firm will:
a) provide audit services related to the Debtors' annual
financial statements for the year ended Dec. 31, 2010;
b) prepare the Debtors' corporate income tax returns for the
year ended Dec. 31, 2010;
c) provide agreed upon procedures related to the Debtors'
internal controls in evaluating their compliance with the
terms of agreement in the Information Resale Agreement
entered into with Chex Systems Inc. on Aug. 26, 2009;
d) provide regular advice to the Debtors on financial
transactions and other general financial and corporate
matters that arise from time to time, such as capital
structure, acquisitions, etc.; and
e) gain an understanding of the Debtors' business, books and
records and reporting systems.
About MicroBilt Corporation
MicroBilt Corporation in Princeton, New Jersey, and CL Verify LLC
in Tampa, Florida, offer small business owner solutions for fraud
prevention, consumer financing, debt collection, skip tracing and
background screening. MicroBilt provides access to over 3 billion
debit account records, nearly 30 billion pieces of demographic and
public record data and over 100 million unique consumer records to
prevent identity fraud, evaluate credit risk and retain customer
relationships.
MicroBilt and CL Verify filed for Chapter 11 five days apart:
MicroBilt (Bankr. D. N.J. Case No. 11-18143) on March 18, 2011,
and CL Verify (Bankr. D. N.J. Case No. 11-18715) on March 23,
2011. The Debtors tapped Lowenstein Sandler PC as their counsel,
and Maselli Warren, PC, as their special litigation counsel.
MicroBilt estimated $10 million to $50 million in both assets and
debts. CL Verify estimated $100 million to $500 million in
assets, but under $1 million in debts. Court papers say the
Debtors have roughly $8.4 million in unsecured debt and no secured
debt. The Debtors believe they have an enterprise value of
$150 million to $180 million.
No trustee, examiner or committee has been requested or appointed
in these Chapter 11 cases.
MMRGLOBAL INC: SCM's Right to Terminate License Pact Terminates
---------------------------------------------------------------
MMRGlobal, Inc., entered into a Settlement and Patent License
Agreement with Surgery Center Management LLC on Dec. 9, 2011,
which contained a provision allowing SCM to terminate the
Agreement if at least one US Notice of Allowance from the list of
twenty licensed patents was not received by the Company within a
certain time frame. Since Dec. 14, 2011, the Company has received
three US Notices of Allowance with respect to certain of the
License Patents within the required time frame. Therefore, SCM's
right to terminate the Agreement has lapsed. A full-text copy of
the Settlement and License Agreement is available for free at:
http://is.gd/21W6lr
About MMRGlobal
Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF)
-- http://www.mmrglobal.com/-- through its wholly-owned operating
subsidiary, MyMedicalRecords, Inc., provides secure and easy-to-
use online Personal Health Records (PHRs) and electronic safe
deposit box storage solutions, serving consumers, healthcare
professionals, employers, insurance companies, financial
institutions, and professional organizations and affinity groups.
The Company reported a net loss of $17.9 million on $972,988 of
revenues for 2010, compared with a net loss of $10.3 million on
$619,249 of revenues for 2009.
The Company also reported a net loss of $6.24 million on
$1.08 million of total revenues for the nine months ended
Sept. 30, 2011, compared with a net loss of $16.01 million on
$556,648 of total revenues for the same period during the prior
year.
The Company's balance sheet at Sept. 30, 2011, showed $2.13
million in total assets, $6.66 million in total liabilities and a
$4.53 million total stockholders' deficit.
As reported by the TCR on April 7, 2011, Rose, Snyder & Jacobs, in
Encino, Calif., expressed substantial doubt about MMRGlobal's
ability to continue as a going concern. The independent auditors
noted that the Company has incurred significant operating losses
and negative cash flows from operations during the year ended Dec.
31, 2010, and 2009.
NORTHERN BERKSHIRE: Hearing on Cash Collateral Use Set for Feb. 2
-----------------------------------------------------------------
The Hon. Henry J. Boroff of the U.S. Bankruptcy Court for the
District of Massachusetts, in a sixth interim order, authorized
Northern Berkshire Healthcare, Inc., et al., to use the cash
collateral.
The Court will consider the Debtors' request for further access to
the cash collateral on February 2, 2012, at 2:00 p.m. (prevailing
Eastern Time).
The Debtors would use the cash collateral to fund their business
operations, provided that the actual amount for each line item for
expenses in the budget may not exceed the budgeted amount by up to
15%.
The Debtors' access to the cash collateral will terminate at 5:00
p.m. (ET on the date that is two business days after the date of
the further hearing; or (ii) the expiration of the cure period
following the delivery of a default by the master trustee.
The Debtor will maintain casualty and loss insurance coverage fro
the prepetition collateral at all times on substantially the same
basis as maintain prepetition.
As adequate protection for any diminution in value of the master
trustee's interest, the Debtor will grant the master trustee
replacement liens, superpriority administrative claim status,
subject to carve out on certain fees.
About Northern Berkshire Healthcare
Northern Berkshire Healthcare, Inc., is a non-profit healthcare
corporation in northern Berkshire County, Massachusetts. Together
with its affiliates, Northern Berkshire Healthcare operates the
North Adams Regional Hospital and a visiting nurse association and
hospice in North Adams, Massachusetts.
Northern Berkshire Healthcare, Inc., North Adams Regional
Hospital, Inc., Visiting Nurse Association & Hospice of Northern
Berkshire, Inc., Northern Berkshire Healthcare Physicians Group,
Inc., and Northern Berkshire Realty, Inc., filed for Chapter 11
bankruptcy (Bankr. D. Mass. Case No. 11-31114) on June 13, 2011,
to address their overleveraged balance sheet and effect a
reorganization of their operations. On the same day, Northern
Berkshire Community Services, Inc., filed a petition for Chapter 7
relief also in the District of Massachusetts bankruptcy court.
Judge Henry J. Boroff presides over the Debtors' cases. Steven T.
Hoort, Esq., James A. Wright, III, Esq., Jonathan B. Lackow, Esq.,
and Matthew F. Burrows, Esq., at Ropes & Gray LLP, in Boston,
Mass., serve as the Debtors' bankruptcy counsel. The Debtors'
Financial Advisors are Carl Marks Advisory Group LLC. GCG Inc.
serves as claims and noticing agent.
Northern Berkshire disclosed $22,957,933 in assets and $53,379,652
in liabilities as of the Chapter 11 filing. The petition was
signed by William F. Frado, Jr., president.
William K. Harrington, the U.S. Trustee for Region 1, appointed
five members to the official unsecured creditors' committee in the
Debtors' cases. The Committee tapped Duane Morris LLP as its
counsel.
PACIFIC MONARCH: Gets OK to Sell Assets to Rival, Lender
--------------------------------------------------------
Dow Jones' DBR Small Cap reports that a bankruptcy judge approved
the sale of Pacific Monarch Resorts Inc., a collection of luxury
timeshare resorts, to Diamond Resorts International and Resort
Finance America LLC.
About Pacific Monarch
Pacific Monarch Resorts, Inc., and certain affiliated debtors
filed voluntary Chapter 11 petitions (Bankr. C.D. Calif. Lead Case
No. 11-24720) on Oct. 24, 2011, disclosing $100 million to $500
million in both assets and debts. The affiliated debtors are
Vacation Interval Realty Inc., Vacation Marketing Group Inc., MGV
Cabo LLC, Desarrollo Cabo Azul, S. de R.L. de C.V., and Operadora
MGVM S. de R.L. de C.V.
Based in Laguna Hills, California, Pacific Monarch and its
affiliates generate revenue primarily from the sale and financing
of "vacation ownership points" in a timeshare program commonly
known and marketed as "Monarch Grand Vacations," a multi-location
vacation timeshare program that establishes a uniform plan for the
development, ownership, use and enjoyment of specified resort
accommodations for the benefit of its members. MGV is a nonprofit
mutual benefit corporation whose members are timeshare owners, and
it is administered by a board of directors elected by MGV members.
As of the Petition Date, MGV owned Resort Accommodations within
these resorts: Palm Canyon Resort (Palm Springs), Riviera Oaks
Resort & Racquet Club (Ramona), Riviera Beach & Spa Resort -
Phases I and II (Dana Point), Riviera Shores Beach (Dana Point),
Cedar Breaks Lodge (Brian Head), Tahoe Seasons Resort (South Lake
Tahoe), Desert Isle of Palm Springs (Palm Springs), the Cancun
Resort (Las Vegas), and the Cabo Azul Resort (Los Cabos, Mexico).
Future Vacation Accommodations are currently in the pre-
development stage in Kona, Hawaii and Las Vegas, Nevada.
Additionally, the Cabo Azul Resort has construction in progress on
two buildings.
The Pacific Monarch entities do not include the entities that
actually own the timeshare properties that have been dedicated to
use by the purchasers of timeshare points. The trusts that own
the properties are not liable for the Pacific Monarch entities'
obligations.
MGV is not a debtor.
Judge Erithe A. Smith presides over the jointly administered
cases. Lawyers at Stutman, Treister & Glatt PC serve as counsel
to the Debtors. The petition was signed by Mark D. Post, chief
executive officer and director.
Creditor Ikon Financial Services is represented by Christine R.
Etheridge. Creditor California Bank & Trust is represented in the
case by Michael G. Fletcher at Frandzel Robins Bloom & Csato, L.C.
Marshall F. Goldberg, Esq. at Glass & Goldberg argues for creditor
Fifth Third Bank. Creditor The Macerich Company is represented by
Brian D. Huben, Esq. at Katten Muchin Rosenman LLP. Interested
Party DPM Acquisition is represented by Joshua D. Wayser, Esq. at
Katten Muchin Rosenman LLP.
PEAK BROADCASTING: Commences Prepack Chapter 11 Bankruptcy
----------------------------------------------------------
PEAK Broadcasting filed for Chapter 11 bankruptcy protection in
the U.S. Bankruptcy Court for the District of Delaware armed with
a prepackaged plan of reorganization.
According to Allaccess.com, the Company reached an agreement with
the majority of its lenders on a prepackaged plan that
significantly reduces its outstanding debt. The plan provides for
payments to the Company's employees, vendors and other unsecured
creditors, and for the business to continue in the ordinary course
with no disruption.
"PEAK's plan of reorganization is the result of a cooperative
effort involving PEAK's management and is supported by the
majority of PEAK's lenders. Most important, the restructuring is
not expected to impact the day-to-day operations of our radio
stations," the report quotes the Company's CEO Todd Lawley as
saying. "Operationally, PEAK has improved its position in the
markets it serves during one of the most difficult periods in
radio broadcasting history. I am confident that PEAK will emerge
from the restructuring with a stronger financial foundation which
complements our market-leading radio positions and allows us to
continue to provide premier radio programming in the communities
we serve together with the uninterrupted support of our customers,
employees, and vendors.
Radio-info.com reports that the result of the "pre-packaged" plan
should be a fairly speedy emergence from Chapter 11. Radio-info
says the filing refers to a "pre-petition first lien credit
agreement" signed in 2007, which provided for an initial senior
secured Term Loan A of $68.5 million, a revolving credit facility
of $7 million and a senior secured multi-draw loan facility of $12
million. The pre-petition second lien credit agreement signed in
August 2009 was for a $15 million Term B loan and a "delayed draw
term loan facility" of $3 million.
Feb. 23 Plan Hearing
Dow Jones' DBR Small Cap reports that Judge Peter Walsh set a
hearing to confirm the Peak Broadcasting's Chapter 11 plan for
Feb. 23 and approved all of the company's first-day motions
Thursday, according to a company representative, overruling
objections filed by Rabobank International, the only lender to
vote against its prepackaged Chapter 11 plan.
About PEAK Broadcasting
Peak Broadcasting LLC, in Fresno, California, filed for Chapter 11
bankruptcy (Bankr. D. Del. Lead Case No. 12-10183) on Jan. 10,
2012. Several affiliates also sought Chapter 11 protection: Peak
Broadcasting of Fresno LLC; Peak Broadcasting of Boise LLC; Peak
Broadcasting of Fresno Licenses LLC; and Peak Broadcasting of
Boise Licenses LLC. Michael Seidl, Esq., at Pachulski, Stang,
Ziehl, Young & Jones, serves as the Debtor's counsel. In its
petition, Peak Broadcasting estimated $50 million to $100 million
in assets and debts. The petition was signed by Todd Lawley, CEO
and managing member.
PETRA FUND: Plan Confirmation Hearing scheduled for Feb. 3
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
will convene a hearing on Feb. 3, 2012, at 11:00 a.m. to consider
confirmation of Petra Fund Reit Corp., et al.'s Plan of
Reorganization dated as of Dec. 19, 2011.
According to the Debtors, during their Chapter 11 cases, they
continued to engage in negotiations with its secured creditors,
the Royal Bank of Scotland plc and J.P. Morgan Securities, Inc.,
to finalize a proposed plan. While it was originally contemplated
that the transactions proposed in the Plan Support Agreement would
be embodied in the Debtors' Plan, the Debtors were unable to
obtain consent to such a plan from both of its secured creditors.
Accordingly, the Debtors modified its proposed restructuring that
will be deemed satisfactory to both JPM and RBS and the modified
version of the Debtor's proposed restructuring is now embodied in
the Plan. Importantly, the Debtors and its secured creditors came
to the realization that for a restructuring to work, it would not
be possible to guarantee that REIT would retain its status as a
qualified real estate investment trust for federal tax purposes.
As a result, the Debtors' proposed restructuring of REIT in the
Plan is not dependent on REIT retaining such tax status.
The Plan provides for the dissolution of Offshore, sale of the
Settlement Payments, sale of the Equity Interests and
reorganization of REIT and the treatment of each holder of a Claim
against, or Equity Interests in, the Debtors. Such treatment
includes the payment in full of all Administrative Claims, unless
otherwise agreed to; with respect to RBS, the deemed delivery of
the Class F Bonds and Class G Bonds (to the extent the Class F
Bonds and Class G Bonds were not previously foreclosed upon by
RBS), the issuance of a new debt instrument that will continue to
be secured by a first-priority Lien on the RBS REIT Collateral and
the allowance of an unsecured deficiency claim; with respect to
JPM, the issuance of a new debt instrument that will continue to
be secured by a first-priority Lien on the JPM REIT Collateral;
the distribution to holders of General Unsecured Claims of a Pro
Rata Share of the Distributable Assets, if there are any; and
cancellation of all existing Equity Interests.
With respect to the sales transactions contemplated in the Plan,
the Debtors will be accepting bids for the Settlement Payments and
Equity Interests of REIT will be provided to all creditors and
holders of Equity Interests of the Debtors.
A full-text copy of the Second Amended Disclosure Statement is
available for free at:
http://bankrupt.com/misc/PETRA_FUND_ds_2ndamended.pdf
About Petra Fund
Petra Fund REIT Corp. and its affiliates are in the business of
originating, investing in, structuring and trading loans secured
by commercial real-estate. Petra Offshore Fund LP is the parent.
Petra Fund and Petra Offshore sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 10-15500) on Oct. 20, 2010, and are
represented by Shaya M. Berger, Esq., and Brian E. Goldberg, Esq.,
at Dickstein Shapiro, LLP. At the time of the filing, each of the
Debtor estimated its assets at less than $10 million and its debts
at more than $100 million.
Petra Fund blamed its Chapter 11 filing on the extraordinary and
unprecedented collapse of the credit and commercial real estate
markets, which caused a mark-to-market value of its assets to
plummet.
RAKHRA MUSHROOM: Files for Chapter 11 Bankruptcy Protection
-----------------------------------------------------------
Ruth Heide at Valley Courier reports that Rakhra Mushroom Farm
Corporation filed on Jan. 14, 2012, for Chapter 11 bankruptcy in
the Bankruptcy Court in Denver.
General Manager Michael Smith said the farm is closing. According
to the report, Mr. Smith said that owners are viewing the
bankruptcy filing as an opportunity to catch up on debts and
continue producing mushrooms for customers and providing jobs for
local residents. "The majority of our team of employees will
remain intact and will continue to provide the highest quality
products that Rakhra is known for," Mr. Smith stated.
The report relates Mr. Smith said Rakhra "is working aggressively
toward the successful completion of a restructuring plan that will
be completed through a proceeding under Chapter 11 of the
Bankruptcy Code. The Chapter 11 restructuring will allow Rakhra
to continue its operations as a major employer and supplier of
high-quality mushrooms in the San Luis Valley."
The report says Mr. Smith explained that Rakhra's bankruptcy
petition "means every debt we had as of [Jan. 12, 2012] gets put
aside temporarily." Mr. Smith said the bankruptcy filing would
allow Rakhra to operate on a cash basis with vendors who are
willing to continue working with the farm in order to generate
enough revenue to pay back the debt owed.
Rakhra Mushroom Farm Corporation -- http://www.rakhramushroom.com/
-- is a producer-marketer of fresh mushrooms. Its Web site says
the Company has been a going concern since the early 1980's.
REAL MEX: Exclusive Plan Filing Period Extended Through April 1
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended
through (i) April 1, 2012, the exclusive period within which Real
Mex Restaurants, Inc., and its debtor affiliates may file a
Chapter 11 plan, and (ii) June 1, 2012, the period to solicit
acceptances of that plan.
About Real Mex
Based in Cypress, California, Real Mex Restaurants, Inc., owns and
operates restaurants, primarily through its major subsidiaries El
Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco
Restaurants, Inc. It has 178 restaurants, with 149 in California.
There are also 30 franchised locations. It acquired Chevys Inc.
for $90 million through confirmation of Chevy's Chapter 11 plan in
2004.
Real Mex Restaurants and 16 of its affiliates filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Case Nos. 11-13122 to 11-
13138) on Oct. 4, 2011. Judge Brendan Linehan Shannon oversees
the case. Judge Peter Walsh was initially assigned to the case.
The Debtors are represented by Mark Shinderman, Esq., Fred
Neufeld, Esq., and Haig M. Maghakian, Esq., at Milbank, Tweed,
Hadley & McCloy LLP; and Laura Davis Jones, Esq., and Curtis A.
Helm, Esq., at Pachulski Stang Ziehl & Jones LLP as counsel. The
Debtors' financial advisors are Imperial Capital, LLC. The
Debtors' claims, noticing, soliciting and balloting agent is Epiq
Bankruptcy Solutions, LLC.
Assets are $272.2 million while debt totals $250 million,
according to the Chapter 11 petition. The petitions were signed
by Richard P. Dutkiewiez, chief financial officer and executive
vice president.
Counsel to GE Capital Corp., the DIP Agent and the Prepetition
First Lien Secured Agent, are Jeffrey G. Moran, Esq., and Peter P.
Knight, Esq., at Latham & Watkins LLP; and Kurt F. Gwynne, Esq.,
at Reed Smith LLP as counsel.
Counsel to the Prepetition Secured Second Lien Trustee are Mark F.
Hebbeln, Esq., and Harold L. Kaplan, Esq., at Foley & Lardner LLP.
Counsel to the Majority Prepetition Second Lien Secured
Noteholders are Adam C. Harris, Esq., and David M. Hillman, Esq.,
at Schulte Roth & Zabel LLP; and Russell C. Silberglied, Esq., at
Richards Layton & Finger.
Z Capital Management LLC, which holds nearly 70% of the Opco term
loan, is represented by Derek C. Abbott, Esq., and Chad A. Fights,
Esq., at Morris Nichols Arsht & Tunnell LLP; and Lee R. Bogdanoff,
Esq., and Whitman L. Holt, Esq., at Klee Tuchin Bogdanoff & Stern
LLP.
REAL MEX: May Assume or Reject Real Property Leases Until May 1
---------------------------------------------------------------
Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the
District of Delaware extended through May 1, 2012, the deadline
for Real Mex Restaurants, Inc., and its debtor affiliates to
assume or reject their unexpired leases of nonresidential real
property.
About Real Mex
Based in Cypress, California, Real Mex Restaurants, Inc., owns and
operates restaurants, primarily through its major subsidiaries El
Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco
Restaurants, Inc. It has 178 restaurants, with 149 in California.
There are also 30 franchised locations. It acquired Chevys Inc.
for $90 million through confirmation of Chevy's Chapter 11 plan in
2004.
Real Mex Restaurants and 16 of its affiliates filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Case Nos. 11-13122 to 11-
13138) on Oct. 4, 2011. Judge Brendan Linehan Shannon oversees
the case. Judge Peter Walsh was initially assigned to the case.
The Debtors are represented by Mark Shinderman, Esq., Fred
Neufeld, Esq., and Haig M. Maghakian, Esq., at Milbank, Tweed,
Hadley & McCloy LLP; and Laura Davis Jones, Esq., and Curtis A.
Helm, Esq., at Pachulski Stang Ziehl & Jones LLP as counsel. The
Debtors' financial advisors are Imperial Capital, LLC. The
Debtors' claims, noticing, soliciting and balloting agent is Epiq
Bankruptcy Solutions, LLC.
Assets are $272.2 million while debt totals $250 million,
according to the Chapter 11 petition. The petitions were signed
by Richard P. Dutkiewiez, chief financial officer and executive
vice president.
Counsel to GE Capital Corp., the DIP Agent and the Prepetition
First Lien Secured Agent, are Jeffrey G. Moran, Esq., and Peter P.
Knight, Esq., at Latham & Watkins LLP; and Kurt F. Gwynne, Esq.,
at Reed Smith LLP as counsel.
Counsel to the Prepetition Secured Second Lien Trustee are Mark F.
Hebbeln, Esq., and Harold L. Kaplan, Esq., at Foley & Lardner LLP.
Counsel to the Majority Prepetition Second Lien Secured
Noteholders are Adam C. Harris, Esq., and David M. Hillman, Esq.,
at Schulte Roth & Zabel LLP; and Russell C. Silberglied, Esq., at
Richards Layton & Finger.
Z Capital Management LLC, which holds nearly 70% of the Opco term
loan, is represented by Derek C. Abbott, Esq., and Chad A. Fights,
Esq., at Morris Nichols Arsht & Tunnell LLP; and Lee R. Bogdanoff,
Esq., and Whitman L. Holt, Esq., at Klee Tuchin Bogdanoff & Stern
LLP.
RIVER ISLAND: Can Hire Max Hagen as Special Real Estate Counsel
---------------------------------------------------------------
River Island Farms, Inc., sought and obtained permission from the
U.S. Bankruptcy Court for the Southern District of Florida to
employ Max Hagen, Esq., of Hagen & Hagen, P.A., as its special
real estate counsel. The professional services the attorney will
render are to be solely related to sale of the Debtor's real
property.
The Debtor seeks to pay special counsel from the proceeds of the
sale of any real property reasonable fees, subject to approval of
the U. S. Trustee, counsel for Gibraltar Private Bank & Trust
Company and the Debtor, in an amount not to exceed $5,000 per
sale.
Both counsel for Gibraltar and counsel for the U. S. Trustee have
agreed to this motion. Gibraltar is a secured creditor of the
Debtor.
Max Hagen assures the Court that he is a "disinterested person" as
that term is defined in Section 101(14) of the Bankruptcy Code.
About River Island Farms, Inc.
Fort Lauderdale, Florida-based River Island Farms, Inc., was
initially formed as a single asset entity that acquired an 80%
interest in 55 acres of developable property opposite Blackhawk in
Danville, California.
On June 30, 2004, the Company sold the 55 acre property to Shapell
Industries. The sale was structured as an Internal Revenue Code
Section 1031 exchange. Due to the requirements that River Island
purchase property within a specified time period in order to take
advantage of the IRS Code provision, River Island purchased
property in Ft. Lauderdale and Stuart, Florida consisting of 2328
Aqua Vista Blvd., Ft. Lauderdale, Florida; 2521 Mercedes Drive,
Ft. Lauderdale, Florida; 2001 SE St. Lucie Blvd., Stuart, Florida;
and 1735 SE St. Lucie Blvd., Stuart, Florida. The Mercedes Drive
residence was sold in June 2011. The other remaining properties
are being actively marketed.
The Company filed for Chapter 11 bankruptcy protection (Bankr.
S.D. Fla. Case No. 11-15410) on Feb. 28, 2011. Martin L. Sandler,
Esq., at Sandler & Sandler, in Miami, Fla., serves as the Debtor's
bankruptcy counsel. The Debtor disclosed $23,974,222 in assets
and $14,467,808 in liabilities as of the Chapter 11 filing.
The bankruptcy case was commenced as a result of a pending
foreclosure sale regarding one of the properties owned by the
Debtor.
ROOMSTORE INC: To Close Hagerstown Showroom on Jan. 25
------------------------------------------------------
Dan Dearth at Herald.mail.com reports that The RoomStore furniture
showroom near Hagerstown, Md., will close its doors for good Jan.
25, 2012.
According to the report, Stephen Giordano, president and chief
executive officer of RoomStore, said logistics played an important
role in the decision to close the store at 17159 Cole Road
southwest of Hagerstown. He said the store was too far away from
its warehouse in North Carolina. He said the high cost to lease
the building also was a factor.
The report relates that Mr. Giordano said the RoomStore on Cole
Road was one of three in Maryland and 26 across the nation that
company officials chose to close. Thirty-seven stores will remain
open.
About RoomStore Inc.
Richmond, Virginia-based RoomStore, Inc., operates a chain of 64
retail furniture stores, including both large-format stores and
clearance centers in eight states: Pennsylvania, Maryland,
Virginia, North Carolina, South Carolina, Florida, Alabama, and
Texas. It also has five warehouses and distribution centers
located in Maryland, North Carolina, and Texas that service the
Retail Stores. The Company also offers its home furnishings
through Furniture.com, a provider of internet-based sales
opportunities for regional furniture retailers. The Company owns
65% of Mattress Discounters Group LLC, which operates 83 mattress
stores (as of Aug. 31, 2011) in the states of Delaware, Maryland
and Virginia and in the District of Columbia.
RoomStore was founded in 1992 in Dallas, Texas, with four retail
furniture stores. With more than $300 million in net sales for
its fiscal year ending 2010, RoomStore is one of the 30 largest
furniture retailers in the United States.
RoomStore filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case
No. 11-37790) on Dec. 12, 2011, following store-closing sales at
four of its retail stores, located in Hoover, Alabama;
Fayetteville, North Carolina; Tallahassee, Florida; and Baltimore,
Maryland. Judge Douglas O. Tice, Jr., presides over the case.
Lawyers at Lowenstein Sandler PC and Kaplan & Frank, PLC serve as
the Debtor's bankruptcy counsel.
The Company's balance sheet at Aug. 31, 2011, showed $70.4 million
in total assets, $60.3 million in total liabilities, and
stockholders' equity of $10.1 million. The petition was signed by
Stephen Girodano, president and chief executive officer.
Liquidator Hilco Merchant Resources, Inc., is represented in the
case by Gregg M. Galardi, Esq., at DLA Piper LLP (US); and Robert
S. Westermann, Esq., and Sheila de la Cruz, Esq., at Hirschler
Fleischer, P.C.
The U.S. Trustee for Region 4 named seven members to the official
committee of unsecured creditors in the case.
SHOPS AT PRESTONWOOD: Plan of Reorganization Wins Confirmation
--------------------------------------------------------------
The Hon. Harlin D. Hale of the U.S. Bankruptcy Court for the
Northern District of Texas confirmed The Shops at Prestonwood,
L.P.'s Amended Plan of Reorganization dated Nov. 14, 2011.
According to the Disclosure Statement, the Plan provides for the
Debtor to continue to manage and operate the properties. The
Reorganized Debtor will use net cash flow from the properties,
funds on deposit in its debtor-in-possession accounts, including,
but not limited to, funds within any tax escrow accounts, funds
received from the equity holders, sale proceeds from sales of the
properties, and any additional monies obtained by the Debtor to
fund the distributions required under the Plan. The equity
holders will advance sufficient funds to the Debtor to enable the
Debtor to pay all amounts necessary to effectuate and implement
and perform under the Plan, including, but not limited to,
administrative costs, expenses, priority claims, interest payments
provided by the Plan, and development costs related to Phase II of
the Shops Development.
A full-text copy of the Amended Disclosure Statement is available
for free at:
http://bankrupt.com/misc/THE_SHOPS_AT_PRESTONWOOD_ds.pdf
Objection
Creditor and party-in-interest objected to the amended Disclosure
Statement stating that, among other things:
-- the Disclosure statement fails to provide adequate
information;
-- the Plan violates the "absolute priority rule";
-- the proposed plan is nor feasible and does not conform to
the terms of the settlement reached between the Debtor and
Valliance Bank on Sept. 7, 2011; and
-- the Plan requires Valiance Bank to release it prepetition
claims against the guarantors of the Debtor's promissory note
obligation to Valliance.
Valliance Bank is represented by:
Larry R. Boyd, Esq.
Charles J. Crawford, Esq.
ABERNATHY, ROEDER, BOYD & JOPLIN, P.C.
1700 Redbud Blvd., Suite 300
McKinney, TX 75069
Tel: (214) 544-4000
Fax: (214) 544-4040
About The Shops at Prestonwood
Addison, Texas-based The Shops at Prestonwood, LP's primary assets
consist of approximately 144 residential townhome lots and an
additional 17.170 acres of residential undeveloped land located
within the Shops at Prestonwood subdivision in Denton County,
Texas.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. N.D.
Tex. Case No. 11-32209) on April 1, 2011. Melissa S. Hayward,
Esq., at Franklin Skierski Lovall Hayward LLP, serves as the
Debtor's bankruptcy counsel. The Debtor disclosed $18,200,000 in
assets and $14,151,239 in liabilities as of the Chapter 11 filing.
No creditors' committee, trustee nor examiner has been appointed
in the case.
SHOREBANK CORP: Taps Garden City Group as Claims Agent
------------------------------------------------------
The ShoreBank Corporation sought and obtained Bankruptcy Court
permission to employ Garden City Group, Inc., as its claims,
noticing and solicitation agent. The firm has received a $10,000
retainer from the Debtors.
Emily S. Gottlieb, Assistant Vice President of GCG
Emily S. Gottlieb
THE GARDEN CITY GROUP INC
190 S La Salle St Ste 1520
Chicago, IL 60603-3489 USA
Tel: (312) 499-6901
Fax: (312) 212-4401
E-mail: emily.gottlieb@gcginc.com
attests that Garden City does not have any adverse connection with
the Debtors, their creditors, or any other party-in-interest or
its attorneys and accountants, or the U.S. Trustee; and does not
hold or represent an interest adverse to the Debtors' estates.
About ShoreBank
Organized in 1973 and incorporated under the state of Illinois,
The ShoreBank Corporation was America's first and leading
community development and environmental bank holding company. SBK
was a registered bank holding company for, among others, its
subsidiary, ShoreBank in Chicago, a state chartered non-member
bank. The Bank was subject to oversight and regulation by its
primary regulator, the Illinois Department of Financial and
Professional Regulation.
On Aug. 20, 2010, the Bank was closed by the IDFPR, and the
Federal Deposit Insurance Corp. was named receiver. The FDIC sold
substantially all of the Bank's assets to Urban Partnership Bank.
SBK's principal asset and source of income was its investment in
the Bank. The Bank Closure has had a significant adverse affect
on SBK's liquidity, capital resources, and financial condition.
On Jan. 9, 2012, SBK and 11 affiliates commenced Chapter 11 cases
(Bankr. N.D. Ill. Lead Case No. 12-00581) to liquidate their
remaining assets and wind down their estates.
The case was initially assigned to Judge Jacqueline P. Cox. On
Jan. 10, she recused herself and the case was sent to Judge A.
Benjamin Goldgar's chambers.
George Panagakis, Esq., leads a team of lawyers at Skadden, Arps,
Slate, Meagher & Flom LLP, who represent the Debtors. SBK
scheduled $19,173,338 in assets and $63,590,317 in liabilities.
The petition was signed by George P. Surgeon, president and CEO.
SHOREBANK CORP: Files Schedules of Assets and Liabilities
---------------------------------------------------------
The ShoreBank Corporation has filed with the Bankruptcy Court its
schedules of assets and liabilities, disclosing:
Name of Schedule Total Assets Total Liabilities
---------------- ------------ -----------------
A - Real Property $0
B - Personal Property $19,173,338
C - Property Claimed
as Exempt
D - Creditors Holding
Secured Claims $0
E - Creditors Holding Unsecured
Priority Claims $19,173,338
F - Creditors Holding Unsecured
Nonpriority Claims $63,566,867
------------ -----------------
Total $19,173,338 $63,590,317
About ShoreBank
Organized in 1973 and incorporated under the state of Illinois,
The ShoreBank Corporation was America's first and leading
community development and environmental bank holding company. SBK
was a registered bank holding company for, among others, its
subsidiary, ShoreBank in Chicago, a state chartered non-member
bank. The Bank was subject to oversight and regulation by its
primary regulator, the Illinois Department of Financial and
Professional Regulation.
On Aug. 20, 2010, the Bank was closed by the IDFPR, and the
Federal Deposit Insurance Corp. was named receiver. The FDIC sold
substantially all of the Bank's assets to Urban Partnership Bank.
SBK's principal asset and source of income was its investment in
the Bank. The Bank Closure has had a significant adverse affect
on SBK's liquidity, capital resources, and financial condition.
On Jan. 9, 2012, SBK and 11 affiliates commenced Chapter 11 cases
(Bankr. N.D. Ill. Lead Case No. 12-00581) to liquidate their
remaining assets and wind down their estates.
The case was initially assigned to Judge Jacqueline P. Cox. On
Jan. 10, she recused herself and the case was sent to Judge A.
Benjamin Goldgar's chambers.
George Panagakis, Esq., leads a team of lawyers at Skadden, Arps,
Slate, Meagher & Flom LLP, who represent the Debtors. Garden City
Group Inc. serves as the Debtors' claims agent. The petition was
signed by George P. Surgeon, president and CEO.
SHOREBANK CORP: Court Sets Feb. 27 as Claims Bar Date
-----------------------------------------------------
The Bankruptcy Court set Feb. 27, 2012, at 5:00 PM (prevailing
Central Time), as the deadline for creditors to file proofs of
claim in The ShoreBank Corporation's Chapter 11 cases.
Governmental units have until July 11, 2012, to file proofs of
claim.
At the onset of the case, the Debtors asked the Court to establish
Claims Bar Dates, stating that they plan to administer the Chapter
11 cases in an expedited and streamlined manner, because they have
limited assets available to distribute to potential holders of
claims and interests in the cases. The Debtors said their estates
will benefit from a clear procedure to promptly and accurately
identify the full nature, extent, and scope of all claims that may
be asserted against their estates.
About ShoreBank
Organized in 1973 and incorporated under the state of Illinois,
The ShoreBank Corporation was America's first and leading
community development and environmental bank holding company. SBK
was a registered bank holding company for, among others, its
subsidiary, ShoreBank in Chicago, a state chartered non-member
bank. The Bank was subject to oversight and regulation by its
primary regulator, the Illinois Department of Financial and
Professional Regulation.
On Aug. 20, 2010, the Bank was closed by the IDFPR, and the
Federal Deposit Insurance Corp. was named receiver. The FDIC sold
substantially all of the Bank's assets to Urban Partnership Bank.
SBK's principal asset and source of income was its investment in
the Bank. The Bank Closure has had a significant adverse affect
on SBK's liquidity, capital resources, and financial condition.
On Jan. 9, 2012, SBK and 11 affiliates commenced Chapter 11 cases
(Bankr. N.D. Ill. Lead Case No. 12-00581) to liquidate their
remaining assets and wind down their estates.
The case was initially assigned to Judge Jacqueline P. Cox. On
Jan. 10, she recused herself and the case was sent to Judge A.
Benjamin Goldgar's chambers.
George Panagakis, Esq., leads a team of lawyers at Skadden, Arps,
Slate, Meagher & Flom LLP, who represent the Debtors. Garden City
Group serves as claims agent. SBK scheduled $19,173,338 in assets
and $63,590,317 in liabilities. The petition was signed by George
P. Surgeon, president and CEO.
SHOREBANK CORP: Sec. 341(a) Creditors' Meeting on Feb. 15
---------------------------------------------------------
The U.S. Trustee in Chicago will hold a meeting of creditors
pursuant to Sec. 341(a) of the Bankruptcy Code in the Chapter 11
case of The ShoreBank Corporation on Feb. 15, 2012 at 1:30 p.m.
(prevailing Central Time).
Organized in 1973 and incorporated under the state of Illinois,
The ShoreBank Corporation was America's first and leading
community development and environmental bank holding company. SBK
was a registered bank holding company for, among others, its
subsidiary, ShoreBank in Chicago, a state chartered non-member
bank. The Bank was subject to oversight and regulation by its
primary regulator, the Illinois Department of Financial and
Professional Regulation.
On Aug. 20, 2010, the Bank was closed by the IDFPR, and the
Federal Deposit Insurance Corp. was named receiver. The FDIC sold
substantially all of the Bank's assets to Urban Partnership Bank.
SBK's principal asset and source of income was its investment in
the Bank. The Bank Closure has had a significant adverse affect
on SBK's liquidity, capital resources, and financial condition.
On Jan. 9, 2012, SBK and 11 affiliates commenced Chapter 11 cases
(Bankr. N.D. Ill. Lead Case No. 12-00581) to liquidate their
remaining assets and wind down their estates.
The case was initially assigned to Judge Jacqueline P. Cox. On
Jan. 10, she recused herself and the case was sent to Judge A.
Benjamin Goldgar's chambers.
George Panagakis, Esq., leads a team of lawyers at Skadden, Arps,
Slate, Meagher & Flom LLP, who represent the Debtors. Garden City
Group serves as claims agent. SBK scheduled $19,173,338 in assets
and $63,590,317 in liabilities. The petition was signed by George
P. Surgeon, president and CEO.
SOLYNDRA LLC: Workers Object to $500,000 Bonus Plan
---------------------------------------------------
Maria Chutchian at Bankruptcy Law360 reports that a class of
former Solyndra LLC employees on Monday launched an objection to
the company's $500,000 incentive plan that will award bonuses to
21 current employees, arguing the company has not proven the plan
would be a sound business decision.
Solyndra sought approval of the bonus plan to a Delaware
bankruptcy court earlier this month, claiming the bonuses were a
maneuver to keep its current employees working toward achieving
various performance goals.
Founded in 2005, Solyndra LLC is a U.S. manufacturer of solar
photovoltaic solar power systems specifically designed for large
commercial and industrial rooftops and for certain shaded
agriculture applications. The Company had 968 full time employees
and 211 temporary employees. Solyndra has sold more than 500,000
of its panels since 2008 and generated cumulative sales of over
$250 million.
Fremont, California-based Solyndra and affiliate 360 Degree Solar
Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at
least the third solar company to seek court protection from
creditors since August 2011.
Solyndra owed secured lenders $783.8 million, including
$527.8 million to the U.S. government pursuant to a federal loan
guarantee, and held assets valued at $859 million as of the
Petition date. The U.S. Federal Financing Bank, owned by the U.S.
Treasury Department, is the Company's biggest lender.
In the Chapter 11 cases, the Debtors are pursuing a two-pronged
strategy to effectuate either a sale of their business to a
"turnkey" buyer who may acquire substantially all of Solyndra's
assets or, if the Debtors are unable to identify any such
potential buyers, an orderly liquidation of the Debtors' assets
for the benefit of their creditors.
Judge Mary F. Walrath presides over the Debtors' cases. The
Debtors are represented by Pachulski Stang Ziehl & Jones LLP as
legal adviser. AlixPartners LLP serves as noticing claims and
balloting agent. Imperial Capital LLC serves as the company's
investment banker and financial adviser. The Debtors also tapped
former Massachusetts Governor William F. Weld, now with the law
firm McDermott Will & Emery, to represent the company in
government investigations and related litigation. BDO Consulting,
a division of BDO USA, LLP, as financial advisor and BDO Capital
Advisors, LLC, serves as investment banker for the creditors'
panel.
Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors of Solyndra LLC. The Committee has tapped
Blank Rome LLP as counsel.
Solyndra is at least the fourth solar company to seek court
protection from creditors since August 2011. Other solar firms
are Evergreen Solar and start-up Spectrawatt Inc., both of which
filed in August, and Stirling Energy Systems Inc., which filed for
Chapter 7 bankruptcy late in September.
SOLYNDRA LLC: Lease Decision Period Extended Until April 2
----------------------------------------------------------
The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the
District of Delaware extended until April 2, 2012, the time with
which Solyndra LLC, et al., may assume or reject nonresidential
real property leases.
The Court also directed the Debtors that under each lease with an
objecting landlord, the Debtor will timely perform its obligations
to pay monthly installments of base rent and of additional rent
under the lease and its other obligations under the lease until
the lease is assumed or rejected, and the extension is without
prejudice to an objecting landlord's seeking by motion to compel
the earlier assumption or rejection of its lease if the Debtor
fails to pay the monthly installments of base rent or of
undisputed additional rent when due and payable.
As reported in the Troubled Company Reporter on Dec. 15, 2011, the
Debtors related that it has engaged its efforts to effectuate a
sale of its business to a turnkey buyer who will acquire all or
substantially all of the assets used in the Debtors' business.
The Debtors believed that a a turnkey sale will provide the best
chance for the Debtors to maximize the value of its assets and to
reemploy certain of the employees who were terminated prior to the
commencement of the cases. While no acceptable turnkey sale bid
was received by the bid deadline, parties continue to express
interest in acquiring Solyndra's assets on a turnkey basis.
Accordingly, Solyndra, in consultation with its key creditor
constituencies, determined that an extension of the date and
deadlines for the turnkey sale hearing was necessary and
appropriate.
Pursuant to the continued sale hearing notice, the Debtors
continued (i) the bid deadline to Jan. 17, 2012, at 4:00 p.m.
(prevailing Pacific Time); (ii) the auction date for the turnkey
sale to Jan. 19, 2012, at 10:00 a.m.; (iii) the objection deadline
to the turnkey sale motion to Jan. 20, at 12:00 p.m.; (iv) the
turnkey sale hearing to Jan. 23, at 1:30 a.m.
About Solyndra LLC
Founded in 2005, Solyndra LLC is a U.S. manufacturer of solar
photovoltaic solar power systems specifically designed for large
commercial and industrial rooftops and for certain shaded
agriculture applications. The Company had 968 full time employees
and 211 temporary employees. Solyndra has sold more than 500,000
of its panels since 2008 and generated cumulative sales of over
$250 million.
Fremont, California-based Solyndra and affiliate 360 Degree Solar
Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at
least the third solar company to seek court protection from
creditors since August 2011.
Solyndra owed secured lenders $783.8 million, including
$527.8 million to the U.S. government pursuant to a federal loan
guarantee, and held assets valued at $859 million as of the
Petition date. The U.S. Federal Financing Bank, owned by the U.S.
Treasury Department, is the Company's biggest lender.
In the Chapter 11 cases, the Debtors are pursuing a two-pronged
strategy to effectuate either a sale of their business to a
"turnkey" buyer who may acquire substantially all of Solyndra's
assets or, if the Debtors are unable to identify any such
potential buyers, an orderly liquidation of the Debtors' assets
for the benefit of their creditors.
Judge Mary F. Walrath presides over the Debtors' cases. The
Debtors are represented by Pachulski Stang Ziehl & Jones LLP as
legal adviser. AlixPartners LLP serves as noticing claims and
balloting agent. Imperial Capital LLC serves as the company's
investment banker and financial adviser. The Debtors also tapped
former Massachusetts Governor William F. Weld, now with the law
firm McDermott Will & Emery, to represent the company in
government investigations and related litigation. BDO Consulting,
a division of BDO USA, LLP, as financial advisor and BDO Capital
Advisors, LLC, serves as investment banker for the creditors'
panel.
Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors of Solyndra LLC. The Committee has tapped
Blank Rome LLP as counsel.
Solyndra is at least the fourth solar company to seek court
protection from creditors since August 2011. Other solar firms
are Evergreen Solar and start-up Spectrawatt Inc., both of which
filed in August, and Stirling Energy Systems Inc., which filed for
Chapter 7 bankruptcy late in September.
SOLYNDRA LLC: Manager Bonus Plan Draws Fire From Fired Workers
--------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that Solyndra LLC's
fired workers have protested plans to set aside $500,000 for
bonuses for senior managers and are calling for immediate
liquidation of the company.
About Solyndra LLC
Founded in 2005, Solyndra LLC is a U.S. manufacturer of solar
photovoltaic solar power systems specifically designed for large
commercial and industrial rooftops and for certain shaded
agriculture applications. The Company had 968 full time employees
and 211 temporary employees. Solyndra has sold more than 500,000
of its panels since 2008 and generated cumulative sales of over
$250 million.
Fremont, California-based Solyndra and affiliate 360 Degree Solar
Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at
least the third solar company to seek court protection from
creditors since August 2011.
Solyndra owed secured lenders $783.8 million, including
$527.8 million to the U.S. government pursuant to a federal loan
guarantee, and held assets valued at $859 million as of the
Petition date. The U.S. Federal Financing Bank, owned by the U.S.
Treasury Department, is the Company's biggest lender.
In the Chapter 11 cases, the Debtors are pursuing a two-pronged
strategy to effectuate either a sale of their business to a
"turnkey" buyer who may acquire substantially all of Solyndra's
assets or, if the Debtors are unable to identify any such
potential buyers, an orderly liquidation of the Debtors' assets
for the benefit of their creditors.
Judge Mary F. Walrath presides over the Debtors' cases. The
Debtors are represented by Pachulski Stang Ziehl & Jones LLP as
legal adviser. AlixPartners LLP serves as noticing claims and
balloting agent. Imperial Capital LLC serves as the company's
investment banker and financial adviser. The Debtors also tapped
former Massachusetts Governor William F. Weld, now with the law
firm McDermott Will & Emery, to represent the company in
government investigations and related litigation. BDO Consulting,
a division of BDO USA, LLP, as financial advisor and BDO Capital
Advisors, LLC, serves as investment banker for the creditors'
panel. Johnson Associates, Inc. acts as compensation advisor.
Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors of Solyndra LLC. The Committee has tapped
Blank Rome LLP as counsel.
Solyndra is at least the fourth solar company to seek court
protection from creditors since August 2011. Other solar firms
are Evergreen Solar and start-up Spectrawatt Inc., both of which
filed in August, and Stirling Energy Systems Inc., which filed for
Chapter 7 bankruptcy late in September.
SOMERSET PROPERTIES: Final Hearing Today on Use of Cash Collateral
------------------------------------------------------------------
United States Bankruptcy Judge Stephani W. Humrickhouse, in a
thirteenth interim consent order, authorized Somerset Properties
SPE, LLC, to use its rents, including the Held Funds, which
lenders contend are their cash collateral, to make payment of its
ordinary and necessary operating expenses including utilities,
payroll, and maintenance.
CSFB 2001-CP4 Bland Road, LLC, and CSFB 2001-CP4 Falls of Neuse,
LLC, claim to be the current holders of loans to Somerset, each in
the original principal amount of $15,500,000, and further claim
that the loans are secured by liens on all of Somerset's assets.
The Debtor may use cash collateral totaling $664,092 for
December 2011, unless otherwise prohibited by this Order, for the
purposes and subject to the limits as set forth in the budget for
such period, subject to a 10% line item variance.
The Debtor's use of Cash Collateral will expire or terminate on
the earliest of: (i) the date the Debtor ceases operations of its
business; (ii) the non-compliance or default of the Debtor with
any terms and provisions of this Order; or (iii) another order
concerning cash collateral is entered, or (iv) dismissal or
conversion of this chapter 11 case to Chapter 7.
The Debtor is not authorized to use cash collateral for legal fees
and expenses, management fees, or other professional fees of any
kind, absent court approval.
To the extent of cash collateral used by the Debtor, the lenders
are granted liens in all of the Debtor's post-petition leases,
rents, royalties, issues, profits, revenue, income, deposits,
securities, and other benefits of the Properties to the same
extent, priority, and perfection as they have in such collateral
pre-petition.
The lenders are authorized and directed to continue receiving in
the Lockbox accounts at U.S. Bank all post-petition payments by
tenants of the Properties as they did pre-petition; provided that
all such payments will be wired monthly by U.S. Bank to the DIP
account and Debtor will make adequate protection payments to
Lenders from the DIP account, all in accordance with the terms of
the Oct. 13, 2011 Consent Order. Thus far, U.S. Bank has complied
with its obligation under the Consent Order to wire funds from the
Lockbox accounts to the DIP Account, and the Debtor has complied
with its obligation under the Consent Order to make adequate
protection payments to the lenders.
Unless a further consent order is entered, a final hearing will be
held on Thursday, Jan. 19, 2012, at 11:00 A.M. in Raleigh, North
Carolina.
About Somerset Properties
Raleigh, North Carolina-based Somerset Properties SPE, LLC, owns
six office buildings in Raleigh, North Carolina. The Company
filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C.
Case No. 10-09210) on Nov. 8, 2010. William P. Janvier, Esq., at
Janvier Law Firm, PLLC, in Raleigh, N.C., represents the Debtor as
bankruptcy counsel. The law firm of Blanchard, Miller, Lewis &
Isley, P.A., in Raleigh, N.C., is the Debtor's special counsel.
The Company disclosed $36,496,015 in assets and $28,825,521 in
liabilities as of the Chapter 11 filing.
SONYA PORRETTO: Judge Converts Case to Chapter 7 Proceeding
-----------------------------------------------------------
Harvey Rice at Houston Chronicle reports that a federal bankruptcy
judge in December 2011 converted Sonya Porretto's bankruptcy case
from Chapter 11 to Chapter 7, allowing Porretto Beach to be sold
to pay creditors. According to the report, Ms. Porretto ran out
of money to pay her lawyer and is representing herself as she
struggles to save a property that has been held by her family for
50 years.
The report says Ms. Porretto plead before the court to reconsider,
She gave her reasons for failing to file a plan of reorganization
or attend a key hearing.
The report notes Ms. Porretto listed the value of Porretto Beach
at $10 million, but Randy Williams, the Chapter 7 trustee
appointed to oversee the sale, says he is unsure of the true
value.
The report adds that V.J. Tramonte, owner of Joe Tramonte Realty
in Galveston, said Mr. Williams has asked his advice and will meet
with him to discuss the sale. Selling the property may be
difficult because of the lawsuit and uncertainty about several
issues, including whether regulations will allow construction on
the beach in front of the seawall.
SOVRAN LLC: Will Seek Plan Confirmation at March 5 Hearing
----------------------------------------------------------
Sovran, LLC, has filed a modified Disclosure Statement explaining
its proposed Plan of Reorganization.
The hearing to approve the Plan currently set for March 5, 2012,
at 9:00 a.m.
According to the Disclosure Statement, the Debtor will continue to
market the property and obtain sales of all or any part of the
property. The liens securing claims will be modified in
accordance with the Bankruptcy Code's provisions to permit sales
of partial parcels, with deed release provisions specifying the
amount to be paid to the holders of secured claims based on a
certain price per square foot.
According to the Debtor's calculations, at the current market
prices, the sale of approximately 35% of the property will retire
the entire amount of secured claims. In the unlikely event that
no sale has taken place by the sixth anniversary of the Plan's
confirmation date, then 50 acres of property will be transferred
to the holder of the first position deed of trust, subject to the
tax claims of Lewis County. The value of that portion of the
property, as determined by the Bankruptcy Court, will be applied
to interest and costs and then to the principal of the claim.
At each subsequent six month anniversary a similar transfer will
occur if there are no intervening sales.
The holders of Class 3 allowed unsecured claims will receive pro
rata distributions from the Unsecured Creditor's Fund.
The members in the Debtor will retain their membership interest,
but no distributions will be made to any members until all
creditors have been paid in full.
Payments will be made at various times after confirmation. The
Debtor relates that most recent appraisal values the property at
over $18,000,000, which indicates that there is an equity cushion
protecting the secured creditors of over $10,000,000. The deed
release calculations were based on fully retiring the outstanding
secured debt, including interest after the sale of approximately
7 million square feet of property. At all points during the sell
out process all the secured creditors will be adequately protected
by the substantial equity cushion in the property, which Benaroya
and Timberland Bank dispute.
A copy of the Disclosure Statement dated Dec. 20, 2011, is
available for free at http://bankrupt.com/misc/sovranllc.doc58.pdf
Lender's Objections
As reported in the TCR on Jan. 12, 2012, first-position secured
lender Benaroya and second-position secured lender Timberland Bank
objected to the approval of the disclosure statement filed in
Sovran LLC's Chapter 11 case, citing:
A. Value of Raw Land is Degraded by Plan.
Benaroya and Timberland Bank object to the statements that the
value of the raw land is greater than the total indebtedness, that
there is an equity cushion and adequate protection, and that the
sale of the raw land into smaller parcels will increase the value
of the raw land assembled. Further, Benaroya is of the opinion
that the raw land will decrease in value under the proposed plan.
B. Condition and Performance of Debtor in Chapter 11
Proceedings.
Benaroya and Timberland Bank submit that all evidence of
offers, letters of intent, and loan commitments, by whom, the
price or commitment amount, and when, for the subject raw land for
the past two years should be identified. Further, any post-
petition obligations should be identified by the name of the
creditor (including Lewis County property taxes), when the
obligation was incurred, the amount of the obligation if monetary
and the nature of the obligation if not monetary, and whether each
obligation has been satisfied or not and by whom. The Debtor
should also identify whether liability and property insurance is
in place as primary or additional insureds, or both, the nature of
the insurance, the insurers, the policy limits of each policy and
deductibles, and whether the premiums have been paid and by whom.
C. Debtors' Insiders.
Non-insiders, who were not present at the Aug. 11, 2011
Debtor's examination, need to know that 99% of the scheduled
unsecured claims are held by insiders. A description of the
business, familial, and lending relationship with each scheduled
unsecured creditor, except for the Bader Martin accounting firm
and the DeTray Family Partnership, needs to be disclosed so that
the non-insider voters understand that the proposed plan is for
the benefit of the equity-interest holders who plan to retain
their interest and who are not supplying new value during the life
of the proposed plan.
D. Miscellaneous Objections.
For the purposes of voting, Benaroya and Timberland Bank should
each receive a ballot for Class 2 voting and a ballot for Class 3
voting should the Court find that one or both are partially
secured claimants. Also, much of the remaining portions of the
proposed disclosure statement and related plan were hastily filed
in response to Benaroya's motion for relief from stay on the
ground that this bankruptcy case was a bad-faith filing. Debtor's
counsel should revise its proposed disclosure statement to
incorporate the necessary adequate information and to correct the
many typographical errors.
About Sovran LLC
Sovran LLC, is a development company that was formed to acquire
and develop a large commercial piece of real property located
between Military Road and Interstate 5, in Winlock, Washington.
Sovran filed a Chapter 11 petition (Bankr. W.D. Wash. Case
No. 11-45107) on June 23, 2011. Richard G. Birinyi, Esq., and
Lawrence R. Ream, Esq., at Bullivant Houser Bailey PC, in Seattle,
Washington, serve as counsel. In its schedules, the Debtor
disclosed $18,968,289 in assets and $11,619,450 in liabilities.
SP NEWSPRINT: Wants More Time to Fashion Chapter 11 Proposal
------------------------------------------------------------
Dow Jones' DBR Small Cap reports that SP Newsprint Holdings LLC is
seeking more time to control its bankruptcy case, saying it can't
adequately negotiate a Chapter 11 plan until it sorts out its sale
process.
About SP Newsprint
Greenwich, Conn.-based SP Newsprint Holdings LLC -- aka Bulldog
Acquisition I LLC, Bulldog Acquisition II LLC, Publishers Papers,
Southeastern Paper Recycling and SP Newsprint Merger LLC -- and
three affiliates, SP Newsprint Co. LLC, SP Recycling Corporation
and SEP Technologies L.L.C, filed for Chapter 11 bankruptcy
(Bankr. D. Del. Lead Case No. 11-13649) on Nov. 15, 2011.
SP Newsprint Holdings LLC is a newsprint company controlled by
polo-playing mogul Peter Brant. It is one of the largest
producers of newsprint in North America. SP Recycling
Corporation, a Georgia corporation and the Debtors' other
operating company, was established in 1980 as a means for SP to
secure a ready supply of recycled fiber, a key raw material for
its newsprint.
SP Newsprint is the second Brant-owned newsprint company to tumble
into bankruptcy proceedings in recent years. Current and former
affiliated entities are Bear Island Paper Company, L.L.C., Brant
Industries, Inc., F.F. Soucy, Inc., Soucy Partners Newsprint,
Inc., White Birch Paper Company.
Judge Christopher S. Sontchi presides over the case. Joel H.
Levitin, Esq., Maya Peleg, Esq., and Richard A. Stieglitz Jr.,
Esq. -- jlevitin@cahill.com , mpeleg@cahill.com and
rstieglitz@cahill.com -- at Cahill Gordon & Reindel LLP serve as
the Debtors' lead counsel. Lee E. Kaufman, Esq., and Mark D.
Collins, Esq. -- kaufman@rlf.com and collins@RLF.com -- at
Richards, Layton & Finger, P.A., serve as the Debtors' Delaware
counsel. AlixPartners LLP serves as the Debtors' financial
advisors and The Garden City Group Inc. serves as the Debtors'
claims and noticing agent. In its petition, SP Newsprint Holdings
estimated $100 million to $500 million in assets and debts. The
petitions were signed by Edward D. Sherrick, executive vice
president and chief financial officer.
The U.S. Trustee for Region 3 was scheduled to convene a meeting
of creditors of SP Newsprint on Jan. 16, 2012.
SWAMI SHREE: Can Use S4H's Cash Collateral Through Feb. 17
----------------------------------------------------------
Bankruptcy Judge David E. Rice signed off on a consent order
authorizing Swami Shree LLC to use cash collateral of S4H
Hospitality LLC, its senior creditor, and to grant adequate
protection. First-Citizens Bank & Trust Company is the Debtor's
junior creditor. Pursuant to the Order, the Debtor is authorized
to use Cash Collateral according to a budget for the period from
Jan. 12, 2012 through Feb. 17, 2012. As further adequate
protection to the Senior Creditor, the Debtor will continue
monthly payments to the Senior Creditor of $15,000. The Debtor
also will continue to escrow funds on a monthly basis to be
applied to the Property Improvement Plan expenditures required by
its franchisor. The Debtor's monthly escrow for this purpose will
be $8,500. A copy of the Consent Order dated Jan. 13, 2012, is
available at http://is.gd/zDF3rEfrom Leagle.com.
About Swami Shree
Based in Media, Pennsylvania, Swami Shree, LLC, owns and operates
a La Quinta franchised hotel, containing 70 suites and amenities,
located at 304 Belle Hill Road, in Elkton, Maryland. Swami Shree
filed a Chapter 11 petition (Bankr. D. Md. Case No. 11-25973) on
Aug. 4, 2011. Curtis C. Coon, Esq., at Coon & Cole, LLC, serves
as the Debtor's bankruptcy counsel. The Debtor scheduled $338,140
in assets and $4,861,772 in debts. The petition was signed by
Vasudev Patel, managing member.
Attorney for senior lender SS4H Hospitality LLC is Alan M.
Grochal, Esq., at Tydings & Rosenberg LLP, in Baltimore, Maryland.
Attorney for junior lender First-Citizens Bank & Trust Company is
Peter J. Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in
Wilmington, Delaware.
SWARTVILLE LLC: TD Bank Fails in Bid to Dismiss or Convert Case
---------------------------------------------------------------
Bankruptcy Judge Stephani W. Humrickhouse denied a request by TD
Bank, N.A. to dismiss or convert the Chapter 11 case of Swartville
LLC, holding that "the totality of the circumstances of this case
do not suggest bad faith in the debtor's filing of its bankruptcy
petition." A copy of the Court's Jan. 12 memorandum opinion is
available at http://is.gd/OqjvLJfrom Leagle.com.
Pre-bankruptcy, Swartville executed a promissory note in favor of
TD Bank for $1,615,000. The note is guaranteed by the debtor's
three members, Joel Tomaselli, Glenn Garrett, and Garry Silivanch,
and is secured by 90 acres of the debtor's real property in Castle
Hayne, North Carolina. The debtor intended to sell the Property
after preparing it for development, but encountered financial
troubles upon the recent decline in the real estate market and did
not make improvements to the property. As a result, the debtor
defaulted on the note and TD Bank made a written demand on the
debtor for payment on Oct. 12, 2011.
Rather than initiating a lawsuit against the debtor for collection
of the note or a foreclosure proceeding against the Property, TD
Bank filed a lawsuit against the guarantors in New Hanover County
Superior Court on Oct. 18, 2011. Soon after, the debtor filed for
bankruptcy.
The debtor also owns 3.29 acres of other real property in Castle
Hayne, which is unencumbered and is valued at $133,351.20 on the
debtor's Schedule A. This second parcel is not adjacent to the
disputed Property, but is located nearby. The debtor's Schedule F
lists both insider and non-insider non-priority unsecured
creditors with claims totaling $811,404. All three guarantors are
listed on Schedule F as the holders of non-priority, unsecured
claims.
The debtor filed its plan of reorganization on Nov. 17, 2011, and
proposes to surrender the disputed Property to TD Bank in
satisfaction of the debt under the note, which had a balance of
$1,624,530 as of the petition date. Should the court determine
that the value of the disputed Property is less than the amount of
TD Bank's claim, the plan provides that the bank may seek payment
of any deficiency from the debtor's equity holders, pursuant to
their joint and several guaranty agreements only, and expressly
does not treat such deficiency as an unsecured claim.
Wilmington, North Carolina-based Swartville LLC filed a Chapter 11
petition (Bankr. E.D.N.C. Case No. 11-08676) on Nov. 14, 2011.
Judge Stephani W. Humrickhouse oversees the case. Trawick H.
Stubbs, Jr., at Stubbs & Perdue, P.A., serves as the Debtor's
counsel. The Debtor scheduled assets of $1,933,404 and
liabilities of $2,437,272. The petition was signed by Joel
Tomaselli, member/manager.
TEE INVESTMENT: Will Seek Plan Confirmation at March 5 Hearing
--------------------------------------------------------------
On Dec. 22, 2011, the U.S. Bankruptcy Court for the District of
Nevada entered an amended order approving Tee Investment Company's
First Amended Disclosure Statement filed in the Debtor's
bankruptcy case on Sept. 9, 2011.
All objections to the Debtor's Amended Plan of Reorganization will
be filed and served upon Debtor's counsel on or before Feb. 20,
2012.
The Debtor will file any responsive pleading to objections to the
Debtor's Amended Plan of Reorganization on or before Feb. 27,
2012.
All ballots for the acceptance or rejection of Debtor's Amended
Plan of Reorganization must be received by Debtor's counsel on or
before March 1, 2012.
The Debtor will file a ballot summary pursuant to Local Rule 3018
on or before March 2, 2012.
The confirmation hearings with be conducted on March 5, 2012, at
2:00 p.m. and will continue to the morning of March 6, 2012 if
necessary.
The last day for creditors to file complaints against the Debtor
for nondischargeability of a debt, pursuant to 11 U.S.C. Section
1141(d) and Fed. R. Bankr. P. 4004(a), will be Jan. 26, 2012, and
notice of said bar date will be given to creditors and other
parties in interest.
As reported in the TCR on Sept. 26, 2011, the First Amended Plan
provides that the amount of WBCMT 2006 - C27 Plumas Street, LLC's
secured claim will be the lesser of the value of Lakeridge East
Apartments, located at 6155 Plumas Street, in Reno, Nevada,
determined as of the Confirmation Date or the WBCMT Note Balance.
WBCMT will retain its security interest in the Property.
The WBCMT Secured Claim will bear interest at the rate of 4.25%
per annum from and after the Effective Date, or, in the event of
objection by the Class 1 creditor, other rate as the Court will
determine is appropriate after considering the evidence at the
Confirmation Hearing. On or before the 15th day of each and every
month, commencing on the 15th day of the next month following the
Effective Date, the Debtor will distribute to WBCMT an amount
equal to the normal amortized monthly payment based upon the WBCMT
Interest Rate and a 30-year amortized mortgage term.
The balance owed on the WBCMT Secured Claim, together with any and
all accrued interest, fees and costs due thereunder, will be paid
on or before 10 years following the Effective Date, or other date
as may be proposed by the Debtor and approved by the court at the
Confirmation Hearing.
The WBCMT Note and the WBCMT Deed of Trust will remain in full
force and effect.
In the event of a default by the Debtor under the Plan, and in the
event Debtor fails to cure the default within 15 business days
after delivery of notice to the Debtor and to Debtor's counsel,
WBCMT will be entitled to enforce all of the terms of the WBCMT
Deed of Trust and the WBCMT Note, in addition to all rights
available under Nevada law, including, without limitation,
foreclosure upon the Property and the opportunity to credit bid
the entire amount of the WBCMT Note at any foreclosure sale.
In the event WBCMT makes a timely election under Section 1111(b)
(2) of the Bankruptcy Code, and the same is allowed by the Court,
then as of the WBCMT Maturity Date, the balance paid to WBCMT will
be the greater of i) the balance owed on the WBCMT Secured Claim
as of the WBCMT Maturity Date; or ii) the WBCMT Note Balance less
the total of all payments received by WBCMT Post Petition.
A full-text copy of the First Amended Disclosure Statement, dated
September 9, is available for free at:
http://ResearchArchives.com/t/s?76fc
About Tee Investment
Reno, Nevada-based Tee Investment Company, Limited Partnership,
dba Lakeridge Apartments, owns the property known as the Lakeridge
East Apartments, 6155 Plums Street, Reno, Nevada. The Debtor
filed for Chapter 11 bankruptcy protection on March 1, 2011
(Bankr. D. Nev. Case No. 11-50615). The Debtor estimated its
assets and debts at $10 million to $50 million.
Alan R. Smith, Esq., at the Law Offices of Alan R. Smith, in Reno,
Nev., represents the Debtor as counsel.
Affiliates Lakeridge Centre Office Complex, LP (Bankr. D. Nev.
10-53612), West Shore Resort Properties III, LLC (Bankr. D. Nev.
10-51101), and West Shore Resort Properties, LLC, and (Bankr. D.
Nev. 10-50506) filed separate Chapter 11 petitions.
TMP DIRECTIONAL: Has Interim Authorization to Use Cash Collateral
-----------------------------------------------------------------
U.S. Bankruptcy Judge Mary F. Walrath, on Dec. 7, 2011, granted
TMP Directional Marketing, LLC, et al., interim authority to use
cash collateral of General Electric Capital Corporation, as L/C
Issuer, Lender and Prepetition Agent, and the other Prepetition
Secured Parties, to fund the orderly wind-down of the Debtors'
businesses.
In June 2011, the Debtor repaid in full all outstanding principal,
interest and fees (other than accrued unpaid professional fees and
expenses) under the Prepetition Loan Documents. As of the
Petition Date, the only outstanding Prepetition Obligations are
contingent and unliquidated indemnification obligations under
section 9.1 of the Prepetition Credit Agreement and certain other
reimbursable costs and expenses of the Prepetition Secured
Parties, including attorneys' fees and expenses, as of the
Petition Date.
The Prepetition Obligations are secured by liens on substantially
all of the existing and after-acquired property of the TMP
Directional, a pledge of 100% of the interests of TMP Directional,
50% of the equity interests of non-Debtor affiliate TMP
Intellectual Property Holdings, LLC, and 65% of the equity
interests of non-Debtor affiliated TMP Ltd. (Canada).
The Debtors are authorized to use cash collateral until the
earlier to occur of (i) 60 days after entry of this Interim Order;
the first calendar day following the commencement of any
Challenge; or (iii) confirmation of any plan of liquidation.
As adequate protection, solely to the extent on any diminution in
value of the Prepetition Obligations, the Prepetition Agent, for
the benefit of itself and the other Prepetition Secured Parties,
is granted additional and replacement liens (the ?Adequate
Protection Liens?) on any and all presently owned and hereafter
acquired assets of the Debtors of the Debtors and their estates,
except that the Collateral will not include any action of Claim
under Chapter 5 of the Bankruptcy Code.
As further adequate protection, the Prepetition Agent and the
Prepetition Secured Parties are granted as and to the extent
provided by sections 503(b) and 507(b) of the Bankruptcy Code an
allowed superpriority administrative expense claim in each of the
cases and any successor cases, junior only to the Carve Out.
A copy of the Interim Cash Collateral Order is available for free
at http://bankrupt.com/misc/tmpdirectional.doc51.pdf
About TMP Directional
TMP Directional Marketing LLC, along with affiliates, filed for
bankruptcy on Dec. 5, 2011 (Bankr. D. Del. Case No. 11-13835) with
plans to liquidate its remaining assets according to a prepackaged
plan. TMP specialized in placing ads in the yellow pages of local
telephone books. Before ceasing substantially all of operations
in early April 2011, TMP was one of the leading providers of
directed search marketing in the United States, employing nearly
400 people in 10 offices throughout the country.
TMP was spun off from Monster Worldwide Inc. Audax Group acquired
TMP in the 2005 spinoff. Monster isn't in bankruptcy and is no
longer involved in the company.
The Chapter 11 plan has been accepted by more than 95% of voting
creditors. The Company estimated that unsecured creditors will
collect 11% to 18% of what they are owed. Secured lenders
required TMP to pay them off earlier this year, helping cause the
business to shut down. Unsecured creditors, asserting
$112 million in claims, formed an ad hoc committee to negotiate
the Chapter 11 plan. The Ad Hoc Committee consists of AT&T Yellow
Pages Holdings LLC; Genesis Publisher Services, SuperMedia LLC,
Dex One Corporation, Directory Publishing Solutions Inc., Local
Insight Media Holdings Inc., National Solutions, Inc., Yellowbook,
Inc., and Names and Numbers. Other members may be added from time
to time.
James A. Stempel, Esq., and Ryan Blaine Bennett, Esq.,
at Kirkland & Ellis LLP; and Domenic E. Pacitti, Esq., and Morton
Branzburg, Esq., at Klehr Harrison Harvey Branzburg LLP, serve as
the Debtors' counsel. CRG Partners Group LLC serves as the
Debtors' restructuring advisors. Epiq Bankruptcy Solutions LLC
serves as claims and balloting agent. The petition was signed by
Timothy P. Nugent, vice president, assistant secretary, and
assistant treasurer.
In its schedules, the Debtor disclosed $33,058,884 in assets and
$120,832,845 in liabilities.
Affiliates filing for bankruptcy are TMP DM, Inc. (Case No.
11-13836) and TMP DM, LLC (Case No. 11-13837).
General Electric Capital Corp., as agent to the prepetition
lenders, is represented by: Peter Knight, Esq., at Latham &
Watkins LLP, and Eric Lopez Schnabel, Esq., at Dorsey & Whitney
LLP. Lender CapitalSource is represented by Mary Bucci, Esq., at
Brown Rudnick LLP, and Jeffrey C. Wisler, Esq., at Connolly Bove
Lodge & Hutz LLP. The Ad Hoc Committee is represented by Brett H.
Miller, Esq., and William M. Hildbold, Esq., at Morrison &
Foerster LLP.
TOM MARTINO: Judge Orders Auction of Airplane Hangar
----------------------------------------------------
David Migoya at the Denver Post reports that Judge Michael Romero
ordered on Jan. 10, 2012, the auction of an airplane hangar
belonging to troubleshooter Tom Martino over the radio host's
objections.
According to the report, Judge Romero said Mr. Martino should have
filed for protection under Chapter 11 of the Bankruptcy Code if he
wanted to control how his assets were disbursed. Instead, Mr.
Martino filed for Chapter 7 protection Sept. 2, which leaves to a
court-appointed trustee how to liquidate his assets.
The report says trustee Simon Rodriguez sought the court's
permission to sell the hangar in Watkins, which Mr. Martino has
fought to keep. The hangar, which Mr. Martino's lawyer says is
worth about $180,000, was scheduled to be sold publicly Jan. 18,
2012.
The report says lawyer Stephen Berken said at a Jan. 10 hearing
that Mr. Martino is settling many of his debts, deals that should
free him from much of the $70 million he said he owes and remove
any need to sell the hangar. Most of the debts were the result of
real-estate deals that tanked with the economy.
The hangar is held by Colorado Airplane Hanger Co., which Mr.
Martino owns.
TRIDENT MICROSYSTEMS: Hiring Bankruptcy Professionals
-----------------------------------------------------
BankruptcyData.com reports that Trident Microsystems filed with
the U.S. Bankruptcy Court motions to retain:
-- PricewaterhouseCoopers (Contact: Johan Furstenberg) as
tax advisor and independent auditor at these hourly
rates: partner at $650, senior managing director at 650,
director at 550, manager at 475, senior associate at 375
and associate at 275;
-- Union Square Advisors (Contact: Joe Josephson) as
investment banker for these fees: a $75,000 monthly fee
and a sale transaction fee ranging from the greater of
$1.5 million to 2 million or 1.8% of the aggregate value
of the sale transaction; and
-- DLA Piper (Contact: Richard A. Chesley) (US) as counsel
at these hourly rates: partner at $730 to 950, associate
at 415 to 605 and paralegal at 230.
About Trident Microsystems
Sunnyvale, California-based Trident Microsystems, Inc., currently
designs, develops, and markets integrated circuits and related
software for processing, displaying, and transmitting high quality
audio, graphics, and images in home consumer electronics
applications such as digital TVs, PC-TV, and analog TVs, and set-
top boxes. The Company has research and development facilities in
Beijing and Shanghai, China; Freiburg, Germany; Eindhoven and
Nijmegen, The Netherlands; Belfast, United Kingdom; Bangalore and
Hyderabad, India; Austin, Texas; and Sunnyvale, California. The
Company has sales offices in Seoul, South Korea; Tokyo, Japan;
Hong Kong and Shenzhen, China; Taipei, Taiwan; San Diego,
California; Mumbai, India; and Suresnes, France. The Company also
has operations facilities in Taipei and Kaoshiung, Taiwan; and
Hong Kong, China.
Trident Microsystems and its Cayman subsidiary, Trident
Microsystems (Far East) Ltd. filed for Chapter 11 bankruptcy
protection (Bankr. D. Del. Lead Case No. 12-10069) on Jan. 4,
2011. Trident said it expects to shortly file for protection in
the Cayman Islands.
Judge Christopher S. Sontchi presides over the case. Lawyers at
DLA Piper LLP (US) serve as the Debtors' counsel. FTI Consulting,
Inc., is the financial advisor. Kurtzman Carson Consultants is
the claims and notice agent.
Trident had $309,992,980 in assets and $39,607,591 in liabilities
as of Oct. 31, 2011. The petition was signed by David L.
Teichmann, executive VP, general counsel & corporate secretary.
US AIRWAYS: Navigate Challenging Market With JetBlue
----------------------------------------------------
After the airline industry struggled for most of 2011, analysts
argue the industry could be in for more difficulties this year.
International Air Transport Association (IATA) says that airlines
are expected to generate overall profits of $3.5 billion in 2012,
down from the estimated $6.9 billion in 2011 and $16 billion in
2010. A recent press release issued by Sabre Airline Solutions
argues that government regulation regarding airport security,
emissions and taxes is one of top issues negatively impacting
global airlines' revenues over the next 18 months. Five Star
Equities examines investing opportunities in the Airlines industry
and provides Stock research on US Airways Group Inc. LCC -1.32%
and JetBlue Airways Corporation JBLU -1.61%. Access to the full
company reports can be found at:
http://www.fivestarequities.com/LCC
http://www.fivestarequities.com/JBLU
One of the top headlines of 2011 in the airlines industry was the
bankruptcy filing of American Airlines' parent company, AMR
Corporation. Jamie Baker, an airline analyst with J.P Morgan,
argues that the Chapter 11 filing by AMR will lead to further
shrinkage of what was once the nation's largest airline.
According to a report from Investopedia, bankruptcy filings by
American's competitors "have helped them become more cost
effective." United cut overall expenses by $7 billion, while Delta
Airlines, which filed for bankruptcy in 2005, reduced its fleet
size by 11 percent, employees by 17 percent and terminated its
pension plans for pilots.
Five Star Equities releases regular market updates on the Airlines
industry so investors can stay ahead of the crowd and make the
best investment decisions to maximize their returns. Take a few
minutes to register with us free at www.fivestarequities.com and
get exclusive access to our numerous stock reports and industry
newsletters.
Last week The Wall Street Journal reported that Delta Airlines, US
Airways Group Inc. and private-equity firm TPG Capital are
separately assessing possible bids for AMR Corporation, with hopes
"that AMR's troubles present another opportunity for airline
consolidation," the Journal reports.
After its merger with Northwest Airlines in 2008, Delta became the
world's largest carrier by traffic, though it was later eclipsed
when United Airlines merged with Continental to become America's
number one airline.
Five Star Equities provides Market Research focused on equities
that offer growth opportunities, value, and strong potential
return. We strive to provide the most up-to-date market
activities. We constantly create research reports and newsletters
for our members. Five Star Equities has not been compensated by
any of the above-mentioned companies. We act as an independent
research portal and are aware that all investment entails inherent
risks. Please view the full disclaimer at:
http://www.fivestarequities.com/disclaimer
VALLEY TRANSPORTATION: Fitch Holds Rating on $17MM Bonds at 'BB'
----------------------------------------------------------------
Fitch Ratings has taken the following action on Chesterfield
Valley Transportation Development District, MO's (the district)
bonds:
-- $17.4 million series 2006 transportation sales tax revenue
bonds affirmed at 'BB'.
The Rating Outlook is revised to Stable from Negative.
The bonds are limited obligations payable solely from the net
revenues of a 0.375% sales tax on retail sales collected within
the district, subject to annual appropriation. The sales tax
expires February 2031, well after the final maturity of the bonds.
There is also a cash-funded debt service reserve fund (DSRF) with
a $2.03 million funding requirement; the DSRF is currently fully
funded.
Sales tax collections fell by nearly 16% between fiscals 2007 and
2010. The decline was mostly attributable to the recession but
also due partly to a one-month payment lag in 2010 which was
created when the state assumed sales tax collection
responsibilities from the City of Chesterfield in early 2010. In
addition, the 2006 issue was structured based on overly-optimistic
sales tax projections, leading to marginal debt service coverage
from the onset.
As a result of the recent declines, sales tax revenues were
insufficient to meet debt service requirements, forcing the
district to draw upon the DSRF in each of the past two years.
These drawdowns totaled $182,000 in 2010 and $450,000 in 2011 to
cover the larger April principal and interest payments. In both
years, the DSRF requirement was restored before the end of the
year as sales taxes were received and deposits were made per the
flow of funds. District officials project that annual DSRF draws
will be required through 2015 based on their 2% sales tax growth
assumptions. After 2015, debt service drops significantly until
2026.
Projected 2011 sales tax collections cover about 97% of annual
debt service requirements through 2015. The bonds are unusually
structured with a large bullet maturity in 2026 and interest
payments only from 2017 through 2025. All excess sales tax
revenues are required to redeem the 2026 bullet via an
extraordinary redemption feature. Assuming projected 2011 sales
tax levels and no subsequent growth, Fitch's projection indicates
that pledged revenues and DSRF monies should be more than adequate
to cover all debt service requirements. Under Fitch's stress
scenario, sales tax collections could decline by 6% in 2012 and an
additional 3.5% annually over the life of the issue and, with
remaining DSRF monies, still meet all debt service requirements.
The district encompasses a sizable 7.43 square mile area located
along a five-mile corridor of Interstate 64 in western St. Louis
County. As of December 2011, there were 350 retail establishments
located within the district, comprising one of the largest
concentrations of big box retailers in the region. As to be
expected with big box retailers, there is point-of-sale
concentration, with the top 15 payers accounting for 60% of total
2010 sales tax collections. The district contains in excess of
seven million square feet of development with over 10% of the
total land area still undeveloped. Recently, three large stores,
which are expected to be top 20 sales tax generators, opened
within the district. In addition, the district officials are
considering several proposals to construct outlet malls within the
district which could potentially attract new shoppers.
County employment levels have exhibited substantial growth in
2011. September 2011 employment increased by 3.7% over September
2010 levels, reducing county unemployment rates to 8.4% from 9.5%.
The county supports a diverse economic base, which includes Boeing
and Washington University. Wealth indices are well above the
state and national averages.
The pledged sales tax is subject to annual appropriation by the
district. However, non-appropriation is unlikely as the pledged
sales tax cannot be used for non-district purposes. Furthermore,
if the district fails to adopt a budget in any year, the prior
year's budget will remain in effect.
The bond documents are loosely written allowing for liberal
issuance of additional parity debt. However, officials indicate
that there are no plans to issue more bonds and an independent
board composed of various county and city officials would be
expected to curtail excessive issuance.
WINGATE AIRPORT: Can Borrow $2 Million From Lender's Mortgage
-------------------------------------------------------------
U.S. Bankruptcy Judge Mike K. Nakagawa approved, on Dec. 14, 2011,
the amended motion of Wingate Airport South, LLC, for
authorization to borrow $2,000,000 from Lender's Mortgage to be
used, among other purposes, to satisfy all of the consensual and
mechanic's liens against the Real Property owned by Debtor located
355 East Warm Springs Road, Las Vegas, Nevada.
The Court ordered that that should the Loan be funded and the
proceeds of the Loan be paid, the Debtor will, within 30 days of
the entry of this Order, lodge with this Court, an Order
dismissing the bankruptcy proceeding.
A copy of the Stipulated Order is available for free at:
http://bankrupt.com/misc/wingateairport.doc134.pdf
About Wingate Airport
Las Vegas, Nevada-based Wingate Airport South, LLC, owns real
property located at 355 E. Warm Springs Road, Las Vegas, Nevada,
consisting of a partially completed Wyndham Hotel and land. The
Company filed for Chapter 11 bankruptcy protection (Bankr. D. Nev.
Case No. 11-11950) on Feb. 11, 2011. In its schedules, the Debtor
disclosed $12,000,000 in assets and $9,497,529 in liabilities as
of the Petition Date. Neil J. Beller, Esq., at Neil J. Beller,
Ltd., in Las Vegas, represents the Debtor as counsel.
On June 20, 2011, the Bankruptcy Court entered an order
determining that the Debtor is a "Single Asset Real Estate" Debtor
pursuant to 11 U.S.C. Sections 101(51B) and 362(D)(3).
As reported in the TCR on Nov. 25, 2011, the Debtor filed a
disclosure statement explaining its Chapter 11 Plan of
Reorganization.
The secured claim of Multibank 2009-1 CRE Venture, LLC will be
paid the sum of $1,100,000 for a full release of all claims it has
against Debtor. Allowed Equity interest holders will retain their
interest.
* International Shipping Companies Seek Harbor in Chapter 11
------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that shipping companies
whose vessels deliver their cargo to ports around the world are
increasingly considering one safe harbor in particular when
relationships with creditors turn stormy: U.S. bankruptcy court.
* USAID Ducks Contractor Claim Over Delayed Shipment
----------------------------------------------------
Rachel Slajda at Bankruptcy Law360 reports that a contract appeals
board tossed a contractor claim against the U.S. Agency for
International Development over a month-long delay in a shipment of
grain to Ethiopia, ruling that the contractor's bankruptcy
reorganization precludes it from pursuing the claim.
According to Law360, the Civilian Board of Contract Appeals found
that the contractor, USCS Chemical Chartering LLC, was no longer
the same entity who first brought the claim in 2009, having since
declared and emerged from Chapter 11 bankruptcy.
* Great American Group Appoints Mike Wyse as New Vice President
---------------------------------------------------------------
Great American Group, LLC has appointed Mike Wyse to a new vice
president position at the company.
In the new role, Mr. Wyse will focus on generating revenue through
the cross-promotion of all Great American Group's services with an
emphasis on the retail services sector.
"We are extremely pleased to have Mike Wyse join the Great
American Group team," said Scott Carpenter, president of Great
American?s Retail Division. "Mike has a wealth of experience in
helping clients find solutions to their complex business needs,
along with a unique understanding of our business. Our company
has grown steadily since our founding in 1971, so the time is
right for Mike to come on board and contribute toward our
continued growth."
Mr. Wyse will work from the company's 42nd Street offices in New
York City.
Mr. Wyse brings more than 12 years of experience to the position.
He previously served as a director at Zolfo Cooper in New York
City, where he worked with numerous corporations on a wide variety
of strategic and operational issues.
Mr. Wyse received a bachelor's degree in administration and a
master's degree in business administration from St. Bonaventure
University in New York.
About Great American Group, LLC
Great American Group, LLC -- http://www.greatamerican.com-- is a
provider of asset disposition solutions and valuation and
appraisal services to a wide range of retail, wholesale and
industrial clients, as well as lenders, capital providers, private
equity investors and professional service firms. Great American
Group has offices in Atlanta, Boston, Chicago, Dallas, London, Los
Angeles, New York and San Francisco.
* Neuberger Berman Eyes Midmarket Debt With Distressed Fund
-----------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that after raising
about $441 million for a publicly listed distressed debt fund,
Neuberger Berman is taking a stab at raising a similar fund in a
private offering, according to prospective investors.
* Cadwalader's Palmer, Troop and Mirick Join Pillsbury
------------------------------------------------------
Pillsbury Winthrop Shaw Pittman LLP on Jan. 17 said a group of
prominent insolvency and restructuring partners is joining its
firmwide Insolvency & Restructuring practice, and will be resident
in the firm's New York office.
Deryck Palmer, Andrew Troop and Christopher Mirick arrive from
Cadwalader, Wickersham & Taft, where Palmer was the Co-Chairman of
the financial restructuring department and a former member of the
firm's Management Committee.
Deryck Palmer was a recent delegate to the UNCITRAL Working Group
V (Insolvency Law) on behalf of the International Law Institute.
He was also selected as one of the lead counsels to the U.S.
Treasury Department in the General Motors restructuring and
represented the Detroit Public Schools, the sixth-largest school
district in the country, in one of the most successful municipal
restructurings, out of court. He and his team concentrate their
practice on the representation of all parties involved in
proceedings under Chapter 11 of the Bankruptcy Code, as well as in
workout, corporate restructuring and bankruptcy matters. They have
handled some of the largest and most significant matters in the
country during the past three decades, including LyondellBasell
Industries in its reorganization case; Millennium Custodial Trust;
Apollo Health Street; and Citibank in the Lehman Brothers Holdings
Chapter 11 case. Other recent clients include Omnicare, JPMorgan
Chase and numerous private equity firms and hedge funds with
investments in distressed credits.
The team represents both creditors and debtors, including
representation of lenders extending credit to troubled borrowers
and entities investing in or acquiring troubled companies or
assets from distressed owners, in various industry sectors
including automotive, retail, real estate, energy, health care,
hospitality and manufacturing. They enhance Pillsbury's
capabilities in these key industry sectors and bring significant
additional experience representing municipal and health care
entities in debt restructurings and working with traditional and
non-traditional lenders in creating new lending products for
municipalities.
"Insolvency & Restructuring is a key area of strategic growth for
Pillsbury. The addition of these tremendously accomplished lawyers
broadens, deepens and transforms our reach and enhances our
ability to deliver the highest quality service to our clients,"
said Pillsbury Firm Chair Jim Rishwain. "Deryck's team is a
perfect addition to our insolvency group's established practice.
They bring extensive experience in the financial services sector,
a key industry for Pillsbury and our clients. Our Finance, M&A,
Litigation, Tax and Real Estate practices, among others, will
benefit with the addition of this elite team and contribute to the
creation of a world-class bankruptcy practice."
"Pillsbury's insolvency group and the firm's industry strengths
form a very dynamic platform for our combined team," Mr. Palmer
noted. "Together, we are excited about our practice's remarkable
opportunities and focus on client service as challenges in this
field become more complex across different types of
organizations."
Recognized as one of the "Leading Law Firm Rainmakers" by the
Minority Corporate Counsel Association, Mr. Palmer is active in
the American Bankruptcy Institute and the Turnaround Management
Association. For more than 10 years, he served as a foreign
advisor on U.S. bankruptcy law to the People's Republic of China
(PRC) and was instrumental in the drafting of the new PRC
Enterprise Bankruptcy Law. An Adjunct Professor of Law at New York
Law School, Mr. Palmer received his B.A. from Syracuse University
and his J.D. from the University of Michigan.
Andrew Troop and Christopher Mirick have also received accolades
for their work. Most recently, Legal 500 recognized Troop for
being "extremely capable, effective and creative," and IFLR1000
reported that clients praise Mr. Mirick for demonstrating
"tremendous leadership skills" and having "very innovative
solutions." Troop and Mirick focus their practices on business
reorganizations and debtors' and creditors' rights. Troop's
practice includes representing nonprofit organizations within his
primary focus of debtors' and creditors' rights. He received his
J.D. from Northwestern University School of Law and his B.A. from
Amherst College. Mr. Mirick has represented private equity
clients in connection with acquiring, selling and reorganizing
both domestic and international portfolio companies. He has also
counseled mezzanine lenders and private equity investors in
defending fraudulent-transfer and breach-of-duty claims asserted
in connection with companies to which they have extended credit or
invested equity. A graduate of Amherst College, he holds a J.D.
from Harvard Law School.
Pillsbury's Insolvency & Restructuring practice is a well-
integrated team of lawyers practicing in New York, Los Angeles,
San Francisco, Washington DC, San Diego and Orange County
(together with colleagues in London, Tokyo and Shanghai). Practice
members represent a broad spectrum of clients dealing with
complex, sophisticated and distressed financial situations,
including the representation of distressed entities as well as
clients that lend to distressed entities. Recent bankruptcy
representation includes the equity committees in Solutia and
Tronox, the debtor in Congoleum, and clients with signification
positions in the Washington Mutual, Delta Airlines, Heller Ehrman
and Coudert Brothers cases.
Messrs. Palmer, Troop, and Mirick may be reached at:
Deryck Palmer, Esq.
Andrew Troop, Esq.
Christopher Mirick, Esq.
PILLSBURY WINTHROP SHAW PITTMAN LLP
1540 Broadway
New York, NY 10036-4039
Tel: (212) 858-1555
Fax: (212) 973-7434
E-mail: deryck.palmer@pillsburylaw.com
andrew.troop@pillsburylaw.com
christopher.mirick@pillsburylaw.com
Pillsbury is a full-service law firm with a keen industry focus on
energy and natural resources, financial services, real estate &
construction, and technology.
* Kristian Gluck Among New Partners at Fulbright & Jaworski
-----------------------------------------------------------
Fulbright & Jaworski L.L.P. has promoted seven senior associates
and three senior counsel to join the firm's global partnership.
The appointment of new partners in the firm's London and Riyadh
practices, alongside eight new partners based in Fulbright's
offices across the United States, reinforces further Fulbright's
international reach and global expertise.
The new partners are: Tonja De Sloover, Houston; Sarah Devine,
Washington, D.C.; Sam Eversman, Riyadh; Kristian Gluck, Dallas;
John Jennings, San Antonio; Michael Loesch, Washington, D.C.;
Michael Pikiel, New York; Miriam Quinn, Dallas; Anita Tarar,
Dallas; and Jehan-Philippe Wood, London.
"We are delighted to welcome this outstanding group of new
partners, who come from diverse backgrounds and practice areas
ranging from commercial litigation, regulatory compliance and
complex restructurings to cross-border corporate issues," said
Steven B. Pfeiffer, the Chair of Fulbright's Executive Committee.
"Each appreciates the firm's commitment to our clients and strives
to offer exceptional service. These new partners represent the
future of Fulbright."
Among the new partners is Kristian Gluck, who has a diverse,
sophisticated practice ranging from representing creditors, such
as banks, hedge funds and large institutional lenders, to debtors
and committees in complex restructurings and reorganizations, both
in and out of bankruptcy court, and related litigation. His
experience includes nationally significant cases involving energy
companies. Mr. Gluck received his J.D. from George Mason
University School of Law and his B.A. from the University of North
Carolina at Chapel Hill.
Fulbright & Jaworski L.L.P.
Founded in 1919, Fulbright & Jaworski L.L.P. --
http://www.fulbright.com/-- is a leading full-service
international law firm, with nearly 900 lawyers in 17 locations in
Austin, Beijing, Dallas, Denver, Dubai, Hong Kong, Houston,
London, Los Angeles, Minneapolis, Munich, New York, Pittsburgh-
Southpointe, Riyadh, San Antonio, St. Louis and Washington, D.C.
Fulbright provides a full range of legal services to clients
worldwide.
The 2012 BTI survey of FORTUNE 1000 general counsel chose
Fulbright to its "The BTI Client Service 30," and Corporate Board
Member magazine named Fulbright among the top 20 corporate law
firms in the U.S. in its survey of board members of public
companies.
* MorrisAnderson Promotes Dave Bagley to Principal
--------------------------------------------------
MorrisAnderson disclosed that David M. Bagley, 45, has been
promoted to principal, effective Jan. 1, 2012. In this senior
leadership role, Bagley will leverage his extensive turnaround and
financial advisory expertise to continue to grow MorrisAnderson's
client portfolio, especially in the franchise industry practice
group. Bagley will also be instrumental in further expanding
MorrisAnderson's industry practice groups and coordinating the
firm's national business development strategy.
"Dave's promotion to principal is a reflection of his solid track
record in transitioning distressed companies to strong, profitable
organizations," said Dan Dooley, principal and chief executive
officer, MorrisAnderson. "Dave's diverse background and industry
experience have helped MorrisAnderson grow our franchise industry
practice group, which has served major industry players such as
Sonic, Bar Louie, Restaurants America, Popeyes and Granite City
Food & Brewery."
Bagley joined MorrisAnderson in 2001 as managing director. He has
more than 20 years of experience assisting financially distressed
and underperforming companies as a consultant and financial
advisor. Bagley also regularly provides interim management support
by assuming the role of CEO, CFO and CRO for transitioning
companies, and was honored as one of Turnarounds & Workouts'
"People to Watch" in 2010.
One of Bagley's noteworthy achievements was leading a turnaround
plan for Roman, Inc., a religious giftware distributor. Bagley
and his team transformed the $66 million company, which was losing
more than $3 million annually, into a $40 million company with $2
million in annual profits by identifying lucrative business units,
restructuring the business and implementing an effective inventory
management system. With Bagley's counsel and advice, Roman, Inc.
received the Turnaround Management Association (TMA) Chicago
Chapter's "Medium Turnaround of the Year" award and the TMA
National "Mid-Sized Turnaround of the Year" honorable mention
award.
"During his more than 10 years at MorrisAnderson, Dave has
consistently achieved successful outcomes for financially
distressed and underperforming companies. His promotion to
principal recognizes his contributions to the company, which
ensure that MorrisAnderson will continue to provide unparalleled
results and the highest quality of customer service," said Howard
Korenthal, principal and chief operating officer, MorrisAnderson.
Bagley is a Certified Turnaround Professional (CTP) and an active
member of the Turnaround Management Association, Association of
Insolvency & Restructuring Advisors and American Bankruptcy
Institute. He earned a master's degree in business administration
from the J. L. Kellogg Graduate School of Management at
Northwestern University and a bachelor's degree from DePauw
University in Greencastle, Ind.
About MorrisAnderson
Chicago-based MorrisAnderson has offices in New York, Atlanta,
Toronto, Cleveland, St. Louis, Minneapolis and Florida. The firm's
service offerings include performance improvement and financial
advisory services, interim and turnaround management and
litigation support. MorrisAnderson emphasizes hands-on
involvement with middle market companies in transition.
* Paul Lang Becomes Bucks County's American Inns Court Member
-------------------------------------------------------------
Young, Klein & Associates would like to announce that Paul Lang,
MBA, Esquire, has been accepted as a member of the American Inns
Court (AIC) of Bucks County.
The American Inns of Court are designed to improve the skills,
professionalism and ethics of the bench and bar. An American Inn
of Court is an amalgam of judges, lawyers, and in some cases, law
professors and law students. Each Inn meets approximately once a
month both to "break bread" and to hold programs and discussions
on matters of ethics, skills, and professionalism.
Mr. Lang currently practices law for Young, Klein & Associates, a
firm whose areas of practice include bankruptcy, Bucks County
criminal/DUI defense, Social Security Disability, family law and
injury cases. Additionally, Paul is the founder of the Bucks
County Bankruptcy Law Firm where he provides Chapter 7 and Chapter
13 assistance to individuals and families in Bucks County who are
financially struggling. Paul has a five-star rating from his
clients and the highest Avvo rating for all Bucks County
bankruptcy lawyers.
Paul Lang is licensed to practice law in Pennsylvania and New
Jersey and is a graduate of the United States Coast Guard Academy
and the University of Maryland, where he received his MBA and law
degree.
Prior to practicing law, Mr. Lang was an investment banker, an
officer in the U.S. Coast Guard who was retired as a decorated
veteran after a line of duty law enforcement accident, and a 2006
State Senate Candidate. He remains active in the local community
as a member of the Ancient Order of the Hibernians, a volunteer
with Wills for Heroes, and a Truman National Security Fellow.
* Sidley Austin Among of Law360's Bankruptcy Group of 2011
----------------------------------------------------------
Hilary Russ at Bankruptcy Law360 reports that after Dynegy
Holdings LLC filed for Chapter 11 protection in November, shadowed
by bondholders' doubts about the validity of its filing, its
attorneys from Sidley Austin LLP were soon able to resolve the
dispute and keep the case on track, helping the firm earn a place
among Law360's Bankruptcy Groups of 2011.
When it comes to representing debtors in the midst of large,
controversial and closely watched cases, Dynegy is just the tip of
the iceberg for Sidley's bankruptcy lawyers, Law360 relates.
* Weil Gotshal One of Law360's Bankruptcy Group of 2011
-------------------------------------------------------
Amanda Bransford at Bankruptcy Law360 reports that the bankruptcy
team at Weil Gotshal & Manges LLP grabbed public attention in 2011
with its resolution of massive restructurings that shook the world
after the recent financial crisis, including those of Lehman
Brothers Holdings Inc. and General Motors Co., earning the team a
spot as one of Law360's Bankruptcy Groups of 2011.
* Recent Small-Dollar & Individual Chapter 11 Filings
-----------------------------------------------------
In Re Castle Exploration Company, Inc.
aka Summit Energy Corporation
Bankr. D. Dela. Case No. 12-10120
Chapter 11 Petition filed January 6, 2012
See http://bankrupt.com/misc/deb12-10120.pdf
represented by: Ann C. Cordo, Esq.
Morris Nichols Arsht & Tunnell LLP
E-Mail: acordo@mnat.com
In Re Calypso Commercial Holdings, LLC
Bankr. M.D. Fla. Case No. 12-00073
Chapter 11 Petition filed January 6, 2012
See http://bankrupt.com/misc/flmb12-00073.pdf
represented by: Jason A. Burgess, Esq.
The Law Offices of Jason A. Burgess, LLC
E-Mail: jason@jasonaburgess.com
In Re Superior Tractor Company
Bankr. M.D. Fla. Case No. 12-00077
Chapter 11 Petition filed January 6, 2012
See http://bankrupt.com/misc/flmb12-00077.pdf
represented by: Jason A. Burgess, Esq.
The Law Offices of Jason A. Burgess, LLC
E-Mail: jason@jasonaburgess.com
In Re Litter Control, Inc.
Bankr. N.D. Ga. Case No. 12-50511
Chapter 11 Petition filed January 6, 2012
See http://bankrupt.com/misc/ganb12-50511.pdf
represented by: Jerry A. Daniels, Esq.
Jerry A. Daniels, LLC
E-Mail: jerry@danielstaylor.com
In Re Cue Cafe, Inc.
Bankr. N.D. Ill. Case No. 12-00384
Chapter 11 Petition filed January 6, 2012
See http://bankrupt.com/misc/ilnb12-00384.pdf
represented by: Keevan D. Morgan, Esq.
Morgan & Bley, Ltd.
E-Mail: kmorgan@morganandbleylimited.com
In Re Legacy Estates, LLC
Bankr. W.D. Ky. Case No. 12-30058
Chapter 11 Petition filed January 6, 2012
See http://bankrupt.com/misc/kywb12-30058.pdf
represented by: Richard A. Schwartz, Esq.
Kruger & Schwartz
E-Mail: rick@ks-laws.com
In Re Wasatch Front Investments, LLC
Bankr. D. Utah Case No. 12-20223
Chapter 11 Petition filed January 8, 2012
See http://bankrupt.com/misc/utb12-20223.pdf
represented by: Claire Summerhill, Esq.
Claire Summerhill Attorney At Law
E-Mail: clairesummerhill@hotmail.com
In Re Wallace Seafood Traders, Inc.
Bankr. S.D. Ala. Case No. 12-00087
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/alsb12-00087.pdf
represented by: Robert M. Galloway, Esq.
Galloway Wettermark Everest Rutens &
Gaillard
E-Mail: bgalloway@gallowayllp.com
In Re Ayami Fortunes, LLC
Bankr. C.D. Calif. Case No. 12-10603
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/cacb12-10603.pdf
represented by: Paul Mammarella, Esq.
Law Office of Paul Mammarella
E-Mail: mlaw714@live.com
In Re LA Slauson Swapmeet Inc.
dba Slauson Super Mall
dba L.A. Slauson Swapmeet LLC
Bankr. C.D. Calif. Case No. 12-10801
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/cacb12-10801.pdf
represented by: Gene W. Choe, Esq.
The Tym Firm
E-Mail: maria@choicelaw.org
In Re Owner Management Service, LLC
aka Trust Holding Service Co.
aka Bill Pay Service
aka Boston Holding
Bankr. C.D. Calif. Case No. 12-10231
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/cacb12-10231.pdf
represented by: Ronald D. Tym, Esq.
The Tym Firm
E-Mail: RTym@Tymfirm.com
In Re Peak 'N Prairie Landscape & Reclamation, Inc.
Bankr. D. Colo. Case No. 12-10321
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/cob12-10321p.pdf
See http://bankrupt.com/misc/cob12-10321c.pdf
represented by: Lee M. Kutner, Esq.
Law Office of Paul Mammarella
E-Mail: lmk@kutnerlaw.com
In Re Custom Colors Paint & Body, Inc.
Bankr. S.D. Fla. Case No. 12-10577
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/flsb12-10577.pdf
represented by: Brad Culverhouse, Esq.
The Law Offices of Jason A. Burgess, LLC
E-Mail: bradculverhouselaw@gmail.com
In Re A & A Industrial Services, LLC
Bankr. D. Kan. Case No. 12-20031
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/ksb12-20031.pdf
represented by: Byron Loudon, Esq.
E-Mail: byronloud@aol.com
In Re Jerry Cardullo Ironworks, Inc.
Bankr. E.D.N.Y. Case No. 12-70062
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/nyeb12-70062.pdf
represented by: Salvatore LaMonica, Esq.
LaMonica Herbst and Maniscalco
E-Mail: sl@lhmlawfirm.com
In Re Ennis Enterprises, Inc.
Bankr. E.D. N.C. Case No. 12-00169
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/nceb12-00169.pdf
represented by: J.M. Cook, Esq.
E-Mail: J.M.Cook@jmcookesq.com
In Re Lake Louise, LLC
Bankr. W.D. N.C. Case No. 12-30049
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/ncwb12-30049.pdf
represented by: Michael Leon Martinez, Esq.
Grier Furr & Crisp
E-Mail: mmartinez@grierlaw.com
In Re Cambridge Search LLC
Bankr. E.D. Pa. Case No. 12-10168
Chapter 11 Petition filed January 9, 2012
filed pro se
In Re Horus Alexandros Corporation
Bankr. D. Puerto Rico Case No. 12-00069
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/prb12-00069.pdf
represented by: Michel A. Rachid, Esq.
Michel A. Rachid Law Office
E-Mail: michelarlaw@hotmail.com
In Re Staci Properties, Ltd.
Bankr. W.D. Texas Case No. 12-50110
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/txwb12-50110.pdf
represented by: William R. Davis, Jr, Esq.
Langley & Banack, Inc.
E-Mail: wrdavis@langleybanack.com
In Re Powerhouse Alexandria, Inc.
Bankr. E.D. Va. Case No. 12-10133
Chapter 11 Petition filed January 9, 2012
See http://bankrupt.com/misc/vaeb12-10133.pdf
represented by: Katherine Martell, Esq.
Claire Summerhill Attorney At Law
E-Mail: kmartell@viennalawgroup.com
In Re Maria Permito
Bankr. N.D. Calif. Case No. 12-30086
Chapter 11 Petition filed January 10, 2012
In Re Loran Kelley
Bankr. S.D. Calif. Case No. 12-00246
Chapter 11 Petition filed January 10, 2012
In Re Dennis Severson
Margaret Severson
Bankr. D. Colo. Case No. 12-10345
Chapter 11 Petition filed January 10, 2012
In Re Lana Banbury
Bankr. D. Colo. Case No. 12-10369
Chapter 11 Petition filed January 10, 2012
In Re Mark Gunther
Bankr. D. Md. Case No. 12-10367
Chapter 11 Petition filed January 10, 2012
In Re Heath Lewis
Bankr. D. Nev. Case No. 12-10255
Chapter 11 Petition filed January 10, 2012
In Re Helen Marie Simonsen, Inc.
Bankr. S.D.N.Y. Case No. 12-35047
Chapter 11 Petition filed January 10, 2012
See http://bankrupt.com/misc/nysb12-35047.pdf
represented by: Devon Salts, Esq.
Salts Law Office
E-Mail: devonsalts@hotmail.com
In Re M.S.Y. Construction Corp.
Bankr. S.D.N.Y. Case No. 12-22042
Chapter 11 Petition filed January 10, 2012
See http://bankrupt.com/misc/nysb12-22042.pdf
represented by: Steven D. Hamburg, Esq.
E-Mail: kshamburg@optonline.net
In Re Millard Presser
Jennifer Presser
Bankr. S.D. Ohio Case No. 12-30093
Chapter 11 Petition filed January 10, 2012
In Re 641 Santiago Real Estate Ventures, LLC
Bankr. E.D. Pa. Case No. 12-10195
Chapter 11 Petition filed January 10, 2012
See http://bankrupt.com/misc/paeb12-10195.pdf
represented by: Thomas Daniel Bielli, Esq.
O'Kelly Ernst Bielli & Wallen
E-Mail: tbielli@oelegal.com
In Re B&W Holdings, LLC
Bankr. M.D. Ala. Case No. 12-30085
Chapter 11 Petition filed January 11, 2012
See http://bankrupt.com/misc/almb12-30085.pdf
represented by: Von G. Memory, Esq.
Memory & Day
E-Mail: vgm@memorylegal.com
In Re John Jacob
Bankr. D. Ariz. Case No. 12-00567
Chapter 11 Petition filed January 11, 2012
In Re Longfellow Investments, Inc.
Bankr. D. Ariz. Case No. 12-00492
Chapter 11 Petition filed January 11, 2012
See http://bankrupt.com/misc/azb12-00492.pdf
represented by: Alan R. Solot, Esq.
Tilton & Solot
E-Mail: arsolot@tiltonandsolot.com
In Re Harry Nguyen
Bankr. N.D. Calif. Case No. 12-40272
Chapter 11 Petition filed January 11, 2012
In Re Buford Simmons
Bankr. S.D. Calif. Case No. 12-00290
Chapter 11 Petition filed January 11, 2012
In Re Nichols & Nichols, Inc.
Bankr. D. Dela. Case No. 12-10195
Chapter 11 Petition filed January 11, 2012
See http://bankrupt.com/misc/deb12-10195.pdf
represented by: Ryan M. Ernst, Esq.
O'Kelly & Ernst, LLC
E-Mail: rernst@oelegal.com
In Re Fredric Newman
Bankr. S.D. Fla. Case No. 12-10770
Chapter 11 Petition filed January 11, 2012
In Re Monica Brown
Bankr. N.D. Ill. Case No. 12-00757
Chapter 11 Petition filed January 11, 2012
In Re Chase Group, LLC Chase Group, LLC
aka Chase Group of Michigan, LLC
Bankr. E.D. Mich. Case No. 12-40626
Chapter 11 Petition filed January 11, 2012
See http://bankrupt.com/misc/mieb12-40626.pdf
represented by: Coral M. Watt, Esq.
E-Mail: attywatt@aol.com
In Re Ray Richards
Bankr. E.D. Mich. Case No. 12-40585
Chapter 11 Petition filed January 11, 2012
In Re Buick Inc.
Bankr. D. Neb. Case No. 12-80056
Chapter 11 Petition filed January 11, 2012
See http://bankrupt.com/misc/neb12-80056.pdf
represented by: James W. Crampton, Esq.
E-Mail: jwcrampton@hotmail.com
In Re Ignacio Estrada
Bankr. D. Nev. Case No. 12-10322
Chapter 11 Petition filed January 11, 2012
In Re Vincent DeLorenzo
Bankr. D. N.J. Case No. 12-10621
Chapter 11 Petition filed January 11, 2012
In Re 4RD Enterprises, Inc.
Bankr. N.D. N.Y. Case No. 12-10049
Chapter 11 Petition filed January 11, 2012
See http://bankrupt.com/misc/nynb12-10049.pdf
represented by: Stephen J. Waite, Esq.
Waite & Associates PC
E-Mail: swaite@waite-associates.com
In Re James Bloom
Emilee Bloom
Bankr. N.D. Ohio Case No. 12-30097
Chapter 11 Petition filed January 11, 2012
In Re Monty Jantzer
Bankr. D. Ore. Case No. 12-60069
Chapter 11 Petition filed January 11, 2012
In Re Peanut & Pals, Inc.
Bankr. E.D. Pa. Case No. 12-10235
Chapter 11 Petition filed January 11, 2012
See http://bankrupt.com/misc/paeb12-10235p.pdf
See http://bankrupt.com/misc/paeb12-10235c.pdf
represented by: Matthew S. Connor, Esq.
Armstrong & Carosella, P.C.
E-Mail: mconnor@armstrongcarosella.com
In Re Industrial Laser Systems, LLC
Bankr. W.D. Pa. Case No. 12-20110
Chapter 11 Petition filed January 11, 2012
See http://bankrupt.com/misc/pawb12-20110p.pdf
See http://bankrupt.com/misc/pawb12-20110c.pdf
represented by: Jeffrey A. Hulton, Esq.
Brandt, Milnes & Rea
E-Mail: jeffhulton@covad.net
In Re Chayo's Beer Depot, Inc.
aka Chayo's Beer Depot
Bankr. W.D. Texas Case No. 12-30058
Chapter 11 Petition filed January 11, 2012
See http://bankrupt.com/misc/txwb12-30058.pdf
represented by: E. P. Bud Kirk, Esq.
Brandt, Milnes & Rea
E-Mail: budkirk@aol.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise
Marie Varquez, 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 2012. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
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