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/raid1/www/Hosts/bankrupt/TCR_Public/120317.mbx T R O U B L E D C O M P A N Y R E P O R T E R Saturday, March 17, 2012, Vol. 16, No. 76 Headlines ALEXANDER GALLO: Ends December With $2.65-Mil. Cash AMERICAN AIRLINES: Has $234 Million Net Loss in January AMERICAN LASER: Ends December With $2.23 Million Cash BLOCKBUSTER INC: Debtor Had $37.3 Million Cash at Dec. 31 BUFFETS INC: Projects $575-Mil. in Disbursements in 6.5 Months CARITAS HEALTH: Had $18.84 Million Cash at Dec. 31 EMIVEST AEROSPACE: Posts $445,100 Net Loss in December 2011 EVERGREEN SOLAR: Has $161.57MM Net Loss in 4 Weeks Ended Dec. 31 FRANCISCAN COMMUNITIES: Has $433,000 Net Loss in December 2011 GSC GROUP: Ends December With $14.7 Million Cash HOSTESS BRANDS: Reports $1.78 Million Operating Loss in January HUDSON HEALTHCARE: Ends December 2011 With $271,400 Cash HUSSEY COPPER: Debtor Has $2-Mil. Profit in November ********* ALEXANDER GALLO: Ends December With $2.65-Mil. Cash --------------------------------------------------- AGH Liquidating LLC had total receipts of $50,600 and disbursements totaling $3.00 million during the month of December 2011. As a result it ended the month with $2.65 million cash. A copy of the operating report is available for free at: http://bankrupt.com/misc/AGH_Dec2011_MOR.pdf About Alexander Gallo Marietta, Georgia-based Alexander Gallo Holdings LLC -- http://www.alexandergalloholdings.com-- is the largest full service, IT-enabled court reporting and litigation support services company in the United States. AGH offers court reporting, litigation support, trial software and other similar services and has the only true national footprint in its market, with roughly 55 offices located throughout the United States, and a preferred provider network which serves as an extension of Alexander Gallo's geographic reach. Founded in 1999 by Alexander J. Gallo, a former court reporter, AGH has made 18 acquisitions since 2003. Mr. Gallo has remained as CEO. AGH, along with affiliates, filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-14220) on Sept. 7, 2011. Alexander Gallo will sell the business via 11 U.S.C. Sec. 363 to Bayside Capital Inc., which had acquired $22 million in second- lien debt. The price wasn't disclosed. Alexander Gallo disclosed assets of $208 million and debt totaling $258 million as of June 30, 2011. Liabilities include $47 million on a first-lien revolving credit and term loan where Wells Fargo Bank NA is agent. In addition to the second-lien debt held by Bayside, there is $33 million in junior unsecured subordinated notes owing to Harvest Equity Partners LLC plus another $148 million in junior unsecured subordinated notes owing to insider Gallo Holdings LLC. As reported in the Troubled Company Reporter on Nov. 1, 2011, the Alexander Gallo disclosed $41,981,048 in assets and $259,153,046 in liabilities as of the Chapter 11 filing. Bayside is providing $20 million in financing for the Chapter 11 effort. The new loan will have a first priority lien on unencumbered assets and a lien behind the first-lien debt. Bankruptcy Judge Allan J. Gropper presides over the case. Thomas R. Califano, Esq., Jeremy R. Johnson, Esq., Esq., and Daniel G. Egan, Esq., at DLA Piper LLP (US), in New York, serve as the Debtors' general counsel. Squire, Sanders & Demsey (US) LLP serves as the Debtor's corporate counsel. The Debtors' financial advisor is Gordian Group, LLC. Marc L. Pfefferle, a partner at Carl Marks Advisory Group LLC, serves as the Debtors' chief restructuring advisor. Kurtzman Carson Consultants LLC serves as the Debtor's claims agent. KPMG LLP serves as their auditors to provide auditing, tax compliance and tax consulting services. In December 2011, an affiliate of Bayside Capital, Inc., completed the acquisition of Alexander Gallo's assets. The Debtor was renamed to AGH Liquidating, LLC following the sale. AMERICAN AIRLINES: Has $234 Million Net Loss in January ------------------------------------------------------- AMR Corporation, et al. Condensed Consolidated Balance Sheet As of January 31, 2012 ASSETS Current Assets Cash $347,000,000 Short-term investments 3,793,000,000 Restricted cash and short-term investments 768,000,000 Receivables, net 1,050,000,000 Inventories, net 604,000,000 Fuel derivative contracts 108,000,000 Other current assets 357,000,000 ------------------ 7,027,000,000 Equipment and property Flight equipment, net 11,031,000,000 Other equipment and property, net 2,123,000,000 Purchase deposits for flight equipment 735,000,000 ------------------ 13,889,000,000 Equipment and property under capital leases Flight equipment, net 320,000,000 Other equipment and property, net 71,000,000 ------------------ 391,000,000 International slots and route authorities 708,000,000 Domestic slots and airport operating and gate lease rights, less accumulated amortization, net 183,000,000 Other assets 1,931,000,000 ------------------ TOTAL ASSETS $24,129,000,000 ================== Liabilities and stockholders' equity (deficit) Current liabilities Accounts payable $1,124,000,000 Accrued liabilities 1,881,000,000 Air traffic liability 4,326,000,000 Current maturities of long-term debt 1,485,000,000 Current obligations under capital leases 38,000,000 ------------------ Total current liabilities 8,854,000,000 Long-term debt, less current maturities 6,625,000,000 Obligations under capital leases, less current obligations 289,000,000 Pension and postretirement benefits 9,249,000,000 Other liabilities, deferred gains and deferred credits 1,582,000,000 Liabilities subject to compromise 4,839,000,000 Stockholders' Equity Preferred stock - Common stock 341,000,000 Additional paid-in capital 4,466,000,000 Treasury stock (367,000,000) Accumulated other comprehensive income (loss) (3,929,000,000) Accumulated deficit (7,820,000,000) ------------------ (7,309,000,000) ------------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $24,129,000,000 ================== AMR Corporation, et al. Consolidated Statement of Operations Month Ended January 31, 2012 Revenues Passenger - American Airlines $1,543,000,000 - Regional Affiliates 218,000,000 Cargo 50,000,000 Other revenues 221,000,000 ------------------ Total operating revenues 2,032,000,000 Expenses Aircraft fuel 704,000,000 Wages, salaries and benefits 601,000,000 Other rentals and landing fees 121,000,000 Maintenance, materials and repairs 106,000,000 Depreciation and amortization 87,000,000 Commissions, booking fees and credit card expense 99,000,000 Aircraft rentals 47,000,000 Food service 42,000,000 Other operating expenses 230,000,000 ------------------ 2,037,000,000 ------------------ Operating income (loss) (5,000,000) Other income (expense) Interest income 2,000,000 Interest expense (62,000,000) Interest capitalized 4,000,000 Miscellaneous - net (3,000,000) ------------------ (59,000,000) ------------------ Income (loss) before reorganization items (64,000,000) Reorganization items, net (170,000,000) ------------------ Income (loss) before income taxes (234,000,000) Income tax - ------------------ Net Income (Loss) ($234,000,000) ================== AMR Corporation, et al. Condensed Consolidated Statement of Cash Flows Month Ended January 31, 2012 Net cash provided by (used for) Operating Activities $331,000,000 Cash flow from investing activities: Capital expenditures, including aircraft lease deposits (52,000,000) Net (increase) decrease in short-term investments (75,000,000) Net (increase) decrease in restricted cash and short-term investments (30,000,000) Proceeds from sale of equipment and property - ------------------ Net cash used for investing activities (157,000,000) Cash flow from financing activities: Payments on long-term debt and capital lease obligations (110,000,000) Proceeds from: Issuance of debt - Sale leaseback transactions - Other - ------------------ (110,000,000) ------------------ Net increase (decrease) in cash 64,000,000 Cash at beginning of period 283,000,000 ------------------ Cash at end of period $347,000,000 ================== About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN LASER: Ends December With $2.23 Million Cash ----------------------------------------------------- ALC Holdings LLC disclosed that it had total cash receipts of $3.69 million and disbursements of $8.86 million in the period Dec. 8 to 31, 2011. Cash at the end of the month was $2.23 million. A copy of the operating report is available at: http://bankrupt.com/misc/ALC_Dec2011_MOR.pdf About ALC Holdings Farmington Hills, Michigan-based ALC Holdings LLC dba American Laser Centers, and American Laser Skincare, provides laser hair removal treatments. The Company and its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-13853) on Dec. 8, 2011. Bankruptcy Judge Mary F. Walrath presides over the case. Landis Rath & Cobb LLP represents the Debtors in their restructuring efforts. BMC Group Inc. serves as claims agent; SSG Capital Advisors, LLC serves as financial advisors; and Traverse, LLC serves as restructuring crisis manager. MBC Consulting and Melanie B. Cox serve as interim chief executive officer. Qorval and Eric Glassman serve as restructuring consultant. The Debtors disclosed total assets of $80.4 million and total liabilities including $40.3 million owing on a first-lien debt, $51 million in subordinated notes, and $17.9 million is owing to trade suppliers, as of Oct. 31, 2011. American Laser Centers of California LLC disclosed $20,988,454 in assets and $99,951,866 in liabilities as of the Chapter 11 filing. ALC Holdings LLC disclosed $14,662 in assets and $93,744,094 in liabilities. The Official Committee of Unsecured Creditors has tapped Herrick, Feinstein LLP as bankruptcy counsel; Ashby & Geddes, P.A. as Delaware counsel; and J.H. Cohn LLP as its financial advisor. American Laser Centers on Feb. 6, 2012, 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. Private equity lender Versa Capital is paying $39.5 million. A planned auction failed to turn up additional bids. BLOCKBUSTER INC: Debtor Had $37.3 Million Cash at Dec. 31 --------------------------------------------------------- BB Liquidating Inc., formerly Blockbuster Inc., prior to the bankruptcy sale of its assets, disclosed a net loss of $400,000 on $0 revenue in December 2011. BB disclosed $37.3 million in cash at Dec. 31, 2011. At the end of the month, the Debtor had $44.8 million in assets and $1.356 billion in liabilities, of which $1.352 billion is subject to compromise. A copy of the operating report filed with the Bankruptcy Court is available for free at: http://bankrupt.com/misc/Blockbuster_MOR_Dec2011.pdf About Blockbuster Inc. Blockbuster Inc., the movie rental chain with a library of more than 125,000 titles, along with 12 U.S. affiliates, initiated Chapter 11 bankruptcy proceedings with a pre-arranged reorganization plan in Manhattan (Bankr. S.D.N.Y. Case No. 10-14997) on Sept. 23, 2010. It disclosed assets of $1 billion and debts of $1.4 billion at the time of the filing. Martin A. Sosland, Esq., and Stephen Karotkin, Esq., at Weil, Gotshal & Manges, serve as counsel to the U.S. Debtors. Rothschild Inc. is the financial advisor. Alvarez & Marsal is the restructuring advisor with A&M managing director Jeffery J. Stegenga as chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. The Official Committee of Unsecured Creditors retained Cooley LLP as its counsel. In April 2011, Blockbuster conducted a bankruptcy court-sanctioned auction for all the assets. Dish Network Corp. won with an offer having a gross value of $320 million. The Debtor was renamed to BB Liquidating Inc. following closing of the sale. BUFFETS INC: Projects $575-Mil. in Disbursements in 6.5 Months -------------------------------------------------------------- Buffets Inc. filed with the bankruptcy court its initial operating report, which shows a 26-week cash flow forecast. The Debtor projects that for the 26-week ended July 25, 2012, cash receipts will total $610 million while operating disbursements will total $574.8 million. During the period, it expects to pay a total of $16.8 million in professional fees. A copy of the document is available free of charge at: http://bankrupt.com/misc/Buffets_Forecast_Jul2012.pdf About Buffets Inc. Buffets Inc., the nation's largest steak-buffet restaurant company, operates 494 restaurants in 38 states, comprised of 483 steak-buffet restaurants and 11 Tahoe Joe's Famous Steakhouse(R) restaurants, and franchises 3 steak-buffet restaurants in two states. The restaurants are principally operated under the Old Country Buffet(R), HomeTown(R) Buffet, Ryan's(R) and Fire Mountain(R) brands. Buffets employs 28,000 team members and serves 140 million customers annually. Buffets Inc. and all of its subsidiaries filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 12-10237) on Jan. 18, 2012, after it reached a restructuring support agreement with 83% of its lenders to eliminate virtually all of the Company's roughly $245 million of outstanding debt. The Debtors are seeking to reject leases for 83 underperforming restaurants. Buffets had 626 restaurants when it began its prior bankruptcy case (Bankr. D. Del. Case Nos. 08-10141 to 08-10158). It emerged from bankruptcy in April 2009. Higher gasoline and energy costs, along with a decline in guest count, have hampered the Debtors' ability to service their long- term debt and caused a liquidity strain, forcing the Company to return to Chapter 11 bankruptcy. In the new Chapter 11 case, Buffets Inc.'s legal advisors are Paul, Weiss, Rifkind, Wharton & Garrison LLP and Young, Conaway, Stargatt & Taylor, LLP. The Company's financial advisor is Moelis, Inc. Epiq Bankruptcy Solutions LLC serves as claims, noticing and balloting agent. An ad hoc committee of secured lenders is represented by Willkie Far & Gallagher LLP and Blank Rome LLP as counsel and Conway, Del Genio, Gries & Co. as financial advisors. Credit Suisse, as DIP Agent and Prepetition First Lien Agent, is represented by Skadden Arps Slate Meagher & Flom as counsel. The U.S. Trustee has appointed a 5-member Official Committee of Unsecured Creditors in the Debtors' cases. CARITAS HEALTH: Had $18.84 Million Cash at Dec. 31 -------------------------------------------------- Caritas Health Care Inc. at Dec. 31, 2011, had cash of $18.7 million and ended the month with an additional $126,900. Cash sales of $410,800 during the month were able to cover $283,900 in disbursements, including $71,300 in professional fees. A copy of the document is available for free at: http://bankrupt.com/misc/Caritas_MOR_Dec2011.pdf About Caritas Health Care Caritas Health Care Inc. was the owner of Mary Immaculate Hospital and St. John's Queens Hospital. Caritas, created by Wyckoff Heights Medical Center, purchased the two hospitals in a bankruptcy sale in early 2007 from St. Vincent Catholic Medical Centers of New York. St. John's has 227 generate acute-care beds while Mary Immaculate has 189. Caritas Health Care, Inc., and eight of its affiliates sought chapter 11 protection (Bankr. E.D.N.Y., Case No. 09-40901) on Feb. 6, 2009. Jeffrey W. Levitan, Esq., and Adam T. Berkowitz, Esq., at Proskauer Rose, LLP, represent the Debtors. Martin G. Bunin, Esq., and Craig E. Freeman, Esq., at Alston & Bird LLP, represent the official committee of unsecured creditors. Caritas sold the hospitals to Joshua Guttman in November 2009 for $17.7 million. Caritas filed a proposed Chapter 11 liquidating plan after the sales of substantially all assets were completed. Under the plan, holders of unsecured creditors are expected to recover between 1% and 3%. Holders of the existing stock won't receive anything. The plan has yet to be confirmed by the bankruptcy court. EMIVEST AEROSPACE: Posts $445,100 Net Loss in December 2011 ----------------------------------------------------------- Emivest Aerospace Corp. had a net loss of $445,100 on $0 revenue during the month ended Dec. 31, 2011. Net loss since the Petition Date has reached $84.4 million. Emivest had $106,300 in cash at the start of the month and at month's end had $72,171 after administrative expenses of $37,300. Professional fees during the period were only $39,800, raising total fees paid since the Chapter 11 filing to $3.50 million. As of Dec. 31, Emivest had total assets of $291,700 and total liabilities of $82.7 million. A copy of the operating report is available at: http://bankrupt.com/misc/Emivest_MOR_Dec2011.pdf About Emivest Aerospace Emivest Aerospace Corporation -- http://www.sj30jet.com/-- is a U.S.-based aircraft manufacturing company and a subsidiary of Emirates Investment & Development PSC. Emivest Aerospace Corporation produces the SJ30 light jet. Emivest Aerospace Corporation filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-13391) on Oct. 20, 2010. Emivest disclosed $80,700,232 in assets and $77,333,546 in liabilities as of the Chapter 11 filing. Daniel B. Butz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware, serves as counsel to the Debtor. Morgan Joseph & Co. Inc. is the financial advisor to the Debtor. The Debtor also hired DLA Piper LLP (US) as special counsel to assist in the marketing of its assets. Attorneys at Pachulski Stang Ziehl & Jones LLP serve as counsel to the Official Committee of Unsecured Creditors. Deloitte Financial Services LLP is the Committee's financial advisor. EVERGREEN SOLAR: Has $161.57MM Net Loss in 4 Weeks Ended Dec. 31 ---------------------------------------------------------------- Evergreen Solar Inc.'s monthly operating report for the period Nov. 27 to Dec. 31, 2011, says that net loss was $161.57 million on $4.12 million of revenue. Total reorganization expenses consisting of a $152.55 million [loss] on sale of assets and $4.94 million in professional fees contributed to the net loss. Net loss before reorganization expenses was $9.00 million. The Debtor disclosed $66.18 million in assets and $361.38 million in liabilities as of Dec. 31, 2011. A copy of the operating report is available for free at: http://bankrupt.com/misc/Evergreen_Dec2011_MOR.pdf About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- developed, manufactured and marketed String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Hilco Industrial LLC serves as exclusive marketing and sales agent. Klehr Harrison Harvey Branzburg serves as special conflicts counsel. Zolfo Cooper LLC is the financial advisor. UBS Securities, LLC, serves as investment banker. Epiq Bankruptcy Solutions has been tapped as claims agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a 'stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. An official committee of unsecured creditors has retained Pepper Hamilton and Kramer Levin Naftalis & Frankel as counsel. The Committee tapped Garden City Group as communications services agent. Evergreen Solar is at least the fourth solar company to seek court protection from creditors since August 2011. Other solar firms are start-up Spectrawatt Inc., which also filed in August, Solyndra Inc., which filed early in September, and Stirling Energy Systems Inc., which filed for Chapter 7 bankruptcy late in September. Evergreen sold the assets piecemeal in three auctions. Max Era Properties Ltd. from Hong Kong paid $6 million cash and $3.2 million in stock of China Private Equity Investment Holdings Ltd. for the company name, intellectual property, and wafermaking assets. Kimball Holdings LLC paid $3.8 million for solar panel inventory while the secured lenders exchanged $21.5 million of their $165 million claim for a $171 million claim against Lehman Brothers Holdings Inc. Max Era and Sovello AG bought equipment and machinery located at the Debtor's Devens, Massachusetts facility for $8.9 million. FRANCISCAN COMMUNITIES: Has $433,000 Net Loss in December 2011 -------------------------------------------------------------- Franciscan Communities St. Mary of the Woods, Inc., disclosed that it had a net loss of $433,000 on $636,000 of net revenue for the month ended Dec. 31, 2011. Net loss has reached $650,000 since the Chapter 11 filing. As of Dec 31, 2011, assets total $24.32 million against postpetition liabilities of $14.73 million and secured liabilities of $34.83 million. A copy of the operating report is available at: http://bankrupt.com/misc/StMary_Dec2011_MOR.pdf Net loss in November was $217,000 on $186,500 of revenue. A copy of the MOR is available at: http://bankrupt.com/misc/StMary_Nov2011_MOR.pdf About Franciscan Communities Illinois-based Franciscan Communities St. Mary of the Woods, Inc., owns and operates a senior living community in Avon, Ohio. The not-for-profit community is owned and managed by the Franciscan Sisters of Chicago Service Corp. Franciscan Communities St. Mary of the Woods filed for Chapter 11 bankruptcy (Bankr. N.D. Ohio Case No. 11-19865) on Nov. 21, 2011, after it failed to negotiate an out-of-court workout with holders of tax-free bonds. Judge Jessica E. Price Smith oversees the case. The Debtor disclosed assets of $36 million and debt totaling $48 million as of the Chapter 11 filing. In its schedules, the Debtor disclosed $22,314,854 in assets and $49,555,487 in liabilities. The Debtor is represented by Heather Lennox, Esq., Carl E. Black, Esq., and Daniel M. Syphard, Esq., at Jones Day, as bankruptcy counsel. The Garden City Group, Inc., is the claims and noticing agent. The Debtor tapped Deloitte Financial Advisory Services LLP as restructuring advisor, and Houlihan Lokey Capital, Inc., as its investment banker. The U.S. Trustee appointed Beverly Laubert as patient care ombudsman. Franciscan Sisters of Chicago, the sole member of the Debtor, is providing $4.5 million in DIP loans. The DIP Lender is represented by George Mesires, Esq., and Daniel P. Strzalka, Esq., at Ungaretti & Harris LLP. The Bank of New York Mellon Trust Company, N.A., the bond trustee, is represented by Bruce H. White, Esq., and Clifton R. Jessup, Esq., at Greenberg Traurig LLP. Wells Fargo Bank, N.A., as Master Trustee, is represented by Daniel S. Bleck, Esq., at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., and John R. Weiss, Esq., at Duane Morris LLP. Sovereign Bank, provider of the Debtor's letter of credit facility, is also represented by John R. Weiss, Esq., at Duane Morris LLP. The Official Committee of Unsecured Creditors in the Chapter 11 cases of the Debtor is represented by McDonald Hopkins LLC as counsel. GSC GROUP: Ends December With $14.7 Million Cash ------------------------------------------------ In their monthly operating report for December 2011, GSCP, LLC, GSCP Group, Inc., GSC Active Partners, Inc., GSCP (NJ), Inc., GSCP (NJ) Holdings, L.P., and GSC Secondary Interest Fund had no income or expense transactions for the month. GSCP (NJ), L.P., reported a net loss of $740,000 on $153,800 of revenue for the month. Professional fees paid totaled $1.49 million. GSCP (NJ) had total cash of $14.66 million at the end of the month. A copy of the December 2011 monthly operating report is available for free at http://bankrupt.com/misc/GSC_Dec2011_MOR.pdf About GSC Group Florham Park, New Jersey-based GSC Group, Inc. -- http://www.gsc.com/-- was a private equity firm that specialized in mezzanine and fund of fund investments. Originally named Greenwich Street Capital Partners Inc. when it was a subsidiary of Travelers Group Inc., GSC became independent in 1998 and at one time had $28 billion of assets under management. Market reverses, termination of some funds, and withdrawal of customers' investments reduced funds under management at the time of bankruptcy to $8.4 billion. GSC Group, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-14653) on Aug. 31, 2010. Michael B. Solow, Esq., at Kaye Scholer LLP, served as the Debtor's bankruptcy counsel. Epiq Bankruptcy Solutions, LLC, is the Debtor's notice and claims agent. Capstone Advisory Group LLC served as the Debtor's financial advisor. The Debtor estimated its assets at $1 million to $10 million and debts at $100 million to $500 million as of the Chapter 11 filing. Since Jan. 7, 2011, the Debtors have been operated by James L. Garrity Jr., as Chapter 11 trustee for the Debtors. The Chapter 11 trustee tapped Shearman & Sterling LLP as his counsel, and Togut, Segal & Segal LLP as his conflicts counsel. No committee of unsecured creditors has been appointed in the case. The Chapter 11 trustee completed the sale of business in July 2011 and filed a liquidating Chapter 11 plan and explanatory disclosure statement in late August. The bankruptcy court authorized the trustee to sell the business to Black Diamond Capital Finance LLC, as agent for the secured lenders. Proceeds were used to pay secured claims. The price paid by the lenders' agent was designed for full payment on $256.8 million in secured claims, with $18.6 million cash left over. Black Diamond bought most assets with a $224 million credit bid, a $6.7 million note, $5 million cash, and debt assumption. A minority group of secured lenders filed an appeal from the order allowing the sale. Through a suit in state court, the minority lenders failed to halt Black Diamond from completing the sale. The Chapter 11 Trustee and Black Diamond have filed rival repayment plans for GSC Group. As reported in the TCR on Dec. 16, 2011, Hilary Russ at Bankruptcy Law360 related that the Chapter 11 trustee for GSC Group, Inc., reached a handshake deal on Dec. 13, 2011, ending a bitter dispute with Black Diamond that delayed a $235 million asset sale. Adam Goldberg, Esq., and Douglas Bacon, Esq., at Latham & Watkins, represent Black Diamond Capital Management, LLC, as counsel. Patrick J. Nash, Jr., Esq. and Paul Wierbicki, Esq. of Kirkland & Ellis LLP serve as counsel to Black Diamond Capital Management, LLC. HOSTESS BRANDS: Reports $1.78 Million Operating Loss in January --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Hostess Brands Inc. reported a $1.78 million operating loss for a month ended Feb. 4 on net sales of $187.4 million. The monthly operating report filed in bankruptcy court said that earnings before interests, taxes, depreciation and amortization in the month was $7.3 million. Contributing to the operating loss was $6.6 million in reorganization expenses and $2.4 million in depreciation. The net loss in part resulted from $2.6 million of interest expense. About Hostess Brands Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known for iconic brands such as Butternut, Ding Dongs, Dolly Madison, Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride, Twinkies and Wonder. Hostess has 36 bakeries, 565 distribution centers and 570 outlets in 49 states. Hostess filed for Chapter 11 bankruptcy protection early morning on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through 12-22056) in White Plains, New York. Debtor-affiliates that filed separate Chapter 11 petition are IBC Sales Corporation, IBC Trucking LLC, IBC Services LLC, Interstate Brands Corporation, and MCF Legacy Inc. Hostess Brands disclosed assets of $982 million and liabilities of $1.43 billion as of Dec. 10, 2011. Debt includes $860 million on four loan agreements. Trade suppliers are owed as much as $60 million. The bankruptcy filing was made two years after predecessors Interstate Bakeries Corp. and its affiliates emerged from bankruptcy (Bankr. W.D. Mo. Case No. 04-45814). Ripplewood Holding LLC, after providing $130 million to finance the plan, obtained control of IBC's business following the prior reorganization. Hostess Brands is privately held. The new owners pursued new Chapter 11 cases to escape from what they called "uncompetitive and unsustainable" union contracts, pension plans, and health benefit programs. In 2011, Hostess retained Houlihan Lokey to explore sales of its smaller assets and individual brands. Houlihan Lokey oversaw the sale of Mrs. Cubbison's to Sugar Foods Corporation for $12 million, but was unable to sell any of Hostess' core assets. Judge Robert D. Drain oversees the case. Hostess has hired Jones Day as bankruptcy counsel; Stinson Morrison Hecker LLP as general corporate counsel and conflicts counsel; Perella Weinberg Partners LP as investment bankers, FTI Consulting, Inc. to provide an interim treasurer and additional personnel for the Debtors, and Kurtzman Carson Consultants LLC as administrative agent. Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry Wilson, the head of turnaround and restructuring firm MAEVA Advisors, are representing the Teamsters union. Attorneys for The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union and Bakery & Confectionery Union & Industry International Pension Fund are Jeffrey R. Freund, Esq., at Bredhoff & Kaiser, P.L.L.C.; and Ancela R. Nastasi, Esq., David A. Rosenzweig, Esq., and Camisha L. Simmons, Esq., at Fulbright & Jaworski L.L.P. An official committee of unsecured creditors has been appointed in the case. The committee selected New York law firm Kramer Levin Naftalis & Frankel LLP as its counsel. Tom Mayer and Ken Eckstein will head up the legal team for the committee. The bankruptcy judge on Feb. 3 gave Hostess Brands final authority for $75 million in secured financing. The day following the Jan. 11 Chapter 11 filing, Hostess had secured interim approval for a $35 million loan. HUDSON HEALTHCARE: Ends December 2011 With $271,400 Cash -------------------------------------------------------- Hudson Healthcare Inc. disclosed total receipts of $917,500 and disbursements of $939,300 during December 2011. The company ended the month with $271,400 following a negative net cash flow of $21,700. During the month, net loss was $198 on $579,800 of net revenue. Payments to bankruptcy professionals totaled $145,200. A copy of the operating report is available at: http://bankrupt.com/misc/Hudson_Dec2011_MOR.pdf In the prior month, cash receipts were $4.20 million and disbursements totaled $4.20 million. A copy of the November MOR is available at: http://bankrupt.com/misc/Hudson_Nov2011_MOR.pdf About Hudson Healthcare Hudson Healthcare Inc. is a non-for-profit corporation formed under the laws of the State of New Jersey. Until the sale of Hoboken University Medical Center by the Hoboken Municipal Hospital Authority, the Debtor owned and managed the day-today operations of the Hospital on the Authority's behalf pursuant to a Manager Agreement dated Feb. 1, 2007. Other than certain contract rights, other intangibles, and approximately 12 vehicles, the Debtor did not own any Hospital assets. Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets and debt of less than $50 million. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Attorneys at Trenk, DiPasquale, Webster, Della Fera & Sodono, P.C., in West Orange, N.J., serve as counsel to the Debtor. Daniel T. McMurray, the patient care ombudsman, has tapped Neubert, Pepe & Monteith, P.C., as his counsel effective Aug. 25, 2011. The Official Committee of Unsecured Creditors of Hudson Healthcare has retained Sills Cummis & Gross P.C., in Newark, N.J., as its counsel, nunc pro tunc to Aug. 12, 2011. JH Cohn LLP serves as Financial Advisor to the Committee. Epiq Bankruptcy Solutions, LLC, is the Claims and Noticing Agent and Solicitation Agent. HUSSEY COPPER: Debtor Has $2-Mil. Profit in November ---------------------------------------------------- HCL Liquidating, formerly Hussey Copper Ltd., disclosed net earnings of $2.00 million on $7.16 million of revenue during the month ended Nov. 30, 2011. Restructuring costs during the period was $1.3 million. The Debtor had total assets of $87.76 million and current liabilities of $8.36 million and total secured debt of $49.78 million as of Nov. 30, 2011. A copy of the operating report is available at: http://bankrupt.com/misc/Hussey_HCL_Nov2011_MOR.pdf On a stand-alone basis, Hussey Copper Corp. had $809,000 in assets and $2,000 in liabilities as of Nov. 30, 2011. The Debtor had $0 net earnings following $30,000 in revenue and $30,000 in operating costs during the month of November. Copies of the November 2011 operating reports filed by affiliates Cougar Metals Inc., and Hussey Exports Ltd., Hussey Copper Corp. are available at: http://bankrupt.com/misc/Hussey_Cougar_Nov2011_MOR.pdf http://bankrupt.com/misc/Hussey_Exports_Nov2011_MOR.pdf http://bankrupt.com/misc/Hussey_Nov2011_MOR.pdf http://bankrupt.com/misc/Hussey_OA_Nov2011_MOR.pdf http://bankrupt.com/misc/Hussey_Orbie_Nov2011_MOR.pdf About Hussey Copper Hussey Copper Corp., based in Leetsdale, Pennsylvania, is one of the leading manufacturers of copper products in the United States. Hussey Copper was founded in Pittsburgh in 1848. The Company and its affiliates, which operate one manufacturing facility in Leetsdale and two facilities in Eminence, Kentucky, manufacture "a wide range of value-added copper products and copper-nickel products. The Company has more than 500 full-time employees. Hussey Copper Corp. filed a Chapter 11 petition (Bankr D. Del. Case No. 11-13010) on Sept. 27, 2011, with a deal to sell substantially all assets. Five other affiliates also filed separate petitions (Case Nos. 11-13012 to 11-13016). Hussey Copper Ltd. estimated $100 million to $500 million in assets and debts. Hussey Copper Corp. estimated up to $50,000 in assets and up to $100 million in debts. Mark Minuti, Esq., at Saul Ewing LLP, serves as counsel to the Debtors. Donlin Recano & Company Inc. is the claims and notice agent. The Debtors tapped Winter Harbor, LLC in substitution for Huron Consulting Services LLC. An official creditors' committee has been appointed in the case. The panel selected Lowenstein Sandler PC as counsel. The panel selected FTI Consulting, Inc. as restructuring and financial advisor. The stalking horse bidder, KHC Acquisitions LLC, a unit of Kataman Metals LLC, is represented in the case by David D. Watson, Esq., and Scott Opincar, Esq., at McDonald Hopkins LLC, in Cleveland. Counsel to PNC Bank NA, as lender, issuer and agent for the Debtors' secured lenders, are Lawrence F. Flick II, Esq., Blank Rome LLP, in New York, and, Regina Stango Kelbon, Esq., at Blank Rome LLP, in Wilmington. The Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware approved the name change of Hussey Copper Corp. et al., to HCL Liquidation Ltd. US private equity firm Patriarch Partners officially acquired Hussey Copper on Dec. 16, 2011. The buyout firm of distressed debt mogul Lynn Tilton acquired Hussey Copper for $107.8 million in a nine-hour, 34-round auction. ********* 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. 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