/raid1/www/Hosts/bankrupt/TCR_Public/120208.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, February 8, 2012, Vol. 16, No. 38
Headlines
1000 CRESCENT: Case Summary & 15 Largest Unsecured Creditors
155 EAST: Combined Plan Hearing Scheduled for March 2
1801 ROBERT FULTON: Court Rules on Dispute With Condo Owners
AES EASTERN: Chapter 11 Prompts Fitch to Drop 'D' Rating on Certs.
AMERICAN GREETINGS: S&P Retains 'BB+' Rating on 7.375% Sr. Notes
AMERICAN LASER: Completes Sale of Assets to Versa Capital
ARCHBROOK LAGUNA: Deal OK'd to Resolve Dispute with Gordon Bros.
BEYOND OBLIVION: News Corp. et al. Provide $750T for Wind-Down
BIOSCRIP INC: S&P Affirms 'B' Corporate Credit Rating
BOUNDARY BAY: Committee Can Retain Crowe Horwarth as Accountants
BOUNDARY BAY: Plan Outline Hearing Continued Until March 14
BRAGG COMMUNICATIONS: S&P Assigns 'BB-' Corporate Credit Rating
BTA BANK: Creditors Form Steering Committee for Debt Talks
CALIFORNIA STATEWIDE: S&P Raises Refunding Bond Rating to 'BB+'
CAMARILLO PLAZA: Has Access to Cash Collateral Until May 31
CAPITAL CITY VENTURES: St. Paul Athletic Club Bldg. in Ch. 11
CAPITAL CITY: Case Summary & 17 Largest Unsecured Creditors
CATALYST PAPER: Seeks U.S. Court OKs $175MM Bankruptcy Loan
CDC CORP: Gets Final OK to Hire Moelis as Financial Advisor
CDW LLC: S&P Retains 'CCC+' Rating on Senior Unsecured Notes
CHEF SOLUTIONS: Wants Exclusive Filing Period Extended to May 1
CHEF SOLUTIONS: Wants Lease Decision Period Extend to May 1
CHRIST HOSPITAL: Files for Chapter 11l; Bidding War Looms
CHRIST HOSPITAL: Voluntary Chapter 11 Case Summary
CIRCUIT CITY: 4th Cir. Affirms Ruling on Employee Class Claim
CIT GROUP: DBRS Assigns 'B' Rating to New Series C Notes
COSTA BONITA: Case Summary & 21 Largest Unsecured Creditors
COUGAR OIL: Enters CCAA After Buyer Fails to Acquire Asset
CPM PROPERTIES: Case Summary & 20 Largest Unsecured Creditors
DAYTON INDUSTRIAL: Files for Chapter 11 Bankruptcy Protection
DESERT GARDENS: Wants Court's Determination on SARE Status
EAGLE POINT: Founder Files Own Chapter 11 Bankruptcy
ELLIPSO INC: Objections to Plan Outline Overruled
ENECO INC: Utah Ct. Affirms Dismissal of Claim Buyer's Suit
ENNIS COMMERCIAL: Unsecured Creditors to Be Paid from Assets Sale
E*TRADE FINANCIAL: DBRS Confirms Issuer Debt Rating at 'B'
FAIRGREEN CAPITAL: Files Chapter 11 Reorganization Plan
FBH INVESTMENTS: Voluntary Chapter 11 Case Summary
FILENE'S BASEMENT: Equity Holders Want Exclusivity Termination
GALP CYPRESS: Section 341(a) Meeting Scheduled for Feb. 9
GALP CYPRESS: U.S. Trustee Wants Case Converted or Dismissed
GALP CYPRESS: Court Approves Matthew Hoffman as Attorney
GEOMET INC: Gets NASDAQ Global Market Listing Deficiency Notice
GFI/GLOBAL FINANCIAL: Case Summary & 5 Largest Unsecured Creditors
GMKHOURY, INC.: Case Summary & 10 Largest Unsecured Creditors
H&H BAGELS: GA Keen Sells Former Property for $11 Million
HARRISBURG, PA: Receiver Offers Plan to Deal With $300MM Debt
HAYES LEMMERZ: S&P Affirms 'B' Corporate Credit Rating
HMC/CAH CONSOLIDATED: Taps Denman & Company as Financial Advisor
HMC/CAH CONSOLIDATED: Wants Plan Filing Period Extended to June 6
HMC/CAH CONSOLIDATED: Committee Taps J.H. Cohn as Fin'l Advisor
HMC/CAH CONSOLIDATED: Creditors Tap Lentz Clark as Local Counsel
HMC/CAH CONSOLIDATED: Marissa Lane Named Patient Care Ombudsman
HMC/CAH CONSOLIDATED: Files Schedules of Assets and Liabilities
IH-2 LLC: Hotel Lowry Owner Files for Chapter 11 in St. Paul
IH-2, LLC: Case Summary & 20 Largest Unsecured Creditors
J.C. EVANS: Court Orders Case Dismissal Effective Feb. 15
JEFFERSON COUNTY: Bondholders Sue Over Reduced Payments
JENNIFER CONVERTIBLES: Board Wants $5MM Bad Faith Suit Axed
JETBLUE AIRWAYS: S&P Cuts Ratings on Two Cert. Classes to 'B+'
JO-LIN REALTY: Voluntary Chapter 11 Case Summary
JOBSON MEDICAL: Case Summary & 20 Largest Unsecured Creditors
LAS VEGAS MONORAIL: Files New Chapter 11 Plan of Reorganization
LE RIVAGE: Hotel Operator Files for Chapter 11 Bankruptcy
LEE ENTERPPRISES: Reports $14.6-Mil. Net Income in Dec. 25 Quarter
LEE ENTERPRISES: Updates Annual Report on Successful Refinancing
LENOX 126: Court Confirms Third Amended Plan of Reorganization
LICHTIN/WADE: Files for Chapter 11 Bankruptcy Protection
LICHTIN/WADE, LLC: Case Summary & 20 Largest Unsecured Creditors
LOS ANGELES DODGERS: Asks Court to Toss Beaten Fan's Claim
LYDIA CLADEK: Investors Will Get Stock in Integrity Auto
LYKAT, INC.: Case Summary & 9 Largest Unsecured Creditors
M WAIKIKI: Gets OK to Obtain $550,000 from Davidson Family Trust
MEDFORD CROSSINGS: Dist. Court Affirms Accord With Principals
MEDICAL PROPERTIES: S&P Affirms 'BB' Corporate Credit Rating
MF GLOBAL: Trustee Has Traced Transfers of $105 Billion
MGT CAPITAL: NYSE AMEX LLC Accepts Plan of Compliance
MIMOSA CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors
MERIDIAN SHOPPING: Bankruptcy Filing Halts Foreclosure
MMD COMPONENTS: Case Summary & 20 Largest Unsecured Creditors
PACIFIC READY: Case Summary & 20 Largest Unsecured Creditors
NAKNEK ELECTRIC: Bristol Bay Resigns as Equity Committee Member
NEWPAGE CORP: Union Workers Seek to Recoup $168 Million
OILSANDS QUEST: Alberta Company Files Chapter 15 in New York
OILSANDS QUEST: To Sell Eagles Nest for C$4.4 Million
OILSANDS QUEST: Chapter 15 Case Summary
PACIFIC MONARCH: Taps White & Case as Special Tax Counsel
PACIFIC MONARCH: Proposes LTSP as Tax Accountants
PACIFIC MONARCH: Proposes GWT as Labor Counsel
PENDLETON COUNTY: S&P Cuts Rating on Series 1993B Bonds to 'B'
PENINSULA HOSPITAL: Feb. 14 Hearing on Examiner Accountant Motion
PENINSULA HOSPITAL: Committee Wants Co-Exclusivity With Debtor
PENINSULA HOSPITAL: Examiner Can Employ Certilman Balin as Counsel
PENN CAMERA: Strikes Deal to Reject Springfield Commons Lease
POSTMEDIA NETWORK: S&P Cuts Long-Term Corp. Credit Rating to 'B'
PROVIDENCE, R.I.: Mayor Says City Could Face Bankruptcy
PURE BEAUTY: Committee Challenge Period Extended to Feb. 7
PURVI PETROLEUM: Hamadani Can't Introduce Late Evidence on Appeal
QA3 FINANCIAL: Nebraska Judge Affirms Catlin Stay Relief Order
REALOGY CORP: S&P Assigns 'B-' Rating to $593MM First Lien Notes
REOSTAR ENERGY: Has Access to Cash Collateral Until March 6
SAVANNAH OUTLET: Disclosure Statement Hearing Moved to Feb. 14
SHINER CHEMICALS: Court to Hear Reinstatement on Feb. 9
SHOREBANK CORP: Seeks to Hire Skadden Arps as Counsel
SP NEWSPRINT: Taps PwC to Audit 2011 Financial Statements
SP NEWSPRINT: Taps Raymond James as Investment Banking Advisor
SP NEWSPRINT: Wants Until June 12 to Decide on Property Leases
SOLYNDRA LLC: Republicans Want DOJ to Take Action on Firm
SPLIT YIELD: DBRS Cuts Rating on Class I Preferred Shares to 'D'
SPRINGLEAF FINANCE: S&P Lowers Issuer Credit Rating to 'CCC'
SUBEX LTD: To Seek Bond Maturity Extension
TBS INTERNATIONAL: Files for Chapter 11 With Prepack Plan
TBS INTERNATIONAL: Case Summary & 50 Largest Unsecured Creditors
TEMPLO MARANATHA: Case Summary & 20 Largest Unsecured Creditors
VALENTINE CON: Case Summary & 20 Largest Unsecured Creditors
THORNBURG MORTGAGE: Agrees to SEC Order to Deregistered Shares
UNITED RETAIL: Taps AlixPartners as Restructuring Advisor
UNITED RETAIL: Hires Kirkland & Ellis as Bankruptcy Counsel
UNITED RETAIL: Donlin Recono to Serve as Claims & Admin. Agent
UNITED RETAIL: Peter J. Solomon Hired as Investment Banker
VAN CORTLANDT: Case Summary & 20 Largest Unsecured Creditors
WALLDESIGN INC: Wants to Hire BSW & Assoc. as Financial Advisor
WASHINGTON MUTUAL: Oregon Objects to Seventh Amended Joint Plan
WASHINGTON MUTUAL: Equity Committee Nominates Four Board Members
WESTERN COMMUNICATIONS: Files 1st Amended Plan of Reorganization
WINDRUSH SCHOOL: Judge Conditionally Approves Deal With Kaufman
* Bankruptcy Filings Slide in Calendar Year 2011
* Distressed Debt Ratio Declined in January but Remains Elevated
* ISDA to Decide If Five Major US Banks Go Insolvent
* Top Law Firms Blast Ch. 11 Fee Guideline Changes
* Bennett Silverberg Joins Brown Rudnick's NY Office as Partner
* Jeffrey MacDonald Joins Binghman's New York Office as Partner
* Sal Naro to Launch Coherence Capital Partners LLC
* Thompson Hine Adds Two Lateral Partners for New York Office
* Upcoming Meetings, Conferences and Seminars
*********
1000 CRESCENT: Case Summary & 15 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: 1000 Crescent, LLC
c/o David K. Gottlieb
Crowe Horwath LLP
15233 Ventura Boulevard, Ninth Floor
Sherman Oaks, CA 91403-2250
Tel: (818) 501-5200
Bankruptcy Case No.: 12-11056
Affiliates that simultaneously filed Chapter 11 petitions:
Debtor Case No.
------ -------
631 Mountain, LLC 12-11058
9521 Sunset, LLC 12-11060
Lasky Properties, Inc. 12-11063
Brownwood Creek, LLC 12-11064
Pacific Bluewood, LLC 12-11065
Centered Dots, LLC 12-11066
Atlantic Shamrock, LLC 12-11067
Georges Marciano Holdings, Inc. 12-11068
Chapter 11 Petition Date: February 2, 2012
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Jeremy V. Richards, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
10100 Santa Monica Boulevard, Suite 1100
Los Angeles, CA 90067
Tel: (213) 277-2346
Fax: (310) 201-0760
E-mail: jrichards@pszjlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $0 to $50,000
The petition was signed by David K. Gottlieb, manager.
Affiliate that previously filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Georges Marciano 11-10426 10/27/09
1000 Crescent's List of Its 15 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Legal Vision Consulting Group Trade Debt $11,089
1801 Century Park East, Suite 3500
Los Angeles, CA 90067
Employment Development Department Trade Debt $9,693
P.O. Box 989061
W. Sacramento, CA 95798
State Farm Insurance Trade Debt $6,964
P.O. Box 680001
Dallas, TX 75368
Alan Schwab Pharmacy Trade Debt $6,575
At&T Trade Debt $4,303
JP Morgan Chase Trade Debt $3,141
IKON Office Solutions Trade Debt $2,687
Marsh USA Inc. Trade Debt $952
United Site Services of California Trade Debt $529
DMV Renewal Trade Debt $390
ADT Security Services Trade Debt $261
Maximum Security Systems Trade Debt $255
Pacer Service Center Trade Debt $229
Airflow Air Conditioning & Heating Trade Debt $198
Paychex of New York LLC Trade Debt $12
155 EAST: Combined Plan Hearing Scheduled for March 2
-----------------------------------------------------
The Hon. Bruce A. Markell of the U.S. Bankruptcy Court for the
District of Nevada will convene a hearing on March 2, 2012, at
1:00 p.m. (Pacific Time), to consider the adequacy of the
Disclosure Statement and the confirmation of 155 East Tropicana,
LLC, and 155 East Tropicana Finance Corp.'s First Amended Joint
Plan of Reorganization.
The Court also ordered that objections, if any, are due Feb. 17,
2012. The deadline for filing replies to any objections is
Feb. 24. Ballots accepting or rejecting the Plan are due Feb. 24,
at 4:00 p.m. (Eastern Time). Ballots must be submitted to this
address:
The Garden City Group, Inc.
Attn: 155 East Tropicana Balloting Agent
P.O. Box 9801
Dublin, OH 43017-5701
Tel: (631) 470-5000 (Emily Young or Michael Olney)
The deadline for the Debtors to file a ballot tabulation is
Feb. 29.
According to the Disclosure Statement filed Jan. 11, 2012, the
primary objective of the reorganization and restructuring under
the Plan is to maximize returns to those creditors entitled to
recoveries from the estates. The Debtors desire to achieve this
objective through:
i) an expeditious sale of the encumbered assets of the
Company, comprised mainly of the Casino/Hotel the assumption
of certain liabilities as part of the sale, and the assumption
and assignment of specific executory contracts and leases
pursuant to 11 U.S.C. Section 365, or
ii) a credit bid by U.S. Bank, N.A. as the successor Indenture
Trustee or its designee, successor or assignee under the 8-3/4%
Senior Secured Notes Indenture with regard to the collateral
under the Senior Secured Loan Documents Neither alternative
will include cash and cash equivalents which will be used to
satisfy Allowed Administrative Expenses, Allowed Priority Tax
Claims, Allowed Priority Claims, Allowed General Unsecured
Claims, the Allowed Claims of the Holders of Senior Secured
Notes but for those Senior Secured Notes held by Canpartners
Realty Holding Company IV LLC, a Delaware limited liability
company and wind down expenses of the Reorganized Debtor
related to the Casino Hotel business.
During the course of the Chapter 11 Cases, the Debtors have sought
a combination of capital raising transaction or merger and
acquisition transactions, including the sale in one transaction of
substantially all of the assets of that certain hotel and casino
commonly known as Hooters Casino Hotel located in Las Vegas,
Nevada as a going concern to a third-party buyer. The Debtors, in
conjunction with its Bankruptcy Court appointed financial advisor,
Innovation Capital, LLC has marketed the Casino Hotel.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/155_EAST_ds_1stamended.pdf
About 155 East Tropicana
155 East Tropicana LLC owns the world's first Hooters Casino
Hotel, a 696-room and 4-suite hotel located one block from the Las
Vegas Strip and across Tropicana Blvd. from MGM Grand.
155 East Tropicana, along with an affiliate, sought Chapter 11
protection (Bankr. D. Nev. Case No. 11-22216) on Aug. 1, 2011.
155 East sought bankruptcy protection to stop a scheduled Aug. 8
foreclosure of the second-lien debt. The two secured credit
facilities were accelerated early this year.
Canpartners Realty Holding Co. IV LLC acquired 98.4% of the
$130 million in 8.75% second-lien senior secured notes. An
additional $32.2 million of interest is owing on the second-lien
debt, with US Bank NA as the indenture trustee. Holders of the
$14.5 million in first-lien debt have Wells Fargo Capital Finance
Inc. as their agent. The first-lien obligation is fully secured.
Interest has been paid at the default rate.
Gerald M. Gordon, Esq., and Brigid M. Higgins, Esq., at Gordon
Silver, in Las Vegas, Nevada, serve as counsel to the Debtors.
Garden City Group, Inc., is the claims agent. William G. Kimmel &
Associates has been hired to provide an appraisal of the Debtors'
casino hotel/property. Alvarez & Marsal serves as financial and
restructuring advisor. Innovation Capital LLC serves as financial
advisor for capital raising transactions and M&A transactions.
1801 ROBERT FULTON: Court Rules on Dispute With Condo Owners
------------------------------------------------------------
Bankruptcy Judge Brian F. Kenney said 1801 Robert Fulton Drive LLC
cannot withdraw the land described as Parcel 3-A, together with
certain parking spaces allocated to unit owners of the Sunrise Oak
Professional Park Condominium, in the way that it seeks to do so,
by re-allocating the previously allocated parking spaces and
granting the Association a permanent easement to use its parking
spaces on the newly created Lot 3-A. Judge Kenney denied Fulton
Drive's Motion for Summary Judgment and granted, in part, the
Association's own Motion for Summary Judgment. The lawsuit is,
SUNRISE OAK PROFESSIONAL PARK CONDOMINIUM UNIT OWNERS ASSOCIATION,
Plaintiff, v. 1801 ROBERT FULTON DRIVE, LLC, et al. Defendants,
Adv. Proc. No. 11-01335 (Bankr. E.D. Va.). A copy of Judge
Kenney's Feb. 2, 2012 Memorandum Opinion is available at
http://is.gd/VCUTnifrom Leagle.com.
Donald F. King, Esq. -- donking@ofplaw.com -- at Odin, Feldman &
Pittleman, represents the Association.
Reston, Virginia-based 1801 Robert Fulton Drive LLC filed for
Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 11-12753) on
April 14, 2011. Judge Stephen S. Mitchell presides over the case.
Robert M. Marino, Esq., at Redmon Peyton & Braswell, LLP, serves
as the Debtor's counsel. The Debtor scheduled assets of
$3,352,827 and debts of $704,304. The petition was signed by
Ronald P. Salerno, president of 1801 Robert Fulton Drive SPE,
Inc., its manager.
AES EASTERN: Chapter 11 Prompts Fitch to Drop 'D' Rating on Certs.
------------------------------------------------------------------
Fitch Ratings has withdrawn the 'D' ratings on $433.1 million of
outstanding debt for AES Eastern Energy LP.
AES Eastern Energy Pass-Through Trusts:
-- $165 million outstanding series 1999-A certificates, due 2017
(downgraded to 'D' from 'C' on Jan. 3, 2012);
-- $268 million outstanding series 1999-B certificates, due 2029
(downgraded to 'D' from 'C' on Jan. 3, 2012).
Fitch has withdrawn the ratings due to AEE's Chapter 11 bankruptcy
filing that occurred on Dec. 30, 2011. The trust certificate debt
was structured to be serviced by cash flow from lease payments
made by AEE under two leveraged leases.
As part of its Chapter 11 reorganization filing, AEE has agreed in
principal to sell the Somerset and Cayuga coal-fired power plants
to a subset of its existing trust certificate-holders under a non-
binding term sheet dated Dec. 30, 2011. The two coal-fired plants
are expected to remain in operation during the bankruptcy case.
AEE is a special purpose entity that is indirectly wholly owned by
AES Corporation, which is rated 'B+' with a Stable Outlook by
Fitch. AEE operates four coal-fired electricity generating
facilities with a gross capacity of 1,169 megawatts. Of the four
plants AEE operates, AEE leases two: the Somerset and Cayuga
plants. AEE sells electricity into the spot market at prevailing
New York Independent System Operator wholesale market prices.
AMERICAN GREETINGS: S&P Retains 'BB+' Rating on 7.375% Sr. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its recovery rating on
American Greeting Corp.'s 7.375% senior unsecured notes due 2021
to '4', indicating its expectation for average (30% to 50%)
recovery in the event of payment default, from '3' (50%
to 70% recovery expectation). The issue-level rating remains 'BB+'
(at the same level as the 'BB+' corporate credit rating on the
company). The issue-level rating on the revolving bank facility
due 2017 remains 'BBB', with a recovery rating of '1', indicating
our expectation of very high (90%-100%) recovery.
"The recovery rating revision follows the company's amendment of
its revolving credit facility, which extended the maturity of the
loan by 18 months to January 2017 and increased the size of the
facility by $50 million, to $400 million. The increased facility
size decreases the recovery prospects for the unsecured debt," S&P
said.
The 'BB+' corporate credit rating on American Greetings reflects a
"modest" financial risk profile, reflecting its low leverage,
moderate financial policy, and strong liquidity. "This is
partially offset by the company's good market position and product
offerings within the mature, low-growth greeting card industry,
which lead to our assessment of the company's 'fair' business risk
profile," S&P said.
Ratings List
American Greetings Corp.
Corporate credit rating BB+/Positive/--
Senior secured BBB
Recovery rating 1
Recovery Rating Revised; Issue Rating Unchanged
To From
American Greetings Corp.
Senior unsecured BB+ BB+
Recovery rating 4 3
AMERICAN LASER: Completes Sale of Assets to Versa Capital
-----------------------------------------------------------
American Laser Centers LLC on Feb. 6 disclosed that it has
completed a sale of substantially all of its assets to private
equity investment firm Versa Capital Management, LLC. The company
received Court approval of the sale on Jan. 31.
With the successful sale closing, ALC's operating business is no
longer part of the Chapter 11 process. ALC sought Chapter 11
protection on Dec. 8, 2011 to facilitate the sale and the
company's financial restructuring. During this brief process, ALC
has continued to provide the highest level of client care, which
will be a priority under the new ownership. Versa expects to
employ nearly all of ALC's employees and intends to maintain the
company's clinics in 27 states and Puerto Rico. The new owners
are providing approximately $15 million in exit financing.
"American Laser Centers will continue to provide an excellent
experience for our clients by enhancing its suite of services and
providing the best skincare techniques available in the
marketplace," said Gregory L. Segall, CEO of Versa. "With a
renewed focus on local marketing and improved competitive pricing,
the company will continue to grow and prosper as the preeminent
supplier of medical skincare services in the nation. We
appreciate our many employees, clients and suppliers whose support
has been a positive factor in ALC's forward progress."
Philadelphia-based Versa Capital Management, Inc. is a private
equity investment firm with $1.2 billion of assets under
management that is focused on control investments in special
situations involving middle market companies where value and
performance growth can be achieved through enhanced operational
and financial management.
ALC is being advised by Landis Rath & Cobb LLP as legal counsel;
Traverse LLC as restructuring advisor; and SSG Capital Advisors,
LLC as investment bankers. The entity that remains in Chapter 11
will be identified as CLA from this point forward.
About American Laser Centers
ALC Holdings LLC, dba American Laser Centers, operates 156 laser
hair-removal clinics in 27 states. At the peak, the Farmington
Hills, Michigan-based company had 222 stores generating $130.6
million in annual revenue.
ALC Holdings, along with its affiliates, filed a Chapter 11
bankruptcy petition (Bankr. D. Del. Lead Case No. 11-13853) on
Dec. 8, 2011. Assets are $80.4 million. Liabilities include
$40.3 million owing on a first-lien debt and $51 million in
subordinated notes. Some $17.9 million is owing to trade
suppliers.
The Company selected Zolfo Cooper LLC as its adviser; Landis Rath
& Cobb LLP as legal counsel; Traverse LLC as restructuring
adviser; SSG Capital Advisors LLC as investment bankers; and BMC
Group as claims agent.
Prepetition, the Company signed a deal for Philadelphia-based
private equity firm Versa Capital Management LLC to acquire
assets, subject to higher and better offers at a bankruptcy court-
sanctioned auction. Versa has agreed to pay $30 million plus $18
million of new-money financing to support the bankruptcy, unless
outbid at an auction in January 2012.
Bellus ALC Investments 1 is represented by Nancy A. Peterman,
Esq., at Greenberg Traurig LLP.
An official committee of unsecured creditors has retained Herrick
Feinstein LLP and Ashby & Geddes, P.A., as counsel; and J.H. Cohn
LLP as financial advisor.
Albert Altro serves as the Debtors' chief restructuring officer.
ARCHBROOK LAGUNA: Deal OK'd to Resolve Dispute with Gordon Bros.
----------------------------------------------------------------
The Hon. Shelley C. Chapman of the U.S. Bankruptcy Court for the
Southern District of New York approved a settlement & amendment to
resolve the dispute and amend the sale Asset Purchase Agreement.
The settlement was entered between Distributor Holdings LLC
formerly known as Archbrook Laguna Holdings LLC, et al., and
Gordon Brothers Group, LLC.
The Court also ordered that by the order and the settlement &
amendment, the dispute is fully and finally resolved in accordance
with the terms of the settlement & amendment and the sale APA
is amended as set forth in the settlement & amendment.
The Court further ordered that all payments received by the
Debtors under the settlement & amendment will be immediately
remitted to the DIP Lenders for the pay down of the outstanding
DIP Obligations.
About ArchBrook Laguna
ArchBrook was a procurement and distribution intermediary between
production companies and end retailers. It distributed consumer
electronics, computers and appliances to principal customers that
include Wal-Mart Stores Inc., Best Buy Co. and Costco Wholesale
Corp.
ArchBrook disclosed assets of $246.2 million against debt totaling
$176.4 million as of March 31, 2011.
ArchBrook Laguna Holdings LLC and certain of its affiliates filed
voluntary petitions for reorganization under chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 11-13292) on
July 8, 2011.
Ira S. Dizengoff, Esq., Michael P. Cooley, Esq., and Alexis
Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York,
serve as bankruptcy counsel to ArchBrook Laguna. The Company is
being advised by Macquarie Capital (USA) Inc. with respect to the
sale process and by Hawkwood Consulting LLC, whose founder Stephen
J. Gawrylewski is Chief Restructuring Officer of the Company.
Macquarie Capital (USA) Inc. is the financial advisor.
PricewaterhouseCoopers LLP is a consultant.
Cooley LLP, in New York, is the counsel for the Official Committee
of Unsecured Creditors.
On Aug. 12, 2011, ArchBrook Laguna LLC won approval to sell its
consumer electronics and appliances distribution business to
Gordon Brothers Group LLC for some $25 million, after fielding
offers at an auction. On Aug. 15, 2011, the sale closed.
BEYOND OBLIVION: News Corp. et al. Provide $750T for Wind-Down
--------------------------------------------------------------
Beyond Oblivion has filed for Chapter 11 protection in the U.S.
Bankruptcy Court for the Southern District of New York.
According to Digital Music News, the Company carries as much as
$500 million in debt, including $50 million each to Sony Music
Entertainment and Warner Music Group in unsecured 'trade debt.'
Assets are listed at less than $10 million.
The report relates that those 'trade debts' are probably licensing
costs, owed upfront or otherwise, and part of a business model
that started imploding almost immediately. Beyond Oblivion never
got to market, folding over Christmas with as much as $87 million
in collective financing. That financing estimate has since been
lowered, based on obviously-missed benchmarks.
The report says those benchmarks were instituted by investors like
News Corp, the Wellcome Trust and Allen & Co., among others. And
this never ends: those financiers are throwing an estimated
$750,000 to 'wind-down' the operation.
BIOSCRIP INC: S&P Affirms 'B' Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services is affirming its ratings on
Elmsford, N.Y.?based BioScrip Inc., including its 'B' corporate
credit rating, following the company's announcement that it is
selling specialty pharmacy businesses that generate about two-
thirds of current revenues. The outlook is stable.
"The sale of its low-margined specialty pharmacy businesses does
not change our assessment of BioScrip's business risk profile as
'vulnerable,'" said Standard & Poor's credit analyst Michael
Kaplan. "The company's revenue base will be reduced to about two-
thirds of its current size, making it more subject to the
uncertain developments in its remaining infusion and home health
operations."
"The pace and success of new investment in these areas, and the
extent to which proceeds from asset sales are used to reduce debt,
could well influence any eventual changes in our perception of the
company's financial risk profile," added Mr. Kaplan, "which we
still consider 'highly leveraged.'"
"The stable outlook is based on the company's still-vulnerable
business risk profile that is unlikely to change in the coming
year. The uncertain pace and success of BioScrip's attempt to
redeploy capital creates a range of possibilities for its revenue
growth and margin prospects over the next few years. Still, in the
year ahead, it is highly unlikely that the company will establish
an operating record that suggests a meaningful improvement in our
vulnerable business risk profile assessment," S&P said.
"Accordingly, we believe that our increased confidence that the
company has the ability and willingness to maintain what we would
consider an 'aggressive' financial risk profile rather than a
highly leveraged one, would be the most likely reason for
upgrading the company. Ratios indicative of an improved financial
risk profile would likely include funds from operations/debt of
sustainably above 12%, and debt/EBITDA maintained below 5x. This
could reflect overhead reductions in the wake of the divestitures,
and the use of proceeds from assets sales to reduce debt," S&P
said.
"We believe a lowering of the already low?speculative-grade rating
is unlikely, given the company's plan to invest in higher margined
operations than those divested, and the likelihood that liquidity
will be augmented with proceeds to be received at the close of the
transaction," S&P said.
BOUNDARY BAY: Committee Can Retain Crowe Horwarth as Accountants
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
authorized the Official Committee of Unsecured Creditors in the
case of Boundary Bay Capital, LLC, to retain Crowe Horwarth,
LLP as accountants.
As reported in the Troubled Company Reporter on Dec. 12, 2011,
upon retention, the firm will, among other things:
a. obtain, index and evaluate financial records;
b. analyze receipts and disbursement and report on findings;
and
c. investigate assets and liabilities to the Debtor.
Howard B. Grobstein, partner of Crowe Horwarth, attests that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.
The firm's hourly rates are:
Personnel Rates
--------- -----
Executives & Directors $385-$595
Senior Managers $115-$340
Managers $100-$265
Senior Accountants $140-$235
Associate Accountants $85-$170
Administrative Consultants $70-$175
Bookkeepers $150-$185
IT Consultants $90-$225
About Boundary Bay
Boundary Bay Capital, LLC, is a California limited liability
company with its headquarters in Irvine, California. The Company
was in the business of making loans secured by liens on real
property and notes secured by other secured notes (which, in turn,
are secured by liens or real property). The Company also owns
some real property through foreclosure.
Boundary Bay Capital filed for Chapter 11 bankruptcy protection
(Bankr. C.D. Calif. Case No. 11-14298) on March 28, 2011. Evan D.
Smiley, Esq., and Hutchison B. Meltzer, Esq., at Weiland, Golden,
Smiley, Wang Ekvall & Strok, LLP, in Costa Mesa, Calif., serve as
the Debtor's bankruptcy counsel.
Affiliate Cartwright Properties, LLC, filed a separate Chapter 11
petition (Bankr. C.D. Calif. Case No. 10-17823) on June 9, 2010.
In its schedules, the Debtor disclosed $15,876,118 in assets and
$54,448,485 in liabilities.
BOUNDARY BAY: Plan Outline Hearing Continued Until March 14
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
approved a stipulation continuing until March 14, 2012, at
11:00 a.m., the hearing to consider adequacy of the Disclosure
Statement explaining the proposed Boundary Bay Capital, LLC's
Chapter 11 Plan.
The stipulation was entered among the Debtor, the Official
Committee of Unsecured Creditors, and the Office of the U.S.
Trustee.
As reported in the Troubled Company Reporter on Oct. 18, 2011,
under the Plan, creditors holding unsecured claims will become the
new owners of the Debtor and all the equity interests of the
current owners will be terminated. Secured creditors will be paid
through the surrender or sale of their collateral or through
payments over time, in some cases on a restructured basis. The
payments under the Plan will be funded through the proceeds of a
postpetition loan, sales of assets, and funds generated through
operations. The Debtor will make periodic distributions to
creditors as net proceeds become available.
The Debtor believes that, in the absence of the Chapter 11
reorganization and the confirmation of the Plan, the Debtor's
assets would be liquidated at substantially discounted prices,
leaving much less to pay creditors. The Plan, on the other hand,
allows the Debtor to maximize the return to creditors through the
orderly administration of its assets. For example, the real
property assets being sold will be sold over sufficient time
periods to generate the highest potential recoveries. The Debtor
will continue to collect its good receivables and will not have to
liquidate them on a discounted basis. As to loans owned by the
Debtor that are in default, the Debtor may take possession of the
collateral and then monetize it for the benefit of creditors. In
furtherance of this process, the Debtor will address the current
challenges impacting the assets, such as pending litigation, which
if not resolved will severely undermine the value of the assets
available for distribution.
A copy of the Disclosure Statement is available for free at:
http://bankrupt.com/misc/BOUNDARY_disclosurestatement.pdf
About Boundary Bay
Boundary Bay Capital, LLC, is a California limited liability
company with its headquarters in Irvine, California. The Company
was in the business of making loans secured by liens on real
property and notes secured by other secured notes (which, in turn,
are secured by liens or real property). The Company also owns
some real property through foreclosure.
Boundary Bay Capital filed for Chapter 11 bankruptcy protection
(Bankr. C.D. Calif. Case No. 11-14298) on March 28, 2011. Evan D.
Smiley, Esq., and Hutchison B. Meltzer, Esq., at Weiland, Golden,
Smiley, Wang Ekvall & Strok, LLP, in Costa Mesa, Calif., serve as
the Debtor's bankruptcy counsel.
Affiliate Cartwright Properties, LLC, filed a separate Chapter 11
petition (Bankr. C.D. Calif. Case No. 10-17823) on June 9, 2010.
In its schedules, the Debtor disclosed $15,876,118 in assets and
$54,448,485 in liabilities.
BRAGG COMMUNICATIONS: S&P Assigns 'BB-' Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to Atlantic Canada-based cable TV services
provider, Bragg Communications Inc. The outlook is stable.
"At the same time, we assigned our 'BB' issue-level rating and '2'
recovery rating to Bragg's proposed C$1.75 billion equivalent
senior secured bank facilities, which comprise a C$150 million
revolver and C$1.6 billion equivalent of term loans. A '2'
recovery rating indicates our expectations of substantial (70%-
90%) recovery in the event of default," S&P said.
"Bragg will use net proceeds from the planned debt issuance to
repay existing debt obligations, purchase certain cable and
telecommunication assets, and to pay a one-time dividend to its
parent Oxford Communications Inc.," said Standard & Poor's credit
analyst Madhav Hari. "We expect the refinancing to be completed by
March 2012."
"The ratings on Bragg reflect what we view as its aggressive
financial risk profile characterized by weak pro forma adjusted
debt to EBITDA ratio and weak cash flow protection credit measures
given high ongoing capital expenditures for network expansion and
growth initiatives. The ratings also reflect our view of an
aggressive financial policy owing to the company's historically
high tolerance for debt within its capital structure. The ratings
on Bragg, however, benefit from what we see as the company's fair
business risk profile supported by its strong and defensible
market position as the incumbent provider of cable television and
related services in Atlantic Canada, industry-leading penetration
of revenue generating units, favorable prospect for growth in the
near term, and the company's demonstrated ability to sustain
industry-leading profit margins," S&P said.
"Tempering factors, in our opinion, include the company's smaller
size, operations in smaller markets with less attractive household
densities, and somewhat high geographic concentration of cash
flow. The company also faces the prospect of rising triple-play
competition from large telecom rivals (principally, Bell Aliant
Inc. [BBB/Stable/--]), ongoing competition from direct-to-home
satellite television providers, increasing market saturation for
its current offerings, risks from technological substitution (for
video and fixed-line voice), and the potential for execution
challenges with respect to certain new initiatives," S&P said.
"Privately held Bragg is the smallest of the five large cable
operators in Canada. Based in Halifax, N.S., the company provides
analog and digital cable television, high-speed Internet, and
telephone services to its customers primarily under the EastLink
brand. Bragg operates in nine Canadian provinces, with about half
of its subscriber base in Atlantic Canada and the remainder spread
out over Ontario and western Canada. Its ownership by direct
parent Oxford, and ultimately by the Bragg family, has a neutral
overall impact on the ratings at present," S&P said.
"The stable outlook reflects our expectation that, in the next
couple of years, improving cash flow at Bragg's mature core cable
operations should be sufficient to fund its growth initiatives
while allowing for modest debt reduction. Under these parameters,
we expect the company's adjusted debt to EBITDA ratio to improve
to the lower-end of the range we expect for our aggressive
financial risk profile assessment. Rising subscriber losses
combined with margin pressure in the core cable operations (from
rising triple-play competition from telecom rivals) or additional
shareholder distributions, which weakens adjusted debt to EBITDA
by 1x from our current expectations, could lead us to lower the
ratings on Bragg. Upside for the ratings is constrained given
increasing competitive risks, potential time to deleverage to our
targets, and limited history of free operating cash flow on
a sustained basis," S&P said.
).
About BTA Bank
BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.
The BTA Group is one of the leading banking groups in the
Commonwealth of Independent States and has affiliated banks in
Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey.
In addition, the Bank maintains representative offices in Russia,
Ukraine, China, the United Arab Emirates and the United Kingdom.
The Bank has no branch or agency in the United States, and its
primary assets in the United States consist of balances in
accounts with correspondent banks in New York City.
As of November 30, 2009, the Bank employed 5,043 people inside
and 4 people outside Kazakhstan. It has no employees in the
United States. Most of the Bank's assets, and nearly all its
tangible assets, are located in Kazakhstan.
JSC BTA Bank, also known as BTA Bank of Kazakhstan, commenced
insolvency proceedings in the Specialized Financial Court of
Almaty City, Republic of Kazakhstan. Anvar Galimullaevich
Saidenov, the Chairman of the Management Board of BTA Bank, then
filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 10-10638) on
Feb. 4, 2010, estimating more than US$1 billion in assets and
debts.
On March 9, 2010, the Troubled Company Reporter-Europe reported
that JSC BTA Bank was granted relief in the U.S. under Chapter 15
when the bankruptcy judge in New York recognized the Kazakh
proceeding as the "foreign main proceeding." Consequently,
creditor actions in the U.S. were permanently halted, forcing
creditors to prosecute their claims and receive distributions
in Kazakhstan.
In the U.S., the Foreign Representative is represented by Evan C.
Hollander, Esq., Douglas P. Baumstein, Esq., and Richard A.
Graham, Esq. -- rgraham@whitecase.com -- at White & Case LLP in
New York City.
The Specialized Financial Court of Almaty approved BTA Bank's debt
restructuring on Aug. 31, 2010, trimming its obligations from
$16.7 billion to $4.2 billion, and extending its longest maturity
dates to 20 year from eight. Creditors who hold 92 percent of
BTA's debt approved the restructuring plan in May. BTA reportedly
distributed $945 million in cash to creditors and new debt
securities including $5.2 billion of recovery units (representing
an 18.5% equity stake) and $2.3 billion of senior notes on Sept.
1, 2010. BTA forecasts profit of slightly more than $100 million
in 2011, Chief Executive Officer Anvar Saidenov told reporters in
Almaty.
BTA BANK: Creditors Form Steering Committee for Debt Talks
----------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that a creditors
steering committee has been formed to represent stakeholders in
the second restructuring of Kazakhstan's BTA Bank JSC since a
state takeover three years ago.
About BTA Bank
BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.
The BTA Group is one of the leading banking groups in the
Commonwealth of Independent States and has affiliated banks in
Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey.
In addition, the Bank maintains representative offices in Russia,
Ukraine, China, the United Arab Emirates and the United Kingdom.
The Bank has no branch or agency in the United States, and its
primary assets in the United States consist of balances in
accounts with correspondent banks in New York City.
As of November 30, 2009, the Bank employed 5,043 people inside
and 4 people outside Kazakhstan. It has no employees in the
United States. Most of the Bank's assets, and nearly all its
tangible assets, are located in Kazakhstan.
JSC BTA Bank, also known as BTA Bank of Kazakhstan, commenced
insolvency proceedings in the Specialized Financial Court of
Almaty City, Republic of Kazakhstan. Anvar Galimullaevich
Saidenov, the Chairman of the Management Board of BTA Bank, then
filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 10-10638) on
Feb. 4, 2010, estimating more than US$1 billion in assets and
debts.
On March 9, 2010, the Troubled Company Reporter-Europe reported
that JSC BTA Bank was granted relief in the U.S. under Chapter 15
when the bankruptcy judge in New York recognized the Kazakh
proceeding as the "foreign main proceeding." Consequently,
creditor actions in the U.S. were permanently halted, forcing
creditors to prosecute their claims and receive distributions
in Kazakhstan.
In the U.S., the Foreign Representative is represented by Evan C.
Hollander, Esq., Douglas P. Baumstein, Esq., and Richard A.
Graham, Esq. -- rgraham@whitecase.com -- at White & Case LLP in
New York City.
The Specialized Financial Court of Almaty approved BTA Bank's debt
restructuring on Aug. 31, 2010, trimming its obligations from
$16.7 billion to $4.2 billion, and extending its longest maturity
dates to 20 year from eight. Creditors who hold 92 percent of
BTA's debt approved the restructuring plan in May. BTA reportedly
distributed $945 million in cash to creditors and new debt
securities including $5.2 billion of recovery units (representing
an 18.5% equity stake) and $2.3 billion of senior notes on Sept.
1, 2010. BTA forecasts profit of slightly more than $100 million
in 2011, Chief Executive Officer Anvar Saidenov told reporters in
Almaty.
* * *
As reported in the TCR on Jan. 25, 2012, Fitch Ratings has
downgraded Kazakhstan-based BTA Bank's Long-term Issuer Default
Rating (IDR) to 'RD' from 'C'.
The downgrade reflects the fact that the bank has committed an
uncured expiry on January 18, 2012 of a grace period allowed to
pay a US$165 million coupon. The bank has confirmed its
intention to seek restructuring of its obligations under senior
unsecured and subordinated bonds with the aggregate value of
about US$3.5 billion.
CALIFORNIA STATEWIDE: S&P Raises Refunding Bond Rating to 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services corrected its long-term rating
to 'BB+' (sf) from 'BB-' (sf) on California Statewide Communities
Development Authority's series 2002E-1 (Quail Ridge Apartments
project) senior multifamily housing revenue refunding bonds. At
the same time, Standard & Poor's corrected its long-term rating to
'BB-' (sf) from 'B' (sf) on the authority's series 2002E-3 (Quail
Ridge Apartments project) subordinate multifamily housing revenue
refunding bonds. The outlook on all bonds is negative.
"Pursuant to our criteria, we do not include capitalized
expenditures in the calculation of debt service coverage," said
Standard & Poor's credit analyst Alexis Laing. "However, we
incorrectly included capitalized expenditures when calculating
debt service coverage in our November 2011 review. The corrected
ratings reflect the correct calculation of debt service coverage,"
Ms. Laing added.
Quail Ridge is a 360-unit garden-style multifamily apartment
complex in Rialto, Calif., consisting of 114 one-bedroom
apartments, 150 two-bedroom apartments, and 96 three-bedroom
apartments.
CAMARILLO PLAZA: Has Access to Cash Collateral Until May 31
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
approved a stipulation regarding Camarillo Plaza, LLC's interim
use of cash collateral until May 31, 2012.
The stipulation was entered between the Debtor and Secured
creditor Wells Fargo Bank, N.A., as trustee for the registered
holders of Credit Suisse First Boston Mortgage Securities Corp.,
Commercial Mortgage Pass-Through Certificates, Series 2006-C3.
The Debtor would use the cash collateral to operate its business
postpetition.
Pursuant to the stipulation, among other things:
-- The Debtor may use the cash collateral, provided that it
will not use the cash collateral in any amount: (a) in
excess of 10% of any line item for any given month; and (b)
in excess of 5% of the total aggregate budget for any given
month;
-- The Debtor will pay Wells Fargo $76,791 adequate protection
payments plus escrow amounts per month; and
-- As adequate protection from diminution in value of the
lender's collateral, the Debtor will grant Wells Fargo a
replacement lien in the Debtor's assets, and a superpriority
administrative claim status
Wells Fargo is represented by:
Alan D. Smith, Esq.
Amir Gamliel, Esq.
PERKINS COIE LLP
188 Century Park East, Suite 1700
Los Angeles, CA 90067
Tel: (310) 788-990
Fax: (310) 788-3399
E-mail: ADSmith@perkinscoie.com
AGamliel@perkinscoie.com
About Camarillo Plaza LLC
Shopping center operator Camarillo Plaza LLC, based in Los
Angeles, California, filed for Chapter 11 bankruptcy (Bankr. C.D.
Calif. Case No. 11-59637) on Dec. 5, 2011. Judge Sheri Bluebond
was assigned to the case. At the Debtor's behest the next day,
the case was transferred to the Northern Division (Bankr. C.D.
Calif. Case No. 11-bk-15562). The case in the Los Angeles
Division was closed, and Judge Robin Riblet took over from Judge
Bluebond. Janet A. Lawson, Esq., represents the Debtor in its
restructuring effort.
The Debtor scheduled assets of $21,646,714 and liabilities of
$12,286,585 as of the Chapter 11 filing. Janet A. Lawson, Esq.,
in Ventura County, California, serves as the Debtor's counsel.
CAPITAL CITY VENTURES: St. Paul Athletic Club Bldg. in Ch. 11
-------------------------------------------------------------
Capital City Ventures, LLC, filed a bare-bones Chapter 11 petition
(Bankr. D. Minn. Case No. 12-30630) in its hometown in St. Paul,
Minnesota.
The Debtor, which estimated assets and debts of up to $50 million,
owns the Saint Paul Athletic Club Building in 340 Cedar Street,
St. Paul, Minnesota.
The docket says that the Debtor is required to file a Chapter 11
plan and a disclosure statement by June 5, 2012. Proofs of claim
are due Aug. 6, 2012.
CAPITAL CITY: Case Summary & 17 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Capital City Ventures, LLC
dba 340 Cedar Street Building
Saint Paul Athletic Club Building
c/o Commonwealth Properties
6 West Fifth Street, Suite 900
St. Paul, MN 55102
Bankruptcy Case No.: 12-30630
Chapter 11 Petition Date: February 6, 2012
Court: U.S. Bankruptcy Court
District of Minnesota (St Paul)
Judge: Nancy C. Dreher
Debtor's Counsel: Michael L. Meyer, Esq.
RAVICH MEYER KIRKMAN MCGRATH NAUMAN & TANSEY, PA
4545 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
Tel: (612) 317-4745
E-mail: mlmeyer@ravichmeyer.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by John R. Rupp, chief manager.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
IH-2, LLC 12-30627 02/06/12
Debtor's List of Its 17 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Mortgage Acquisition LLC Loan $5,940,596
225 South Sixth Street, Suite 3500
Minneapolis, MN 55402-4629
Commonwealth Properties Trade Payable $1,760,454
6 West Fifth Street, Suite 900
St. Paul, MN 55102
H R A - City of St. Paul Loan $426,512
25 Fourth Street W, Suite 1400
St. Paul, MN 55102-1632
Allied/Standard Park Trade Payable $161,833
Peterson Fram & Bergman Trade Payable $68,616
University Club of St. Paul Prepaid Rent $41,000
Eagle Elev - #831 Trade Payable $40,770
Argent Real Estate Company Loan $26,800
Summit Fire Trade Payable $19,061
Foremost Mechanical Trade Payable $17,122
Commercial Floors Trade Payable $16,294
Health Fitness Corporation Trade Payable $16,098
District Cooling Trade Payable $15,660
Arejay Electric Co. Trade Payable $14,316
District Energy Trade Payable $8,747
Ideal Printers Inc. Trade Payable $5,801
Century Metal Restoration Trade Payable $5,510
CATALYST PAPER: Seeks U.S. Court OKs $175MM Bankruptcy Loan
-----------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that Catalyst Paper
Corp., which recently filed for protection from creditors in
Canada after stumbling in its bid to convince a sufficient number
of investors to sign off on consensual debt restructuring, is
seeking approval from a U.S. bankruptcy judge to borrow $175
million to fund its pulp and paper mills while it reorganizes its
business.
About Catalyst Paper
Catalyst Paper Corp. -- 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.
Catalyst Paper in January 2012 applied for and received an initial
court order under the Canada Business Corporations Act (CBCA) to
commence a consensual restructuring process with its noteholders.
Affiliate Catalyst Paper Holdings Inc., sought creditor protection
under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case
No. 12-10219) on Jan. 17, 2012. The company is seeking
recognition of these proceedings with the Delaware Court in order
for the Canadian order under the CBCA to be recognized in the
United States.
The company will continue to operate and satisfy its obligations
to trade creditors, customers, employees and retirees in the
ordinary course of business during this restructuring process.
Catalyst on Dec. 15, 2011, deferred a US$21 million interest
payment on its outstanding 11.00% Senior Secured Notes due 2016
and Class B 11.00% Senior Secured Notes due 2016 due on Dec. 15,
2011. Catalyst said it was reviewing alternatives to address its
capital structures and it is currently in discussions with
noteholders. Perella Weinberg Partners served as the financial
advisor.
In early January 2012, Catalyst said it had entered into a
restructuring agreement, which will see its bondholders taking
control of the company and includes an exchange of debt for
equity. The agreement said it would slash the company's debt by
C$315.4 million ($311 million) and reduce its cash interest
expenses. Catalyst also said it will continue to "operate and
satisfy" its obligations to customers, trade creditors, employees
and retirees in the ordinary course of business during the
restructuring process.
Catalyst Paper joins a line of paper producers that have succumbed
to higher costs, increased competition from Asia and Europe, and
falling demand as more advertisers and readers move online. Last
year, Cerberus Capital-backed NewPage Corp. filed for bankruptcy
protection, followed by SP Newsprint Co., owned by newsprint
magnate and fine art collector Peter Brant. In December, Wausau
Paper said it will close its Brokaw mill in Wisconsin, cut 450
jobs and exit its print and color business.
CDC CORP: Gets Final OK to Hire Moelis as Financial Advisor
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia, in
a final order, authorized CDC Corp. to employ Moelis & Company LLC
as financial advisor and investment banker.
As reported in the Troubled Company Reporter on Dec. 21, 2011,
Moelis will, among other things:
a) undertake, in consultation with members of management
of the Company and Business, a customary business and
financial analysis of the Company and the business;
b) assist the Company in reviewing and analyzing a potential
Debt Transaction, Equity Transaction, Division Sale
Transaction, CDC Software Sale Transaction or a
Restructuring Transaction;
c) assist the Company in identifying potential Purchasers
of a Debt Capital Transaction and/or an Equity Capital
Transaction and potential Acquirers of a Division Sale
Transaction and/or a CDC Software Sale Transaction;
d) contact potential Purchasers and Acquirers that Moelis
and the Company have agreed may be appropriate for a
Transaction, and meet with and provide them such
information about the Company or the Business as may
be appropriate and acceptable to the Company, subject
to customary business confidentiality;
e) assist the Company in preparing Information Materials
to be distributed to potential Purchasers and Acquirers;
f) assist the Company in developing a strategy to effectuate
the Transaction; and
g) assist the Company, upon further request, in structuring
and negotiating the Transaction and participate in such
negotiations as requested.
The Debtor has agreed to pay Moelis the proposed compensation
based on the Engagement Letter:
a) Monthly Retainer Fee. A nonrefundable monthly retainer
fee of $100,000 per month, payable in advance for the
period commencing on the Commencement Date until the
termination of the Engagement Letter. The first payment
of the Monthly Retainer Fee shall be payable on the
Order Date and shall cover the period from the
Commencement Date until the Order Date pro-rated for
any partial months included), and subsequent payments
will be payable on each monthly anniversary of the
Order Date. After the Company pays Moelis three full
Monthly Retainer Fees, Moelis agrees to credit 25% of
the subsequent three Monthly Retainer Fees paid to
Moelis, on a dollar-for-dollar basis, against a CDC
Software Sale Transaction Fee; Moelis further agrees to
credit 50% of all subsequent Monthly Retainer Fees (that
is after the first full six Monthly Retainer Fees) paid
to Moelis, on a dollar-for-dollar basis, against a CDC
Software Sale Transaction Fee, up to a maximum credit
of all Monthly Retainer Fees credited of $300,000.
b) Capital Transaction Fee. A transaction fee, payable
promptly at the closing of each Debt Capital Transaction
and an Equity Capital Transaction equal to:
* 3.0% of the gross amount or face value of any Debt
Capital Transaction (including any unfunded commitments),
Plus
* 5.0% of the gross amount or face amount of any Equity
Capital Transaction.
The Company will pay a separate Capital Transaction Fee in
respect of each Capital Transaction in the event that more
than one Capital Transaction occurs.
c) Sale Transaction Fee. A transaction fee, payable promptly
at the closing of each Division Sale Transaction or CDC
Software Sale Transaction equal to:
* with respect to eight potential purchasers who have
signed Letters of Intent with the Company as of the
Commencement Date ("Identified Purchasers"):
(i) 1.5% of Transaction Value for amounts up to $7.50
per share; plus
(ii) 2.5% of Transaction Value for amounts in excess
of $7.50 per share; and
* with respect to other purchasers:
(i) 1.5% of Transaction Value for amounts up to $5.50
per share; plus
(ii) 2.5% of Transaction Value for amounts in excess of
$5.50 per share; and
The Debtor will pay a separate Sale Transaction Fee in
respect of each Sale Transaction in the event that more than
one Sale Transaction occurs.
d) Restructuring Transaction Fee. At the closing of a
Restructuring, a nonrefundable cash fee of $2.0 million.
For the avoidance of doubt, (i) in the event a Sale
Transaction Fee for a CDC Software Sale Transaction is
paid to Moelis, a Restructuring Fee shall not be payable
to Moelis. If the Company receives a dividend which is
used to repay or resolve the Evolution claim that will
constitute a Restructuring Transaction (unless the
dividend is proceeds from a CDC Software Sale Transaction
for which a Sale Transaction Fee is payable).
e) Termination Fee. A termination fee equal to 25% of any
"termination fee," "break-up fee," "topping fee,"
"expense reimbursement" or other form of compensation
payable to the Company (or the Business) or of the value
of any option to purchase any securities or assets that
the Company (or the Business) has been granted if, after
the execution of an agreement in principle, letter of
intent, definitive agreement or similar agreement for a
Transaction, the Transaction fails to close and the
Company (or the Business) receives any such compensation
or option. The Company will pay the Termination Fee when
it receives any such compensation or is able to exercise
any such option. If the Company (or the Business)
receives any such compensation in the form of, or receives
an option for, securities or assets, the value will be the
fair market value on the day the Company receives such
compensation or are able to exercise such option.
f) Expenses. Whether or not any Transaction is consummated,
the Company will reimburse Moelis for all of its reasonable
out of pocket expenses for travel, copying, delivery,
teleTel, etc. as they are incurred in entering into and
performing services; provided, however, that prior approval
of the Company will be required if the expenses exceed
$75,000. In addition, the Debtor agrees to reimburse
Moelis for its customary and reasonable expenses incurred
by Moelis in connection with the matters contemplated by
the Engagement Letter, including, without limitation,
reasonable fees, disbursements, and other charges of
Moelis' counsel.
g) Form of Payment. All fees, expenses and any other amounts
payable hereunder are payable in U.S. dollars.
In addition, if, at any time prior to the expiration of 12 months
following the termination of the Engagement Letter, the Company
enters into an agreement or a plan of reorganization is filed that
subsequently results in a Transaction, or consummates a
Transaction, then the Company will pay Moelis the Capital
Transaction Fee or the Sale Transaction Fee (as the case may be)
as specified in cash promptly upon the closing of each such
Transaction. If, at any time prior to the expiration of 12 months
following the termination of the Engagement Letter, the Company
enters into an agreement or a plan of reorganization is filed for
a Transaction and the Transaction subsequently fails to close then
the Company will pay Moelis the Termination Fee upon receipt of
any compensation or option as specified.
John P. Joliet, managing director of Moelis & Company, attests
that the firm is a "disinterested person," as that term is defined
in Section 101(14) of the Bankruptcy Code.
About CDC Corp.
Based in Atlanta, CDC Corp. (Nasdaq: CHINA) --
http://www.cdccorporation.net/-- is the parent company of CDC
Software (Nasdaq: CDCS). CDC Software is based dually in
Shanghai, China, and Atlanta and produces enterprise software
applications, IT consulting services, outsourced applications
development and IT staffing. The company's owners include Asia
Pacific Online Ltd., Xinhua News Agency and Evolution Capital
Management.
CDC Corporation, doing business as Chinadotcom, filed a Chapter
11 petition (Bankr. N.D. Ga. Case No. 11-79079) on Oct. 4, 2011.
James C. Cifelli, Esq., at Lamberth, Cifelli, Stokes & Stout, PA,
in Atlanta, Georgia, serves as counsel. Moelis & Company LLC
serves as its financial advisor and investment banker. Marcus A.
Watson at Finley Colmer and Company serves as chief restructuring
officer. The Debtor estimated assets and debts at $100 million
to $500 million as of the Chapter 11 filing.
CDW LLC: S&P Retains 'CCC+' Rating on Senior Unsecured Notes
------------------------------------------------------------
Standard & Poor's Ratings Services' ratings on CDW LLC's senior
unsecured notes due 2019 remain unchanged following a $130 million
add-on, bringing the aggregate dollar amount to $1.305 billion.
"The issue-level rating on the notes remains at 'CCC+' (two
notches below the corporate credit rating on the company) and the
recovery rating remains at '6', indicating our expectation of
negligible (0%-10%) recovery of principal in the event of a
payment default," S&P said.
"The 'B' corporate credit and stable outlook on CDW remain
unchanged. The rating reflects our expectation that growth in
North American IT spending and consistent profitability will
support modest improvements in its 'highly leveraged' financial
profile in the near term, despite highly competitive industry
conditions," S&P said.
"CDW is the leading value-added-reseller (VAR) of IT products,
solutions, and services to business, government, and education and
health care customers in the U.S. and Canada. Revenues grew about
9% in the nine months ended September 2011, with double-digit
growth in sales to corporate customers offsetting weakness in
government sales. We expect ongoing cost-containment efforts,
combined with growth-driven economies of scale, will enable CDW to
maintain consistent profitability. The company's adjusted annual
EBITDA margins have been in the 6%-7% range, which is good for a
distributor. However, over the intermediate term, its revenue and
EBITDA base will remain vulnerable to potential weakness in
economic activity and corporate IT spending," S&P said.
Ratings List
CDW LLC
Corporate Credit Rating B/Stable/--
Senior Unsecured due 2019 CCC+
Recovery Rating 6
CHEF SOLUTIONS: Wants Exclusive Filing Period Extended to May 1
---------------------------------------------------------------
Food Processing Liquidation Holdings, LLC, f/k/a Chef Solutions
Holdings, LLC, et al., ask the U.S. Bankruptcy Court for the
District of Delaware to extend their exclusive periods in which to
file a Chapter 11 Plan and solicit votes on a filed plan through
and including May 1, 2012, and July 1, 2012, respectively.
No prior request for an extension of the Exclusive Periods
has been made.
The Debtors tell the Court that they have been working closely
with the Creditors' Committee to ensure that the Debtors' assets
are liquidated and distributed in a manner that is acceptable
to the Debtors' general unsecured creditors. According to the
Debtors, these efforts may be lost if the Exclusivity Periods are
not extended as requested.
About Chef Solutions
Chef Solutions Inc., through subsidiary Orval Kent Food, is the
second largest manufacturer in North America of fresh prepared
foods for retail, foodservice and commercial channels.
Chef Solutions and its affiliates filed for Chapter 11 protection
(Bankr. D. Del. Case No. 11-13139) on Oct. 4, 2011. Debtor Orval
Kent Food Company disclosed $82,902,336 in assets and $126,085,311
in liabilities in its schedules.
Judge Kevin Gross presides over the case. Lawyers at Richards,
Layton & Finger, P.A., serve as the Debtors' bankruptcy counsel.
Donlin Recano is the claims and notice agent. Piper Jaffray & Co.
has been hired as investment banker. PricewaterhouseCoopers
serves as financial advisor.
On the Petition Date, the Debtors entered into an asset purchase
agreement with RMJV, L.P., for the sale of substantially all of
their assets. On Nov. 15, 2011, the Court approved the APA and
the Sale, and on Nov. 21, 2011, the Sale closed.
Lowenstein Sandler PC and Polsinelli Shughart serve as counsel to
the creditors' committee appointed in the case. Mesirow Financial
Consulting, LLC, is the financial advisor.
CHEF SOLUTIONS: Wants Lease Decision Period Extend to May 1
-----------------------------------------------------------
Food Processing Liquidation Holdings, LLC, f/k/a Chef Solutions
Holdings, LLC, et al., ask the U.S. Bankruptcy Court for the
District of Delaware to extend the deadline for the Debtors to
assume or to reject non-residential real property leases through
and including May 1, 2012.
The Debtors' initial period to assume or to reject the non-
residential real property leases under Section 365(d)(4) of the
Bankruptcy Code is scheduled to expire on Feb. 1, 2012.
The Debtors tell the Court that they believe there may still be
leases that they have not yet assumed or rejected, and that these
leases may be valuable to the Debtors' estates.
About Chef Solutions
Chef Solutions Inc., through subsidiary Orval Kent Food, is the
second largest manufacturer in North America of fresh prepared
foods for retail, foodservice and commercial channels.
Chef Solutions and its affiliates filed for Chapter 11 protection
(Bankr. D. Del. Case No. 11-13139) on Oct. 4, 2011. Debtor Orval
Kent Food Company disclosed $82,902,336 in assets and $126,085,311
in liabilities in its schedules.
Judge Kevin Gross presides over the case. Lawyers at Richards,
Layton & Finger, P.A., serve as the Debtors' bankruptcy counsel.
Donlin Recano is the claims and notice agent. Piper Jaffray & Co.
has been hired as investment banker. PricewaterhouseCoopers
serves as financial advisor.
On the Petition Date, the Debtors entered into an asset purchase
agreement with RMJV, L.P., for the sale of substantially all of
their assets. On Nov. 15, 2011, the Court approved the APA and
the Sale, and on Nov. 21, 2011, the Sale closed.
Lowenstein Sandler PC and Polsinelli Shughart serve as counsel to
the creditors' committee appointed in the case. Mesirow Financial
Consulting, LLC, is the financial advisor.
CHRIST HOSPITAL: Files for Chapter 11l; Bidding War Looms
---------------------------------------------------------
Christ Hospital, a New Jersey not-for-profit Corporation, filed
for Chapter 11 protection (Bankr. D. N.J. Case No. 12-12906) on
Feb. 6, 2012.
Christ Hospital wants to be designated as a "complex Chapter 11
case" and has filed typical first day motions including a request
to extend the deadline to file its schedules of assets and
liabilities, and requests for permission to pay prepetition
employee wages, and prepetition claims of critical vendors.
Christ Hospital is the second largest hospital in Hudson County.
It owns and operates a 367 licensed bed acute-care hospital at 176
Palisade Avenue, Jersey City, New Jersey. In addition to the main
Hospital building, the Debtor owns an additional 16 mostly
adjacent lots comprising, 19 acres of real estate along the
Palisades, mainly consisting of the seven-story Main Hospital
building, a Medical Office Building, a School of Nursing, a Mental
Health Facility, the Cancer Center building under renovation, two
buildings rented out for doctor's offices, one parking garage and
a 1500 car surface parking lot, and three vacant lots.
As of December 31, 2011, the Debtor has total assets of at least
$38,000,000 and total liabilities of $115,000,000, at book values.
In 2011, the Debtor had operating revenue totaling approximately
$144,000,000 and an operating loss of approximately $3,058,000
Christ Hospital blamed the Chapter 11 filing on a number of
reasons, including multiple years of disproportionately-low
reimbursement for a growing Charity Care population; the challenge
of high pension costs, and an increasing population covered by
Medicaid. It added that its managed care agreements with insurers
are oppressive. The hospital, among other things, loses
approximately $400/day on every Horizon Blue Cross admission.
Sale Offers Received
In early 2011, the Hospital retained Porzio, Bromberg & Newman,
P.C., to conduct an out-of-court restructuring of the Hospital's
debt.
After appropriate due diligence, including site visits by Christ
senior administrative and clinical management, the Hospital
entered into a Letter of Intent on August 12, 2011 with Prime
Healthcare Services followed by a Dec. 2, 2011 Asset Purchase
Agreement.
On Dec. 23, 2011, the Debtor received an unsolicited offer to
purchase its assets from Hudson Hospital Holdco, LLC an affiliate
of the entity that had purchased both Bayonne Medical Center and
Hoboken University Medical Center out of Bankruptcy Court.
On Jan. 20, 2012, the Debtor received an unsolicited offer to
purchase its assets from Community Healthcare Associates, the
entity that had purchased the Barnert Hospital out of bankruptcy.
CHA's proposal was joined in by Jersey City Medical Center/Liberty
Health, who would become a tenant for a portion of the Christ
Hospital premises if CHA was selected as the successful purchaser.
Since executing the Prime contract on Dec. 2, 2011, the Debtor was
approached both Hudson Holdco and CHA. While each of these
bidders presented financing proposals, along with their interests
in purchasing the Hospital, the Debtor has chosen to seek Chapter
11 relief without a strategic partnership at this time.
CHRIST HOSPITAL: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Christ Hospital, a New Jersey not-for-profit Corporation
176 Palisade Avenue
Jersey City, NJ 07306
Bankruptcy Case No.: 12-12906
Chapter 11 Petition Date: February 6, 2012
Court: U.S. Bankruptcy Court
District of New Jersey (Newark)
Judge: Morris Stern
Debtor's Counsel: Warren J. Martin, Jr., Esq.
PORZIO, BROMBERG & NEWMAN, PC
100 Southgate Parkway
Morristown, NJ 07962-1997
Tel: (973) 889-4006
Fax: (973) 538-5146
E-mail: wjmartin@pbnlaw.com
Estimated Assets: $50,000,001 to $100,000,000
Estimated Debts: $50,000,001 to $100,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Peter Kelly, president/CEO.
CIRCUIT CITY: 4th Cir. Affirms Ruling on Employee Class Claim
-------------------------------------------------------------
The U.S. Court of Appeals for the Fourth Circuit upheld lower
court rulings that barred former employees of Circuit City Stores
Inc. from filing class proofs of claim. Robert Gentry, Joseph
Skaf, Jonathan Card, and Jack Hernandez filed "class proofs of
claim," each asserting that it was filed for the Named Claimant as
a former employee of Circuit City and on behalf of a class of
other former employees similarly situated. The Named Claimants
alleged that they, together with the unnamed claimants, were owed
almost $150 million in unpaid overtime wages.
The case is ROBERT GENTRY; JOSEPH SKAF; JONATHAN CARD; JACK
HERNANDEZ, Plaintiffs-Appellants, v. ALFRED H. SIEGEL, solely in
his capacity as trustee of the Circuit City Stores, Inc.
Liquidating Trust, Defendant-Appellee, NATIONAL ASSOCIATION OF
CONSUMER ADVOCATES; NATIONAL ASSOCIATION OF CONSUMER BANKRUPTCY
ATTORNEYS, Amici Curiae, No. 10-2418 (4th Cir.).
The panel consists of Circuit Judges Paul V. Niemeyer, Dennis
Shedd, and Andre Davis. Judge Niemeyer wrote the opinion, in
which Judge Shedd and Judge Davis joined.
A copy of the Fourth Circuit's Feb. 2, 2012 Opinion is available
at http://is.gd/kb7Wv6from Leagle.com.
Michael C. Righetti, Esq., at Righetti Glugoski PC, in San
Francisco, California; and Jason Krumbein, Esq. --
jkrumbein@krumbeinlaw.com -- at Krumbein Consumer Legal Services,
Inc., in Richmond, Virginia, represent Gentry et al.
Robert J. Feinstein, Esq. -- rfeinstein@pszjlaw.com -- at
Pachulski Stang Ziehl & Jones LLP, in New York, argues for the
Circuit City trustee. Gregg M. Galardi, Esq., and Ian S.
Fredericks, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, in
Wilmington, Delaware; and Lynn Tavenner, Esq., and Paula S. Beran,
Esq. -- LTavenner@tb-lawfirm.com and PBeran@tb-lawfirm.com -- at
Tavenner & Beran, PLC, Richmond, Virginia, also represent the
Trustee.
Irv Ackelsberg, Esq. -- iackelsberg@langergrogan.com -- at Langer
Grogan & Diver, PC, in Philadelphia, Pennsylvania, for Amici
Curiae.
About Circuit City
Headquartered in Richmond, Virginia, Circuit City Stores Inc.
(NYSE: CC) -- http://www.circuitcity.com/-- was a specialty
retailer of consumer electronics, home office products,
entertainment software and related services in the U.S. and
Canada.
Circuit City Stores together with 17 affiliates filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code
(Bankr. E.D. Va. Lead Case No. 08-35653) on Nov. 10, 2008.
InterTAN Canada, Ltd., which runs Circuit City's Canadian
operations, also sought protection under the Companies' Creditors
Arrangement Act in Canada.
Gregg M. Galardi, Esq., and Ian S. Fredericks, Esq., at Skadden,
Arps, Slate, Meagher & Flom, LLP, are the Debtors' general
restructuring counsel. Dion W. Hayes, Esq., and Douglas M. Foley,
Esq., at McGuireWoods LLP, are the Debtors' local counsel. The
Debtors also tapped Kirkland & Ellis LLP as special financing
counsel; Wilmer, Cutler, Pickering, Hale and Dorr, LLP, as special
securities counsel; and FTI Consulting, Inc., and Rotschild Inc.
as financial advisors. The Debtors' Canadian general
restructuring counsel is Osler, Hoskin & Harcourt LLP. Kurtzman
Carson Consultants LLC is the Debtors' claims and voting agent.
The Debtors disclosed total assets of $3,400,080,000 and debts of
$2,323,328,000 as of Aug. 31, 2008.
Circuit City has opted to liquidate its 721 stores. It has
obtained the Bankruptcy Court's approval to pursue going-out-of-
business sales, and sell its store leases in Jan. 2009.
In May 2009, Systemax Inc., a multi-channel retailer of computers,
electronics, and industrial products, acquired certain assets,
including the name Circuit City, from the Debtors through a Court-
approved auction.
CIT GROUP: DBRS Assigns 'B' Rating to New Series C Notes
--------------------------------------------------------
DBRS, Inc. has assigned its B (high) rating to the new Series C
Notes issued by CIT Group Inc. (CIT or the Company). The trend on
the rating is Positive. This rating action does not impact the
issuer rating of CIT, which remains at B (high) with a Positive
trend.
The rating considers the secured position of the Series C Notes,
which benefit from a second lien on substantially all U.S. assets
of CIT that are not otherwise pledged to secure the borrowings of
special purpose entities and the equity of foreign subsidiaries.
Moreover, the Series C Notes rank pari passu with the existing
second lien Series A Notes and Series C Notes. Given the
aforementioned, the rating reflects DBRS's view that recovery on
the Series C Notes would be less than the first lien notes but
greater than the unsecured debt.
COSTA BONITA: Case Summary & 21 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Costa Bonita Beach Resort Inc.
P.O. Box 1788
Sabana Seca, PR 00952
Bankruptcy Case No.: 12-00778
Chapter 11 Petition Date: February 2, 2012
Court: U.S. Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Charles Alfred Cuprill, Esq.
CHARLES A CURPILL, PSC LAW OFFICE
356 Calle Fortaleza, Second Floor
San Juan, PR 00901
Tel: (787) 977-0515
E-mail: cacuprill@cuprill.com
Scheduled Assets: $15,066,592
Scheduled Liabilities: $14,234,916
The petition was signed by Carlos Escribano Miro, president.
Debtor's List of Its 21 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Asoc Residentes Costa Bonita Maintenance Fees $452,983
Beach Resort
P.O. Box 10668
San Juan, PR 00922
Prime Contractors Construction $448,469
MSC 213 Contractors
Ave Winston Churchill 138
San Juan, PR 00926
Crim Personal and Real $254,224
P.O. Box 195387 Property Taxes
San Juan, PR 00919-5387
ETCON Electrical Contractor $181,250
Modesto Torres Landscaping $80,000
Departamento de Hacienda de Pr Income Taxes $49,495
Specco Water Treatment $30,333
Gonzalez Nieto Barea Y Balzac Legal Services $30,000
Internal Revenue Services Payroll Taxes $23,515
Mario Garcia Buxo Purchase Deposit $22,575
PR Electric Power (PREPA) Aut Electric Power $21,446
Jose A. Chaves Carbia Purchase Deposit $20,500
Dr. Luis E. Gonzalez Cognet Purchase Deposit $17,500
Cesar Irizarry Purchase Deposit $17,500
Marie Bochetti Purchase Deposit $17,000
Flagship Improvements $13,444
Vazman Realty Inc. Purchase Deposit $10,000
Goldman Antonetti PSC Legal Services $8,709
Edalys Vega Purchase Deposit $5,000
Luis Roman Purchase Deposit $5,000
Edwin M. Ramirez Purchase Deposit $5,000
COUGAR OIL: Enters CCAA After Buyer Fails to Acquire Asset
----------------------------------------------------------
Cougar Oil and Gas Canada, Inc. requested and obtained an Order
from the Alberta Court of Queen's Bench providing creditor
protection under the Companies' Creditors Arrangement Act
(Canada). While under CCAA protection, the Company will continue
with its day to day operations.
On Nov. 15, 2011, the potential purchaser under a Binding Letter
of Intent to acquire some of the Company's non-core assets
defaulted on its agreements. The sale of these assets would have
removed a requirement to increase the ERCB LMR deposit. Because
the potential purchaser asked for multiple extensions and placed a
partial deposit, the Company agreed to several extensions of the
closing. However, the potential purchaser did not meet the
closing conditions or provide required pre-closing information to
the ERCB. As a result the ERCB prohibited the transfer of the
wells and the potential purchaser defaulted on the purchase of the
Company's none core assets. The delays in the acquisition process
then resulted in the ERCB putting Cougar on notice to increase its
LMR deposit.
To date, because the Company was not able to fund the $630,000 LMR
deposit in a manner satisfactory to the ERCB, the ERCB has ordered
the wells and facilities of the Company shut in until the LMR
deposit is made and the ERCB requirements are met. The Company
immediately appealed the order and is reviewing its options in
seeking damages due to the default of the potential purchaser
under the terms of the Binding Letter of Intent. The Company
operations were shut in starting on Jan. 23, 2012. The Company
continues to seek sufficient financing to get the wells turned
back on.
Additionally, as a result of the default of the potential
purchaser and the resultant ERCB action, the Company then had only
revenue from it's non operated gas properties which was
insufficient to continue day to day operations and pay existing
creditors.
Over the last several months, the Company has had its operations
reduced, its expenses increased and its net income reduced as a
result of the Rainbow Pipeline break, the wild fires of the Slave
Lake area and a short term drop in commodity prices. Because of
the capital conditions due to the last recession and the ongoing
problems in the European capital markets, the availability of
funding for operations and capital expenditures has become more
restricted and expensive.
The Board of Directors of Cougar has therefore decided to seek
CCAA protection after considering its currently available
alternatives. CCAA protection stays creditors and others from
enforcing rights against the Company and affords the Company the
opportunity to restructure its financial affairs. The Court has
granted CCAA protection until March 2, 2012, to be further
extended as required and approved by the Court.
"We made the difficult decision to seek creditor protection
because we believe this step to be in the best interest of all our
stakeholders," said William Tighe, Chief Executive Officer. "We
have been actively seeking options to manage our liquidity and to
raise the capital we need to proceed with developing our assets to
protect those assets and to find a solution that will enable them
to be developed, we are seeking options to restructure our
affairs."
While under CCAA protection, the Board of Directors maintains its
usual role and management remains responsible for the day to day
operations, under the supervision of a Court-appointed monitor,
Ernst and Young. The monitor will be responsible for reviewing
ongoing operations, assisting with the development and
implementation of a Plan of Arrangement that is established by
management, liaising with creditors and other stakeholders and
reporting to the Court. The Board of Directors and management
will be primarily responsible for determining whether a Plan for
restructuring the Company's affairs is feasible. Affected
stakeholders will have an opportunity to vote on the Plan. Before
the Plan is implemented it must be approved by the requisite
number and value of affected stakeholders contemplated by law and
approved by the Court.
CCAA protection enables the Company to continue with its day to
day operations until the CCAA status changes. The implications of
this process for shareholders will not be known until the end of
the restructuring process. If the secured stakeholders do not
approve a Plan in the manner contemplated by law, the Company will
likely be placed into receivership or bankruptcy. If by March 3,
2012, the Company has not filed a Plan or obtained an extension of
the CCAA protection, creditors and others will no longer be stayed
from enforcing their rights. The Company will issue a further
press release on or before March 3, 2012 to provide an update.
"We remain confident that our Trout oil assets and specifically
the new drilling program can be developed into long term
commercial facilities," Mr. Tighe concluded. "The timing of the
pipeline break and the long delay before the ERCB would permit
restoration of service, the well drilled in the spring of 2011
which had inclusive results and still needs $200,000 to properly
test it, the overall state of the world economy especially in
Europe which had provided the Company with much of it's financing
since inception, a short downturn in commodity prices in the
middle of the critical pipeline break, the lack of available
financing for junior companies like the Company, has impacted our
ability to access capital or to identify strategic alternatives to
enable us to proceed. We hope that through this process we will
be able to arrive at a satisfactory solution for all our
stakeholders including our shareholders."
Headquartered in Calgary, Canada, Cougar Oil and Gas Canada, Inc.,
formerly Ore-More Resources, Inc., was incorporated under the laws
of the Province of Alberta, Canada on June 20, 2007. The
Company's principal activity is in the exploration, development,
production and sale of oil and natural gas. The Company's main
operations are currently in the Alberta and British Columbia
provinces of Canada.
CPM PROPERTIES: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: CPM Properties, LLC
13725 Susan Kay Drive
Tampa, FL 33613
Bankruptcy Case No.: 12-01311
Chapter 11 Petition Date: January 31, 2012
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Catherine Peek McEwen
Debtor's Counsel: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
115 N. MacDill Avenue
Tampa, FL 33609-1521
Tel: (813) 877-4669
Fax: (813) 877-5543
E-mail: buddy@tampaesq.com
Scheduled Assets: $6,140,309
Scheduled Liabilities: $13,608,848
The Company?s list of its 20 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/flmb12-01311.pdf
The petition was signed by Harvey Estes, manager.
DAYTON INDUSTRIAL: Files for Chapter 11 Bankruptcy Protection
-------------------------------------------------------------
Ben Sutherly at DaytonDailyNews.com reports that Greater Dayton
Industrial Laser LLC filed on Feb. 1, 2012, a petition seeking
Chapter 11 protection in U.S. Bankruptcy Court in Ohio.
The report says the company estimated assets of $500,001 to
$1 million, and estimated debts of $100,001 to $500,000.
According to the report, U.S. Bank Equipment Finance in January
filed a civil lawsuit in Montgomery County Common Pleas Court over
Dayton Industrial's alleged default since early 2009 in making
payments for commercial equipment.
Greater Dayton Industrial Laser LLC provides laser cutting and
fabricating services.
DESERT GARDENS: Wants Court's Determination on SARE Status
----------------------------------------------------------
Desert Gardens IV, LLC, asks the U.S. Bankruptcy Court for the
District of Arizona to extend its exclusive period to file a
Chapter 11 Plan.
The Debtor notes that it has challenged U.S. Bank, N.A.'s Nov. 22,
2011 motion for determination that the Debtor is a Single Asset
Real Estate.
The Debtor requests that:
-- If the SARE motion is granted, the Debtor seeks to extend
the Section 362(d)(3) deadline to April 6, 2012; and
-- In the event that the SARE motion is denied, the Debtor
seeks to extend the Section 1121(c) exclusivity deadline
from Match 5, to April 6, and the deadline to have the Plan
confirmed from May 2 to June 8.
The Debtor relates that due to the uncertainties in the case --
SARE status and use of the cash collateral to pay professional
costs -- the Debtor needs an extension to file its Chapter 11
Plan.
About Desert Gardens IV
Desert Gardens IV LLC, owner of a 532-unit Desert Gardens
apartments in Glendale, Arizona, filed for Chapter 11 protection
to halt foreclosure that was set for Nov. 14. The project has two
31-story towers, one built in 1983 and the other in 2003. U.S.
Bank, the secured lender, is owed $26.3 million. The property is
estimated to be worth $16 million.
Desert Gardens IV filed a Chapter 11 petition (Bankr. D. Ariz.
Case No. 11-31061) on Nov. 4, 2011, in Phoenix. Jennings, Strouss
& Salmon, P.L.C., serves as the Debtor's counsel. Sierra
Consulting Group, LLC, is the financial advisor. The Debtor
disclosed $16,138,707 in assets and $27,141,725 in liabilities in
its schedules.
EAGLE POINT: Founder Files Own Chapter 11 Bankruptcy
----------------------------------------------------
Alex Ferreras at LoanSafe.org reports that Rogue Valley developer
Cris Galpin filed on Feb. 2, 2012, for Chapter 11 protection in
U.S. Bankruptcy Court in Eugene, Oregon, claiming debts of between
$50 million and $100 million and assets of less than $50 million.
According to the report, the filing came after the bankruptcy
filing by Mr. Galpin's Eagle Point Developments LLC, one of his
many ventures. Eagle Point Golf Course, built in 1996 and perhaps
the crown jewel of Mr. Galpin's efforts, created instant demand
for upscale homes in Eagle Point that continued for a decade
before the real estate bubble burst.
The report says a wave of foreclosures swept through the
residential area around the golf course and building virtually
ceased as property values declined. Eagle Point lots presently
shown on the Galpin and Associates Web site are priced at $99,900.
The report relates that Mr. Galpin has filed a motion to combine
the Eagle Point Developments filing before U.S. Bankruptcy Judge
Frank Alley III with his own case. Eagle Point Developments owes
its creditors nearly $10 million, while its assets easily surpass
that figure. Its creditors include U.S. Bank, which has a secured
claim of $8.2 million.
Eagle Point Developments LLC develops the Eagle Point Golf Course,
which was built in 1996.
ELLIPSO INC: Objections to Plan Outline Overruled
-------------------------------------------------
Bankruptcy Judge S. Martin Teel, Jr., overruled objections to the
Disclosure Statement explaining the joint plan of reorganization
filed by David Castiel, Gerald Helman, Linda Awkard, James H.
Bailey, Richard Burt, Laury Blakley, Butzel Long Tighe Patton
PLLC, and Dort Patent PC for the debtors Ellipso, Inc., Mobile
Communications Holdings, Inc., ESBH, Inc., and Virtual
Geosatellite LLC. John Page and Robert Patterson objected to the
disclosure statement. A hearing on the disclosure statement was
held Jan. 18, 2012.
Among other things, Mr. Page argues that substantive consolidation
cannot be accomplished through a confirmed plan. Both Messrs.
Page and Patterson object to Ellipso being allowed to retain its
equity interest in the subsidiaries after substantive
consolidation. Judge Teel said the objections are more
appropriately dealt with at a confirmation hearing.
Mr. Page also argues that the bankruptcy trustee has conflicts
representing both the subsidiaries and the parent corporation.
The judge said the time to raise this objection was prior to the
appointment of the trustee.
A copy of Judge Teel's Feb. 3, 2012 Memorandum Decision and Order
is available at http://is.gd/3QGu4efrom Leagle.com.
About Ellipso Inc.
Ellipso, Inc. is a privately held communications satellite system
design company, now in bankruptcy. Ellipso's subsidiaries include
Mobile Communications Holdings, Inc., ESBH, Inc., and Virtual
Geosatellite, LLC. Through these subsidiaries, Ellipso has
compiled this portfolio of intellectual property for various
communications satellite systems and high performance technology.
Utilizing unique and patented elliptical orbits, the systems were
intended to provide low cost voice, data, facsimile, paging and
geolocational services to subscribers around the world at prices
lower than competing systems.
Ellipso Inc. filed for Chapter 11 bankruptcy (Bankr. D. D.C.
Case No. 09-00148) on Feb. 25, 2009. Kermit A. Rosenberg, Esq.,
at Tighe Patton Armstrong Teasdale, PLLC -- now Butzel, Long,
Tighe, Patton -- in Washington, DC, served as the Debtor's
counsel. In its petition, the Debtor estimated under $50,000 in
assets and $1 million to $10 million in debts.
On Jan. 19, 2010, the Court granted the United States Trustee's
motion and directed the appointment of a chapter 11 trustee.
ENECO INC: Utah Ct. Affirms Dismissal of Claim Buyer's Suit
-----------------------------------------------------------
The Court of Appeals of Utah affirmed a trial court's dismissal of
Energy Claims Limited's claims against Catalyst Investment Group
Limited, Timothy Roberts, Christopher P. Baker, Thomas DePetrillo,
Charles Becker, and Robert Beuret for forum non conveniens, and
the dismissal of its claims against ARM Asset-Backed Securities,
S.A. for improper venue.
ECL was the assignee of Maximillian & Co., the collateral agent to
Eneco Inc.'s 2005 noteholders, which purchased Eneco's causes of
action against all of the defendants from its bankruptcy estate
for $750,000. ECL is a British Virgin Islands company with its
principal place of business in Tortola, British Virgin Islands.
On Jan. 9, 2009, ECL filed a complaint in the Third Judicial
District Court of Utah against Catalyst, ARM, and the Defendant
Directors, asserting three causes of action and praying for over
$150 million in relief. Among other things, ECL alleges that the
Defendant Directors breached their fiduciary duties to Eneco in
their dealings with Catalyst, ARM, and Roberts, and that the
Defendant Directors, Catalyst, Roberts, and ARM entered into a
civil conspiracy in furtherance of which the Defendant Directors
"(1) refused to pursue claims against Catalyst, ARM, and Roberts,
(2) released claims against Catalyst, ARM and Roberts, and (3)
released claims against Eneco Europe." None of the parties to the
complaint is a Utah resident.
The Defendant Directors denied the allegations of breach of
fiduciary duty and conspiracy. Catalyst seeks dismissal for
improper venue and forum non conveniens. Roberts joined in the
arguments advanced by Catalyst, and added the defense of failure
to state a claim.
The state appeals court held that the trial court did not exceed
its discretion in dismissing ECL's complaint for forum non
conveniens where none of the parties is a Utah resident, the
primary defendants and witnesses are located in Europe, and all
defendants have consented to the jurisdiction of the English
courts, providing ECL an alternative forum. The trial court
correctly interpreted the forum selection clause in a pre-
bankruptcy Subscription Agreement and correctly dismissed the
claims against ARM for improper venue.
The case is Energy Claims Limited, a British Virgin Islands
company, Plaintiff and Appellant, v. Catalyst Investment Group
Limited; Timothy Roberts; ARM Asset-Backed Securities, S.A.;
Christopher P. Baker; Thomas DePetrillo; Charles Becker; and
Robert Beuret, Defendants and Appellees, Case No. 20100128-CA
(Utah App. Ct.).
A copy of Associate Presiding Judge Carolyn B. McHugh's Feb. 2,
2012 Amended Opinion is available at http://is.gd/wfZml9from
Leagle.com. Judges J. Frederic Voros Jr., and Stephen L. Roth
concur.
About Eneco Inc.
Based in Salt Lake City, Utah, ENECO Inc. -- http://www.eneco.com/
-- developed the Thermal Chip, a semiconductor it claimed would
convert heat into electricity with a promise of substantial energy
savings and a reduction in harmful emissions. Eneco was
incorporated in Utah in 1991. Between 1999 and 2006, Eneco raised
and spent significant funds by selling equity in Eneco and
borrowing funds from lenders. One group of lenders, the so-called
2005 Noteholders, advanced several million dollars to Eneco,
securing the loans with Eneco's rights to its patents. By October
2007, Eneco was in default to the 2005 Noteholders and had no
means to satisfy the deficiencies.
Eneco filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. D.
Utah Case No. 08-20319). Scott A. Cummings, Esq., and Steven T.
Waterman, Esq., at Ray Quinney & Nebeker, represented the Debtor
in its restructuring efforts. The Debtor's schedules reflected
$25,098,286 in total assets and $1,685,493 in total debts. In
June 2008, the bankruptcy trustee converted the case to a
liquidation proceeding pursuant to Chapter 7 of the Bankruptcy
Code.
ENNIS COMMERCIAL: Unsecured Creditors to Be Paid from Assets Sale
-----------------------------------------------------------------
Terence J. Long, Chapter 11 Trustee for the bankruptcy estate of
Ben A. Ennis, and debtor Ennis Commercial Properties have filed a
Disclosure Statement explaining the proposed Joint Plan of
Reorganization dated Jan. 11, 2012.
According to the Disclosure Statement, the Plan provides that the
Debtor will market all of the properties held by the Debtor or an
entity controlled by the Debtor. If a property can be sold for an
amount that will provide a return to creditors that is greater
than creditors would receive from five years of the net income
from operating the property, then the property will be sold and
the net income realized from the sale will be paid to creditors.
Otherwise, each property will be operated for five years and all
of the net income generated from each property will be paid to
unsecured creditors.
The Plan will establish two committees which will oversee and make
decisions regarding properties and property values. One Committee
will oversee the properties owned before confirmation by ECP, and
the other committee will oversee the properties owned before
confirmation by Ennis or an entity controlled by Ennis.
Under the Plan, general unsecured claims against ECP will be paid
all of the net income and sale proceeds from ECP properties.
General unsecured claims against Ennis will be paid all of the net
income and sale proceeds from Ennis properties.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/ENNIS_COMMERCIAL_jointds.pdf
The Chapter 11 Trustee is represented by:
Justin D. Harris, Esq.
MOTSCHIEDLER, MICHAELIDES, WISHON, BREWER & RYAN, LLP
1690 West Shaw Avenue, Suite 200
Fresno, CA 93711
Tel: (559) 439-4000
Fax: (559) 439-5654
E-mail: jdh@mmwbr.com
About Ennis Commercial
Porterville, California-based Ennis Commercial Properties, LLC's
business consists of acquiring raw land and building commercial
developments. The Company then either operates or sells the
commercial buildings comprising the commercial development.
ECP is owned by Ben Ennis, Brian Ennis and Pamela Ennis, in equal
shares. On Sept. 20, 2010, Pam Ennis and Brian Ennis transferred
all of their ownership interests in ECP to Ben Ennis. ECP filed
for Chapter 11 bankruptcy protection on March 16, 2010 (Bankr.
E.D. Calif. Case No. 10-12709).
Peter L. Fear, Esq., and Gabriel J. Waddell, Esq., at the Law
Offices of Peter L. Fear, in Fresno, Calif., represent the Debtor
as counsel. No creditors committee has been formed in this case.
In its schedules, the Debtor disclosed $40,878,319 in assets and
$43,922,485 in liabilities.
Ben Ennis filed a voluntary petition under Chapter 11 (Bankr. E.D.
Calif. Case No. 10-62315) on Oct. 25, 2010.
On May 25, 2011, Terence Long was appointed as Chapter 11 Trustee
in the Benn Ennis bankruptcy. The Trustee thus stands in the
shoes of Ben Ennis. Consequently, the Trustee holds all of the
membership interests in ECP and controls it accordingly.
Justin D. Harris, Esq., at Motschiedler, Michaelides, Wishon,
Brewer & Ryan, LLP, in Fresno, Calif., represent Terence Long,
Chapter 11 Trustee, as counsel.
E*TRADE FINANCIAL: DBRS Confirms Issuer Debt Rating at 'B'
----------------------------------------------------------
DBRS, Inc. has confirmed the ratings for E*TRADE Financial
Corporation and E*TRADE Bank (the Bank). DBRS rates E*TRADE's
Issuer & Senior Debt at B (high) and the Bank's Deposits & Senior
Debt at BB. The trend on all long-term ratings has been revised
to Stable from Negative; the trend on the short-term ratings of
the Parent have also been revised to Stable from Negative, while
the trend on the short-term ratings of the Bank remain Stable.
In revising the trend to Stable, DBRS is taking into account the
strength of E*TRADE's retail investor franchise that has proven
resilient during this extended period of financial turmoil, as
well as factoring in some indications of receding levels of stress
in the U.S. financial market. While DBRS sees E*TRADE as still
exposed to the potential negative impact of adverse events, DBRS
perceives this risk as being appropriately factored into the
current rating level.
The return to a Stable trend reflects the Company's strong
performance in its core businesses, its demonstration of its
ability to generate solid underlying earnings, and its success in
improving its risk profile. Additionally, E*TRADE has been
successful in improving its funding and liquidity profile through
a debt refinancing, which lengthened its wholesale funding
maturities, while at the same time maintaining sufficient levels
of capitalization. At the same time, E*TRADE has significantly
de-risked its balance sheet through the reduction of its loan
portfolio. While DBRS views the Company as still facing certain
risks given that its businesses are intertwined with financial
markets that continue to face significant challenges, E*TRADE has
demonstrated its ability to cope with a stressed environment.
E*TRADE's rating of B (high) reflects a distinctive combination of
strong positives and significant negatives that often characterize
non-investment grade companies. Positively, E*TRADE's successful,
well-positioned on-line retail financial services franchise has
generated resilient underlying earnings despite the continued
market fragility. Negatively, the Company still carries an
elevated burden from its legacy residential real estate portfolios
and corporate interest expense. That being said, credit costs are
declining with improving delinquency trends and E*TRADE has
reduced its corporate debt burden, which strengthens its financial
profile. The Bank's rating of BB is positioned two notches above
the Parent's rating, reflecting the Parent's more limited
financial flexibility and the potential for regulatory restriction
of dividends from subsidiaries.
An important positive consideration for the ratings is E*TRADE's
success in maintaining momentum in its retail investor franchise,
despite the prolonged market disruption. Moreover, the Company
has continued to invest in its business, particularly through
marketing, improvements in technology and introduction of new
products. Pursuing its focused strategy, E*TRADE is driving
growth by building on its active trader franchise and expanding
its customer relationships with long-term investors, while
increasing the quality of its customer accounts and reducing the
brokerage account attrition rate. E*TRADE also benefits from its
well-positioned stock plan administration business that leverages
its product capabilities and is an important source of new
customers.
Another key underpinning of the ratings is the relatively
resilient earnings power generated by E*TRADE's successful direct
brokerage franchise. Despite annual losses in 2007-2010, the
Company was able to generate solid operating income before
provisions and taxes (IBPT) of approximately $200 million to $300
million per quarter, with just a few exceptions. Customer metrics
remain strong, with E*TRADE's brokerage customers continuing to
generate revenues through fees and commissions, as well as
supporting net interest income generation with their deposits and
margin borrowing. Successful expense control has also made an
important contribution to earnings. The resiliency of E*TRADE's
underlying earnings was evident in the return to profitability in
2011. With provisions down to approximately $100 million to $120
million per quarter, or about 80% below peak levels, and corporate
interest expense approximately halved, DBRS views the continued
positive earnings generation as sustainable in the current
environment.
Credit quality issues remain E*TRADE's biggest challenge,
especially given the still weak environment. DBRS notes that the
environment in the U.S., where E*TRADE's activities are mainly
focused, is showing some signs of improvement. Provisions
continue to absorb a sizable percentage of IBPT (55% in 2011), but
this is down significantly from prior years. Positively, the
Company is seeing improvements in loan performance trends, as
indicated by declines in at-risk delinquencies across all loan
types, as well as stabilization in other credit metrics.
Meanwhile, E*TRADE has materially reduced its gross loan
portfolios from a peak of over $30 billion at the end of 2007 to
$13.2 billion at the end of 2011.
Another significant challenge for the Company is its elevated
level of corporate interest expense, which at approximately $45
million per quarter, reduces earnings by a sizable amount. Of
note, the Company extended its debt maturities so that its
earliest debt maturity is now in December 2015. This should allow
E*TRADE greater flexibility to contend with other outstanding debt
issues, leaving open the possibility for the Company to pay down
some of the parent's debt, subject to regulatory approvals. While
DBRS views E*TRADE's ability to build capital at the Parent as
being constrained by these interest payments, the Company
maintains a comfortable capital cushion and ample loss absorption
capacity with a Tier 1 common ratio of 9.4% at the end of 2011.
Further progress in reducing the corporate debt burden and
lowering the stress on the Parent would be viewed positively,
provided capital cushions were maintained.
While DBRS views the current rating level as appropriately
reflecting the potential risks facing E*TRADE, the rating could be
negatively pressured if DBRS perceives any franchise weakening.
DBRS views E*TRADE as still facing significant headwinds given the
extended low interest rate environment and the potential for
further deterioration in its loan portfolios, which would pressure
earnings and leave open the possibility for additional losses.
Additionally, E*TRADE is working with new regulators, having
shifted from the OTC to the OCC and the Fed, and the Company will
need to gain their approval in order to proceed with certain
strategic initiatives, such as the upstreaming of capital from the
Bank to the Parent.
FAIRGREEN CAPITAL: Files Chapter 11 Reorganization Plan
-------------------------------------------------------
Kat Greene, staff writer at Atlanta Business Chronicle, reports
that Fairgreen Capital L.P. and its affiliates filed a
reorganization plan and got the votes it needed to approve the
plan in 2011. On Jan. 17, 2012, German American Capital Corp.
filed objections to the plan, saying it was unfair.
Fairgreen Capital L.P. and its affiliates engage in real estate
development and homebuilding.
FBH INVESTMENTS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: FBH Investments, LLC
40 Cape Andover
Newport Beach, CA 92660
Tel: (949) 677-2285
Bankruptcy Case No.: 12-11293
Chapter 11 Petition Date: January 31, 2012
Court: U.S. Bankruptcy Court
Central District of California (Santa Ana)
Judge: Robert N. Kwan
Debtor's Counsel: Jeffrey S. Benice, Esq.
LAW OFFICE OF JEFFREY S. BENICE
650 Town Center Drive, Suite 1300
Costa Mesa, CA 92626
Tel: (714) 641-3600
Fax: (714) 641-3604
E-mail: jsb@jeffreybenice.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Robert G. Farah, II, president.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Robert G. Farah, II 09-19563 09/09/09
FILENE'S BASEMENT: Equity Holders Want Exclusivity Termination
--------------------------------------------------------------
Dow Jones' DBR Small Cap reports that a bid by the equity group in
Syms Corp.'s bankruptcy proceedings could set the case up for
dueling Chapter 11 plans: one that proposes to liquidate the
company's valuable real-estate assets and one that proposes to
reorganize around them, according to new court documents.
BankruptcyData.com reports that Syms Corp's official committee of
equity security holders filed with the U.S. Bankruptcy Court a
motion for termination of the exclusive period during which only
the Debtors may file a Chapter 11 plan and solicit acceptances
thereof.
According to the committee, "On Jan. 11, 2012, the Equity
Committee provided the Debtors and the Creditors Committee a term
sheet for a plan that reorganizes Syms as a real estate holding
company. The plan presented pays all allowed claims against Syms
in full in cash as of the effective date, and reserves sufficient
capital to pay the claims of any Filene's Basement creditors that
are determined to hold valid claims against Syms. It is financed
through a combination of debt, an equity rights offering, or a new
real estate investment partner. Put simply, the Equity Committee's
plan will achieve a quick exit from bankruptcy for Syms, pay
allowed claims against Syms in full, and maximize the recovery to
Syms's equity holders."
The Court scheduled a March 7, 2012 hearing on the matter.
About Filene's Basement & Syms Corp.
Massachusetts-based Filene's Basement, also called The Basement,
is the oldest off-price retailer in the United States. The
Basement focuses on high-end goods and is known for its
distinctive, low-technology automatic markdown system.
Filene's Basement first filed for Chapter 11 bankruptcy protection
in August 1999. Filene's Basement was bought by a predecessor of
Retail Ventures, Inc., the following year. Retail Ventures in
April 2009 transferred the unit to Buxbaum.
Filene's Basement, Inc. and its affiliates filed for Chapter 22
(Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by
lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy
Solutions serves as claims and notice agent. The Debtors
disclosed assets of $236 million, including real estate of $97.7
million, and liabilities of $94 million, including $31.1 million
owing on a revolving credit with Bank of America NA as agent. In
addition, there were $11.1 million in letters of credit
outstanding on the revolver.
The 2009 Debtor was formally renamed FB Liquidating Estate,
following the sale of all of its assets to Syms Corp. in June
2009.
Pursuant to the Liquidating Plan confirmed in January 2010,
secured creditors in the Chapter 11 case have been paid in full,
and holders of priority, administrative and convenience class
claims have received 100% of their allowed claims. As reported by
the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen,
Chairman of Abacus Advisors LLC and Chief Restructuring Officer
for FB Liquidating Estate disclosed that a second distribution of
dividend checks to Filene's unsecured creditors amounting to 12.5%
of approved claims has been made, bringing the cumulative
distributions on unsecured claims to 62.5%.
On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and
two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos.
11-13511 to 11-13514) after a failed bid to sell the business.
The two units are Syms Clothing Inc. and Syms Advertising Inc.
Judge Kevin J. Carey presides over the case. Lawyers at Skadden
Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The
Debtors tapped Rothschild Inc. as investment banker and Cushman
and Wakefield Securities, Inc., as real estate financial advisors.
Syms shuttered its namesake and Filene's Basement outlets upon the
bankruptcy filing and tapped a joint venture of Gordon Brothers
Retail Partners LLC and Hilco Merchant Resources LLC to run the
going-out-of-business sales. The sale may continue until Jan. 31,
2012.
Filene's Basement estimated $1 million to $10 million in assets
and $50 million to $100 million in debts. The petitions were
signed by Gary Binkoski, authorized representative of Filene's
Basement.
The official committee of unsecured creditors appointed in the
2011 case has retained Hahn & Hessen LLP as legal counsel.
Holders of equity in Syms Corp. pushed for an official
shareholders' committee and separation of the Syms and Filene's
Basement bankruptcy estates.
Gordon Brothers and Hilco are represented by Goulston & Storrs,
P.C. and Ashby & Geddes, P.A.
GALP CYPRESS: Section 341(a) Meeting Scheduled for Feb. 9
---------------------------------------------------------
The U.S. Trustee for Region 7 will convene a meeting of creditors
of GALP Cypress Limited Partnership on Feb. 9, 2012, at 10:30 a.m.
at Suite 3401, 515 Rusk Ave. Houston, Texas.
Deadline to file proofs of claim is May 9.
This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
About GALP Cypress
GALP Cypress Limited Partnership owns an apartment complex in
Houston, Texas. The Debtor filed for Chapter 11 bankruptcy
(Bankr. S.D. Tex. Case No. 11-40427) on Dec. 6, 2011. Judge
Letitia Z. Paul presides over the case. The Debtor estimated
assets of $10 million to $50 million and debts of $1 million to
$10 million. Gary Gray signed the petition as president of
Cypress-1 GP, Inc., general partner of Cypress GP, L.P. The
Debtor is represented by Matthew Hoffman, Esq., at Law Offices of
Matthew Hoffman, P.C.
This is the second case filed by the Debtor. The Debtor's
previous case was filed on Oct. 4, 2010, under Bankruptcy Case
Number 10-38991, and was dismissed Sept. 29, 2011, on an unopposed
motion of the US Trustee.
GALP CYPRESS: U.S. Trustee Wants Case Converted or Dismissed
------------------------------------------------------------
Judy A. Robbins, the U.S. Trustee for the Southern District of
Texas, asks the Bankruptcy Court to convert or dismiss the Chapter
11 case of GALP Cypress Limited Partnership.
At a hearing on Jan. 11, 2012, the Court lifted the stay to allow
a secured creditor to proceed with foreclosure of the real estate
owned by the Debtor. The US Trustee says this asset is necessary
for the Debtor to have any reasonable prospect at reorganization.
The Court found that the second case was filed in bad faith.
About GALP Cypress
GALP Cypress Limited Partnership owns an apartment complex in
Houston, Texas. The Debtor filed for Chapter 11 bankruptcy
(Bankr. S.D. Tex. Case No. 11-40427) on Dec. 6, 2011. Judge
Letitia Z. Paul presides over the case. The Debtor estimated
assets of $10 million to $50 million and debts of $1 million to
$10 million. Gary Gray signed the petition as president of
Cypress-1 GP, Inc., general partner of Cypress GP, L.P. The
Debtor is represented by Matthew Hoffman, Esq., at Law Offices of
Matthew Hoffman, P.C.
This is the second case filed by the Debtor. The Debtor's
previous case was filed on Oct. 4, 2010, under Bankruptcy Case
Number 10-38991, and was dismissed Sept. 29, 2011, on an unopposed
motion of the US Trustee.
GALP CYPRESS: Court Approves Matthew Hoffman as Attorney
--------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas
authorized GALP Cypress Limited Partnership to employ the Law
Offices of Matthew Hoffman, PC, as its attorney.
The firm can be reached at:
Matthew Hoffman, Esq.
LAW OFFICES OF MATTHEW HOFFMAN, P.C.
2777 Allen Parkway, Suite 1000
Houston, TX 77019
Tel: (713) 654-9990
Fax: (713) 654-0038
About GALP Cypress
GALP Cypress Limited Partnership owns an apartment complex in
Houston, Texas. The Debtor filed for Chapter 11 bankruptcy
(Bankr. S.D. Tex. Case No. 11-40427) on Dec. 6, 2011. Judge
Letitia Z. Paul presides over the case. The Debtor estimated
assets of $10 million to $50 million and debts of $1 million to
$10 million. Gary Gray signed the petition as president of
Cypress-1 GP, Inc., general partner of Cypress GP, L.P. The
Debtor is represented by Matthew Hoffman, Esq., at Law Offices of
Matthew Hoffman, P.C.
This is the second case filed by the Debtor. The Debtor's
previous case was filed on Oct. 4, 2010, under Bankruptcy Case
Number 10-38991, and was dismissed Sept. 29, 2011, on an unopposed
motion of the US Trustee.
GEOMET INC: Gets NASDAQ Global Market Listing Deficiency Notice
---------------------------------------------------------------
GeoMet, Inc. received notice from The NASDAQ Stock Market advising
the company that, for the previous 30 consecutive business days,
the bid price for the company's common stock had closed below the
minimum $1.00 per share required under NASDAQ Marketplace Rule
5450(a)(1) for continued listing on the NASDAQ Global Market. The
notification letter states that the Company will be afforded 180
calendar days to regain compliance with the minimum bid price
requirement. In order to regain compliance, the bid price of the
company's common stock must close at $1.00 per share or more for a
minimum of ten consecutive business days. The grace period
expires on Aug. 1, 2012. In the event that the bid price
deficiency is not cured by that time, the Company's securities
will be subject to delisting. An additional 180-day period will
be available to regain compliance if the Company transfers its
listing to the NASDAQ Capital Market and meets all other listing
requirements. The notification letter has no effect on the
listing or trading of the Company's common stock and preferred
stock on the NASDAQ Global Market at this time. No financial
covenants or other agreements are impacted by this notice.
The company intends to actively monitor the bid price for its
common stock between now and Aug. 1, 2012 and will consider all
available options to resolve the deficiency and regain compliance
with the NASDAQ Global Market minimum bid price requirement.
GFI/GLOBAL FINANCIAL: Case Summary & 5 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: GFI/Global Financial Investments, LLC
15560 N. Frank Lloyd Wright Boulevard, B4-436
Scottsdale, AZ 85260
Bankruptcy Case No.: 12-01857
Chapter 11 Petition Date: February 1, 2012
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: Randolph J. Haines
Debtor's Counsel: Harold E. Campbell, Esq.
CAMPBELL & COOMBS, P.C.
1811 S. Alma School Road, Suite 225
Mesa, AZ 85210
Tel: (480) 839-4828
Fax: (480) 897-1461
E-mail: heciii@haroldcampbell.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its five largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/azb12-01857.pdf
The petition was signed by Dustin Bowen, managing member.
GMKHOURY, INC.: Case Summary & 10 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: GMKhoury, Inc.
dba Mksahoury
DQ Grill and Chill
8410 Citrus Park Drive
Tampa, FL 33625
Bankruptcy Case No.: 12-01279
Chapter 11 Petition Date: January 31, 2012
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Michael G. Williamson
Debtor's Counsel: Michael C. Markham, Esq.
JOHNSON POPE BOKOR RUPPEL & BURNS, LLP
P.O. Box 1368
Clearwater, FL 33757
Tel: (727) 461-1818
Fax: (727) 443-6548
E-mail: mikem@jpfirm.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its 10 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/flmb12-01279.pdf
The petition was signed by Marwan J. Sahoury, president.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Lykat, Inc. 12-01270 01/31/12
H&H BAGELS: GA Keen Sells Former Property for $11 Million
---------------------------------------------------------
GA Keen Realty Advisors, LLC, disclosed that the sale of the
former home to H&H Bagels, located at 639 West 46th Street in New
York City closed on Feb. 2, 2012 at the price of $11 million.
Yann Geron, the Chapter 7 Trustee for Third Toro Family Limited
Partnership, the owner of the property, hired GA Keen to solicit
and negotiate the stalking horse contract and market the property
for higher and better offers. On Nov. 14, 2011, Mr. Geron filed
with the bankruptcy court a stalking horse contract to sell the
property for $10 million and bidding procedures were approved
pursuant to a court order on Dec. 1, 2011. The procedures called
for higher and better offers to be presented no later than
Dec. 30, 2011, with an auction to be held on Jan. 4, 2012.
"As we expected, there was a lot of interest in the property,"
said Matthew Bordwin, Co-President of GA Keen Realty Advisors.
"The minimum bid was set at $10.4 million, but because it was
25,000 square feet of prime real estate in Midtown, we anticipated
there would be some strong competition to purchase the property.
It's going to provide the buyer with an excellent redevelopment
opportunity in the Midtown West section of the city."
The property sold is a two-story building, with each story
offering 12,500 square feet of space, which had been previously
used to house H&H Bagels' manufacturing plant and retail store.
Located on a 0.29 acre site by the West Side Highway near the
Intrepid Sea, Air and Space Museum, the property is zoned for
commercial, manufacturing or industrial use.
GA Keen Realty Advisors provides real estate analysis, valuation
and strategic planning services, brokerage, M&A, auction services,
lease restructuring services and real estate capital market
services.
HARRISBURG, PA: Receiver Offers Plan to Deal With $300MM Debt
-------------------------------------------------------------
Dow Jones' DBR Small Cap reports that a state-appointed financial
custodian released a recovery plan for Harrisburg, moving
Pennsylvania's cash-strapped capital closer to resolving $300
million in debt and ending a long-running dispute between
Harrisburg's mayor and city council.
About Harrisburg, Pennsylvania
The city of Harrisburg, in Pennsylvania, is coping with debt
related to a failed revamp of an incinerator. The city is
$65 million in default on $242 million owing on bonds sold to
finance an incinerator that converts trash to energy.
The Harrisburg city council voted 4-3 on Oct. 11, 2011, to
authorize the filing of a Chapter 9 municipal bankruptcy (Bankr.
M.D. Pa. Case No. 11-06938). The city claims to be insolvent,
unable to pay its debt and in imminent danger of having
tax revenue seized by holders of defaulted bonds.
Judge Mary D. France presided over the Chapter 9 case. Mark D.
Schwartz, Esq. and David A. Gradwohl, Esq., served as Harrisburg's
counsel. The petition estimated $100 million to $500 million in
assets and debts. Susan Wilson, the city's chairperson on Budget
and Finance, signed the petition.
Harrisburg said in court papers it is in imminent jeopardy through
six pending legal actions by creditors with respect to a number of
outstanding bond issues relating to the Harrisburg Materials,
Energy, Recycling and Recovery Facilities, which processes waste
into steam and electrical energy. The owner and operator of the
incinerator is The Harrisburg Authority, which is unable to pay
the bond issues. The city is the primary guarantor under each
bond issue. The lawsuits were filed by Dauphin County, where
Harrisburg is located, Joseph and Jacalyn Lahr, TD Bank N.A., and
Covanta Harrisburg Inc.
The Commonwealth of Pennsylvania, the County of Dauphin, and
Harrisburg city mayor Linda D. Thompson and other creditors and
interested parties objected to the Chapter 9 petition. The state
later adopted a new law allowing the governor to appoint a
receiver.
Kenneth W. Lee, Esq., Christopher E. Fisher, Esq., Beverly Weiss
Manne, Esq., and Michael A. Shiner, Esq., at Tucker Arensberg,
P.C., represented Mayor Thompson in the Chapter 9 case. Counsel to
the Commonwealth of Pennsylvania was Neal D. Colton, Esq., Jeffrey
G. Weil, Esq., Eric L. Scherling, Esq., at Cozen O'Connor.
In November 2011, the Bankruptcy Judge dismissed the Chapter 9
case because (1) the City Council did not have the authority under
the Optional Third Class City Charter Law and the Third Class City
Code to commence a bankruptcy case on behalf of Harrisburg and (2)
the City was not specifically authorized under state law to be a
debtor under Chapter 9 as required by 11 U.S.C. Sec. 109(c)(2).
That same month, the state governor appointed David Unkovic as
receiver for Harrisburg. Mr. Unkovic is represented by the
Municipal Recovery & Restructuring group of McKenna Long &
Aldridge LLP, led by Keith Mason, Esq., co-chair of the group.
HAYES LEMMERZ: S&P Affirms 'B' Corporate Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit ratings on Michigan-based auto supplier Hayes Lemmerz
international Inc., removed the rating from CreditWatch with
developing implications, where it was placed on Oct. 10,
2011, and assigned a positive outlook to the company.
"Subsequently, we withdrew all ratings, including our 'B'
corporate credit rating, on Hayes Lemmerz at the company's
request. The ratings withdrawal follows the completed acquisition
of Hayes by a subsidiary of unrated Brazilian company Iochpe-
Maxion S.A. on Feb. 1. All of its rated debt was repaid at
transaction close and as a result, we have also withdrawn the
issue-level and recovery ratings on Hayes' previously outstanding
senior secured term loan B," S&P said.
HMC/CAH CONSOLIDATED: Taps Denman & Company as Financial Advisor
----------------------------------------------------------------
HMC/CAH Consolidated, Inc., et al., sought and obtained permission
from the Bankruptcy Court to employ Denman & Company, LLP, as
their financial advisor. The Debtors believe that the employment
of Denman as their financial advisor will significantly aid them
in a variety of facets of their financial reporting and analysis
over the coming months, including ongoing budgeting, forecasting,
and compliance both with the requirements of the Bankruptcy
process and planning, as well as the specific requirements imposed
upon the Debtors as health care providers.
To the best of Debtors' knowledge, Denman does not hold or
represent an interest adverse their estates and is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The hourly rates of Denman professionals are:
Partners $210 - $310
Managers $170 - $200
Supervisors $140 - $160
In-Charge Seniors $120 - $130
Staff $80 - $110
The Debtors agree to reimburse Denman for its reasonable expenses.
Denman will receive a retainer of $10,000.
About HMC/CAH Consolidated
Kansas City, Missouri-based HMC/CAH Consolidated, Inc., is in the
business of acquiring and operating a system of acute care
hospitals located in rural communities that are certified by The
Centers for Medicare and Medicaid Services as Critical Access
Hospitals or CAHs. The core focus of HMC/CAH's business plan is
to replace the technologically out of date and operationally
inefficient medical facilities of its CAHs with newly constructed
state-of-the art facilities. Since its incorporation, HMC/CAH has
purchased 12 rural hospitals certified as Critical Access
Hospitals. These CAH Hospitals are located in Kansas (3),
Oklahoma (5), Missouri (1), Tennessee (1) and North Carolina (2).
The CAH Hospitals are the lifeline of the communities that they
serve. The CAH Hospitals provide critical health services to
rural residents, including emergency medical services.
HMC/CAH and 12 affiliates filed for Chapter 11 bankruptcy (Bankr.
W.D. Mo. Case Nos. 11-44738 to 11-44750) on Oct. 10, 2011. Judge
Dennis R. Dow presides over the case. Mark T. Benedict, Esq., at
Husch Blackwell Sanders LLP, represents the Debtors as counsel.
In its petition, the Debtors estimated $10 million to $50 million
in assets and debts. The petition was signed by Dennis Davis,
chief legal officer.
Nancy J. Gargula, U.S. Trustee for Region 13, appointed five
members to serve on the Official Committee of Unsecured Creditors
of HMC/CAH Consolidated, Inc. Kilpatrick Townsend & Stockton LLP
serves as the committee's counsel.
HMC/CAH CONSOLIDATED: Wants Plan Filing Period Extended to June 6
-----------------------------------------------------------------
HMC/CAH Consolidated, Inc., et al., ask the Bankruptcy Court to
extend their exclusive period to file a plan of reorganization
until June 6, 2012, and to solicit acceptances of that Plan
through Aug. 6.
The Debtors relate they have accomplished a number of important
tasks in the early days of these cases, including having
successfully negotiated and secured the use of cash collateral as
a means of ensuring adequate financing of their operations as they
develop their exit strategy.
This extension, according to the Debtors, will allow them to
establish a bar date to consider the claims exposure of the
various Debtors, to negotiate with various parties-in-interest,
and provide the Debtors the opportunity to formulate, propose, and
solicit a plan, without the distraction and disruption of their
efforts that might be caused by the filing of competing plans by
non-Debtor parties.
About HMC/CAH Consolidated
Kansas City, Missouri-based HMC/CAH Consolidated, Inc., is in the
business of acquiring and operating a system of acute care
hospitals located in rural communities that are certified by The
Centers for Medicare and Medicaid Services as Critical Access
Hospitals or CAHs. The core focus of HMC/CAH's business plan is
to replace the technologically out of date and operationally
inefficient medical facilities of its CAHs with newly constructed
state-of-the art facilities. Since its incorporation, HMC/CAH has
purchased 12 rural hospitals certified as Critical Access
Hospitals. These CAH Hospitals are located in Kansas (3),
Oklahoma (5), Missouri (1), Tennessee (1) and North Carolina (2).
The CAH Hospitals are the lifeline of the communities that they
serve. The CAH Hospitals provide critical health services to
rural residents, including emergency medical services.
HMC/CAH and 12 affiliates filed for Chapter 11 bankruptcy (Bankr.
W.D. Mo. Case Nos. 11-44738 to 11-44750) on Oct. 10, 2011. Judge
Dennis R. Dow presides over the case. Mark T. Benedict, Esq., at
Husch Blackwell Sanders LLP, represents the Debtors as counsel.
In its petition, the Debtors estimated $10 million to $50 million
in assets and debts. The petition was signed by Dennis Davis,
chief legal officer.
Nancy J. Gargula, U.S. Trustee for Region 13, appointed five
members to serve on the Official Committee of Unsecured Creditors
of HMC/CAH Consolidated, Inc. Kilpatrick Townsend & Stockton LLP
serves as the committee's counsel.
HMC/CAH CONSOLIDATED: Committee Taps J.H. Cohn as Fin'l Advisor
---------------------------------------------------------------
The Official Committee of Unsecured Creditors of HMC/CAH
Consolidated, Inc., et al., sought and obtained permission from
the Bankruptcy Court to retain J.H. Cohn LLP as its financial
advisor, nunc pro tunc to Dec. 5, 2011. The Committee has
selected JHC as its financial advisors because of its experience
and knowledge in the area of insolvency accounting and in the
hospital/healthcare industry.
JHC will, among other things, periodically monitor the Debtors'
key operational trends, including volume, productivity and cash
management. JHC will also provide, tax services, valuation
assistance, forensic accounting services, corporate finance
advise, compensation and benefits consulting, or other specialized
services.
JHC's current hourly rates are:
Partners $580 - $790
Managers, Senior Managers, Directors $420 - $610
Other Professional Staff $260 - $400
Paraprofessionals $180
The professionals who will be primarily responsible for
representing the Committee and their current hourly rates are
Clifford A. Zucker ($650) and Harold Emahiser ($530). JHC has
agreed that, for purposes of these cases, Mr. Zucker's rate will
be voluntarily reduced to $585.
The Committee has also agreed that JHC will be reimbursed from the
Debtors' estates for all actual out-of-pocket expenses incurred by
the firm on the Committee's behalf, including telephone and
telecopier toll and other charges, express mail charges, special
or hand delivery charges, document processing, photocopying
charges, travel expenses, computerized research, transcription
costs, as well as non-ordinary overhead expenses.
Clifford A. Zucker, a partner of J.H. Cohn LLP, attests to the
Court that he and his firm are "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
About HMC/CAH Consolidated
Kansas City, Missouri-based HMC/CAH Consolidated, Inc., is in the
business of acquiring and operating a system of acute care
hospitals located in rural communities that are certified by The
Centers for Medicare and Medicaid Services as Critical Access
Hospitals or CAHs. The core focus of HMC/CAH's business plan is
to replace the technologically out of date and operationally
inefficient medical facilities of its CAHs with newly constructed
state-of-the art facilities. Since its incorporation, HMC/CAH has
purchased 12 rural hospitals certified as Critical Access
Hospitals. These CAH Hospitals are located in Kansas (3),
Oklahoma (5), Missouri (1), Tennessee (1) and North Carolina (2).
The CAH Hospitals are the lifeline of the communities that they
serve. The CAH Hospitals provide critical health services to
rural residents, including emergency medical services.
HMC/CAH and 12 affiliates filed for Chapter 11 bankruptcy (Bankr.
W.D. Mo. Case Nos. 11-44738 to 11-44750) on Oct. 10, 2011. Judge
Dennis R. Dow presides over the case. Mark T. Benedict, Esq., at
Husch Blackwell Sanders LLP, represents the Debtors as counsel.
In its petition, the Debtors estimated $10 million to $50 million
in assets and debts. The petition was signed by Dennis Davis,
chief legal officer.
Nancy J. Gargula, U.S. Trustee for Region 13, appointed five
members to serve on the Official Committee of Unsecured Creditors
of HMC/CAH Consolidated, Inc. Kilpatrick Townsend & Stockton LLP
serves as the committee's counsel.
HMC/CAH CONSOLIDATED: Creditors Tap Lentz Clark as Local Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of HMC/CAH
Consolidated, Inc., et al., seeks permission from the Bankruptcy
Court to retain Lentz Clark Deines PA as its local counsel, nunc
pro tunc to Oct. 27, 2011. Lentz Clark intends to work closely
with the Debtors' representatives, the Committee's lead counsel,
and other professionals, if any, retained by the Committee, to
ensure that there is no unnecessary duplication of services
charged to the Debtors' estates.
At current, Lentz Lentz Clark's hourly rates are
Partners $295 - $325
Associates $150 - $175
Paralegals $90
Lentz Clark will charge the estates for its fees and expenses in a
manner and at rates consistent with charges made generally to the
firm's other clients and all requests for reimbursement of
expenses will be consistent with guidelines established by the
Bankruptcy Court or the Executive Office of the United States
Trustee.
Jeffrey A. Deines, Esq., assures the Court that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached at:
Jeffrey A. Deines, Esq.
LENTZ CLARK DEINES PA
9260 Glenwood
Overland Park, Kansas 66212
Tel: (913) 648-0600
Fax: (913) 648-0664
E-mail: jdeines@lcdlaw.com
About HMC/CAH Consolidated
Kansas City, Missouri-based HMC/CAH Consolidated, Inc., is in the
business of acquiring and operating a system of acute care
hospitals located in rural communities that are certified by The
Centers for Medicare and Medicaid Services as Critical Access
Hospitals or CAHs. The core focus of HMC/CAH's business plan is
to replace the technologically out of date and operationally
inefficient medical facilities of its CAHs with newly constructed
state-of-the art facilities. Since its incorporation, HMC/CAH has
purchased 12 rural hospitals certified as Critical Access
Hospitals. These CAH Hospitals are located in Kansas (3),
Oklahoma (5), Missouri (1), Tennessee (1) and North Carolina (2).
The CAH Hospitals are the lifeline of the communities that they
serve. The CAH Hospitals provide critical health services to
rural residents, including emergency medical services.
HMC/CAH and 12 affiliates filed for Chapter 11 bankruptcy (Bankr.
W.D. Mo. Case Nos. 11-44738 to 11-44750) on Oct. 10, 2011. Judge
Dennis R. Dow presides over the case. Mark T. Benedict, Esq., at
Husch Blackwell Sanders LLP, represents the Debtors as counsel.
In its petition, the Debtors estimated $10 million to $50 million
in assets and debts. The petition was signed by Dennis Davis,
chief legal officer.
Nancy J. Gargula, U.S. Trustee for Region 13, appointed five
members to serve on the Official Committee of Unsecured Creditors
of HMC/CAH Consolidated, Inc. Kilpatrick Townsend & Stockton LLP
serves as the committee's counsel.
HMC/CAH CONSOLIDATED: Marissa Lane Named Patient Care Ombudsman
---------------------------------------------------------------
Nancy J. Gargula, the U.S. Trustee for the Western District of
Missouri, appointed a patient care ombudsman in the bankruptcy
case of CAH Acquisition Company #16, LLC, Case No. 11-44750, d/b/a
Haskell County Community Hospital:
E. Marissa Lane, J.D., R.N.
E. Marissa Lane, PLLC
1612 Brighton Avenue
Oklahoma City, OK 73120
Tel: (405) 819-9966
The U.S. Trustee received information of certain alleged
deficiencies in patient care at the hospital operated by CAH 16.
The U.S. Trustee shared this information with Debtors' counsel and
requested a response. The Debtors provided a response and advised
of an extensive investigation performed by HMC/CAH personnel of
the allegations. The Debtors recognize the benefit of assuring
that there are no further alleged deficiencies in patient care at
the hospital operated by CAH 16. Accordingly, the Debtors have
agreed to the appointment of a patient care ombudsman only in the
case of CAH Acquisition Company #16, LLC, for the purpose of
monitoring the patient care at the Haskell County Community
Hospital.
The CAH 16 Ombudsman will be entitled to payment of fees and
expenses in an amount not to exceed $5,000.
The Bankruptcy Judge approved the Stipulation and Agreed Order
authorizing the appointment of CAH 16 Ombudsman.
About HMC/CAH Consolidated
Kansas City, Missouri-based HMC/CAH Consolidated, Inc., is in the
business of acquiring and operating a system of acute care
hospitals located in rural communities that are certified by The
Centers for Medicare and Medicaid Services as Critical Access
Hospitals or CAHs. The core focus of HMC/CAH's business plan is
to replace the technologically out of date and operationally
inefficient medical facilities of its CAHs with newly constructed
state-of-the art facilities. Since its incorporation, HMC/CAH has
purchased 12 rural hospitals certified as Critical Access
Hospitals. These CAH Hospitals are located in Kansas (3),
Oklahoma (5), Missouri (1), Tennessee (1) and North Carolina (2).
The CAH Hospitals are the lifeline of the communities that they
serve. The CAH Hospitals provide critical health services to
rural residents, including emergency medical services.
HMC/CAH and 12 affiliates filed for Chapter 11 bankruptcy (Bankr.
W.D. Mo. Case Nos. 11-44738 to 11-44750) on Oct. 10, 2011. Judge
Dennis R. Dow presides over the case. Mark T. Benedict, Esq., at
Husch Blackwell Sanders LLP, represents the Debtors as counsel.
In its petition, the Debtors estimated $10 million to $50 million
in assets and debts. The petition was signed by Dennis Davis,
chief legal officer.
Nancy J. Gargula, U.S. Trustee for Region 13, appointed five
members to serve on the Official Committee of Unsecured Creditors
of HMC/CAH Consolidated, Inc. Kilpatrick Townsend & Stockton LLP
serves as the committee's counsel.
HMC/CAH CONSOLIDATED: Files Schedules of Assets and Liabilities
---------------------------------------------------------------
HMC/CAH Consolidated, Inc., filed with the Bankruptcy Court its
schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $9,737,313
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $23,444,638
E. Creditors Holding
Unsecured Priority
Claims $18,000
F. Creditors Holding
Unsecured Non-priority
Claims $902,908
----------- -----------
TOTAL $9,737,313 $24,365,547
A full-text copy of the Schedules is available for free at:
http://bankrupt.com/misc/HMC_CAH_sal.pdf
About HMC/CAH Consolidated
Kansas City, Missouri-based HMC/CAH Consolidated, Inc., is in the
business of acquiring and operating a system of acute care
hospitals located in rural communities that are certified by The
Centers for Medicare and Medicaid Services as Critical Access
Hospitals or CAHs. The core focus of HMC/CAH's business plan is
to replace the technologically out of date and operationally
inefficient medical facilities of its CAHs with newly constructed
state-of-the art facilities. Since its incorporation, HMC/CAH has
purchased 12 rural hospitals certified as Critical Access
Hospitals. These CAH Hospitals are located in Kansas (3),
Oklahoma (5), Missouri (1), Tennessee (1) and North Carolina (2).
The CAH Hospitals are the lifeline of the communities that they
serve. The CAH Hospitals provide critical health services to
rural residents, including emergency medical services.
HMC/CAH and 12 affiliates filed for Chapter 11 bankruptcy (Bankr.
W.D. Mo. Case Nos. 11-44738 to 11-44750) on Oct. 10, 2011. Judge
Dennis R. Dow presides over the case. Mark T. Benedict, Esq., at
Husch Blackwell Sanders LLP, represents the Debtors as counsel.
In its petition, the Debtors estimated $10 million to $50 million
in assets and debts. The petition was signed by Dennis Davis,
chief legal officer.
Nancy J. Gargula, U.S. Trustee for Region 13, appointed five
members to serve on the Official Committee of Unsecured Creditors
of HMC/CAH Consolidated, Inc. Kilpatrick Townsend & Stockton LLP
serves as the committee's counsel.
IH-2 LLC: Hotel Lowry Owner Files for Chapter 11 in St. Paul
------------------------------------------------------------
IH-2, LLC, doing business as Lowry Square Apartments and Hotel
Lowry, filed a bare-bones Chapter 11 petition (Bankr. D. Minn.
Case No. 12-30627) in its hometown in St. Paul, Minnesota.
The Debtor estimated assets of up to $50 million and debts of up
to $10 million.
The docket says that the Debtor is required to file a Chapter 11
plan and a disclosure statement by June 5, 2012. Proofs of claim
are due Aug. 6, 2012.
IH-2, LLC: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: IH-2, LLC
dba Lowry Square Apartments
Hotel Lowry
C/O Commonwealth Properties
6 West Fifth Street, Suite 900
St. Paul, MN 55102
Bankruptcy Case No.: 12-30627
Chapter 11 Petition Date: February 6, 2012
Court: U.S. Bankruptcy Court
District of Minnesota (St. Paul)
Judge: Nancy C. Dreher
Debtor's Counsel: Michael L. Meyer, Esq.
RAVICH MEYER KIRKMAN MCGRATH NAUMAN & TANSEY, PA
4545 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
Tel: (612) 317-4745
E-mail: mlmeyer@ravichmeyer.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by John R. Rupp, chief manager.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Mortgage Acquisition LLC Loan $6,045,164
225 South Sixth Street, Suite 3500
Minneapolis, MN 55402-4629
Commonwealth Properties Loan $1,241,853
6 West Fifth Street, Suite 900
St. Paul, MN 55102
Lombard Management Corp. Trade Payable $91,012
6 West Fifth Street, Suite 900
St. Paul, MN 55102
Argent Real Estate Company Loan $78,500
A M Plumbing Inc. Trade Payable $35,668
Mechanical Systems Design Inc. Trade Payable $27,039
C&S Metro Electric LLC Trade Payable $13,019
Peterson Fram & Bergman Trade Payable $11,249
Command Center Inc. Trade Payable $10,063
Commercial Floors Trade Payable $9,453
Seestedts Trade Payable $7,212
Srywall Supply Inc. Trade Payable $6,468
Loren Lang Drywall LLC Trade Payable $3,164
Allied Aluminum Trade Payable $2,850
Allied Waste Services Trade Payable $1,895
Miracle Method Trade Payable $1,575
Wunderlich-Malec Trade Payable $1,560
Advantage Computer Systems, Inc. Trade Payable $1,350
Eric Thorne Trade Payable $1,300
Arejay Electric Trade Payable $978
J.C. EVANS: Court Orders Case Dismissal Effective Feb. 15
---------------------------------------------------------
The Hon. Craig A. Gargotta of the U.S. Bankruptcy Court for the
Western District of Texas ordered that JCE Delaware, Inc., et
al.'s Bankruptcy Cases will be dismissed effective 12:00 a.m. on
Feb. 15, 2012.
As reported in the Troubled Company Reporter on Nov. 25, 2011,
creditor and party-in-interest First State Bank Central Texas
asked the Court to dismiss or convert the cases because, among
other things:
1) the Debtors' budgets show negative cash flow;
2) the Debtors are in default on postpetition payments to
equipment lessors;
3) the Debtors have not made any payments to First State Bank
since the Bankruptcy Case was filed and the debt owed to
First State Bank is accruing default interest at the rate of
approximately $8,000 per day (or approximately $240,000 per
month); and
4) the Debtors have generated no (or very few) construction
projects that will generate additional revenues to fund the
Bankruptcy Case.
First State Bank related that it has submitted the only bid for
the Debtors' Quarry Assets. On Nov. 15, 2011, Debtors
acknowledged that First State Bank submitted the only bid for the
Quarry Assets in the amount of $7,491,500.
The Court also ordered that:
-- The automatic stay will remain effective and in place as to
all creditors until the effective date of dismissal except
as may otherwise be provided by separate bankruptcy court
order; and
-- The Court's order granting joint motion for approval of
compromise and settlement between Debtors and Monroe Street
Holdings, LLC Series 3-City Side and BMO Capital Markets
Financing, Inc., now known as BMO Harris Financing, Inc.,
will remain valid and enforceable notwithstanding dismissal
of the Debtors' cases;
-- The proof of claim deadline in each of the Debtors'
bankruptcy cases is extended until Feb. 15;
-- Based on the consent of the Official Committee of Unsecured
Creditors and the Committee's counsel, the U.S. Trustee is
authorized to disband the Committee appointed in the
Debtors' bankruptcy cases effective as of Jan. 12; and
-- The law firm of Gardere Wynne Sewell LLP will have no
further duties and obligations to or on behalf of the
Committee in the Debtors' bankruptcy cases (or any adversary
proceedings) and Gardere's representation of the Committee
will be terminated effective as of Jan. 12.
In a separate filing, the Bank related that despite good faith
efforts and discussions, First State Bank and the DIP Lender
have been unable to agree upon or determine the procedural impact
of the pari passu lien granted in the final cash collateral order
or how it must be treated on a going forward basis.
About J.C. Evans Construction
With roots stretching back over 55 years, J.C. Evans is a heavy
equipment construction company based in Leander, Texas. Through
J.C. Evans Construction Co., L.P., a Texas limited partnership
d/b/a/ American Aggregates, the Company owns and operates a
construction company specializing in heavy site preparation on
commercial, pipeline, utility and highway projects, including
excavating, trenching, site preparation and construction.
Through Adkins Land Development, L.P., a Texas limited
partnership, the Company owns a 700-acre quarry, which produces
aggregate for use in road construction.
J.C. Evans Construction Holdings is the holding company that owns
directly or indirectly each of the other entities. In turn,
Holdings is owned by a trust for the benefit of the current and
former employees of J.C. Evans through an Employee Stock Ownership
Plan.
Six affiliated companies filed for Chapter 11 (Bankr. W.D. Tex.
Case Nos. 11-11926 to 11-11931) on Aug. 1, 2011. These are JCE
Delaware Inc., J.C. Evans Construction Holdings, J.C. Evans
Nevada, LLC, EQUUS Development Inc., J.C. Evans Construction and
Adkins Land Development. The cases are jointly administered
before Judge Craig A. Gargotta. George H. Tarpley, Esq., and
Mark E. Andrews, Esq., at Cox Smith Matthews Incorporated, serve
as bankruptcy counsel. Tittle Advisory Group, Inc., provides
financial advisory services. Butler Burgher Group LLC provides
real estate appraisal services with regard to the valuation of the
Debtors' headquarters and warehouse properties, consisting of 28
acres near Leander, Texas. In its petition, JC Evans disclosed
$51,543,030 in assets and $74,203,554 in liabilities as of the
Chapter 11 filing.
A creditors' committee has been appointed by the U.S. Trustee.
The Committee has hired Gardere Wynne Sewell LLP as counsel.
JEFFERSON COUNTY: Bondholders Sue Over Reduced Payments
-------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that bondholders
struggling to collect money on Jefferson County's $3 billion-plus
sewer debt are protesting the Alabama county's decision to make
those bondholders pay for a growing list of sewer operating
expenses throughout its bankruptcy case.
About Jefferson County
Jefferson County has its seat in Birmingham, Alabama. It has a
population of 660,000.
Jefferson County filed a bankruptcy petition under Chapter 9
(Bankr. N.D. Ala. Case No. 11-05736) on Nov. 9, 2011, after an
agreement among elected officials and investors to refinance
$3.1 billion in sewer bonds fell apart.
John S. Young Jr. LLC was appointed as receiver by Alabama Circuit
Court Judge Albert Johnson in September 2010.
Jefferson County's bankruptcy represents the largest municipal
debt adjustment of all time. The county said that long-term debt
is $4.23 billion, including about $3.1 billion in defaulted sewer
bonds where the debt holders can look only to the sewer system for
payment.
The county said it would use the bankruptcy court to put a value
on the sewer system, in the process fixing the amount bondholders
should be paid through Chapter 9.
Judge Thomas B. Bennett presides over the Chapter 9 case. Lawyers
at Bradley Arant Boult Cummings LLP and Klee, Tuchin, Bogdanoff &
Stern LLP, led by Kenneth Klee, represent the Debtor as counsel.
Kurtzman Carson Consultants LLC serves as claims and noticing
agent. Jefferson estimated more than $1 billion in assets. The
petition was signed by David Carrington, president.
The bankruptcy judge in January 2012 ruled that the state court-
appointed receiver for the sewer system largely lost control as a
result of the bankruptcy. Before deciding whether Jefferson County
is eligible for Chapter 9, the bankruptcy judge will allow the
Alabama Supreme Court to decide whether sewer warrants are the
equivalent of "funding or refunding bonds" required under state
law before a municipality can be in bankruptcy.
JENNIFER CONVERTIBLES: Board Wants $5MM Bad Faith Suit Axed
-----------------------------------------------------------
Hilary Russ at Bankruptcy Law360 reports that board members and
officers of once-bankrupt Jennifer Convertibles Inc. asked a
New York federal court Thursday to throw out a $5 million lawsuit
accusing them of sketchy business transactions, saying that
they're shielded from liability because their business decisions
were sound.
Law360 relates that ex-Jennifer Convertibles CEO Harley
Greenfield, former Executive Vice President and board member
Edward Seidner, President Rami Abada and several other defendants
filed motions to dismiss the complaint, which was filed in
bankruptcy court in November and then removed to district court in
January.
About Jennifer Convertibles
Based in Woodbury, N.Y., Jennifer Convertibles, Inc.
-- http://www.jenniferfurniture.com/-- is the owner of sofabed
specialty retail stores that specialize in the sale of a complete
line of sofa beds and companion pieces such as loveseats, chairs
and recliners.
The Company and its affiliates filed for Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Case No. 10-13779) on July 18, 2010.
On Feb. 9, 2011, the Bankruptcy Court confirmed the Debtors'
Second Amended Joint Chapter 11 Plan of Reorganization, dated
Jan. 24, 2011. On Feb. 22, 2011, the Debtors emerged from
bankruptcy. The Company has adopted fresh-start reporting
effective Feb. 26, 2011, which is the second quarter period end
date.
JETBLUE AIRWAYS: S&P Cuts Ratings on Two Cert. Classes to 'B+'
--------------------------------------------------------------
Standard & Poor's Ratings Services corrected its rating on JetBlue
Airways' 2004-2 Class G1 pass-through certificates to 'B+
(sf)'from 'BBB- (sf)' and its rating on the G2 certificates to 'B+
(sf)' from 'BB+ (sf)'.
"The revised ratings reflect the lack of a Standard & Poor's
rating on the primary liquidity provider, Landesbank Baden-
Wuerttemberg (not rated). In the absence of a rated primary
liquidity provider, our criteria for rating enhanced equipment
trust certificates dictate that we evaluate the certificates as
nonenhanced equipment trust certificates, which we rate no
higher than two notches above a corporate credit rating on the
related airline," S&P said.
"We lowered our short term rating on Landesbank Baden-Wuerttemberg
to 'A-2' from 'A-1' on May 6, 2009. The bank did not arrange for a
replacement liquidity provider or fund a cash collateral account
as a result of such downgrade, or when we withdrew our ratings on
Jan. 20, 2010. At the time of our May 6, 2009, rating action on
the bank, our 'BBB+ (sf)' rating on the 2004-2 Class G1 and G2
certificates was not affected, because that rating was based on
the 'BBB+' rating on MBIA Insurance Corp. (MBIA; B/Negative/--),
which insures the certificates. However, when we lowered our
rating on MBIA to 'BB+' on Sept. 28, 2009, we should have lowered
our ratings on the Class G1 certificate to 'BB+ (sf)' (we lowered
our rating on the Class G2 certificates to 'BB+ (sf)' on that date
for unrelated reasons). When we lowered our rating on MBIA to 'B'
from 'BB+' on Dec. 22, 2010, we should have lowered our ratings
on the G1 and G2 certificates to 'B+ (sf)' for the criteria reason
cited, as this rating was higher than MBIA's rating," S&P said.
"If Landesbank Baden-Wuerttemberg or JetBlue arranges for a
qualifying replacement liquidity provider, or funds a cash
collateral account, as provided in the transaction documents, we
will likely raise our ratings on the Class G1 and G2 certificates
to 'BBB- (sf)' and 'BB+ (sf)'," S&P said.
JO-LIN REALTY: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Jo-Lin Realty, LLC
216 South Terrace Avenue
Mount Vernon, NY 10550
Bankruptcy Case No.: 12-22201
Chapter 11 Petition Date: February 1, 2012
Court: U.S. Bankruptcy Court
Southern District of New York (White Plains)
Judge: Robert D. Drain
Debtor's Counsel: Erica R. Feynman, Esq.
RATTET PASTERNAK, LLP
550 Mamaroneck Avenue, Suite 510
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: efeynman@rattetlaw.com
- and ?
Jonathan S. Pasternak, Esq.
RATTET PASTERNAK, LLP
550 Mamaroneck Avenue, Suite 510
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: jsp@rattetlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Linda J. Bautista, managing member.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Carabie Corporation 11-24036 10/14/11
JOBSON MEDICAL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Jobson Medical Information Holdings LLC
aka Jobson Medical Information LLC
100 Avenue of the Americas, 9th Floor
New York, NY 10013
Bankruptcy Case No.: 12-10434
Affiliates that simultaneously filed Chapter 11 petitions:
Debtor Case No.
------ -------
Jobson Medical Information Holdings LLC 12-10434
Alert Marketing, Inc. 12-10435
Amato Communications-Healthcare, Inc. 12-10438
CME Consultants, LLC 12-10439
DesignWrite, LLC 12-10440
Frames Data Inc. 12-10441
Int'l Center for Postgraduate Medical Education, LLC 12-10442
Jobson Healthcare Information LLC 12-10443
Jobson Medical Information LLC 12-10444
Medcon International, LLC 12-10445
Medical Education Consultants, LLC 12-10446
MedVal Scientific Information Services, LLC 12-10447
Postgraduate Healthcare Education, LLC 12-10448
Post-Graduate Institute for Medicine, Inc. 12-10449
PharmaWrite, LLC 12-10450
Strategic Healthcare Alliance, LLC 12-10451
XMIS, LLC 12-10452
Chapter 11 Petition Date: February 2, 2012
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Sean H. Lane
Debtor's Counsel: Sharon L. Levine, Esq.
LOWENSTEIN SANDLER PC
65 Livingston Avenue
Roseland, NJ 07068
Tel: (973) 597-2374
Fax: (973) 597-2375
E-mail: slevine@lowenstein.com
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The petition was signed by Derek Winston, chief financial officer.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Innerworkings Trade Debt $635,112
27011 Network Place
Chicago, IL 60673
Direct Medical Data Trade Debt $391,818
10255 W. Higgins Road
Suite 280
Rosemont, IL 60018
RR Donnelley Trade Debt $169,456
1000 Windham Parkway
Bolingbrook, IL 60490
Microsoft Licensing, GP Trade Debt $104,244
Molecular Media, Inc. Trade Debt $41,426
Ebsco Trade Debt $40,540
Hallmark Data Systems Trade Debt $37,443
Aspen Media & Market Rese Trade Debt $34,999
Federal Express Trade Debt $29,131
Foster Reprints Trade Debt $26,815
Judy's Letter & Secretaries Trade Debt $23,374
SK&A Information Services Trade Debt $22,872
Zones Trade Debt $22,849
Clifford Paper Inc. Trade Debt $20,184
Salesforce.com Trade Debt $18,046
Moore Wallace Trade Debt $17,784
Xpress Messaging Solution Trade Debt $15,196
Fry Communications, Inc. Trade Debt $14,420
Telelinx, Inc. Trade Debt $12,993
Jade Press Corporation Trade Debt $10,764
LAS VEGAS MONORAIL: Files New Chapter 11 Plan of Reorganization
---------------------------------------------------------------
Tim O'Reiley at Las Vegas Review-Journal reports that Las
Vegas Monorail has filed a new Chapter 11 reorganization plan that
rearranges key numbers and further slashes payments to bondholders
already on track to lose more than 90% of their investments.
According to the report, the monorail will attempt to overcome the
opposition of Judge Markell, who rejected the previous edition in
November. Even though all the creditors agreed to the terms, he
ruled that they merely pushed financial problems to a later date
and likely would result in another bankruptcy or complete
shutdown.
The Troubled Company Reporter on Dec. 5, 2011, reported that U.S.
Bankruptcy Judge Bruce A. Markell denied confirmation of Las
Vegas Monorail's plan, despite the approval of the plan by more
than 97% of the bondholders voting, who collectively hold over 92%
of the principal amount of LVMC bonds.
The report relates that the main provision of the latest plan
calls for repaying bondholders that financed the monorail's
construction with two IOUs totaling $13 million, compared to the
previous proposal of $40 million spread over three IOUs. Further,
the former effective interest rate of 9.5% interest would drop to
a range 3.5% to 5% and the repayment timetable would be eased.
The report says another level of repayment based on the monorail's
performance could come into play in 2014, but only if allowed by
the results of a multi-step equation.
The report relates that, besides the treatment of bondholders, the
new plan changes:
* Replacing critical hardware. Previously, the monorail
estimated that it would need $108.3 million over the next
dozen years and conceded it did not have the money. Working
with a consultant, the monorail has slashed the bill to $24.5
million through 2028 by overhauling station doors, train
controls and ticket vending machines instead of buying new.
* Future passenger counts. The monorail formerly counted on
attracting patrons from the reopening of the Sahara and the
Caesar Entertainment's Project Linq complex, but Markell
found they had little credibility. These were estimates were
eliminated, yet the new figures show ridership starting to
rebound this year, growing from 5 million to 6 million in
2018. The average fare would climb from $2.26 to $4.94
during the same span.
The report says the court has scheduled a March 7 hearing to
review the disclosure statement explaining the plan. This could
put the plan on course for approval in April or May 2012.
About Las Vegas Monorail
Las Vegas, Nevada-based Las Vegas Monorail Company, organized by
the State of Nevada in 2000 as a nonprofit corporation, owns and
manages the Las Vegas Monorail. The Monorail is a seven-stop,
elevated train system that travels along a 3.9-mile route near the
Las Vegas Strip. LVMC has contracted with Bombardier Transit
Corporation to operate the Monorail. Though it benefits from its
tax-exempt status due to being a nonprofit entity, LVMC claims to
be the first privately-owned public transportation system in the
nation to be funded solely by fares and advertising. LVMC says it
receives no governmental financial support or subsidies.
The Company filed for Chapter 11 bankruptcy protection (Bankr. D.
Nev. Case No. 10-10464) on Jan. 13, 2010. Gerald M. Gordon, Esq.,
at Gordon Silver, assists the Company in its restructuring effort.
Alvarez & Marsal North America, LLC, is the Debtor's financial
advisor. Stradling Yocca Carlson & Rauth is the Debtor's special
bond counsel. Jones Vargas is the Debtor's special corporate
counsel. The Company disclosed $395,959,764 in assets and
$769,515,450 in liabilities as of the Petition Date.
In April 2010, bondholder Ambac Assurance Corp. lost in its bid to
halt the bankruptcy after U.S. Bankruptcy Judge Bruce A. Markell
ruled that Monorail isn't a municipality and is therefore entitled
to reorganize in Chapter 11. U.S. District Judge James Mahan in
Reno upheld the ruling in October 2010.
LE RIVAGE: Hotel Operator Files for Chapter 11 Bankruptcy
---------------------------------------------------------
CBS Sacramento reports that Bob Cook, owner of The Le Rivage Hotel
in California, has filed for Chapter 11 bankruptcy.
The report, citing court documents, says the Company owed $10
million and $50 million to at least 50 creditors despite only
possessing assets of less than $50,000. Some of the hotel's
creditors include Anthem Blue Cross, Auran Design, Attorney Robert
Binns, Hearn Construction, and the Sacramento Kings basketball
club. Mr. Cook is a Kings minority owner who was instrumental in
bringing the team to Sacramento, California.
The report relates a Kings spokesperson said the unpaid debt of
$43,000 is from several years ago, when the hotel was a corporate
sponsor of the team.
LEE ENTERPPRISES: Reports $14.6-Mil. Net Income in Dec. 25 Quarter
------------------------------------------------------------------
Lee Enterprises, Incorporated, filed its quarterly report on Form
10-Q, reporting net income of $14.6 million on $199.6 million of
total operating revenue for the 13 weeks ended Dec. 25, 2011,
compared with net income of $18.9 million on $207.7 million of
total operating revenue for the corresponding period ended
Dec. 26, 2010.
Operating income was $39.2 million in the 2012 Quarter compared to
$49.2 million in the 2011 Quarter. Financial expense, including
amortization of debt financing costs, decreased $627,000, or 4.1%,
to $14.8 million in the 2012 Quarter due primarily to lower debt
balances.
The Company recognized income tax expense of 37.1% and 43.2% of
income before income taxes in the 2012 Quarter and 2011 Quarter,
respectively.
The Company's balance sheet at Dec. 25, 2011, showed
$1.167 billion in total assets, $1.253 billion in total
liabilities, and a stockholders' deficit of $85.9 million.
A copy of the Form 10-Q is available for free at:
http://is.gd/SeNgIy
About Lee Enterprises
Lee Enterprises, Incorporated, 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 its general reorganization and bankruptcy counsel,
and Young Conaway Stargatt & Taylor LLP as co-counsel; The
Blackstone Group as Financial and Asset Management Consultant; and
The Debtor disclosed total assets of $1.15 billion and total
liabilities of $1.25 billion at Sept. 25, 2011.
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.
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 pursuant to the Reorganization Plan. This
commitment also includes the potential payment of up to $10
million as backstop cash to Reorganized Lee Enterprises to acquire
the loans. The Initial Backstop Lenders are represented by
Matthew S. Barr, Esq., and Brian Kinney, Esq., at Milbank, Tweed,
Hadley & McCloy LLP.
On Jan. 23, 2012, Lee Enterprises, et al., won confirmation of
a second version of their prepackaged Chapter 11 plan of
reorganization.
Lee Enterprises Inc. declared its prepackaged plan of
reorganization effective on Jan. 30, 2012.
* * *
This concludes the Troubled Company Reporter's coverage of Lee
Enterprises, Incorporated, until facts and circumstances, if any,
emerge that demonstrate financial or operational strain or
difficulty at a level sufficient to warrant renewed coverage.
LEE ENTERPRISES: Updates Annual Report on Successful Refinancing
----------------------------------------------------------------
Lee Enterprises, Incorporated LEE has filed an amended Annual
Report on Form 10-K for the fiscal year ended Sept. 25, 2011, to
update the status of its successful refinancing.
Carl Schmidt, vice president, chief financial officer and
treasurer, said the amendment includes removal by Lee's
independent registered public accounting firm, KPMG LLP, of an
explanatory paragraph in its report on Lee's consolidated
financial statements expressing substantial doubt regarding the
company's ability to continue as a going concern.
About Lee Enterprises
Lee Enterprises, Incorporated, 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 its general reorganization and bankruptcy counsel,
and Young Conaway Stargatt & Taylor LLP as co-counsel; The
Blackstone Group as Financial and Asset Management Consultant; and
The Debtor disclosed total assets of $1.15 billion and total
liabilities of $1.25 billion at Sept. 25, 2011.
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.
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 pursuant to the Reorganization Plan. This
commitment also includes the potential payment of up to $10
million as backstop cash to Reorganized Lee Enterprises to acquire
the loans. The Initial Backstop Lenders are represented by
Matthew S. Barr, Esq., and Brian Kinney, Esq., at Milbank, Tweed,
Hadley & McCloy LLP.
On Jan. 23, 2012, Lee Eenterprises, et al., won confirmation of
a second version of their prepackaged Chapter 11 plan of
reorganization.
Lee Enterprises Inc. declared its prepackaged plan of
reorganization effective on Jan. 30, 2012.
* * *
This concludes the Troubled Company Reporter's coverage of Lee
Enterprises, Incorporated, until facts and circumstances, if any,
emerge that demonstrate financial or operational strain or
difficulty at a level sufficient to warrant renewed coverage.
LENOX 126: Court Confirms Third Amended Plan of Reorganization
--------------------------------------------------------------
The Hon. Sean H. Lane of the U.S. Bankruptcy Court for the
Southern District of New York confirmed Lenox 126 Realty LLC's
Third Amended Plan of Reorganization.
As reported in the Troubled Company Reporter on Dec. 15, 2011,
the Debtor's Plan provides for the sale of its real property
located at 101 West 126th Street, a/k/a 321 Lenox Avenue, New York
City.
Effective Date Plan payments, including payment of administration
claims, will be made from the proceeds of the sale of the
Property. Under the Plan, the Mortgagee has agreed to cause
$250,000 of the sale proceeds that would otherwise be paid towards
satisfaction of its Secured Claim to be distributed to general
unsecured creditors under the Plan, and has agreed to waive its
right to any distribution as an unsecured creditor in order to
enhance distributions to the other general unsecured creditors.
A copy of the Third Amended Disclosure Statement is available for
free at http://bankrupt.com/misc/lenox126.3rdamendedDS.pdf
About Lenox 126 Realty
Lenox 126 Realty LLC owns a parcel of real property located at 101
West 126th Street, a/k/a 321 Lenox Avenue, New York, New York.
The Property is a 6 story apartment building with 32 residential
units, 2 commercial units, and 2 cell towers.
The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Case
No. 11-12275) on May 12, 2011. Mark Frankel, Esq., at Backenroth
Frankel & Krinsky, LLP, in New York, represents the Debtor as
counsel.
In its schedules, Lenox 126 Realty disclosed $10,377,689 in assets
and $14,718,905 in liabilities as of Chapter 11 filing. Judge
Sean H. Lane presides over the case.
No committee has been appointed to date in this case.
LICHTIN/WADE: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------
David Bracken at The News Observer reports that Lichtin/Wade LLC,
an entity owned by Raleigh-based Lichtin Corp., has filed for
Chapter 11 bankruptcy.
The report says the Company owed BB&T Bank nearly $39 million,
according to its bankruptcy filing. It also owed Wake County
$290,870 in property taxes.
According to the report, the Company said it filed for bankruptcy
after being unable to renew and extend its loans on the property.
"Lichtin/Wade filed this case in order to protect the property and
its equity and to ensure stability and continuity of service for
its tenants," the Company said in statement. "Lichtin/Wade hopes
to work through its issues with BB&T during the bankruptcy case as
quickly as possible."
Lichtin/Wade LLC owns two 100,000-square-foot buildings, known as
the Offices at Wade, which were built in 2008. It also owns
adjacent land where three more buildings could be built.
LICHTIN/WADE, LLC: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Lichtin/Wade, LLC
5420 Wade Park Boulevard, Suite 104
Raleigh, NC 27607
Bankruptcy Case No.: 12-00845
Chapter 11 Petition Date: February 2, 2012
Court: U.S. Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: Randy D. Doub
Debtor's Counsel: Trawick H. Stubbs, Jr., Esq.
STUBBS & PERDUE, P.A.
P.O. Drawer 1654
New Bern, NC 28563
Tel: (252) 633-2700
Fax: (252) 633-9600
E-mail: efile@stubbsperdue.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Harold S. Lichtin, president of Lichtin
Corporation, manager.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
BB&T Property $16,621,517
ATTN: Jack R. Hayes
P.O. Box 1847
Wilson, NC 27894-1847
BB&T Property $14,584,604
ATTN: Jack R. Hayes
P.O. Box 1847
Wilson, NC 27894-1847
BB&T Property $5,799,972
ATTN: Jack R. Hayes
P.O. Box 1847
Wilson, NC 27894-1847
BB&T Property $1,972,630
ATTN: Jack R. Hayes
P.O. Box 1847
Wilson, NC 27894-1847
Wake County Revenue Dept. Property Taxes $290,870
Attn: Manager or Agent
P.O. Box 2331
Raleigh, NC 27602
Colliers Pinkard-Chicago Debt $78,893
Jones Lang & Lasalle Debt $65,752
Clancy & Theys Construction Debt $51,389
Barnhill Contracting Co Debt $43,497
Newcomb & Company Debt $33,648
MCC Realty Group, Inc. Debt $31,577
Wyrick Robbins & Yates Debt $27,233
Executive Building Maintenance Debt $24,440
Pierce Goodwin Alexander Debt $23,174
Womble Carlyle Sandridge Debt $21,297
Executive Building Maintenance Debt $17,871
Starr Electric Co., Inc. Debt $16,500
Womble Carlyle Sandridge Debt $13,203
Pierce Goodwin Alexander Debt $12,370
Newcomb & Company Debt $11,696
LOS ANGELES DODGERS: Asks Court to Toss Beaten Fan's Claim
----------------------------------------------------------
Los Angeles Dodgers LLC reported that it has filed a motion to
disallow all claims asserted by Bryan Stow, Tyler Stow and Tabitha
Stow against the Los Angeles Dodgers with the U.S. Bankruptcy
Court in Delaware.
On March 31, 2011, which was Opening Day for the Dodgers' 2011
baseball season, Stow was injured during an altercation that
occurred after the baseball game ended in Parking Lot 2, situated
on the outer ring of the parking lots surrounding Dodger Stadium.
Stow subsequently filed a complaint in California state court
against more than a dozen defendants, including LAD and other
debtors. Stow's lawsuit, as against the debtors, was
automatically stayed under the U.S. Bankruptcy Code when the
debtors filed for bankruptcy protection on June 27, 2011. Stow
filed the Stow claim with the bankruptcy court on July 11, 2011.
Also in July, the Los Angeles Police Department arrested two
individuals, Marvin Norwood and Louis Sanchez, as suspects in the
altercation with Stow. These individuals also attended the
Opening Day game and sat on the opposite side of the stadium from
where Stow was seated. Neither individual is part of the Dodger
organization. Norwood and Sanchez are currently in criminal
custody awaiting trial.
The Dodgers have moved that the Bankruptcy Court disallow the Stow
claim in its entirety because, as a matter of law, Stow cannot
prevail in his claims against the debtors.
The Debtors' motion makes clear, among other points:
-- As a matter of law, Stow cannot prove any link between the
additional security related steps that Stow contends the debtors
should have taken and his injuries;
-- Stow cannot show that anything about the security personal
staffing on Opening Day caused his injuries and, furthermore, the
security staffing at the game greatly exceeded all requirements of
California state law;
-- The Dodgers had no knowledge of any inappropriate conduct by
Stow's assailants prior to the time that Stow sustained his
injuries and, as a matter of law, are not liable for failure to
anticipate criminal acts of third parties;
-- The California Court of Appeals has recognized that allegedly
inadequate lighting cannot support a finding that a property owner
"caused" an attack by a third party on its premises. Moreover,
Stow cannot show that inadequate lighting caused his injuries and,
in fact, the Stow complaint alleges that the altercation "took
place over a prolonged period of time and drew the attention of
various other patrons," which if true demonstrates that the
assailants were unconcerned with concealing themselves from
others;
-- Contrary to Stow's lawyers' contentions, there was no "half-
off" beer promotion at Opening Day and, thus, could not have had
anything to do with his injury;
-- The Dodgers cannot be held liable for failing to escort Stow
and his companions through the parking lot; and, furthermore,
neither Stow, nor anyone else in his party, ever asked to be
escorted or for any other assistance;
-- The Dodgers are not liable for the presence of persons who
might be gang members and, in any case, there is no evidence that
Norwood or Sanchez are gang members, or that the Dodgers had any
knowledge of gang membership or prior criminal conduct by either
of Stow's assailants.
In addition, the Debtors' motion makes clear that, based on the
material facts that are not genuinely at issue, and, as a matter
of law, no basis exists for Stow's claim for punitive damages.
Accordingly, Los Angeles Dodgers have moved that the bankruptcy
court should grant summary judgment disallowing all punitive
damage claims against LAD.
* * *
Dow Jones' Daily Bankruptcy Review reports that the Los Angeles
Dodgers' bid to knock out the claim of Bryan Stow from the ball
team's bankruptcy case would send the young paramedic, whose left
brain was injured by a beating at Dodger Stadium last year, out of
court empty-handed --- while owner Frank McCourt walks away a
multi-millionaire.
About Los Angeles Dodgers
Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a
professional Major League Baseball club in the Los Angeles
metropolitan area. Frank McCourt, a Boston real-estate developer
who unsuccessfully bid for the Boston Red Sox, bought the Dodgers
from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for
$330 million. Mr. McCourt also bought the Dodgers Stadium from
Fox for $100 million.
Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr.
D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB
Commissioner Bud Selig rejected a television deal with News
Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for
June 30 and July 1. Fox Sports has exclusive cable television
rights for Dodgers games until the end of 2013 baseball season.
Chapter 11 filings were also made for LA Real Estate LLC, an
affiliated entity which owns Dodger Stadium, and three other
related holding companies.
The petition estimates assets of up to $500 million and debts of
up to $1 billion. In its schedules, the LA Dodgers baseball club
disclosed $77,963,734 in assets and $4,695,702 in liabilities. LA
Real Estate LLC disclosed $161,761,883 in assets and $0 in
liabilities.
According to Forbes, the team is worth about $800 million, making
it the third most valuable baseball team after the New York
Yankees and the Boston Red Sox.
Judge Kevin Gross presides over the case. Lawyers at Young,
Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the
Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the
claims and notice agent. Public relations specialist Kekst and
Company has been hired for crisis support. Covington & Burling
LLP serves as special counsel.
An official committee of unsecured creditors has been appointed in
the case. The panel has tapped Lazard Freres & Co. as financial
adviser and investment banker, and Morrison & Foerster LLP and
Pinckney, Harris & Weidinger, LLC as counsel.
The LA Dodgers is the 12th sports team in North America to have
sought bankruptcy protection.
The reorganization is being financed with a $150 million unsecured
loan from the Commissioner of Major League Baseball. The loan
gives the Commissioner few of the controls lenders often demanded
from bankrupt companies.
LYDIA CLADEK: Investors Will Get Stock in Integrity Auto
--------------------------------------------------------
The St. Augustine Record reports that Jon Kane, bankruptcy
attorney with Burr & Forman LLP, said all of the investors are to
be given stock in Integrity Auto Finance, the new company formed
in Chapter 11 bankruptcy from the remains of Lydia Cladek Inc.
According to the report, Mr. Kane represents the trustee for the
creditor trust as well as the bankruptcy proceedings. Integrity
"continues to make a profit and enhance its bottom line," Mr. Kane
said.
The report says a cash disbursement is also coming on May 4, 2012,
the first of an annual disbursement from a creditor trust. Mr.
Kane said he could not give a payment range for creditors.
The report relates that that trust is funded by whatever remained
of Cladek's assets after the formation of Integrity.
Mr. Kane may be reached at:
Jon E. Kane, Esq.
BURR & FORMAN LLP
200 South Orange Avenue, Suite 800
Orlando, FL 32801
Tel: (407) 540-6625
E-Mail: jkane@burr.com
LYKAT, INC.: Case Summary & 9 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Lykat, Inc.
dba DQ Grill and Chill
8410 Citrus Park Drive
Tampa, FL 33625
Bankruptcy Case No.: 12-01270
Chapter 11 Petition Date: January 31, 2012
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Michael G. Williamson
Debtor's Counsel: Michael C. Markham, Esq.
JOHNSON POPE BOKOR RUPPEL & BURNS, LLP
P.O. Box 1368
Clearwater, FL 33757
Tel: (727) 461-1818
Fax: (727) 443-6548
E-mail: mikem@jpfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its nine largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/flmb12-01270.pdf
The petition was signed by Marwan J. Sahoury, president.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
GMKhoury, Inc. 12-01279 01/31/12
M WAIKIKI: Gets OK to Obtain $550,000 from Davidson Family Trust
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Hawaii, authorized
M Waikiki, LLC to amend the loan and security agreement dated as
of Sept. 26, 2011, pursuant to which the Debtor will obtain
additional secured, second priority, postpetition financing in an
aggregate amount of up to $550,000 from Davidson Family Trust.
As reported in the Troubled Company Reporter on Jan. 13, 2012,
shortly after the commencement of its Chapter 11 case, the Debtor
was granted authority to borrow up to $2.5 million in debtor-in-
possession financing to fund the Debtor's postpetition operations
and other administrative expenses. At that time, the Debtor and
its DIP lender has relatively limited information with which to
estimate the amount of financing the Debtor would need to fund its
reorganization.
As of the Petition Date, the Debtor owed senior secured debt of
approximately $114.9 million and subordinated secured debt of
approximately $18.2 million. The Debtor currently owes the DIP
lender approximately $2.5 million in principal plus accrued
interest under the terms of the DIP credit agreement.
The terms of the additional loan will be the same as originally
provided in the DIP Credit agreement.
The Official Committee of Unsecured Creditors in the Debtor's case
has filed a limited objection to the Debtor's motion to amend the
credit agreement.
The Committee requested that the Court approve the motion, on an
interim basis, exercise the new default provision, and grant
further relief as the Court deems just.
If approved, a total $9 million of superpriority DIP financing
would have to be paid on the effective date of any Plan or
April 30, 2012.
About M Waikiki
M Waikiki owns the Modern Honolulu, a world-class, luxury hotel
property located close to Waikiki Beach in Hawaii. The hotel is
being managed by Modern Management Services LLC, an affiliate of
Aqua Hotels and Resorts.
M Waikiki is a Hawaii limited liability company with its principal
place of business located in San Diego, California. It is a
special purpose entity, having roughly 75 indirect investors,
which was formed to acquire the Hotel.
The Company filed for Chapter 11 protection (Bankr. D. Hawaii Case
No. 11-02371) on Aug. 31, 2011. Judge Robert J. Faris presides
over the case. Patrick J. Neligan, Esq., and James P. Muenker,
Esq., at Neligan Foley LLP, in Dallas, Tex.; Simon Klevansky,
Esq., Alika L. Piper, Esq., and Nicole D. Stucki, Esq., at
Klevansky Piper, LLP, in Honolulu, Hawaii, are the attorneys to
the Debtor. The Debtor tapped XRoads Solutions Group, LLC, and
Xroads Case Management Services, LLC, as its financial and
restructuring advisor. The Debtor disclosed $216,116,142 in
assets and $135,085,843 in liabilities as of the Chapter 11
filing.
Modern Management is represented by Christopher J. Muzzi, Esq.,
at Moseley Biehl Tsugawa Lau & Muzzi LLC.
Marriott Hotel Services, which used to provide management
services, is represented by Susan Tius, Esq., at Rush Moore LLP
LLP, and Carren B. Shulman, Esq., at Sheppard Mullin Richter &
Hampton LLP.
MEDFORD CROSSINGS: Dist. Court Affirms Accord With Principals
-------------------------------------------------------------
Medford Village East Associates LLC and Laurel Pines LLC took an
appeal from a decision by the U.S. Bankruptcy Court for the
District of New Jersey approving a settlement agreement between
Medford Crossings North LLC, et al. and the Debtors' principals.
The Appellants raise several grounds for appeal, which are based
on the Appellants' assumption that the claims involved in the
Settlement Agreement likely belong to MVE and its affiliates.
However, because the Appellants are not able to demonstrate that
the claims at issue in the Settlement Agreement are claims that
the Appellants own, the District Court finds that the injury the
Appellants allegedly suffer because of the Settlement Agreement is
indirect, and the Appellants therefore lack standing to appeal the
Settlement Agreement. Because the Court finds that the Appellants
lack standing, the appeal of the Bankruptcy Court's order is
dismissed.
Medford Crossings North LLC and Medford Crossings South LLC were
created to purchase, hold title to, and develop portions of a
development project in New Jersey. Purple Tree Investments LLC,
Purple Tree One LLC, Purple Tree Two LLC, Purple Tree Three LCC,
Purple Tree Four LLC, Purple Tree Five LLC and Purple Tree Ten LLC
were created to sell residential rights related to the project.
MCN, MCS, and the Purple Tree Entities filed voluntary Chapter 11
petitions on (Bankr. D. N.J. Case No. 07-25115) on Oct. 17, 2007.
Medford Crossings North Urban Renewal LLC (Bankr. D. N.J. Case No.
07-25587) and Medford Crossings South Urban Renewal LLC (Bankr. D.
N.J. Case No. 07-25591) filed for bankruptcy on Oct. 25, 2007.
MCN et al. have filed three Plans of Reorganization. In 2009, the
Bankruptcy Court held confirmation hearings regarding the Third
Amended Plan of Reorganization, and on Jan. 20, 2011, the
Bankruptcy Court ordered that the Third Amended Plan could not be
confirmed, saying the Plan's provision of Third Party Releases
would constitute "an unprecedented expansion to any exception to
11 U.S.C. Sec. 524(e) that might exist in [the Third] Circuit."
The Debtors then proposed a Settlement Agreement that the
Bankruptcy Court approved. The Settlement Agreement provided the
following:
(1) The Members and the Individuals would pay Debtors
$850,000 within five business days of the final order granting the
9019 Motion to approve the Settlement Agreement. This payment
would fully satisfy the Debtors' Claims and any and all claims of
the Debtors and their estates against the Members and/or the
Individuals;
(2) In consideration for the payment, the Debtors would
convey all of their right, title, and interest in the
Reimbursement Rights to the Individuals, Members, and/or any
designees. The Reimbursement Rights are compensation for
expenditures made by the Debtors for the Project Plans and Permits
and Approvals necessitated by the Transaction Agreements;
(3) The Debtors would pay to Obermayer Rebmann Maxwell &
Hippel LLP, their former counsel, the Allowed Administrative
Expense Payment. Instructions for the payment and provisions in
the event of default were set out as well;
(4) The parties agreed "to take whatever action is necessary
to cause the Obermayer Adversary Proceeding to be dismissed with
prejudice" within five business days; and
(5) The Debtors would execute and deliver specific and
general releases in favor of the Individuals and the Members.
The members are a group of limited liability companies,
individuals, and corporations: Ripco Ventures, Inc.; Medford
Crossings North Development Associates, LLC; Medford Crossings
South Development Associates, LLC; FC Medford Residential LLC;
Medford Crossings North II LLC; Medford Crossings South II LLC;
and Carl Freedman and Mitchell Cohen in their capacities as owners
of FC Medford Residential LLC.
The case before the District Court is, MEDFORD VILLAGE EAST
ASSOCIATES, LLC and LAUREL PINES, LLC, Appellants, v. MEDFORD
CROSSINGS NORTH LLC, et al., Appellees/Debtors, Civil No. 11-2583
(D. N.J.). A copy of District Judge Robert B. Kugler's Feb. 1
Opinion, which includes a background of the dispute, is available
at http://is.gd/zPPtwTfrom Leagle.com.
MEDICAL PROPERTIES: S&P Affirms 'BB' Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on Birmingham Ala.-based Medical Properties Trust
Inc. "We assigned a 'BB' issue rating and recovery rating of '3'
to the MPT Operating Partnership L.P. and MPT Finance Corp.'s
proposed $200 million senior note issue due 2022, guaranteed by
Medical Properties Trust. We affirmed the 'BB' issue level rating
and revised the recovery rating to '3' from '4' on the existing
unsecured debt. The outlook is stable," S&P said.
"Our ratings on the company reflect the REIT's intermediate
financial risk profile underpinned by strong fixed-charge coverage
and adequate liquidity," explained credit analyst George Skoufis.
"Additional growth could eventually bolster a business risk
profile, which we continue to view as fair, largely because of
MPW's meaningful tenant and geographic concentration, as well as
the company's tenant/facility exposure to government reimbursement
risk."
"Our stable outlook reflects our expectation that strong rent
coverage will continue to support core cash flow and stable
coverage measures. As the Ernest acquisition begins to fully
benefit cash flow, we expect leverage will return to
pretransaction levels. We also anticipate that the REIT will
prudently finance additional expected moderate external growth. We
could raise our ratings one notch if the Ernest transaction
seasons and performs as expected and portfolio growth is
profitable and further reduces tenant concentrations and the REIT
closes its dividend shortfall, while maintaining other key credit
measures near recent averages (i.e., 45% debt-to-capital and 5.0x
to 6.0x debt-to-EBITDA). Alternatively, we would lower our rating
one notch if the portfolio experiences meaningful tenant distress,
which reduces FCC to the low 2x area or the REIT increases
leverage more aggressively than we currently anticipate and/or the
common dividend shortfall widens," S&P said.
MF GLOBAL: Trustee Has Traced Transfers of $105 Billion
-------------------------------------------------------
James W. Giddens, the Trustee for the liquidation of MF Global
Inc., filed a preliminary report on the progress of his
investigation into the failure of the broker-dealer with the
United States Bankruptcy Court for the Southern District of New
York, the Honorable Martin Glenn, presiding. The Trustee's
investigation has preliminarily determined that MF Global Inc. had
a shortfall in commodities customer segregated funds beginning on
Wednesday, Oct. 26, 2011, and that the shortfall continued to grow
in size until the bankruptcy filing on Monday, Oct. 31, 2011.
The Trustee's investigators have now traced a majority of the cash
transactions, totaling more than $105 billion, made in and out of
MF Global Inc. in the last week before bankruptcy and are
completing the process of tracing the remaining transactions. MF
Global also executed securities transactions totaling more than
$100 billion during its final week of operations. These included
liquidation of customer securities, proprietary positions and
other items. The securities included complex instruments, such as
off-balance sheet repurchase transactions involving sovereign debt
securities and derivative structures.
"For three months our investigative team has worked to understand
what happened during the final days of MF Global when cash and
related securities movements were not always accurately and
promptly recorded due to the chaotic situation and the complexity
of the transactions," Giddens said. "With these preliminary
investigative conclusions in hand, we will analyze where the
property wired out of bank accounts established to hold segregated
and secured property ultimately ended up. We will then determine
whether there is a sound and legal basis for recoveries against
third parties that will help make customers whole. These will be
very complex legal and factual determinations, which we will make
consistent with our duty as the advocate for the former customers
of MF Global Inc."
The investigation to date has found that transactions regularly
moved between accounts and that funds believed to be in excess of
segregation requirements in the commodities segregated accounts
were used to fund other daily activities of MF Global. In the
past, such transfers were in amounts of less than $50 million, but
as liquidity demands increased and could not be met from internal
sources, much larger amounts were used, apparently with the
assumption that funds would be restored by the end of the day. By
Wednesday, October 26, as the result of increasing demands for
funds or collateral throughout MF Global, funds did not return as
anticipated. As these withdrawals occurred, a lack of intraday
accounting visibility existed, caused in part by the volume of
transactions being executed, and the 4(d) U.S. segregated
commodity customer account appears to have reached a deficit
condition on Wednesday, October 26 that continued through to MF
Global's bankruptcy.
The Trustee has identified most of the parties that were the
immediate recipients of transfers from MF Global Inc. during the
final days and weeks of operation. These transfers were largely
effected through the clearing banks acting on behalf of MF Global
Inc. The ultimate recipients of these transfers included banks,
exchanges and clearing houses, MF Global Inc. affiliates,
counterparties, and customers of the futures commission merchant
and the broker-dealer.
The number of transactions executed by MF Global during the last
week prior to the bankruptcy escalated to unprecedented volumes.
The rush to meet funding needs for collateral, margin and customer
liquidations led to billions of dollars in securities sales, draws
on credit facilities, and a web of inter-company loans across
affiliates, some foreign. The company's computer systems and
employees had difficulty keeping up with the unprecedented volume
of transactions. A number of transactions were recorded
erroneously or not at all. So called "fail" transactions - where
either the buyer or seller fails to deliver the cash or the
security, respectively - were five times the normal volume during
the firm's final week.
The investigation has revealed that a confluence of factors
contributed to the deterioration of MF Global's liquidity
position. The exposure to European sovereign debt, coupled with
the announcement of disappointing quarterly results, triggered
credit downgrades by Moody's, Fitch and S&P. This escalation in
credit risk mandated substantial margin calls and increased
demands from counterparties and exchanges for collateral. As an
example, the additional margin paid to support only the sovereign
debt positions exceeded $200 million during the final week of
operations. This was a significant drain on available cash and
securities. The sovereign debt investments undertaken on a repo
to maturity basis allowed some immediate gains to be booked, but
these were purely paper profits generating negligible cash while
the underlying transactions resulted in calls for substantial
additional margin.
The heightened risk and apparent loss of confidence drove
customers to close their accounts and withdraw funds, resulting in
even greater demands on a relatively limited amount of available
cash. The Trustee's investigation has revealed that, while
personnel may not have been immediately aware of it, MF Global
Inc. experienced a shortfall in 4(d) customer funds beginning
during the day on Wednesday, October 26. The MF Global parent
company struggled to continue to operate and even to sell the
business, but MF Global Inc. appears to have remained in a
shortfall of commodity customer segregated funds virtually
continuously until its parent filed for Chapter 11 protection on
Monday, October 31 and the Securities Investor Protection Act
(SIPA) proceeding was commenced against MF Global Inc. later that
afternoon.
The Trustee's investigators, including the legal and forensic
accounting teams, have conducted over 50 witness interviews,
preserved secure access to thousands of boxes of hard copy
documents, imaged over 800 computer drives, and are maintaining
over 100 terabytes of data.
To understand where the money went during October 2011, the
analysis conducted by the Trustee's professionals has included 840
cash transactions in excess of $10 million that total $327
billion, and an ongoing analysis of related securities
transactions involving a value of over $100 billion. These large
cash transactions alone span 47 bank accounts across eight
financial institutions. An additional 20,000 cash transfers that
total $9 billion involve transfers of less than $10 million.
The Trustee's investigation is continuing to correlate cash
transfers to relevant movements of securities used as collateral
or loaned to counterparties. To that end, the Trustee is now
working with various third parties to further define these
securities transactions and obtain more complete information about
the extent and basis for transfers to select parties. The Trustee
continues to investigate the complex factual and legal questions
to determine how best to pursue possible recoveries and the extent
to which applicable law would support claims against particular
recipients of funds, affiliates, and possibly to other parties,
including employees of MF Global.
The Trustee's investigation will continue, in coordination with
the regulatory and law enforcement investigations that are being
conducted by the Department of Justice, the CFTC, and the SEC on
an ongoing basis. The Trustee will seek to release additional
information related to his investigation in the future, but cannot
prematurely release information that might compromise the
integrity of those investigations or the Trustee's own efforts to
recover funds for customers and the estate.
Claims Process and Account Transfers
The Trustee's staff is continuing its analysis of customer claims
after the claims filing period for commodities customers closed on
Jan. 31, 2012.
Once a claim is reviewed by the Trustee's staff on as expedited a
basis as possible, a determination letter will be issued to the
claimant. These determination letters are being issued on a
rolling basis. The determination letter will acknowledge the
claim and provide a determination as to whether the claim has been
allowed, denied, reclassified, or is subject to further
reconciliation or information requests.
The Trustee is eager to make additional distributions to former MF
Global Inc. customers as soon as possible. However, the Trustee
is required by law to hold an appropriate reserve of funds until
disputed claims are resolved either through negotiation or by the
Court. At this time, the Trustee anticipates significant disputed
claims against the MF Global Inc. estate by MF Global Holdings
Ltd., MF Global UK Limited, and other entities. The Trustee will
move to attempt to resolve these claims as quickly as possible,
but it is uncertain how long resolution will take. Therefore, it
is not known at this time when the Trustee will be legally able to
make additional distributions.
The Trustee has already distributed nearly $4 billion to former MF
Global Inc. retail commodities customers with US futures positions
via three bulk transfers:
Within days of the bankruptcy, the Trustee received court approval
for the transfer of 10,000 commodities customer accounts with
three million open positions, along with approximately $1.5
billion in collateral associated with those positions at the time
of the bankruptcy. These open positions had a notional value of
$100 billion. It is estimated that 40% of all commodity futures
exchange activity in United States markets came from MF Global
Inc. trades and a serious disruption in markets was avoided by the
transfer.
A transfer of 60% of the cash attributable to approximately 15,000
customer commodity accounts with cash only in the accounts,
totaling approximately $500 million, was completed in November.
And in December and January a third transfer occurred that moved
approximately $2 billion to restore 72% of US segregated customer
property to all former MF Global Inc. retail commodities customers
with US futures positions.
In addition, the Trustee has received Court approval to sell and
transfer approximately 318 active retail securities accounts,
which is substantially all of the securities accounts at MF Global
Inc. Nearly all securities customers have received 60% or more of
their account value and already 194 of former MF Global Inc.
securities customers have received the entirety of their account
balances because of a Securities Investor Protection Corporation
guarantee.
About MF Global
New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/
-- is one of the world's leading brokers of commodities and
listed derivatives. MF Global provides access to more than 70
exchanges around the world. The firm is also one of 22 primary
dealers authorized to trade U.S. government securities with the
Federal Reserve Bank of New York. MF Global's roots go back
nearly 230 years to a sugar brokerage on the banks of the Thames
River in London.
MF Global Holdings Ltd. and MF Global Finance USA Inc. filed
voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-
15059 and 11-5058) on Oct. 31, 2011, after a planned sale to
Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF
Global had $41,046,594,000 in total assets and $39,683,915,000 in
total liabilities. It is easily the largest bankruptcy filing so
far this year.
Judge Honorable Martin Glenn presides over the Chapter 11 case.
J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric
Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve
as bankruptcy counsel. The Garden City Group, Inc., serves as
claims and noticing agent. The petition was signed by Bradley I.
Abelow, Executive Vice President and Chief Executive Officer of
MF Global Finance USA Inc.
MFGH's subsidiaries MF Global Capital LLC, MF Global FX
Clear LLC and MF Global Market Services, LLC filed for bankruptcy
protection on December 19, 2011.
The Securities Investor Protection Corporation commenced
liquidation proceedings against MF Global Inc. to protect
customers. James W. Giddens was appointed as trustee pursuant to
the Securities Investor Protection Act. He is a partner at
Hughes Hubbard & Reed LLP in New York.
Jon Corzine, the former New Jersey governor and co-CEO of
Goldman Sachs Group Inc., stepped down as chairman and chief
executive officer of MF Global just days after the bankruptcy
filing.
U.S. regulators are investigating about $633 million missing from
MF Global customer accounts, a person briefed on the matter said
Nov. 3, according to Bloomberg News.
Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by MF Global Holdings and other insolvency and
bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
MGT CAPITAL: NYSE AMEX LLC Accepts Plan of Compliance
-----------------------------------------------------
MGT Capital Investments, Inc. disclosed that on Jan. 26, 2012 it
received notice from the staff of the NYSE Amex LLC that the
Exchange had accepted the Company's plan of compliance with
respect to previously disclosed non-compliance with Section 704 of
the listing standards of the Exchange's Company Guide, for failure
to hold an annual meeting of its stockholders during 2011 for the
fiscal year ended Dec. 31, 2010. The Exchange accepted the
Company's Plan with a targeted date of July 3, 2012 to regain
compliance with the continued listing standards. The Company will
be subject to periodic review by Exchange staff during the
extension period. Failure to make progress consistent with the
Plan or to regain compliance with the continued listing standards
by the end of the extension period could result in the Company
being delisted from the NYSE AMEX LLC.
MGT Capital Investments, Inc. is a holding company comprised of
MGT, the parent company, and its wholly-owned subsidiary MGT
Capital Investments (U.K.) Limited. In addition we also have a
controlling interest in our subsidiary, Medicsight Ltd, including
its wholly owned subsidiaries.
MIMOSA CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Mimosa Construction, Inc.
419 Riverside Avenue
Rutherford, NJ 07070
Bankruptcy Case No.: 12-10418
Chapter 11 Petition Date: February 1, 2012
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Martin Glenn
Debtor's Counsel: Erica R. Feynman, Esq.
RATTET PASTERNAK, LLP
550 Mamaroneck Avenue, Suite 510
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: efeynman@rattetlaw.com
- and ?
Jonathan S. Pasternak, Esq.
RATTET PASTERNAK, LLP
550 Mamaroneck Avenue, Suite 510
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: jsp@rattetlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its 20 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/nysb12-10418.pdf
The petition was signed by Miguel A. Demenjon, president.
MERIDIAN SHOPPING: Bankruptcy Filing Halts Foreclosure
------------------------------------------------------
Eli Segall, reporter at Silicon Valley/San Jose Business Journal,
relates that Meridian Shopping Center LLC has filed for Chapter 11
protection in the U.S. Bankruptcy Court in San Jose, California,
blocking a scheduled foreclosure sale.
The report says the company's only listed asset -- the shopping
center -- is valued at $14 million, and its only listed creditor
is East West Bank, which is owed $10.9 million.
Meridian Shopping Center LLC owns and operates a shopping center
Meridian Park Plaza in Milpitas, California. It filed for Chapter
11 bankruptcy (Bankr. N.D. Calif. Case No. 12-50380) on Jan. 18,
2012. Judge Stephen L. Johnson presides over the case. The Law
Office of Dennis Yan serves as the Debtor's counsel. The Debtor
scheduled $14,000,000 in assets and $10,912,623 in liabilities.
The petition was signed by John Wynn, manager.
MMD COMPONENTS: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: MMD Components, Inc.
30400 Esperanza
Rancho Santa Margarita, CA 92688
Bankruptcy Case No.: 12-11352
Chapter 11 Petition Date: February 1, 2012
Court: U.S. Bankruptcy Court
Central District of California (Santa Ana)
Judge: Theodor Albert
Debtor's Counsel: Thomas J. Polis, Esq.
POLIS & ASSOCIATES, APLC
19800 MacArthur Boulevard, Suite 1000
Irvine, CA 92612-2433
Tel: (949) 862-0040
Fax: (949) 862-0041
E-mail: tom@polis-law.com
Scheduled Assets: $1,518,179
Scheduled Liabilities: $1,709,429
The Company?s list of its 20 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/cacb12-11352.pdf
The petition was signed by Rodney M. Mills, chief executive
officer.
PACIFIC READY: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Pacific Ready Mix, Inc.
500 S. Walnut Street
Anaheim, CA 92802
Tel: (949) 756-9050
Bankruptcy Case No.: 12-11327
Chapter 11 Petition Date: February 1, 2012
Court: U.S. Bankruptcy Court
Central District of California (Santa Ana)
Judge: Mark S. Wallace
Debtor's Counsel: Robert Sabahat, Esq.
MADISON HARBOR ALC
17702 Mitchell N, Suite 100
Irvine, CA 92614
Tel: (949) 756-9050
Fax: (949) 756-9060
E-mail: rsabahat@madisonharbor.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its 20 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/cacb12-11327.pdf
The petition was signed by Norman Bergdahl, president.
NAKNEK ELECTRIC: Bristol Bay Resigns as Equity Committee Member
---------------------------------------------------------------
Robert D. Miller, the U.S. Trustee for Region 18, filed with the
Bankruptcy Court a Second Amended List of Equity Committee Members
in the bankruptcy case of Naknek Electric Association, Inc.:
1. Bristol Bay Housing Authority
Dave McClure, executive director
P.O. Box 50, Dillingham, AK 99576
Tel: 907-842-6500,
Fax: 907-842-2784
E-mail: dmclure@bbha.org
2. Brookside Properties Inc/Acadia Corporation dba King Ko Inn
Paul Koval, president
P.O. Box 111830, Anchorage, AK 99511-1830
Tel: 907-562-0648
Fax: 907-567-0658
E-mail: paul@kingko.com
3. Sandor Manyoky
Tel: 907-947-3499
Fax: 907-349-8791
E-mail: haas@gci.net
4. PAUG-VIK
Daniel Casey, general manager
P.O. Box 61, Naknek, AK 99633
Tel: 202-812-3020
Fax: 866-653-3282
E-mail: Oci@gci.net
5. Lorren/Heidemarie Weaver
P.O. Box 497, King Salmon, AK 99612
Tel: 907-246-3011 or 907-929-1298
Cell:907-947-6415
Fax: 907-929-1298
E-mail: lorrenw@starband.net
6. Trident Seafods Corp
Douglas W. Nelson
5303 Shilshole Avenue NW, Seattle, WA 98107
Tel: 206-783-3818
E-mail: dougnelson@tridentseafoods.com
7. Leader Creek Fisheries, Inc.
Norman Van Vactor, general manager
Mile 35 Alaska Peninsula Highway, Naknek, AK, 996 33
Tel: 907-469-0670
Fax: 206-547-6901
E-mail: norman@leadercreekfisheries.com
Bristol Bay Borough has resigned as a member to the Equity
Security Holders Committee.
About Naknek Electric Association
Naknek, Alaska-based Naknek Electric Association, Inc., operates a
diesel power generation plant, storage and distribution system
on approximately 9.34 acres of land it owns in Naknek, Alaska.
It provides electricity to 591 members of the cooperative. It
also is developing a geothermal well.
Naknek Electric filed for Chapter 11 bankruptcy protection (Bankr.
D. Alaska Case No. 10-00824) on Sept. 29, 2010. Erik LeRoy, Esq.,
at Erik Leroy P.C., assists the Debtor in its restructuring
effort. The Debtor estimated its assets and debts at $10 million
to $50 million as of the Petition Date.
The Debtor filed with the Bankruptcy Court a plan of
reorganization and an accompanying disclosure statement on
Sept. 15, 2011.
NEWPAGE CORP: Union Workers Seek to Recoup $168 Million
-------------------------------------------------------
The Canadian Press reports that the Communications, Energy and
Paperworkers Local 972, union representing workers at NewPage Port
Hawkesbury, an idled Cape Breton paper mill, filed a claim of
US$168.2-million from NewPage Corp. for benefits including
severance and pensions in he U.S. Bankruptcy Court in Delaware
last week.
According to the report, union spokesman Archie MacLachlan said
the union doesn't have much hope of receiving a large sum at the
end of the U.S. proceedings because there are other secured
creditors ahead of the workers.
The report says NewPage's two paper machines in Point Tupper, Nova
Scotia, have been shut down since September, and Pacific West
Commercial Corp. is in negotiations to buy the mill. Prior to its
shutdown, NewPage had been making special payments to fix the
unfunded liability in company pension plans.
The report relates that the letter sent by the union stated that
since the mill has shut down, it has missed almost $4 million in
special payments.
About NewPage Corp.
Headquartered in Miamisburg, Ohio, NewPage Corporation was the
leading producer of printing and specialty papers in North
America, based on production capacity, with $3.6 billion in net
sales for the year ended Dec. 31, 2010. The company's product
portfolio is the broadest in North America and includes coated
freesheet, coated groundwood, supercalendered, newsprint and
specialty papers. These papers are used for corporate collateral,
commercial printing, magazines, catalogs, books, coupons, inserts,
newspapers, packaging applications and direct mail advertising.
NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan,
Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a
total annual production capacity of roughly 4.1 million tons of
paper, including roughly 2.9 million tons of coated paper, roughly
1.0 million tons of uncoated paper and roughly 200,000 tons of
specialty paper.
NewPage, along with affiliates, filed Chapter 11 bankruptcy
protection (Bankr. D. Del. Lead Case No. 11-12804) on Sept. 7,
2011. Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and
Philip M. Abelson, Esq., Dewey & Leboeuf LLP, in New York, serve
as counsel. Laura Davis Jones, Esq., at Pachulski Stang Ziehl &
Jones LLP, in Wilmington, Delaware, serves as co-counsel. Lazard
Freres & Co. LLC is the investment banker, and FTI Consulting Inc.
is the financial advisor. Kurtzman Carson Consultants LLC is the
claims and notice agent. In its balance sheet, the Debtors
disclosed $3.4 billion in assets and $4.2 billion in total
liabilities as of June 30, 2011.
At an organizational meeting of creditors held on Sept. 21, 2011,
the Committee selected Paul Hastings LLP as its bankruptcy
counsel and Young Conaway Stargatt & Taylor, LLP to act as its
Delaware and conflicts counsel.
NewPage prevailed over most objections from the official
creditors' committee and won agreement from the bankruptcy judge
on final approval of $600 million in secured financing.
Moody's Investors Service assigned a Ba2 rating to the
$350 million first-out revolving debtor-in-possession credit
facility and a B2 rating to the $250 million second-out debtor-in-
possession term loan for NewPage.
OILSANDS QUEST: Alberta Company Files Chapter 15 in New York
------------------------------------------------------------
Oilsands Quest Inc., an oil sands-exploration company based in
Calgary, Alberta, filed a Chapter 15 petition in U.S. bankruptcy
court in New York (Bankr. S.D.N.Y. Case No. 12-10476) to support
reorganization in a court in Canada.
Ernst & Young Inc., the court-appointed monitor and foreign
representative, signed the Chapter 15 petitions for Oilsands and
its affiliates.
The principal assets of the Oilsands Group are permits, licenses,
and leases relating to natural resource properties in Alberta and
Saskatchewan and granted by the Provinces of Alberta or
Saskatchewan pursuant to applicable Canadian laws or regulations.
Court filings say that with the exception of certain payables to
regulators and consultants based in the United States, as well as
the shareholder litigations in New York and Colorado, all
liabilities of the Oilsands Group are to suppliers and creditors
in Canada.
Assets are more than $100 million while debt is less than
$10 million, according to the petition. Affiliates filed for
creditor protection under the Canadian Companies' Creditors
Arrangement Act (CCAA) in Alberta in November.
The Foreign Representative is seeking the U.S. Court's recognition
of the Canadian Proceedings as "foreign main proceedings."
Attorneys for E&Y as Monitor can be reached at:
Ken Coleman, Esq.
Jonathan Cho, Esq.
ALLEN & OVERY LLP
1221 Avenue of the Americas
New York, New York 10020
Tel: (212) 610-6300
Fax: (212) 610-6399
E-mail: ken.coleman@allenovery.com
jonathan.cho@allenovery.com
C$3.75MM Financing
Oilsands has secured a commitment for debtor-in-possession
financing of C$3.75 million, for the purposes of funding operating
costs and other expenses while the Company proceeds with its
previously announced solicitation process while under creditor
protection. The DIP Facility is subject to approval from the
Alberta Court of Queen's Bench.
The DIP Facility is being provided by Century Services Inc.
pursuant to the terms and conditions of a Commitment Letter dated
Feb. 1, 2012. The DIP Facility will be repayable on the earlier
of one year following closing or the termination of the Order from
Court providing creditor protection under the Companies' Creditors
Arrangement Act (Canada). The Company expects to obtain Court
approval by Feb. 16, 2012, after which advances under the DIP
Facility will be available to Oilsands Quest.
Sale of Eagles Nest
Oilsands Quest has also entered into a purchase and sale agreement
with an unrelated third-party entity to sell its non-core Eagles
Nest asset for C$4.4 million. The purchaser has agreed to pay
deposits of C$300,000 by Feb. 21, 2012, with closing anticipated
on or before March 23, 2012. The asset sale is also conditional
on Court approval and normal closing conditions and adjustments.
There can therefore be no assurance that the sale will be
concluded.
The Eagles Nest prospect covers 22,773 acres (9,216 hectares)
located in the Athabasca oil sands region northwest of Fort
McMurray, Alberta. The property is geographically distant from
Oilsands Quest's other oil sands discoveries and largely
unexplored.
TD Securities Inc. acted as financial advisor to Oilsands Quest on
the sale of Eagles Nest and continues to assist the Company with
the ongoing solicitation process.
CCAA Proceedings
On Nov. 29, 2011, the Company and certain of its subsidiaries
voluntarily commenced proceedings under the CCAA obtaining an
Initial Order from the Court of Queen's Bench of Alberta, in In re
Oilsands Quest, Inc., et al., Case No. 1101-16110.
The CCAA Proceedings were initiated by: Oilsands Quest, Oilsands
Quest Sask Inc., Township Petroleum Corporation, Stripper Energy
Services, Inc., 1291329 Alberta, Ltd., and Oilsands Quest
Technology, Inc.
Under the Initial Order, Ernst & Young Inc. was appointed by the
Court to monitor the business and affairs of the Oilsands Entities
and creditors are stayed for a period of 30 days while the
Oilsands Entities explore financing and restructuring alternatives
and develop a comprehensive restructuring plan. The Plan must be
approved by any affected shareholders and the Court in order to be
implemented. Neither of Oilsands' other subsidiaries, 1259882
Alberta, Ltd., and Western Petrochemical Corp., have filed for
creditor protection.
The Company has requested and obtained an extension of the Order
from the Court providing creditor protection under the CCAA until
Feb. 17, 2012, unless further extended as required and approved by
the Court.
If by Feb. 17, 2012, the Company has not obtained a further
extension of the initial order or filed a plan, creditors and
others will no longer be stayed from enforcing their rights.
About Oilsands Quest
Oilsands Quest Inc. -- http://www.oilsandsquest.com/-- is
exploring and developing oil sands permits and licenses, located
in Saskatchewan and Alberta, and developing Saskatchewan's first
commercial oil sands discovery.
The Company reported a net loss of US$10.3 million for the six
months ended Oct. 31, 2011, compared with a net loss of
US$25.1 million for the six months ended Oct. 31, 2010.
The Company's balance sheet at Oct. 31, 2011, showed
US$156.6 million in total assets, US$33.3 million in total
liabilities, and stockholders' equity of US$123.3 million. As at
Oct. 31, 2011, the Company had a deficit accumulated during the
development phase of US$721.7 million.
The Company's common shares remain suspended from trading until
either a delisting occurs or until the NYSE permits the resumption
of trading.
OILSANDS QUEST: To Sell Eagles Nest for C$4.4 Million
-----------------------------------------------------
Oilsands Quest Inc. has secured a commitment for debtor-in-
possession financing of CDN$3.75 million, for the purposes of
funding operating costs and other expenses while the Company
proceeds with its previously-announced solicitation process while
under creditor protection.
The DIP Facility is being provided by Century Services Inc.
pursuant to the terms and conditions of a Commitment Letter dated
Feb. 1, 2012. The DIP Facility will be repayable on the earlier
of one year following closing or the termination of the Order from
the Alberta Court of Queen's Bench providing creditor protection
under the Companies' Creditors Arrangement Act (Canada). The DIP
Facility is subject to the completion of definitive agreements and
Court approval, which the company expects to obtain by Feb. 16,
2012, after which advances under the DIP Facility will be
available to Oilsands Quest.
Oilsands Quest has also entered into a purchase and sale agreement
with an unrelated third-party entity to sell its non-core Eagles
Nest asset for CDN$4.4 million. The purchaser has agreed to pay
deposits of CDN$300,000 by Feb. 21, 2012 with closing anticipated
on or before March 23, 2012. The asset sale is also conditional
on Court approval and normal closing conditions and adjustments.
There can therefore be no assurance that the sale will be
concluded.
The Eagles Nest prospect covers 22,773 acres (9,216 hectares)
located in the Athabasca oil sands region northwest of Fort
McMurray, Alberta. The property is geographically distant from
Oilsands Quest's other oil sands discoveries and largely
unexplored. Resource estimates for the property are available on
the Company's website.
TD Securities Inc. acted as financial advisor to Oilsands Quest on
the sale of Eagles Nest and, as previously disclosed, continues to
assist the Company with the ongoing solicitation process.
Oilsands Quest continues to operate under the protection of CCAA
with the assistance of a Court-appointed monitor. The Company's
common shares remain suspended from trading until either a
delisting occurs or until the NYSE permits the resumption of
trading.
About Oilsands Quest
Oilsands Quest Inc. -- http://www.oilsandsquest.com/-- is
exploring and developing oil sands permits and licenses, located
in Saskatchewan and Alberta, and developing Saskatchewan's first
commercial oil sands discovery.
The Company reported a net loss of US$10.3 million for the six
months ended Oct. 31, 2011, compared with a net loss of
US$25.1 million for the six months ended Oct. 31, 2010.
The Company's balance sheet at Oct. 31, 2011, showed
US$156.6 million in total assets, US$33.3 million in total
liabilities, and stockholders' equity of US$123.3 million. As at
Oct. 31, 2011, the Company had a deficit accumulated during the
development phase of US$721.7 million.
* * *
On Nov. 29, 2011, the Company and certain of its subsidiaries
voluntarily commenced proceedings under the CCAA obtaining an
Initial Order from the Court of Queen's Bench of Alberta (the
"Court"), in In re Oilsands Quest, Inc., et al., Case No. 1101-
16110.
The CCAA Proceedings were initiated by: Oilsands Quest, Oilsands
Quest Sask Inc., Township Petroleum Corporation, Stripper Energy
Services, Inc., 1291329 Alberta, Ltd., and Oilsands Quest
Technology, Inc. (collectively, the "Oilsands Entities").
Under the Initial Order, Ernst & Young, Inc., was appointed by the
Court to monitor the business and affairs of the Oilsands Entities
and creditors are stayed for a period of 30 days while the
Oilsands Entities explore financing and restructuring alternatives
and develop a comprehensive restructuring plan. The Plan must be
approved by any affected shareholders and the Court in order to be
implemented. Neither of Oilsands' other subsidiaries, 1259882
Alberta, Ltd., and Western Petrochemical Corp., have filed for
creditor protection.
The Company has requested and obtained an extension of the Order
from the Court providing creditor protection under the CCAA until
Feb. 17, 2012, unless further extended as required and approved by
the Court.
If by Feb. 17, 2012, the Company has not obtained a further
extension of the initial order or filed a plan, creditors and
others will no longer be stayed from enforcing their rights.
OILSANDS QUEST: Chapter 15 Case Summary
---------------------------------------
Chapter 15 Petitioner: Harold Neil Narfason
ERNST & YOUNG
As Monitor and Foreign Representative
Chapter 15 Debtor: Oilsands Quest Inc.
fdba CanWest Petroleum Corporation
1333 8th Street S.W., Suite 900
Calgary, Alberta
Canada, T2R 1M6
Chapter 15 Case No.: 12-10476
Affiliates that simultaneously filed Chapter 15 petitions:
Debtor Case No.
------ -------
Oilsands Quest Inc. 12-10476
Oilsands Quest Sask Inc. 12-10477
Township Petroleum Corporation 12-10478
Stripper Energy Services Inc. 12-10479
1291329 Alberta Ltd. 12-10480
Oilsands Quest Technology Inc. 12-10481
1259882 Alberta Ltd. 12-10482
Western Petrochemicals Group 12-10483
Type of Business: The Debtor is a company based in Canada that
explores and develops oil sands, permits and
leases.
Chapter 15 Petition Date: February 6, 2012
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Martin Glenn
Debtor?s Counsel: Kenneth P. Coleman, Esq.
ALLEN & OVERY LLP
1221 Avenue of Americas
New York, NY 10022
Tel: (212) 610-6300
Fax: (212) 610-6399
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of creditors together with its
petition.
PACIFIC MONARCH: Taps White & Case as Special Tax Counsel
---------------------------------------------------------
Pacific Monarch Resorts, Inc., et al., ask the U.S. Bankruptcy
Court for the Central District of California for permission to
employ White & Case LLP as their special tax counsel, nunc pro
tunc to the commencement of these cases.
As special tax counsel, White & Case LLP will:
a. Review and analyze US federal tax implications of potential
structures for the Debtors to transfer assets to RFA and
DPM;
b. Recommend most tax efficient structure for the Debtors to
transfer assets to RFA PMR LoanCo, LLC, and DPM Acquisition,
LLC; and
c. Analyze and resolve other federal tax issues as they arise
in these cases.
Subject to the Court's approval, White & Case will charge the
Debtors for White & Case's services in accordance with its hourly
rates in effect at the time services are rendered. Currently,
White & Case attorneys bill at rates of approximately $295 to
$1,050 er hour. David Dreier, Esq., the only attorney expected
to render substantial services to the Debtors, bills at a rate of
$825 per hour.
Mr. Dreier, a partner at White & Case, attests that the firm does
not represent or hold any interest adverse to the Debtor or the
Debtors' estates and furthermore, the firm does not have any
connection with the Debtors, their estates, their creditors, the
Santa Ana Office of the United States Trustee, or any other party
in interest in the Debtors' cases or with their respective
attorneys or accountants relating to the matter for which the firm
is sought to be employed.
About Pacific Monarch
Pacific Monarch Resorts, Inc., and its affiliated debtors operate
a "timeshare business" business. The 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, in Los Angeles,
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.
PACIFIC MONARCH: Proposes LTSP as Tax Accountants
-------------------------------------------------
Pacific Monarch Resorts, Inc., et al., ask the U.S. Bankruptcy
Court for the Central District of California for permission to
employ Lesley, Thomas, Schwarz & Postma, Inc., as tax and vacation
ownership points accountants.
As tax and vacation ownership points accountants, LTSP will:
(1) examine the schedules of changes in vacation ownership
points available for the three months ended Dec. 31, 2011, for the
purpose of expressing an opinion as to whether the schedules of
changes in Points available are presented fairly, in connection
with the Debtors' asset purchase agreement with DPM Acquisition,
LLP;
(2) identify, measure, document, and disclose the tax provision
and related accounts regarding PMR's compliance with Financial
Accounting Standards Board Accounting Standards Codification 740,
Income Taxes; and
(3) prepare the consolidated federal and state corporate income
tax returns for PMR for the year ended Dec. 31, 2011, and
the corporate tax returns for MGV Cabo, LLC, and DCAONE, LLC. for
the year ended Dec. 31, 2011, and advise on income tax matters as
requested.
PMR further requests for authorization to pay LTSP according to
the terms of its engagement letters with the Debtors without the
need to file a separate fee application.
Mark Murphy, a partner at LTSP, attests that the accounting firm
and its employees are "disinterested" as that term is defined in
Section 101(14) of the Bankruptcy Code.
LTSP will be compensated at the regular hourly rates for the
individuals involved, plus out-of-pocket expenses. LTSP has
indicated that it expects the following individuals to provide
substantial services in connection with the Agreements, at the
rates indicated:
Mark Murphy (Partner) $300/hour
Mark Simurda (Partner) $300/hour
Mike Agresti (Manager) $185/hour
Cody Boebel (Manager) $185/hour
Tyler Esswein (Staff) $120/hour
LTSP has estimated that its fees will total $24,000 for the 2010
and 2011 tax and compliance review, $22,000 for the preparation of
the 2011 tax returns, and $7,500 for the Points audit. LTSP has
also indicated that the foregoing tasks will require that it
expend time coordinating the review of the 2009 audit engagement
work papers prepared by BDO USA, LLC ("BDO") and providing
documents requested by BDO, which task is anticipated to result in
fees and costs of approximately $3,000.
About Pacific Monarch
Pacific Monarch Resorts, Inc., and its affiliated debtors operate
a "timeshare business" business. The 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, in Los Angeles,
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.
PACIFIC MONARCH: Proposes GWT as Labor Counsel
----------------------------------------------
Pacific Monarch Resorts, Inc., et al., ask the U.S. Bankruptcy
Court for the Central District of California for permission to
employ Greenberg, Whitcombe & Takeuchi, LLP as their special
counsel, nunc pro tunc to the commencement of the Debtors' cases.
As special counsel, GWT will render the following typ0es of
professional services:
a. Employment and labor advice: Specifically, GWT provides
continuing counsel on California's WARN Act (California
Worker Adjustment and Retraining Act) requirements in
conjunction with layoffs by Debtors of their employees;
b. General advice concerning corporate structural and
transactional matters that may be outside of the expertise
of bankruptcy counsel;
c. Negotiation and documentation of agreements relating to
Fifth Third's aircraft lease; and
d. GWT successfully represented PMR in defense of a tort claim
in the case entitled, Pruitt v. Pacific Monarch Resorts,
Inc., et al., Case No. 30-2009-00120520 (Orange County
Superior Court) and is currently attempting to obtain and
enforce a judgment in that matter. GWT will assist in other
defense of insured litigation as may become necessary.
GWT will not be responsible for matters of bankruptcy law,
including general representation of the Debtors in the Chapter 11
cases, as the Debtors have already retained reorganization counsel
for those purposes, specifically the firm of Stutman, Treister &
Glatt Professional Corporation.
During the 90 days before the Petition Date, GWT received
compensation in the aggregate amount of approximately $302,492
from the Debtors for prepetition services rendered on the Debtors'
behalf. All payments were made in the ordinary course. The
Debtors do not owe GWT any amount for prepetition services.
Subject to the Court's approval, GWT will charge the Debtors for
GWT's services in accordance with its hourly rates in effect at
the time services are rendered. The current hourly billing rates
of selected members of GWT are:
John D. Whitcombe, Esq. $425
Michael J. Gibson, Esq. $375
Samantha F. Lamberg, Esq. $375
Michael J. Weinberger, Esq. $300
Mr. Whitcombe, a partner at GWT, attests that none of GWT or the
attorneys comprising or employed by it hold or represent an
interest adverse to the estate with respect to the matters on
which they are to be employed, and do not have any connection with
the Debtors, their estates, their creditors, the UST, or any other
party in interest in the Debtors' cases or with their respective
attorneys or accountants.
About Pacific Monarch
Pacific Monarch Resorts, Inc., and its affiliated debtors operate
a "timeshare business" business. The 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, in Los Angeles,
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.
PENDLETON COUNTY: S&P Cuts Rating on Series 1993B Bonds to 'B'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term rating to
'B' on Pendleton County, Ky.'s (Kentucky Association of County's
Leasing Trust Program) series 1993B bonds on Jan. 19, 2012. This
downgrade was an error correction, since this rating should have
been lowered in July 2005 when the series 1993A bonds were
redeemed and the security of the 1993B bonds shifted to solely a
guaranteed investment contract (GIC) from both a county
appropriation and a GIC.
PENINSULA HOSPITAL: Feb. 14 Hearing on Examiner Accountant Motion
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York has
set a hearing for Feb. 14, 2012, at 10:30 a.m. to consider the
application of Richard McCord, Examiner in Peninsula Hospital
Center, et al.'s cases, to employ Giambalvo, Stalzer & Company,
CPAs, P.C., as accountants for the Examiner.
As reported in the TCR on Jan. 31, 2012, Richard J. McCord, Esq.,
as Chapter 11 Examiner for Peninsula Hospital Center, et al.,
sought permission from the Bankruptcy Court to employ Giambalvo,
Stalzer & Company, CPAs, P.C., as accountants, nunc pro tunc to
Jan. 11, 2012.
The Examiner wants Giambalvo Stalzer to:
(i) review cash flow projections and operating reports;
(ii) investigate payments made between the Debtor and Revival
Home Health Care, Revival Acquisitions Group LLC and
Revival Funding Co., LLC;
(iii) review transactions between related companies and possible
related party transactions;
(iv) analyze various financial and loan agreements;
(v) review appraisals;
(vi) attend meetings with the Examiner and parties; and
(vii) investigate other matters that the Court deems appropriate
upon proper application.
Mr. McCord explained that the retention of an accountant is needed
to assist in his charge as Examiner in conducting an analysis of
the financial documents to establish that the Debtor can
successfully emerge from Chapter 11 for the benefit of creditors.
Mr. Giambalvo, president of the firm, discloses that their normal
hourly rates are:
Principals $350
Director and Senior Manager $250
Manager $225
Senior $200
Staff Accountant $150
Staff Assistants and Professionals $100
Mr. Giambalvo assures the Court his firm represents no interest
adverse to that of the Peninsula Debtors, unsecured creditors or
its shareholders and officers in the case.
About Peninsula Hospital
Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an
involuntary Chapter 11 bankruptcy protection against Peninsula
Hospital Center -- http://www.peninsulahospital.org/-- (Bankr.
E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S.
Stong presides over the case. Marilyn Cowhey Macron, Esq., at
Macron & Cowhey, represents the petitioners.
Peninsula Hospital Center and Peninsula General Nursing Home
Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC,
as financial advisors. The Hospital employed Abrams Fensterman,
et al., as their attorneys. Nixon Peabody serves as their special
counsel; GCG, Inc., serves as claims and noticing agent.
Judge Stong appointed Daniel T. McMurray at Focus Management Group
as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves
as PCO's counsel.
Richard J. McCord, Esq., has been appointed by the Court as
examiner in the Debtors' cases. He is tasked to conduct an
investigation of the Debtors' relationship and transactions with
Revival Home Health Care, Revival Acquisitions Group LLC, Revival
Funding Co. LLC, and any affiliates. Certilman Balin, & Hyman,
LLP, which counts Mr. McCord as one of the firm's members, serves
as counsel for the Examiner.
CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc.,
serve as financial advisors for the Official Committee of
Unsecured Creditors. Robert M. Hirsh, Esq., at Arent Fox LLP, in
New York, N.Y., represents the Committee as counsel.
PENINSULA HOSPITAL: Committee Wants Co-Exclusivity With Debtor
--------------------------------------------------------------
The Official Committee of Unsecured Creditors of Peninsula
Hospital Center, et al., asks the U.S. Bankruptcy Court for the
Eastern District of New York to modify the relief requested in the
Motion of Debtors to Extend Exclusive Periods for the Filing of
Chapter 11 Plans and Solicitation of Acceptances Thereto [Docket
No. 325] (the "Exclusivity Motion") and allowing the Debtors'
exclusivity to be shared with the Committee in order to ensure
that all reasonable restructuring alternatives are vigorously
pursued and the best possible result for the Debtors' estates is
achieved
The Committee tells the Court that the Debtors have committed the
estates to a restructuring plan that is premised on obtaining exit
financing from Revival Funding Co., LLC.
The Committee has the following preliminary issues and concerns
with such an arrangement:
1. The Debtors' DIP financing is set to expire in approximately
six (6) weeks and if Revival decides not to continue to operate
the Debtors' businesses or pull its commitment to fund the plan,
the Debtors and their estates will have few options.
2. Neither the Debtors nor the Committee have received a formal
letter of intent memorializing the terms and conditions of the
proposed exit financing.
3. The proposed exit financing may not be sufficient to fund a
viable and feasible plan of reorganization.
4. The Debtors have committed to Revival without exploring the
market and any reasonable restructuring alternatives.
Despite these concerns, the Debtors continue to refrain from
conducting a formal marketing and sale process and/or locating
additional sources of exit financing.
According to the Committee, by allowing the Committee co-
exclusivity, it will open up the process. Some of the benefits
will include having a more thorough, transparent process, possibly
improving the terms of the Revival transaction, and ensuring that
alternatives are explored. In doing so, such a process may remove
the shadow of uncertainty that surrounds Revival and the Debtors'
board. Moreover, co-exclusivity between the Debtors and Committee
will provide the Debtors with the continued opportunity to pursue
a plan of reorganization funded by Revival while at the same time
allowing the Committee the opportunity to locate funding and move
forward with alternatives thereby maximizing value to the estates
and their creditor.
As reported in the TCR on Jan. 24, 2012, Peninsula Hospital Center
and Peninsula General Nursing Home Corp. are seeking an extension
of the initial exclusive right to file a Chapter 11 plan through
Feb. 17, 2012. They are seeking an extension of the deadline to
solicit acceptances of the plan through Apr. 17, 2012.
The Debtors assert that extension of the Exclusive Periods will
allow them to continue to work with the Official Committee of
Unsecured Creditors to formulate consensual Chapter 11 plans.
In contrast, termination of the Exclusive Period, the Debtors
insist, could give rise to the threat of multiple plans and a
contentious confirmation process that will result in increased
administrative expenses and diminished returns to creditors.
About Peninsula Hospital
Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an
involuntary Chapter 11 bankruptcy protection against Peninsula
Hospital Center -- http://www.peninsulahospital.org/-- (Bankr.
E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S.
Stong presides over the case. Marilyn Cowhey Macron, Esq., at
Macron & Cowhey, represents the petitioners.
Peninsula Hospital Center and Peninsula General Nursing Home
Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC,
as financial advisors. The Hospital employed Abrams Fensterman,
et al., as their attorneys. Nixon Peabody serves as their special
counsel; GCG, Inc., serves as claims and noticing agent.
Judge Stong appointed Daniel T. McMurray at Focus Management Group
as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves
as PCO's counsel.
Richard J. McCord, Esq., has been appointed by the Court as
examiner in the Debtors' cases. He is tasked to conduct an
investigation of the Debtors' relationship and transactions with
Revival Home Health Care, Revival Acquisitions Group LLC, Revival
Funding Co. LLC, and any affiliates. Certilman Balin, & Hyman,
LLP, which counts Mr. McCord as one of the firm's members, serves
as counsel for the Examiner.
CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc.,
serve as financial advisors for the Official Committee of
Unsecured Creditors. Robert M. Hirsh, Esq., at Arent Fox LLP, in
New York, N.Y., represents the Committee as counsel.
PENINSULA HOSPITAL: Examiner Can Employ Certilman Balin as Counsel
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York has
granted Peninsula Hospital Center, et al., permission to employ
Certilman Balin Adler & Hyman LLP as counsel, nunc pro tunc to
Dec. 16, 2011.
The Court ordered that Certilman Balin will not adjust its hourly
rates until it has filed, on notice with an opportunity for
objection, a supplemental disclosure under Fed. R. Bankr. P. 2014.
As reported in the TCR on Jan. 31, 2012, Mr. McCord is a member of
the law firm.
According to Mr. McCord, M. Allan Hyman, Esq., Jaspreet S. Mayall,
Esq., Carol A. Glick, Esq., and Robert W. Griswold, Esq., as
members of Certilman Balin, have had extensive experience in
bankruptcy-related proceedings. Mr. McCord wants the firm to
assist him in investigating:
(i) the Debtors' prepetition relationship with Revival Home
Health Care, Revival Acquisitions Group LLC, Revival
Funding Co., LLC, and any affiliates;
(ii) any current transactions between the Debtors and the
Revival Entities;
(iii) the connections and relationships between the Revival
Entities and the Debtors' current management and boards of
directors in the context of whether current management and
the boards of directors can properly manage the Debtors and
exercise their duties under the Bankruptcy Code and
applicable non-bankruptcy law; and
(iv) other matters that the Court deems appropriate upon proper
application.
Mr. Hyman assures the Court that his firm is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
Certilman Balin has been advised that the fees and expenses of the
Examiner and his professionals have been capped at $200,000.
Compensation to the firm will be made upon proper application to
the Bankruptcy Court.
About Peninsula Hospital
Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an
involuntary Chapter 11 bankruptcy protection against Peninsula
Hospital Center -- http://www.peninsulahospital.org/-- (Bankr.
E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S.
Stong presides over the case. Marilyn Cowhey Macron, Esq., at
Macron & Cowhey, represents the petitioners.
Peninsula Hospital Center and Peninsula General Nursing Home
Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC,
as financial advisors. The Hospital employed Abrams Fensterman,
et al., as their attorneys. Nixon Peabody serves as their special
counsel; GCG, Inc., serves as claims and noticing agent.
Judge Stong appointed Daniel T. McMurray at Focus Management Group
as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves
as PCO's counsel.
Richard J. McCord, Esq., has been appointed by the Court as
examiner in the Debtors' cases. He is tasked to conduct an
investigation of the Debtors' relationship and transactions with
Revival Home Health Care, Revival Acquisitions Group LLC, Revival
Funding Co. LLC, and any affiliates. Certilman Balin, & Hyman,
LLP, which counts Mr. McCord as one of the firm's members, serves
as counsel for the Examiner.
CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc.,
serve as financial advisors for the Official Committee of
Unsecured Creditors. Robert M. Hirsh, Esq., at Arent Fox LLP, in
New York, N.Y., represents the Committee as counsel.
PENN CAMERA: Strikes Deal to Reject Springfield Commons Lease
-------------------------------------------------------------
Bankruptcy Judge Paul Mannes signed off on a stipulation and order
between Penn Camera Exchange Inc. and its landlord, Springfield
Commons, LLC, as successor-in-interest to Fran-Spring PSA LLC,
regarding the rejection of the parties lease, turnover of
premises, abandonment of furniture, fixtures and equipment, and
release of certain claims.
The Debtor leased a nonresidential real property for commercial
space at the Springfield Commons in Springfield, Virginia, under a
1998 agreement. As part of its Chapter 11 restructuring, the
Debtor has filed a motion to reject the lease.
Pursuant to the Stipulation and Order, the parties agree that the
lease is deemed rejected as a matter of law effective Feb. 1,
2012. The Debtor has no right to assume or assume and assign the
lease from and after Jan. 27, 2012, and that the Debtor was to
remove any remaining personal property, as well as any leased
property, by Feb. 1, 2012. The Landlord waives any administrative
claim for January post-petition rent and charges that it would
otherwise be entitled to receive pursuant to 11 U.S.C. Sec.
365(d)(3). The Landlord has until the later of (a) any general
bar date in the Bankruptcy Case, and (b) 60 days from the entry of
the order approving the Stipulation, to file a claim for any
damages arising under the Lease, other than the claim for January
2012 post-petition rent and charges waived, including claims for
damages for the rejection of the Lease under 11 U.S.C. Sec.
502(b)(6).
Counsel to the Unsecured Creditors' Committee has consented to the
Stipulation and Order.
A copy of the Stipulation and Order dated Feb. 2, 2012, is
available at http://is.gd/3Leiowfrom Leagle.com.
Dustin P. Branch, Esq. -- dustin.branch@kattenlaw.com -- at Katten
Muchin Rosenman LLP, serves as counsel to Springfield Commons,
LLC.
About Penn Camera
Founded in 1953, Penn Camera -- http://www.penncameras.com/-- was
known for its wide selection of photography equipment, classes and
technicians. Based in Beltsville, Maryland, Penn Camera Exchange,
Inc., which does business as Penn Camera, Penn Camera Exch, and
Penn Camera Exchange, filed for Chapter 11 bankruptcy (Bankr. D.
Md. Case No. 12-10113) on Jan. 4, 2012. Judge Paul Mannes
presides over the case. Nelson C. Cohen, Esq., at Zuckerman
Spaeder LLP, serves as the Debtor's counsel. Penn Camera
scheduled assets of $4,050,487 and liabilities of $4,402,910. The
petition was signed by Jeffrey Zweig, president.
An official committee of unsecured creditors has been appointed in
the case.
POSTMEDIA NETWORK: S&P Cuts Long-Term Corp. Credit Rating to 'B'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on Toronto-based Postmedia Network Inc. to 'B' from
'B+'. The outlook is stable.
"At the same time, we lowered our issue-level rating on the
company's first-lien senior secured term loan to 'BB-' from 'BB'.
The '1' recovery rating on the debt is unchanged. In addition, we
lowered our issue-level rating on Postmedia's second-lien senior
secured notes to 'B-' from 'B'. The recovery rating on the debt is
unchanged at 5," S&P said.
"We base the downgrade on our view that Postmedia's operating
performance will remain weak this year," said Standard & Poor's
credit analyst Lori Harris. "The company's most recent financial
results included declines in reported revenue and operating income
(before depreciation and amortization and restructuring costs) of
9.1% and 21.0% in the first quarter ended Nov. 30, 2011, compared
to the same period in 2010. Given the lackluster economy and
declining industry advertising sales, we expect the company's
performance to remain stressed for the rest of the year," Ms.
Harris added.
"The ratings on Postmedia reflect Standard & Poor's assessment of
the company's participation in the challenging newspaper
publishing industry, which is characterized by declining
advertising and circulation revenues, digital media substitution,
and pricing pressures. We believe the newspaper industry is facing
long-term secular pressures related to market share erosion toward
online and other forms of advertising. Partially offsetting these
factors, in our opinion, are the company's good market position in
Canadian newspaper publishing and solid credit protection measures
for the ratings," S&P said.
"Postmedia has a leading market position in the Canadian newspaper
publishing industry (measured by paid circulation) as the
company's business comprises several Canadian daily newspapers,
the National Post, nondaily community newspapers, and certain
online editions and classified Web sites. Postmedia was formed in
2010 to acquire substantially all of the assets of the former
Canwest Limited Partnership and its subsidiaries, as well as the
shares of National Post Inc. for C$1.1 billion. The acquisition
was financed using the proceeds from debt issuance, an equity
injection, and cash," S&P said.
"On Nov. 30, 2011, Postmedia completed the sale of three daily and
20 nondaily community newspapers in British Columbia (B.C.) to
Glacier Media Inc. (not rated) for proceeds of C$86.5 million,
which were used to reduce debt. We view the transaction positively
as the papers were not considered core," S&P said.
"The stable outlook reflects our belief that Postmedia's operating
performance will meet our expectations in fiscal 2012, including
generating sufficient positive free cash flow to cover its fixed
costs and term loan amortization requirements despite lower
revenue and EBITDA, while maintaining its solid market position.
Downward pressure on the ratings could result from further
deterioration in the company's operating performance, resulting in
adjusted debt to EBITDA above 5x or less than a 10% cushion within
the financial covenants. We are not contemplating raising the
ratings within the next year," S&P said.
PROVIDENCE, R.I.: Mayor Says City Could Face Bankruptcy
-------------------------------------------------------
American Bankruptcy Institute reports that Providence, R.I., Mayor
Angel Taveras painted a bleak picture of the city's finances,
saying that Providence faces "devastation" and could go bankrupt
if retiree benefits are not cut and tax-exempt institutions like
Brown University do not pay more in lieu of taxes.
PURE BEAUTY: Committee Challenge Period Extended to Feb. 7
----------------------------------------------------------
On Jan. 30, 2012, the U.S. Bankruptcy Court for the District of
Delaware approved the agreement of Pure Beauty Salons & Boutiques,
Inc., et al., Regis Corporation, and the Official Committee of
Unsecured Creditors in the Debtors' cases (I) extending the
Challenge Period to Feb. 7, 2012, on terms identical to those set
forth in the Final Order authorizing final use of cash collateral
[Docket No. 202], and (II) extending the deadline for the
Committee to object to the Sale Motion [Docket No. 19] to 4:00
p.m. (ET) on Feb. 7, 2012.
The Debtors' use of cash collateral is extended through and
including Feb. 15, 2012, pursuant to a budget.
A copy of the Stipulation and is available for free at:
http://bankrupt.com/misc/purebeauty.doc366.pdf
During the Challenge Period, the Committee may seek, object to, or
challenge the Debtors' stipulations set forth in the Final Order,
including, but not limited to, those in relation to: (a) the
validity, extent, priority, or perfection of the Prepetition
Liens; or (b) the validity, allowability, priority, full secured
status, or amount of the Regis Obligation, and pursuant to
Paragraph 13 of the final Order providing for amendments or
waivers of any provisions of the final Order.
As reported in the TCR on Dec. 7, 2011, the Bankruptcy Court
entered a final order authorizing the Debtors to use cash
collateral of Regis Corporation, pursuant to a budget. Actual
disbursements will not exceed the amount set forth in the budget
by more than 10%.
The Debtors' authority to use cash collateral will automatically
expire upon the earlier of Dec. 18, 2011, which is the date that
is 75 days form the Petition Date; or (ii) regardless of whether
the Debtors have expended the entire amount set forth in the
budget, the failure by the Debtors to comply with any provision of
this Final Order, which failure is not remedied within 5 days of
written notice of that failure.
The Debtors and Regis, after prior consultation with the
Official Committee of Unsecured Creditors, may agree to extend the
Initial Term without further Court authority provided that the
extension is on substantially the same terms as this Final Order,
or any subsequent modification hereof.
The Debtors owe Regis $32.5 million, which is fully secured by
substantially all of the Debtors' personal and real property and
other assets. The Secured Obligation is the only secured debt in
the Debtors' capital structure.
As adequate protection, Regis is granted a Replacement Lien in all
and property and assets of the Debtors to secure an amount of
Regis's prepetition claims equal to the aggregate diminution in
the value of the Prepetition Collateral resulting from the
Debtor's use of the cash collateral.
In addition to the Replacement Lien, subject only to the Carve-Out
for (a) professional fees and expenses incurred by the Debtors and
the Committee and (b) United States Trustee Fees, Regis will have
a Superpriority Claim under Section 507(b) of the Bankruptcy Code.
A copy of the final cash collateral order is available for free
at http://bankrupt.com/misc/purebeauty.dkt202.pdf
A copy of the Sale Motion is available for free at:
http://bankrupt.com/misc/purebeauty.doc19.pdf
About Pure Beauty
Pure Beauty Salons & Boutiques, Inc., and its affiliated company
BeautyFirst Franchise Corp., operate a chain of hair care and
beauty supply stores under the trade names Trade Secret, Beauty
Express, BeautyFirst, PureBeauty, and Winston's Barber Shop. Pure
Beauty Salons & Boutiques, Inc. operates and/or owns 436 stores
and BeautyFirst Franchise Corp. has agreements with 13 franchisees
that operate 22 BeautyFirst and 7 Trade Secret Stores.
Pure Beauty Salons & Boutiques, Inc., is back in Chapter 11 after
having been sold out of Chapter 11 last year. The prior case was
dismissed after the sale was completed. The previous case was In
re Trade Secret Inc., 10-12153, in the same court.
Pure Beauty Salons filed for bankruptcy (Bankr. D. Del. Case No.
11-13159) on Oct. 4, 2011. Affiliate BeautyFirst Franchise Corp.
filed a separate petition (Bankr. D. Del. Case No. 11-13160).
Joseph M. Barry, Esq., Kenneth J. Enos, Esq., and Ryan M. Bartley,
Esq., at Young Conaway Stargatt & Taylor, LLP, serve as the
Debtors' counsel. The Debtors' investment banker is SSG Capital
Advisors' J. Scott Victor -- jsvictor@ssgca.com The Debtors'
notice, claims solicitation, and balloting agent is Epiq
Bankruptcy Solutions.
In its schedules, Pure Beauty Salons disclosed $36,444,963 in
assets and $55,215,590 in liabilities as of the Petition Date.
In its schedules, BeautyFirst Franchise disclosed $1,716,985 in
assets and $36,761,086 in liabilities as of the Petition Date.
The Debtors owe $15 million to vendors and landlords. The
petition was signed by Brian Luborsky, chief executive officer.
Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed
seven unsecured creditors to serve on the Official Committee of
Unsecured Creditors of Pure Beauty Salons. Attorneys at Pachulski
Stang Ziehl & Jones LLP represent the Committee. LM+Co serves as
their financial advisor.
Secured lender Regis Corp. is represented in the case by Michael
L. Meyer, Esq., at Ravich Meyer Kirkman McGrath Nauman & Tansey
P.A., and Kathleen M. Miller, Esq., at Smith Katzenstein & Furlow
LLP.
PURVI PETROLEUM: Hamadani Can't Introduce Late Evidence on Appeal
-----------------------------------------------------------------
Bankruptcy Judge Marian F. Harrison sustained the objection of the
Chapter 11 Trustee of Purvi Petroleum III LLC to Mazahir
Hamadani's designation of record on appeal. On Nov. 22, 2011, the
Court held a hearing on Mr. Hamadani's objection to the Chapter 11
Trustee's motion for final decree closing the case. On Nov. 29,
2011, the Court entered an order and memorandum granting the
Chapter 11 Trustee's motion for final decree. Mr. Hamadani filed
a notice of appeal to district court on Dec. 12, 2011, and on Dec.
27, 2011, he filed a designation of record on appeal. The Chapter
11 Trustee objected to the inclusion of five items in the
designation, none of which were introduced into evidence at the
hearing on Mr. Hamadani's objection to entering a final decree. A
copy of the Court's Feb. 1, 2012 Memorandum is available at
http://is.gd/g8pWvbfrom Leagle.com.
Headquartered in La Vergne, Tennessee, Purvi Petroleum III LLC
filed for chapter 11 protection (Bankr. M.D. Tenn. Case No.
04-14423) on Nov. 30, 2004. Steven L. Lefkovitz, Esq., at
Lefkovitz & Lefkovitz, represented the Debtor in its restructuring
efforts. When the Debtor filed for protection from its creditors,
it did not disclose its assets and reported $16 million in debts.
QA3 FINANCIAL: Nebraska Judge Affirms Catlin Stay Relief Order
--------------------------------------------------------------
An insurance coverage lawsuit between Catlin Specialty Insurance
Company and QA3 Financial Corp. will proceed in New York district
court after a Nebraska district judge junked QA3's appeal of the
bankruptcy court order that lifted the automatic stay and allowed
the lawsuit to continue.
Catlin filed a complaint for declaratory judgment regarding policy
limits against QA3 (S.D.N.Y. Case No. 10-cv-8844) on Nov. 23,
2010. QA3 filed an answer, asserted counterclaims and demanded a
jury trial on Feb. 1, 2011. Ten days later, QA3 filed a voluntary
Chapter 11 petition. On April 28, 2011, Catlin filed a motion for
relief from the automatic stay so that the New York Proceeding
could continue. On June 17, 2011, QA3 filed an adversary
proceeding against Catlin in the Bankruptcy Court. The Bankruptcy
Court held a hearing, and on July 1, 2011, entered an order that
granted Catlin relief from the automatic stay.
The District Court appeal is, QA3 FINANCIAL CORP. v. CATLIN
SPECIALTY INSURANCE COMPANY QA3 FINANCIAL CORP., Appellant, v.
CATLIN SPECIALTY INSURANCE COMPANY, Appellee, No. 8:11CV327 (D.
Neb.). A copy of Nebraska District Judge Richard G. Kopf's
Feb. 1, 2012 Memorandum and Order is available at
http://is.gd/T3mQT2from Leagle.com.
Catlin Specialty Insurance Company is represented by:
James A. Overcash, Esq.
WOODS & AITKEN LLP
301 South 13th Street, Suite 500
Lincoln, NE 68508
Tel: (402) 437-8519
E-mail: jovercash@woodsaitken.com
About QA3 Financial
QA3 Financial Corp. in Omaha, Nebraska, is a broker/dealer of
securities. It had registered representatives in various parts of
the country who sold securities, including private placement
securities. Some of the products that were sold have been alleged
to be Ponzi schemes and the entities in which the purchasers
obtained a financial interest have gone out of business or filed
bankruptcy.
QA3 Financial filed a voluntary Chapter 11 petition (Bankr. D.
Neb. Case No. 11-80297) on Feb. 11, 2011. Robert V. Ginn, Esq.,
at Husch Blackwell Sanders, serves as bankruptcy counsel. In its
petition, the Debtor estimated $1 million to $10 million in assets
and debts.
An Official Committee of Unsecured Creditors has been appointed in
the case and is represented by:
Brian J. Koenig, Esq.
Donald L. Swanson, Esq.
KOLEY JESSEN P.C., L.L.O.
One Pacific Place
1125 South 103rd Street, Suite 800
Omaha, NE 68124
Tel: 402-390-9500
E-mail: brian.koenig@koleyjessen.com
REALOGY CORP: S&P Assigns 'B-' Rating to $593MM First Lien Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' issue-level
rating to real estate and relocation services company Realogy
Corp.'s $593 million 7.625% senior secured first-lien notes due
2020. "We also assigned this debt our recovery rating of '1',
indicating our expectation for very high (90% to 100%) recovery
for noteholders in the event of a payment default," S&P said.
"Further, we assigned our issue-level rating of 'CCC-' to
Realogy's $325 million 9% senior secured first-and-a-half-lien
notes due 2020 and assigned the new debt our recovery rating of
'5', indicating our expectation for modest (10% to 30%) recovery
for noteholders in the event of a payment default," S&P said.
"We also raised our issue-level rating on Realogy's existing
first-and-a-half-lien notes to 'CCC-' from 'CC' and removed the
issue from CreditWatch with positive implications, where it was
placed on Jan. 25, 2012. This action reflects a lower amount of
first-lien debt outstanding under our simulated default scenario
than under our previous analysis, and as a result, we revised our
recovery rating on the existing notes to '5' from '6'," S&P said.
"While the first- and the first-and-a-half-lien notes will be
secured by the same collateral as the company's existing first-
lien credit facility, the priority of the lien on the first-and-a-
half lien-notes will be junior to that of the first-lien credit
facility. This is the same security and priority as the company's
existing $700 million senior secured first-and-a-half-lien notes
due 2019," S&P said.
The company used the proceeds from the proposed notes issuances to
prepay $629 million of its non-extended term loan B due 2013, to
repay all of the $133 million currently outstanding under its $289
million non-extended revolving credit facility due 2013 and
terminate the related commitment, and to repay $156 million
outstanding under its $363 million extended revolving credit
facility due 2016.
"The developing outlook reflects that we could either raise or
lower our 'CCC' corporate credit rating on Realogy, depending on
the degree of improvement in the U.S. residential housing market
in 2012 and 2013. Upside potential exists if we become more
confident that Realogy can generate adequate EBITDA to cover
total interest expense and other calls on cash flow, and otherwise
maintain a manageable liquidity position with adequate cash
balances and revolver availability. However, the new notes are
likely to raise interest costs by approximately $50 million
annually, increasing total fixed charges that the company has to
cover. We estimate annualized interest expense will increase to
around $680 million pro forma for the proposed notes, compared
with our measure of EBITDA of around $520 million in the 12 months
ended September 2011. For Realogy to cover fixed charges,
including $50 million in estimated capital expenditures annually,
EBITDA would need to increase by around 40% from current levels.
This is plausible over the next two to three years in the event of
a robust housing recovery, but transaction sides and home prices
(in the aggregate) at Realogy would probably need to improve in
the high-single-digits area in each of the next few years. In this
scenario, the company would likely experience positive operating
leverage and EBITDA margin improvement from its more efficient
cost structure after years of cost-cutting," S&P said.
"Our downside rating scenario involves a failure of the
residential real estate market to recover sufficiently over the
next few years to enable full coverage of fixed charges. Fannie
Mae's current forecast is for 3% growth in existing home sales and
about a 2% decline in the median home price in 2012. Fannie Mae's
forecast for 2013 is for an increase of slightly above 3% in
existing home sales and flat median home prices. As a result,
additional interest costs from the proposed notes places the
burden on Realogy's business to outperform Fannie Mae's forecast
in a meaningful way over the next few years. While we believe this
burden results in a downside ratings scenario, we acknowledge
private-equity sponsor Apollo is likely to support Realogy's
liquidity needs for a period of time, if necessary," S&P said.
Ratings List
Realogy Corp.
Corporate Credit Rating CCC/Developing/--
New Ratings
Realogy Corp.
Senior Secured
$593 mil 7.625% first-lien notes due 2020 B-
Recovery Rating 1
First-and-a-half-lien notes due 2020 CCC-
Recovery Rating 5
Upgraded; Recovery Rating Revised
Realogy Corp.
To From
Senior Secured
First-and-a-half-lien notes CCC- CC/Watch
Pos
Recovery Rating 5 6
REOSTAR ENERGY: Has Access to Cash Collateral Until March 6
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
approved the Eight Agreed Order authorizing Reostar Energy
Corporation, et al.'s continued use of cash collateral of BT&MK
Energy Commodities LLC until March 6, 2012. Cantey Hanger LLP is
granted permission to offset their prepetition retainer against
fees owing and will receive no other payment in the month of
January.
On Jan. 12, 2012, the Court entered an order vacating the
automatic stay under limited circumstance to permit BT&MK to take
steps necessary for a March 2012 foreclosure sale.
About ReoStar Energy
Fort Worth, Texas-based ReoStar Energy Corporation is engaged in
the exploration, development and acquisition of oil and gas
properties, primarily located in the state of Texas. The Company
owns roughly 9,000 acres of leasehold, which include 5,000 acres
of exploratory and developmental prospects as well as 4,000 acres
of enhanced oil recovery prospects. ReoStar filed for Chapter 11
bankruptcy protection (Bankr. N.D. Tex. Case No. 10-47176) on
Nov. 1, 2010.
Bankruptcy Judge D. Michael Lynn presides over the case. Bruce W.
Akerly, Esq., and Arthur A. Stewart, Esq., at Cantey Hanger LLP,
in Dallas, represent the Debtors in their restructuring efforts.
Greenberg Taurig, LLP, serves as special corporate/securities
counsel. Reostar Energy disclosed $15,335,337 in assets and
$16,391,412 in liabilities.
ReoStar Energy's bankruptcy case is jointly administered with
ReoStar Gathering, Inc., ReoStar Leasing, Inc., and ReoStar
Operating, Inc. ReoStar Energy is the lead case.
No trustee was appointed in the Debtors' cases. On Jan. 10, 2011,
Michael McConnell was appointed as Chapter 11 examiner.
ReoStar filed for bankruptcy a few weeks after BT and MK Energy
and Commodities LLC, a Delaware Limited Liability Corporation
comprised of two members, BancTrust International, Inc., and MK
Oil Ventures LLC, accelerated a Union Bank note and issued a
foreclosure notice. BTMK acquired full interest in ReoStar's $25
million line of credit from Union Bank. Earlier in 2010, BT and
MK Capital expressed interested in investing in ReoStar and in
acquiring the line of credit for that purpose. Roughly
$10.8 million of the Union Bank loan were then outstanding, and
Union Bank assigned the loan to BTMK for roughly $5.4 million.
SAVANNAH OUTLET: Disclosure Statement Hearing Moved to Feb. 14
--------------------------------------------------------------
The Bankruptcy Court has continued until Feb. 14, 2012, at 11:00
a.m., the hearing to consider the adequacy of the disclosure
statement explaining Savannah Outlet Shoppes, LLC's proposed
Chapter 11 Plan. At the hearing, the Court will also consider (i)
the objections to the Disclosure Statement raised by the U.S.
Trustee and Comm 2006-C8 Gateway Boulevard Limited Partnership and
(ii) Comm 2006-C8's motion to dismiss.
As reported in the Troubled Company Reporter on Aug. 17, 2011, the
Plan, among other things, provides for the satisfaction of all
allowed administrative claims on the Effective Date or as soon as
practicable thereafter. As to each administrative claim allowed
thereafter, payment will be made soon as practicable. The Plan
also provides for the satisfaction of all priority tax
indebtedness either in cash or over a five-year period in
installments with interest.
About Savannah Outlet Shoppes
Claremont, California-based Savannah Outlet Shoppes, LLC, owns and
operates a business related to the management and leasing of a
commercial shopping center located in Savannah, Georgia.
Savannah Outlet filed for Chapter 11 bankruptcy protection (Bankr.
S.D. Ga. Case No. 10-42135) on Oct. 4, 2010. Karen F. White,
Esq., at Cohen Pollock Merlin & Small PC, represents the Debtor.
The Debtors' professionals include Bulovic Law Firm, LLC, as local
co-counsel, and Steven H. Spears as accountant. The Debtor
estimated assets and debts at $10 million to $50 million.
SHINER CHEMICALS: Court to Hear Reinstatement on Feb. 9
-------------------------------------------------------
The involuntary Chapter 11 case of Shiner Chemicals, LLC, was
dismissed at a hearing conducted by the U.S. Bankruptcy Court for
the District of Arizona on Jan. 10, 2012.
The petitioning creditors neither filed an objection to the
dismissal motion nor appeared at the hearing.
On Jan. 20, 2012, the original petitioning creditors filed a
motion with the Court to both reinstate the case and add
additional petitioning creditors, complaining that they were not
served with notice of the hearing.
The Court cannot locate a filed certificate of service
establishing that either the movant alleged debtor or the
Bankruptcy Noticing Center provided the petitioning creditors with
notice of the dismissal hearing.
A hearing on both aspects of the petitioning creditors'
motion will be conducted on Feb. 9, 2012, at 2:30 p.m. Any
objection or response to this motion will be served and filed no
later than one week prior to this hearing.
As reported in the TCR on Dec. 28, 2011, Shiner Chemicals, LLC,
asked the Bankruptcy Court to dismiss the involuntary Chapter 11
petition filed against it by Petitioners Aaron J. Valenzuela,
Sherri S. Parkin and Peter J. Workum who claim to be creditors of
the Debtor.
The Debtor contends there is a bona fide dispute as to liability
regarding Valenzuela and Parkin's claims. The Debtor admits
borrowing from Workum, but raises a bona fide dispute as to the
claim amount, and terms of repayment. The Debtors further
contends that Petitioners' claims were brought in bad faith, and
thus Debtor seeks its reasonable attorney's fees and punitive
damages.
About Shiner Chemicals
Aaron J. Valenzuela, Sherri S. Parkin and Peter J. Workman filed
an involuntary Chapter 11 petition against Shiner Chemicals, LLC
(Bankr. D. Ariz. Case No. 11-27955) on Oct. 3, 2011. Judge George
B. Nielsen, Jr., presides over the case. Chad B. Kennedy and Orlo
D. Ison are the sole members of the Debtor.
James M. McGuire, Esq., at Davis Miles, PPLC, represents the
Alleged Debtors as counsel.
SHOREBANK CORP: Seeks to Hire Skadden Arps as Counsel
-----------------------------------------------------
The Shorebank Corporation, et al., seek permission from the U.S.
Bankruptcy Court for the Northern District of Illinois to employ
Skadden, Arps, Slate, Meagher & Flom LLP and their affiliated law
practice entities as their attorneys. Skadden Arps will, among
other things:
(a) advise the Debtors with respect to their powers and duties
as debtors and debtors-in-possession in the continued
management and operation of their businesses;
(b) attend meetings and negotiate with representatives of
creditors and other parties-in-interest and advise and
consult on the conduct of the Chapter 11 cases, including
all of the legal and administrative requirements of
operating in chapter 11;
(c) take all necessary action to protect and preserve the
Debtors' estates, including the prosecution of actions on
behalf of the Debtors' estates, the defense of any actions
commenced against the estates, negotiations concerning
litigation in which the Debtors may be involved, and
objections to claims filed against the estates;
(d) prepare, on behalf of the Debtors, motions, applications,
answers, orders, reports, and papers necessary to the
administration of the estates; and
(e) prepare and negotiate on the Debtors' behalf plans of
reorganization/liquidation, disclosure statements and all
related agreements or documents, and take any necessary
action on behalf of the Debtors to obtain confirmation of
those Plans.
Prior to the Petition Date, Skadden Arps received an initial
retainer of $20,000 to be applied against anticipated professional
services and expenses charged by the firm.
The current hourly rates of Skadden Arps are:
Partners $840 - $1,000
Counsel $815 - $895
Associates $365 - $755
Assistants $195 - $310
The Debtors will reimburse the firm for its expenses including
telephone charges, photocopying, travel and computerized research.
George N. Panagakis, Esq., assures the Court that his firm is a
"disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Court.
The firm can be reached at:
George Panagakis, Esq.
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
155 N. Wacker Drive, Suite 2700
Chicago, IL 60606
Tel: (312) 407-0638
Fax: (312) 407-0711
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.
SP NEWSPRINT: Taps PwC to Audit 2011 Financial Statements
---------------------------------------------------------
SP Newsprint Holdings LLC, et al., ask the U.S. Bankruptcy Court
for the District of Delaware for permission to employ
PricewaterhouseCoopers LLP as independent accountants.
PwC will audit the consolidated financial statements of the
Debtors as of and for the year ended Dec. 31, 2011, and provide
other necessary auditing services as requested by the Debtors.
Steven H. Baker, Esq., a partner at PwC, tells the Court that PwC
and the Debtors have agreed to a fixed fee for work to be
performed in connection with the audit services in the amount of
$395,000. If extraordinary circumstances arise that would cause
the fixed amount to increase, PwC will advise the Debtors in
advance of incurring any additional fees.
Mr. Baker assures the Court that the firm is a "disinterested
person", as that term is defined in Section 101(14), of the
Bankruptcy Code.
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. SP Newsprint Co., LLC, disclosed
$317,992,392 in assets and $322,674,963 in liabilities as of the
Chapter 11 filing. The petitions were signed by Edward D.
Sherrick, executive vice president and chief financial officer.
The Official Committee of Unsecured Creditors is represented by
Lowenstein Sandler PC. Ashby & Geddes, P.A., serves as its
Delaware counsel, and BDO Consulting serves as its financial
advisor.
SP NEWSPRINT: Taps Raymond James as Investment Banking Advisor
--------------------------------------------------------------
SP Newsprint Holdings LLC, et al., ask the U.S. Bankruptcy Court
for the District of Delaware for permission to employ Raymond
James & Associates, Inc. as their external investment banking
advisor.
Raymond James will, among other things:
a) review and analyze the Debtors' business, operations,
properties, financial condition, and prospects;
b) assist the Debtors in evaluating potential Business
Combination Transaction alternatives and strategies;
c) assist the Debtors in identifying Interested Parties that
may be interested in participating in a Business Combination
Transaction; and
d) on behalf of the Debtors, contacting Interested Parties
that Raymond James, after consultation with the Debtors'
management, believes meet certain industry, financial, and
strategic criteria, and assisting the Debtors in negotiating
and structuring a Business Combination Transaction.
The Debtors have been advised by Raymond James that it will
coordinate with the other retained professionals in thecases to
eliminate unnecessary duplication or overlap of work.
The Debtors proposes to compensate Raymond James as:
a) Monthly Advisory Fee ?- The Debtors would pay Raymond James
a nonrefundable fee of $75,000 upon the entry of an order
approving the application and an additional $75,000 upon each
subsequent monthly anniversary of the date of the Engagement
Letter.
b) Reimbursement ?- The Debtors would reimburse Raymond James,
within 30 days of receipt of an invoice therefor, for reasonable
out-of-pocket expenses (including legal fees).
c) Business Combination Transaction Fee ? At the closing of a
Business Combination Transaction, other than in the event of a
Sale Process Termination, pursuant to which GECC, as collateral
agent, or a designee on behalf of the secured parties under the
Prepetition Credit Facility or DIP Credit Facility (for the
avoidance of doubt, including a cash bid, credit bid, or some
combination thereof) is the purchaser, whether effectuated
pursuant to Bankruptcy Code Section 363 or a confirmed plan of
reorganization, Raymond James would be paid a cash fee, in the
amount of $400,000; provided, however, that, if the Debtors have
paid Monthly Advisory Fees which, in the aggregate, exceed
$150,000, the Business Combination Transaction Fee would be
reduced by the amount that such fees exceed $150,000.
Notwithstanding the forgoing, if the Business Combination
Transaction is effected by a purchase for consideration other than
a GECC Bid, or if GECC sells all or a substantial portion of its
pre-petition and post-petition indebtedness prior to the
consummation of a Business Combination Transaction to a party that
has entered into a non-disclosure agreement or a confidentiality
agreement with the Debtors in connection with a potential Business
Combination Transaction, and such party submits a credit bid and
is deemed the successful bidder for the assets, then the Business
Combination Transaction Fee would be paid out of proceeds as a
cost of sale at the closing of the Business Combination
Transaction; provided further, however, that if the Debtors have
paid Monthly Advisory Fees, which, in the aggregate, exceed
$150,000, the Business Combination Transaction Fee would be
reduced by the amount that the fees exceed $150,000.
d) Sale Process Termination Fee -- If any of the Debtors'
existing secured lenders submits a binding credit bid to purchase
all or substantially all of the assets of the Debtors, and the
Debtors, in consultation with their advisors, determine that
engaging in a full marketing and sale process via the entry of
sale procedures would not benefit the Debtors' bankruptcy estates,
and the Debtors subsequently instruct Raymond James to terminate
the marketing process as a result thereof, Raymond James' would be
due a cash fee equal to $300,000 in the event a Sale Process
Termination occurs prior to or on Jan. 18, 2012, or a pro rata
amount ranging from $300,000 to $500,000, as calculated pursuant
to a Sale Process Termination occurring after Jan. 18, 2012, but
prior to March 31, 2012, (which would be reduced by the monthly
advisory fees previously received). The Sale Process Termination
Fee would be paid in two installments consisting of (i) 80% of
such Sale Process Termination Fee upon the earlier of a closing or
30 days from the Sale Process Termination and (ii) the remaining
20% of such Sale Process Termination Fee upon a closing. In the
event the Debtors elect to pursue the entry of sale procedures or
revive any aspect of the 363 sale marketing process after a Sale
Process Termination, Raymond James would be entitled to a Business
Combination Transaction Fee. In the event a Sale Process
Termination occurs after a portion of the Company has already been
sold, and a Business Combination Transaction Fee has already been
earned under section 2(c) above for that partial sale, Raymond
James would credit such prior-earned Business Combination
Transaction Fee against any related fee due under this section
2(d) for the subsequent Sale Process Termination (provided that
such credited fee earned under section 2(c) would not exceed the
amount due under this section 2(d)).
e) Testimony Fee -- In the event that any professional employed
by Raymond James is requested to provide testimony, whether at
depositions, hearings, or trial, Raymond James would provide up to
two days of Testimony, including preparation for and traveling to
such Testimony. Any additional time expended by Raymond James in
traveling to, preparing for, and providing the Testimony would be
charged separately at $900 per hour per professional.
f) Fee for Additional Services -- In the event the Debtors
request that Raymond James provide services in addition to those
outlined above, and subject to any required approval of the
Bankruptcy Court, the Debtors and Raymond James would negotiate in
good faith to agree on reasonable compensation to Raymond James
for those additional services (whether as a monthly fee, success
fee, or otherwise), which would reflect the customary investment
banking fees for institutions of Raymond James' stature for
similar services.
The Debtors would also indemnify Raymond James and each of its
directors, officers, agents, employees, and controlling persons in
accordance with the indemnification provisions set forth in the
Engagement Letter.
To the best of the Debtors' knowledge, Raymond James is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
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. SP Newsprint Co., LLC, disclosed
$317,992,392 in assets and $322,674,963 in liabilities as of the
Chapter 11 filing. The petitions were signed by Edward D.
Sherrick, executive vice president and chief financial officer.
The Official Committee of Unsecured Creditors is represented by
Lowenstein Sandler PC. Ashby & Geddes, P.A., serves as its
Delaware counsel, and BDO Consulting serves as its financial
advisor.
SP NEWSPRINT: Wants Until June 12 to Decide on Property Leases
--------------------------------------------------------------
SP Newsprint Holdings LLC, et al., ask the U.S. Bankruptcy Court
for the District of Delaware to extend their period to assume or
to reject non-residential real property leases until June 12,
2012.
The Debtors' initial period to assume or to reject the leases is
scheduled to expire on March 14.
The Debtors explain that they are starting to market their assets
to potential purchasers. Although no one lease is the Debtors'
primary asset, the SP Leases as a whole are important to the
Debtors' value as a going concern, and the Debtors expect that
potential buyers will have varying opinions regarding the SP
Leases, and while some potential buyers may wish to acquire some
or all of the SP Leases, others may have different intentions.
The Debtors submit that their ability to assume or to reject the
SP Leases will have a material impact on any potential bidder's
valuation of the Debtors' assets, and accordingly, the Debtors
believe that assumption or rejection at this time is premature and
would be detrimental to their 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. SP Newsprint Co., LLC, disclosed
$317,992,392 in assets and $322,674,963 in liabilities as of the
Chapter 11 filing. The petitions were signed by Edward D.
Sherrick, executive vice president and chief financial officer.
The Official Committee of Unsecured Creditors is represented by
Lowenstein Sandler PC. Ashby & Geddes, P.A., serves as its
Delaware counsel, and BDO Consulting serves as its financial
advisor.
SOLYNDRA LLC: Republicans Want DOJ to Take Action on Firm
---------------------------------------------------------
Roxanne Palmer at Bankruptcy Law360 reports that two dozen
Republican lawmakers urged U.S. Attorney General Eric Holder on
Friday to intervene in the ongoing legal battle over Solyndra LLC,
the recipient of a controversial $535 million government-backed
loan.
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.
SPLIT YIELD: DBRS Cuts Rating on Class I Preferred Shares to 'D'
----------------------------------------------------------------
DBRS has downgraded the rating of the 5.5% Class I Cumulative
Preferred Shares (the Class I Preferred Shares) issued by Split
Yield Corporation (the Company) from Pfd-5 to D and confirmed the
rating of the 7.0% Class II Cumulative Preferred Shares (the Class
II Preferred Shares) issued by the Company at D.
On December 6, 2011, the Company announced that all of its
outstanding Class I and Class II Preferred Shares would be
redeemed as scheduled on February 1, 2012 (the Redemption Date),
in accordance with the redemption provisions of the shares.
Quadravest Capital Management, manager of the Company, began
liquidating the portfolio during the latter half of January 2012
in preparation for the final redemption.
On February 1, 2012, all outstanding Class I and Class II
Preferred Shares were redeemed. The final redemption prices were
$19.00 and $0.005 for the Class I and II Preferred Shares,
respectively, which were less than the issue prices of the Class I
and Class II Preferred Shares. As a result, the holders of the
Class I and Class II Preferred Shares suffered a loss on their
principals.
SPRINGLEAF FINANCE: S&P Lowers Issuer Credit Rating to 'CCC'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its issuer credit
rating on Springleaf Finance Corp. and its issue credit rating on
the company's senior unsecured debt to 'CCC' from 'B'. Standard &
Poor's also said it lowered its issue credit ratings on
Springfield's senior secured debt to 'CCC+' from 'B+' and on the
company's preferred debt to 'CC' from 'CCC-'. The outlook on
Springleaf's issuer credit rating is negative.
"Springleaf's announcement that it will shut down about 60
branches and stop lending in 14 states highlights the operating,
funding, and liquidity challenges that the firm faces as it works
to pay down the $2 billion of debt coming due in 2012 and to
establish a stable long-term funding strategy. The downgrade also
reflects the company's poor earnings, exposure to weak residential
markets and uncertainty about its ability to refinance debt or
securitize assets over the coming year. We believe that should its
funding or securitization options become unavailable, the company
will not have enough liquidity to survive 2012, and in that case a
distressed debt exchange would be likely. The company has retained
financial advisors to assess its options," S&P said.
"Springleaf's profitability is strained," said Standard & Poor's
credit analyst Jeffrey Zaun. "Although new originations have been
largely non-real-estate related, Springleaf's largest portfolio
exposure is to the troubled housing market. On the basis of
purchase accounting adopted because of Fortress Investment Group's
acquisition of the firm, Springleaf suffered pretax losses of $244
million through the first three quarters of 2011. We expect losses
to continue at least through the second half of 2012. Even if
Springleaf is able to fund its operations through 2012, the firm
faces significant debt maturities in each of the next two years."
"The negative outlook reflects our view that if securitizations or
other funding options prove difficult in 2012, then the firm could
come under significant liquidity pressure," said Mr. Zaun. "We
believe that Springleaf's current sources of liquidity should be
sufficient through the first half of 2012. But funding stress
could pressure management to enter a debt exchange, which we would
likely view as distressed."
"We could downgrade Springleaf if weakened repayments or market
disruptions make such a distressed exchange more likely. If
management were to enter into a debt exchange that we viewed as
distressed, we would lower the issuer credit rating to 'SD'
(selective default). If management can demonstrate liquidity by
obtaining secured debt against its non-real-estate loans, and
return the firm to a modicum of profitability, we could revise the
outlook to stable," S&P said.
SUBEX LTD: To Seek Bond Maturity Extension
------------------------------------------
Dow Jones' DBR Small Cap reports that Subex Ltd. said it is
seeking to extend the maturity date of its outstanding foreign
currency bonds by four months to July 9, as the software company
needs more time to execute a restructuring plan that it is
exploring.
TBS INTERNATIONAL: Files for Chapter 11 With Prepack Plan
---------------------------------------------------------
TBS International Plc, a Dublin-based owner of 41 vessels, filed a
prepackaged Chapter 11 petition along with affiliates on Feb. 6 in
White Plains, New York (Bankr. S.D.N.Y. Lead Case No. 12-22224)
with a prepackaged plan.
The Debtors are asking the court to promptly hold a hearing on
March 12 for confirmation of the plan. At the hearing, the Court
will also consider the adequacy of the Disclosure Statement.
Prepetition, the Company and its subsidiaries negotiated and
received affirmative votes from all voting lenders.
TBS disclosed $143 million in assets and $220 million in debt.
Total bank debt is $174.6 million and is owed to four lending
groups:
No. of Vessels Amounts
Credit Facility Collateralizing Outstanding
--------------- --------------- -----------
Bank of America 28 $125.6 million
DVB 7 $25.9 million
Credit Suisse 2 $18.2 million
AIG 2 $4.9 million
The Debtors formerly owned six subsidiaries that each owned one
vessel financed by the Royal Bank of Scotland and pledged to
secure the obligations. Pursuant to a settlement, the subsidiaries
-- and, accordingly, the vessels owned by them -- were transferred
to Pine Shipping, an entity designated by RBS and not affiliated
with the Debtors, in exchange for, among other things, the global
release of all claims by RBS.
Unsecured debt, totaling $38 million, will be paid in full under
the Plan.
The Plan implements, in effect, a silo approach with respect to
the Debtors' post-Effective Date secured obligations. Under the
Plan:
(1) Amounts owed pursuant to the Existing BOA Credit Agreement
and the Existing DVB Credit Agreement will be restructured into a
new term loan with two tranches -- the "New Senior Secured Cash
Pay Loan Tranche," which is a second lien term loan in the
amount of $30 million with a maturity date of September 30, 2016;
and the "New Senior Secured PIK Loan Tranche," which is a second
lien payment-in-kind/toggle term loan in the amount of
approximately $121,000,000 (which includes accrued interest and
other costs) that has a maturity date of June 30, 2017; in
addition, BOA Syndicate Lenders and DVB Syndicate Lenders will
receive all of the New Class A Common Stock, which will
represent 90% of the equity interests in New TBS Parent;
(2) Amounts owed pursuant to the Existing Credit Suisse Credit
Agreement will be restructured into the "Amended and Restated
Credit Suisse Credit Agreement," which is a term loan in the
amount of approximately $18.2 million (plus interest and costs)
with an interest rate of LIBOR plus 300 basis points and a
maturity date of June 30, 2017, pursuant to which Credit Suisse
will receive the net cash flows and net sale proceeds
generated by the vessels that secure the Existing Credit Suisse
Credit Agreement in satisfaction of the amounts owed under the
Amended and Restated Credit Suisse Credit Agreement; and
(3) Amounts owed pursuant to the Existing AIG Credit Agreement
will be restructured into the "Amended and Restated AIG Credit
Agreement," which is a term loan in the amount of approximately
$4.9 million that will mature at least 180 days after the
Effective Date, pursuant to which AIG will receive the net cash
flows and the net sale proceeds generated by the vessels that
secure the Existing AIG Credit Agreement in satisfaction of the
amounts owed under the Amended and Restated AIG Credit Agreement;
and
(4) The Debtors will assume the RBS Settlement Agreement during
the Chapter 11 Cases and fully perform any remaining obligations
in connection therewith.
Road to Bankruptcy
Founded in 1993, TBS provides ocean transportation services that
offer worldwide shipping solutions to a diverse client base of
industrial shippers. It targets niche markets, including trade
routes, ports, and cargoes that are not effectively served by
container and large dry bulk vessel operators. The vessels are
owned or leased through 41 different Marshall Islands Debtor
subsidiaries.
As part of their efforts to deleverage their businesses and
modernize their fleets, recently, the Debtors sold a handful of
older vessels. The Debtors sold 5 vessels from October to January
and used the sale proceeds to repay a portion of their debt
obligations.
The Debtors have plans, as part of their fleet refurbishment
program, to sell additional vessels. The Debtors may sell
additional vessels during the Chapter 11 period.
TBS blamed bankruptcy on the oversupply of vessels and the
resulting collapse in freight rates. Factors that affected
revenue include the overall slowdown of the global economy, the
attendant downward pressures upon freight rates, increased fuel
costs, industry over-capacity, and the lack of liquidity in the
credit markets.
TBS went through a prepackaged Chapter 11 reorganization in the
year 2000, with the plan confirmed in October following the
bankruptcy filing in July.
Business as Usual
The Company said in a statement is taking actions necessary to
ensure that the chapter 11 filing does not affect the Company's
operations, its vendors or customers. The Company's operations
will continue as usual during the chapter 11 process, which is
expected to be concluded within 60 days. The Company has sought
approval to pay all foreign and critical vendors in the ordinary
course, as well as customary relief to continue its wage and
benefit programs for its employees.
Pursuant to the Plan, ownership of the Company's operating
subsidiaries will be transferred to a newly-formed entity that
will be owned principally by the lenders. Old equity holders will
receive no distributions, and the Company will cease to be a
reporting public company.
$42.8 Million DIP Financing
The Debtors have arranged a $42.8 million loan to fund operations
during the Chapter 11 cases. This financing is provided entirely
by the Company's existing lenders, including Bank of America, DVB
Bank, Toronto Dominion Bank and Credit Suisse.
The principal debtor in possession financing facility for
$41.3 million, will be extended by certain lenders that are party
to the Existing BOA Credit Agreement or the Existing DVB Credit
Agreement. The other debtor in possession financing facility, for
$1.5 million, will be extended by Credit Suisse.
Under the Plan, the DIP financing claims and pre-petition secured
debt are to be restructured so as to provide new liquidity,
extended maturity dates and other terms sufficient to permit the
new entity's successful emergence from Chapter 11 and future
viability.
"We are very pleased that our banks are supportive of the steps we
have taken to improve our balance sheet and, through it, the long-
term health of our Company," said Joseph E. Royce, Chairman, Chief
Executive Officer and President. "As a result of the
restructuring, we should be positioned to be a financially sound
competitor in our global markets. We have taken steps to diminish
the impact of this process on our vendors, customers and
employees, and we intend to move forward as expeditiously as
possible to complete the restructuring. More importantly, I want
to emphasize that this agreement ensures that our vessels will not
be arrested and cargo will get to its destination as scheduled."
About TBS International plc
Dublin, Ireland-based TBS International plc (NASDAQ: TBSI)
-- http://www.tbsship.com/-- provides worldwide shipping
solutions to a diverse client base of industrial shippers through
its Five Star Service: ocean transportation, projects,
operations, port services and strategic planning. The TBS
shipping network operates liner, parcel and dry bulk services,
supported by a fleet of multipurpose tweendeckers and
handysize/handymax bulk carriers, including specialized heavy-
lift vessels and newbuild tonnage. TBS has developed its
franchise around key trade routes between Latin America and
China, Japan and South Korea, as well as select ports in North
America, Africa, the Caribbean and the Middle East.
The Company reported a net loss of US$247.76 million on US$411.83
million of total revenue for the year ended Dec. 31, 2010,
compared with a net loss of US$67.04 million on US$302.51 million
of total revenue during the prior year.
The Company also reported a net loss of US$55.16 million on
US$282.64 million of total revenue for the nine months ended
Sept. 30, 2011, compared with a net loss of US$29.21 million on
US$311.06 million of total revenue for the same period a year
ago.
TBS INTERNATIONAL: Case Summary & 50 Largest Unsecured Creditors
----------------------------------------------------------------
Lead
Debtor: TBS Shipping Services Inc.
612 East Grassy Sprain Road
Yonkers, NY 10710
Bankruptcy Case No.: 12-22224
Affiliates that simultaneously filed Chapter 11 petitions:
Debtor Case No.
------ -------
TBS International plc 12-22225
TBS International Limited 12-22226
Chester Shipping Corp. 12-22235
Compass Chartering Corp. 12-22236
Cumberland Navigation Corp. 12-22237
Darby Navigation Corp. 12-22238
Dover Maritime Corp. 12-22239
Elrod Shipping Corp. 12-22240
Exeter Shipping Corp. 12-22241
Fairfax Shipping Corp. 12-22242
Frankfort Maritime Corp. 12-22243
Glenwood Maritime Corp. 12-22244
Hansen Shipping Corp. 12-22245
Hartley Navigation Corp. 12-22246
Henley Maritime Corp. 12-22247
Hudson Maritime Corp. 12-22248
Jessup Maritime Corp. 12-22249
Leaf Shipping Corp. 12-22250
Montrose Maritime Corp. 12-22251
Oldcastle Shipping Corp. 12-22252
Quentin Navigation Corp. 12-22253
Rector Shipping Corp. 12-22254
Remsen Navigation Corp. 12-22255
Roymar Ship Management, Inc. 12-22256
Sheffield Maritime Corp. 12-22257
Sherman Maritime Corp. 12-22258
Sterling Shipping Corp. 12-22259
Stratford Shipping Corp. 12-22260
Vedado Maritime Corp. 12-22261
Vernon Maritime Corp. 12-22262
Windsor Maritime Corp. 12-22263
Westbrook Holdings Ltd. 12-22264
Transworld Cargo Carriers, S.A. 12-22265
Mercury Marine Ltd. 12-22266
TBS Worldwide Services Inc. 12-22267
Pacific Rim Shipping Corp. 12-22268
TBS African Ventures Limited 12-22269
TBS Do Sul Ltd. 12-22270
TBS Eurolines, Ltd. 12-22271
TBS Latin America Liner, Ltd. 12-22272
TBS Middle East Carriers, Ltd. 12-22273
TBS North American Liner, Ltd. 12-22274
TBS Pacific Liner, Ltd. 12-22276
TBS Mining Limited 12-22277
TBS Warehouse & Distribution Group Ltd. 12-22278
TBS Warehouse & Equipment Holdings Ltd. 12-22279
TBS Shipping Houston, Inc. 12-22280
TBSI New Ship Development Corp. 12-22281
TBS U.S. Enterprises LLC 12-22282
TBS Energy Logistics LP 12-22283
Bedford Maritime Corp. 12-22284
Brighton Maritime Corp. 12-22285
Hari Maritime Corp. 12-22286
Prospect Navigation Corp. 12-22287
Hancock Navigation Corp. 12-22288
Columbus Maritime Corp. 12-22289
Whitehall Marine Transport Corp. 12-22290
Claremont Shipping Corp. 12-22291
Yorkshire Shipping Corp. 12-22292
Amoros Maritime Corp. 12-22293
Type of Business: TBS Shipping Services Inc. provides commercial
cargo transportation, handling, and operations
services to vessel owners and operators.
Web site: http://www.tbsship.com/
Chapter 11 Petition Date: Feb. 6, 2012
Court: U.S. Bankruptcy Court
Southern District of New York
Judge: Judge Robert D. Drain
Debtors'
Counsel : Michael A. Rosenthal, Esq.
GIBSON, DUNN & CRUTCHER LLP
200 Park Avenue
47th Floor
New York, NY 10166
Tel: (212) 351-4000
Fax: (212) 351-4035
E-mail: mrosenthal@gibsondunn.com
Debtors'
Investment
Banker : LAZARD FRERES & CO. LLC
Debtors'
Financial
Advisor : ALIXPARTNERS, LLP
Debtors'
Claims and
Noticing
Agent : GARDEN CITY GROUP
Estimated Assets: $100 million to $500 million
Estimated Debts : $100 million to $500 million
The petition was signed by Ferdinand V. Lepere, executive vice
president and chief financial officer.
TBS Shipping Services Inc.'s List of Its 50 Largest Unsecured
Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
CHENGXI SHIPYARD Trade Debt $1,612,498
NO.1 HENGSHAN RD
JIANGSU, CHINA
PHONE: 0086-510-610-9653
ABOITIZ JEBSEN BULK Trade Debt $1,410,630
TRANSPORT CORP.
2/F HARBOUR CENTER II
RAILRD & CHICAGO STS.
PORT AREA
MANILA, PHILIPPINES
PHONE: 63-2-527-99-80
LLOYD'S REGISTER NORTH Trade Debt $610,293
AMERICA, INC
P.O. BOX 201648
HOUSTON, TX 77216-1648
SECURE MARITIME SERVICES Trade Debt $549,243
LLC
OFFICE 419, CITY BAY
BUSINESS CENTRE, ABU HAIL
DUBAI PO BOX 502090
TEL: +971 4 23 999 39,
FAX: +971 4 25 266 76
EMAIL: ATN@EMIRATES.NET.AE
INTERNATIONAL PAINT Trade Debt $506,717
P O BOX 330
PALOS PARK, IL 60464
C.F. SHARP BAREBOAT CORP Trade Debt $411,872
290-292 CASA ROCHA
BLDG, GENERAL LUNA ST
MANILA, PHILLIPINES
PHONE: 63-2-527-5456
BARWIL UNITOR SHIPS Trade Debt $275,082
SERVICE
P.O. BOX 951756
DALLAS, TX 75395-1756
PHONE: 201-433-9111
WARTSILA NORTH AMERICA Trade Debt $272,803
INC
16330 AIR CENTER BLVD
HOUSTON, TX 77032
INTERMODAL SHIPPING Trade Debt $270,360
G/F CASA MARITIMA
651 GEN. LUNA ST
INTRAMUROS
MANILA, PHILIPPINES
PHONE: 632-2-527-76-21
MERCHANT SHIPPING Trade Debt $268,231
1ST FL, SHARAF BLDG
P.O. BOX 2939
KARAMA, DUBAI, UAE
PHONE: 011-971-4-352-6333
KRISTENSONS-PETROLEUM INC. Trade Debt $256,897
128 BRD ST, 2ND FL
RED BANK, NJ 07701
PHONE: 732-219-7900
TURBO DESIEL ENGINEERING Trade Debt $254,863
CORP
ROOM 1405, LONGZHU PLAZA
2123 PUDONG AVE
SHANGHAI, CHINA
PHONE: 86-21-6855-5768
IHI MARINE CO. LTD. Trade Debt $221,069
GOLTEN'S KOREA Trade Debt $206,962
GUGAO MARINE SERVICE CO Trade Debt $199,204
CLIPPEROIL MARINE FUELS Trade Debt $174,739
LATIN AMERICAN SHIPPING Trade Debt $162,183
AGENCIA
FUJI TRADING CO LTD.-KOBE Trade Debt $159,976
TELEMAR USA LLC Trade Debt $151,575
CROSS PACIFIC SCL Trade Debt $151,537
TOTAL LUBRIFIANTS Trade Debt $149,003
BOYD STEAMSHIP CORP Trade Debt $147,875
NAVIERAS Y CONSIGNACIONS Trade Debt $147,362
SEVEN SEAS SHIPCHANDLERS Trade Debt $147,232
LLC
BONGAM INTERNATIONAL CO Trade Debt $142,077
LTD
JIANGYIN GOWIN MARINE & Trade Debt $140,133
TRADING
MAYLON PORTS & MARINE Trade Debt $125,513
SERVICES LTD.
PANASIA MARINE (TANKERS) Trade Debt $121,752
PTE
ALPHA CHARTERING Trade Debt $120,641
LLOYD SUDAMERICANO CA Trade Debt $115,129
TOP GENIUS MARINE Trade Debt $114,664
EQUIPMENTS CO.
NATIONAL SHIPPING & MARINE Trade Debt $111,462
SERVICES
AGENCIAS MARITIMAS Trade Debt $111,166
AGENTAL LTDA
VIKING LIFE-SAVING Trade Debt $110,183
EQUIPMENT
MAN DIESEL SA-FRANCE Trade Debt $107,015
CONHIRA CO LTD Trade Debt $102,756
KONGS BERG MARITIME Trade Debt $102,000
EUROCHART Trade Debt $100,329
REVELLE SHIPPING AGENCY Trade Debt $91,418
INC
AICOM LTD Trade Debt $86,138
LOGISTEC STEVEDORING INC Trade Debt $84,834
GOLDEN SUN MARINE SERVICE Trade Debt $81,609
NANTONG
GANGLONG MARINE SERVICES Trade Debt $79,507
BROKMAR Trade Debt $79,031
VAN WEST-HOLLAND B.V. Trade Debt $76,940
BBT TRADESHIPS FTL Trade Debt $75,381
RG SHIPPING INTERNATIONAL Trade Debt $72,862
NATIONAL SHIPPING, DUBAI Trade Debt $71,683
JOACHIM GRIEG CO. Trade Debt $71,309
SPI MARINE (ASIA) PTE Trade Debt $71,261
TEMPLO MARANATHA: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Templo Maranatha, Inc.
3526 W. Polk Street
Phoenix, AZ 85009
Bankruptcy Case No.: 12-01862
Chapter 11 Petition Date: February 1, 2012
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: Randolph J. Haines
Debtor's Counsel: Robert C. Warnicke, Esq.
GORDON SILVER
1 East Washington, Suite 400
Phoenix, AZ 85004
Tel: (602) 256-0400
Fax: (602) 256-0345
E-mail: phxbknotices@gordonsilver.com
Scheduled Assets: $323,331
Scheduled Liabilities: $2,555,397
The Company?s list of its 20 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/azb12-01862.pdf
The petition was signed by Fernando Fernandez, vice president.
VALENTINE CON: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Valentine Con LLC
2273 65th Street
Brooklyn, NY 11204
Bankruptcy Case No.: 12-10357
Chapter 11 Petition Date: January 31, 2012
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Shelley C. Chapman
Debtor's Counsel: Mark A. Frankel, Esq.
BACKENROTH FRANKEL & KRINSKY, LLP
489 Fifth Avenue
New York, NY 10017
Tel: (212) 593-1100
Fax: (212) 644-0544
E-mail: mfrankel@bfklaw.com
Scheduled Assets: $1,139,137
Scheduled Liabilities: $22,334,588
The Company?s list of its 20 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/nysb12-10357.pdf
The petition was signed by David Goldwasser, managing member of GC
Realty Advisors, LLC, member.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Van Cortlandt Village LLC 12-10356 01/31/12
THORNBURG MORTGAGE: Agrees to SEC Order to Deregistered Shares
--------------------------------------------------------------
Maria Chutchian at Bankruptcy Law360 reports that TMST Inc. on
Friday asked a Maryland bankruptcy court to approve a settlement
under which it agreed to a U.S. Securities and Exchange Commission
order revoking its registered securities after three years of
failing to file required financial reports.
TMST, formerly known as Thornburg Mortgage Inc., said in its
motion that agreeing to the order and thereby acknowledging its
failure to comply with reporting requirements under the Securities
Exchange Act is preferable to actually filing the reports because
they are costly, according to Law360.
About Thornburg Mortgage
Based in Santa Fe, New Mexico, Thornburg Mortgage Inc. (NYSE: TMA)
-- http://www.thornburgmortgage.com/-- was a single-family
residential mortgage lender focused principally on prime and
super-prime borrowers seeking jumbo and super-jumbo adjustable
rate mortgages. It originated, acquired, and retained investments
in adjustable and variable rate mortgage assets. Its ARM assets
comprised of purchased ARM assets and ARM loans, including
traditional ARM assets and hybrid ARM assets.
Thornburg Mortgage and its four affiliates filed for Chapter 11
bankruptcy (Bankr. D. Md. Lead Case No. 09-17787) on May 1, 2009.
Thornburg changed its name to TMST, Inc.
Judge Duncan W. Keir is handling the case. David E. Rice, Esq.,
at Venable LLP, in Baltimore, Maryland, served as counsel to
Thornburg Mortgage. Orrick, Herrington & Sutcliffe LLP served as
special counsel. Jim Murray, and David Hilty, at Houlihan Lokey
Howard & Zukin Capital, Inc., served as investment banker and
financial advisor. Protiviti Inc. served as financial advisory
services. KPMG LLP served as the tax consultant. Epiq Systems,
Inc., serves claims and noticing agent. Thornburg disclosed total
assets of $24.4 billion and total debts of $24.7 billion, as of
Jan. 31, 2009.
On Oct. 28, 2009, the Court approved the appointment of Joel I.
Sher as the Chapter 11 Trustee for the Company, TMST Acquisition
Subsidiary, Inc., TMST Home Loans, Inc., and TMST Hedging
Strategies, Inc. He is represented by Shapiro Sher Guinot &
Sandler.
UNITED RETAIL: Taps AlixPartners as Restructuring Advisor
---------------------------------------------------------
United Retail Group Inc. and its debtor-affiliates seek Bankruptcy
Court authority to employ AlixPartners LLP as their restructuring
advisor nunc pro tunc to the Petition Date.
Since November 2011, AlixPartners professionals have worked with
members of the Debtors' senior management, analyzing strategic
alternatives, analyzing and developing cash flow projections and
assisting the Debtors with respect to their efforts to prepare for
a chapter 11 filing.
AlixPartners' hourly rates are:
Managing Directors $815 - $970
Directors $620 ? $760
Vice Presidents $455 ? $555
Associates $305 ? $405
Analysts $270 ? $300
Paraprofessionals $205 ? $225
The parties agreed that AlixPartners' fees will not exceed
$350,000 per month without the prior consent of the Debtors.
AlixPartners received an initial advance retainer on Dec. 19,
2011, totaling $200,000 from the Debtors. During the 90 days
before commencement of the Chapter 11 case, the Debtors paid
AlixPartners a total of $848,840 for providing services to the
Debtors in contemplation of, and in connection with, prepetition
financial activities.
The Engagement Letter also contains standard indemnification
language with respect to AlixPartners' services.
Holly Felder Etlin, a Managing Director of AlixPartners, attests
that AlixPartners is a "disinterested person" within the meaning
of section 101(14) of the Bankruptcy Code, as required by section
327(a) of the Bankruptcy Code; does not hold or represent any
interest adverse to the Debtors' estates; and has no connection to
the Debtors, its creditors or other parties in interest in these
chapter 11 cases.
About United Retail Group
United Retail Group Inc., owner of the Avenue brand of women's
fashion apparel and a subsidiary of Redcats USA, initiated Chapter
11 proceedings (Bankr. S.D.N.Y. Lead Case No. 12-10405) on Feb. 1,
2012, to sell the business to Versa Capital Management for
$83.5 million. United Retail, which filed for Chapter 11 with
affiliates, is pursuing a sale process under Section 363 of the
Bankruptcy Code, under which the sale to Versa Capital will be
subject to higher and better offers at an auction.
The Company's legal advisor is Kirkland & Ellis LLP; its financial
advisor is Peter J. Solomon Company; and Donlin Recano & Company
Inc. is the notice, claims and administrative agent. Versa
Capital's legal advisor is Sullivan & Cromwell LLP.
United Retail has arranged a $40 million Debtor-in-Possession
facility from its existing revolving credit lender, Wells Fargo,
to provide sufficient working capital for Avenue to continue to
operate the business as usual.
Avenue has 433 stores and an e-commerce site --
http://www.avenue.com/. Avenue employs roughly 4,422 employees,
roughly 294 of which are located at Avenue's corporate
headquarters in Rochelle Park, New Jersey or at the Troy
Distribution Facility. The Company disclosed $117.2 million in
assets and $67.3 million in liabilities as of the Chapter 11
filing.
UNITED RETAIL: Hires Kirkland & Ellis as Bankruptcy Counsel
-----------------------------------------------------------
Lawyers at Kirkland & Ellis LLP have been assisting United Retail
Group Inc. since November 2011 in connection with a restructuring.
The Debtors want the firm to continue that representation during
their bankruptcy proceedings, and are asking the Court to approve
the firm's engagement as their Chapter 11 counsel.
On Nov. 18, 2011, the Debtors paid $300,000 to K&E as a retainer.
In addition, on Jan. 17, 2012, the Debtors paid an additional
$200,000 to K&E as a retainer.
Mr. Kieselstein, a partner at Kirkland, attest that K&E is a
"disinterested person" within the meaning of section 101(14) of
the Bankruptcy Code, as required by section 327(a) of the
Bankruptcy Code and does not hold or represent an interest adverse
to the Debtors' estates.
Kirkland's hourly rates are:
Partners $670 - $1,045
Of Counsel $560 - $1,045
Associates $370 - $750
Paraprofessionals $145 - $320
The Kirkland professionals who are expected to have primary
responsibility for providing services to the Debtors and their
hourly rates are:
Marc Kieselstein, P.C. $995 per hour
Nicole L. Greenblatt $795 per hour
Benjamin J. Steele $625 per hour
About United Retail Group
United Retail Group Inc., owner of the Avenue brand of women's
fashion apparel and a subsidiary of Redcats USA, initiated Chapter
11 proceedings (Bankr. S.D.N.Y. Lead Case No. 12-10405) on Feb. 1,
2012, to sell the business to Versa Capital Management for
$83.5 million. United Retail, which filed for Chapter 11 with
affiliates, is pursuing a sale process under Section 363 of the
Bankruptcy Code, under which the sale to Versa Capital will be
subject to higher and better offers at an auction.
The Company's financial advisor is Peter J. Solomon Company;
AlixPartners LLP is the restructuring advisor; and Donlin Recano &
Company Inc. is the notice, claims and administrative agent.
Versa Capital's legal advisor is Sullivan & Cromwell LLP.
United Retail has arranged a $40 million Debtor-in-Possession
facility from its existing revolving credit lender, Wells Fargo,
to provide sufficient working capital for Avenue to continue to
operate the business as usual.
Avenue has 433 stores and an e-commerce site --
http://www.avenue.com/. Avenue employs roughly 4,422 employees,
roughly 294 of which are located at Avenue's corporate
headquarters in Rochelle Park, New Jersey or at the Troy
Distribution Facility. The Company disclosed $117.2 million in
assets and $67.3 million in liabilities as of the Chapter 11
filing.
UNITED RETAIL: Donlin Recono to Serve as Claims & Admin. Agent
--------------------------------------------------------------
United Retail Group Inc. have filed separate applications before
the Bankruptcy Court seeking to employ Donlin Recano & Company
Inc. as:
-- notice and claims agent pursuant to section 156(c) of the
Judicial Code; and
-- administrative agent to assist the Debtors in performing
duties that fall outstide the scope of 28 U.S.C. Sec.
156(c).
The Debtors noted that they have roughly 10,000 potential
creditors. Although the Office of the Clerk of the United States
Bankruptcy Court for the Southern District of New York ordinarily
would serve notice on the Debtors' creditors and other parties in
interest and administer claims filed against the Debtors, the
Clerk's Office may not have the resources to undertake such tasks
with respect to these chapter 11 cases in light of the magnitude
of the Debtors' creditor body and the tight timelines that
frequently arise in complex chapter 11 bankruptcy cases.
The Debtors said DRC's retention is the most effective and
efficient manner of noticing the thousands of creditors and other
parties in interest of the commencement of and other developments
in the chapter 11 cases.
As administrative agent, DRC will assist the Debtors with, among
other things, solicitation, balloting and tabulation and
calculation of votes, as well as preparing any appropriate
reports, as required in furtherance of confirmation of plan(s) of
reorganization; and gather data in conjunction with the
preparation, and assist with the preparation, of the Debtors'
schedules of assets and liabilities and statements of financial
affairs.
Before the Petition Date, the Debtors provided DRC a $20,000
retainer in addition to $45,000 on account of prepetition fees and
expenses. DRC seeks to first apply the retainer to all
prepetition invoices, thereafter, to have the retainer replenished
to the original retainer amount, and thereafter, to hold the
retainer under the parties' Claims Administration Agreement during
the chapter 11 cases as security for the payment of fees and
expenses under the Claims Administration Agreement.
Colleen McCormick -- cmccormick@donlinrecano.com -- DRC's Chief
Operating Officer, attests that DRC neither holds nor represents
an interest adverse to the Debtors' estates, and has no connection
to the Debtors, their creditors, or their related parties.
About United Retail Group
United Retail Group Inc., owner of the Avenue brand of women's
fashion apparel and a subsidiary of Redcats USA, initiated Chapter
11 proceedings (Bankr. S.D.N.Y. Lead Case No. 12-10405) on Feb. 1,
2012, to sell the business to Versa Capital Management for
$83.5 million. United Retail, which filed for Chapter 11 with
affiliates, is pursuing a sale process under Section 363 of the
Bankruptcy Code, under which the sale to Versa Capital will be
subject to higher and better offers at an auction.
The Company's legal advisor is Kirkland & Ellis LLP; its financial
advisor is Peter J. Solomon Company; and AlixPartners LLP is the
restructuring advisor. Versa Capital's legal advisor is Sullivan
& Cromwell LLP.
United Retail has arranged a $40 million Debtor-in-Possession
facility from its existing revolving credit lender, Wells Fargo,
to provide sufficient working capital for Avenue to continue to
operate the business as usual.
Avenue has 433 stores and an e-commerce site --
http://www.avenue.com/. Avenue employs roughly 4,422 employees,
roughly 294 of which are located at Avenue's corporate
headquarters in Rochelle Park, New Jersey or at the Troy
Distribution Facility. The Company disclosed $117.2 million in
assets and $67.3 million in liabilities as of the Chapter 11
filing.
UNITED RETAIL: Peter J. Solomon Hired as Investment Banker
----------------------------------------------------------
United Retail Group, Inc. and its debtor affiliates are bringing
in Peter J. Solomon Company L.P. and its affiliate Peter J.
Solomon Securities Company LLC as their financial advisor and
investment banker.
The firm has provided services to the Debtors since November 2011.
The Debtors propose to pay the firm:
(a) a $150,000 financial advisory fee;
(b) a $150,000 monthly financial advisory fee;
(c) if at any time during the term of the engagement, or
within one year following the firm's termination, (i) a
restructuring, sale or financing, among others,
transaction is consummated or (ii)(A) an agreement in
principle or definitive agreement to effect a Transaction
is entered into and (B) concurrently therewith or at any
time thereafter including following the expiration of the
Fee Period any Transaction is consummated, PJSC will be
entitled to receive a single transaction fee --
contingent upon the consummation of a Transaction and
payable at the closing -- which will be equal to
$1,000,000; and
(d) if at any time during the Fee Period, the Debtors
consummate any Financing, the Debtors will pay to PJSC a
financing fee equal to 1.00% of the gross proceeds of any
such Financing.
The firm's Engagement Letter also provide indemnification
provisions.
PJSC is a strategic and financial advisor to retailing companies
and has advised many retailers in strategic acquisitions or
divestitures, including, among others: sale of J. McLaughlin to
J.H. Partners (2011), sale of Garden Ridge to AEA Investors
(2011), Chico's FAS Inc.'s acquisition of Boston Proper, Inc.
(2011), Phillips-Van Heusen's acquisition of Tommy Hilfiger B.V.
(2010), Walgreen Co.'s acquisition of Duane Reade Holdings, Inc.
(2010), sale of Tween Brands, Inc. to Dress Barn, Inc., the
restructuring transaction in In re Eddie Bauer Holdings, Inc.,
Case No. 09-12099 (Bankr. D. Del. July 7, 2009) and the sale of
Charlotte Russe Holding, Inc. to Advent International (2009).
Durc Savini -- dsavini@pjsolomon.com -- a Managing Director of
Peter J. Solomon Company, attests that the firm neither holds nor
represents an interest adverse to the Debtors' estates, and has no
connection to the Debtors, their creditors, or their related
parties.
About United Retail Group
United Retail Group Inc., owner of the Avenue brand of women's
fashion apparel and a subsidiary of Redcats USA, initiated Chapter
11 proceedings (Bankr. S.D.N.Y. Lead Case No. 12-10405) on Feb. 1,
2012, to sell the business to Versa Capital Management for
$83.5 million. United Retail, which filed for Chapter 11 with
affiliates, is pursuing a sale process under Section 363 of the
Bankruptcy Code, under which the sale to Versa Capital will be
subject to higher and better offers at an auction.
The Company's legal advisor is Kirkland & Ellis LLP; AlixPartners
LLP is the restructuring advisor; and Donlin Recano & Company Inc.
is the notice, claims and administrative agent. Versa Capital's
legal advisor is Sullivan & Cromwell LLP.
United Retail has arranged a $40 million Debtor-in-Possession
facility from its existing revolving credit lender, Wells Fargo,
to provide sufficient working capital for Avenue to continue to
operate the business as usual.
Avenue has 433 stores and an e-commerce site --
http://www.avenue.com/. Avenue employs roughly 4,422 employees,
roughly 294 of which are located at Avenue's corporate
headquarters in Rochelle Park, New Jersey or at the Troy
Distribution Facility. The Company disclosed $117.2 million in
assets and $67.3 million in liabilities as of the Chapter 11
filing.
VAN CORTLANDT: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Van Cortlandt Village LLC
2273 65th Street
Brooklyn, NY 11204
Bankruptcy Case No.: 12-10356
Affiliates that simultaneously filed Chapter 11 petitions:
Debtor Case No.
------ --------
Valentine Con LLC 12-10357
146 Realty LLC 12-10358
DLR & CO LLC 12-10359
Jackson Avenue Con LLC 12-10360
Legget Avenue Con LLC 12-10361
Ocean Construction Con LLC 12-10362
Woodycrest Con LLC 12-10363
Chapter 11 Petition Date: January 31, 2012
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Shelley C. Chapman
Debtor's Counsel: Mark A. Frankel, Esq.
BACKENROTH FRANKEL & KRINSKY, LLP
489 Fifth Avenue
New York, NY 10017
Tel: (212) 593-1100
Fax: (212) 644-0544
E-mail: mfrankel@bfklaw.com
Lead Debtor's
Scheduled Assets: $2,280,033
Lead Debtor's
Scheduled Liabilities: $22,334,588
The Lead Debtor's list of its 20 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/nysb12-10356.pdf
The petition was signed by David Goldwasser, managing member of GC
Realty Advisors, LLC, member.
Affiliate that previously filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
2271 Associates, Inc. 11-23351 07/08/11
WALLDESIGN INC: Wants to Hire BSW & Assoc. as Financial Advisor
---------------------------------------------------------------
Walldesign, Inc., seeks permission from the Bankruptcy Court to
employ BSW & Associates as its financial advisor. The Debtor
seeks to employ BSW to: (a) prepare financial forecasts,
bankruptcy schedules, monthly operating reports, (b) develop
bankruptcy emergency strategies, (c) provide restructuring
consultation, and (d) interface with lenders and other interested
parties.
BSW's current hourly rates are:
Professional Hourly Rate
------------ -----------
Brian Weiss $295
Chad Kurtz $255
Allan Viernes $195
Paraprofessionals $125
The Debtor will reimburse BSW for all expenses incurred including
airfare, telephone calls, printing, photocopying and messenger
fees.
Prior to the Petition Date, BSW received a retainer of $30,000.
To the best of the Debtor's knowledge, BSW is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
About Walldesign
Walldesign Inc., incorporated in 1983, has been in the business of
installing drywall, insulation, plaster and providing related
services to single and multi-family construction projects
throughout California, Nevada and Arizona for over 20 years.
Customers include some of the largest homebuilders in the United
States, such as Pulte, DR Horton, K. Hovnanian, Toll Brothers and
KB Homes. In fiscal 2011, Walldesign generated more than $43.5
million in annual revenues.
Walldesign, based in Newport Beach, California, said the global
credit crisis that occurred in the third quarter of 2008 had a
severe negative impact on its business: capital for construction
projects dried up, buyers vacated the market for new homes and
profit margins on new jobs eroded. Although it has significantly
downsized its operations in an effort to remain profitable in the
recessionary conditions, cash flow problems arose during this
process. These problems slowed payments to vendors, precipitating
collection lawsuits forcing it to seek Chapter 11 protection
(Bankr. C.D. Calif. Case No. 12-10105) on Jan. 4, 2012.
Judge Robert N. Kwan presides over the case. Marc J. Winthrop,
Esq., Sean A. O'Keefe, Esq., and Jeannie Kim, Esq., at Winthrop
Couchot, serve as the Debtor's counsel. In its petition, the
Debtor estimated $10 million to $50 million in assets and debts.
The petition was signed by Michael Bello, chief executive officer.
WASHINGTON MUTUAL: Oregon Objects to Seventh Amended Joint Plan
---------------------------------------------------------------
BankruptcyData.com reports that the Oregon Department of Revenue
(DOR) filed with the U.S. Bankruptcy Court an objection to
Washington Mutual's Seventh Amended Joint Plan. The objection
explains the Oregon DOR's current claim against the Company is for
a priority amount of $27,298,903.58 and an unsecured non-priority
claim for $2,082,819.33, secured by possible refunds of
$1,423,462.76.
The Oregon DOR asserts that it objects for two reasons: "(i) the
Plan's release provisions appear to improperly release nondebtors,
and (ii) the Plan improperly allows payment of Allowed Priority
Tax Claims after the Effective Date without interest. . .
Confirmation must be denied until the Plan complies with Section
524(e) and 1129(a)(9)(C)."
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- was the holding company for Washington
Mutual Bank as well as numerous non-bank subsidiaries.
Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns
100% of the equity in WMI Investment. When WaMu filed for
protection from its creditors, it disclosed assets of
$32,896,605,516 and debts of $8,167,022,695. WMI Investment
estimated assets of $500 million to $1 billion with zero debts.
WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal &
Manges LLP in New York City; Mark D. Collins, Esq., at Richards,
Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari,
Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver &
Hedges, LLP. The Debtor tapped Valuation Research Corporation as
valuation service provider for certain assets.
Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New
York, and David B. Stratton, Esq., at Pepper Hamilton LLP in
Wilmington, Del., represent the Official Committee of Unsecured
Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and
William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the
Equity Committee. The official committee of equity security
holders also tapped BDO USA as its tax advisor. Stacey R.
Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis,
Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent
JPMorgan Chase, which acquired the WaMu bank unit's assets prior
to the Petition Date.
On Jan. 7, 2011, the Bankruptcy Court entered a 107-page opinion
determining that the global settlement agreement, among certain
parties including WMI, the Federal Deposit Insurance Corporation
and JPMorgan, upon which the Plan is premised, and the
transactions contemplated therein, are fair, reasonable, and in
the best interests of WMI. However, the Opinion and related order
denied confirmation, but suggested certain modifications to the
Company's Sixth Amended Joint Plan of Affiliated Debtors that, if
made, would facilitate confirmation.
WaMu filed a Modified Sixth Amended Joint Plan and a related
Supplemental Disclosure Statement, which it believes would address
the Bankruptcy Court's concerns.
On Sept. 13, 2011, Judge Walrath denied confirmation of WaMu's
Modified Sixth Amended Plan and granted equity committee standing
to prosecute claims for equitable disallowance but stayed the
ruling pending mediation.
WaMu said it would seek confirmation of a revised plan "as soon as
practicable."
The Plan proposes to pay more than $7 billion to creditors and
incorporates a global settlement agreement resolving issues among
the Debtors, JPMorgan Chase, the Federal Deposit Insurance Corp.
in its corporate capacity and as receiver for WaMu Bank, certain
large creditors, certain WMB senior noteholders, and the
creditors' committee. The Settlement Noteholders are Appaloosa
Management, L.P., Aurelius Capital Management LP, Centerbridge
Partners, LP, and Owl Creek Asset Management, L.P.
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- was the holding company for Washington
Mutual Bank as well as numerous non-bank subsidiaries.
Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns
100% of the equity in WMI Investment. When WaMu filed for
protection from its creditors, it disclosed assets of
$32,896,605,516 and debts of $8,167,022,695. WMI Investment
estimated assets of $500 million to $1 billion with zero debts.
WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal &
Manges LLP in New York City; Mark D. Collins, Esq., at Richards,
Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari,
Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver &
Hedges, LLP. The Debtor tapped Valuation Research Corporation as
valuation service provider for certain assets.
Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New
York, and David B. Stratton, Esq., at Pepper Hamilton LLP in
Wilmington, Del., represent the Official Committee of Unsecured
Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and
William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the
Equity Committee. The official committee of equity security
holders also tapped BDO USA as its tax advisor. Stacey R.
Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis,
Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent
JPMorgan Chase, which acquired the WaMu bank unit's assets prior
to the Petition Date.
On Jan. 7, 2011, the Bankruptcy Court entered a 107-page opinion
determining that the global settlement agreement, among certain
parties including WMI, the Federal Deposit Insurance Corporation
and JPMorgan, upon which the Plan is premised, and the
transactions contemplated therein, are fair, reasonable, and in
the best interests of WMI. However, the Opinion and related order
denied confirmation, but suggested certain modifications to the
Company's Sixth Amended Joint Plan of Affiliated Debtors that, if
made, would facilitate confirmation.
WaMu filed a Modified Sixth Amended Joint Plan and a related
Supplemental Disclosure Statement, which it believes would address
the Bankruptcy Court's concerns.
On Sept. 13, 2011, Judge Walrath denied confirmation of WaMu's
Modified Sixth Amended Plan and granted equity committee standing
to prosecute claims for equitable disallowance but stayed the
ruling pending mediation.
WaMu said it would seek confirmation of a revised plan "as soon as
practicable."
The Plan proposes to pay more than $7 billion to creditors and
incorporates a global settlement agreement resolving issues among
the Debtors, JPMorgan Chase, the Federal Deposit Insurance Corp.
in its corporate capacity and as receiver for WaMu Bank, certain
large creditors, certain WMB senior noteholders, and the
creditors' committee. The Settlement Noteholders are Appaloosa
Management, L.P., Aurelius Capital Management LP, Centerbridge
Partners, LP, and Owl Creek Asset Management, L.P.
WASHINGTON MUTUAL: Equity Committee Nominates Four Board Members
----------------------------------------------------------------
The Official Committee of Equity Security Holders of Washington
Mutual, Inc. disclosed the names of its four nominees to the Board
of Directors for the reorganized Washington Mutual Inc.
Reorganized WMI will emerge from bankruptcy if the currently
proposed plan of reorganization is confirmed by the Bankruptcy
Court. A hearing on the Seventh Amended Plan is currently
scheduled to commence on Feb. 16, 2012 at 9:30 a.m. The fifth
member of the Board of Directors of Reorganized WMI will be
nominated by lenders in a $125 million credit facility that will
be made available to Reorganized WMI.
James Scott, a member of the Equity Committee, said, "We were
pleased to see many quality candidates make themselves available
to the board of directors for Reorganized WMI. We are
particularly pleased with the four we selected."
Michael Willingham, chair of the Equity Committee and one of the
four nominees to the Reorganized WMI board, stated, "The Equity
Committee's primary goal was to maintain maximum flexibility for
the reorganized company so that once the board is seated, it will
be able to consider the widest range of options in creating a
business plan. The diversity of backgrounds among these nominees
will help meet that goal."
Ho Pham, another member of the Equity Committee, added "We believe
that this board will have the experience necessary to succeed in
the financial services sector."
The Equity Committee's four nominees to Reorganized WMI's board
are:
Diane B. Glossman, CFA--Ms. Glossman has 25 years of experience as
an investment analyst, including for Salomon Brothers, Lehman
Brothers, and UBS, where she was managing director and head of
United States bank and brokerage research until her retirement in
2003. She specialized in money center, trust banks, and
broker/dealers, but over the course of her career covered all
aspects of the banking and financial services industries.
Following her retirement from UBS, Ms. Glossman has served as an
advisor and consultant to a number of financial institutions. Ms.
Glossman is currently a board member of the Ambac Assurance
Company (head of the compensation committee and a member of the
special committee and the audit and risk assessment committee), as
well as the Board of Directors of the Bucks County SPCA (Treasurer
and member of the finance committee; past president). Previously,
she sat on the Trustees Board of the SSgA Funds (a member of the
audit, governance, valuation, and qualified legal and compliance
committees); the Board and finance committee of the Internet
payments company E-Charge Corporation; and the Board of the
flavorings and botanicals company, A.M. Todd Group (chairman of
the compensation committee and acting chairman of the audit
committee). During her career as an analyst, Ms. Glossman was a
frequent commentator on industry and company events for such
entities as The Nightly Business Report, The Wall Street Journal,
Financial Times, New York Times, The Economist, CNN, CNBC, and
various trade publications.
Timothy R. Graham--Mr. Graham is currently the principal of
Brookwall, LLC, a company advising on financial and operating
restructurings. He has extensive transactional, management, and
compliance experience in the restructuring, corporate, and venture
capital arenas with particular emphasis on troubled insurance and
financial entities. From June 2008 through August 2010, Mr.
Graham was a consultant to Triad Guaranty Insurance Corporation
and its mortgage insurance subsidiary where he assisted in
formulating and implementing a partially deferred payment plan for
policyholder claims allowing for the ongoing solvent runoff
pursuant to an Illinois Insurance Department Order of its
policyholder obligations arising from its more than $60 billion of
insured mortgages. Prior to that engagement, Mr. Graham served as
President and Chief Restructuring Officer of LaSalle Re Limited,
the primary subsidiary of a distressed NYSE traded, international
casualty/catastrophe reinsurer based in Bermuda, which completed
the solvent closure with regulatory approval of its licensed
reinsurance company primarily through consensual resolution of its
policyholder obligations in less than four years. Mr. Graham also
previously served as General Counsel, Director, and Chief
Restructuring Officer/Counsel for Trenwick Group LTD., a NYSE
traded holding company of an affiliated group of distressed
insurance and reinsurance subsidiaries with aggregate assets
exceeding $4.5 billion operating in the US, Lloyds of London,
Bermuda, and Europe, as well as the General Counsel and a Director
of Winstar Communications Inc., a broadband telecommunications,
internet service and content provider with licensed operations
throughout the US and in a number of major international markets.
Prior to that, Mr. Graham was a principal in an investment fund
focused on distressed and turnaround investments, as well as a
partner in a New York based national law firm specializing
primarily on international corporate transactions,
reorganizations, regulatory compliance and business law. Mr.
Graham has authored several books and a number of articles on
international business law and has spoken or co-chaired a number
of conferences on international insurance restructurings and
related matters.
Mark Holliday--From 2003 through 2009, Mr. Holliday was a partner
in Camden Asset Management, a multi-billion hedge fund focusing on
convertible and capital structure arbitrage. Prior to becoming a
partner with Camden, Mr. Holliday was with a number of investment
firms, including Deephaven Capital Management, Heartland Capital
Corp., Option Opportunities, and Continental Partners Group. Mr.
Holliday has served on the boards of directors of a number of
corporations and has extensive experience on board audit
committees. His past and present directorships include YRC
Worldwide, Inc. (audit committee chair, compensation committee),
FiberTower Corporation (director and chair of the audit
committee), Primus Telecommunications Group (audit committee
chair, compensation and governance committee), Movie Gallery, Inc.
(board chair, audit committee chair), Clear Choice Health Plans
(special committee member), Assisted Living Concepts, Inc. (audit
committee chair, special transaction committee chair), Reptron
Electronics, Inc. (audit committee member), and TELETRAC, Inc.
(audit committee member).
Michael Willingham--Mr. Willingham has been the chair of the
Equity Committee since its formation in January 2010. Through his
service on the Equity Committee, Mr. Willingham has developed
substantial knowledge about WMI's current state of operations and
also about the terms of the Seventh Amended Plan and related
agreements involving Reorganized WMI. Mr. Willingham is currently
working on issues necessary to prepare Reorganized WMI for
emergence from bankruptcy. Mr. Willingham has extensive prior
experience with complex securities agreements and financial
instruments. He has served on committees or trust boards in prior
bankruptcies including Mirant Corporation and Calpine Corporation.
Mr. Willingham has also provided consulting services on a wide
variety of issues, ranging from chapter 11 litigation to
securities trading investigations, and has been engaged as a
consultant in major bankruptcies including Enron. Prior to
consulting, Mr. Willingham traded energy commodities and
derivatives for two Fortune Global 500 companies.
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- was the holding company for Washington
Mutual Bank as well as numerous non-bank subsidiaries.
Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns
100% of the equity in WMI Investment. When WaMu filed for
protection from its creditors, it disclosed assets of
$32,896,605,516 and debts of $8,167,022,695. WMI Investment
estimated assets of $500 million to $1 billion with zero debts.
WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal &
Manges LLP in New York City; Mark D. Collins, Esq., at Richards,
Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari,
Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver &
Hedges, LLP. The Debtor tapped Valuation Research Corporation as
valuation service provider for certain assets.
Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New
York, and David B. Stratton, Esq., at Pepper Hamilton LLP in
Wilmington, Del., represent the Official Committee of Unsecured
Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and
William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the
Equity Committee. The official committee of equity security
holders also tapped BDO USA as its tax advisor. Stacey R.
Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis,
Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent
JPMorgan Chase, which acquired the WaMu bank unit's assets prior
to the Petition Date.
On Jan. 7, 2011, the Bankruptcy Court entered a 107-page opinion
determining that the global settlement agreement, among certain
parties including WMI, the Federal Deposit Insurance Corporation
and JPMorgan, upon which the Plan is premised, and the
transactions contemplated therein, are fair, reasonable, and in
the best interests of WMI. However, the Opinion and related order
denied confirmation, but suggested certain modifications to the
Company's Sixth Amended Joint Plan of Affiliated Debtors that, if
made, would facilitate confirmation.
WaMu filed a Modified Sixth Amended Joint Plan and a related
Supplemental Disclosure Statement, which it believes would address
the Bankruptcy Court's concerns.
On Sept. 13, 2011, Judge Walrath denied confirmation of WaMu's
Modified Sixth Amended Plan and granted equity committee standing
to prosecute claims for equitable disallowance but stayed the
ruling pending mediation.
WaMu said it would seek confirmation of a revised plan "as soon as
practicable."
The Plan proposes to pay more than $7 billion to creditors and
incorporates a global settlement agreement resolving issues among
the Debtors, JPMorgan Chase, the Federal Deposit Insurance Corp.
in its corporate capacity and as receiver for WaMu Bank, certain
large creditors, certain WMB senior noteholders, and the
creditors' committee. The Settlement Noteholders are Appaloosa
Management, L.P., Aurelius Capital Management LP, Centerbridge
Partners, LP, and Owl Creek Asset Management, L.P.
WESTERN COMMUNICATIONS: Files 1st Amended Plan of Reorganization
----------------------------------------------------------------
Western Communications, Inc., filed with the U.S. Bankruptcy Court
for the District of Oregon its First Amended Plan of
Reorganization and Disclosure Statement dated Jan. 27, 2012.
The Plan provides that the Debtor will pay all creditors in full.
The Plan contemplates that Debtor will continue to operate in the
ordinary course and will pay and satisfy its obligations under the
Plan from Debtor's existing current assets and from revenue
generated by Debtor's continuing operations. The Amended Plan
clarifies that if those assets and net operating income are not at
any time sufficient to fund payments to its creditors or otherwise
satisfy its Plan obligations, the Reorganized Debtor will generate
funds to satisfy those obligations from a recapitalization of
Reorganized Debtor or from a sale or refinance of some or all of
Reorganized Debtor's businesses.
Bank of America is the Debtor's largest creditor and has security
interest in all or substantially all of the Debtor's personal
property and most of the Debtor's real property. The amended Plan
provides that B of A does not have a security interest in the
Debtor's real property located in Baker City, Oregon; Redmond,
Oregon,; Brookings, Oregon; or Hermiston, Oregon (with a combined
appraised fair market value of approximately $1,165,000).
As of the Petition Date, the Debtor owed B of A approximately
$18,000,000 under four separate loan facilities funded under two
Loan Agreements dated March 18, 2005.
Under the Amended Plan, B of A will have an Allowed Claim in the
amount of (i) all amounts owing by the Debtor to B of A as of the
Petition Date, plus (ii) to the extent that the value of B of A's
collateral securing its claim as of the Petition Date is greater
than the amount owing to B of A as of the Petition Date, interest
from the Petition Date through the Effective Date at the non-
default contract rate of interest and other reasonable fees, costs
or charges provided for under the BofA Loan Documents.
In addition, promptly following the Effective Date, the Debtor
will grant to B of A a first priority security interest in the
Debtor's three unencumbered real properties (Redmond, Oregon;
Brookings, Oregon; and Hermiston, Oregon).
A full-text copy of the First Amended Plan is available at:
http://bankrupt.com/misc/WESTERNCOMM_1stAmPlan.pdf
About Western Communications
Western Communications, Inc., is a family-owned corporation
founded by renowned editor Robert W. Chandler. Headquartered in
Bend, Oregon, Western Communications is a small market newspaper,
niche publishing, printing and digital media company with
publications spread throughout Oregon (six publications) and
California (two publications). The Company produces and publishes
the Bend Bulletin, the Baker City Herald, the La Grande Observer,
the Redmond Spokesman, the Brookings Curry Coastal Pilot, the
Crescent City Daily Triplicate, and the Sonora Union Democrat.
The Company also publishes the Central Oregon Nickel Ads in Bend,
Oregon.
Western Communications filed for Chapter 11 bankruptcy (Bankr. D.
Ore. Case No. 11-37319) on Aug. 23, 2011. Albert N. Kennedy,
Esq., and Michael W. Fletcher, Esq., at Tonkon Torp LLP, in
Portland, Oregon, serve as the Debtor's bankruptcy counsel. The
Zinser Law Firm, P.C., and Davis Wright Tremaine LLP serve as the
Debtor's special purpose counsel. The petition was signed by
Gordon Black, president. In its amended schedules, the Debtor
disclosed assets of $31,255,376 and liabilities of $19,068,329 as
of the petition date.
The U.S. Trustee said that an official committee of unsecured
creditors has not been appointed because an insufficient number of
persons holding unsecured claims against Western Communications
have expressed interest in serving on a committee.
WINDRUSH SCHOOL: Judge Conditionally Approves Deal With Kaufman
---------------------------------------------------------------
Charles Burress at ElCerritoPatch reports that Bankruptcy Judge
William Lafferty conditionally approved a contested settlement for
the departing Ilana Kaufman, head of Windrush School.
According to the report, the approval becomes final if, as
expected, debt-ridden Windrush relinquishes bankruptcy protection
this month.
The report says the court has already approved a different
settlement reached Dec. 1, 2011, between the K-8 private school
and its creditors, represented by Wells Fargo Bank. That deal
includes Windrush leaving the bankruptcy shelter and being allowed
to continue operating the rest of this school year.
Windrush has asked the Court to dismiss its case. The court
hearing on determining whether the school has met the requirements
of its agreement with Wells Fargo and on dissolving the bankruptcy
status is scheduled for Feb. 8, 2012.
The report relates that Judge Lafferty acknowledged that some
parts of the deal troubled him but that the imperfections were
counterbalanced by the promise of legal peace in the disruptive,
expensive bankruptcy battle that has roiled the school since
Windrush filed for Chapter 11 bankruptcy protection in September
2011.
About Windrush School
Based in El Cerrito, California, Windrush School is a private K-8
school. The Company filed for Chapter 11 protection on Sept. 30,
2011 (Bankr. D. N.D. Calif. Case No. 11-70440). Judge William J.
Lafferty presides over the case. Merle C. Meyers, Esq., and
Michele Thompson, Esq., at Meyers Law Group P.C., I San Francisco,
Calif., represent the Debtor. In its schedules, the Debtor
disclosed $14,809,364 in assets and $13,206,276 in liabilities.
Attorneys for secured lender Wells Fargo Bank N.A. are Mike C.
Buckley, Esq., James Neudecker, Esq., and Renee C. Feldman, Esq.,
at Reed Smith LLP. Wells Fargo is the Indenture Trustee under an
Indenture between California Statewide Communities Development
Authority dated as of July 1, 2017, pertaining to $13,000,000 of
revenue bonds issued by the Authority.
* Bankruptcy Filings Slide in Calendar Year 2011
------------------------------------------------
Bankruptcy filings in the federal courts fell 11.5% in calendar
year 2011. The number of bankruptcies filed in the 12-month
period ending Dec. 31, 2011, totaled 1,410,653 -- down from
1,593,081 bankruptcies filed in 2010. A copy of the report is
available at http://is.gd/XIkwc3
* Distressed Debt Ratio Declined in January but Remains Elevated
----------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that a measure of
distressed debt among speculative-rated issuers declined last
month as the amount of affected debt also dropped, according to
Standard & Poor's.
* ISDA to Decide If Five Major US Banks Go Insolvent
----------------------------------------------------
Kenneth Schortgen Jr. at Finance Examiner reports that the
International Swaps and Derivative Association (ISDA) is expected
to make a decision as early as Monday on whether five major US
banks will go insolvent, according to Jim Sinclair in an interview
on January 30th.
The report says the ISDA is one of the most powerful monetary
entities in the world, and in many cases according to
Mr. Sinclair, has more power than governments. Its dominion
spreads throughout the entire banking system, determining whether
one or more of the nearly $1 quadrillion in derivatives and credit
default swaps are paid out to holders in the event of a bank,
sovereign nation, or securities default, Finance Examiner notes.
According to Finance Examiner, Mr. Sinclair told Ellis Martin in
an interview that the decision by the ISDA could take place as
early as Jan. 31, and no later than this week, and it involves
five major US banks, the nation of Greece, the Euro, and the
chances of a massive QE bailout in the Western economic system.
* Top Law Firms Blast Ch. 11 Fee Guideline Changes
---------------------------------------------------
Hilary Russ at Bankruptcy Law360 reports that more than 100 U.S.
law firms have signed off on comments criticizing the U.S. Trustee
Program's plan to update the Chapter 11 billing guidelines for the
first time in 15 years, according to a copy of the letter Law360
obtained Friday.
In the letter, the firms ? including all five recognized by Law360
this year for the success of their bankruptcy practice groups ?
call for a series of meetings with officials to address potential
problems with the revised guidelines, according to Law360.
* Bennett Silverberg Joins Brown Rudnick's NY Office as Partner
---------------------------------------------------------------
Brown Rudnick on Feb. 6 disclosed that Bennett S. Silverberg has
joined the Firm's Restructuring Group in the New York office.
Formerly with DLA Piper, Mr. Silverberg's arrival reunites him
with the former Chair of DLA Piper's Restructuring Practice Group,
H. Jeffrey Schwartz, who joined Brown Rudnick in October 2011.
Mr. Silverberg has significant experience in representing debtors
and creditors in chapter 11 reorganization cases and out-of-court
restructurings. His engagements have ranged across a wide array
of industries, including automotive, food, manufacturing, real
estate, lending, technology and telecommunications. His chapter
11 debtor representations include CIT Group, Inc., Hayes-Lemmerz
International, Inc., Blue Bird Bus Company, Safety-Kleen Systems,
Inc., Russell-Stanley Holdings, Inc., Refco, Inc., Radio Unica
Communications, Corp., VF Brands, Inc. (a/k/a Vlasic and Swanson
Foods), RCN Corp., PTC Alliance Corp., and American Banknote Corp.
At Brown Rudnick, Mr. Silverberg will work closely with former
colleague Jeff Schwartz and Restructuring Group Practice Leaders
Ed Weisfelner, Jeffrey Jonas and Louise Verrill, as well as other
members of this award-winning practice. Mr. Silverberg will also
collaborate with the Litigation Group on high-end, complex
national and international litigation matters.
Brown Rudnick's CEO Joseph F. Ryan said, "We continue to add
world-class restructuring lawyers who can help clients navigate
the complexities of today's global credit markets. Bennett's
arrival reinforces the Firm's position as the firm of choice for
legal advice in relation to the restructuring of corporate and
structured credits."
Since the early 1980s, Brown Rudnick's Restructuring Group has
been among the pioneers representing high-yield investors and fund
managers to bring an unprecedented level of financial
sophistication, innovation and aggressiveness to bankruptcy cases
and debt restructurings. Today, Brown Rudnick has one of the
largest restructuring and bankruptcy groups with more than 65
lawyers dedicated to this practice area. The Group has
successfully represented an impressive list of official and ad hoc
committees, general unsecured creditors, equity holders and other
central parties in many of the largest and most complex
insolvencies and restructurings. Most recently, the Group has
represented a variety of creditors in relation to Anglo Irish
Bank, Allied Irish Banks and The Bank of Ireland, as well as in
LyondellBasell, Six Flags, Visteon Corporation, Tribune
Corporation, Washington Mutual, Inc., and American Safety Razor,
among many others.
About Brown Rudnick LLP
Brown Rudnick -- http://www.brownrudnick.com-- is an AmLaw 200
firm with offices in the United States and Europe. The firm
represents clients from around the world in high stakes litigation
and business transactions. Its clients include public and private
corporations, hedge funds, venture capital funds, private equity
funds, multinational Fortune 100 businesses, and start-up
enterprises. It also represents investors, as well as official
and ad hoc creditors' committees in today's largest corporate
restructurings, both domestically and abroad.
* Jeffrey MacDonald Joins Binghman's New York Office as Partner
---------------------------------------------------------------
Bingham McCutchen LLP has expanded its private equity and
insurance capabilities in New York and Hartford with the addition
of partner Jeffrey MacDonald.
Joining from Dewey & LeBoeuf LLP, Mr. MacDonald counsels issuers
and investment funds across industries in connection with private
equity and debt financings as well as a diverse range of other
transactional and corporate governance matters. Mr. MacDonald
will work out of Bingham's New York and Hartford offices.
"Jeff's strong private equity and insurance M&A experience brings
a valuable dimension for our clients with sophisticated legal
needs," said New York office managing partner Robert
Dombroff.
"Jeff's skills as a dealmaker in the insurance space is a natural
fit for us," added Hartford office managing partner Daniel
Papermaster, noting Bingham's insurance practice, headed by
Hartford partner Hal Horwich.
For Mr. MacDonald, Bingham's platform, talent, reputation and
camaraderie attracted him to the firm.
"Bingham's global reach and focus on professionalism, collegiality
and teamwork among lawyers appealed to me," Mr. MacDonald said.
"There is a very real spirit of partnership at Bingham, and the
firm's platform is a great fit for my private equity and insurance
clients who conduct business nationally and internationally."
MacDonald has substantial experience structuring and negotiating
private equity-sponsored leveraged buyout transactions;
acquisitions and divestitures; joint ventures; equity and debt
portfolio investments; recapitalizations; investment vehicle and
fund formations; syndicated debt financings; and all aspects of
corporate, limited liability company and partnership
organization and maintenance.
Bingham -- http://www.bingham.com-- offers a broad range of
market-leading practices focused on global financial services
firms and Fortune 100 companies. The firm has more than 1,000
lawyers in 14 locations in the United States, Europe and Asia.
* Sal Naro to Launch Coherence Capital Partners LLC
---------------------------------------------------
Sal Naro, former co-managing partner of Sailfish Capital, a $4.4
billion asset management firm with approximately $2 billion in
hedge fund assets, announced the launch of Coherence Capital
Partners LLC. Mr. Naro was most recently a shareholder in and
Vice Chairman of Jefferson National Financial Corp. and Chief
Executive Officer of Jefferson National Asset Management. The
creation of Coherence Capital Partners LLC is the result of a
management buyout of Jefferson National?s core insurance unit. He
will now be Chief Executive Officer of Coherence Capital Partners
LLC, which will be a registered investment adviser.
Coherence Capital will manage traditional and non-traditional
fixed income assets for a broad audience of investors. In
addition, Coherence, as a third party advisor, will continue to
conservatively manage, using the insurance company's investment
guidelines, a portion of Jefferson National's general account
portfolio of $100 million in value, as well as provide risk
monitoring and advisory services for a portion of their
reinsurance contracts. Coherence Capital's headquarters will be
located in the West Village of Manhattan, at 435 Hudson Street.
The management team at Coherence Capital will consist of several
former Jefferson National Asset Management executives previously
recruited by Mr. Naro in his role as CEO. The executive team
possesses an extensive background managing assets and businesses
and each has a longstanding relationship with Mr. Naro. The
management team will include Vincent Mistretta, former Head of
Portfolio Management at Jefferson National Asset Management, Greg
MacKay, its former Chief Operating Officer, and Robert Del Grande,
its former Chief Financial Officer. David E. McClean, Ph.D., a
regulatory compliance expert with over 25 years of experience and
former Chief Compliance Officer of Sailfish Capital, will join
Coherence and oversee regulatory matters.
"Coherence will look to capitalize on inefficiencies and thematic
trends in the capital markets," said Mr. Naro. "Quality research
and experience are cornerstones of our business model. Coherence
Capital's primary thesis is to invest in companies that show
strong performance in their balance sheets with earnings that meet
and beat expectations while taking short positions in credits that
miss earnings expectations and suffer continued weakness in their
primary business metrics," he added.
Mr. Naro brings a wealth of experience to his new venture. Prior
to his tenure at Jefferson National, Mr. Naro was an Executive
Vice President at Markit, a leading, global financial information
services company. At Markit, Mr. Naro was instrumental at setting
and implementing strategic initiatives under CEO Lance Uggla.
Additionally, prior to Sailfish Capital, from 1999 to 2005, he was
a Managing Director at UBS where he served as Co-Head of Global
Fixed Income as well as a member of UBS's Investment Bank Board of
Directors. Previous to UBS, Mr. Naro was a Senior Managing
Director at Bear Stearns where he was Global Head of Credit
Trading. Mr. Naro also currently serves as member of the Board
of Trustees at Long Island University.
Seward and Kissel LLP, the New York-based law firm, will be
representing Mr. Naro and Coherence Capital.
About Coherence Capital Partners LLC
Coherence Capital Partners -- http://www.coherencecap.com-- is an
asset manager seeking to exploit opportunities in bonds, loans,
CDS, index and structured products across the fixed income
markets. Coherence Capital expects to generate returns utilizing
capital structure arbitrage, event driven and relative value
investments as well as theme-based momentum trading.
* Thompson Hine Adds Two Lateral Partners for New York Office
--------------------------------------------------------------
Thompson Hine LLP disclosed that William H. Schrag and Peter J.
Gennuso have joined the firm's New York office as partners in the
Business Restructuring, Creditors' Rights & Bankruptcy and
Corporate Transactions & Securities practice groups, respectively.
Schrag joins from Duane Morris LLP and Gennuso joins from Gersten
Savage LLP.
"Bill and Peter are tremendous assets to the New York office and
further expand our existing corporate and bankruptcy
capabilities," said Kathie Brandt, partner-in-charge of the firm's
New York office. "Their addition exemplifies Thompson Hine's
commitment to growing our New York office with top-tier lateral
partners."
Schrag represents major financial institutions, manufacturers and
institutional creditors, official creditors' committees, Chapter
11 trustees, purchasers of estate assets and court-appointed
examiners in domestic and international bankruptcy litigation,
workouts, corporate reorganization and related matters. He also
represents commercial lenders in state and federal courts in
actions to enforce creditors' rights and defend against lender
liability claims. Schrag holds a J.D. from Brooklyn School of Law
and graduated Phi Beta Kappa with a B.A. from George Washington
University.
Recently Schrag has represented an agent bank on a $770 million
secured credit facility involving 24 lenders in the Freedom
Communications bankruptcy case in Delaware, the largest secured
creditor in the ROL Manufacturing bankruptcy case in Ohio
(involving cross-border proceedings in both Canada and the United
States), and the largest bank creditor in the Escada bankruptcy
case in the Southern District of New York, individually and as co-
chair of the official creditors' committee. He has also
represented various parties in interest in other bankruptcy cases
of national significance, including MF Global, Lyondell, Delaco,
Enron, Rockefeller Center Properties, Montgomery Ward, London Fog,
Commodore, Barney's, Zale and Penrod.
Gennuso represents U.S. and non-U.S. public and private companies
in a wide range of financial and stock transactions, including
private placements, PIPE transactions, public company filings,
mergers and acquisitions, restructurings, reorganizations and
IPOs, and counsels them on Sarbanes-Oxley compliance. Gennuso's
experience includes a broad spectrum of business sectors including
biotechnology, biopharmaceutical, mining, clean technology and
retail. He also has considerable experience representing emerging
growth companies and handling hedge fund matters. Gennuso holds a
J.D. from Pace University School of Law, an M.B.A. in finance from
Pace University's Lubin School of Business and a B.A., magna cum
laude, from Iona College.
Both partners noted the extensive resources available to their
existing clients and in particular were attracted to the firm's
strong reputation in the financial services and life sciences
sectors. "I was impressed by the reputation of the firm's
national bankruptcy group," said Schrag. "My existing practice
clearly integrates well with Thompson Hine's, and my clients will
also benefit from the firm's robust corporate and litigation
resources. In addition, there is a strong synergy between my
practice and the firm's work in the life sciences arena."
"My clients will benefit from the ability to tap into the deep
bench of resources in New York and throughout the firm --
particularly in the areas of life sciences, intellectual property,
tax and international trade," said Gennuso of his decision to join
Thompson Hine. "It is great to have access to such a strong and
deep set of practices that complement my existing practice," he
added.
The new lawyers can be reached at:
William H. Schrag, Esq.
Peter J. Gennuso, Esq.
THOMPSON HINE LLP
335 Madison Avenue, 12th Floor
New York, New York 10017-461
Tel: (212) 344-5680
Fax: (212) 344-6101
E-mail: William.Schrag@ThompsonHine.com
Peter.Gennuso@ThompsonHine.com
About Thompson Hine
Established in 1911, Thompson Hine -- http://www.ThompsonHine.com/
-- is a business law firm dedicated to providing superior client
service. The firm has been recognized for ten consecutive years
as a top law firm in the country for client service excellence in
The BTI Client Service A-Team: Survey of Law Firm Client Service
Performance. With offices in Atlanta, Cincinnati, Cleveland,
Columbus, Dayton, New York and Washington, D.C., Thompson Hine
serves premier businesses worldwide.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
April 3-5, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Grand Hyatt Atlanta, Atlanta, Ga.
Contact: http://www.turnaround.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
November 1-3, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Westin Copley Place, Boston, Mass.
Contact: http://www.turnaround.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott Chicago, Chicago, Ill.
Contact: http://www.turnaround.org/
October 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
*********
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-
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are $25 each. For subscription information, contact Christopher
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*** End of Transmission ***