/raid1/www/Hosts/bankrupt/TCR_Public/120912.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, September 12, 2012, Vol. 16, No. 254
Headlines
100 S UNIVERSITY: Case Summary & Largest Unsecured Creditor
2655 BUSH: Seeks Dismissal of Case After Closing Asset Sale
A&S GROUP: Mosaics Seller Files for Chapter 11 in Atlanta
A&S GROUP: Case Summary & 20 Largest Unsecured Creditors
AMERICAN AIRLINES: Committee Backs Equity for New CBAs
AMERICAN AIRLINES: Amer. Eagle Seeks to Impose New Labor Terms
AMERICAN REALTY: Moody's Reviews 'Ba2' Rating for Upgrade
ASHLAND UNIVERSITY: Moody's Reviews 'Ba3' Rating for Downgrade
ATLANTIC & PACIFIC: Selling Food Emporium Chain
BC CAPITAL: Sued for Failing to Report Madoff, MF Global Exposure
BELLMARK RECORDS: Producer Wants Judge to Say He Owns 'Whoomp!
BENADA ALUMINUM: Can Hire Triton Capital as Financial Advisor
BENADA ALUMINUM: Brad Aldrich Approved as CRO
BENADA ALUMINUM: Can Continue Using Lenders' Cash Thru January
BENADA ALUMINUM: Sale Hearing Set for Sept. 25
BERJAC OF OREGON: Sec. 341 Creditors' Meeting Set for Oct. 4
BERLEY ASSOCIATES: Case Summary & 9 Unsecured Creditors
BJ'S WHOLESALE: Moody's Cuts Corp. Family Rating to 'B2'
CANTRELL/CUTTER: Reaches Accord Over Pension Contribution
CANYONS AT DEBEQUE: Amends List of Largest Unsecured Creditors
CBS I: Disclosure Statement Hearing on Oct. 23
CDC CORP: Can Employ Harshman Phillips as Tax Accountants
CDC CORP: Asks Court to Dismiss Objection to Aug. 7 Notice of Sale
CDH GLOBAL: CFTC Obtains Injunction Amid Fraudulent Conduct
CHEMTURA CORP: Term Loan Increase No Impact on Moody's 'Ba3' CFR
CIRCUS & ELDORADO: Noteholders Reject Chapter 11 Plan
CIT GROUP: Tyco's Tax-Sharing Claim Upheld on Appeal
CRAVEN PROPERTIES: Seeks Approval of McManus as Chapter 11 Counsel
CRAVEN PROPERTIES: Files Schedules of Assets and Liabilities
DECISION INSIGHT: Moody's Cuts CFR/PDR to 'B3'; Outlook Stable
DELTA PETROLEUM: John Young Named as CEO, Seth Bullock as CFO
DIGITAL GENERATION: S&P Cuts CCR to 'B+'; Still on Watch Negative
DISTHENE GROUP: Receivership Order Resolves Stockholder Fight
DJO GLOBAL: S&P Lowers CCR to 'B-' on Continuing High Leverage
DVORKIN HOLDINGS: Amends List of Top Unsecured Creditors
EASTGATE TOWER: Hiring Bryan Cave as Bankruptcy Counsel
EASTMAN KODAK: Makes Changes to Align With Restructuring Plan
EASTMAN KODAK: Cuts 1,000 Jobs as Cash Falls 36% in Chapter 11
EMAK WORLDWIDE: Sues Ropes & Gray Over Shareholder Fallout
EVERGREEN TANK: S&P Affirms 'B' Corp. Credit Rating on Refinancing
FAIRWAY COMMONS: Court Dismisses Chapter 11 Case
FIRST COMMERCIAL: Closed; Republic Bank & Trust Assumes Deposits
FIRSTFED FINANCIAL: Holdco Seeks Protective Order
FR 160: Flagstaff Ranch Golf Club Seeks Case Dismissal
FUNDEX GAMES: Board Game Maker Files for Bankruptcy in Indiana
GARDA WORLD: Moody's Reviews 'B1' CFR/PDR for Downgrade
GENE CHARLES: Schedules of Assets & Debts Due Sept. 14
GENE CHARLES: Wants to Employ Weir & Partners as Co-Counsel
GRANITE DELLS: Faces Investor's Scrutiny Over Ranch Land
HARRISBURG, PA: Gov. Corbett Blasts Suit Challenging Takeover
HAWKER BEECHCRAFT: Seeks OK for $2.9MM Land Sale to Wichita
HILL FARM: Case Summary & 15 Unsecured Creditors
HW HEARTLAND: Sec. 341 Creditors' Meeting Set for Oct. 2
IAMGOLD CORP: Moody's Assigns 'Ba3' CFR/PDR; Outlook Stable
IAMGOLD CORP: S&P Gives 'BB-' Corp. Credit Rating; Outlook Stable
ICP ASSET: Founder Settles SEC Lawsuit Over CDO Fraud
J & J DEVELOPMENTS: Taps Davis & Smith to Defend ONB Bank Suit
J & J DEVELOPMENTS: Gets Interim OK to Hire Redmond as Counsel
JCC INTERNATIONAL: Case Summary & 20 Largest Unsecured Creditors
JEFFERSON COUNTY: Residents Say Illegal Swaps Cost County $372MM
JOHN V. WARREN: Files for Chapter 7 Liquidation
K-V PHARMACEUTICAL: D.C. Court Dismisses Lawsuit Against FDA
KYANITE MINING: Judge Enters Liquidation Order
LA SHER OIL: Case Summary & 20 Largest Unsecured Creditors
LANDMARK FUND: Case Summary & 13 Unsecured Creditors
LIGHTSQUARED INC: U.S. Trustee Joins Opposition to Bonuses
LOCAL INSIGHT: Moody's Cuts Ratings on Two Note Classes to 'C'
MANAMO LLC: Voluntary Chapter 11 Case Summary
MEDICAL DEVELOPMENT: Wells Fargo Awarded $30-Mil. Judgment
MF GLOBAL: Holding Company Has Cash Use Through March
MONEY TREE: Trustee Selling 46 Branches to Rival for $4.4MM
MOSDOS CHOFETZ: Case Summary & 17 Unsecured Creditors
NATIVE WHOLESALE: Court OKs Posting of Add'l $2MM Cash Collateral
NATIVE WHOLESALE: Taps Cuddy & McCarthy to Assist in NM Action
NCR CORP: Moody's Assigns 'Ba1' CFR/PDR; Outlook Stable
NRG ENERGY: Moody's Assigns 'B1' Rating to New Sr. Unsec. Notes
NOBLE IRON: $219,000 Default Judgment on Unit Expired
NORTH BY NORTHWEST: Hiring Thomas Tierney as Bankruptcy Counsel
OAKDALE PUBLIC: Moody's Cuts Rating on 2002 Revenue Bonds to 'B1'
OXLEY DEVELOPMENT: Files Schedules of Assets and Liabilities
PACIFIC MONARCH: Disclosure Statement Hearing on Sept. 20
PARK LANE: Inks Deal to Resume Foreclosure, Dismiss Case
PEAK RESORTS: 3 Affiliates Tap Thomas Hatfield as Accountant
PEAK RESORTS: Amends Application to Employ ARM as Mgt. Consultant
PEAK RESORTS: Committee Wants to Retain Cole Schotz as Counsel
PEAK RESORTS: Can Employ Harris Beach as Bankruptcy Counsel
PEMCO WORLD: Critical Vendor Payments to Boeing Approved
PEREGRINE FINANCIAL: CFTC Wants Customer Distribution Slowed Down
PLAINS EXPLORATION: Moody's Reviews 'Ba3' CFR for Downgrade
PLAINS EXPLORATION: S&P Puts 'BB' Corp. Credit Rating on Watch Neg
PMI GROUP: Exclusive Plan Filing Period Extended to Oct. 19
POINT BLANK: Settlement With Committee, Privet Approved
RICHMOND JOINT: Moody's Corrects Revenue Bonds Rating From Ba1
RIVERSIDE COUNTY: Moody's Corrects Revenue Bonds Rating From Ba1
RITZ CAMERA: C&A Marketing Acquires Assets at Bankruptcy Auction
ROBERTS LAND: Farm Credit Still Objects to Plan
SANDS CASTLES: Status Conference in Houston on Sept. 21
SAN MATEO CONVALESCENT: Hospital Closes Doors; Patients Moved
SHILO INN: Second Effort at Plan Has Sept. 20 Hearing
SKY KING: Sec. 341 Creditors' Meeting Set for Oct. 4
SKY KING: Status Conference Set for Oct. 10
SOLYNDRA LLC: Reorganization Plan Going to Creditors for Vote
SOLYNDRA LLC: Employs ENVIRON International as Consultant
SOLYNDRA LLC: Wants Loan Commitment End Date Extended to Oct. 27
SOLYNDRA LLC: Wants to Employ W&S as Special Litigation Counsel
SOLYNDRA LLC: To Present Plan for Confirmation on Oct. 17
SP NEWSPRINT: Takes Lenders' $145 Million Cash, Debt Offer
SP NEWSPRINT: DIP Loan Increased to $67 Million
SP NEWSPRINT: Wants Plan Filing Period Extended to Oct. 10
STATION CASINOS: Moody's Affirms 'B3' CFR/PDR; Outlook Positive
STATION CASINOS: S&P Gives 'B+' Rating on $775M Sr. Secured Credit
SUNDANCE BUSINESS: Voluntary Chapter 11 Case Summary
TBM EQUITIES: Case Summary & 4 Unsecured Creditors
T.M.B. BUILDERS: Case Summary & 10 Largest Unsecured Creditors
THELEN LLP Trustee Says Ex-Partners Deserve Hardship Settlements
TUSKEENA GREENVILLE: Voluntary Chapter 11 Case Summary
ULTIMATE PRINT: Case Summary & 20 Largest Unsecured Creditors
UNIVERSAL GROUND: Voluntary Chapter 11 Case Summary
VALENCE TECHNOLOGY: U.S. Trustee Forms Creditors Committee
VALENCE TECHNOLOGY: Court Approves William Patterson as CRO
VALENCE TECHNOLOGY: Taps Steve Grimshaw as Chapter 11 Consultant
VALENCE TECHNOLOGY: Court OKs Streusand Landon as Attorneys
VANDERRA RESOURCES: Files for Chapter 11 in Texas
VANDERRA RESOURCES: Voluntary Chapter 11 Case Summary
VITRO SAB: Asks Appellate Court to Reverse and Enforce Plan
W.R. GRACE: Delays Disappoint Shareholders, Creditors
WAGSTAFF MINNESOTA: Sale of Remaining KFC Stores in Process
WECHSLER & CO: Has 50% Plan; Disclosures Hearing Nov. 1
WESTERN FINANCIAL PLANNING: Court Appoints Receiver
WJO INC: Court Okays Alfred T. Giuliano as Chapter 11 Trustee
WJO INC: Maschmeyer Karalis Approved as Ch 11 Trustee's Counsel
WJO INC: Court Okays Cash Collateral Use Until Sept. 30
WJO INC: Ch 11 Trustee Has OK to Hire Giuliano as Accountant
* Moody's Says Global Spec-Grade Default Rate Up 3% in August
* Minnesota Bank Failure Brings Year's Total to 41
* Junk Default Rate Rises in August, Distress Rate Down
* Judiciary Continues Cost Savings, Closes Court Facilities
* Sanctions Must be Imposed Before Appeal Is Decided
* Best Lawyers Names Singerman Bankruptcy "Lawyer of the Year"
* Ronald Rubin Joins Hunton & Williams as Partner in Washington
* Upcoming Meetings, Conferences and Seminars
*********
100 S UNIVERSITY: Case Summary & Largest Unsecured Creditor
-----------------------------------------------------------
Debtor: 100 S University Blvd Unit 12 Land Trust
100 South University #12
Denver, CO 80209
Bankruptcy Case No.: 12-28592
Chapter 11 Petition Date: September 6, 2012
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Sidney B. Brooks
Debtor's Counsel: Brad Daybell, Esq.
THE LAW OFFICE OF BRAD DAYBELL
11001 W. 120th Ave., Suite 400
Broomfield, CO 80021
Tel: (303) 625-4015
Fax: (303) 625-4017
E-mail: braddaybell@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company's list of 20 largest unsecured creditors contains just
one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Merchants Mortgage Bank loan $1,450,000
and Trust
7400 E. Crestline
Circle Ste 250
Greenwood Village,
CO 80111
The petition was signed by Ricardo Sarabia.
Related entities that earlier sought Chapter 11 protection:
Petition
Debtor Case No. Date
------ -------- ----
Jose Ricardo Sarabia Martinez 12-25768 07/27/12
2655 BUSH: Seeks Dismissal of Case After Closing Asset Sale
-----------------------------------------------------------
2655 Bush LLC is seeking dismissal of its Chapter 11 case.
2655 Bush, a single asset real estate, completed the sale of its
real property commonly known as 2655 Bush Street, San Francisco,
California. The sale closed Aug. 16, 2012.
Through orders entered on Aug. 13, 2012, the Court authorized the
sale of the Debtor's asset and disbursement of the proceeds of
sale in the satisfaction of all secured and unsecured claims
against the Debtor's estate. The Debtor caused the proceeds of
sale to be disbursed from escrow in satisfaction of all secured
and unsecured claims.
There are only two administrative claims against the estate. The
Office of the United States Trustee has received payment in full
of all U.S. Trustee fees and consents to dismissal of the case.
The Debtor's counsel will receive payment from the Debtor or its
sole member following dismissal of the case.
All administrative, secured and unsecured claims have been paid in
full, except for the fees and costs of Debtor's counsel, which
have been provided for.
Although $500,000 was reserved in escrow to provide a source of
payment for disputed claims, there are no disputed claims and all
claims of every nature and type have been paid in full. The
holdback performs no useful purpose, and the Debtor submits that
it should be released to the Debtor or its sole Member.
Greenwich Approved as Investment Banker
The Bankruptcy Court also has approved the Debtor's employment of
Greenwich Group International as investment banker. The objective
of the Debtor's Chapter 11 case has been to sell the property so
as to provide payment in full for all secured and unsecured
creditors and to recover the substantial equity held by its sole
Member, Ernest McNabb. To sell the Property, the Debtor retained
Greenwich to act as its investment banker prior to the
commencement of the Chapter 11 case. Greenwich continued to
perform investment banking services to the Debtor postpetition.
With Greenwich's assistance, the Debtor negotiated the instant
sale of the Property with Thompson-Dorfman Partners LLC and its
affiliate, the predecessor in interest of AREOF VI BUSH STREET,
LLC, a Delaware limited liability company for $14.5 million.
According to the Debtor's court filings, Greenwich has well and
truly performed its services as an investment banker, and deserves
credit for the successful sale of the Property.
Greenwich is compensated for its services under the Engagement
Agreement through a success fee, measured as a percentage, 3%, of
the transaction value.
The firm attests that it is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
About 2655 Bush
San Francisco, California-based 2655 Bush LLC owns a building and
associated parking garage located at 2655 Bush Street, at the
intersection of Divisadero Street, in San Francisco, California.
2655 Bush LLC filed for Chapter 11 (Bankr. N.D. Calif. Case No.
12-30388) on Feb. 8, 2012. Judge Thomas E. Carlson presides over
the case. The company disclosed assets of $15.04 million and
liabilities of $12.4 million.
A&S GROUP: Mosaics Seller Files for Chapter 11 in Atlanta
---------------------------------------------------------
Tucker, Georgia-based A&S Group, Inc., filed a Chapter 11 petition
(Bankr. N.D. Ga. Case No. 12-72662) in Atlanta, on Sept. 9, 2012.
The Debtor is an importer and distributor of decorative ceramic
tile and mosaics, and natural stone products, most of which are
used for wall and floor applications and counter and table tops in
residential and commercial properties. The Debtor's customer base
includes local, regional and national retailers, home centers,
developers and retailers.
The resolution authorizing the bankruptcy filing says that the
Debtor is unable to pay its debt as they generally mature and it
is in the best interests of the Company and its shareholders for
the company to file for bankruptcy protection.
The Debtor estimated assets and debts of $10 million to
$50 million.
The Debtor said in a court filing it suffered erosion in sales due
to decline in the housing and home improvement channels, the
general downturn in the construction business and the over-all
downturn in the economy as well as demands for significant price
decreases by several of its key customers and increased foreign
competition. The Debtor has concurrently experienced increases in
operating costs as a result of increased product costs, rising
fuel costs and unfavorable exchange rate variances. These factors
resulted in significant losses to Debtor, which it was unable to
fully ameliorate in spite of cash infusions from its owners, sales
and cost-cutting initiatives.
Based on its current operations, the Debtor determined that it did
not have current sales, profits or financing to continue without
the assistance of the Bankruptcy Court. Recently, the Company has
undergone a down-sizing closing its South Alabama, Birmingham,
Alabama and Charleston, South Carolina distribution centers.
The Debtor's plan is to consolidate operations in its local
distribution plant, discontinue its sales and distributions of
slab materials such as marble and granite which provides little
profit to the Debtor as compared to its cost, and decrease its
manpower to a manageable level for its one distribution facility.
No first day motions were filed other than a motion to extend the
Debtor's Sept. 24 deadline to file its schedules of assets and
liabilities and statement of financial affairs. The Debtor wants
the deadline extended to Oct. 8.
A&S GROUP: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: A&S Group, Inc.
aka A&S Marbel and Granite Imports
5351 Royal Woods Parkway
Tucker, GA 30084
Bankruptcy Case No.: 12-72662
Chapter 11 Petition Date: September 9, 2012
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
About the Debtor: The Debtor is an importer and distributor of
decorative ceramic tile and mosaics, and natural
stone products, most of which are used for wall
and floor applications and counter and table
tops in residential and commercial properties.
The Debtor's customer base includes local,
regional and national retailers, home centers,
developers and retailers.
Debtor's Counsel: A. Keith Logue, Esq.
LAW OFFICE OF A. KEITH LOGUE
3423 Weymouth Ct.
Marietta, GA 30062
Tel: (770) 321-5750
Fax: (770) 321-5751
E-mail: keith@logue-law.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Sami Durukan, president.
Debtor's List of 20 Its Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Private Bank of Buckhead Guaranty $2,252,423
Three Piedmont Center
Ste 210
Atlanta, GA 30305
Corner Stone Bank Guaranty $1,463,780
2060 Mount Paran Rd
NW Suite 100
Atlanta, GA 30327
State Bank Guaranty $769,878
P.O. Box 4748
Macon, GA 31208
Appalachian Development Guaranty $753,175
Corup-SBA Loan
3531 Pelham Rd Ste 100
Greenville, SC 29615
GROUP D Loans $631,493
c/o Kaya Dido
P.O. Box 1184
Tucker, GA 30085
Private Bank of Buckhed Guaranty $396,967
Three Piedmont Ctr
Ste 210
Atlanta, GA 30305
Stone World India/Earth Trade Account $300,344
Stone
103 B. Mehrauli Rd
New Dahli, India
Selig Enterprises Inc Lease $287,859
1100 Spring St, Ste 550
Atlanta, GA 30309
State Bank Guaranty $227,664
P.O. Box 4748
Macon, GA 31208
Maq Stone $174,691
State Bank Guaranty $137,568
Sava Stone Trade Account $131,025
Danesi USA, Inc. Trade Account $122,967
Graniti Marmi Trade Account $76,407
Pietre Spa
Afyon Mermer Sanayias Trade Account $75,028
Granexpo Do Brasil Trade Account $71,498
Riva Marble Trade Account $67,380
Alia Stone Trade Account $63,844
Private Bank of Buckhead Guaranty $56,428
Vitoria Stone Trade Account $55,753
AMERICAN AIRLINES: Committee Backs Equity for New CBAs
------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the AMR Corp. creditors' committee supports the idea
of giving stock and $14 million in cash to the flight attendants'
and mechanics' unions in return for their consent to new
concessionary contracts.
According to the report, the official creditor representative for
the parent of American Airlines Inc. pointedly told the pilots
that the committee supports giving neither cash nor stock unless
the flight deck crews change their minds and ratify the contract
they voted down in August. The other eight unions at American
Airlines all ratified their contracts. The committee said in its
filing that it hopes to come to agreement by the year's end on the
question of whether AMR will remain independent or merge.
There will be a Sept. 12 hearing in U.S. Bankruptcy Court for
approval of the two union contacts.
The report relates that the U.S. Trustee opposes the cash
payments, saying they are prohibited by bankruptcy law. The
committee points to prior cases in New York where judges approved
similar payments. The flight attendants are to receive $7 million
in cash and 3% of the stock in reorganized AMR. The mechanics are
to receive $7 million and 4.8% of the equity.
The report notes that the committee said it "reluctantly" supports
giving away equity that dilutes what unsecured creditors will
receive in a reorganization. Among the nine AMR unions, only the
pilots voted down their contract. At a hearing last week, the
bankruptcy judge imposed 20% in concessions on the pilots.
The report relates that for agreeing to new contracts voluntarily,
AMR only received 17% in concessions from other unions. AMR
achieved less success with workers at the American Eagle feeder
airline subsidiary. On Sept. 7, the airline filed papers in
bankruptcy court to impose new contract terms on mechanics,
dispatchers and ground-school instructors, all represented by the
Transport Workers Union. American Eagle flight attendants,
represented by another union, ratified a new contract, with 87%
voting "yes."
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.
AMR'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, Esq., John Lyons, Esq., Felecia Perlman, Esq., and
Jay Goffman, Esq., 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 AIRLINES: Amer. Eagle Seeks to Impose New Labor Terms
--------------------------------------------------------------
Jacqueline Palank at Dow Jones' Daily Bankruptcy Review reports
that AMR Corp.'s American Eagle regional airline says it is
"running out of time" to secure the labor concessions its survival
depends on and is asking a bankruptcy judge to let it impose new
terms for several holdout groups of workers.
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.
AMR'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, Esq., John Lyons, Esq., Felecia Perlman, Esq., and
Jay Goffman, Esq., 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 REALTY: Moody's Reviews 'Ba2' Rating for Upgrade
---------------------------------------------------------
Moody's Investors Service affirmed Realty Income Corporation's (O)
Baa1 senior unsecured rating, and revised the rating outlook to
negative, from stable. Simultaneously, Moody's placed American
Realty Capital Trust's (ARCT) Ba2 issuer rating on review for
possible upgrade. These actions follow the announcement that
Realty Income entered into a definitive agreement to acquire all
of the outstanding shares of American Realty Capital Trust in a
transaction valued at $2.9 billion that is expected to close
during the 4Q12 or early 1Q13. Once the transaction closes,
American Realty Capital Trust's issuer rating will be withdrawn
since they have no outstanding securities.
Ratings Rationale
Realty Income's outlook revision reflects the integration risk of
such a large portfolio. The ARCT portfolio has a significant
amount of non-retail properties, which is a shift in property type
concentration for Realty Income. Although Realty Income has been
successful in the past with integrating large portfolios, this is
the largest transaction yet and some of American Realty Income
Trust's businesses require different operating skills than Realty
Income's traditional triple-net lease tenants, which add operating
complexity to Realty Income's business model.
Moody's notes that following the acquisition of American Realty
Capital Trust, Realty Income will be the largest triple-net lease
REIT with a deeper and broader triple-net lease real estate
platform in line with Realty Income's goals. This transaction
provides other key benefits to Realty Income's credit profile.
First, revenue generated by investment grade tenants increases
from 19% to 34%. Second, it increases tenant diversification so
that rental revenues from the top 15 tenants decreases from 49% to
42%. Third, industry diversification is increased such that rental
revenues from the top ten industries decreases from 73% to 64% and
retail property revenues decrease from 86% to 77%. Fourth, the
lease maturity profile is increased from 11.1 to 11.4 years.
The negative outlook reflects Moody's expectation that Realty
Income will need time to integrate the American Realty Capital
Trust portfolio, while continuing to produce strong consistent
earnings.
A return to a stable outlook will reflect a smooth portfolio
integration on a leverage neutral basis while continuing to
operate with a conservative capital strategy. Downward rating
pressure would reflect Realty Income's inability to integrate this
large acquisition on a leverage-neutral basis, long-term growth in
tenant or industry concentrations, secured debt approaching 10% of
gross assets, or a decline in fixed charge coverage below 2.7x
(including capitalized interest) for a sustained period of time.
Moody's will continue to monitor the progress and consummation of
the proposed American Realty Capital Trust acquisition, as well as
the final capital structure. Moody's expects to conclude its
analysis during the 4Q12 or early 1Q13 after the expected closing
of the transaction.
The following ratings were affirmed with a negative outlook:
Realty Income -- Senior unsecured debt at Baa1; senior unsecured
debt shelf at (P)Baa1; preferred stock at Baa2; preferred stock
shelf at (P)Baa2; and subordinate debt shelf at (P)Baa2.
The following rating was placed on review for possible upgrade:
American Realty Capital Trust, Inc. -- issuer rating at Ba2.
The principal methodology used in this rating was Global Rating
Methodology for REITs and Other Commercial Property Firms
published in July 2010.
The last rating action with respect to Realty Income was on
November 18, 2011 when Moody's affirmed Realty Income's Baa1
senior unsecured rating with a stable outlook. The last rating
action with respect to American Realty Capital Trust was on April
5, 2012 when Moody's upgraded American Realty Capital Trust's
issuer rating to Ba2 with a stable outlook.
Realty Income Corporation [NYSE: O], headquartered in Escondido,
California, USA, is a real estate investment trust (REIT) that
invests in free-standing, single-tenant retail properties. At June
30, 2012, Realty Income owned 2,762 properties located in 49
states leased to 136 retail and commercial enterprises doing
business in 38 industries, with total assets of $4.6 billion and
stockholders' equity of $2.5 billion.
American Realty Capital Trust, Inc., located in New York, NY, is a
publicly traded REIT that acquires single-tenant, freestanding
properties net-leased long term to investment grade and
creditworthy tenants. At June 30, 2012, ARCT had $2.1 billion in
assets and $1.1 billion in equity.
ASHLAND UNIVERSITY: Moody's Reviews 'Ba3' Rating for Downgrade
--------------------------------------------------------------
Moody's Investors Service has downgraded Ashland University's
rating to Ba3 from Ba1. The rating remains under review for
possible further downgrade. Ashland's rating was first placed
under review on June 5, 2012. The current action affects
approximately $37 million of Series 2010 bonds issued through the
Ohio Higher Educational Facility Commission.
Summary Rating Rationale
The downgrade reflects a higher debt burden than anticipated and
weakened cash flow, causing a potential covenant violation which
could result in acceleration of the university's debt. In
addition, the downgrade reflects very thin liquidity that is
insufficient to cover demand debt, a weakening balance sheet,
steep decline in net tuition revenue based on unaudited FY 2012
financials, and projections of another decline in total enrollment
in fall 2012.
Moody's review will focus on cash flow projections specifically as
it relates to scheduled debt service, the outcome of discussions
between the university and one of its private lenders regarding a
potential covenant violation, and an update on enrollment for the
fall 2012 semester. Moody's review period is expected to conclude
within 15 days.
Challenges
* Rising debt and thin balance sheet cushion with $10.6 million
of expendable resources (excludes plant equity) in FY 2011
covering pro-forma debt and operations 0.11 times and 0.10 times.
Expendable financial resources dipped to $3.5 million as of May
31, 2012 based on preliminary FY 2012 financials.
* Debt structure, which includes secured variable rate loans from
three separate banks allowing acceleration in the event of a
covenant violation, cross default provisions, and bullet
maturities. The university's monthly liquidity is insufficient to
cover its demand debt, with FY 2011 monthly liquidity to pro-forma
demand debt of just 43%. The variable rate loans are not
synthetically fixed and these loans, therefore, expose the
university to interest rate risk. The first bullet maturity of
$17.9 million is scheduled for 08/21/14, which the university
plans to refinance before maturity.
* Extremely weak revenue generating position as a private college
in Ohio, a state with many public and private university options,
and poor demographics. This stiff competition from public and
private universities, as well as an anticipated decline in
enrollment expected in fall 2012, is a particular credit challenge
given the university's high dependence on student charges of 88%.
* Limited monthly liquidity of $17.6 million as of June 30, 2011,
a typically cash-poor period, providing just over 67 days of cash
and cash equivalents available to support operations. Management
estimates a decline in monthly liquidity at FYE 2012 (May 31) to
approximately $5.0 million, providing an even weaker cushion to
operating expenses and demand debt.
* Extended pledge payment schedule over a 20-year period for the
athletic complex, with pledges of $21 million received against a
$23 million goal and no concrete plans to materially pay down the
debt. The university has received $8.5 million of the pledges in
cash with $4.8 million unspent and a bullet payment of
approximately $19.5 million due at maturity on August 21, 2014.
* Management turnover within the last two years in key areas of
enrollment and fundraising.
Strengths
* Management's ability to adjust expenses to substantially
address a significant revenue shortfall due to an unanticipated
7.8% decline in fall 2011 enrollment generating near breakeven
operating performance of negative 0.4% in FY 2012 based on
unaudited financials. However, the operating margin is not
comparable to prior fiscal years given a change in the
university's fiscal year end to May 31 from June 30 and operating
performance for FY 2012 is inflated given higher expenses than
revenue generated in June 2012.
* Favorable history of fundraising evidenced by a three-year
average gift revenue of $10.1 million from FY 2009-FY 2011.
Moody's notes that a large portion of the university's gifts are
temporarily or permanently restricted. The university is planning
a comprehensive campaign.
* Approximately $18 million of the university's debt is
associated with pledges although Moody's notes that pledge
payments have been paid slower than anticipated. The university's
$37 million of fixed rate debt is amortizing with a 2024 maturity
and benefits from a cash funded debt service reserve fund.
Principal Rating Methodology
The principal methodology used in this rating was U.S. Not-for-
Profit Private and Public Higher Education published in August
2011.
ATLANTIC & PACIFIC: Selling Food Emporium Chain
-----------------------------------------------
Lisa Fickenscher, writing for Crain's New York Business, reports
that The Great Atlantic & Pacific Tea Co. has confirmed plans to
sell the Food Emporium brand.
According to Crain's, a spokesperson said A&P announced the plan
to its employees last week. The spokesman said the stores, its
leases and the brand are for sale. Duff & Phelps, a multi-service
banking firm, has been retained by A&P, the report adds.
According to Crain's, the company said in a statement, "We
commenced a marketing process of The Food Emporium in early
September. The Food Emporium represents a unique urban footprint
that requires a specific go-to-market strategy. Therefore, we've
made the decision to market these 16 Manhattan stores to a variety
of prospective buyers. The sale will enable parent company A&P to
support the company's long-term strategic vision to be the No. 1
food and drug store in every neighborhood it serves."
Crain's notes it has long been rumored that the company would sell
Food Emporium, which has 16 locations in New York City and one in
New Canaan, Conn. The Connecticut store is not part of the sale,
the report says.
According to Crain's, analysts believe the company will use the
proceeds of the Food Emporium brand to invest in its other brands.
A&P also owns Pathmark, Waldbaums, Superfresh and Food Basics.
Ron Burkle, chairman of The Yucaipa Cos., is chairman of A&P and
is directing its recovery.
About Great Atlantic & Pacific
Founded in 1859, Montvale, New Jersey-based Great Atlantic &
Pacific is a supermarket retailer, operating under a variety of
well-known trade names, or "banners" across the mid-Atlantic and
Northeastern United States.
A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y.
Case No. 10-24549) on Dec. 12, 2010, in White Plains, New York.
Before filing for bankruptcy in 2010, A&P operated 429 stores in
eight states and the District of Columbia under the following
trade names: A&P, Waldbaum's, Pathmark, Pathmark Sav-a-Center,
Best Cellars, The Food Emporium, Super Foodmart, Super Fresh and
Food Basics. A&P had 41,000 employees prior to the bankruptcy
filing.
In its petition, A&P reported total assets of $2.5 billion and
liabilities of $3.2 billion as of Sept. 11, 2010.
Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C.
Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J.
Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois,
served as counsel to the Debtors. Kurtzman Carson Consultants LLC
acted as the claims and notice agent. Lazard Freres & Co. LLC
served as the financial advisor. Huron Consulting Group served as
management consultant. Dennis F. Dunne, Esq., Matthew S. Barr,
Esq., and Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley &
McCloy LLP, represented the Official Committee of Unsecured
Creditors.
The Bankruptcy Court entered an order Feb. 27, 2012, confirming a
First Amended Joint Plan of Reorganization filed Feb. 17, 2012.
A&P consummated its financial restructuring and emerged from
Chapter 11 as a privately held company in March 2012.
A&P sold or closed stores during the bankruptcy proceedings. It
emerged from bankruptcy with 320 supermarkets. Among others, A&P
sold 12 Super-Fresh stores in the Baltimore-Washington area for
$37.83 million, plus the value of inventory. Thirteen other
locations didn't attract buyers at auction and were closed mid-
July 2011.
Mount Kellett Capital Management LP, The Yucaipa Companies LLC and
investment funds managed by Goldman Sachs Asset Management, L.P.,
provided $490 million in debt and equity financing to sponsor
A&P's reorganization plan and complete its balance sheet
restructuring. JP Morgan and Credit Suisse arranged a $645
million exit financing facility.
BC CAPITAL: Sued for Failing to Report Madoff, MF Global Exposure
-----------------------------------------------------------------
The U.S. Commodity Futures Trading Commission filed an emergency
action on Sept. 6, 2012, in the U.S. District Court for the
Northern District of Illinois to freeze assets under the control
of defendants Nikolai S. Battoo, BC Capital Group S.A., BC Capital
Group International Limited, BC Capital Management LLP, and BC
Capital Group Holdings S.A. (the BC Common Enterprise). The
action also seeks an order appointing a receiver for the BC Common
Enterprise and related entities, prohibiting the defendants from
destroying books and records, and granting the CFTC immediate
access to evidence.
The CFTC's complaint alleges that defendants operated a series of
commodity pools called "Private International Wealth Management"
that solicited more than $140 million from U.S. residents. The
complaint also alleges that defendants made fraudulent
misrepresentations and omissions in connection with significant
losses sustained by the PIWM pools through periodic account
statements and asset verification documents as well as through
telephone calls and letters to pool participants.
Specifically, defendants allegedly committed fraud in 2008 by
failing to disclose the PIWM pools' significant exposure to the
Bernard Madoff Ponzi scheme, as well as trading losses suffered by
other of Battoo's hedge funds in which the PIWM pools were
invested. In 2009, defendants sent asset verifications to pool
participants that the CFTC alleges overstated the value of the
PIWM pools' investments. Finally, in 2011, defendants allegedly
overstated the impact that the bankruptcy of MF Global, Inc. had
on the PIWM pools and used it as an excuse for refusing to return
pool participants' funds.
In the continuing litigation against the defendants the CFTC seeks
a permanent injunction from future violations of federal
commodities laws, permanent registration and trading bans, full
restitution to defrauded pool participants, disgorgement of any
ill-gotten gains, and the payment of appropriate civil monetary
penalties.
The CFTC appreciates the assistance of the U.S. Securities and
Exchange Commission (SEC) in this matter.
The CFTC Division of Enforcement staff responsible for this action
are Andrew Ridenour, Amanda Harding, David Slovick, Stephen
Turley, Carlin Metzger, Erica Bodin, Theodore Kneller, Kathleen
Banar, Rick Glaser and Richard Wagner.
BELLMARK RECORDS: Producer Wants Judge to Say He Owns 'Whoomp!
--------------------------------------------------------------
Brian Mahoney at Bankruptcy Law360 reports music producer Alvertis
Isbell asked a Texas federal judge on Thursday to end his 10-year
copyright dispute with publisher DM Records Inc. by declaring him
the rightful owner of hip-hop songs "Dazzey Duks" and "Whoomp!
(There It Is)," rebuffing DM's arguments that he sold it the
rights in a bankruptcy sale.
Mr. Isbell claimed in a motion for judgment as a matter of law
that he transferred "Dazzey Duks" and "Whoomp (There It Is)"
copyrights to his publishing company, Alvert Music, before selling
the assets, Bankruptcy Law360 relates.
The events giving rise to the suit begin with business conducted
by two companies, Alvert Music and Bellmark Records, each run by
Mr. Isbell. Bellmark was purportedly a record company, owning
sound recordings. Alvert Music is, and has been, a music
publishing company, which owns musical compositions and not sound
recordings.
During the early 1990's, Bellmark entered into writers agreements
to obtain composition rights to the Compositions for its
affiliated publishing company, Alvert Music. Bellmark retained
for itself the two sound recordings. In 1997, DM Records secured
licenses from both of Mr. Isbell's companies to exploit both the
musical compositions and sound recordings. In April of that year,
Bellmark filed a Chapter 11 bankruptcy petition, which was later
converted into a Chapter 7 petition. In October 1999, DM
purchased the assets of Bellmark from the bankruptcy estate,
including all of Bellmark's rights in the Compositions. Alvert
Music has not sought bankruptcy protection. Since that time, DM
allegedly has proceeded with regard to the Compositions in a
manner inconsistent with Alvert Music's ownership rights. In
2002, Mr. Isbell filed the lawsuit in the Northern District of
Texas. In 2004, that court transferred the matter, and the
magistrate judge referred it to the bankruptcy court in that same
year. In 2007, the bankruptcy court issued a report and
recommendation that the magistrate judge's referral be withdrawn,
and the undersigned judge agreed. Following an appeal of a
December 2008 order by the District Court, this case is now
pending once more before the District Court.
BENADA ALUMINUM: Can Hire Triton Capital as Financial Advisor
-------------------------------------------------------------
Benada Aluminum Products LLC won Bankruptcy Court permission to
employ Triton Capital Partners Ltd. as its exclusive financial
advisor and investment banker with respect to providing assistance
with turnaround management of the company, effective Aug. 6.
Among others, Triton will assist the Debtor in developing a plan
of reorganization, and in preparing due diligence materials and
assisting in negotiations relating to critical business and
current lending relationships.
Triton will charge $350 an hour for the services of the firm's
partners; $250 an hour for directors and vice presidents; $150 for
associates and analysts; and $75 for administrative personnel.
David J. Asmann, a partner at Triton, attests his firm represents
no interest adverse to the Debtor in matters upon which it is to
being engaged. However, Triton disclosed that from June 22, 2012
to Aug. 3, 2012, it was retained by Wells Fargo Bank, a secured
creditor of Benada, as the bank's financial advisor with respect
to assisting Wells Fargo with the financial analyses of Benada and
its business operations, solely for the bank's benefit. The
relationship terminated Aug. 3. Wells Fargo has given its consent
to the Debtor to retain Triton, provided that the firm cannot
represent the Debtor in any dispute involving Wells Fargo.
Benada has advanced $100,000 as retainer to Triton. Benada said
it does not owe any fees or costs to Triton prior to the
bankruptcy filing. Benada has agreed to indemnify Triton.
Triton may be reached at:
David J. Asmann
TRITON CAPITAL PARTNERS LTD.
566 West Lake Street, Suite 235
Chicago, IL 60661
Tel: 312-575-0190
E-mail: dasmann@tritoncap.com
About Benada
Benada Aluminum Products LLC was formed in 2011 to purchase assets
of two aluminum products manufacturing companies. It purchased
via 11 U.S.C. Sec. 363 the Sanford facility of Florida Extruders
International (Case No. 08-07761). It also purchased the assets
Miami, Florida-based Benada Aluminum of Florida Inc. The Debtor
has since consolidated operations and operates only out of its
location in Sanford.
The Company filed for Chapter 11 protection on Aug. 1, 2012
(Bankr. M.D. Fla. Case No. 12-10518). Judge Karen S. Jennemann
presides over the case. R. Scott Shuker, Esq., at Latham Shuker
Eden & Beaudine LLP, represents the Debtor. The Debtor estimated
between $10 million and $50 million in assets and debts.
Wells Fargo is represented by Michael Demont, Esq., and Jay Smith,
Esq., at Smith Hulsey & Busey, in Jacksonville, Florida. FTL
Capital is represented by Christopher J. Lawhorn, Esq., at Bryan
Cave LLP in St. Louis, Missouri.
BENADA ALUMINUM: Brad Aldrich Approved as CRO
---------------------------------------------
Benada Aluminum Products LLC sought and obtained Bankruptcy Court
permission to employ Transaction Data Processing Corporation as
restructuring advisors, and Brad Aldrich as chief restructuring
officer effective Aug. 1. Mr. Aldrich reports to the Company's
board of managers.
Pursuant to a Chief Restructuring Officer Agreement dated July 31,
Mr. Aldrich's term will be from July 31 until Dec. 31, 2013. The
term may be terminated at an earlier date or extended.
Benada will pay the firm a consulting fee of $350 per hour and
reimburse its necessary expenses.
About Benada
Benada Aluminum Products LLC was formed in 2011 to purchase assets
of two aluminum products manufacturing companies. It purchased
via 11 U.S.C. Sec. 363 the Sanford facility of Florida Extruders
International (Case No. 08-07761). It also purchased the assets
Miami, Florida-based Benada Aluminum of Florida Inc. The Debtor
has since consolidated operations and operates only out of its
location in Sanford.
The Company filed for Chapter 11 protection on Aug. 1, 2012
(Bankr. M.D. Fla. Case No. 12-10518). Judge Karen S. Jennemann
presides over the case. R. Scott Shuker, Esq., at Latham Shuker
Eden & Beaudine LLP, represents the Debtor. The Debtor estimated
between $10 million and $50 million in assets and debts.
Wells Fargo is represented by Michael Demont, Esq., and Jay Smith,
Esq., at Smith Hulsey & Busey, in Jacksonville, Florida. FTL
Capital is represented by Christopher J. Lawhorn, Esq., at Bryan
Cave LLP in St. Louis, Missouri.
BENADA ALUMINUM: Can Continue Using Lenders' Cash Thru January
--------------------------------------------------------------
Benada Aluminum Products LLC last week won authority to continue
using its lenders' cash collateral through Jan. 16, 2013. The
Bankruptcy Court at a hearing on Sept. 4 also approved the
Debtor's request to obtain postpetition financing from its pre-
bankruptcy lenders.
Wells Fargo Bank, N.A., a national banking association, has
committed to provide up to $5.0 million in revolving loans. FTL
Capital, LLC, a Missouri limited liability company, has committed
to extend $1.25 million in postpetition term loans.
At the onset of the case, the Debtor obtained authority to use
cash collateral and obtain DIP financing on an interim basis.
That interim order, dated Aug. 6, set another hearing for Sept. 4
on the financing request.
Wells Fargo and the Debtor are parties to a Loan and Security
Agreement dated June 20, 2011, which governs (i) a Revolver Note
dated June 20, 2011, in the original principal amount of $5.0
million, and (ii) a Term Note dated June 20, 2011, in the original
amount of $4,720,000.
As of the Petition Date, the outstanding principal and accrued,
but unpaid, interest owed to Wells Fargo under the Wells Fargo
Pre-Petition Notes is roughly $5.7 million. The Wells Fargo Pre-
Petition Notes are secured by valid, binding and non-avoidable
first priority liens on all of the Debtor's real and personal
property.
The Debtor is also indebted to FTL Capital, its junior secured
lender, pursuant to a Subordinated Secured Promissory Note dated
April 9, 2012, in the original principal amount of $2.0 million.
The Pre-Petition Junior Term Note is secured by valid, binding and
non-avoidable liens (junior only to Wells Fargo's liens) on all of
the Debtor's personal property, including but not limited to the
Cash Collateral.
The Debtor intends to use the Cash Collateral to fund its day-to-
day operations.
Pursuant to the Aug. 6 Interim Order, the Debtor is required to
pay Wells Fargo a commitment fee of $25,000 plus a host of other
fees.
About Benada
Benada Aluminum Products LLC was formed in 2011 to purchase assets
of two aluminum products manufacturing companies. It purchased
via 11 U.S.C. Sec. 363 the Sanford facility of Florida Extruders
International (Case No. 08-07761). It also purchased the assets
Miami, Florida-based Benada Aluminum of Florida Inc. The Debtor
has since consolidated operations and operates only out of its
location in Sanford.
The Company filed for Chapter 11 protection on Aug. 1, 2012
(Bankr. M.D. Fla. Case No. 12-10518). Judge Karen S. Jennemann
presides over the case. R. Scott Shuker, Esq., at Latham Shuker
Eden & Beaudine LLP, represents the Debtor. The Debtor estimated
between $10 million and $50 million in assets and debts.
Wells Fargo is represented by Michael Demont, Esq., and Jay Smith,
Esq., at Smith Hulsey & Busey, in Jacksonville, Florida. FTL
Capital is represented by Christopher J. Lawhorn, Esq., at Bryan
Cave LLP in St. Louis, Missouri.
BENADA ALUMINUM: Sale Hearing Set for Sept. 25
----------------------------------------------
The Bankruptcy Court will hold a hearing on Sept. 25, 2012, at
2:45 p.m. on the request of Benada Aluminum Products LLC to sell
an aluminum extrusion machine.
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reported that the company conducted an informal auction where
several aluminum extrusion companies bid for the extruder over the
course of 10 days. The first bids were for about $1 million.
Ultimately, Tubelite Inc. submitted an offer of $2.9 million,
which Benada said is the best. Absent a better bid in the
meantime, Benada will seek authority to sell to Tubelite.
According to the Bloomberg report, pre-bankruptcy lenders Wells
Fargo Bank N.A. and FLT Capital LLC both agreed to the sale.
Pursuant to an August court order approving interim financing for
the Debtor, in the event of any sale of the business pursuant to
11 U.S.C. Section 363 or under a plan of reorganization, (i) Wells
Fargo will have the right (at an auction or otherwise) to credit
bid in an amount equal to the amount of the Debtor's prepetition
and postpetition debt to Wells Fargo and (ii) subject to an
Intercreditor Agreement, FTL Capital will have the right (at an
auction or otherwise) to credit bid in an amount equal to the
amount of the Debtor's debt to FTL Capital.
As of the Petition Date, the outstanding principal and accrued,
but unpaid, interest owed to Wells Fargo is roughly $5.7 million.
The Debtor is also indebted to FTL Capital, its junior secured
lender, pursuant to a Subordinated Secured Promissory Note dated
April 9, 2012, in the original principal amount of $2.0 million.
FLT Capital is a part owner of the business.
There is $3.4 million owing to trade suppliers.
About Benada
Benada Aluminum Products LLC was formed in 2011 to purchase assets
of two aluminum products manufacturing companies. It purchased
via 11 U.S.C. Sec. 363 the Sanford facility of Florida Extruders
International (Case No. 08-07761). It also purchased the assets
Miami, Florida-based Benada Aluminum of Florida Inc. The Debtor
has since consolidated operations and operates only out of its
location in Sanford.
The Company filed for Chapter 11 protection on Aug. 1, 2012
(Bankr. M.D. Fla. Case No. 12-10518). Judge Karen S. Jennemann
presides over the case. R. Scott Shuker, Esq., at Latham Shuker
Eden & Beaudine LLP, represents the Debtor. The Debtor estimated
between $10 million and $50 million in assets and debts.
Wells Fargo is represented by Michael Demont, Esq., and Jay Smith,
Esq., at Smith Hulsey & Busey, in Jacksonville, Florida. FTL
Capital is represented by Christopher J. Lawhorn, Esq., at Bryan
Cave LLP in St. Louis, Missouri.
BERJAC OF OREGON: Sec. 341 Creditors' Meeting Set for Oct. 4
------------------------------------------------------------
The U.S. Trustee in Eugene, Oregon, will convene a Meeting of
Creditors pursuant to 11 U.S.C. Sec. 341(a) in the Chapter 11 case
of Berjac of Oregon on Oct. 4, 2012, at 10:00 a.m. at USTE1, US
Trustee's Office, in Eugene, 405 E 8th, Rm 1900.
Proofs of claim are due in the case by Jan. 2, 2013.
About Berjac of Oregon
Berjac of Oregon filed a bare-bones Chapter 11 petition (Bankr. D.
Ore. Case No. 12-63884) in Eugene on Aug. 31, 2012. Its
affiliate, Berjac of Portland, Oregon, also sought Chapter 11
bankruptcy protection.
Berjac -- http://www.berjac.com/-- has provided insurance premium
financing to insureds in the Western United States since 1963.
Michael S. Holcomb, owns the Berjac partnerships with his brother
Gary.
According to The Oregonian, on the date of the bankruptcy filing,
state regulators fined Berjac $900,000, saying that 275 investors
might have lost up to $35 million making risky loans to the
Holcombs' firms. The Oregonian said state officials moved quickly
to issue a press release before the Labor Day weekend to warn
other investors of the firm's alleged illegal scheme and apparent
financial woes.
In cease-and-desist orders issued late August 2012, the Oregon
Division of Finance and Corporate Securities accused Berjac and
the Holcomb brothers of violating Oregon securities laws. The
orders allege the Holcombs sold unsecured notes to investors
without registering them, getting a license or offering investors
a detailed prospectus.
Judge Frank R. Alley, III, presides over the case. The Law
Offices of Keith Y. Boyd, Esq., serves as the Debtors' counsel.
Berjac of Oregon estimated assets and debts of $10 million to
$50 million.
BERLEY ASSOCIATES: Case Summary & 9 Unsecured Creditors
-------------------------------------------------------
Debtor: Berley Associates, Ltd.
237 South Street
Morristown, NJ 07962-2049
Bankruptcy Case No.: 12-32032
Chapter 11 Petition Date: September 5, 2012
Court: U.S. Bankruptcy Court
District of New Jersey (Trenton)
Debtor's Counsel: Morris S. Bauer, Esq.
NORRIS MCLAUGHLIN & MARCUS, PA
P.O. Box 5933
Bridgewater, NJ 08807-5933
Tel: (908) 722-0700
Fax: (908) 722-0755
E-mail: msbauer@nmmlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its nine largest unsecured
creditors filed with the petition is available for free at:
http://bankrupt.com/misc/njb12-32032.pdf
The petition was signed by Lawrence S. Berger, president of
general partner, Investment Research, Inc.
Affiliates that previously filed separate Chapter 11 petitions:
Entity Case No. Petition Date
------ -------- -------------
400 Blair Realty Holdings, LLC 11-37887 09/23/11
Princeton Office Park, LP 08-27149 09/09/08
BJ'S WHOLESALE: Moody's Cuts Corp. Family Rating to 'B2'
--------------------------------------------------------
Moody's Investors Service downgraded to B2 from B1 the corporate
family rating of BJ's Wholesale Club, Inc., downgraded the ratings
on two existing secured term loans, and also assigned provisional
ratings to two proposed secured term loans. The rating outlook is
negative.
Ratings downgraded:
Corporate family rating to B2 from B1
Probability of default rating to B2 from B1
Ratings downgraded and to be withdrawn upon closing of proposed
new loans:
$1.075 billion secured first lien term loan to B2 (LGD 4, 57%)
from B1 (LGD 4, 57%)
$200 million secured second lien term loan to Caa1(LGD 5, 88%)
from B3 (LGD5, 84%)
New ratings assigned:
$1.225 billion secured first lien term loan at (P) B3 (LGD 4,
63%)
$400 million secured second lien term loan at (P) Caa1(LGD 5,
86%)
New ratings to be assigned upon closing and repayment:
$1.225 billion secured first lien term loan at B3 (LGD 4, 63%)
$400 million secured second lien term loan at Caa1(LGD 5, 86%)
Ratings Rationale
"The downgrade to B2 reflects the increase in leverage that will
result from BJ's paying a dividend of $643 million to its sponsors
and certain members of management, which represents a little more
than the total equity invested in the company in September 2011 in
conjunction with the company's LBO," stated Moody's Senior Analyst
Charlie O'Shea. "The result of this highly-aggressive shift in
financial policy will be debt/EBITDA pro forma for this proposed
dividend of well over 6 times, which is the downgrade trigger that
was set for the B1 rating, and interest coverage will reduce to
close to 1.3 times. In addition, the financial policy tone being
set by virtue of this leveraged dividend is highly-aggressive,
which is also a key rating factor."
BJ's is proposing to raise around $690 million in new debt to
execute a $643 million dividend to its sponsor/owners (affiliates
of Leonard Green Partners and CVC Capital Partners) roughly one
year after the closing of the LBO that took the company private.
Components of the proposed financing to pay this dividend, which
represents in excess of the original equity contribution, include:
1) a new $1.225 billion first lien term loan that will repay and
replace the existing $1.07 billion first lien term loan, resulting
in net proceeds of around $155 million; 2) a new $400 million
second lien term loan that will repay and replace the existing
$200 million second lien term loan, resulting in around $200
million in net proceeds; 3) a sale/leaseback transaction that will
result in around $280 million in proceeds, and 4) a net
approximately $50 million draw under the existing unrated ABL.
The B2 corporate family and probability of default ratings reflect
BJ's high leverage as measured by debt/EBITDA, which will now be
well over 6 times, weak interest coverage with EBITA/interest of
around 1.3 times, as well as its limited ability to generate free
cash flow sufficient to attain a free cash flow/net debt metric
above the low single digits on a percentage basis. The ratings
also reflect the tone of financial policy tone being set by the
new dividend.
The ratings continue to be supported by BJ's significant "annuity
stream" of membership revenue, which stood at around $220 million
for the July 2012 LTM period, its favorable position in the
warehouse/wholesale club segment of retail, with its focus on
grocery-equivalents, and its strong position in the populous
Northeast region of the U.S. Ratings also consider the "covenant
lite" structure of the proposed credit facilities, as well as
continued inherent issues surrounding the ownership of BJ's by
private equity firms. Some of these issues include the potential
for additional extractions of equity and otherwise maintenance of
a shareholder-friendly financial policy, which could lead to a
further leveraging and weakening of the company's capital
structure. "BJ's is a strong and very credible competitor in its
key Northeast market, with leading market share as measured by
store locations," stated Moody's Senior Analyst Charlie O'Shea.
"Moody's also recognizes BJ's excellent operating performance
trend over the past several years, which indicates that the
company has been able to perform well through myriad economic
cycles, as well as its good liquidity."
The downgrade of the existing term loans, ratings for which will
be withdrawn upon closing of the proposed new term loans, result
from the downgrade of the corporate family and the application of
Moody's Loss Given Default Methodology, as well as their
respective positions in the capital structure. The B2 rating on
the existing $1.075 billion term loan recognizes the benefit of
first position collateral mortgages on a pool of warehouse clubs,
as well as its more senior position in the capital structure. The
Caa1 rating on the existing $200 million term loan reflects the
lack of any tangible hard asset collateral and its more junior
position in the capital structure.
The ratings on the proposed new term loans result from the
application of Moody's Loss Given Default Methodology, as well as
their respective positions in the capital structure. The (P) B3
rating on the proposed $1.225 billion term loan recognizes its
more senior position in the capital structure, with reduced
benefit of real estate collateral by virtue of the proposed new
sale/leaseback transaction, which will remove approximately $300
million in real estate value from the previous collateral pool.
The (P) Caa1 rating on the proposed $400 million term loan
reflects its more junior position in the capital structure, and
the lack of any tangible hard asset collateral. Upon conclusion of
the proposed transactions, Moody's will remove the Provisional (P)
designation and B3 and Caa1 ratings will be assigned respectively.
The negative outlook recognizes the impact on the company's
quantitative credit profile of the increased debt incurred to fund
the dividend, as well as the company's highly-aggressive financial
policy. Any additional debt beyond that which is contemplated
under the proposed new transaction, reductions in interest
coverage, or weakening liquidity beyond the company's profile pro
forma for this proposed transaction would likely result in a
downgrade. Moody's notes that liquidity, while good, remains
negatively impacted by the approximately $350 million that is
still outstanding on the unrated ABL which was utilized to help
finance the September 2011 LBO.
Given the company's aggressive financial policy and the negative
outlook, an upgrade is unlikely. Over time, stabilization of the
outlook could occur if BJ's can generate free cash flow sufficient
to reduce leverage as measured by debt/EBITDA to a sustained level
approaching 6 times, with interest coverage as measured by
EBIT/interest reaching1.5 times. In addition, the highly-
aggressive tone of the company's financial policy would need to
temper, and liquidity would have to improve.
Ratings could be downgraded if the company's financial policy
continues to be aggressive, liquidity weakens, or if its credit
metrics do not begin to show improvement in the short term, with
any increases in leverage as measured by debt/EBITDA or decreases
in interest coverage as measured by EBITA/interest likely leading
to a downgrade.
The principal methodology used in rating BJ's Wholesale was the
Global Retail Industry Methodology published in June 2011. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.
BJ's Wholesale Club, Inc., based in Westborough, Massachusetts, is
a leading warehouse club retailer, with 195 locations in 15
states. Annual revenues are around $11 billion. The company was
taken private in September 2011 in a leveraged transaction by
affiliates of Leonard Green Partners and CVC Capital Partners for
around $3 billion.
CANTRELL/CUTTER: Reaches Accord Over Pension Contribution
---------------------------------------------------------
Bankruptcy Judge Wendelin I. Lipp signed off on a Stipulation and
Consent Order dated Sept. 6 between Cantrell-Cutter Printing,
Inc., and the Trustees of the Printing Local 72 Industry Pension
Fund.
The Pension Fund on June 11, 2012, filed a Motion for Entry of an
Order Allowing and Directing Payment of Administrative Expenses
and Payment of Contributions. The Pension Fund is a jointly
trusted multiemployer employee pension plan as those terms are
defined in Sections 3(3) and 3(37) of the Employee and Retirement
Income Security Act of 1974, 29 U.S.C. Sections 1002(3) and (37)
to whom the Debtor is required to remit reports and contributions
pursuant to its Collective Bargaining Agreement with the
International Brotherhood of Teamsters Graphic Communications
Union, Local 72-C.
The Debtor and the International Brotherhood of Teamsters Graphic
Communications Union, Local 72-C, have been parties to a
collective bargaining agreement pursuant to which the Debtor has
been obligated (i) to contribute a specific amount to the Pension
Fund in connection with each hour of employment within the trade
and geographical jurisdiction of Local 72 and (ii) to submit
monthly reports showing the covered employees and each hour worked
and the corresponding amounts due to the Pension Fund.
No Objection to the Pension Fund's Motion for Payment of
Administrative Expenses has been filed.
The Debtor has not sought to modify or reject the CBA through the
process set out in 11 U.S.C. Sec. 1113. The Debtor has failed to
pay contributions due to the Pension Fund for work performed at
the Debtor's request from October 2010 through and including July
2012 in the amount of $45,991.50.
Pursuant to Stipulation, the Debtor assumes the CBA and agrees to
continue to be bound by its provisions. The parties agree that,
pursuant to Section 507(a)(2) of the Bankruptcy Code, the Pension
Fund is entitled to an Administrative Claim for all contributions
owed pursuant to the CBA.
To cure any defects and defaults in the CBA as required by Section
365 of the Bankruptcy Code, the Debtor will pay $45,991.50 in
delinquent contributions to the Pension Fund for work performed
from October 2010 through and including July 2012 in weekly
installments of $1,000, payable each Friday, until such delinquent
contributions are fully repaid. The Debtor will, on and after
this date, make timely contributions (i.e. contributions due and
owing for work performed on and after August 1, 2012) to the
Pension Fund mandated by the CBA now in effect and as subsequently
extended or modified, or as superseded by a new CBA, plus any
interest and liquidated damages required by the Trust Agreement
for failure to make timely contributions.
The parties recognize that any interest or liquidated damages owed
by the Debtor for late payment of contributions will be classified
as a general unsecured claim of the Debtor's bankruptcy estate.
Should the Debtor fail to comply with any terms of the Stipulation
and Consent Order, the Fund may refile their Motion for Payment of
Administrative Expenses with the Court and, upon timely notice to
the Debtor, may at that time seek further appropriate monetary
and/or injunctive relief.
The Debtor will file a Plan of Reorganization incorporating the
Stipulation.
Cantrell/Cutter Printing, Inc., based in Capitol Heights,
Maryland, filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No.
11-27863) on Sept. 1, 2011. Judge Wendelin I. Lipp presides over
the case. In its petition, the Debtor estimated $1 million to
$10 million in assets and debts. The petition was signed by
Donald L. Cantrell, Jr., president.
Cantrell/Cutter Printing Inc. is represented by
Richard M. McGill, Esq.
LAW OFFICES OF RICHARD M. MCGILL
Post Office Box 358
5303 West Court Drive
Upper Marlboro, MD 20773
Tel: (301) 627-5222
E-mail: mcgillrm@aol.com
The attorney for Printing Local 72 Industry Pension Fund:
John R. Harney, Esq.
O'DONOGHUE & O'DONOGHUE LLP
4748 Wisconsin Avenue, N.W.
Washington, D.C. 20016
Tel: (202) 362-0041
Fax: (202) 362-2640
E-mail: jharney@odonoghuelaw.com
CANYONS AT DEBEQUE: Amends List of Largest Unsecured Creditors
--------------------------------------------------------------
Canyons at DeBeque Ranch LLC filed with the Bankruptcy Court in
Colorado an amended list of its creditors holding the 20 largest
unsecured claims, disclosing:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Pioneer Irrigation Business debt $66,303
7750 33 Mile Road
Casper, WY 82604-9590
Collins Cockrel & Cole Business debt $53,232
390 Union Boulevard
Suite 400
Denver, CO 80228-1556
FDIC/First Citizens Bank $46,663
700 17th Street
Suite 100
Denver, CO 80202
Sopris Engineering Business debt $45,629
502 Main Street
Suite A-3
Carbondale, CO 81623
Town of DeBeque Business debt $21,138
US Dept of Agriculture Business debt $26,000
Jones & Keller Legal fees $22,216
5 States Construction Business debt $15,962
Blue Stone Ditch Associates Business debt $9,910
Vahrenwald, Johnson Business debt $7,685
& McMahill
Zancanella & Associates Business debt $7,419
CRWCD Business debt $5,831
Western Conservation Partners Business debt $3,006
WCP 1 Business debt $429
Dufford, Waldeck, Milburn Business debt $387
& Krohn
Country Roads Business debt $33
About Canyons at DeBeque Ranch
Canyons @ DeBeque Ranch, LLC, filed a bare-bones Chapter 11
petition (Bankr. D. Colo. Case No. 12-24993) in Denver on July 18,
2012. Judge Elizabeth E. Brown oversees the case. The Debtor is
represented by Jeffrey S. Brinen, Esq., at Kutner Miller Brinen,
P.C., serves as counsel to the Debtor.
Affiliate Bluestone Ridge Ranch East, LLC, aka Bluestone Ridge
Ranch PUD, based in Butte, Montana, filed a separate Chapter 11
petition (Bankr. D. Colo. Case No. 12-24994) on the same day.
CBS I: Disclosure Statement Hearing on Oct. 23
----------------------------------------------
There's a hearing on Oct. 23, 2012 at 9:30 a.m. to consider
approval of the disclosure statement explaining the proposed
Chapter 11 plan filed by CBS I, LLC, owner of the Summerlin
building.
U.S. Bank National Association is estimated to have a claim of
$16.4 million on a prepetition loan, secured by the Debtor's
property, appraised at $19 million in April 2012. According to
the Disclosure Statement, the U.S. Bank loan will be restructured
and refinance, with the refinanced loan to mature in 120 months
and the Debtor making interest-only payments in the first 36
months. Like U.S. Bank, holders of general unsecured claims are
impaired. General unsecured claimants who are not insiders --
estimated in excess of 30,000 -- will receive payment of 100% of
their filed claims to be paid six months after entry of the
confirmation order with simple interest at a rate of 3%. Holders
of insider unsecured claims won't receive anything.
The Debtor intends to maintain operation of its commercial
property upon confirmation of the Plan. The Debtor will continue
to utilize Real Estate Asset Management, LLC, as property manager
for the properties.
The Debtor said it does not intend to pursue preference,
fraudulent conveyance or other avoidance actions. It says that no
significant transfers occurred, other than to the secured
creditors, during the past two years.
A copy of the Disclosure Statement is available for free at:
http://bankrupt.com/misc/CBS_I_Plan_Outline_090512.pdf
About CBS I
CBS I, LLC, filed for Chapter 11 protection (Bankr. D. Nev. Case
No. 12-16833) on June 7, 2012. The Debtor scheduled assets of
$19,356,448 and liabilities of $19,422,805. Judge Mike K.
Nakagawa presides over the case. Jeff Susa signed the petition as
manager.
The bankruptcy filing came after U.S. Bank, trustee for holders of
the $16.4 million mortgage, initiated foreclosure proceedings and
filed a lawsuit May 24 in Clark County District Court asking that
a receiver be appointed to take control of the Summerlin building
in Howard Hughes Plaza at 10100 West Charleston Blvd., just west
of Hualapai Way.
No request has been made for the appointment of a trustee or
examiner, and no official committees have yet been established in
the case.
CDC CORP: Can Employ Harshman Phillips as Tax Accountants
---------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia
has granted CDC Corp. permission to employ Harshman Phillips &
Company, LLC, as Special Tax Accountants for Debtor for matters
relating to Plan Implementation and Reporting Requirements, nunc
pro tunc to May 15, 2012.
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 Corp., 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 US$100 million
to US$500 million as of the Chapter 11 filing.
The Official Committee of Equity Security Holders of CDC Corp. is
represented by Troutman Sanders. The Committee tapped Morgan
Joseph TriArtisan LLC as its financial advisor.
The stock of CDC Software Corp. was sold for $249.8 million to an
affiliate of Vista Equity Holdings.
CDC CORP: Asks Court to Dismiss Objection to Aug. 7 Notice of Sale
------------------------------------------------------------------
CDC Corp. asks the U.S. Bankruptcy Court for the Northern District
of Georgia to dismiss or overrule Rajan Vaz's August 14 objection
to the August 7 Notice of Sale related to the proposed sale of
assets by OST International Corporation (a non-Debtor) to Peak
Technologies, Inc.
CDC Corp. and Sellers submit that no Court authorization was
required for OST International Corporation to sell assets to Peak
Technologies, Inc.
Given that any delay would have resulted in irreparable harm and
that Court authorization for the sale in not required, Debtor and
Sellers have closed the sale to Peak Technologies over the
objection filed by Vaz.
Thus, Debtor requests the Court confirm that Court authority was
not required for the sale proposed in the August 7 Notice of Sale
and dismiss Vaz's objection to the August 7 Notice of Sale. In
the alternative, to the extent the Court finds that Court
authority to be necessary for the sale, the Debtor requests that
the Court overrule Vaz's objection and authorize and ratify the
sale to Peak Technologies, nunc pro tunc to the date of the
closing of the asset sale.
Debtor tells the Court that it should overrule Vaz's latest
objection since it raises the same argument (the existence of an
alleged higher offer) rejected by the Court in connection with
Vaz's objection the May 4 Notices of Sale. Debtor contends that
Vaz lacks credibility with regard to his assertion that he can
timely fund and close a sale. Further, Debtor says that the
claimed higher and better offer by Vaz and his equity partners is
not sufficiently higher to justify any delay in a closing of the
proposed asset sale, as it costs Sellers approximately $12,000 per
day to continue to operate the business that is the subject of the
sale to Peak Technologies.
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 Corp., 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 US$100 million
to US$500 million as of the Chapter 11 filing.
The Official Committee of Equity Security Holders of CDC Corp. is
represented by Troutman Sanders. The Committee tapped Morgan
Joseph TriArtisan LLC as its financial advisor.
The stock of CDC Software Corp. was sold for $249.8 million to an
affiliate of Vista Equity Holdings.
CDH GLOBAL: CFTC Obtains Injunction Amid Fraudulent Conduct
-----------------------------------------------------------
The U.S. Commodity Futures Trading Commission on Sept. 11 filed a
notice of intent to revoke the registrations of Linda Faye Harris,
CDH Forex Investments, LLC and CDH Global Holdings, LLC, all of
Flower Mound, Texas. CDH Forex is a registered Commodity Pool
Operator and Commodity Trading Advisor; CDH Global is a registered
Commodity Trading Advisor; and Harris is registered as an
Associated Person and is the sole principal of CDH Forex. Harris
was an Associated Person and principal of CDH Global.
The notice alleges that Harris, CDH Forex, and CDH Global are
subject to statutory disqualification from CFTC registration based
on an order of default judgment and permanent injunction entered
by the U.S. District Court for the Northern District of Texas on
June 12, 2012. The order prohibits defendants from committing
further fraud, among other violations.
At the hearing held on June 12, 2012, Harris appeared and conceded
all allegations in the complaint of violations of the Commodity
Exchange Act, but contested only the amount of restitution and
civil monetary penalty. The court found none of Harris' arguments
credible and entered the order as submitted by the CFTC.
The order contains findings of fact and conclusions of law, which
find, in relevant part, 1) that Harris fraudulently solicited at
least $2.2 million from customers, out of which total trading
losses and misappropriated funds equaled at least $1,361,897, and
2) made material false statements to pool participants. The order
also finds that Harris provided false, fictitious, or fraudulent
statements to the National Futures Association (NFA), including
falsified trading account statements and falsified bank
statements, to hide the ongoing fraud from NFA.
CFTC Division of Enforcement staff members responsible for this
action are Nathan B. Ploener, Manal M. Sultan, Lenel Hickson, Jr.,
Stephen J. Obie, and Vincent A. McGonagle.
CHEMTURA CORP: Term Loan Increase No Impact on Moody's 'Ba3' CFR
----------------------------------------------------------------
Moody's Investors Service said Chemtura Corporation's Corporate
Family Rating and issue ratings are unaffected by the $125mm
increase in its term loan.
As reported by the Troubled Company Reporter on May 27, 2011,
Moody's converted the provisional (P) Ba3 Corporate Family Rating
(CFR), and the senior secured term loan (P) Ba1 ratings, and (P)
B1 senior unsecured notes ratings into definitive ratings. This
action is a result of the company's successful emergence this past
year from Chapter 11 proceedings. Moody's also raised the
company's short term liquidity ratings to SGL-2
from SGL-3. The rating outlook is stable.
Ratings Changes:
Chemtura Corporation
* Corporate Family Rating -- Ba3 from (P) Ba3
* Probability of Default Rating -- Ba3 from (P) Ba3
* Senior Secured Term Loan B -- Ba1 (LGD2, 25%) from (P) Ba1
(LGD2, 17%)
* 7.875% Senior Notes -- B1 (LGD5, 72%) from (P) B1 (LGD4,
68%)
* Speculative Grade Liquidity Rating to SGL-2 from SGL-3
Chemtura Corporation manufactures and sells innovative,
application-focused specialty chemical and consumer products
offerings. Chemtura operates in a wide variety of end-use
industries, including agriculture, transportation, construction,
packaging, lubricants, plastics for durable and non-durable goods,
electronics, and pool and spa chemicals. Sales for the last twelve
months ending June 30, 2012, were approximately $3.0 billion.
CIRCUS & ELDORADO: Noteholders Reject Chapter 11 Plan
-----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that when Circus & Eldorado Joint Venture filed for
Chapter 11 reorganization in May, the operator of the Silver
Legacy Resort Casino in Reno, Nevada, said the previously-
negotiated plan had support from a "substantial portion" of the
holders of the $142.8 million in 10.125% senior secured notes that
matured March 1. When the votes were tallied on Sept. 7, the
noteholders voted the plan down.
According to the report, the casino, a joint venture between MGM
Resorts International and Eldorado Resorts LLC, nonetheless
intends to win approval of the plan from the U.S. Bankruptcy Court
in Reno using the so-called cramdown process. Opposition to the
plan is being mounted by Black Diamond Capital Management LLC
which wants to file a competing plan with better treatment for
noteholders. Black Diamond said it owns "in excess" of one-third
of the notes, an amount sufficient in itself for the class to vote
down the plan. Although it's not clear from court filings who
voted against the plan, the tabulation of the vote filed with the
bankruptcy court says that 57.6% in amount of notes were opposed
to the reorganization. In August, Black Diamond asked the
bankruptcy judge for permission to file a plan of its own that
would be "superior to" the casino's plan on "multiple levels."
The report relates that the casino responded on Aug. 30 with
papers asking the bankruptcy judge not to count Black Diamond's
votes, on the theory that the request for permission to file a
competing plan was an unauthorized and veiled attempt to solicit
votes against the plan. At the present time, the motion to
disregard Black Diamond's "no" votes is on the court's Sept. 19
calendar. The confirmation hearing for approval of the casino's
plan is set for Oct. 22 and 23.
The report notes that there are alternatives in the casino's plan
depending on whether it's accepted by noteholders. If they vote
"yes," they would receive about $92.8 million cash plus a new
second-lien note for $27.5 million, equaling a predicted 88.8%
recovery. If noteholders vote down the plan, the so-called
cramdown provision would take effect where the recovery would be
$11.2 million cash and a new note for $131.6 million at 7.3%
interest.
The report notes that bankruptcy law requires there be at least
one class of creditors that votes in favor of the plan. The
casino met that requirement because there were "yes" votes from
two classes of unsecured creditors being paid in full on about
$5 million of claims. The casino contends unsecured creditors
could vote because they won't receive interest on their claims.
According to the report, the owners are also making new capital
contributions. Black Diamond contends the casino's plan can't be
approved because a decision this year from the U.S. Supreme Court
gives noteholders the right to force a sale where they can pay for
the property using secured debt rather than cash. The casino may
argue the Supreme Court case doesn't apply because noteholders are
being paid in full.
The Bloomberg report discloses that Black Diamond says it would
file a competing plan to increase noteholders' cash recovery by
$5 million, reducing the second-lien note. There would be a so-
called rights offering, backstopped by Black Diamond, to supply
the reorganized company with capital.
The existing notes traded for 77.75 cents on the dollar at 2:34
p.m. on Sept. 10, according to Trace, the bond-price reporting
system of the Financial Industry Regulatory Authority.
About Circus and Eldorado
Circus and Eldorado Joint Venture and Silver Legacy Capital Corp.
filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case Nos. 12-51156
and 12-51157) on May 17, 2012.
Circus and Eldorado Joint Venture owns and operates the Silver
Legacy Resort Casino, a 19th century silver mining themed hotel,
casino and entertainment complex located in downtown Reno, Nevada.
The casino and entertainment areas at Silver Legacy are connected
by skyway corridors to the neighboring Eldorado Hotel & Casino and
the Circus Circus Hotel and Casino, each of which are owned by
affiliates of the Debtors. Together, the three properties
comprise the heart of the Reno market's prime gaming area and room
base.
Silver Legacy Capital is a wholly owned subsidiary of the Joint
Venture and was created and exists for the sole purpose of serving
as a co-issuer of the mortgage notes due 2012. SLCC has no
operations, assets or revenues.
Eldorado Hotel & Casino and Circus Circus Hotel and Casino are not
debtors in the Chapter 11 cases.
The Company did not make the required principal payment of its
10.125% mortgage notes on the maturity date of March 1, 2012. The
company also elected not to make the scheduled interest payment.
As a result, an aggregate of $142.8 million principal amount of
Notes were outstanding and accrued interest of $7.23 million on
the Notes, as of March 1, 2012, is due and payable.
The Debtors have entered into a Restructuring Support Agreement
with Capital Research and Management Company, a holder of a
substantial portion of the mortgage notes. A copy of the RSA
dated March 15, 2012, is available for free at http://is.gd/diDPh3
The RSA contemplates a proposed plan will be filed no later than
June 1, 2012. The plan will contain creditor treatments that
have already been negotiated with and agreed to by creditor
constituents. The Debtors will seek approval of the explanatory
disclosure statement within 45 days after the Petition Date and
obtain confirmation of the Plan 60 days later.
Judge Bruce T. Beesley presides over the case. Paul S. Aronzon,
Esq., and Thomas P. Kreller, Esq., at Milbank, Tweed, Hadley &
McCloy LLP; and Sallie B. Armstrong, Esq., at Downey Brand LLP,
serve as the Debtors' counsel. The Debtors' financial advisor is
FTI Consulting Inc. The claims agent is Kurtzman Carson
Consultants LLC.
The Bank of New York Mellon Trust Company, N.A., the trustee for
the Debtors' 10-1/8% Mortgage Notes due 2012, is represented by
Craig A. Barbarosh, Esq., and Karen B. Dine, Esq., at Pillsbury
Winthrop Shaw Pittman LLP.
Circus and Eldorado Joint Venture disclosed $264,649,800 in assets
and $158,753,490 in liabilities as of the Chapter 11 filing.
The petitions were signed by Stephanie D. Lepori, chief financial
officer.
The Plan dated June 1, 2012, pays much of its debt in cash and the
balance with new secured liens.
August B. Landis, Acting U.S. Trustee for Region 17, appointed
three creditors to serve in the Official Committee of Unsecured
Creditors in the Debtors' Chapter 11 cases. Stutman, Treister &
Glatt Professional Corporation represents the Committee.
CIT GROUP: Tyco's Tax-Sharing Claim Upheld on Appeal
----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that U.S. Bankruptcy Judge Allan Gropper in Manhattan
received an accolade from the U.S. Court of Appeals.
According to the report, the appeals court in New York last week
upheld an opinion Judge Gropper wrote in December involving a
claim by Tyco International Ltd. in the prepackaged reorganization
of CIT Group Inc. The Second Circuit in Manhattan upheld Judge
Gropper "substantially for the reasons stated in its thoughtful
and comprehensive opinion."
The Bloomberg report discloses that the case involved the question
of whether a claim arising from a tax-sharing agreement should be
subordinated under 11 U.S.C. Section 510(b) of the U.S. Bankruptcy
Code as arising from the sale of securities. Judge Gropper held
against subordination and the circuit court agreed, in substance
using Judge Gropper's opinion as its own.
The case in the appeals court is CIT Group Inc. v. Tyco
International Inc. (In re CIT Group Inc.), 12-1692, U.S. Court of
Appeals for the Second Circuit (Manhattan).
About CIT Group
Bank holding company CIT Group Inc. and affiliate CIT Group
Funding Company of Delaware LLC filed for Chapter 11 (Bankr.
S.D.N.Y. Case No. 09-16565) on Nov. 1, 2009, with a prepackaged
Chapter 11 plan of reorganization. Evercore Partners, Morgan
Stanley and FTI Consulting served as the Company's financial
advisors and Skadden, Arps, Slate, Meagher & Flom LLP served as
legal counsel in connection with the restructuring plan. Sullivan
& Cromwell served as legal advisor to CIT's Board of Directors.
The Court validated the vote of CIT's impaired classes of
creditors and confirmed the Plan on Dec. 8, 2009. The Plan
provided for the conversion to equity or reinstatement of seven
classes of debt issued primarily in the form of notes and
debentures; one class of unsecured notes was exchanged for new
debt. General unsecured creditors, including holders of claims
arising from the rejection of executory contracts, were paid in
full and deemed unimpaired. Holders of preferred and common
stock, as well as subordinated claims, received no recovery.
CIT emerged from bankruptcy protection on Dec. 11, 2009.
* * *
In February 2012, Moody's Investors Service upgraded CIT's
Corporate Family Rating to B1 from B2, recognizing CIT's
achievements in strengthening its liquidity profile by
diversifying funding sources, extending debt maturities, and
reducing the level of encumbered assets.
Dominion Bond Rating Service also has upgraded CIT's ratings,
including its Issuer Rating to BB (low) from B (high).
CRAVEN PROPERTIES: Seeks Approval of McManus as Chapter 11 Counsel
------------------------------------------------------------------
Craven Properties, L.P., seeks Bankruptcy Court authority to
employ the law firm of John J. McManus & Associates, P.C. as its
attorneys in the Chapter 11 proceeding.
John J. McManus is the sole owner of the Firm with it sole office
located at 2167 Northlake Parkway, Suite 104, Tucker, Georgia.
Mr. McManus attests that (a) his law firm does not represent an
interest adverse to the Debtor in the matters upon which the firm
is to be engaged; and (b) his law firm has no connection with the
Debtor, its creditors or any parties in interest, or their
attorneys or accountants.
The firm's current hourly rates are $310 for attorney time and $95
for paralegal time. To date, a $5,000 retainer has been paid to
the firm.
Craven Properties, L.P., a single asset real estate, filed a
Chapter 11 petition (Bankr. N.D. Ga. Case No. 12-23082) in its
hometown in Gainesville, Georgia, on Aug. 31, 2012. Judge Robert
Brizendine presides over the case. John J. McManus, Esq., at John
J. McManus & Associates, P.C., serves as counsel. Billy J. Craven
signed the petition.
CRAVEN PROPERTIES: Files Schedules of Assets and Liabilities
------------------------------------------------------------
Craven Properties, L.P., filed with the Bankruptcy Court an
amended to its Chapter 11 petition to modify the name printed on
the official form from "A Georgia Limited Partnership" to "Craven
Properties, L.P." The Debtor also amended its summary of
schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A - Real Property $20,000,000
B - Personal Property $8,446,281
C - Property Claimed as Exempt
D - Creditors Holding Secured Claims $3,846,146
E - Creditors Holding Unsecured
Priority Claims $2,821
F - Creditors Holding Unsecured
Non-Priority Claims $23,704
------------ -----------
$28,446,281 $3,872,671
Craven Properties, L.P., a single asset real estate, filed a
Chapter 11 petition (Bankr. N.D. Ga. Case No. 12-23082) in its
home-town in Gainesville, Georgia, on Aug. 31, 2012. Judge Robert
Brizendine presides over the case. John J. McManus, Esq., at John
J. McManus & Associates, P.C., serves as counsel. Billy J. Craven
signed the petition.
DECISION INSIGHT: Moody's Cuts CFR/PDR to 'B3'; Outlook Stable
--------------------------------------------------------------
Moody's Investors Service downgraded Decision Insight Information
Group (US) I, Inc.'s corporate family (CFR) and probability of
default ratings to B3 from B2. The company's senior secured
ratings were also downgraded to B1 from Ba3. The ratings outlook
was changed to stable from negative. The rating action is driven
by Decision Insight's weaker than expected results since its
leveraged-buyout by TPG Capital L.P., primarily due to reduced
demand for its property-related services. Moody's expects earnings
growth to be soft through the next 12 to 18 months and adjusted
leverage is likely to remain above 6.5x through this time frame
due to continuing challenges in the U.S. and U.K. real estate
markets. Accordingly, the company's CFR has been re-positioned at
a level that is consistent with expected results.
Ratings Rationale
Decision Insight's B3 CFR primarily reflects its high adjusted
leverage (current Debt/ EBITDA above 8x), small scale and
narrowly-focused business, and significant exposure to the
challenging U.S. and U.K. real estate markets. Nonetheless, the
company generates positive free cash flow and good margins, has
broad geographic exposure, and derives a significant amount of its
revenue from recurring subscription services with blue chip
customers. As well, its products tend to be an essential, but
relatively low cost component of its customers' processes, which
reduces volatility in its results.
The outlook change to stable reflects Moody's expectation that
while certain key credit metrics will remain weak for Decision
Insight's rating category in the near term, the company has
adequate liquidity to sustain its operations until meaningful
earnings growth begins to occur.
Downward rating pressure would most likely arise if the company
were to face challenges maintaining an acceptable liquidity
position. This would most likely be accompanied by earnings
decline such that Debt/ EBITDA was sustained above 8x and free
cash flow was negative for an extended period. The rating could be
considered for upgrade should Decision Insight sustain its
adjusted Debt/ EBITDA below 5.5x and its EBITDA-CapEx/ Interest
above 1.5x while maintaining its strong market position.
The principal methodology used in rating Decision Insight was the
Global Business & Consumer Service Industry Methodology published
in October 2010. Other methodologies used include Loss Given
Default for Speculative-Grade Non-Financial Companies in the U.S.,
Canada and EMEA published in June 2009.
Decision Insight Information Group (US) I, Inc., is a leading
supplier of property information and related solutions to the
financial services sector in the U.S., Canada, U.K. and Ireland.
The company was formed in January 2011 when TPG Capital, L.P.
acquire the Information Products division of MacDonald, Dettwiler
and Associates, Ltd.
DELTA PETROLEUM: John Young Named as CEO, Seth Bullock as CFO
-------------------------------------------------------------
Par Petroleum Corporation announced that its predecessor Delta
Petroleum Corporation consummated its plan of reorganization on
Aug. 31, 2012.
To implement Par Petroleum's new vision and direction, ownership
has replaced the Company's former Board of Directors and has
installed a new management team. In particular, five new
individuals have been appointed to serve as Par Petroleum's Board
of Directors, effective immediately, and the Board has appointed a
new management team for Par Petroleum, led by John T. Young, Jr.,
as Par's Chief Executive Officer and R. Seth Bullock as Par's
Chief Financial Officer. In addition, two members of the new
Board, Jacob Mercer and William Monteleone, also will serve on the
board of the joint venture Piceance Energy.
"I speak for the entire management team when I express my
excitement about joining Par Petroleum," said John T. Young, Jr.,
the new Chief Executive Officer. "I am confident in Par's future,
and the Board and management team are looking forward to working
with our joint venture partner Laramie Energy II, LLC to rebuild
our energy business. I believe that the Company's improved
capital structure and enhanced financial flexibility positions us
well within our industry."
As outlined in the Company's Third Amended Plan of Reorganization
as confirmed by the United States Bankruptcy Court on Aug. 16,
2012, the Board members were designated by the new principal
equity owners of Par. Par's new Board is comprised of Messrs.
Jacob Mercer, William Monteleone, Michael Keener, L. Melvin Cooper
and Benjamin Lurie.
John T. Young, Jr. - Chief Executive Officer. Delta appointed Mr.
Young as its Chief Restructuring Officer in November 2011, and
appointed him as Chief Financial Officer in July 2012. Mr. Young
also currently serves as Senior Managing Director at Conway
MacKenzie, Inc., which the Company retained in late 2011 to assist
with its strategic alternatives process. Mr. Young has served as
Senior Managing Director at Conway MacKenzie, Inc., since December
2008. Mr. Young has substantial knowledge and experience
providing restructuring advisory services, including interim
management and debtor advisory, litigation support, post-merger
integration, and debt restructuring and refinancing. Mr. Young's
experience also includes serving in a multitude of advisory
capacities within the energy and oilfield services industries as
well as Lone Star Funds and KPMG Peat Marwick. Mr. Young is a
Certified Public Accountant and received his BBA and MBA from
Baylor University.
R. Seth Bullock - Chief Financial Officer. Mr. Bullock currently
serves as a Director at Conway MacKenzie, Inc., and has served in
that capacity since joining Conway MacKenzie, Inc., in November
2011. From May 2010 through November 2011, he served as Managing
Director at Kenmont Solutions Capital, a direct origination
mezzanine fund focused on middle market companies in the energy,
power and infrastructure sectors. From July 2007 through May
2010, Mr. Bullock served as Analyst at Kenmont Investments
Management, a multi-strategy hedge fund focused on the energy,
power and transportation sectors. Prior to Kenmont, he held
positions of increasing responsibility with Koch Capital Markets,
a division of Koch Industries, Inc. Prior to Koch, Mr. Bullock
held positions of increasing responsibility with Arthur Andersen's
Global Energy Corporate Finance Group. Mr. Bullock holds a BBA in
Finance from Loyola University, New Orleans. He holds the
Chartered Financial Analyst (CFA) designation.
Jacob Mercer - Director. Mr. Mercer is a Senior Portfolio Manager
at Whitebox Advisors having joined them in 2007. Previously, Mr.
Mercer worked for Xcel Energy (XEL) as Assistant Treasurer and
Managing Director. Prior to that, he worked at Piper Jaffray as a
Senior Credit Analyst and Principal and at Voyageur Asset
Management as a Credit Analyst. In addition, Mr. Mercer served as
a Logistics Officer in the United States Army. Mr. Mercer holds a
BA in both Business Management and Economics from St. John's
University. He holds the Chartered Financial Analyst (CFA)
designation.
William Monteleone - Director. Mr. Monteleone is an Associate at
Equity Group Investments (EGI) having joined in 2008. Previously,
Mr. Monteleone worked for Banc of America Securities LLC where he
was involved in a variety of debt capital raising transactions,
including leveraged buyouts, corporate-to-corporate acquisitions
and other debt financing activities. At EGI, he is responsible
for evaluating potential new investments and monitoring existing
investments. In addition to Par Petroleum, Mr. Monteleone serves
on the Board of Directors of Wapiti Oil and Gas, LLC and Kuwait
Energy Company. Mr. Monteleone graduated magna cum laude from
Vanderbilt University with a bachelor's degree.
Benjamin Lurie - Director. Mr. Lurie is an Associate at Equity
Group Investments (EGI) having joined in 2011. Prior to joining
the firm, Mr. Lurie worked at Lurie Investments evaluating and
developing new and existing business opportunities ranging from
technology to services to real estate. At EGI, Mr. Lurie is
responsible for evaluating potential new investments and
monitoring existing investments. He holds a master's degree in
business administration from INSEAD, and a postgraduate
certificate from the United Nations University. He received dual
BAs from the University of Wisconsin-Madison. He holds the
Chartered Financial Analyst (CFA) designation.
Michael R. Keener - Director. Mr. Keener has over 30 years of
experience in the energy sector. Since January 2011, Mr. Keener
has served as a Principal of KP Energy, providing mezzanine debt,
private equity and direct asset ownership primarily with
exploration and production companies in North America. Prior to
joining KP Energy, Mr. Keener worked as a Managing Director in the
energy team of Imperial Capital LLC from October 2009 until
December 2011. From 2003 until their acquisition by Imperial
Capital in October 2009, Mr. Keener served as Principal and
Managing Director of Petrobridge Investment Management. From 1981
to 2003, Mr. Keener served in a number of roles in Royal Dutch
Shell PLC including as Director and Vice President of Shell
Capital and Financial Advisor to Shell Offshore. Mr. Keener also
has served on the Board of Directors of Dune Energy (DUNR) since
January 2012. Mr. Keener holds a degree in Business
Administration from Bloomsburg University and a Masters of
Business Administration from Loyola University.
Melvin Cooper - Director. Mr. Cooper has over 25 years of
experience in various accounting and financial roles. Currently,
Mr. Cooper serves as the Senior Vice President and Chief Financial
Officer of Forbes Energy Services Ltd (FES), a public company in
the energy services industry. Prior to Forbes, Mr. Cooper served
as Senior Vice President and Chief Financial Officer of Cude
Oilfield Contractors, Inc. From 2004 to 2006, Mr. Cooper served
as President of SpectraSource Corporation, a supplier of products
and services to the new home building industry. Beginning in
1999, Mr. Cooper served as Senior Vice President and Chief
Financial Officer of Nationwide Graphics, a printing and supply
chain management company. Prior to Nationwide Graphics, Mr.
Cooper served as President or Chief Financial Officer of various
companies involved in telecommunications, nutritional supplements,
water purification, scrap metal, drilling fluids, and natural gas
marketing. Mr. Cooper also has served on the Board of Directors
of Flotek Industries, Inc. (FTK) since October 2010. In 2011, Mr.
Cooper earned the Board Leadership designation from the National
Association of Corporate Directors. Mr. Cooper received a degree
in accounting from Texas A&M University-Kingsville (formerly Texas
A&I) in 1975 and is a Certified Public Accountant (CPA).
In addition to its interest in Piceance Energy, Par Petroleum owns
an interest in the Point Arguello unit offshore California,
certain miscellaneous oil and gas assets and certain tax
attributes, including significant net operating losses.
About Delta Petroleum
Delta Petroleum Corporation (NASDAQ: DPTR) is an independent oil
and gas company engaged primarily in the exploration for, and the
acquisition, development, production, and sale of, natural gas and
crude oil. Natural gas comprises over 90% of Delta's production
services. The core area of its operations is the Rocky Mountain
Region of the United States, where the majority of the proved
reserves, production and long-term growth prospects are located.
Delta and seven of its subsidiaries sought Chapter 11 bankruptcy
protection (Bankr. D. Del. Case Nos. 11-14006 to 11-14013,
inclusive) on Dec. 16, 2011, roughly six weeks before the Jan. 31,
2012 scheduled maturity of its $38.5 million secured credit
facility with Macquarie Bank Limited and after several months of
unsuccessful attempts to sell the business. Delta disclosed
$375,498,248 in assets and $310,679,157 in liabilities, which also
include $152,187,500 in outstanding obligations on account of the
7% senior unsecured notes issued in March 2005 with US Bank
National Association indenture trustee; and $115,527,083 in
outstanding obligations on account of 3-3/4% Senior Convertible
Notes due 2037 issued in April 2007. In its amended schedules,
the Delta Petroleum disclosed $373,836,358 in assets and
$312,864,788 in liabilities.
W. Peter Beardsley, Esq., Christopher Gartman, Esq., Kathryn A.
Coleman, Esq., and Ashley J. Laurie, Esq., at Hughes Hubbard &
Reed LLP, in New York, N.Y., represent the Debtors as counsel.
Derek C. Abbott, Esq., Ann C. Cordo, Esq., and Chad A. Fights,
Esq., at Morris, Nichols, Arsht & Tunnel LLP, in Wilmington, Del.,
represent the Debtors as co-counsel. Conway Mackenzie is the
Debtors' restructuring advisor. Evercore Group L.L.C. is the
financial advisor and investment banker. The Debtors selected
Epiq Bankruptcy Solutions, LLC as claims and noticing agent. The
petition was signed by Carl E. Lakey, chief executive officer and
president.
Delta Petroleum won confirmation of its reorganization plan at a
hearing on Aug. 15. Laramie Energy II LLC is the plan sponsor.
Delta Petroleum emerged from bankruptcy as Par Petroleum
Corporation. At closing, Laramie and Par Petroleum contributed
their respective assets in Mesa and Garfield counties, Colorado,
to form a new joint venture called Piceance Energy, LLC. Laramie
and Par Petroleum hold 66.66% and 33.34% ownership interests in
Piceance Energy, respectively
The Company reported a net loss of $470.04 in 2011, a net loss of
$194.01 million in 2010, and a net loss of $349.68 million in
2009.
At June 30, 2012, the Company's balance sheet showed $364.75
million in total assets, $342.01 million in total liabilities and
$22.74 million in total Delta stockholders' equity.
DIGITAL GENERATION: S&P Cuts CCR to 'B+'; Still on Watch Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings (including
the corporate credit rating) on Irving, Texas-based Digital
Generation Inc. to 'B+' from 'BB-'. "The ratings remain on
CreditWatch, where they were placed with negative implications on
July 18, 2012. The recovery rating on the secured debt remains at
'3', indicating expectations for meaningful (50%-70%) recovery of
principal in the event of default," S&P said.
"The rating action is based on Digital Generation's weaker-than-
expected operating performance in the second quarter of 2012,"
said Standard & Poor's credit analyst Andy Liu, "and possible
financial covenant pressure if operating performance does not
strengthen in the second half of 2012 and into 2013."
"The original CreditWatch listing was based on Digital
Generation's July announcement that it was exploring strategic
alternatives to increase shareholder value. Possible alternatives
include partnerships, business model alternatives, a sale, or
other transaction," S&P said.
"Digital Generation's operating performance has been below our
expectations. In the second quarter, organic revenues declined 6%
year over year, mainly on weakness in its online segment, and
EBITDA declined 12% year over year. Actual revenue growth during
the quarter was 42%, benefiting from acquisitions. The online
segment was affected by soft demand in Europe as the region dealt
with macroeconomic concerns and some technology transition issues
in North America. Digital Generation's TV segment is more stable,
but its profitability is being affected by lower spending by movie
studio clients as well as overall pricing pressure. As a result,
we are reducing our growth expectations for Digital Generation. We
now expect about 20% revenue growth (mainly from acquisitions) in
2012, and low-single-digit percentage revenue growth in 2013. Our
EBITDA expectations for 2012 and 2013 are for mid- to low-single-
digit percentage annual EBITDA growth," S&P said.
"In the quarter, Digital Generation's margin of compliance with
financial covenants tightened to about 10% because of the EBITDA
decline and a 0.25x step-down in the maximum debt leverage ratio.
We believe the company can maintain an adequate level covenant
compliance over the short term, with $57 million in cash, cash
equivalents, and short-term investments, and our expectation of
more than $50 million in discretionary cash flow in 2012 and 2013.
If operating performance proves weaker than our revised
expectations, the margin of compliance with covenants could narrow
when the maximum debt leverage ratio steps down again in June
2013. For the 12 months ended June 30, 2012, debt leverage was
3.8x, down modestly from 4.0x at the end of 2011, resulting from
debt reduction," S&P said.
"In resolving the CreditWatch listing, we will assess the likely
credit impact of the strategic alternative chosen by Digital
Generation's board of directors and discuss with the management
team its operating and financial strategies. If the company's
margin of financial covenant compliance decreases further from the
current level without prospects of a reversal, and cash and short-
term investments decline meaningfully, we could lower the ratings
to 'B' prior to resolution of the CreditWatch," S&P said.
DISTHENE GROUP: Receivership Order Resolves Stockholder Fight
-------------------------------------------------------------
The Associated Press reports that a judge has ordered a
multimillion-dollar family-owned enterprise in Buckingham County,
Virginia, into receivership.
The Richmond Times-Dispatch said the order signed by Fairfax
County Circuit Court Judge Marum Roush resolves a long-running
legal battle among members of the Dixon family.
Judge Roush appointed a receiver to oversee the liquidation of the
Disthene Group Inc., a holding company that controls the Dixon
family's properties. They include Kynamite Mining Corp. and the
Cavalier Hotel in Virginia Beach, The AP relates.
The order formalizes an opinion issued by Roush that said
mismanagement and oppression of minority stockholders clouded
Disthene's operations for years.
Judge Roush heard the case after Buckingham County judges recused
themselves, The AP.
Disthene's attorneys say they will appeal the decision.
DJO GLOBAL: S&P Lowers CCR to 'B-' on Continuing High Leverage
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Vista, Calif.-based DJO Global Inc. to 'B-' from 'B'.
"We also lowered our issue-level ratings on the outstanding
revolver, term loan, second priority senior secured notes, senior
unsecured notes, and subordinated notes of DJOFL and DJOFC as
follows: revolver and term loan to 'B+' from 'BB-', second-lien
debt to 'B' from 'B+', senior unsecured debt to 'CCC+' from 'B-',
and subordinated debt to 'CCC' from 'CCC+'," S&P said.
"Our recovery ratings on this debt are: revolver and term loan
'1', indicating very high (90% to 100%) recovery; second-lien debt
'2', indicating substantial (70% to 90%) recovery; senior
unsecured debt '5', indicating modest (10% to 30%) recovery; and
subordinated debt '6', indicating negligible (0% to 10%) recovery.
Recovery ratings indicate our estimate of principal recovery in
the event of default," S&P said.
"The rating on DJO Global overwhelmingly reflects Standard &
Poor's expectation that the company's 'highly leveraged'
(according to our criteria) financial profile will remain
characterized by very high debt leverage, nominal free cash flows,
and thin interest coverage," said Standard & Poor's credit analyst
Gail Hessol. "We continue to view DJO's business risk profile as
'fair,' reflecting its solid competitive position in a fairly
stable segment of the medical device market that faces substantial
price pressure."
"We project revenue growth of about 5% in 2012 propelled by
significant new product introductions and businesses acquired
during 2011, similar to our earlier forecast," added Ms. Hessol.
"In subsequent years, we assume DJO's annual revenue growth will
revert to a low-single-digit rate, broadly in line with volume
growth for the markets DJO serves. We expect price increases to
remain negligible in the face of pressure from third-party
government and commercial payors. Global efforts to control health
care costs also include third-party payor restrictions on the
types of products covered. These limitations have restrained DJO's
sales."
"Our rating outlook on DJO is stable, reflecting our expectation
of continued high leverage, low-single-digit annual revenue growth
over the medium term broadly in line with volume growth for the
markets DJO serves, and relatively stable profit margins. We also
assume that DJO will need, at most, moderate borrowing to finance
capital spending and working capital requirements," S&P said.
"We could raise our rating if a combination of wider EBITDA
margins, accelerated growth, or other factors enables DJO to
consistently generate meaningful FOCF and sustain adjusted debt to
EBITDA below 7.5x. We could consider a downgrade if we expect the
covenant cushion to fall below 10% or availability of the revolver
is substantially reduced, resulting in impaired liquidity. This
could occur if new products fail to gain traction or weaker-than-
expected economic conditions in the U.S. or Europe significantly
slow DJO's growth and depress its margins. There is also potential
for intensified price pressure, which we believe could erode
profitability," S&P said.
DVORKIN HOLDINGS: Amends List of Top Unsecured Creditors
--------------------------------------------------------
Dvorkin Holdings, LLC, filed an amended list of its largest
unsecured creditors. Added to the list are Crown Construction &
Development and Focus VI LLC.
Entity Nature of Claim Claim Amount
------ --------------- ------------
Texas 1845 LLC Judgment Rendered $8,259,250
3511 Silverside Drive, Suite 105
Wilmington, DE 19810
Dahl & Bonadies, LLC -- $17,500
330 N. LaSalle Street, Suite 1500
Chicago, IL 60602
Albany Bank Guaranty Unknown
3400 W. Lawrence Avenue
Chicago, IL 60625
Belmont Bank Guaranty Unknown
Blue Star Holdings LLC Guaranty Unknown
BMO Harris Bank Guaranty Unknown
Centier Bank Guaranty Unknown
Crown Construction & Dev. For lien on job Unknown
Dahl & Bonadies LLC fees owed Unknown
Dvorkin Holdings -- Unknown
First Merit Bank Guaranty Unknown
First Nations Bank Guaranty Unknown
Focus VI LLC unpaid distributions Unknown
International Bank Guaranty Unknown
MB Financial Guaranty Unknown
North Shore Bank Guaranty Unknown
Oxford Bank and Trust Guaranty Unknown
Private Bank Guaranty Unknown
Riversource Life Insurance Co. Guaranty Unknown
Schaumburg Bank and Trust Guaranty Unknown
Wells Fargo Bank National Assoc. Guaranty Unknown
Dvorkin Holdings, LLC, filed a Chapter 11 petition (Bankr. N.D.
Ill. Case No. 12-31336) in Chicago on Aug. 7, 2012. The Debtor
estimated assets of at least $10 million and debts of up to
$10 million. Bankruptcy Judge Jack B. Schmetterer oversees the
case. Michael J. Davis, Esq., at Springer, Brown, Covey, Gaetner
& Davis, in Wheaton, Illinois, serves as counsel. The petition
was signed by Loran Eatman, vice president of DH-EK Management
Corp.
EASTGATE TOWER: Hiring Bryan Cave as Bankruptcy Counsel
-------------------------------------------------------
Eastgate Tower Hotel Associates, L.P., seeks formal Court approval
of Bryan Cave LLP as its general bankruptcy attorneys.
Bryan Cave has represented the Debtor before the Petition Date in
preparing for the bankruptcy filing.
Bryan Cave's hourly rates range from $390 to $910. Hourly rates
for associates and counsel range from $200 to $700. The hourly
rates charged for Bryan Cave legal assistants range from $80 to
$315.
Lloyd A. Palans, Esq., attests that Bryan Cave has no connections
to any known creditors of the estate, equity security holders, or
any other parties in interest, or their respective attorneys and
accountants, or the United States Trustee or any person employed
in the office of the United States Trustee, in any matter relating
to the Debtor or its estate. Bryan Cave is a "disinterested
person" as that phrase is defined in section 101(14) of the
Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy
Code.
Bryan Cave received a prepetition retainer of $75,000 from the
Debtor in connection with the preparation and commencement of the
chapter 11 case. Bryan Cave applied the retainer against its
invoices for fees and expenses, all of which were incurred in
contemplation of and in connection with the cases, prior to the
filing of the Debtor's petitions for relief on Aug. 17, 2012, as
well as against the filing fees for the Chapter 11 petition, in
the total amount of $72,333. Bryan Cave proposes that it apply
the remaining balance of $2,666 on its prepetition retainer as a
credit toward postpetition fees and expenses, after such
postpetition fees and expenses are approved pursuant to the final
Court order awarding fees and expenses to Bryan Cave.
The firm may be reached at:
Lloyd A. Palans, Esq.
Jessica Fischweicher, Esq.
BRYAN CAVE LLP
1290 Avenue of the Americas
New York, NY 10104
Telephone: (212) 541-2000
Facsimile: (212) 541-1943
E-mail: lapalans@BryanCave.com
About Eastgate Tower
Eastgate Tower Hotel Associates, L.P., filed a Chapter 11 petition
(Bankr. S.D.N.Y. Case No. 12-13539) in Manhattan on Aug. 17, 2012,
with a prepack plan of reorganization. Judge Shelley C. Chapman
oversees the case. Lloyd A. Palans, Esq., at Bryan Cave LLP, in
New York, serves as counsel to the Debtor.
The Debtor owns property at 222 East 39th Street commonly known as
the Eastgate Hotel. In its petition, the Debtor listed $50
million to $100 million in both assets and debts. The Debtor owes
$69.02 million to LSREF2 Clover LLC pursuant to mortgage loans.
The Debtor defaulted on the mortgage loans in December 2011. In
April 2012, Atlas Capital Group LLC and Rockpoint Group, owner
of membership interests of the mortgage lender, proposed a
prepackaged consensual Chapter 11 plan of liquidation.
Under the Prepack Plan submitted by the Debtor, the mortgage
lender would have an 89.82% recovery. Unsecured creditors owed a
total of $154,000 would recover 100% and are unimpaired.
The mortgage lender has agreed to reduce the claim to $50 million
and will accept title to the Debtor's property in full
satisfaction of its claims. The Debtor will retain cash necessary
to pay off administrative claims and unsecured claims. Peninsula
Real Estate Fund (owner of 99% limited partnership interest) and
Eastgate Hotel Associates GP, LLC (owner of 1%) would have their
interest cancelled. Peninsula though will retain "profits
participation rights" upon confirmation of the Plan.
On Aug. 21, the Bankruptcy Court approved a plan support agreement
under which the hotel's lender promised to cover the expenses that
Eastgate Tower can't pay during its Chapter 11 case.
EASTMAN KODAK: Makes Changes to Align With Restructuring Plan
-------------------------------------------------------------
Antonio M. Perez, chairman and chief executive officer of Eastman
Kodak Company disclosed organizational changes and expanded cost
structure reductions to reflect Kodak's strategic focus on the
Commercial, Packaging & Functional Printing Solutions and
Enterprise Services business, and the sales processes of its
Personalized Imaging and Document Imaging businesses.
"Kodak is becoming a more focused and competitively scaled
company," Perez said. "We recognize that we must significantly
and expeditiously reduce our current cost structure, which is
designed for a much larger, more diversified set of businesses.
We are reorganizing our senior management team, an action that
will help accelerate the creation of a sustainable cost structure
for operating our business for the benefit of our customers and
position our Personalized Imaging and Document Imaging businesses
for successful sales."
Kodak said that it is making progress in the complex operational
restructuring necessary for the separation of its three businesses
and the consolidation of its corporate structure. The company has
reduced its workforce by approximately 2,700 employees worldwide
since the beginning of 2012. Kodak expects to reduce its
workforce by approximately an additional 1,000 employees by the
end of 2012. The annualized savings generated by these headcount
reductions, including compensation and benefits, is approximately
$330 million. An analysis of further operational and workforce
reductions is under way.
Under the new management structure:
The Commercial, Packaging & Functional Printing Solutions and
Enterprise Services business will primarily include the Digital
Printing and Enterprise (DP&E) and Graphics, Entertainment and
Commercial Films (GECF) units. DP&E President Douglas J. Edwards
and GECF President Brad W. Kruchten will report directly to Perez.
Philip J. Faraci, President, is leaving the company. Perez noted
that as Chief Operating Officer, Faraci played an important role
in helping transform the company. With Faraci's assistance, the
company has developed excellent operational leadership processes
to take forward its remaining businesses.
Chief Financial Officer Antoinette P. McCorvey has decided to
leave the company. Rebecca A. Roof, a managing director of
AlixPartners, the company's restructuring advisory firm, will
become Chief Financial Officer on an interim basis, reporting to
Perez. Roof has served in similar capacities for other companies
that have successfully emerged from Chapter 11 restructurings, and
she has deep experience in scaling overhead costs, implementing
cost reduction programs, managing liquidity and raising capital,
and executing asset sales - all critical areas of focus for Kodak
as the company concludes it's restructuring.
Laura G. Quatela, Kodak President, will assume the additional role
of President, Personalized Imaging, and lead that business through
its sale process.
Dolores Kruchten will become President, Document Imaging, to lead
that business through its sale process.
Quatela and Dolores Kruchten are expected to remain with Kodak
until the sales of their respective businesses are completed in
the first half of 2013.
The company will report three business segments: Digital Printing
and Enterprise; Graphics, Entertainment and Commercial Films; and
a new segment led by Laura Quatela that includes the two
businesses for sale, Personalized Imaging and Document Imaging.
"This business structure puts the right people in the right
positions to accomplish the key tasks that will help Kodak
successfully emerge," commented Perez.
"We wish Phil Faraci well. Kodak and I both owe Phil a debt of
gratitude for his outstanding contribution as Kodak's Chief
Operating Officer. At this time, Phil and I have agreed that our
management team must be scaled and aligned with the future size
and structure of the business.
"I also want to express my appreciation to Ann McCorvey for the
substantial contributions she has made to Kodak. She is a skilled
and dedicated senior executive, and as CFO, she played an
important role in putting our company on the path to emergence.
"Under this leadership structure, we are confident that we will
move Kodak forward to conclude the Chapter 11 process and position
the Kodak that emerges as a growing, sustainable, profitable
company that continues to meet the needs of our customers."
About Eastman Kodak
Rochester, New York-based Eastman Kodak Company and its U.S.
subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11
petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan.
Subsidiaries outside of the U.S. were not included in the filing
and are expected to continue to operate as usual.
Kodak, founded in 1880 by George Eastman, was once the world's
leading producer of film and cameras. Kodak sought bankruptcy
protection amid near-term liquidity issues brought about by
steeper-than-expected declines in Kodak's historically profitable
traditional businesses, and cash flow from the licensing and sale
of intellectual property being delayed due to litigation tactics
employed by a small number of infringing technology companies with
strong balance sheets and an awareness of Kodak's liquidity
challenges.
In recent years, Kodak has been working to transform itself from a
business primarily based on film and consumer photography to a
smaller business with a digital growth strategy focused on the
commercialization of proprietary digital imaging and printing
technologies. Kodak has 8,900 patent and trademark registrations
and applications in the United States, as well as 13,100 foreign
patents and trademark registrations or pending registration in
roughly 160 countries.
Kodak disclosed $5.10 billion in assets and $6.75 billion in
liabilities as of Sept. 30, 2011. The net book value of all
assets located outside the United States as of Dec. 31, 2011 is
$13.5 million.
Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Debtors. FTI Consulting,
Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is
the investment banker. Kurtzman Carson Consultants LLC is the
claims agent.
The Official Committee of Unsecured Creditors has tapped
Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel.
Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the
Unofficial Second Lien Noteholders Committee.
Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato,
Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners
II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth
S. Grossman; and Paul Martin.
EASTMAN KODAK: Cuts 1,000 Jobs as Cash Falls 36% in Chapter 11
--------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Eastman Kodak Co. will fire another 1,000 workers by
the year's end to "significantly and expeditiously reduce our cost
structure," the company said in a statement Sept. 10. The new
cuts come on top of 2,700 jobs previously eliminated this year.
According to the report, Kodak said the new cuts will save
$330 million annually. The savings follow Kodak's latest report
showing that the cash balances of the companies in bankruptcy
reorganization declined by $72 million in July, to end the month
at $438.2 million. Kodak's cash has been declining throughout the
Chapter 11 reorganization begun in January. By the end of July,
cash had shrunken by 36% from the $682.8 million in cash and cash
equivalents on hand at Feb. 29.
The report relates that Kodak also disclosed that Philip Faraci,
chief operating officer, and Antoinette McCovey, chief financial
officer, are leaving the company. Kodak had been intending to
sell the digital imaging portfolio in August. The sale was pushed
back several times and is now on the bankruptcy court's calendar
for Sept. 19, assuming there is a buyer located in the meantime.
The report notes that Kodak's $400 million in 7% convertible notes
due in 2017, which sold for 21.055 cents on the dollar on Aug. 9,
traded at 1:45 p.m. Sept. 10 for 14 cents on the dollar, according
to Trace, the bond-price reporting system of the Financial
Industry Regulatory Authority. The decline occurred after Kodak
was unable to find a buyer for the technology by the company's
self-imposed deadline last month.
About Eastman Kodak
Rochester, New York-based Eastman Kodak Company and its U.S.
subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11
petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan.
Subsidiaries outside of the U.S. were not included in the filing
and are expected to continue to operate as usual.
Kodak, founded in 1880 by George Eastman, was once the world's
leading producer of film and cameras. Kodak sought bankruptcy
protection amid near-term liquidity issues brought about by
steeper-than-expected declines in Kodak's historically profitable
traditional businesses, and cash flow from the licensing and sale
of intellectual property being delayed due to litigation tactics
employed by a small number of infringing technology companies with
strong balance sheets and an awareness of Kodak's liquidity
challenges.
In recent years, Kodak has been working to transform itself from a
business primarily based on film and consumer photography to a
smaller business with a digital growth strategy focused on the
commercialization of proprietary digital imaging and printing
technologies. Kodak has 8,900 patent and trademark registrations
and applications in the United States, as well as 13,100 foreign
patents and trademark registrations or pending registration in
roughly 160 countries.
Kodak disclosed $5.10 billion in assets and $6.75 billion in
liabilities as of Sept. 30, 2011. The net book value of all
assets located outside the United States as of Dec. 31, 2011 is
$13.5 million.
Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Debtors. FTI Consulting,
Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is
the investment banker. Kurtzman Carson Consultants LLC is the
claims agent.
The Official Committee of Unsecured Creditors has tapped
Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel.
Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the
Unofficial Second Lien Noteholders Committee.
Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato,
Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners
II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth
S. Grossman; and Paul Martin.
EMAK WORLDWIDE: Sues Ropes & Gray Over Shareholder Fallout
----------------------------------------------------------
Maria Chutchian at Bankruptcy Law360 reports that the successor to
fallen marketing services company EMAK Worldwide Inc. has sued
Ropes & Gray LLP, claiming the advice one of its former attorneys
gave EMAK relating to a proxy battle contributed to its descent
into bankruptcy.
In a suit filed Aug. 30, Bankruptcy Law360 says EMAK Holdings Inc.
accuses the law firm of professional negligence after its former
attorney Christopher Austin advised it to enter into what turned
out to be an illegal transaction that transferred EMAK's primary
preferred stock shareholder into a different series of preferred
stock.
About Emak Worldwide
Los Angeles, California-based EMAK Worldwide, Inc., a Delaware
corporation, fka Equity Marketing, Inc., filed for Chapter 11
bankruptcy protection (Bankr. C.D. Calif. Case No. 10-42779) on
Aug. 5, 2010. Jeffrey M. Reisner, Esq., at Irell & Manella LLP,
assists the Debtor in its restructuring effort. The Debtor
disclosed $4,392,115 in assets and $7,485,567 in liabilities as of
the Petition Date.
Affiliate EMAK Worldwide Service Corp., filed a separate Chapter
11 petition (Bank. C.D. Calif. Case No. 10-42784) on Aug. 5, 2010.
EMAK Worldwide Service disclosed $4,423,652 in assets and
$3,123,135 in liabilities as of the Petition Date.
EMAK's other operating subsidiaries are excluded from these
voluntary petitions, including its Equity Marketing, Logistix,
Neighbor and Upshot agencies and operations in Asia.
Troubled Company Reporter , Jun 13, 2011 ( Source: TCR)
EMAK Worldwide Inc. disclosed that the U.S. Bankruptcy Court for
the Central District of California confirmed its Plan of
Reorganization. The Plan was supported by the committee of
creditors appointed in the case.
EVERGREEN TANK: S&P Affirms 'B' Corp. Credit Rating on Refinancing
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' issue-level
rating to Houston-based Evergreen Tank Solutions Inc.'s (ETS)
proposed $165 million term loan. "The recovery rating is '5',
indicating our expectation of modest (10%-30%) recovery in the
event of a payment default scenario. At the same time, we affirmed
the 'B' corporate credit rating on ETS. The outlook is stable. The
company will use proceeds from the term loan to redeem its
existing $100 million second-lien term loan and approximately $33
million in senior subordinated notes. The company will also have
an unrated $65 million asset-based revolving credit facility," S&P
said.
"The ratings on ETS reflect Standard & Poor's expectation that the
company will generate slightly negative free cash flow in 2012 and
will maintain leverage less than 6x, a level we consider
appropriate for the rating," said Standard & Poor's credit analyst
Sarah Wyeth. S&P's forecast assumes:
Double-digit top-line growth in 2012 as ETS benefits from good
demand from petrochemical markets and stable shale drilling
activity;
A stable EBITDA margin above 50%, with some lower margin
services offsetting operating leverage;
Above-average capital expenditures to fund expansion,
resulting in negative free cash flow and leverage about 4x for
the year.
"The ratings also reflect our view of the company's 'vulnerable'
business risk profile (as defined by our criteria), characterized
by its participation in the cyclical and capital-intensive
equipment rental industry. ETS rents liquid and solid storage
containers and provides related services to refineries, chemical
companies, and oil and gas field service companies. The company
also generates a minimal amount of sales from new equipment. ETS
faces competition from larger players such as BakerCorp
(B/Stable/--) and Rain for Rent Inc. (not rated). These top three
players control a sizable portion of the industry. The remainder
of the market is very fragmented. In the long term, the company
could benefit from environmental regulation," S&P said.
"The vulnerable business risk profile assessment also reflects
ETS' narrow scope of operations and limited geographic and product
diversity. More than 80% of its revenue comes from tank and box
storage units, and its limited geographic focus makes it
susceptible to regional industry and economic volatility. The
company has revenues of less than $100 million per year and is
highly exposed to operating risks and cyclical market downturns,"
S&P said.
"The recent recession caused many of ETS' customers to reduce or
delay capital expenditures. However, ETS' expansion into areas
where horizontal drilling, or fracking, has increased, such as the
Marcellus Shale in Pennsylvania, slightly offset this lower
demand. Petrochemical customers are now returning to regular
levels of maintenance spending after cutting back during the
downturn. As with many equipment rental and leasing companies,
ETS' operating margins are high. However, significant capital
requirements offset the margins," S&P said.
"The company's financial risk profile is 'aggressive.' We believe
free cash flow generation will likely be negative in 2012 as the
company invests in new regions. In 2013, we expect a lower level
of capital expenditure to result in modestly positive free cash
flow. For the 12 months ended June 30, 2012, the pro forma ratio
of total debt to EBITDA was about 4.2x, and the ratio of funds
from operations (FFO) to total debt was about 14%, better than our
expectations for the rating of 5x-6x and 10%, respectively," S&P
said.
"The outlook is stable. We expect demand for ETS' services will be
stable, partly because of continued shale exploration. If the
company's operating performance declines or the company's rental
equipment purchases lead to negative free cash flow and push
leverage higher than 6x, we could lower the ratings. Our
assessment of the company's business risk profile as vulnerable
and financial policy as very aggressive limits the likelihood of
an upgrade," S&P said.
FAIRWAY COMMONS: Court Dismisses Chapter 11 Case
------------------------------------------------
The U.S. Bankruptcy Court in April entered an order dismissing the
chapter 11 case of Fairway Commons II, LLC. In June, the judge
ordered the case closed in light of the dismissal.
Kobra EFS, in Roseville, California, filed for Chapter 11
bankruptcy (Bankr. E.D. Calif. Case No. 11-35250) on June 20,
2011. Affiliates that also sought Chapter 11 protection are
Fairway Commons II, LLC (Case No. 11-35255) and Eureka Ridge, LLC
(Case No. 11-35256). Judge Christopher M. Klein presides over the
case. Paul A. Warner, Esq., serves as the Debtors' bankruptcy
counsel. Kobra EFS and Fairway Commons II separately estimated
$10 million to $50 million in both assets and debts.
FIRST COMMERCIAL: Closed; Republic Bank & Trust Assumes Deposits
----------------------------------------------------------------
First Commercial Bank of Bloomington, Minn., was closed Friday,
Sept. 7, by the Minnesota Department of Commerce, which appointed
the Federal Deposit Insurance Corporation as receiver. To protect
the depositors, the FDIC entered into a purchase and assumption
agreement with Republic Bank & Trust Company of Louisville, Kent.,
to assume all of the deposits of First Commercial Bank.
The sole branch of First Commercial Bank will reopen during its
normal banking hours as a branch of Republic Bank & Trust Company.
Depositors of First Commercial Bank will automatically become
depositors of Republic Bank & Trust Company. Deposits will
continue to be insured by the FDIC, so there is no need for
customers to change their banking relationship in order to retain
their deposit insurance coverage up to applicable limits.
Customers of First Commercial Bank should continue to use their
existing branch until they receive notice from Republic Bank &
Trust Company that it has completed systems changes to allow other
Republic Bank & Trust Company branches to process their accounts
as well.
As of June 30, 2012, First Commercial Bank had around $215.9
million in total assets and $206.8 million in total deposits. In
addition to assuming all of the deposits of the First Commercial
Bank, Republic Bank & Trust Company agreed to purchase essentially
all of the assets.
Customers with questions about the transaction should call the
FDIC toll-free at 1-800-528-4893. Interested parties also can
visit the FDIC's Web site at
http://www.fdic.gov/bank/individual/failed/firstcommbk_mn.html.
The FDIC estimates that the cost to the Deposit Insurance Fund
will be $63.9 million. Compared to other alternatives, Republic
Bank & Trust Company's acquisition was the least costly resolution
for the FDIC's DIF. First Commercial Bank is the 41st FDIC-
insured institution to fail in the nation this year, and the
fourth in Minnesota. The last FDIC-insured institution closed in
the state was Inter Savings Bank, fsb D/B/A InterBank, fsb, Maple
Grove, on April 27, 2012.
FIRSTFED FINANCIAL: Holdco Seeks Protective Order
-------------------------------------------------
BankruptcyData.com reports that FirstFed Financial creditor Holdco
Advisors filed with the U.S. Bankruptcy Court a motion for a
protective order preventing trade secrets or other confidential
research, development or commercial information from being
revealed at the deposition of a Holdco representative or in
response to discovery requests from the Federal Deposit Insurance
Corporation (FDIC).
Holdco asserts, "The production of the material that the FDIC
seeks would cause Holdco irreparable and substantial harm to its
core business and profitability."
About FirstFed Financial
Irvine, Calif.-based FirstFed Financial Corp. is the bank
holding company for First Federal Bank of California and its
subsidiaries. The Bank was closed by federal regulators on
Dec. 18, 2009.
FirstFed Financial Corp. filed for Chapter 11 protection (Bankr.
C.D. Calif. Case No. 10-10150) on Jan. 6, 2010. Jon L. Dalberg,
Esq., at Landau Gottfried & Berger LLP, represents the Debtor in
its restructuring effort. Garden City Group is the claims and
notice agent. The Debtor disclosed assets at $1 million and
$10 million, and debts at $100 million and $500 million.
The Debtor's exclusive period to propose a plan expired in
January 2011.
The Debtor has proposed a Plan of Liquidation, which proposes an
orderly liquidation of the Debtor's estate. Holdco Advisors L.P.,
submitted a competing plan of reorganization.
FR 160: Flagstaff Ranch Golf Club Seeks Case Dismissal
------------------------------------------------------
Flagstaff Ranch Golf Club, an Arizona non-profit organization, is
asking the bankruptcy court to enter an order dismissing the
bankruptcy case of FR 160 LLC.
FRGC, owner and operator of various parcels within the Debtor's
Flagstaff Ranch, says the case should be dismissed on the grounds
that the Debtor has sufficient funds to compensate all legitimate
creditors and that the Debtor's bankruptcy petition was filed in
bad faith.
FRGC says nothing in any of the Debtor's filings or disclosures to
the Court suggest a viable company. While the Debtor may have
sufficient funds to compensate its outstanding creditors, it has
no income, no cash on hand, and apparently no prospect of future
earnings.
According to FRGC, the Debtor's schedules expressly indicate that
it has no operating assets, inventory, or equipment that would be
typical of a company that could possibly rehabilitate its
financial condition.
FRGC tells the Court that beginning in January 2012, the Debtor
ceased making timely payments of the Membership dues, Ranch
Property Owners Association dues and Flagstaff Ranch Mutual Waste
Water Company assessments owed on the Debtor's 59 lots in
Flagstaff Ranch continue to accrue as required by the Master
Covenants, Conditions, and Restrictions for Flagstaff Ranch Golf
Club Residential Community and the parties' Settlement agreement.
The Debtor's debts to FRGC continue to grow, at a loss to the
bankruptcy estate, with no end in sight, FRGC points out.
The hearing on the motion to dismiss is set for Sept. 18, 2012 at
11:00 AM at 230 N. First Ave., 7th Floor, Courtroom 703, Phoenix.
FRGC is represented by:
Thomas E. Littler, ESQ.
Robert C. Warnicke, Esq.
Courtney R. Radow, Esq.
GORDON SILVER
One East Washington, Suite 400
Phoenix, AZ 85004
Tel: (602) 256-0400
Fax: (602) 256-0345
E-mail: tlittler@gordonsilver.com
rwarnicke@gordonsilver.com
cradow@gordonsilver.com
About FR 160
FR 160 LLC, originally named IMH Special Asset NT 160 LLC, was
formed the purpose of owning 51 residential lots and Tract H at
the Flagstaff Ranch Golf Club Community generally located in
Coconino County, Arizona. FR 160, which claims to be a Single
Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), estimated
assets of up to $50 million and debts of up to $100 million.
Attorneys at Snell & Wilmer L.L.P. serve as counsel.
The U.S. Trustee has not appointed an official committee in the
case due to an insufficient number of persons holding unsecured
claims against the Debtor that have expressed interest in serving
on a committee. The U.S. Trustee reserves the right to appoint a
committee should interest develop among the creditors.
FUNDEX GAMES: Board Game Maker Files for Bankruptcy in Indiana
--------------------------------------------------------------
Fundex Games Ltd., in Plainfield, Indiana, filed a petition for
Chapter 11 bankruptcy relief (Bankr. S.D. Ind. Case No. 12-10736)
on Sept. 7, 2012, disclosing $1.47 million in assets and
$8.88 million in liabilities. The petition said debts are
primarily business debts.
Fundex is represented in the case by:
KC Cohen, Esq.
151 N Delaware St., Suite 1104
Indianapolis, IN 46204
Tel: 317-715-1845
Fax: 317-916-0406
E-mail: kc@esoft-legal.com
The petition was signed by Carl E. Voigt IV, the president.
According to Rachel Feintzeig, writing for Dow Jones' Daily
Bankruptcy Review, the maker of "innovative leisure time products"
-- think jump ropes, card games and board games like "Hot Potato,"
"Inch Worms" and "Booby Trap" -- is seeking court approval to use
cash collateral to keep it afloat as its case plays out. The
company said it is planning to keep its business operating in the
ordinary course but is not ruling out the idea of selling its
assets in bankruptcy.
According to DBR, the company said in court filings it "urgently
needs working capital to continue such business operations, and is
unable to obtain post-petition financing from any source other
than the use of cash collateral. According to the report, Fundex
said its "inability to obtain and maintain sufficient operating
liquidity to meet its post-petition obligations on a timely basis
may result in a permanent and irreplaceable loss of value in its
assets and a resultant diminution in the value of the Debtor to
the detriment of its creditors."
GARDA WORLD: Moody's Reviews 'B1' CFR/PDR for Downgrade
-------------------------------------------------------
Moody's Investors Service placed Garda World Security
Corporation's ("Garda") B1 corporate family rating, B1 probability
of default rating, B2 senior unsecured notes ratings, and the Ba1
senior secured bank facilities ratings of Garda's subsidiary, The
Garda Security Group Inc. ("GSG") under review for possible
downgrade. The company's speculative grade liquidity rating was
affirmed at SGL-3. The rating action follows Garda's announcement
that a buy-out group led by CEO Stephan Cretier and a subsidiary
of funds advised by private equity firm Apax Partners ("Apax")
have offered to acquire the company for about C$1.1 billion on an
enterprise value basis. The transaction is subject to shareholder
approval, which is expected to be sought at a shareholder meeting
in October 2012.
Ratings Rationale
The review will focus on potential changes to Garda's capital
structure, Garda's appetite for future acquisitions as a private
company, and the impact the transaction will have on its
liquidity, including its plans to deal with the potential early
repayment of its bank debt and notes, which are subject to change
of control provisions. Garda's ratings could be downgraded if
Moody's determines that Garda's initial leverage would increase
materially or if a shift in the company's acquisition strategy
were to hinder its ability to deleverage. In the event the
transaction closes and its shares are delisted, Moody's would
require Garda to continue to provide sufficient financial
information in order for the ratings to be maintained.
The principal methodology used in rating Garda was the Global
Business & Consumer Service Industry Methodology published in
October 2010. Other methodologies used include Loss Given Default
for Speculative-Grade Non-Financial Companies in the U.S., Canada
and EMEA published in June 2009.
Headquartered in Montreal, Canada, Garda World Security
Corporation is a global provider of cash logistics (including
armored cars), physical security (including airport pre-screening
at 28 of Canada's airports) and risk consulting services (physical
security outside of North America). Revenue for the last twelve
months ended April 30, 2012 was about $1.3 billion.
GENE CHARLES: Schedules of Assets & Debts Due Sept. 14
------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of West
Virginia has granted the motion of Gene Charles Valentine Trust
for the extension until Sept. 14, 2012, of the deadline for the
filing of the Debtor's schedules of assets and liabilities.
About Gene Charles Valentine Trust
A business trust created by investment advisor and broker-dealer
agent Gene Charles Valentine sought Chapter 11 bankruptcy
protection (Bankr. N.D. W.Va. Case No. 12-01078) in Wheeling, West
Virginia on Aug. 9, 2012. The Gene Charles Valentine Trust owns
commercial and real estate properties in West Virginia, the
Financial West Group, the Peace Point Equestrian Center and the
Aspen Manor. It estimated $10 million to $50 million in assets
and up to $10 million in liabilities.
Financial West Investment Group, Inc., doing business as Financial
West Group -- http://www.fwg.com/-- is a firm with over 340
registered representatives supervised by 44 Offices of Supervisory
Jurisdiction throughout the United States. Financial West Group
is a FINRA, and SIPC member and SEC Registered Investment Advisor
(over $1 billion under control) that offers a full range of
financial products and services. Its corporate office 32 member
staff is dedicated to providing registered representatives quality
service and technology to allow them to focus on best servicing
their investors needs.
Aspen Manor -- http://www.aspenmanorresort-- is a resort that
claims to be the "The Jewel of the Ohio Valley." Along with its
architectural artistry, including hand-carved ceilings, the Manor
is filled will original art, statues, historic furniture and
artifacts.
Bankruptcy Judge Patrick M. Flatley oversees the case. The Trust
hired Mazur Kraemer Law Inc., as bankruptcy counsel.
GENE CHARLES: Wants to Employ Weir & Partners as Co-Counsel
-----------------------------------------------------------
Gene Charles Valentine Trust asks the U.S. Bankruptcy Court for
the Northern District of West Virginia for authorization to employ
Weir & Parners LLP, as co-counsel for the Debtor, nunc pro tunc to
Aug. 9, 2012. W&P will assist and consult with Debtor's lead and
local counsel MazurKraemer Business Law, for the following
purposes:
a. providing legal assistance and counseling with respect to the
Chapter 11 case;
b. providing legal advice with respect to assisting Debtor in
the preparation of the Plan of Reorganization and Disclosure
Statement;
c. providing legal assistance with respect to Confirmation of
the Plan of Reorganization; and
D performing all other legal services for the Debtor that may
be necessary and proper in the proceedings.
To the best of the Debtor's knowledge, W&P does not hold or
represent any interest adverse to the Debtor or the Debtor's
estate with respect to the matters regarding which W&P is to be
employed.
Subject to Court approval under Section 330(a) of the Bankruptcy
Code, W&P has received a retainer from the Debtor in the amount of
$15,000 for its services and costs.
About Gene Charles Valentine Trust
A business trust created by investment advisor and broker-dealer
agent Gene Charles Valentine sought Chapter 11 bankruptcy
protection (Bankr. N.D. W.Va. Case No. 12-01078) in Wheeling, West
Virginia on Aug. 9, 2012. The Gene Charles Valentine Trust owns
commercial and real estate properties in West Virginia, the
Financial West Group, the Peace Point Equestrian Center and the
Aspen Manor. It estimated $10 million to $50 million in assets
and up to $10 million in liabilities.
Financial West Investment Group, Inc., doing business as Financial
West Group -- http://www.fwg.com/-- is a firm with over 340
registered representatives supervised by 44 Offices of Supervisory
Jurisdiction throughout the United States. Financial West Group
is a FINRA, and SIPC member and SEC Registered Investment Advisor
(over $1 billion under control) that offers a full range of
financial products and services. Its corporate office 32 member
staff is dedicated to providing registered representatives quality
service and technology to allow them to focus on best servicing
their investors needs.
Aspen Manor -- http://www.aspenmanorresort-- is a resort that
claims to be the "The Jewel of the Ohio Valley." Along with its
architectural artistry, including hand-carved ceilings, the Manor
is filled will original art, statues, historic furniture and
artifacts.
Bankruptcy Judge Patrick M. Flatley oversees the case. The Trust
hired Salene Mazur Kraemer, Esq., as bankruptcy counsel.
GRANITE DELLS: Faces Investor's Scrutiny Over Ranch Land
--------------------------------------------------------
Jamie Santo at Bankruptcy Law360 reports that an investor in
Granite Dells Ranch Holdings LLC asked an Arizona bankruptcy judge
on Thursday to compel the debtor to produce answers and documents
regarding the finances of a company that managed its ranch land,
which is tied up in a $90 million promissory note.
According to Bankruptcy Law360, Tri-City Investment & Development
LLC, an interested party in the Chapter 11 proceedings, filed the
request for admission, nonuniform interrogatories and documents
from Cavan Management Services under Section 2004 of the
Bankruptcy Code.
About Granite Dells Ranch Holdings
Scottsdale, Arizona-based Granite Dells Ranch Holdings LLC filed a
bare-bones Chapter 11 petition (Bankr. D. Ariz. Case No. 12-04962)
in Phoenix on March 13, 2012. Judge Redfield T. Baum PCT Sr.
oversees the case. The Debtor is represented by Alan A. Meda,
Esq., at Stinson Morrison Hecker LLP. The Debtor disclosed
$2.22 million in assets and $157 million in liabilities as of the
Chapter 11 filing.
Cavan Management Services, LLC is the Debtor's manager. David
Cavan, member of the firm, signed the Chapter 11 petition.
Arizona ECO Development LLC, which acquired a $83.2 million 2006
loan by the Debtor, is represented by Snell & Wilmer L.L.P. The
resolution authorizing the Debtor's bankruptcy filing says the
Company is commencing legal actions against Stuart Swanson, AED,
and related entities relating to the purchase by Mr. Swanson of a
promissory note payable by the Company to the parties that sold a
certain property to the Company. According to Law 360, AED sued
Granite Dells on March 6 asking the Arizona court to appoint a
receiver. Arizona ECO is foreclosing on a secured loan backed by
15,000 acres of Arizona land.
The United States Trustee said that an official committee has not
been appointed in the bankruptcy case of Granite Dells because an
insufficient number of unsecured creditors have expressed interest
in serving on a committee.
HARRISBURG, PA: Gov. Corbett Blasts Suit Challenging Takeover
-------------------------------------------------------------
Matt Fair at Bankruptcy Law360 reports that Pennsylvania Gov. Tom
Corbett asked a federal judge Wednesday to throw out a lawsuit by
a group of Harrisburg City Council members challenging the state's
takeover of the fiscally troubled city, arguing that the
legislators lacked legal standing to bring the complaint.
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).
Dismissal of the Chapter 9 petition was upheld in a U.S. District
Court.
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.
Mr. Unkovic resigned as receiver March 30, 2012.
HAWKER BEECHCRAFT: Seeks OK for $2.9MM Land Sale to Wichita
-----------------------------------------------------------
Bill Donahue at Bankruptcy Law360 reports that Hawker Beechcraft
Inc. asked a New York bankruptcy judge Thursday to allow it to
sell a strip of highway-adjacent property to Wichita, Kan., for
$2.9 million, saying it feared the city would take the land
through eminent domain.
According to Bankruptcy Law360, the bankrupt aircraft maker said
it had little use for the roughly 423,000-square-foot patch of
land along U.S. 54 in Wichita, and that selling the land now would
bring a better return for investors than if the city seizes the
land for a planned highway expansion.
About Hawker Beechcraft
Hawker Beechcraft Acquisition Company, LLC, headquartered in
Wichita, Kansas, manufactures business jets, turboprops and piston
aircraft for corporations, governments and individuals worldwide.
Hawker Beechcraft reported a net loss of $631.90 million on
$2.43 billion of sales in 2011, compared with a net loss of
$304.30 million on $2.80 billion of sales in 2010.
Hawker Beechcraft Inc. and 17 affiliates filed for Chapter 11
reorganization (Bankr. S.D.N.Y. Lead Case No. 12-11873) on May 3,
2012, having already negotiated a plan that eliminates $2.5
billion in debt and $125 million of annual cash interest expense.
The plan will give 81.9% of the new stock to holders of $1.83
billion of secured debt, while 18.9% of the new shares are for
unsecured creditors. The proposal has support from 68% of secured
creditors and holders of 72.5% of the senior unsecured notes.
Hawker is 49%-owned by affiliates of Goldman Sachs Group Inc. and
49%-owned by Onex Corp. The Company's balance sheet at Dec. 31,
2011, showed $2.77 billion in total assets, $3.73 billion in total
liabilities and a $956.90 million total deficit. Other claims
include pensions underfunded by $493 million.
Hawker's legal representative is Kirkland & Ellis LLP, its
financial advisor is Perella Weinberg Partners LP and its
restructuring advisor is Alvarez & Marsal. Epiq Bankruptcy
Solutions LLC is the claims and notice agent.
Sidley Austin LLP serves as legal counsel and Houlihan Lokey
Howard & Zukin Capital Inc. serves as financial advisor to the DIP
Agent and the Prepetition Agent.
Wachtell, Lipton, Rosen & Katz represents an ad hoc committee of
senior secured prepetition lenders holding 70% of the loans.
Milbank, Tweed, Hadley & McCloy LLP represents an ad hoc committee
of holders of the 8.500% Senior Fixed Rate Notes due 2015 and
8.875%/9.625% Senior PIK Election Notes due 2015 issued by Hawker
Beechcraft Acquisition Company LLC and Hawker Beechcraft Notes
Company. The members of the Ad Hoc Committee -- GSO Capital
Partners, L.P. and Tennenbaum Capital Partners, LLC -- hold claims
or manage accounts that hold claims against the Debtors' estates
arising from the purchase of the Senior Notes. Deutsche Bank
National Trust Company, the indenture trustee for senior fixed
rate notes and the senior PIK-election notes, is represented by
Foley & Lardner LLP.
An Official Committee of Unsecured Creditors appointed in the case
has selected Daniel H. Golden, Esq., and the law firm of Akin Gump
Strauss Hauer & Feld LLP as legal counsel.
HILL FARM: Case Summary & 15 Unsecured Creditors
------------------------------------------------
Debtor: Hill Farm Associates, LLC
102 Larch Circle, Suite 301
Wilmington, DE 19804
Bankruptcy Case No.: 12-12519
Chapter 11 Petition Date: September 5, 2012
Court: U.S. Bankruptcy Court
District of Delaware (Delaware)
Judge: Peter J. Walsh
Debtor's Counsel: Kevin Scott Mann, Esq.
CROSS & SIMON, LLC
913 N. Market Street, 11th Floor
P.O. Box 1380
Wilmington, DE 19899-1380
Tel: (302) 777-4200
Fax: (302) 777-4224
E-mail: kmann@crosslaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A copy of the Company's list of its 15 unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/deb12-12519.pdf
The petition was signed by Michael Stortini, managing member.
HW HEARTLAND: Sec. 341 Creditors' Meeting Set for Oct. 2
--------------------------------------------------------
The U.S. Trustee in Dallas, Texas, will convene a Meeting of
Creditors pursuant to 11 U.S.C. Sec. 341(a) in the Chapter 11 case
of HW Heartland, L.P., on Oct. 2, 2012, at 1:00 p.m. at Dallas,
Room 976.
Proofs of claim are due in the case by Dec. 31, 2012.
HW Heartland, L.P., filed a Chapter 11 petition (Bankr. N.D. Tex.
Case No. 12-35790) in its hometown in Dallas on Sept. 3, 2012.
The Debtor estimated assets and debts of at least $10 million.
Judge Barbara J. Houser oversees the case. The Debtor tapped
Stephen M. Pezanosky, Esq., at Haynes and Boone, LLP, in Dallas,
as counsel.
The petition was signed by Lance Fair, authorized signatory, HW
Heartland GP, LLC, the sole general partner of the Debtor.
IAMGOLD CORP: Moody's Assigns 'Ba3' CFR/PDR; Outlook Stable
-----------------------------------------------------------
Moody's Investors Service assigned a Ba3 corporate family rating
and probability of default rating to IAMGOLD Corporation
(IAMGOLD). At the same time Moody's assigned a B1 rating to the
company's $500 million guaranteed senior subordinated notes due
2020 and an SGL-2 Speculative Grade Liquidity rating. The notes
are subordinated to "Designated Senior Debt" as defined in the
offering memorandum, which includes the company's $500 million
guaranteed revolving credit facility. The notes will be senior to
future subordinated indebtedness and rank at parity with future
senior indebtedness. The outlook is stable. This is the first time
Moody's has rated IAMGOLD.
Assignments:
Issuer: IAMGOLD Corp. (IAG)
Probability of Default Rating, Assigned Ba3
Speculative Grade Liquidity Rating, Assigned SGL-2
Corporate Family Rating, Assigned Ba3
Subordinate Regular Bond/Debenture, B1, LGD5, 74%
Subordinate Regular Bond/Debenture, B1, LGD5, 74%
Ratings Rationale
IAMGOLD's Ba3 Corporate Family and Probability of Default Ratings
incorporate the company's exposure to metal price volatility,
operating and development cost inflation and substantial
investment requirements to grow and diversify the company's
production profile. While Moody's recognizes the importance of
these investment requirements to IAMGOLD'S future operations,
Moody's anticipates that internal funding for expansionary capital
spending, together with gold price volatility, could pressure free
cash flow. However the ratings acknowledge the current strength in
gold prices (approximately $1,650/oz in the first half of 2012),
and Moody's anticipates that strong gold prices will continue
through the balance of 2012 and into 2013. Over this time frame,
the company is expected to continue to generate solid earnings and
operating cash flow. Over the medium term, Moody's expects gold
prices to moderate as a broad global economic recovery takes hold.
The company's acceptable liquidity position is also recognized in
the rating although the drawdown in cash balances to fund the
acquisition of Trelawney Mining and Exploration Inc. has reduced
the level of internal sources available to provide support to the
expansion programs.
However, the ratings consider the heightened political risks of
the countries in which IAMGOLD operates, particularly Burkina Faso
(unrated) and Mali (unrated), which operations accounted for
roughly 55% of 2011 gold production, its relatively high cost
structure, and its moderate size versus other companies in the
sector. As such, a materialization of any of these risks
including, but not limited to, threats to the physical security of
the company's mines, supply chain disruptions, and changes in
government-business agreements in the form of higher royalty or
tax payments could have a substantial impact on the company's
operations. While it is recognized that the company has in place a
rigorous policy for monitoring and managing operating risk in
these countries, Moody's believes these operations remain highly
exposed to event risk, not only from increasing nationalism
sentiment by countries with respect to their natural resources but
also from government political instability. In addition, a lack of
well-developed infrastructure in areas where key mining operations
are located has resulted in high cash costs relative to industry
peers. Cost creep is expected to continue although new production,
once on stream, should help mitigate the degree of upward movement
and improve the overall cost position. In addition, the company's
currently strong metrics reflect the benefit of high gold prices
over the last several years and the lack of debt in the capital
structure. Moody's expects metrics to deteriorate with the
addition of debt to the capital structure and as gold prices
moderate.
The ratings also consider the contribution from the Rosebel mine
(roughly 43% of 2011 gold production) in Suriname (Ba3 positive),
the advanced stage of the Westwood project in Canada, which
remains on schedule for start-up in early 2013 and will help
diversify geographic and geopolitical risk, and the relative
stability of the Canadian based niobium operations. The rating
reflects Moody's view that earnings and cash flow generating
capacity from these operations should provide sufficient support
despite the stated risks seen in the operations in Burkina Faso
and Mali. Moody's assumes that should political issues escalate,
the company would scale back capital expenditures in these
countries and minimize the degree of negative free cash flow over
the next several years.
The stable outlook reflects Moody's expectation for gold prices to
continue at strong levels over the next twelve to eighteen months,
which will enhance internal cash flow generation to support
capital investment requirements. The outlook also anticipates that
the Westwood mine will remain on schedule for start-up in early
2013 and as it ramps up will begin to contribute earnings to the
company. Captured in the outlook as well is Moody's view that the
company will continue to carefully monitor events within the
countries in which it operates, such as Mali, and slow capital
investment should this be necessary.
Upward movement in the rating is unlikely over the next twelve to
eighteen months given the need to bring Westwood on line reach
full production thereby improving the geopolitical risk profile of
the company.
Downward rating pressure could develop should Westwood be
significantly delayed or experience material cost overruns, or
operational issues develop at any of its producing mines that
would have medium term implications. In addition, downward
pressure would result should leverage, as measured by the
debt/EBITDA ratio exceed 3.5x on a sustainable basis, (operating
cash flow less dividends)/debt be less than 15%, or the company's
liquidity position materially contract.
IAMGOLD's SGL-2 speculative grade liquidity rating reflects the
good liquidity position the company exhibits. Moody's believes
that the company will generate good operating cash flows over the
next 12 to 18 months, which together with cash on hand
(approximately $615 million at June 3, 2012, including gold
bullion holdings at market value) and proceeds from the debt
issuance should fund the more aggressive capital expenditure plans
and working capital requirements although additional funding would
likely be necessary should gold prices move below roughly
$1,400/oz or there be negative developments with respect to
operations in Burkina Faso.
IAMGOLD's external liquidity sources consist of a $500 million
senior unsecured revolving credit facility and a $250 million
senior unsecured revolving credit facility at the company's Niobec
subsidiary both expiring in February 2016. Moody's believes that
the both revolvers will remain undrawn over the next four
quarters. The company is required to satisfy financial maintenance
covenants under the credit facility, including a maximum leverage
ratio of 3.5 times, and minimum tangible net worth of $2.25
billion plus 50% of net income. Given its low pro forma debt
levels and robust earnings supported by high gold prices, Moody's
expects that the company will comply with its covenants in the
next 12 to 18 months with ample cushion.
The B1 rating on the $500 million notes reflects their lower
position in the liability waterfall to the $500 million revolving
credit facility. The notes are explicitly subordinated to the
revolver and other designated indebtedness as define. However, the
notes will rank pari passu with any future senior unsecured
indebtedness and senior to any future subordinated indebtedness.
The principal methodology used in rating IAG was the Global Mining
Industry Methodology published in May 2009. Other methodologies
used include Loss Given Default for Speculative-Grade Non-
Financial Companies in the U.S., Canada and EMEA published in June
2009.
Headquartered in Toronto, Canada, IAMGOLD is primarily a gold
producer with operating mines in Suriname, Burkina Faso, Mali and
developing gold mines in Canada. The company also produces
niobium, which is used in steel production to provide greater
strength and lighter weight. Revenues for the twelve months
through June 30, 2012 were $1.7 billion.
IAMGOLD CORP: S&P Gives 'BB-' Corp. Credit Rating; Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating and stable outlook to Toronto-based gold
producer IAMGOLD Corp.
"At the same time, Standard & Poor's assigned its 'BB-' issue-
level rating and '4' recovery rating to IAMGOLD's proposed US$500
million senior unsecured notes. A '4' recovery rating indicates
our expectation of average (30%-50%) recovery in a default
scenario. We understand that proceeds from the proposed notes will
be used for general corporate purposes namely funding IAMGOLD's
growth-oriented capital spending plans in the next several years,"
S&P said.
"The ratings on IAMGOLD reflect what we view as the company's
exposure to volatile commodity prices, operating and political
risks from mining in higher risk countries, heavy reliance on
several key assets, and the project execution risks surrounding
its large capital spending plans," said Standard & Poor's credit
analyst Donald Marleau. "These weaknesses are somewhat offset,
in our view, by the company's low pro forma debt burden, strong
cash flow protection measures amid cyclically high metals prices,
and an expanding production base," Mr. Marleau added.
"IAMGOLD operates three gold mines in Burkina Faso (B/Stable/B),
Suriname (BB-/Stable/B), and Canada (AAA/Stable/A-1+), and holds
joint venture interests in two gold mines in Mali (not rated). The
company operates a niobium mine in the Province of Quebec
(A+/Stable/A-1+) and is developing gold projects in Ontario and
Quebec," S&P said.
"The stable outlook on IAMGOLD reflects our view that steady gold
production in the next year should support strong funds from
operations (FFO) and credit measure generation through 2013. We
estimate that, at an average gold price of US$1,400 per ounce (oz)
through next year, the company should generate an annual EBITDA of
more than US$700 million with a debt-to-EBITDA leverage ratio of
about 1x and an FFO-to-debt ratio of about 95%," S&P said.
"We could lower the ratings on IAMGOLD if mine-level or sovereign-
related operating disruptions or lower metals prices lead to a
severe and extended curtailment of cash flow generation. For
example, a gold price under US$1,200 per oz alongside a 25%
decline in gold production would increase its debt-to-EBITDA
leverage ratio above 2.5x and decrease its FFO-to-debt ratio to
below 60%," S&P said.
"An upward rating action is unlikely in the next 12 to 18 months
given the company's multi-year, growth-oriented capital spending
initiatives, continuing exposure to operating costs pressures, and
the concentration of its cash flow in high-risk jurisdictions,"
S&P said.
ICP ASSET: Founder Settles SEC Lawsuit Over CDO Fraud
-----------------------------------------------------
The Securities and Exchange Commission said Friday that New York-
based investment advisory firm ICP Asset Management and its
founder and president Thomas C. Priore have agreed to settle the
agency's charges that they defrauded several collateralized debt
obligations (CDOs) they managed.
ICP, Priore, and related entities have agreed to pay more than $23
million to settle the case the SEC filed against them in June 2010
in federal court in Manhattan. The SEC alleged they engaged in
fraudulent practices and misrepresentations that caused the CDOs
to overpay for securities and lose millions of dollars. Priore
and the ICP companies also improperly obtained fees and
undisclosed profits at the expense of the CDOs and their
investors.
"The settlement with Priore and ICP sends a clear message that
investment advisers must always act in the best interests of their
advisory clients, even if those clients are sophisticated
investors," said George S. Canellos, Deputy Director of the SEC's
Division of Enforcement. "When advisers put their own interests
ahead of their clients' interests, the SEC will seek to hold them
accountable."
The court approved the settlement terms on September 6. The final
judgment orders Priore to pay disgorgement of $797,337,
prejudgment interest of $215,045, and a penalty of $487,618. ICP
and its holding company Institutional Credit Partners LLC are
required, on a joint and several basis, to pay disgorgement of
$13,916,005 and prejudgment interest of $3,709,028. ICP also must
pay a penalty of $650,000. An affiliated broker-dealer ICP
Securities LLC is ordered to pay disgorgement of $1,637,581,
prejudgment interest of $301,893, and a penalty of $1,939,474.
Priore also agreed to settle an administrative proceeding against
him and be barred from association with any broker, dealer,
investment adviser, municipal securities dealer, or transfer
agent, and from participating in any offering of a penny stock.
He has a right to reapply for association or participation after a
period of five years.
Priore and the ICP companies also consented, without admitting or
denying the SEC's allegations, to permanent injunctions enjoining
them from future violations of the securities laws that they were
alleged to have violated, which include Section 17(a) of the
Securities Act of 1933, Sections 10(b) and 15(c)(1)(A) of the
Securities Exchange Act of 1934 and Rules 10b-3 and 10b-5, and
Sections 206(1), (2), (3), and (4) of the Investment Advisers Act
of 1940 and Rules 204-2, 206(4)-7 and 206(4)-8.
The SEC's investigation was conducted by Celeste A. Chase, Joseph
Boryshansky, Joshua Pater, Susannah Dunn, and Kenneth Gottlieb of
the New York Regional Office. Joseph Boryshansky led the
litigation with assistance from Jack Kaufman, Mark Germann, Joshua
Pater, and Susannah Dunn.
J & J DEVELOPMENTS: Taps Davis & Smith to Defend ONB Bank Suit
--------------------------------------------------------------
J & J Developments, Inc., sought and obtained permission from the
Bankruptcy Court to engage David W. Davis, P.C., and Bryan W.
Smith Attorney at Law, LLC, for legal services in connection with
a litigation pending before the U.S. District Court for the
Northern District of Oklahoma entitled ONB Bank and Trust v. J & J
Developments, Inc., et al., Case No.10-CV-823-GKF-TLW. Both law
firms represented the Debtor prior to the Petition Date.
Bryan Smith will be paid $235 per hour while David W. Davis will
be paid $195 per hour.
J & J Developments Inc. is a real estate holding company holding
title to real estate in more than 20 locations in Kansas. Many of
those locations contain convenience stores.
J & J Developments filed a Chapter 11 petition (Bankr. D.
Kan. Case No. 12-11881) in Wichita, Kansas, on July 12, 2012.
John E. Brown signed the petition as president and chief executive
officer. The Debtor is represented by Edward J. Nazar, Esq., at
REDMOND & NAZAR, LLP, in Wichita, Kansas. Judge Robert E. Nugent
presides over the case. According to the petition, the Debtor has
scheduled assets of $18.7 million and scheduled liabilities of
$34,933.
J & J DEVELOPMENTS: Gets Interim OK to Hire Redmond as Counsel
--------------------------------------------------------------
J & J Developments, Inc., obtained preliminary approval of its
application to employ Redmond & Nazar, LLP, as its counsel,
subject to notice and application for hearing to all creditors and
parties-in-interest.
"Whereupon the Court finds that pursuant to Local Rule notice must
be given to all creditors of the Debtor's Application for the
Engagement of Counsel," the order stated.
Only the Debtor's counsel appeared at the hearing.
J & J Developments Inc. is a real estate holding company holding
title to real estate in more than 20 locations in Kansas. Many of
those locations contain convenience stores.
J & J Developments filed a Chapter 11 petition (Bankr. D.
Kan. Case No. 12-11881) in Wichita, Kansas, on July 12, 2012.
John E. Brown signed the petition as president and chief executive
officer. The Debtor is represented by Edward J. Nazar, Esq., at
REDMOND & NAZAR, LLP, in Wichita, Kansas. Judge Robert E. Nugent
presides over the case. According to the petition, the Debtor has
scheduled assets of $18.7 million and scheduled liabilities of
$34,933.
JCC INTERNATIONAL: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: JCC International Enterprises, Inc.
P.O. Box 7188
Carolina, PR 00984-1788
Bankruptcy Case No.: 12-07045
Chapter 11 Petition Date: September 6, 2012
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Francisco R. Moya Huff, Esq.
LAW FIRM OF FRANCISCO R. MOYA HUFF
250 Ponce De Leon Avenue
City Towers 7th Floor
Hato Rey, PR 00918
Tel: (787) 723-0714; 724-2447
Fax: (787) 725-3685
E-mail: moyahuff55@prtc.net
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/prb12-07045.pdf
The petition was signed by Liza Vilanova, president.
JEFFERSON COUNTY: Residents Say Illegal Swaps Cost County $372MM
----------------------------------------------------------------
Brian Mahoney at Bankruptcy Law360 reports that a proposed class
of Jefferson County, Ala., ratepayers asked a bankruptcy judge
Thursday to reduce $3 billion in debt refinancing on county sewer
renovations, saying a slew of banks and a law firm are liable for
allegedly illegal interest rate swaps that cost the county $372
million.
In an adversary complaint, the ratepayers ? led by Birmingham City
Council President Roderick V. Royal ? accuse The Bank of New York
Mellon Corp. and JP Morgan Chase Bank NA of negotiating needless
interest rate swaps while restructuring, according to Bankruptcy
Law360.
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.
U.S. District Judge Thomas B. Bennett ruled in March 2012 that
Jefferson County is eligible under state law to pursue a debt
restructuring under Chapter 9. Holders of more than $3 billion in
defaulted sewer debt had challenged the county's right to be in
Chapter 9.
JOHN V. WARREN: Files for Chapter 7 Liquidation
-----------------------------------------------
Larry Rulison at The Times Union reports that John V. Warren Inc.,
a mechanical construction firm based in Green Island, New York,
filed for Chapter 7 bankruptcy liquidation on Aug. 30.
The Times Union relates that the company, which was founded in
1946 to do pipe construction at oil terminals at the ports of
Albany and Rensselaer, appears to have encountered financial
problems dating back to last year.
According to the report, bankruptcy records show that in March, an
auction was held for the company's equipment, supply stock and
even office furniture in connection with $2.5 million owed to TD
Bank.
Local unions have also claimed in civil lawsuits that the company
fell behind on union pension fund contributions, the report adds.
The 65-year-old business, which also had a Plattsburgh office,
reported assets of $65,000 and debt of $6.01 million, according to
The Business Review.
K-V PHARMACEUTICAL: D.C. Court Dismisses Lawsuit Against FDA
------------------------------------------------------------
District Judge Amy Berman Jackson dismissed the lawsuit, K-V
Pharmaceutical Company, et al., Plaintiffs, v. United States Food
and Drug Administration, et al., Defendants, Civil Action No.
12-1105 (D. D.C.), pursuant to a Sept. 6, 2012 Memorandum Opinion
available at http://is.gd/WELz8dfrom Leagle.com.
K-V Pharmaceutical and its wholly owned subsidiary, Ther-RX
Corporation, own and market a drug called Makena, which is a
hydroxyprogestoerone caproate injection. Makena was approved in
2011 for use by pregnant women with a history of preterm birth to
reduce the risk that they would experience another preterm birth.
Plaintiffs have sued the FDA, its Commissioner Margaret A.
Hamburg, the United States Department of Health & Human Services,
and HHS Secretary Kathleen Sebelius, alleging that the defendants
are violating the Administrative Procedure Act and several
provisions of the Food, Drug, and Cosmetic Act by failing to take
action against pharmacies that compound the drug and thereby
creating a cheaper alternative for doctors to prescribe. The
compounded form of the drug is referred to as "17P" in the
lawsuit.
The plaintiffs challenge a March 30, 2011 press release in which
FDA announced its intention not to take enforcement action against
the compounders except under certain circumstances. They also
challenge FDA's failure to block foreign shipments of the active
pharmaceutical ingredient used in 17P from entering the United
States. According to the plaintiffs, FDA's actions have given
rise to unlawful competition with Makena and caused them
irreparable economic harm.
The defendants moved to dismiss the action under Federal Rules of
Civil Procedure 12(b)(1) and 12(b)(6). They argue that the
plaintiffs lack standing, and that the actions they challenge are
the types of discretionary enforcement decisions that the Supreme
Court found to be unreviewable in Heckler v. Chaney, 470 U.S. 821
(1985). Alternatively, they argue that the complaint fails to
state a claim upon which relief can be granted.
Judge Jackson concludes that Counts I through III of the complaint
challenge FDA's discretionary enforcement activities and therefore
assert unreviewable claims, and that Count IV fails to state a
claim under Rule 12(b)(6).
About K-V Pharmaceutical
KV Pharmaceutical Company (NYSE: KVa/KVb) --
http://www.kvpharmaceutical.com/-- is a fully integrated
specialty pharmaceutical company that develops, manufactures,
markets, and acquires technology-distinguished branded and
generic/non-branded prescription pharmaceutical products. The
Company markets its technology distinguished products through
ETHEX Corporation, a subsidiary that competes with branded
products, and Ther-Rx Corporation, the company's branded drug
subsidiary.
K-V Pharmaceutical Company and certain domestic subsidiaries on
Aug. 4 filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Lead
Case No. 12-13346, under K-V Discovery Solutions Inc.) to
restructure their financial obligations.
K-V has retained the services of Willkie Farr & Gallagher LLP as
bankruptcy counsel, Williams & Connolly LLP as special litigation
counsel, and SNR Denton as special litigation counsel. In
addition, K-V has retained Jefferies & Co., Inc., as financial
advisor and investment banker. Epiq Bankruptcy Solutions LLC is
the claims and notice agent.
The U.S. Trustee appointed five persons to serve in the Official
Committee of Unsecured Creditors.
KYANITE MINING: Judge Enters Liquidation Order
----------------------------------------------
Bill McKelway at Richmond Times-Dispatch reports that one of
Virginia's most closely held mining companies, fiercely controlled
for more than a half century by a Buckingham County family, could
go into receivership and be dissolved in coming weeks under a
court decision that concludes the company oppressed minority
shareholders and misapplied millions of dollars in corporate
assets.
The report relates that in a stunning decision issued Aug. 30 that
followed years of intrafamily legal wrangling within the Dixon
family and its operation of the Kyanite Mining Corp., a Fairfax
County judge said in a 41-page ruling that she will appoint a
receiver "to wind up and liquidate the business and affairs of the
corporation."
According to the report, Circuit Judge Jane Marun Roush, named to
hear the case after local judges recused themselves and who heard
more than two weeks of testimony in the case earlier this summer,
called her decision a "drastic" yet appropriate remedy in light of
testimony that she said showed a long history of unfair stock
manipulation, exorbitant salaries for company officers, and a use
of assets that embellished the estates of company leaders and
allowed other assets to languish unproductively.
Alan D. Wingfield, lead attorney for Kyanite, which has been
represented by the Richmond-based Troutman Sanders law firm and is
now known as the Disthene Group Inc., said in an email August 30
that "Disthene is considering its next steps in this lengthy court
case."
The Dixon family mining operations and other holdings, including
the Cavalier Hotel in Virginia Beach and thousands of acres of
old-growth woodlands in central Virginia, have been controlled
since 1974 by Gene B. Dixon Jr., 69, who assumed that role upon
the death of his father in 1974.
The report notes that legal actions have been ongoing for several
years and generally have pitted Dixon Jr., his son and other
company officials against three minority shareholders: the
husband of Gene Dixon's deceased sister and her two children,
Curtis Dixon Colgate and Sharon M. Newcomb.
Kyanite Mining Corp. is one of rural Buckingham's largest
employers but is virtually unknown of outside its tight circle of
business interests, Richmond Times-Dispatch Richmond Times-
Dispatch discloses.
LA SHER OIL: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: La Sher Oil Company, Inc.
P.O. Box 17852
North Little Rock, AR 72117-7852
Bankruptcy Case No.: 12-15176
Chapter 11 Petition Date: September 5, 2012
Court: U.S. Bankruptcy Court
Eastern District of Arkansas (Little Rock)
Debtor's Counsel: Kevin P. Keech, Esq.
KEECH LAW FIRM, PA
4800 West Commercial Drive
N. Little Rock, AR 72116
Tel: (501)221-3200
Fax: (501)221-3201
E-mail: kkeech@keechlawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
A copy of the Company's list of its 20 largest unsecured creditors
filed with the petition is available for free at:
http://bankrupt.com/misc/areb12-15176.pdf
The petition was signed by Roger D. Mason, president.
LANDMARK FUND: Case Summary & 13 Unsecured Creditors
----------------------------------------------------
Debtor: LANDMARK FUND I, LLC
20021 Ventura Boulevard
Woodland Hills, CA 91364
Bankruptcy Case No.: 12-17971
Chapter 11 Petition Date: September 5, 2012
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Debtor's Counsel: Art Hoomiratana, Esq.
LAW OFFICE OF ART HOOMIRATANA
750 E. Green Street, Suite 333
Pasadena, CA 91101
Tel: (888) 688-4770
Fax: (888) 848-4570
E-mail: arthoomiratana@realestatelawcenter.org
Scheduled Assets: $1,412,400
Scheduled Liabilities: $9,574,835
A copy of the Company's list of its 13 largest unsecured creditors
filed with the petition is available for free at:
http://bankrupt.com/misc/cacb12-17971.pdf
The petition was signed by Faramarz Khodadad, managing member.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
M.S.C. Inc. 11-20072 08/23/11
LIGHTSQUARED INC: U.S. Trustee Joins Opposition to Bonuses
----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that LightSquared Inc. will face opposition from the U.S.
Trustee when the company appears at a Sept. 12 hearing for
approval of a program that could pay $6 million in bonuses to the
top four executives. Secured lenders already lodged their
objections.
According to the report, the U.S. Trustee says that the goals to
warrant paying bonuses are "not challenging" and thus demonstrate
that the program would bestow retention bonuses, which Congress
prohibits for senior executives of bankrupt companies. The
Justice Department's bankruptcy watchdog contends that the bonuses
would only reward executives for what they're paid to do in the
first place. In her objection, the U.S. Trustee criticizes the
program for paying a bonus equal to a year's salary for merely
meeting a budget. She also takes issue with another aspect of the
program that would pay additional bonuses even if a reorganization
plan or sale of the company isn't completed within two years.
About LightSquared Inc.
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, as the Company seeks to resolve regulatory issues
that have prevented it from building its coast-to-coast integrated
satellite 4G wireless network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties,
prompting the bankruptcy filing.
As of the Petition Date, the Debtors employed roughly 168 people
in the United States and Canada. As of Feb. 29, 2012, the Debtors
had $4.48 billion in assets (book value) and $2.29 billion in
liabilities.
LightSquared also sought ancillary relief in Canada on behalf of
all of the Debtors, pursuant to the Companies' Creditors
Arrangement Act (Canada) R.S.C. 1985, c. C-36 as amended, in the
Ontario Superior Court of Justice (Commercial List) in Toronto,
Ontario, Canada. The purpose of the ancillary proceedings is to
request the Canadian Court to recognize the Chapter 11 cases as a
"foreign main proceeding" under the applicable provisions of the
CCAA to, among other things, protect the Debtors' assets and
operations in Canada. The Debtors named affiliate LightSquared LP
to act as the "foreign representative" on behalf of the Debtors'
estates.
Judge Shelley C. Chapman presides over the Chapter 11 case.
Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to
the Debtors. Kurtzman Carson Consultants LLC serves as claims and
notice agent.
Counsel to UBS AG as agent under the October 2010 facility is
Melissa S. Alwang, Esq., at Latham & Watkins LLP.
The ad hoc secured group of lenders under the Debtors' October
2010 facility was formed in April 2012 to negotiate an out-of-
court restructuring. The members are Appaloosa Management L.P.;
Capital Research and Management Company; Fortress Investment
Group; Knighthead Capital Management LLC; and Redwood Capital
Management. Counsel to the ad hoc secured group is Thomas E.
Lauria, Esq., at White & Case LLP.
Philip Falcone's Harbinger Capital Partners indirectly owns 96% of
LightSquared's outstanding common stock. Harbinger and certain of
its managed and affiliated funds and wholly owned subsidiaries,
including HGW US Holding Company, L.P., Blue Line DZM Corp., and
Harbinger Capital Partners SP, Inc., are represented in the case
by Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP.
The Office of the U.S. Trustee has not appointed a statutory
committee of unsecured creditors.
LOCAL INSIGHT: Moody's Cuts Ratings on Two Note Classes to 'C'
--------------------------------------------------------------
Moody's Investors Service downgraded two classes of notes issued
in two series of the Local Insight Media (LIM) securitization
transaction. The transaction is a securitization of telephone
directory publishing businesses (primarily Yellow Pages) of CBD
Media LLC (CBD), a publisher of print and online directories in
the greater Cincinnati metropolitan area, ACS Media LLC (ACS), a
publisher of print and online directories in Alaska, and HYP Media
LLC (HYP), a publisher of print and online directories in Hawaii.
Essentially all assets of CBD, ACS and HYP were transferred to
securitization entities, which issued fixed rate notes supported
by the assets.
The complete rating actions are as follows:
Issuer: Local Insight Media Finance LLC, Series 2007-1
Cl. A-2, Downgraded to C (sf); previously on Apr 7, 2011
Downgraded to Caa3 (sf)
Issuer: Local Insight Media Finance LLC/ACS Media Finance LLC/CBD
Media Finance LLC and HYP Media Finance LLC - Series 2008-1
Cl. A-2, Downgraded to C (sf); previously on Mar 4, 2011
Downgraded to Caa3 (sf)
Ratings Rationale
The rating actions reflect continued declines in cash collections,
Net Securitizable Cash Flow (collections minus transaction
expenses) and Debt Service Coverage Ratio (DSCR). As a result of
the continued declines in collections, the leverage ratio (senior
notes divided by the last 12 months of Net Securitizable Cash
Flow) has increased to 16.5x, more than doubling from the 7.4x
leverage at closing. For the July 2012 quarterly payment date
DSCR, calculated as a ratio of Net Securitizable Cash Flow to the
interest payments on the notes, each summed up over the previous
twelve months, was 0.85, indicating that the transaction has not
generated sufficient amount of cash to make the required interest
payments on the securities. To compensate for the cash shortfalls
the transaction has been drawing on the interest reserve account.
Moody's expects that the reserve account will be depleted by the
end of 2012 or early 2013, leading to a default in the payment of
interest on the notes.
Moody's notes that LIM's business has come under increased
pressure in recent years due to competition from internet-based
search engines and recessionary conditions, which have
particularly effected the small and medium size businesses who are
the main users of print-based advertising.
Principal methodology used in these rating actions includes cash
flow simulation analysis and the assessment of the ability of the
net cash flows to make timely interest payments on the notes and
ultimate repayment of the principal by the legal maturity date.
Moody's identified key drivers of the cash flow and estimated
their expected values over the course of the transaction as well
as the probability distribution around these values based on the
analysis of the historical collateral performance trends. The
simulated revenues are then fed through the payment waterfall to
assess performance of the notes under different expected and
stressed scenarios. A resulting loss of yield to investors, if
any, was calculated.
Other methodologies and factors that may have been considered in
the process of rating this issuer can be found on Moody's website.
The main sources of uncertainty for this transaction include the
demand for advertising in Yellow Pages and the timing of economic
recovery, which can affect the demand for advertising by small and
medium-sized businesses.
The senior notes issued in this transaction are insured by Ambac
Assurance Corporation (Ambac). Moody's withdrew its ratings on
Ambac on 7 April 2011. Moody's press release issued on that date
states that ratings on structured finance securities guaranteed by
Ambac will be maintained at the underlying ratings, which reflect
the intrinsic credit quality of the securities. The principal
methodology used in determining the underlying rating is the same
as the methodology for rating securities that do not have a
financial guaranty and is described earlier.
MANAMO LLC: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Manamo, LLC
1432 S. Saltair Avenue, #202
Los Angeles, CA 90025
Bankruptcy Case No.: 12-40383
Chapter 11 Petition Date: September 5, 2012
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Sandra R. Klein
Debtor's Counsel: Glenn Ward Calsada, Esq.
LAW OFFICES OF GLENN W. CALSADA
9924 Reseda Blvd
Northridge, CA 91324
Tel: (818) 477-0314
Fax: (818) 473-4277
E-mail: glenn@calsadalaw.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 largest unsecured creditors filed with
the petition does not contain any entry.
The petition was signed by Khanbaba Malmed (aka Kanbaba K.
Malmed), managing member.
MEDICAL DEVELOPMENT: Wells Fargo Awarded $30-Mil. Judgment
----------------------------------------------------------
Phil Milford and Dawn McCarty at Bloomberg News report that
Wells Fargo & Co. won a $30 million judgment and the appointment
of a permanent receiver in its lawsuit against prison-service
provider Medical Development International Ltd. over the repayment
of loans.
Wells Fargo sued Ponte Vedra, Florida-based MDI in March in
Delaware Chancery Court, alleging it defaulted on loans used for
executive borrowing, a working farm, a biographical screenplay
about Chief Executive Officer Richard Willich and payments for a
Tesla Roadster, according to Bloomberg News.
Bloomberg News notes that the receiver, Ronald Winters of Alvarez
& Marsal Healthcare Industry Group LLC, is authorized "to do any
and all acts necessary for the proper and lawful conduct" of
company affairs, lawyers for both sides said in a stipulation
approved Sept. 7 by Judge Samuel Glasscock III.
MDI was in a deteriorated financial condition and wasn't being
operated in the best interests of stakeholders, the bank contended
in the complaint, Bloomberg News says.
Bloomberg News notes that MDI officials sued in state court in St.
Johns County, Florida, saying Wells Fargo "abandoned its
traditional role as lender and took up the role of corporate
raider" to divert company assets.
Bloomberg News relates that the parties agreed to pay Willich
about $33,000 as a September salary, and $15,000 a month through
Dec. 31, as a temporary consultant, court papers show.
Mr. Winters will also have the right to make any decisions for the
company, including "the authority to file for bankruptcy,"
according to court papers, Bloomberg News notes.
The Delaware case is Wells Fargo Bank v. Medical Development
International Ltd., CA7352, Delaware Chancery Court (Wilmington).
The Florida case is MDI v. Wells Fargo Bank, CA12- 0570, Florida
Circuit Court, Seventh Judicial Circuit (St. Johns County).
MF GLOBAL: Holding Company Has Cash Use Through March
-----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the trustee for broker MF Global Inc. agreed with
secured lender JPMorgan Chase & Co. on the continuing use of the
banks' cash collateral until the end of March. Trustee Louis
Freeh is using what was originally $25.3 million to pay costs of
the Chapter 11 bankruptcy other than professional expenses. The
agreement gives the bank an increase from $500,000 to $750,000 in
reimbursement of expenses.
About MF Global
New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/
-- was one of the world's leading brokers of commodities and
listed derivatives. MF Global provided access to more than
70 exchanges around the world. The firm was 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.
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.
Louis J. Freeh was named the Chapter 11 Trustee for the bankruptcy
cases of MF Global Holdings Ltd. and its affiliates. The Chapter
11 Trustee tapped (i) Freeh Sporkin & Sullivan LLP, as
investigative counsel; (ii) FTI Consulting Inc., as restructuring
advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel;
and (iv) Pepper Hamilton as special counsel.
An Official Committee of Unsecured Creditors has been appointed
in the case. The Committee has retained Capstone Advisory Group
LLC as financial advisor.
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.
MONEY TREE: Trustee Selling 46 Branches to Rival for $4.4MM
-----------------------------------------------------------
S. Gregory Hays, the chapter 11 trustee appointed in the Chapter
11 cases of Small Loans, Inc., The Money Tree, Inc., and their
debtor-affiliates, filed an 89-page document seeking Bankruptcy
Court permission to sell certain consumer credit accounts, notes,
receivables, security instruments, insurance policies and other
ancillary products, along with certain furniture, fixtures, and
equipment, and other incidental assets collectively comprising the
individual branch offices owned and operated by the Debtors to
competitor Western Shamrock Corporation, subject to higher and
better offers, free and clear of liens, claims and encumbrances.
The Chapter 11 Trustee also seeks approving of terms for the
submission of competing offers and auction procedures.
Western Shamrock proposes to purchase all of the Branches owned
and operated by the Debtors, including:
* 9 Branches in Alabama,
* 1 Branch in Florida,
* 29 Branches in Georgia, and
* 7 Branches in Louisiana.
Western Shamrock has offered $4,375,000 for the assets. Western
Shamrock has agreed to pay a deposit equal to 5% of the Purchase
Price ($218,750) to the Chapter 11 Trustee. The Purchase Price is
to be paid to the Trustee by wire transfer at closing, less the
deposit paid by Western Shamrock.
The Chapter 11 Trustee has marketed and advertised the Debtors'
businesses and assets, including the Branches, for potential sale
and has used the services of Renova Partners, LLC, as the
Trustee's broker. The Trustee has determined that selling the
Branches is in the best interest of the Debtors' estates and their
creditors.
Western Shamrock will deposit 1% of the Purchase Price with an
escrow agent and the funds will be placed in an interest bearing
account at the time of closing and used to compensate Western
Shamrock with respect to any invalid loans.
Western Shamrock has agreed to adopt the privacy policy that the
Debtors had in place as of the Petition Date regarding the
consumer credit accounts, notes, receivables, security
instruments, insurance policies and other ancillary products that
are being purchased.
To maximize the value received for the Branches, the Chapter 11
Trustee proposes that other parties be permitted to make competing
offers for the Branches at an auction. The Trustee proposes that
the Branches be offered at an auction, and that competing bids be
submitted by others for all of the Branches as a single "lot," or
separately with the goal of bringing the highest aggregate bid
price. The Trustee will conduct an auction if competing bids are
received. Rival offers must be sent to John D. Elrod --
elrodj@gtlaw.com -- as counsel for the Creditors' Committee.
The Chapter 11 Trustee also seeks Court approval to offer for sale
at the Auction any and all remaining tangible assets owned by the
Debtors -- excluding causes of action -- that are not included in
the Branches to be sold to Western Shamrock. The aggregate value
of the Remaining Assets is less than $250,000.
About Money Tree
Bainbridge, Georgia-based The Money Tree Inc. --
http://www.moneytreeinc.com/-- operates a network of lending
branches across the Southeast, concentrated in Georgia, Florida
and Alabama. The Company and four affiliates filed for Chapter 11
bankruptcy (Bankr. M.D. Ala. Case Nos. 11-12254 thru 11-12258) on
Dec. 16, 2011. The other debtor-affiliates are Small Loans, Inc.,
The Money Tree of Louisiana, Inc., The Money Tree of Florida Inc.,
and The Money Tree of Georgia Inc.
Judge William R. Sawyer oversees the case, replacing Judge Dwight
H. Williams, Jr. Max A. Moseley, Esq., at Baker Donelson Bearman
Caldwell & Berkow, P.C., serves as the Debtors' counsel. The
Debtors hired Warren, Averett, Kimbrough & Marino, LLC, as
restructuring advisors.
The Money Tree Inc. disclosed $73,413,612 in assets and
$73,050,785 in liabilities as of the Chapter 11 filing. The
petitions were signed by Biladley D. Bellville, president.
The Company's subsidiary, Best Buy Autos of Bainbridge Inc., is
not a party to the bankruptcy filing and intends to operate its
business in the ordinary course.
On Jan. 10, 2012, the Court appointed two separate Official
Unsecured Creditors' Committees in The Money Tree Inc. case and
The Money Tree of Georgia Inc. case. On Jan. 13, 2012, the
Committees moved the Court to consolidate the two into one Omnibus
Official Committee of Unsecured Creditors in the Chapter 11 cases,
which motion was granted on Feb. 28, 2012. Greenberg Traurig LLP
represents the Committee. The Committee tapped HGH Associates LLC
as its accountants and financial advisors.
On April 16, 2012, the Debtors filed a Plan of Reorganization and
Disclosure Statement. Holders of General Unsecured Claims of The
Money Tree (TMT) (estimated total: $586,676) were to receive 95%
of their Allowed Claim. Meanwhile, Holders of General Unsecured
Claims of The Money Tree of Georgia (TMG) (estimated total:
$680,000); General Unsecured Claims of The Money Tree of Louisiana
(TML) (estimated total: $358,000); General Unsecured Claims of The
Money Tree of Florida (TMF) (estimated total: $73,000); and
General Unsecured Claims of Small Loans (estimated total:
$229,000) will each receive 25% of their Allowed Claim.
The Plan proposes to create a Liquidating Trust, of which
$15,200,000 will be for the benefit of Holders of TMT Subordinated
Debt (estimated total: $71,331,673) and TMG Subordinated Debt
(estimated total: $22,398,010). About 90% of the funds will flow
to Holders of TMT Subordinated Debt and the Debtors estimate the
total payment over 10 years will equal roughly 19% recovery for
this class. The remaining 10% will flow to Holders of TMG
Subordinated Debt. The Debtors estimate the total payment over 10
years will equal 6.8% recovery for this class.
The Equity Interests in the Debtors will be cancelled.
The Plan does not affect, and will not result in the consolidation
and liquidation of, entities wholly owned by the Debtors,
including, without limitation, Best Buy Autos of Bainbridge Inc.,
The Money Tree/Vanmart, Inc., Buyer's Choice Motor Company,
Buyer's Choice Finance Company, and Money to Lend, Inc.
The Debtors, however, failed to move forward with their Plan as
the Court stripped the Company's management of control and
appointed S. Gregory Hays as Chapter 11 Trustee. Daniel D.
Sparks, Esq., Eric J. Breithaupt, Esq., and Bradley R. Hightower,
Esq., at Christian & Small LLP, represent the Trustee.
MOSDOS CHOFETZ: Case Summary & 17 Unsecured Creditors
-----------------------------------------------------
Debtor: Mosdos Chofetz Chaim, Inc.
50 Kiryas Radin Drive
Spring Valley, NY 10977
Bankruptcy Case No.: 12-23616
Chapter 11 Petition Date: September 6, 2012
Court: U.S. Bankruptcy Court
Southern District of New York (White Plains)
Judge: Robert D. Drain
About the Debtor: In the schedules, the Debtor disclosed it owns
a yeshiva religious school campus on five acres
of land in Spring Valley, New York. The value
of the property is unknown. The property
secures a $13 million debt to RBS Citizens
Financial Group. The property is site to a 12-
building development and 60-apartment religious
facility run by Rabbi Israel Mayer Kagan, also
known as Mosdos Chofetz Chaim, Kagan. Housing
is for scholars and students who follow the
teachings and philosophies of the Torah and
Talmud.
Debtor's Counsel: Arnold Mitchell Greene, Esq.
ROBINSON BROG LEINWAND GREENE GENOVESE & GLUCK,
P.C.
875 Third Avenue, 9th Floor
New York, NY 10022
Tel: (212) 603-6300
Fax: (212) 956-2164
E-mail: amg@robinsonbrog.com
Scheduled Assets: $82,000
Scheduled Liabilities: $19,898,469
The petition was signed by Rabbi Ayreh Zaks, secretary.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Yeshiva Chofetz Chaim, Inc. 11-23864 09/22/11
Debtor's List of Its 17 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Yeshiva Chofetz Chaim -- $4,000,000
82 Highview Road
Suffern, NY 10901
Silverman Foundation -- $900,000
520 Eighth Avenue, 20th Floor
New York, NY 10994
Gershon Alexander -- $635,810
23 Pleasant Ridge Road
Spring Valley, NY 10977
Mark Blisko -- $435,000
311 Meacham Avenue
Elmont, NY 11003
Ezra Beyman -- $250,000
18 Sylvan Road
Monsey, NY 10952
Munish Wientraub -- $150,000
Michael Leibov -- $100,000
Moti Electric, Inc. -- $100,000
Danial Rosenblum -- $62,000
Y and Y Kitchens -- $60,000
Cold Spring Granite -- $60,000
Orange and Rockland Utilities, Inc.-- $46,659
New York, Professional Dry Wall -- $45,000
Certified Lumber Corp. -- $14,000
Royal Stucco -- $13,000
Welldone Insulation -- $12,000
United Water -- $12,000
NATIVE WHOLESALE: Court OKs Posting of Add'l $2MM Cash Collateral
-----------------------------------------------------------------
Native Wholesale Supply Company was authorized by the Bankruptcy
Court to post an additional $2 million in collateral in the form
of the Letter of Credit to secure its indemnity obligations to
Capitol Indemnity Corporation under the Customs Bonds. The Letter
of Credit was issued by M&T Bank and secured by the Debtor's
funds.
The Court also allowed the Debtor to increase the amount of the
Letter of Credit by a separate application, on seven days notice
to Capitol, Grand River, the United States, National Association
of Attorneys General and the United States Trustee.
Capitol is a surety which agreed to provide Customs Bonds on
behalf of the Debtor which created an obligation on the part of
Capitol to pay indebtedness incurred by the Debtor to U.S. Customs
and Border Protection in the event the Debtor failed to pay the
customs duties and excise taxes incurred in connection with the
Debtor's importation of cigarettes and other tobacco products.
The Debtor is obligated to indemnify and reimburse Capitol for all
payments made under the Customs Bonds issued by Capitol at the
request of the Debtor pursuant to the General Indemnity Agreement.
Capitol currently holds $9.3 million of collateral to secure the
Debtor' indemnity obligations.
About Native Wholesale
Native Wholesale Supply Company is engaged in the business of
importing cigarettes and other tobacco products from Canada and
selling them within the United States. It purchases the products
from Grand River Enterprises Six Nations, Ltd., a Canadian
corporation and the Debtor's only secured creditor. Native is an
entity organized under the Sac and Fox Nation and has its
principal place of business at 10955 Logan Road in Perrysburg, New
York.
Native filed for Chapter 11 bankruptcy (Bankr. W.D.N.Y. Case No.
11-14009) on Nov. 21, 2011. The Chapter 11 filing was triggered
to resolve an ongoing dispute with the United States government
regarding up to $43 million in assessments made by the government
against the Debtor pursuant to the Fair and Equitable Tobacco
Reform Act of 2004 and the Tobacco Transition Payment Program and
to restructure the terms of payment of any obligation determined
to be owing by the Debtor to the U.S. under the Disputed
Assessment. The issues pertaining to the Disputed Assessment
resulted in two lawsuits, subsequently consolidated, now pending
in the Federal District Court.
Robert J. Feldman, Esq., and Janet G. Burhyte, Esq., at Gross,
Shuman, Brizdle & Gilfillan, P.C., in Buffalo, N.Y., represent the
Debtor as counsel.
The Company disclosed $30,022,315 in assets and $70,590,564 in
liabilities as of the Chapter 11 filing.
The States of California, New Mexico, Oklahoma and Idaho have
appeared in the case and are represented by Garry M. Graber, Esq.,
at Hodgson Russ LLP.
No trustee, examiner or creditors' committee has been appointed in
the case.
NATIVE WHOLESALE: Taps Cuddy & McCarthy to Assist in NM Action
--------------------------------------------------------------
Native Wholesale Supply Company seeks permission from the
Bankruptcy Court to employ Cuddy & McCarthy, LLP, as its special
counsel, under a general retainer, in connection with the New
Mexico Action to perform the legal services that have been
rendered and that will be necessary during its Chapter 11 case.
The Debtor was a defendant in an action in the First Judicial
District of Santa Fe County, New Mexico, Case No. D-0101-CV-2008-
02236 which was stayed and then administratively closed by the
court for failure to prosecute. The Debtor's lead counsel in the
New Mexico Action is Cuddy & McCarthy. A recent effort to
resurrect the New Mexico Action was initiated by the New Mexico
Attorney General's Office by filing a motion to reopen the New
Mexico Action; that motion was denied. An appeal or the
commencement of a new action is likely, however, and the Debtor
will require the continued assistance of Cuddy & McCarthy.
Cuddy & McCarthy is and has been counsel to the Debtor on all
matters involving the New Mexico Action since its initiation in
2008.
To the best of the Debtor's knowledge, the partners and associates
of Cuddy & McCarthy do not have any connection with the Debtor,
its creditors, or any other party-in-interest, or its respective
attorneys.
About Native Wholesale
Native Wholesale Supply Company is engaged in the business of
importing cigarettes and other tobacco products from Canada and
selling them within the United States. It purchases the products
from Grand River Enterprises Six Nations, Ltd., a Canadian
corporation and the Debtor's only secured creditor. Native is an
entity organized under the Sac and Fox Nation and has its
principal place of business at 10955 Logan Road in Perrysburg, New
York.
Native filed for Chapter 11 bankruptcy (Bankr. W.D.N.Y. Case No.
11-14009) on Nov. 21, 2011. The Chapter 11 filing was triggered
to resolve an ongoing dispute with the United States government
regarding up to $43 million in assessments made by the government
against the Debtor pursuant to the Fair and Equitable Tobacco
Reform Act of 2004 and the Tobacco Transition Payment Program and
to restructure the terms of payment of any obligation determined
to be owing by the Debtor to the U.S. under the Disputed
Assessment. The issues pertaining to the Disputed Assessment
resulted in two lawsuits, subsequently consolidated, now pending
in the Federal District Court.
Robert J. Feldman, Esq., and Janet G. Burhyte, Esq., at Gross,
Shuman, Brizdle & Gilfillan, P.C., in Buffalo, N.Y., represent the
Debtor as counsel.
The Company disclosed $30,022,315 in assets and $70,590,564 in
liabilities as of the Chapter 11 filing.
The States of California, New Mexico, Oklahoma and Idaho have
appeared in the case and are represented by Garry M. Graber, Esq.,
at Hodgson Russ LLP.
No trustee, examiner or creditors' committee has been appointed in
the case.
NCR CORP: Moody's Assigns 'Ba1' CFR/PDR; Outlook Stable
-------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to NCR
Corporation's new $500 million senior unsecured debt issuance, Ba1
corporate family and probability of default ratings and a SGL-2
Speculative Grade Liquidity Rating. The new notes will be used as
part of the company's strategy to reduce up to $800 million of its
underfunded domestic pension obligations by funding the plan and
offering a lump-sum buyout to eligible employees. The rating
outlook is stable.
Moody's Senior Vice President, Gerald Granovsky said, "Despite the
increase in funded debt, if the buy-out of pension obligation
offered to eligible employees is successful, NCR will eliminate a
significant part of its domestic pension obligation, will remove
future volatility in its earnings and adjusted leverage." From
Moody's credit metrics standpoint, NCR's adjusted Debt/EBITDA
leverage would not materially change after completion of this
plan, as the pension underfundings are included in senior debt as
per Moody's standard adjustments. NCR's move will also enable the
company to focus on its core business without the distraction of
the pension plan volatility.
Assignments:
Senior unsecured debt Ba2, (LGD-4, 65%)
Corporate Family Rating at Ba1
Probability of Default Rating at Ba1
Speculative Grade Liquidity SGL-2
Outlook: Stable
Ratings Rationale
NCR's Ba1 CFR recognizes stable recurring revenue stream from
long-term maintenance contracts that result from the strong global
market position across its core financial self-service and retail
store point of sale businesses, and good geographic and customer
diversification, Management has track record of maintaining a
conservative financial policy. Additionally, the rating is
supported by the company's expansion into higher growth, higher
margin hospitality product lines and its exit from the
underperforming entertainment business, which was consuming cash.
The rating is somewhat prospective in nature, as it incorporates
Moody's expectation for improving operating performance and margin
expansion from NCR's core businesses and the elimination of
pension underfunding risks. Finally, the rating takes into account
NCR's stable free cash flow generation, solid debt protection
measures and a good liquidity profile. The rating is tempered by
the company's high debt balances relative to its historic levels,
resulting from the closing of the Radiant acquisition in 2011 and
the debt taken on to reduce its domestic pension liability. In
addition, competitor innovation, challenging macroeconomic forces
and technology changes may impact the sales of the company's
products in the future.
NCR's SGL-2 liquidity rating reflects the company's good
liquidity, driven by expectation of modest free cash flow but
solid cash balance and a sizeable revolving credit. Moody's
expects NCR to generate positive free cash flow in the $50 million
to $70 million range over the next 12 months down from $192
million in free cash flow over the last twelve months. The lower
projected free cash flow generation is driven by Moody's
expectations of increased interest expense, ongoing international
pension contributions and rising capital expenditures. Still,
Moody's expects the company to operate with cash balances in the
$300 million to $400 million range. The company maintains an $850
million revolving credit facility as a source for external
liquidity, which Moody's expects to be undrawn over the next 12
months. The facility requires the maintenance of financial ratios
(including financial leverage equal to or less than 3.5x debt to
EBITDA (although per a recent amendment to the facility, the
leverage ratio can be increased to no more than 4.5x if the
company uses debt proceeds to fund its pension plans). Moody's
expects NCR to remain complaint with its financial covenants over
the next 12 months. Moody's notes that having good liquidity is
important, since NCR free cash flow can be volatile during periods
of large required capital expenditures to support its product
deployments.
The ratings for NCR's debt instruments comprise both the overall
probability of default to which Moody's assigned a PDR of Ba1 and
an average family loss given default assessment. The unrated
senior secured bank credit facility (consisting of an $850 million
revolver and $850 million in term loans) benefits from a
collateral package that includes upstream guarantees of domestic
subsidiaries, and a pledge of stock of domestic subsidiaries and
2/3 of certain international subsidiaries. As a result, NCR's new
senior unsecured notes are rated at Ba2, LGD4 65% reflecting their
junior position in the capital structure as the notes do not share
in the full collateral package with the senior secured debt
holders.
The stable outlook incorporates Moody's expectation of steady
EBITDA margin improvement and mid single digit top line growth,
with adjusted debt to EBITDA to approach 3.5 times by the end of
2013.
What Could Change the Rating - UP
As NCR's rating is prospective for expected operating improvements
and ongoing deleveraging, an upgrade is unlikely in the near term.
However, NCR's rating could face upward pressure if the company
continues to execute effectively on new product and technology
introductions as measured by market share gains in financial,
retail and hospitality business segments across business cycles.
Specifically, NCR's would need to demonstrate sustained adjusted
operating margin improvements in excess of 13% and consistently
higher levels of free cash flow with lower volatility. The rating
could also be considered for an upgrade if the company maintains
adjusted leverage below 2.5 times.
What Could Change the Rating - DOWN
As the Ba1 CFR is predicated on expected operating improvements
and deleveraging, ratings could be downgraded if NCR's operating
performance does not improve as anticipated, due to increased
business risk, loss of market share in key business segments, or a
change in NCR's competitive position as evidenced by adjusted
operating margins staying below 6% or persistent periods of
negative free cash flow erode liquidity. In addition, the rating
may be downgraded if NCR's adjusted leverage remains above 3.75
times through 2014.
The principal methodology used in rating NCR Corp was the Global
Technology Hardware Industry Methodology published in September
2010. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.
Headquartered in Duluth, GA, NCR Corporation, with roughly $5.8
billion in revenues for the twelve months ended June 30, 2012, has
leading market positions in automatic teller machine (ATM),
electronic cash register, hospitality and related supplies and
services.
NRG ENERGY: Moody's Assigns 'B1' Rating to New Sr. Unsec. Notes
---------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to NRG Energy, Inc.
planned issuance of new senior unsecured notes due 2023.
Concurrent with the rating assignment, Moody's has affirmed NRG's
Corporate Family Rating and Probability of Default Rating at Ba3;
its senior secured rating at Baa3; its senior unsecured rating at
B1, and its Speculative Grade Liquidity Rating at SGL-2. The
rating outlook for NRG continues to be negative.
Ratings Rationale
The rating assignment and rating affirmations primarily reflects
NRG's diversified fleet of wholesale power generation assets and
the relatively strong historical credit metrics based upon margins
underpinned by hedges, contracts, and sales from its retail
business. Recent operating results have however been negatively
impacted by weak power prices, reduced volumes and the continued
decline in the price of natural gas. For example, Moody's
calculates that cash flow (CFO pre-WC) to debt declined to 10.4%
for the twelve months ending 06/30/2012 as compared to the 2009-
2011 three year average of 16.4%. Cash flow coverage of interest
was 2.5x for LTM 06/30/2012, substantially lower than the three
year average of 3.3x. Moody's recognizes that some of the
deterioration in financial performance can be attributed to the
incurrence of approximately $2.7 billion of debt to finance the
construction of solar generation plants and a natural gas fired
plant being built in the Western US. Moody's further acknowledges
that all of these projects have long-term power purchase
agreements in place with investment grade counterparties which
Moody's views favorably from a credit perspective since they will
provide a high degree of cash flow certainty over the next several
years. Moody's consolidates all debt obligations when calculating
NRG's credit metrics. Importantly, Moody's calculates that these
key credit metrics show deterioration to levels consistent with a
weak "Ba" unregulated power company even if one excludes the $2.7
billion of project level debt, as cash flow to debt approximates
13% for both 2011 and the 12 months ending 06/30/2012.
The rating affirmation further considers the company's plans to
merge with financially weaker GenOn Energy, Inc (GEN: B2 Corporate
Family Rating; positive outlook) in a stock for stock transaction.
The rating affirmation acknowledges that the merger plan includes
at least $1 billion of debt reduction from the combined balance
sheet efficiencies and approximately $300 million per annum in
cost savings, including $100 million reduction in interest cost,
$175 million in corporate expense savings and $25 million in
operational synergies. If accomplished, these savings will improve
consolidated earnings and cash flow. The rating affirmation also
considers the benefits of increased size and diversification along
with the company's ability to grow its retail business in a lower
risk fashion given the generating assets that NRG will acquire in
key target markets, including the mid-Atlantic region.
NRG's speculative grade liquidity rating of SGL-2 reflects Moody's
expectation that the company will maintain a good liquidity
profile over the next 4-quarter period as a result of internal
cash flow generation combined with continued access to credit
availability, sufficient headroom under the company's covenants
and the ability to raise cash from asset sales, if necessary.
Total liquidity at 6/30/2012, was approximately $2.4 billion,
including credit facility availability of approximately $1.049
billion and unrestricted cash on hand of around $1.149 billion.
NRG's liquidity is aided by the existence of standalone financing
arrangements to fund the capital investments for the construction
of solar generation power plants and the retrofitting of some
natural gas-fired plants. Moody's anticipates that the decline in
energy margins will reduce the headroom under the company's
financial covenants but Moody's anticipates the company will
remain in compliance on a ongoing basis. Moody's also believes
that NRG owns assets that could be monetized for additional
liquidity. For example, NRG recently completed the sale of its 41%
interest in Schkopau for approximately $174 million.
Proceeds from this financing along with cash are expected to
refinance the company's $1.09 billion 7.375% senior notes due
2017. With the completion of the financing, the indenture
governing the 2017 senior notes, which had the most restrictive
language concerning a restricted payments test, will be
eliminated.
NRG's negative rating outlook reflects the margin erosion that is
occurring in both NRG's wholesale and retail operations, which is
contributing to financial performance more in line with a strong
"B" rated unregulated power issuer when considering all recourse
and non-recourse debt. The negative rating outlook further
considers the company's very large capital spending program
anticipated over the next few years, particularly when compared to
NRG's current market capitalization. While the GEN merger enables
NRG to acquire substantial generating capacity in an important
platform in PJM at an attractive price, the negative outlook
recognizes the weaker condition of its merger partner that
includes the addition of $5 billion of incremental debt (assuming
that $1 billion of debt is prepaid). Since many of the merger
details will take some time to finalize, Moody's is maintaining
its negative outlook on NRG until more definitive information is
available, which Moody's expects to occur at or around the time
that a shareholder vote is solicited. At that time, Moody's will
decide whether further negative rating action, which could include
a review for possible downgrade or a ratings downgrade of some or
all of NRG's rated debt, is warranted.
In light of NRG's negative rating outlook, the substantial capital
investment program, the continued weak market for unregulated
power in most regions, and a pending merger with financially
weaker GEN, limited prospects exist for NRG's ratings to be
upgraded in the near-term. However, to the extent that management
is able to complete the construction of its numerous projects on a
timely basis, to demonstrate the ability to integrate GEN while
achieving the projected cost savings, to stabilize or modestly
improve unregulated power margins, to reduce future capital
spending to a more manageable level, and to incrementally retire
debt, the rating outlook could stabilize.
NRG's ratings could be downgraded should material problems surface
with the company's growth strategies, if weaker than expected
market conditions persist across NRG's generation fleet, if the
cost savings and synergies of the proposed merger and margin
enhancement are not expected to be realized or are expected fall
short of credit metrics consistent with a low "Ba" CFR or if the
company materially alters its capital allocation program in a way
detrimental to creditors.
Issuer: NRG Energy, Inc
Ratings Affirmed
Corporate Family Rating & Probability of Default Rating: Ba3
Senior Unsecured: B1, LGD4 - 67%
Speculative-Grade Liquidity Rating: SGL-2
Outlook: Negative
Ratings Affirmed, LGD Estimates Revised:
Senior Secured RC and TL to Baa3, LGD2 - 16% from Baa3, LGD2 -
11%
Sussex County, Delaware Recovery Zone Facility Bonds Sr Secured
Bonds to Baa3, LGD2 - 16% from Baa3, LGD2 - 11%
Chautauqua (Cnty of) NY, Ind. Dev. Agency; Sr Sec Revenue Bonds
due 2042 to Baa3, LGD2 - 16% from Baa3, LGD2 - 11%
The Delaware Economic Dev. Auth: Sr Sec Revenue Bonds due 2045
to Baa3,LGD2 - 16% from Baa3, LGD2-11%
Rating Assigned:
Senior Unsecured: B1, LGD4 -- 67%
Headquartered in Princeton, New Jersey, NRG Energy, Inc. owns and
operates a portfolio of power-generating facilities, primarily in
Texas and the Northeast, South Central and Western regions of the
US. NRG also has ownership interests in generating facilities in
Australia. In total, as of December 31, 2011, NRG owns
approximately 25,135 megawatts (MW) of electric generation, and
has 1,410 MW under construction. NRG's retail businesses, Reliant
Energy, Green Mountain Energy, and Energy Plus Holdings combined
serve more than 2 million residential, business, commercial and
industrial customers in Texas and, increasingly in select markets
in the northeast US.
The principal methodology used in this rating was Unregulated
Utilities and Power Companies published in August 2009.
NOBLE IRON: $219,000 Default Judgment on Unit Expired
-----------------------------------------------------
Noble Iron Inc. disclosed that it has been advised that the
execution and appeal periods for a default judgment in the
original amount of $219,259 rendered against a wholly owned U.S.
subsidiary in September 2002 have expired.
The original default judgment amount was accrued by the Company in
2002 and interest on the judgment has been recorded in the
Company's financial statements in each subsequent quarter up to
and including June 30, 2012.
Accordingly, the Company will record a one-time, non-cash income
inclusion of approximately $693,000 to reverse the accrued
liability relating to the default judgment in the quarter ended
Sept. 30, 2012. The amount of the reversal is approximately $0.05
per basic common share and $0.04 per common share on a fully
diluted basis.
About Noble Iron Inc.
Noble Iron Inc. operates in three complementary sectors: equipment
rental, equipment dealership and enterprise software for the
construction and industrial equipment industry.
The Company operates its equipment rental business and dealership
under the name "Noble Iron." Noble Iron rental depots currently
serve customers in California and Texas. Noble Iron's dealership
offers select manufacturers' equipment and accessories for sale,
and is the exclusive distributor of LiuGong Construction Machinery
equipment in Southeast Texas.
The Company's software division, Texada Software, provides
software applications to manage the complete equipment ownership
lifecycle, from acquisition, rental, sales and other activities,
through to disposal. Texada offers in-the-cloud or client-based
software, and is scalable to meet the needs of any customer.
NORTH BY NORTHWEST: Hiring Thomas Tierney as Bankruptcy Counsel
---------------------------------------------------------------
North by Northwest LLC filed papers in Court to employ Thomas F.
Tierney, Esq., in Peachtree City, Georgia, to represent it in
carrying out its duties under the Bankruptcy Code.
Mr. Tierney will be paid at $300 per hour. The Debtor has
provided the firm $10,000 as initial retainer.
Mr. Tierney attests it has no connection with the Debtor, its
creditors, or any other party-in-interest, or their attorneys and
accountants; and does not hold or represent any interest adverse
to the Debtor or its estate.
A hearing on the application was set for Aug. 22. That day, Mr.
Tierney filed in court a notice of conflict letter. To date, the
Court has not ruled on the application.
Meanwhile, a meeting of the Debtor's creditors pursuant to
11 U.S.C. Sec. 341 was rescheduled to Aug. 22. The meeting was
originally set for Aug. 8.
North By Northwest LLC filed a bare-bones Chapter 11 petition
(Bankr. N.D. Ga. Case No. 12-42087) in Rome, Georgia, on July 12,
2012. North By Northwest scheduled $14,667,210 in assets and
$4,202,709 in liabilities. The Debtor holds surface and mineral
interests in the real property in Valley District, Fayette County,
West Virginia, worth $12.5 million, and which secures a $3.05
million debt to Macon Bank. Bankruptcy Judge Paul W. Bonapfel
presides over the case. Jim Knight, Esq., at Thomas F. Tierney,
P.C., in Peachtree City, Georgia, serves as counsel.
OAKDALE PUBLIC: Moody's Cuts Rating on 2002 Revenue Bonds to 'B1'
-----------------------------------------------------------------
Moody's Investors Service has downgraded to B1 from Baa1 the
underlying rating on the Oakdale Public Financing Authority's 2002
Revenue Bonds, Series A, which are secured by the City of
Oakdale's pledge of net revenues from its sewer enterprise. The
rating remains under review for possible downgrade.
Summary Rating Rationale
The rating action reflects the sewer enterprise's August 31, 2012
debt service payment default on an unrated state revolving fund
loan to the city that is secured on a parity basis with the
Oakdale Public Financing Authority's 2002 Revenue Bonds, which are
rated by Moody's. The rating is on review for further downgrade at
this time while Moody's evaluates the sewer enterprise's prospects
for recovery given the state loan default. The default was driven
primarily by the city's failure to anticipate the additional debt
service due on the recently executed state loan agreement. Failure
to anticipate and budget for the additional debt service resulted
in a shortfall that should have been anticipated and highlights
the city's lack of financial controls and weak financial and debt
management.
Moody's review will focus on prospects for recovery, including
measures to remedy the missed loan payment, ability to make full
and timely payment on rated bonds and the state loan in the
future, and credibility of plans to meet the rate covenant and
other legal terms and conditions of the trust indenture and state
loan agreement. Additional rating considerations include a limited
unrestricted reserve position, lagging regional economy,
uncertainty of future financial performance due to lack of
projections from the city, and possible customer resistance to
another substantial rate increase which may be needed to service
future debt and bolster operations given the low maximum annual
debt service coverage estimated at 0.6x.
STRENGTHS
* Immediate intent to implement new rate increases and
restructure state loans in order to return sewer system to
solvency
* Recent rate increases which provided ample revenue debt
coverage in 2010 and 2011
* Mostly residential base with low customer concentration
CHALLENGES
* Execution risks related to restructuring state loans to the
extent of being able to fully pay debt service in 2013
* Issuer's expectation that rate covenant on the rated debt may
not be reached in 2012
* Weak financial position and narrow reserve levels
* Customers' below average socioeconomic profile, which could
affect their ability to absorb future rate increases
Outlook
The B1 rating has been placed under review for a possible
downgrade based upon the uncertain recovery rate that will result
from restructuring the State Loan, and the possibility that near-
term rate increases will be insufficient to return the sewer
enterprise to a healthy financial performance. An obligation rated
B1 is considered speculative and the rating implies an expected
recovery rate of approximately 99% to 100%. Likely recovery rates
below 99% would result in further downward pressure on the rating.
WHAT COULD MAKE THE RATING GO UP:
* Ability of system to implement rate increases and restructure
State Loans in order to reach rate covenant in 2013
* Significant rebound in usage and revenues
* Significantly bolstered reserve position
WHAT COULD MAKE THE RATING GO DOWN
* Inability of system to implement rate increases sufficient to
pay total debt service
* Any further erosion of already limited liquidity
* Inability to produce structurally balanced operations
* Inability to negotiate State Loan obligations at less than a
99% recovery rate
Principal Methodology
The principal methodology used in this rating was Analytical
Framework For Water And Sewer System Ratings published in August
1999.
OXLEY DEVELOPMENT: Files Schedules of Assets and Liabilities
------------------------------------------------------------
Oxley Development Company, LLC, filed with the U.S. Bankruptcy
Court for the Northern District of Georgia its schedules of assets
and liabilities and statement of financial affairs, disclosing:
Name of Schedule Assets Liabilities
---------------- ------------ ------------
A - Real Property $105,700,000
B - Personal Property $0
C - Property Claimed as Exempt
D - Creditors Holding Secured Claims $69,474,139
E - Creditors Holding Unsecured
Priority Claims $0
F - Creditors Holding Unsecured
Non-Priority Claims $4,303,080
------------ -----------
$105,700,000 $73,777,219
A copy of the Schedules is available for free at:
http://bankrupt.com/misc/oxley.doc28.pdf
About Oxley Development
Oxley Development Company, LLC, filed a Chapter 11 petition
(Bankr. N.D. Ga. Case No. 12-69799) in Atlanta Aug. 6, 2012.
Oxley Development owns the Laurel Bluff and Lauren Island, in
Camden County, Georgia. The Debtor, a single asset real estate
under 11 U.S.C. Sec. 101(51B), estimated assets of at least
$100 million and debts under $100 million.
This is not the first time Oxley has sought bankruptcy protection.
In October 2011, Oxley filed a Chapter 11 petition in Brunswick
(Bankr. S.D. Ga. Case No. 11-21338). But the case was dismissed
at the behest of the U.S. Trustee. The bankruptcy judge in May
granted relief from stay to German American Capital Corporation,
allowing the creditor to pursue its state law remedies in
connection with the Debtor's real property.
William S. Orange, III, Attorney at Law, represented the Debtor in
the prior Chapter 11 case. In the new case, the Debtor is
represented by Paul Reece Marr P.C.
Creditor German American Capital Corp. is represented in the case
by Paul Baisier, Esq., and Shuman Sohrn, Esq., at Seyfarth Shaw
LLP.
PACIFIC MONARCH: Disclosure Statement Hearing on Sept. 20
---------------------------------------------------------
Pacific Monarch Resorts, Inc. and its affiliates last week fined-
tuned their Chapter 11 plan of reorganization and explanatory
disclosure statement ahead of a Sept. 20 hearing.
The Debtors have sold substantially all assets pursuant to
11 U.S.C. Sec. 363 to Diamond Resorts International in a
transaction valued for $49.3 million. There was also a related
sale of the assets to Resort Finance America, LLC, in exchange for
$130 million of debt. The Debtors obtained approval of the sale
in January but the sale was only completed in May. The Debtors
tweaked the Plan documents to incorporate the terms of the sale.
At the hearing Sept. 20, the Debtors will seek approval of the
adequacy of the information in the Disclosure Statement, which
provides that:
(1) There will be substantive consolidation of PMR, Vacation
Interval Realty, Inc. (VIR), and Vacation Marketing Group,
Inc. (VMG),
(2) The Mexican entities -- MGV Cabo, LLC, Desarrollo Cabo Azul,
S. de R.L. de C.V. (DCA), and Operadora MGVM S. de R.L. de
C.V. -- will be merged into DCA and all claims against the
Mexican entities, other than RFA's claim against DCA, will
be paid in full.
(3) On an after the effective date, reorganized PMR will retain
the assets pursuant to a transition services agreement. PMR
will deliver a notice by June 30, 2013, that the agreement
has been completed.
(4) Causes of Action, and assets not included in the sale will
be transferred to the liquidation trust established for PMR,
which will liquidate the causes action and all other
trust assets, and distribute the proceeds thereof to holders
of allowed claims.
(5) All Holders of allowed claims against DCA and the Mexican
Entities, other than RFA, will be paid in full.
(6) Holders of allowed general unsecured claims against PMR, VIR
and VMG, which will be substantively consolidated with PMR,
will be entitled to Pro Rata distributions from the
Liquidation Trust.
(7) Holders of allowed convenience class claims against PMR, VIR
and VMG, will receive a cash payment equal to 20% of their
allowed claims.
(8) From and after the Transition Completion Date, the
Reorganized PMR Equity will be owned by a "New Equity
Holder," who is not an affiliate or insider of any of the
Debtors, and the equity in Reorganized DCA will be owned by
Reorganized PMR. The Reorganized PMR Equity will be
transferred to or issued to the New Equity Holder in
exchange for the $50,000 cash payment to the Liquidation
Trust.
(9) The current interest holders of the Debtors will not receive
or retain anything on account of their interests.
A copy of the Disclosure Statement dated Sept. 4, 2012, is
available for free at:
http://bankrupt.com/misc/Pacific_M_DS_090412.pdf
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.
Houlihan Lokey Capital, Inc., serves as investment baker to the
Debtors. Raymond J. Gaskill, Esq., represents the Debtors as
special timeshare counsel. Greenberg, Whitcombe & Takeuchi, LLP,
serves as the Debtors' special counsel for employment and labor
matters. Lesley, Thomas, Schwarz & Postma, Inc., serves as the
Debtors' tax and vacation ownership points accountants. White &
Case LLP is the Debtors' special tax counsel.
Attorneys at Brinkman Portillo Ronk, PC, serve as counsel to the
Official Committee of Unsecured Creditors.
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.
PARK LANE: Inks Deal to Resume Foreclosure, Dismiss Case
--------------------------------------------------------
Rachel Feintzeig at Dow Jones' DBR Small Cap reports that Park
Lane I LLC is seeking court approval of a settlement that would
allow a foreclosure against its two Alabama properties to move
forward.
About Park Lane I
Headquartered in New York, Park Lane I LLC owns real estate
located at the Cliffs at Ricky Ridge (3325 Ridge Manor Drive and
3239 Westbrook Drive, Birmingham, Alabama) and Overlook at
Homewood (915 Valley Ridge Drive, Birmingham).
Park Lane I LLC filed a Chapter 11 petition (Bankr. S.D.N.Y. Case
No. 12-13624) in Manhattan on Aug. 23, 2012. The Debtor estimated
assets of less than $50,000 and debts of up to $500 million as of
the Chapter 11 filing. The Debtor is represented by Edward E.
Neiger, Esq., at Neiger LLP, in New York, in the Chapter 11 case.
PEAK RESORTS: 3 Affiliates Tap Thomas Hatfield as Accountant
------------------------------------------------------------
Peak Resorts, Inc., et al., ask the U.S. Bankruptcy Court for the
Southern District of New York for authorization to employ Thomas
Hatfield as Accountant for the Debtors.
Mr. Hatfield will provide these services:
a. Review of all appropriate financil records and preparation of
all federal and state tax returns for 2011 going forward for
the Debtors REDI, L.L.C., ARK Enterprises, Inc., and V.R.P.D.
II, L.P.
b. Preparation of all other tax forms that may be required to be
filed by the Debtors REDI, L.L.C., ARK Enterprises, Inc., and
V.R.P.D. II, L.P., and assist these Debtors with all tax
related matters.
Upon information and belief, Mr. Hatfield does not hold any
interest adverse to the estates of the Debtors.
Mr. Hatfield's compensation will be at a fixed fee of $1,500 each
for V.R.P.D. II, L.P. (year ended Dec. 31, 2011) and REDI, L.L.C.
(fiscal yer ended Sept. 30, 2012) and $575 for ARK Enterprises,
Inc. (year ended Dec. 31, 2011).
About Peak Resorts
Peak Resorts, Inc., dba Greek Peak Mountain Resort, and four
affiliates filed for Chapter 11 bankruptcy (Bankr. N.D.N.Y. Case
Nos. 12-31471 to 12-31473, 12-31475 and 12-31476) in Syracuse on
Aug. 1, 2012. The affiliates are Hope Lake Investors LLC,
V.R.P.D. II L.P., REDI LLC, and A.R.K. Enterprises Inc.
Peak Resorts owns 888.5 acres of real estate, including the "Greek
Peak Mountain Resort", a four-season resort development located in
Virgil, New York. The 888.5-acre property is located 8 miles from
Cortland, New York and has the largest day trip area in Central
New York state. REDI LLC owns 402.7 acres of adjacent property.
Hope Lake Investors owns the Hope Lake Lodge & Cascades Indoor
Water Park, a 151-room hotel and resort facility in Virgil,
Cortland County. The Debtors have a total of 264 employees.
Chief Bankruptcy Judge Robert E. Littlefield Jr. presides over the
case. Lawyers at Harris Beach PLLC serve as the Debtors' counsel.
The Debtors scheduled these assets and debts:
Scheduled Assets Scheduled Liabilities
---------------- ---------------------
Hope Lake $27,180,635 $48,800,528
Peak Resorts $12,991,230 $26,558,438
REDI, LLC $1,298,401 $3,851,808
The petitions were signed by Allen R. Kryger, president.
PEAK RESORTS: Amends Application to Employ ARM as Mgt. Consultant
-----------------------------------------------------------------
Peak Resorts, Inc., et al., has filed an amended application for
authority to employ American Resort Management, LLC, as management
consultant to the Debtors.
As management consultant, ARM will monitor all aspects of the
resort's daily performance through its reporting systems for
revenue, expense and labor controls. This differs from the
original employment application which states that ARM will assist
the Debtors with management of the Debtors' operations.
ARM will provide these services:
1. Auditing the Debtors' cash control and reporting policies and
procedures and making recommendations to bring practices in
compliance with the policies and procedures. ARM will also
be making recommendations to bring the policies and
procedures in compliance with policies and procedures
generally adopted and applied in the hotel and resort industy
by businesses similar to the Debtors.
2. Providing advice and counsel to the Debtors in preparation of
monthly budgets as required by the DIP Agreement.
3. Evaluating management and operations with the goal of
increasing net cash flow from operations and providing
recommendations for actions to be immediately implemented
notwithstanding current resource constraints.
Upon information and belief, ARM does not hold any interest
adverse to the estates of the Debtors.
As compensation for its services, ARM will be paid $6,000 per
month plus reasonable and customary expenses.
About Peak Resorts
Peak Resorts, Inc., dba Greek Peak Mountain Resort, and four
affiliates filed for Chapter 11 bankruptcy (Bankr. N.D.N.Y. Case
Nos. 12-31471 to 12-31473, 12-31475 and 12-31476) in Syracuse on
Aug. 1, 2012. The affiliates are Hope Lake Investors LLC,
V.R.P.D. II L.P., REDI LLC, and A.R.K. Enterprises Inc.
Peak Resorts owns 888.5 acres of real estate, including the "Greek
Peak Mountain Resort", a four-season resort development located in
Virgil, New York. The 888.5-acre property is located 8 miles from
Cortland, New York and has the largest day trip area in Central
New York state. REDI LLC owns 402.7 acres of adjacent property.
Hope Lake Investors owns the Hope Lake Lodge & Cascades Indoor
Water Park, a 151-room hotel and resort facility in Virgil,
Cortland County. The Debtors have a total of 264 employees.
Chief Bankruptcy Judge Robert E. Littlefield Jr. presides over the
case. Lawyers at Harris Beach PLLC serve as the Debtors' counsel.
The Debtors scheduled these assets and debts:
Scheduled Assets Scheduled Liabilities
---------------- ---------------------
Hope Lake $27,180,635 $48,800,528
Peak Resorts $12,991,230 $26,558,438
REDI, LLC $1,298,401 $3,851,808
The petitions were signed by Allen R. Kryger, president.
PEAK RESORTS: Committee Wants to Retain Cole Schotz as Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditors of Peak Resorts,
Inc., et al., seeks the U.S. Bankruptcy Court for the Northern
District of New York's authority to retain Cole, Schotz, Meisel,
Forman & Leonard, P.A., as the Committee's counsel, nunc pro tunc
to Aug. 20, 2012.
The Committee consists of the following members: The Rossignol
Group, Meyda Tiffany, and Cayuga Press of Cortland.
Cole Schotz will provide, among other things, these services:
(a) advise the Committee with respect to its rights, duties and
powers in these Chapter 11 cases;
(b) assist and advise the Committee with respect to debtor-in-
possession financing and cash collateral matters;
(c) assist and advise the Committee in its consultations with the
Debtors relative to the administration of these Chapter 11
cases;
(d) assist the Committee in analyzing the claims of the Debtors'
creditors and the Debtors' capital structure and in
negotiating with holders of claims and equity interests;
(e) assist the Committee in its investigation of the acts,
conduct, assets, liabilities and financial condition of the
Debtors and of the operation of the Debtors' businesses;
(f) assist the Committee in its investigation of the liens and
claims of the Debtors' pre-petition lenders and the
prosecution of any claims or causes of action revealed by
such investigation; and
(g) assist the Committee in its analysis of, and negotiations
with, the Debtors or any third party concerning matters
related to, among other things, the assumption or rejection
of certain leases of nonresidential real property and
executory contracts, the proposed sale of substantially all
of the Debtors' assets and businesses, financing of other
transactions and the terms of one or more plans of
reorganization for the Debtors and accompanying disclosure
statements and related plan documents;
The attorneys presently designated to have primary responsibility,
or to assist, in representing the Committee, and their standard
hourly rates, are:
Gary H. Leibowitz, Esq. Member $450.00
Sanjay Bhatnagar, Esq. Associate $325.00
Therese A. Scheuer, Esq. Associate $285.00
Kimberly Karstetter Paralegal $190.00
To the best of the Committee's knowledge, Cole Schotz does not
hold or represent any interest adverse to the Debtors, their
estates or creditors in these matters, and that Cole Schotz is a
"disinterested person" as that phrase is defined in section
101(14) of the Bankruptcy Code.
About Peak Resorts
Peak Resorts, Inc., dba Greek Peak Mountain Resort, and four
affiliates filed for Chapter 11 bankruptcy (Bankr. N.D.N.Y. Case
Nos. 12-31471 to 12-31473, 12-31475 and 12-31476) in Syracuse on
Aug. 1, 2012. The affiliates are Hope Lake Investors LLC,
V.R.P.D. II L.P., REDI LLC, and A.R.K. Enterprises Inc.
Peak Resorts owns 888.5 acres of real estate, including the "Greek
Peak Mountain Resort", a four-season resort development located in
Virgil, New York. The 888.5-acre property is located 8 miles from
Cortland, New York and has the largest day trip area in Central
New York state. REDI LLC owns 402.7 acres of adjacent property.
Hope Lake Investors owns the Hope Lake Lodge & Cascades Indoor
Water Park, a 151-room hotel and resort facility in Virgil,
Cortland County. The Debtors have a total of 264 employees.
Chief Bankruptcy Judge Robert E. Littlefield Jr. presides over the
case. Lawyers at Harris Beach PLLC serve as the Debtors' counsel.
The Debtors scheduled these assets and debts:
Scheduled Assets Scheduled Liabilities
---------------- ---------------------
Hope Lake $27,180,635 $48,800,528
Peak Resorts $12,991,230 $26,558,438
REDI, LLC $1,298,401 $3,851,808
The petitions were signed by Allen R. Kryger, president.
PEAK RESORTS: Can Employ Harris Beach as Bankruptcy Counsel
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of New York
has granted Peak Resorts, Inc., et al., permission to employ
Harris Beach PLLC as the Debtors' bankruptcy counsel.
As reported in the TCR on Aug. 14, 2012, the firm's hourly rates
are:
Lee E. Woodward $375
David M. Capriotti $375
Wendy A. Kinsella $375
Kelly Griffith $275
Kevin Tompsett $310
Paralegals $125
The firm attests that it has no connection with the Debtors,
creditors, with the U.S. Trustee or any person employed in the
U.S. Trustee's office or any other parties-in-interest.
About Peak Resorts
Peak Resorts, Inc., dba Greek Peak Mountain Resort, and four
affiliates filed for Chapter 11 bankruptcy (Bankr. N.D.N.Y. Case
Nos. 12-31471 to 12-31473, 12-31475 and 12-31476) in Syracuse on
Aug. 1, 2012. The affiliates are Hope Lake Investors LLC,
V.R.P.D. II L.P., REDI LLC, and A.R.K. Enterprises Inc.
Peak Resorts owns 888.5 acres of real estate, including the "Greek
Peak Mountain Resort", a four-season resort development located in
Virgil, New York. The 888.5-acre property is located 8 miles from
Cortland, New York and has the largest day trip area in Central
New York state. REDI LLC owns 402.7 acres of adjacent property.
Hope Lake Investors owns the Hope Lake Lodge & Cascades Indoor
Water Park, a 151-room hotel and resort facility in Virgil,
Cortland County. The Debtors have a total of 264 employees.
Chief Bankruptcy Judge Robert E. Littlefield Jr. presides over the
case. Lawyers at Harris Beach PLLC serve as the Debtors' counsel.
The Debtors scheduled these assets and debts:
Scheduled Assets Scheduled Liabilities
---------------- ---------------------
Hope Lake $27,180,635 $48,800,528
Peak Resorts $12,991,230 $26,558,438
REDI, LLC $1,298,401 $3,851,808
The petitions were signed by Allen R. Kryger, president.
PEMCO WORLD: Critical Vendor Payments to Boeing Approved
--------------------------------------------------------
On Aug. 22, 2012, the U.S. Bankruptcy Court for the District of
Delaware approved the Stipulation among Pemco World Air Services,
Inc., et al., Avion Services Holdings, LLC, and The Boeing Company
with respect to (i) critical vendor payments and (ii) the
assumption and assignment of certain agreements.
Avion Services Holdings, LLC, the backup bidder for the Pemco
Debtors' assets at the June 7, 2012 auction, was designated as the
successful bidder for the Pemco Debtors' assets after the Asset
Purchase Agreement between the Pemco Debtors and Vision
Technologies Aerospace Incorporated ("VT"), the winning bidder,
was terminated. The Pemco Debtors intend to assume and assign
effective upon Closing of the Asset Purchase Agreement between
Avion Services and the Pemco Debtors, certain agreements and
revised agreements with Boeing. Avion Services is an affiliate of
Sun Capital Partners, Inc.
Boeing, owed $1,100,672 as of March 5, 2012 (the "Petition Date"),
qualifies for payment pursuant to the April 3, 2012 Final Order
authorizing the payment of certain critical vendor claims.
Pursuant to the Stipulation, the Pemco Debtors, Avion Services and
Boeing agreed, as follows:
1. The Pemco Debtors will pay $412,352 on the effective date of
that certain Debt Cure Letter Agreement No. 2012-HB3C04 and
$172,080 in four (4) equal installments on the 1st of each
month, or the first business day thereafter, beginning on
Sept. 1, 2012, will all outstanding amounts being paid to
Boeing no later than Dec. 1, 2012, in satisfaction of the
Boeing Claim.
2. Subject to the provisions of the Stipulation, Boeing consents
to the assumption and assignment, effective as of the
Closing, of the Assumed and Assigned Agreements to Purchaser.
3. Subject to the provisions of the Stipulation, Purchaser
accepts the assignment of the Assumed and Assigned
Agreements, effective at Closing.
4. On the date of the Closing, the Pemco Debtors will (1) assume
and assign the Assumed and Assigned Agreements to Purchaser
and (2) reject the Rejected Agreements.
5. Effective upon approval of the Stipulation by the Court and
execution by Boeing and the Pemco Debtors of the Stipulation
and the Group 2 Agreements, Boeing hereby withdraws its
Limited Objection of The Boeing Company to Debtors' Notice to
Counterparties to Potentially Assumed Executory contracts and
Unexpired Leases [Docket No. 342].
6. Pursuant to the Stipulation, Boeing and the Pemco Brothers
agree to a mutual release of any and all claims, rights,
defenses, demands, liabilities, obligations, damages,
actions, suits, causes of action, and setoffs.
A copy of the Stipulation is available for free at:
http://bankrupt.com/misc/pemcoworld.doc620.exhibit1.pdf
About Pemco World Air Services
Headquartered in Tampa, Florida Pemco World Air Services --
http://www.pemcoair.com/-- performs large jet MRO services, and
has operations in Dothan, AL (military MRO and commercial
modification), Cincinnati/Northern Kentucky (regional aircraft
MRO), and partner operations in Asia.
Pemco filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case
No. 12-10799) on March 5, 2012. Young Conaway Stargatt & Taylor,
LLP has been tapped as general bankruptcy counsel; Kirkland &
Ellis LLP as special counsel for tax and employee benefits issues;
AlixPartners, LLP as financial advisor; Bayshore Partners, LLC as
investment banker; and Epiq Bankruptcy Solutions LLC as notice and
claims agent.
On March 14, 2012, the U.S. Trustee appointed an official
committee of unsecured creditors.
On April 13, 2012, Sun Aviation Services LLC (Bankr. D. Del. Case
No. 12-11242) filed its own Chapter 11 bankruptcy petition. Sun
Aviation owns 85.08% of the stock of Pemco debtor-affiliate WAS
Aviation Services Holding Corp., which in turn owns 100% of the
stock of debtor WAS Aviation Services Inc., which itself owns 100%
of the stock of Pemco World Air Services Inc. Pemco also owes Sun
Aviation $5.6 million. As a result, Sun Aviation is seeking
separate counsel. However, Sun Aviation obtained an order jointly
administering its case with those of the Pemco debtors.
On June 15 the bankruptcy court approved sale of Pemco's business
for $41.9 million cash to an affiliate of VT Systems Inc. from
Alexandria, Virginia. Boca Raton, Florida-based Sun Capital was
under contract to make the first bid at auction for the provider
of heavy maintenance and repair services for commercial jet
aircraft.
PEREGRINE FINANCIAL: CFTC Wants Customer Distribution Slowed Down
-----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the U.S. Commodity Futures Trading Commission wants
the trustee for liquidating commodity broker Peregrine Financial
Group Inc. to slow down the first distribution to creditors by two
or three weeks.
According to the report, bankruptcy trustee Ira Bodenstein
arranged a hearing today, Sept. 12, in U.S. Bankruptcy Court in
Chicago for approval to make a first distribution of $123 million
to futures customers from the $181 million in customer property in
his possession. Customer property is that part of Peregrine's
assets that may be distributed only to customers. In court on
Sept. 10, the trustee's lawyer said the shortfall in customer
funds is about $190 million. The CFTC, wearing its hat as
Peregrine's regulator, said in a court filing on Sept. 9 that the
trustee hasn't completed "validity tests" to "ensure that the data
underlying the distribution are reliable."
The report relates that the CFTC doesn't believe that performing
necessary tests will "significantly delay" the distribution. The
commission estimates that there could be a hearing on Sept. 27 or
soon thereafter to approve the initial distributions. The CFTC
said that a "preliminary investigation" had discovered "over $45
million in fictitious bookkeeping entries," making Peregrine's
books and records an unreliable sole source on which to base
distributions. Overruling objections from customers, the
bankruptcy judge gave the trustee permission on Sept. 10 to raise
the salary of the inside general counsel by $20,000 to about
$400,000 annually.
About Peregrine Financial
Peregrine Financial Group Inc. filed to liquidate under Chapter 7
of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 12-27488)
on July 10, 2012, disclosing between $500 million and $1 billion
of assets, and between $100 million and $500 million of
liabilities.
Earlier that day, at the behest of the U.S. Commodity Futures
Trading Commission, a U.S. district judge appointed a receiver and
froze the firm's assets. The firm put itself into bankruptcy
liquidation in Chicago later the same day. The CFTC had sued
Peregrine, saying that more than $200 million of supposedly
segregated customer funds had been "misappropriated." The CFTC
case is U.S. Commodity Futures Trading Commission v. Peregrine
Financial Group Inc., 12-cv-5383, U.S. District Court, Northern
District of Illinois (Chicago).
Peregrine's CEO Russell R. Wasendorf Sr. unsuccessfully attempted
suicide outside a firm office in Cedar Falls, Iowa, on July 9.
The bankruptcy petition was signed in his place by Russell R.
Wasendorf Jr., the firm's chief operating officer. The resolution
stated that Wasendorf Jr. was given a power of attorney on July 3
to exercise if Wasendorf Sr. became incapacitated.
Peregrine Financial is the regulated unit of the brokerage
PFGBest.
At a quickly-convened hearing on July 13, the bankruptcy judge
authorized the Chapter 7 trustee to operate Peregrine's business
on a "limited basis" through Sept. 13.
The trustee filed formal lists in bankruptcy court last week
showing assets of $270 million and liabilities totaling $525.3
million, mostly owing to customers. The remainder of the debt is
a few million each in secured claims and unsecured claims entitled
to priority in payment from assets that don't belong to customers.
PLAINS EXPLORATION: Moody's Reviews 'Ba3' CFR for Downgrade
-----------------------------------------------------------
Moody's Investors Service placed under review for downgrade Plains
Exploration & Production Company's (PXP) Ba3 Corporate Family
Rating (CFR) and B1 senior unsecured notes rating. This rating
action was prompted by PXP's announcement that it would acquire
certain deepwater Gulf of Mexico (GOM) infrastructure and
producing assets for $6.1 billion in an all-debt transaction.
The following summarizes the ratings under review:
LT Corporate Family Ratings (domestic currency) rating of Ba3
on review for downgrade
Senior Unsecured (domestic currency) rating of B1 on review for
downgrade
Probability of Default rating of Ba3 on review for downgrade
BACKED Senior Unsec. Shelf (domestic currency) rating of (P)B1
on review for downgrade
BACKED Subordinate Shelf (domestic currency) rating of (P)B3on
review for downgrade
Ratings Rationale
The review for downgrade reflects the all debt funded nature of
the transaction, with leverage rising substantially above other
Ba3-rated peers, the execution risk associated with PXP's
deleveraging plans, including the timing of and proceeds from
asset sales, and the higher risk profile of GOM development. To
fund the acquisition PXP intends to raise up to $7.0 billion of
debt financing, which will dramatically leverage its balance sheet
with as much as $9.7 billion total debt at year-end 2012. On a pro
forma run rate basis, debt on production will exceed a very high
$60,000 per average daily Boe at closing.
Strategically, the acquisition is transformational for PXP who has
executed a series of other large recent transactions, previously
re-shaping the company, including its 2010 exit from the shallow
water GOM, and acquisitions in the Haynesville (2008) and Eagle
Ford (2010) Shales. These transactions supplemented the company's
existing long-lived California assets and deepwater GOM Lucius and
Phobos developments.
The review will focus on the obvious leveraging nature of the
transaction and the ability of and likelihood that PXP will
deliver meaningful debt reduction through asset sales and free
cash flow. Moody's will evaluate the timing of debt reduction as
the company integrates this very large acquisition into its
existing operations. With several of the acquired fields producing
at low levels of capacity, PXP will be required to invest
significant incremental development capital into the acquired
fields and producing platforms to achieve expected production
gains. Moody's will also assess the operational and execution risk
of achieving these production gains in its review. Moody's expects
to conclude the review by year end, with the likely outcome being
a one notch downgrade.
PXP has agreed to acquire interests in five deepwater GOM
oilfields from subsidiaries of BP p.l.c. (BP) together with Shell
Offshore Inc.'s (Shell) 50% interest in one of the five for an
aggregate $6.1 billion. The acquired assets comprise
BP's interests in the Holstein, Horn Mountain, Marlin, Ram Powell
and Diana-Hoover fields, including their respective platform and
producing infrastructure. The fields are producing 67,000 Boe per
day (87% crude oil). With the acquisition, PXP's liquids
production will increase to 89% of total expected volumes to be
produced in 2013. The transaction is effective as of October 1,
2012, with PXP expecting to close the acquisition by year-end
2012.
The principal methodology used in rating Plains Exploration &
Production was the Global Independent Exploration and Production
Industry Methodology published in December 2011.
PLAINS EXPLORATION: S&P Puts 'BB' Corp. Credit Rating on Watch Neg
------------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on Plains
Exploration & Production Co. on CreditWatch with negative
implications.
"The rating action follows the announcement that Plains has agreed
to acquire interests in the Marlin, Dorado, King, Horn Mountain,
Holstein, Diana-Hoover, and Ram Powell fields from BP PLC and an
interest in the Holstein field from Shell Offshore Inc. Total
consideration for the two transactions is approximately $6.1
billion. Plains plans to fund the acquisition with up to $7
billion in debt," S&P said.
"We will resolve the CreditWatch after we conduct a full
assessment of the business and financial risk profiles of the
company, which will occur before the transaction is scheduled to
close. In addition, we will resolve the CreditWatch on the issue
level rating after we review additional information related to the
assets and capital structure in the context of a recovery
analysis," S&P said.
PMI GROUP: Exclusive Plan Filing Period Extended to Oct. 19
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has
extended The PMI Group, Inc.'s exclusive period to file a Plan in
its Chapter 11 case until Oct. 19, 2012, and its exclusive period
to solicit acceptances of a filed Plan until Dec. 17, 2012.
About The PMI Group
Del.-based The PMI Group, Inc., is an insurance holding company
whose stock had, until Oct. 21, 2011, been publicly-traded on the
New York Stock Exchange. Through its principal regulated
subsidiary, PMI Mortgage Insurance Co., and its affiliated
companies, the Debtor provides residential mortgage insurance in
the United States.
The PMI Group filed for Chapter 11 bankruptcy (Bankr. D. Del. Case
No. 11-13730) on Nov. 23, 2011. In its schedules, the Debtor
disclosed $167,963,354 in assets and $770,362,195 in liabilities.
Stephen Smith signed the petition as chairman, chief executive
officer, president and chief operating officer.
The Debtor said in the filing that it does not have the financial
resources to pay the outstanding principal amount of the 4.50%
Convertible Senior Notes, 6.000% Senior Notes and the 6.625%
Senior Notes if those amounts were to become due and payable.
The Debtor is represented by James L. Patton, Esq., Pauline K.
Morgan, Esq., Kara Hammond Coyle, Esq., and Joseph M. Barry, Esq.,
at Young Conaway Stargatt & Taylor LLP.
The Official Committee of Unsecured Creditors appointed in the
case retained Morrison & Foerster LLP and Womble Carlyle Sandridge
& Rice, LLP, as bankruptcy co-counsel. Peter J. Solomon Company
serves as the Committee's financial advisor.
POINT BLANK: Settlement With Committee, Privet Approved
-------------------------------------------------------
BankruptcyData.com reports that the U.S. Bankruptcy Court approved
Point Blank Solutions' motion for approval of a settlement between
the Debtors, the official committee of unsecured creditors, the
official committee of equity security holders and debtor-in-
possession lenders Privet Opportunity Fund I and Privet Fund and
Prescott Group Capital Management. The settlement resolves the
equity committee's motion for an order vacating interim and final
D.I.P. financing orders.
About Point Blank
Headquartered in Pompano Beach, Florida, Point Blank Solutions,
Inc. -- http://www.pointblanksolutionsinc.com/-- designs and
produces body armor systems for the U.S. Military, Government and
law enforcement agencies, as well as select international markets.
The Company maintains facilities in Pompano Beach, Florida, and
Jacksboro, Tennessee.
The Company's former chief executive officer and chief operating
officer were convicted in September 2010 of orchestrating a
$185 million fraud.
Point Blank Solutions, formerly DHB Industries, filed for
Chapter 11 protection (Bankr. D. Del. Case No. 10-11255) on
April 14, 2010. Laura Davis Jones, Esq., Alan J. Kornfeld, Esq.,
David M. Bertenthal, Esq., and Timothy P. Cairns, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as bankruptcy counsel to
the Debtor. Olshan Grundman Frome Rosenweig & Wolosky LLP serves
as corporate counsel. Epiq Bankruptcy Solutions serves as claims
and notice agent.
The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Equity Security
Holders in the case. Ian Connor Bifferato, Esq., and Thomas F.
Driscoll III, Esq., at Bifferato LLC; and Carmen H. Lonstein,
Esq., Andrew P.R. McDermott, Esq., and Lawrence P. Vonckx, Esq.,
at Baker & McKenzie LLP, serve as counsel for the Official
Committee of Equity Security Holders. Robert M. Hirsh, Esq., and
George P. Angelich, Esq., at Arent Fox LLP, serve as counsel to
the Creditors Committee, and Frederick B. Rosner, Esq., and
Brian L. Arban, Esq., at the Rosner Law Group LLC, serve as
co-counsel.
RICHMOND JOINT: Moody's Corrects Revenue Bonds Rating From Ba1
--------------------------------------------------------------
Moody's Investors Service is correcting the rating on the Richmond
Joint Powers Financing Authority, CA Subordinate Multifamily
Housing Revenue Bonds (Westridge At Hilltop Apartments), Series
2007 to Baa1 from Ba1. Due to an internal administrative error,
the rating on these bonds was inadvertently downgraded and placed
on review for possible downgrade on
June 14, 2012.
The affected CUSIPs are:
764467AF3
764467AG1
764467AH9
764467AJ5
764467AK2
764467AL0
764467AM8
764467AN6
764467AP1
764467AV8
764467AW6
764467AA4
RIVERSIDE COUNTY: Moody's Corrects Revenue Bonds Rating From Ba1
----------------------------------------------------------------
Moody's Investors Service is correcting the rating on the
Riverside County Public Financing Authority, CA Lease Revenue
Bonds (State of California Court of Appeal 4th Appellate District
Division Two Project) to A2 from Ba1. Due to an internal
administrative error, the rating on these bonds was inadvertently
downgraded and placed on review for possible downgrade on
June 14, 2012.
The affected CUSIPs are:
76912KAP7
76912KAQ5
76912KAR3
RITZ CAMERA: C&A Marketing Acquires Assets at Bankruptcy Auction
----------------------------------------------------------------
C&A Marketing Inc. has acquired portions of Ritz Camera and Image
LLC at bankruptcy auction. Ritz Camera and Image's assets went up
for auction on Sept. 6. Assets of Ritz Camera acquired by C&A
include the company's stores, websites, technology and the RitzPix
business.
C&A Marketing is an industry veteran in the imaging space, having
over 20 years' experience both in wholesale distribution, sourcing
and retail operations. As the Polaroid Licensee for instant
digital imaging products, IP, Sports Action cameras and
accessories, C&A already plays a significant role in the
resurgence of one iconic American imaging brand.
"Ritz Camera has been a respected name in the camera industry for
almost a century," commented Harry Klein, co-owner and CFO of C&A
Marketing. "In today's marketplace, it is essential for retailers
to strike the right balance with their brick and mortar and online
retail presence. This is particularly true in the imaging
channel, as consultative sales and interaction are essential to
the customer experience. The Ritz brand has long been synonymous
with the type of service and customer-centric approach that is too
often missing from the retail landscape. We plan to uphold that
proud tradition, while updating the retail mix to reflect current
market dynamics."
C&A plans to keep approximately five to seven of the camera
retailer's flagship stores open across the country along with the
RitzPix business. This is a major online Imaging business that
can do anything from standard prints, photo restoration, large
size printing, medium format film processing, custom book printing
and more with a full size Lab in Hapeville, GA. Along with the
Ritz Camera name, C&A will also maintain additional retailers
Camera World, Wolf Camera, Photo Alley, Kits Cameras and The
Camera Shop, all of which have been acquired by Ritz in recent
years. The C&A acquisition will be a majority of the Ritz Camera
business.
Ritz Camera and Image was founded by Benjamin Ritz in 1918. The
retailer offers a variety of cameras, accessories and camera
related services from the top brands in the industry.
C&A Marketing, Inc.
C&A Marketing is a distributor of digital cameras, camcorders, and
related accessories in the consumer technology market. Based in
Ridgefield Park, N.J., C&A Marketing is the Polaroid Licensee for
their accessories and instant digital camera line. With over two
decades in business, the depth and breadth of their inventory is
constantly expanding as is their presence and reputation in the
consumer electronic marketplace.
About Ritz Camera
Beltsville, Maryland-based Ritz Camera & Image LLC --
http://www.ritzcamera.com-- sells digital cameras and
accessories, and electronic products. It sought Chapter 11
protection (Bankr. D. Del. Case No. 12-11868) on June 22, 2012, to
close unprofitable stores. Ritz claims to be the largest camera
and image chain the U.S., operating 265 camera stores in 34 states
as well as an Internet business. Ritz Camera intends to shut 128
locations and cut its staff in half. Included in the closing are
10 locations in Maryland and 4 in Virginia.
Affiliate Ritz Interactive Inc., owner e-commerce Web sites that
include RitzCamera.com and BoatersWorld.com, also filed for
bankruptcy.
RCI's predecessor, Ritz Camera Centers, Inc., sought Chapter 11
protection (Bankr. D. Del. Case No. 09-10617) on Feb. 22, 2009.
Ritz generated $40 million by selling all 129 Boater's World
Marine Centers. A group that included the company's chief
executive officer, David Ritz, formed Ritz Camera & Image to buy
at least 163 of the remaining 375 camera stores. The group paid
$16.25 million in cash and a $7.8 million note. Later, Ritz sold
a $4 million account receivable for $1.5 million to an owner of
the company that owed the debt.
In the 2009 petition, Ritz disclosed total assets of $277 million
and total debts of $172.1 million. Lawyers at Cole, Schotz,
Meisel, Forman & Leonard, P.A., served as bankruptcy counsel.
Thomas & Libowitz, P.A., served as the Debtor's special corporate
counsel and conflicts counsel. Marc S. Seinsweig, at FTI
Consulting, Inc., served as the Debtor's chief restructuring
officer. Kurtzman Carson Consultants LLC acted as claims and
noticing agent. Attorneys at Cooley Godward Kronish LLP and
Bifferato LLC represented the official committee of unsecured
creditors as counsel.
In April 2010, the Court approved a liquidating Chapter 11 plan
proposed by the company and the official creditor's committee.
Under the Plan, unsecured creditors were to recover 4% to 14% of
their claims.
In the 2012 petition, RCI estimated total assets and liabilities
of $50 million to $100 million. The Debtors owe not less than
$16.32 million for term and revolving loans provided by secured
lenders led by Crystal Finance LLC, as administrative agent.
Attorneys at Cole, Schotz, Meisel, Forman & Leonard, P.A., serve
as bankruptcy counsel. Kurtzman Carson Consultants LLC is the
claims agent.
WeinsweigAdvisors LLC's Marc Weinsweig has been appointed as
Ritz's CRO.
Mark L. Desgrosseilliers, Esq., and Ericka F. Johnson, Esq., at
Womble Carlyle Sandridge & Rice, LLP, represent liquidators Gordon
Brothers Retail Partners LLC and Hilco Merchant Resources LLC.
Crystal Finance, the DIP lender, is represented by Morgan, Lewis &
Bockius and Young Conaway Stargatt & Taylor LLP.
Roberta A. Deangelis, U.S. Trustee for Region 3, appointed seven
creditors to serve on the Official Committee of Unsecured
Creditors in the Debtors' cases. The Committee tapped Cooley LLP
as its lead counsel, Richards, Layton & Finger, P.A. as its
Delaware counsel, and PricewaterhouseCoopers LLP as its financial
advisor.
ROBERTS LAND: Farm Credit Still Objects to Plan
-----------------------------------------------
Farm Credit of Florida, ACA, at the end of last month
unsurprisingly filed an objection to confirmation of Roberts
Land & Timber Investment Corp.'s Chapter 11 plan of
Reorganization.
Farm Credit, an agricultural credit association owed $11.9 million
for notes issued by the Debtor prepetition, says the Plan cannot
be confirmed. The association says that if the Debtor opts for
Plan treatment I, the association would receive less than all of
the property securing its claims. If the Debtor opts for
treatment II, the association will neither retain all of the liens
securing its claims nor receive all of the property securing the
claims.
Farm Credit has pending motion for relief from stay, or,
alternatively, motion to dismiss the cases by Farm Credit of
Florida, ACA.
Originally filed Sept. 13, 2011, and amended Feb. 28, 2012, the
Plan provides that at the sole and exclusive option of the
Debtors, which will be exercised prior to the conclusion of the
confirmation hearing, the Debtors will inform the Court of their
determination to invoke and implement either Plan Treatment:
(i) Treatment I provides that the Debtors will transfer to the
Association Roberts' entire fee simple interest in the
Woodstock Site in full satisfaction of the association's
claims.
(ii) Treatment II provides that Roberts will transfer to the
association Roberts' entire fee simple interest in the
Woodstock Site, the association will retain its first lien
on the Non-Doodstock-Union Site securing the remaining
balance of the claim, and the association would receive
deferred monthly cash payments of principal and interest
over a 30-year-term.
The Aug. 3, 2011 edition of the TCR reported that Farm Credit
asked the Court to lift the automatic stay, or alternatively, to
dismiss the Debtors' cases, arguing that:
i) the Debtors' cases have not been filed in good faith. Rather
than litigating a foreclosure action with Farm Credit in
state court, the Debtors chose to file for Chapter 11 to
invoke the automatic stay;
ii) the Debtors' Plan cannot be confirmed because the Plan
provides Farm Credit with only a portion of its collateral
in full satisfaction of its claims;
iii) in addition to the "occasional and infrequent" sale of the
Real Property, the Debtors' only income is approximately
$8,000 per year from a hunting lease. The remainder of the
Debtors' income consists of mortgage receivables pledged
to Community State Bank and used to service its debt.
iv) the Debtors lack sufficient income to adequately protect Farm
Credit's interest in the Real Property.
v) the Debtors have no equity in the Real Property and the Real
Property is not necessary for an effective reorganization.
A hearing on the Plan and the lift stay motion had been scheduled
for Sept. 6. No new hearing dates have been set as of Sept. 10.
Farm Credit is represented by:
Brian P. Hall
James R. McCachren, III
Dana G. Bradford, III
SMITH, GAMBRELL & RUSSELL, LLP
50 North Laura Street, Suite 2600
Jacksonville, FL 32202
Tel: (904) 598-6100
About Roberts Land
Roberts Land & Timber Investment Corp. filed a Chapter 11 petition
(Bankr. M.D. Fla. Case No. 11-03851) in Jacksonville, Florida, on
May 25, 2011. Andrew J. Decker, III, Esq., at The Decker Law
Firm, P.A., in Live Oak, Florida, serves as counsel to the Debtor.
Affiliate Union Land & TimberCorp. also sought Chapter 11
protection (Case No. 11-03853).
The Debtors are real estate holding and development companies as
well as holder of private mortgages. The Debtors receive income
from the sale and development of real estate, management of real
estate developments, mortgage receivables, cattle grazing leases
and hunting leases.
In its schedules, Roberts Land disclosed assets of $26.7 million
with debt totaling $12.2 million, all secured. The principal
properties are 1,500 acres in Baker County, Florida and 3,300
acres in Union County, Florida.
In its schedules, Union Land disclosed $2,376,170 in assets and
$11,945,819 in liabilities as of the petition date.
SANDS CASTLES: Status Conference in Houston on Sept. 21
-------------------------------------------------------
A status conference has been scheduled for Sept. 21 at 2:15 p.m.
at Houston, Courtroom 400 (DRJ), in the Chapter 11 of Sands
Castles Ventures, L.L.C.
According to the case docket, the Debtor's Chapter 11 plan is due
Feb. 27, 2013.
Sands Castles Ventures, L.L.C., filed a Chapter 11 petition
(Bankr. S.D. Tex. Case No. 12-36465) on Aug. 31, 2012, estimating
at least $100 million in assets and liabilities. Judge David R.
Jones presides over the case. The Law Offices of Peggy J. Lantz,
Esq., serves as the Debtor's counsel. The petition was signed by
Ronald C. Sands, president.
SAN MATEO CONVALESCENT: Hospital Closes Doors; Patients Moved
-------------------------------------------------------------
Bill Silverfarb at the Daily Journal reports that the San Mateo
Convalescent Hospital in San Mateo, California, has stopped doing
business and is in a rush to liquidate its assets to pay off its
last month of payroll, administrator Patricia Barnes said.
According to the report, the hospital's 34 residents, some with
dementia and Alzheimer's disease, have all found homes at other
assisted-living or skilled-nursing facilities, mostly in the
county.
The Daily Journal relates that a sale is pending on the building
with an asking price of $2.5 million but it is not known yet
whether the prospective buyer will continue to operate it as a
convalescent facility.
The report notes that Mr. Barnes has worked at the for-profit
hospital since it was opened by her mother Betty Frint in the
early 1960s.
At its peak, the hospital employed 55 people, Mr. Barnes told the
Daily Journal.
Many of the former residents of the facility have moved to
Nazareth Vista in Belmont where Ms. Barnes has accepted a new job,
the report adds.
The Daily Journal relates that Ms. Barnes said the hospital was
given a 30-day notice to vacate and will have to pay a daily fine
as it continues to occupy the space.
Ms. Barnes said the hospital will likely have to file for
Chapter 13 bankruptcy protection, The Daily Journal adds.
SHILO INN: Second Effort at Plan Has Sept. 20 Hearing
-----------------------------------------------------
Shilo Inn Seaside Oceanfront LLC will seek approval at a hearing
Sept. 20 of the disclosure statement explaining its reorganization
plan dated July 18, 2012. The hearing was previously scheduled
for Aug. 23.
A prior iteration of the Disclosure Statement was rejected by the
bankruptcy judge in May; the Court ordered the Debtor and One West
Bank to engage in mediation by July 1.
This time, the Debtor is seeking approval of a Disclosure
Statement that says that OneWest Bank, the secured lender, will
receive payments for 30 years -- the first five years will be
interest-only-payments and the next 25 years will be fully
amortized over 25 years with principal and interest payments.
The Debtor said that the July 18 Disclosure Statement will be
further amended to provide that OneWest Bank's secured claim is
being paid on a 25-year amortization basis instead of 30 years.
About Shilo Inn, Seaside Oceanfront
Based in Portland, Oregon, Shilo Inn, Seaside Oceanfront, LLC,
operates the Seaside Hotel, a 113-room hotel situated on 1.37
beautiful acres in Seaside, Oregon, pursuant to a franchise
agreement with Shilo Franchise International, LLC. The Hotel is
located directly on the beach and is the premier fixture of the
Seaside promenade.
Shilo Inn Seaside Oceanfront filed for Chapter 11 bankruptcy
(Bankr. C.D. Calif. Case No. 11-34669) on June 7, 2011. David B.
Golubchik, Esq., and J.P. Fritz, Esq., at Levene, Neale, Bender,
Yoo & & Brill L.L.P., in Los Angeles, serve as the Debtor's
bankruptcy counsel. In its petition, the Debtor estimated assets
and debts of $10 million to $50 million.
Debtor-affiliates that previously sought Chapter 11 protection are
Shilo Inn, Diamond Bar, LLC (Case No. 10-60884) on Nov. 29, 2010;
Shilo Inn, Killeen, LLC (Case No. 10-62057) on Dec. 6, 2010; Shilo
Inn, Palm Springs, LLC (Case No. 11-26501) on April 13, 2011; and
Shilo Inn, Pomona Hilltop, LLC (Case No. 11-26270) on April 14,
2011.
On April 3, 2012, the U.S. Bankruptcy Court closed the bankruptcy
cases of Shilo Inn, Pomona Hilltop, LLC, and Shilo Inn, Palm
Springs, LLC.
Shilo Inn, Seaside Oceanfront, LLC reported total scheduled assets
of $22,219,762 and total scheduled liabilities of $13,688,451.
SKY KING: Sec. 341 Creditors' Meeting Set for Oct. 4
----------------------------------------------------
The U.S. Trustee for the Eastern District of California in
Sacramento will convene a Meeting of Creditors under 11 U.S.C.
Sec. 341(a) in the Chapter 11 case of Sky King Inc. on Oct. 4,
2012, at 9:00 a.m. at Office of the UST (7-500).
The last day to oppose discharge is Dec. 3. Proofs of claim are
due in the case by Jan. 2, 2013.
Sky King, which is in its second bankruptcy since 2010, has filed
papers in Bankruptcy Court in Sacramento seeking authority to use
cash and cash equivalents that may constitute cash collateral of
any creditors who hold security interests against the Debtor's
cash collateral, if any. The Debtor proposes to grant a
postpetition replacement lien as and for additional adequate
protection of the Debtor's use of cash collateral. The Debtor
said the use of cash collateral will prevent disruption of its
business operations.
About Sky King
Sky King, Inc., doing business as Sky King Airlines, filed a
Chapter 11 petition (Bankr. E.D. Calif. Case No. 12-35905) on
Aug. 31, 2012, estimating less than $50 million in assets and
liabilities.
Sky King -- http://www.flyskyking.net/-- is a charter airline
based in Sacramento, California. The airline provides charter
service to sports teams and businesses using Boeing 737 aircraft.
Sky King was founded by Gregg Lukenbill in July 1990, then the
managing partner of the Sacramento Kings basketball club of the
National Basketball Association.
Sky King first filed for Chapter 11 bankruptcy protection (Bankr.
E.D. Calif. Case No. 10-25657) on March 9, 2010. It emerged in
June 11 with new owner Aviation Capital Partners Group.
Bankruptcy Judge Christopher M. Klein oversees the 2012 case.
Robert E. Opera, Esq., at Winthrop Couchot Professional
Corporation, serves as the Debtor's counsel. The petition was
signed by Dennis Steven Brown, secretary.
SKY KING: Status Conference Set for Oct. 10
-------------------------------------------
The Bankruptcy Court will hold a status conference in Sky King
Inc.'s Chapter 11 case on Oct. 10 at 10:00 a.m. at Sacramento
Courtroom 35, Department C (swas).
Sky King, Inc., doing business as Sky King Airlines, filed a
Chapter 11 petition (Bankr. E.D. Calif. Case No. 12-35905) on
Aug. 31, 2012, estimating less than $50 million in assets and
liabilities.
Sky King -- http://www.flyskyking.net/-- is a charter airline
based in Sacramento, California. The airline provides charter
service to sports teams and businesses using Boeing 737 aircraft.
Sky King was founded by Gregg Lukenbill in July 1990, then the
managing partner of the Sacramento Kings basketball club of the
National Basketball Association.
Sky King first filed for Chapter 11 bankruptcy protection (Bankr.
E.D. Calif. Case No. 10-25657) on March 9, 2010. It emerged in
June 11 with new owner Aviation Capital Partners Group.
Bankruptcy Judge Christopher M. Klein oversees the 2012 case.
Robert E. Opera, Esq., at Winthrop Couchot Professional
Corporation, serves as the Debtor's counsel. The petition was
signed by Dennis Steven Brown, secretary.
SOLYNDRA LLC: Reorganization Plan Going to Creditors for Vote
-------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Solyndra LLC received a promise from the bankruptcy
judge that she will sign an order approving the disclosure
statement explaining the Chapter 11 plan. A confirmation hearing
to approve the plan will take place Oct. 17.
According to the report, the disclosure statement approved last
week informs unsecured creditors with claims totaling as much as
$135 million why they can expect to recover 2.2% to 3.3%.
Unsecured creditors with $27 million in claims against the holding
company are projected to have a 3% dividend.
The report relates that the top layer of $73.5 million in secured
debt is predicted to have a 55% to full recovery. For the next
layer of $142.8 million in secured debt owing to the Energy
Department, the prediction is for a recovery from nothing to 19%.
The next layer of $385 million in government debt is projected not
to receive anything. Similarly, the last layer of $186 million in
secured debt will have no recovery.
About Solyndra LLC
Founded in 2005, Solyndra LLC was 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.
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.
The Official Committee of Unsecured Creditors of Solyndra LLC has
tapped Blank Rome LLP as counsel and BDO Consulting as financial
advisors.
In October 2011, the Debtors hired Berkeley Research Group, LLC,
and designated R. Todd Neilson as chief restructuring officer.
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.
When they filed for Chapter 11, the Debtors pursued 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 were unable to identify any potential
buyers, an orderly liquidation of the assets for the benefit of
their creditors.
Solyndra did not receive acceptable offers to buy the business as
a going concern. Two auctions late last year brought in a total
of $8 million. A three-day auction in February generated another
$3.8 million. An auction in June generated $1.79 million from the
sale of 7,200 lots of equipment.
Solyndra filed a liquidating plan at the end of July and scheduled
a hearing on Sept. 7 for approval of the explanatory disclosure
statement. The Plan is designed to pay 2.5% to 6%
to unsecured creditors with claims totaling as much as $120
million. Unsecured creditors with $27 million in claims against
the holding company are projected to have a 3% dividend.
SOLYNDRA LLC: Employs ENVIRON International as Consultant
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has granted
Solyndra LLC, et al., authorization to employ ENVIRON
International Corporation as environmental consultant, nunc pro
tunc to Aug. 7, 2012, for the purpose of evaluating the
environmental condition of the Debtors' formerly leased facility
located at 1210 California Circle, in Milpitas, California.
As reported in the TCR on Sept. 5, 2012, the Debtors are retaining
the services of ENVIRON to facilitate the Debtors' negotiations
with its former landlord at the property, iStar CTL I, L.P., and
prepare for litigation against the landlord, including with
respect to the landlord's objection to the Debtors' motion to
reject the lease and the landlord's motion for an administrative
expense claim and other relief. Specifically, ENVIRON will, among
other things:
i. participate in telephone conversations with individuals who
have knowledge regarding the environmental condition of the
property;
ii. review documents regarding the environmental condition of
the property;
iii. conduct a one-day site visit at the property; and
iv. prepare an expert report summarizing ENVIRON's conclusions
regarding the environmental condition of the property.
The hourly rates of ENVIRON's personnel are:
Principal $310
Manager I Senior Consultant 10 $250
Manager/Senior Consultant 9 $225
Manager/Senior Consultant 8 $200
Senior Associate 7 $180
Senior Associate 6B $170
Associate 6 $150
Associate 5 $140
Associate 4 $130
Drafting/Support $75
To the best of the Debtors' knowledge, ENVIRON is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
About Solyndra LLC
Founded in 2005, Solyndra LLC was 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.
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.
The Official Committee of Unsecured Creditors of Solyndra LLC has
tapped Blank Rome LLP as counsel and BDO Consulting as financial
advisors.
In October 2011, the Debtors hired Berkeley Research Group, LLC,
and designated R. Todd Neilson as Chief Restructuring Officer.
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.
When they filed for Chapter 11, the Debtors pursued 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 were unable to identify any potential
buyers, an orderly liquidation of the assets for the benefit of
their creditors.
Solyndra did not receive acceptable offers to buy the business as
a going concern. Two auctions late last year brought in a total
of $8 million. A three-day auction in February generated another
$3.8 million. An auction in June generated $1.79 million from the
sale of 7,200 lots of equipment.
Solyndra filed a liquidating plan at the end of July and scheduled
a hearing on Sept. 7 for approval of the explanatory disclosure
statement. The Plan is designed to pay 2.5% to 6% to unsecured
creditors with claims totaling as much as $120 million. Unsecured
creditors with $27 million in claims against the holding company
are projected to have a 3% dividend.
SOLYNDRA LLC: Wants Loan Commitment End Date Extended to Oct. 27
----------------------------------------------------------------
Solyndra LLC and 360 Degree Solar Holdings, Inc., ask the U.S.
Bankruptcy Court for the District of Delaware to extend to Oct.
27, 2012, the "Commitment Termination Date" as defined in the
Final Order authorizing the Debtors to obtain postpetition secured
financing and to utilize cash collateral, entered by the Court on
Sept. 27, 2011, as amended or supplemented by prior orders of the
Court.
The existing commitment termination date under the final order is
Sept. 29, 2012. The Debtors are seeking the extension so that it
can continue to have access to cash collateral and borrowings
under the $7,000,000 DIP Term Loan. The proposed extension is
intended to provide the Debtors with sufficient time to confirm
the Joint Chapter 11 Plan.
The Debtors are presently soliciting consent to the proposed
extended Commitment Termination Date from their principal secured
lenders, Argonaut Ventures I, L.L.C., as Prepetition Tranche A
Term Loan Facility Representative and Prepetition Tranche E
Agent, and the United States Department of Energy, as Prepetition
Tranche BID Agent.
About Solyndra LLC
Founded in 2005, Solyndra LLC was 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.
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.
The Official Committee of Unsecured Creditors of Solyndra LLC has
tapped Blank Rome LLP as counsel and BDO Consulting as financial
advisors.
In October 2011, the Debtors hired Berkeley Research Group, LLC,
and designated R. Todd Neilson as Chief Restructuring Officer.
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.
When they filed for Chapter 11, the Debtors pursued 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 were unable to identify any potential
buyers, an orderly liquidation of the assets for the benefit of
their creditors.
Solyndra did not receive acceptable offers to buy the business as
a going concern. Two auctions late last year brought in a total
of $8 million. A three-day auction in February generated another
$3.8 million. An auction in June generated $1.79 million from the
sale of 7,200 lots of equipment.
Solyndra filed a liquidating plan at the end of July and scheduled
a hearing on Sept. 7 for approval of the explanatory disclosure
statement. The Plan is designed to pay 2.5% to 6% to unsecured
creditors with claims totaling as much as $120 million. Unsecured
creditors with $27 million in claims against the holding company
are projected to have a 3% dividend.
SOLYNDRA LLC: Wants to Employ W&S as Special Litigation Counsel
---------------------------------------------------------------
Solyndra LLC and 360 Degree Holdings, Inc., ask the U.S.
Bankruptcy Court for the District of Delaware for authorization to
employ Winston & Strawn LLP as special litigation counsel to the
Debtors on a contingent fee basis. Winston & Strawn will
investigate, assess, and if requested, prosecute causes of action
against certain third parties relating to antitrust and
anticompetitive trade practices.
The two attorneys of Winston & Strawn who will be primarily
responsible for this representation are W. Gordon Dobie, Esq., and
Robert B. Pringle, Esq.
W&S will accept a percentage of 33% of any Recovery (in respect of
the litigation) as compensation for the attorney and para-
professional services incurred by the firm, excluding reasonable
costs and out-of-pocket expenses of Winston & Strawn.
The firm has advised the Debtors that it may seek third-party
funding or other financing to pay for the costs and expenses of
the litigation that will be incurred by Winston & Strawn on behalf
of the Debtors. Any charges for such third-party financing will
be considered as additional costs to be deducted from and paid out
of any Recovery of the Debtors prior to calculation of the
contingent fee payable to Winston & Strawn.
To the best of the Debtors' knowledge, information, and belief,
Winston & Strawn holds no interest adverse to the Debtors or the
estates with respect to the matters for which Winston & Strawn is
to be employed.
About Solyndra LLC
Founded in 2005, Solyndra LLC was 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.
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.
The Official Committee of Unsecured Creditors of Solyndra LLC has
tapped Blank Rome LLP as counsel and BDO Consulting as financial
advisors.
In October 2011, the Debtors hired Berkeley Research Group, LLC,
and designated R. Todd Neilson as Chief Restructuring Officer.
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.
When they filed for Chapter 11, the Debtors pursued 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 were unable to identify any potential
buyers, an orderly liquidation of the assets for the benefit of
their creditors.
Solyndra did not receive acceptable offers to buy the business as
a going concern. Two auctions late last year brought in a total
of $8 million. A three-day auction in February generated another
$3.8 million. An auction in June generated $1.79 million from the
sale of 7,200 lots of equipment.
Solyndra filed a liquidating plan at the end of July and scheduled
a hearing on Sept. 7 for approval of the explanatory disclosure
statement. The Plan is designed to pay 2.5% to 6% to unsecured
creditors with claims totaling as much as $120 million. Unsecured
creditors with $27 million in claims against the holding company
are projected to have a 3% dividend.
SOLYNDRA LLC: To Present Plan for Confirmation on Oct. 17
---------------------------------------------------------
On Sept. 10, 2012, the U.S. Bankruptcy Court for the District of
Delaware approved the amended disclosure statement, filed Sept. 7,
2012, explaining Solyndra LLC and 360 Degree Solar Holdings,
Inc.'s amended Chapter 11 Plan. With the approval of the
disclosure statement, voting on the Plan can now commence.
The hearing to consider confirmation of the Plan will commence on
Oct. 17, 2012, at 11:30 a.m. (prevailing Eastern time). The
Debtors will transmit the Solicitation Packages no later than
Sept. 12, 2012. Ballots accepting or rejecting the Plan must be
received no later than Oct. 10, 2012, at 5:00 p.m. (prevailing
Eastern time).
All objections to confirmation of the Plan must be filed no later
than Oct. 10, 2012, at 4:00 p.m. (prevailing Eastern time).
As reported in the TCR on Sept. 7, 2012, the revised disclosure
statement added a few paragraphs summarizing tax losses that might
be utilized in future years by the reorganized company.
According to Bill Rochelle, the bankruptcy columnist for Bloomberg
News, to utilize the tax losses in offsetting future income, the
Company's owners will be required to acquire business that
generate profits. As yet, the prospective owners haven't
identified businesses to be combined with Solyndra.
Solyndra filed a liquidating Chapter 11 plan at the end of July.
The revised disclosure statement shows unsecured creditors with
claims totaling as much as $135 million recovering 2.2% to 3.3%.
Unsecured creditors with $27 million in claims against the holding
company are projected to have 3% dividend.
A copy of the disclosure statement dated Sept. 7, 2012, is
available at http://bankrupt.com/misc/solyndra.doc1060.pdf
About Solyndra LLC
Founded in 2005, Solyndra LLC was 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.
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.
The Official Committee of Unsecured Creditors of Solyndra LLC has
tapped Blank Rome LLP as counsel and BDO Consulting as financial
advisors.
In October 2011, the Debtors hired Berkeley Research Group, LLC,
and designated R. Todd Neilson as Chief Restructuring Officer.
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.
When they filed for Chapter 11, the Debtors pursued 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 were unable to identify any potential
buyers, an orderly liquidation of the assets for the benefit of
their creditors.
Solyndra did not receive acceptable offers to buy the business as
a going concern. Two auctions late last year brought in a total
of $8 million. A three-day auction in February generated another
$3.8 million. An auction in June generated $1.79 million from the
sale of 7,200 lots of equipment.
Solyndra filed a liquidating plan at the end of July and scheduled
a hearing on Sept. 7 for approval of the explanatory disclosure
statement. The Plan is designed to pay 2.5% to 6% to unsecured
creditors with claims totaling as much as $120 million. Unsecured
creditors with $27 million in claims against the holding company
are projected to have a 3% dividend.
SP NEWSPRINT: Takes Lenders' $145 Million Cash, Debt Offer
----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that newsprint maker SP Newsprint Holdings LLC found no
buyer willing to compete with secured lenders in purchasing the
business. Consequently, the bankruptcy judge in Delaware approved
a sale on Sept. 7 with a sticker price of $145 million.
According to the report, faced with running out of cash financing
the bankruptcy reorganization begun in November, SP Newsprint put
the business up for auction in August, with existing lenders
serving as the so-called stalking horse. There were no competing
bids submitted, so the auction was cancelled. The purchase price
is composed of some of the secured debt plus enough cash to pay
off financing for the Chapter 11 case.
The report relates that in addition, the lenders will pay up to
about $30 million in expenses run up during the bankruptcy. When
the bankruptcy reorganization began, SP said the lenders were
willing to serve as the stalking horse. Before bankruptcy, SP
owed $41 million on a revolving credit and $213 million on a term
loan with General Electric Capital Corp. as a lender and agent.
GECC is agent for the lenders supplying the credit for
reorganization.
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., at Cahill Gordon & Reindel LLP serve as the Debtors' lead
counsel. Lee E. Kaufman, Esq., and Mark D. Collins, Esq., 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
$318 million in assets and $323 million in liabilities as of the
Chapter 11 filing. The petitions were signed by Edward D.
Sherrick, executive vice president and chief financial officer.
The Debtor won court approval to hold an Aug. 17 auction to sell
virtually all its assets. The Debtor's lenders will act as the
so-called stalking horse for the auction setting a floor for other
bidders to beat. The lenders will make a credit bid, using
forgiveness of its secured debt to buy the assets. General
Electric Capital Corp., as both agent to lenders and a lender
itself, is owed about $254 million.
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: DIP Loan Increased to $67 Million
-----------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has
authorized SP Newsprint Holdings LLC, et al., to enter into the
August DIP Agreement Amendment in contemplation of the closing of
the sale of substantially all of the assets of the Debtors to SPN
AcquisitionCo, LLC, or other purchasers providing higher or better
offers.
The August DIP Credit Agreement Amendment increases the commitment
under the DIP Agreement to $67 million to provide sufficient
liquidity to close on the Sale and to cover the costs of the
Debtors' operations.
On Jan. 25, 2012, the Court entered the Final Order authorizing
the Debtors to obtain post petition secured financing of up to
$20 million, with the ability to increase the amount to
$25 million, without the need for further Court approval and to
use cash collateral. The increase in liquidity under the DIP
Agreement to $25 million was approved on our about April 27, 2012.
On Dec. 22, 2011, the Debtors closed on the DIP Facility, and
filed with the Bankruptcy Court the execution version of the DIP
Credit Agreement.
Under the 8th Amendment to the DIP Credit Agreement, the Maximum
Incremental Commitment Amount is increased to $67,000,000 less the
aggregate principal amount of the Loans outstanding together with
any accrued and unpaid interest thereon immediately prior to the
Closing Date, as defined in the Asset Purchase Agreement.
A copy of the August DIP Credit Agreement Amendment is available
at http://bankrupt.com/misc/spnewsprint.augdipamendment.pdf
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., at Cahill Gordon & Reindel LLP serve as the Debtors' lead
counsel. Lee E. Kaufman, Esq., and Mark D. Collins, Esq., 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
$318 million in assets and $323 million 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 Plan Filing Period Extended to Oct. 10
----------------------------------------------------------
SP Newsprint Holdings LLC, et al., ask the U.S. Bankruptcy Court
for the District of Delaware to further extend their exclusive
periods to file and solicit acceptances of a Chapter 11 plan by 30
days (from Sept. 10, 2012, and Nov. 9, 2012, respectively, through
and including Oct. 10, 2012, and Dec. 10, 2012, respectively).
If approved, this will be the third extension of the Debtors'
exclusive periods.
Debtors say their cases are and large and complex enough to
warrant an extension of the Exclusive Periods. Further, the
Debtors state that their cases have been pending for less than
nine months, and that they have accomplished a great deal in this
time period, including obtaining entry of the order approving the
sale of substantially all of the Debtors' assets to an entity
owned by the Debtors' pre-petition lenders, which provides for the
eventual conversion of the Chapter 11 cases to cases under Chapter
7 of the Bankruptcy Code.
Additionally, given that the Sale has not closed, the Debtors
submit that extension of the exclusive periods is necessary and
warranted for them to retain optionality in the event it becomes
appropriate to explore alternative restructuring strategies,
including a potential plan of reorganization.
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., at Cahill Gordon & Reindel LLP serve as the Debtors' lead
counsel. Lee E. Kaufman, Esq., and Mark D. Collins, Esq., 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
$318 million in assets and $323 million 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.
STATION CASINOS: Moody's Affirms 'B3' CFR/PDR; Outlook Positive
---------------------------------------------------------------
Moody's Investors Service affirmed Station Casinos LLC's B3
Corporate Family and Probability of Default ratings and changed
the rating outlook to positive from stable. Moody's also assigned
a B2 rating to NP Opco, LLC's, proposed $200 million, five year,
revolving credit facility and $575 million, seven year term loan
facility. Opco is a wholly owned subsidiary of Station Casinos
LLC.
Proceeds from the proposed facilities will be used to refinance
Opco's existing debt as well as the existing debt of Station GVR
Acquisition LLC (B3, stable). In addition to Opco's existing pool
of collateral, the new Opco bank facilities will now include the
assets of Station GVR Acquisition LLC as the proposed refinancing
is designed to fold these assets into the existing Opco financing
structure. If the transaction closes, Moody's will withdraw all of
the existing ratings of Station GVR Acquisition LLC.
The outlook revision to positive reflects Moody's expectation that
Station's operating margins -- already up about 300 basis points
on a year-over-year basis through June 30, 2012 -- will increase
further, and that the company will apply a substantial portion of
its free cash flow towards further debt reduction. Station has
reduced its consolidated debt by about $270 million (approximately
12% of the company's total consolidated debt) since emerging from
bankruptcy in June 2011. Pro-forma for the approximate $150
million pay down from collection of a development receivable and
the proposed financing, consolidated debt-to-EBITDA is about 7.3
times. This compares favorably to Station's consolidated debt-to-
EBITDA of 9.3 times at December 31, 2011 and 7.6 times at June 30,
2012.
Station's ratings could be raised if the company reduces its
consolidated debt-to-EBITDA to 6.0 times and maintains its good
liquidity profile. Same store earnings growth along with
additional management fee income from Graton could enable Station
to meet this target by year-end 2014. Station's outlook could be
revised back to stable if monthly gaming revenues in the Las Vegas
locals market begin to trend down, if local economic conditions
show signs of renewed stress, if consolidated debt to EBITDA
increases to 8.0 times, and/or liquidity deteriorates for any
reason.
Ratings Rationale
Station's B3 rating reflects high leverage, heavy revenue and
earnings concentration in the Las Vegas Locals market, and Moody's
expectation of slow recovery prospects for that market. Positive
rating consideration is given to Station's relaxed debt maturity
profile -- there are no material long-term debt maturities until
2016 -- limited capital expenditure plans, and good interest
coverage. Moody's expects that Station's EBITDA-to-cash interest ,
currently at about 3.0 times, will improve further through a
combination of modest earnings growth and debt reduction. These
factors differentiate the company from some of its rated peers
that face significant debt maturities, higher relative debt costs,
and significant cash outlays related to development projects.
Upon completion of this proposed refinancing, Station's capital
structure will be comprised of three (instead of four) separate
unrestricted subsidiary borrowing entities. Moody's ratings are
based upon a consolidated assessment of Station Casinos LLC,
because the company is managed by one board of directors and one
management team and will file consolidated financial statements
with the SEC.
Ratings assigned:
NP Opco LLC:
$200 million secured revolving credit facility due 2017 at B2
(LGD 3, 38%)
$575 million secured term loan due 2019 at B2 (LGD 3, 38%)
Ratings affirmed and assessments updated:
Station Casinos LLC:
Corporate Family Rating at B3
Probability of Default Rating at B3
$125 million senior secured revolver due 2016 at B2 (LGD 3, 38%
from LGD 3, 34%)
$200 million senior secured term loan B-1 due 2016 at B2 (LGD
3, 38% from LGD 3, 34%)
$750 million senior secured term loan B-2 due 2016 at B2 (LGD
3, 38% from LGD 3, 34%)
$625 million senior unsecured notes due 2018 at Caa2 (LGD 6,
90% from LGD 5, 87%)
Rating to be withdrawn upon transaction close:
NP Opco, LLC ("Opco")
$25 million senior secured revolver due 2016 at B2 (LGD 3, 34%)
Approximately $410 million senior secured term loan due 2016 at
B2 (LGD 3, 34%)
Station GVR Acquisition LLC
CFR and Probability of Default rating at B3
$215 million term loan due 2016 at B2 (LGD 3, 36%)
$10 million first lien revolver due 2016 at B2 (LGD 3, 36%)
$85 million second lien term loan due 2017 at Caa2 (LGD 5, 89%)
The principal methodology used in rating Station Casinos, LLC was
the Global Gaming Industry Methodology published in December 2009.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.
Station Casinos, LLC wholly owns and operates 14 gaming and
entertainment facilities all located in Las Vegas, Nevada. The
company also holds 50% joint venture interests in three casinos
and manages Gun Lake Casino in Michigan on behalf of the Match-E-
Be-Nash-She-Wish Band of Pottawatomi Indians pursuant to a seven
year contract that expires in 2018. Station Casinos LLC was formed
for the purpose of acquiring the assets of Station Casinos, Inc.
and its subsidiaries pursuant to the Bankruptcy Court order on
8/27/2010 confirming the plan of reorganization. Station also
acquired the assets of Green Valley Ranch Resort Spa & Casino. The
company emerged from bankruptcy on June 17, 2011.
STATION CASINOS: S&P Gives 'B+' Rating on $775M Sr. Secured Credit
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'B+'
issue-level rating to Station Casinos LLC (Station) subsidiaries
NP Opco LLC (Opco) and Station GVR Acquisition LLC's (GVR)
proposed $775 million senior secured credit facility. "We also
assigned this debt our preliminary recovery rating of '2',
indicating our expectation of substantial (70% to 90%) recovery
for lenders in the event of a payment default. Our preliminary
ratings are subject to our review of final documentation. The
proposed facility consists of a $200 million senior secured
revolving credit facility due 2017 and a $575 million senior
secured term loan due 2019. The company expects to use proceeds
from the issuance to repay its existing credit facilities at Opco
and GVR. As part of the proposed transaction Station plans to
merge GVR into Opco. However, until regulatory approvals are
granted, GVR and Opco will be co-borrowers under the proposed
credit agreement," S&P said.
"In addition, Station recently received approximately $194 million
as partial repayment of advances it made to the Federal Indians of
Graton Rancheria. Station estimates that after-tax proceeds of
approximately $154 million will be used to reduce the principal
amount outstanding under the company's Opco credit facility and
approximately $30 million will be used to repay the B-1 tranche of
Station's Propco credit facility," S&P said.
"The lower debt balances result in improved recovery prospects for
Opco's term loan and Station's Propco secured credit facilities,"
said S&P's credit analyst Michael Halchak. "Consequently, we are
revising our recovery rating on the existing Opco term loan to '1'
from '2', and raising our issue-level rating to 'BB-' (two notches
above the corporate credit rating) from 'B+'. Similarly, we are
revising our recovery rating on Station's Propco senior secured
debt to '2' from '3', and raising our issue-level rating to 'B+'
(once notch above the corporate credit rating) from 'B'."
"At the same time, we affirmed our 'B' corporate credit rating on
Station. The rating outlook is stable," S&P said.
"The corporate credit rating reflects our assessment of Station's
business risk profile as 'weak' and our assessment of the
company's financial risk profile as 'highly leveraged,' according
to our criteria. We incorporate the credit quality of the
consolidated Station Casinos LLC portfolio of properties and
assets into our rating despite the fact that different operating
subsidiaries secure different pieces of the capital structure.
Given our perception of the strategic relationships between these
entities and their common management and ownership, we expect
management will make decisions regarding operating and financial
strategies with a view toward the collective group of companies.
We believe that if a payment default were to occur on Station's
credit facilities or notes (the Propco debt) or at one of its
subsidiaries, including NP Opco LLC (Opco) or Station GVR
Acquisition LLC (GVR), management would consider alternatives
regarding the capital structure of the consolidated group, which
would likely include a comprehensive restructuring or a bankruptcy
filing," S&P said.
"The stable rating outlook reflects our expectation that credit
measures will remain at a level in line with the rating over the
intermediate term and that the company will use moderate levels of
free cash flow to repay debt over the next several years. We have
factored an expectation that EBITDA will grow in the high-single-
digit area in 2012 and more modestly in 2013. Under these
performance assumptions, we expect our measure of the company's
adjusted leverage to improve to the low-7x area and believe
interest coverage will remain greater than 2x, both supportive of
the rating," S&P said.
"A downgrade could occur if operating performance is meaningfully
weaker than our current expectations to the extent that EBITDA
coverage of interest weakens to below 1.5x, which would likely be
the result of destabilization in the Las Vegas locals gaming
market as a result of further economic disruption. Our
consideration of a higher rating is unlikely until leverage
improves closer toward 6x, which we do not anticipate in the near
term," S&P said.
SUNDANCE BUSINESS: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Sundance Business Center, LLC
5830 W. Thunderbird Rd.
Suite B8-310
Glendale, AZ 85306
Bankruptcy Case No.: 12-19967
Chapter 11 Petition Date: September 6, 2012
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Charles G. Case II
Debtor's Counsel: Shelton L. Freeman, Esq.
DECONCINI MCDONALD YETWIN & LACY PC
6909 East Main St.
Scottsdale, AZ 85251
Tel: (480) 398-3100
Fax: (480) 398-3101
E-mail: tfreeman@lawdmyl.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Bradley J. Wilcox, manager and member.
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Becker Lane, LLC 12-18011 08/10/12
TBM EQUITIES: Case Summary & 4 Unsecured Creditors
--------------------------------------------------
Debtor: TBM Equities, LLC
919 N Stone Ave Ste 1101
Tucson, AZ 85705
Bankruptcy Case No.: 12-19923
Chapter 11 Petition Date: September 6, 2012
Court: United States Bankruptcy Court
District of Arizona (Tucson)
Judge: Eileen W. Hollowell
Debtor's Counsel: Dennis M. Breen, III, Esq.
BREEN OLSON & TRENTON, LLP
6818 N Oracle Rd Ste 420
Tucson, AZ 85704-4261
Tel: (520) 742-0808
E-mail: dennis@botlawfirm.com
Scheduled Assets: $1,693,099
Scheduled Liabilities: $8,543,123
A copy of the Company's list of its four unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/azb12-19923.pdf
The petition was signed by Tirdad Bozorgmehr, manager.
T.M.B. BUILDERS: Case Summary & 10 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: T.M.B. Builders, LLC
123 Andrew Lane
Reno, NV 89521
Bankruptcy Case No.: 12-52092
Chapter 11 Petition Date: September 5, 2012
Court: U.S. Bankruptcy Court
District of Nevada (Reno)
Judge: Bruce T. Beesley
Debtor's Counsel: Alan R. Smith, Esq.
THE LAW OFFICES OF ALAN R. SMITH
505 Ridge Street
Reno, NV 89501
Tel: (775) 786-4579
E-mail: mail@asmithlaw.com
Scheduled Assets: $1,595,100
Scheduled Liabilities: $8,656,936
A copy of the Company's list of its 10 unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/nvb12-52092.pdf
The petition was signed by Thomas Brown, managing member.
THELEN LLP Trustee Says Ex-Partners Deserve Hardship Settlements
----------------------------------------------------------------
Eric Hornbeck at Bankruptcy Law360 reports that the trustee of
Thelen LLP asked a New York bankruptcy court Friday to greenlight
reduced settlements over pre-collapse compensation with two of its
former partners who met hardship requirements.
Bankruptcy Law360 relates that Thelen's Chapter 7 trustee Yann
Geron of Fox Rothschild LLP said in a motion filed with the court
that the two equity partners had met requirements for reduced
settlements over the trustee's compensation and capital
contribution claims.
About Thelen LLP
Thelen LLP, formerly known as Thelen Reid Brown Raysman & Steiner
-- http://thelen.com/-- is a bicoastal American law firm in
process of dissolution. It was formed as a product between two
mergers between California and New York-based law firms, mostly
recently in 2006. Its headcount peaked at roughly 600 attorneys
in 2006, and had 500 early in 2008, with offices in eight cities
in the United States, England and China.
In October 2008, Thelen's remaining partners voted to dissolve the
firm. As reported by the Troubled Company Reporter on Sept. 22,
2009, Thelen LLP filed for Chapter 7 protection. The filing was
expected due to the timing of a writ of attachment filed by one of
Thelen's landlords, entitling the landlord to $25 million of the
Company's assets. The landlord won approval for that writ in June
2009, but Thelen could void the writ by filing for bankruptcy
within 90 days of that court ruling. Thelen, according to AM Law
Daily, has repaid most of its debt to its lending banks.
TUSKEENA GREENVILLE: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Tuskeena Greenville Center, LLC
P.O. Box 2169
Ponte Vedra Beach, FL 32004
Bankruptcy Case No.: 12-13734
Chapter 11 Petition Date: September 5, 2012
Court: U.S. Bankruptcy Court
Northern District of Mississippi (Aberdeen)
Debtor's Counsel: Jeffrey A. Levingston, Esq.
LEVINGSTON & LEVINGSTON, P.A.
P.O. Box 1327
Cleveland, MS 38732
Tel: (662) 843-2791
E-mail: jleving@bellsouth.net
Scheduled Assets: $7,550,372
Scheduled Liabilities: $7,167,489
The Company's list of its largest unsecured creditors filed with
the petition does not contain any entry.
The petition was signed by Chris White, pres. SECRIC, managing
member.
ULTIMATE PRINT: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Ultimate Print Source, Inc.
dba Printing 4Him
2070 S. Hellman Ave.
Ontario, CA 91761
Bankruptcy Case No.: 12-30633
Chapter 11 Petition Date: September 6, 2012
Court: United States Bankruptcy Court
Central District of California (Riverside)
Judge: Scott C. Clarkson
Debtor's Counsel: Stephen W. Johnson, Esq.
LAW OFFICE OF STEPHEN W JOHNSON
23046 Avenida de la Carlota 6th Flr
Laguna Hills, CA 92653
Tel: (949) 813-0636
Fax: (949) 768-5001
E-mail: swjohnsonlaw@yahoo.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/cacb12-30633.pdf
The petition was signed by Jeffrey Ferrazzano, president.
UNIVERSAL GROUND: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Universal Ground Services & Construction Company, Inc.
Attn: Michael D. Harding, PE
5005 Jennifer Place
Orlando, FL 32807
Bankruptcy Case No.: 12-13774
Chapter 11 Petition Date: September 8, 2012
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Buddy D. Ford, Esq.
115 N. MacDill Avenue
Tampa, FL 33609-1521
Tel: (813) 877-4669
Fax: (813) 877-5543
E-mail: Buddy@tampaesq.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Michael D. Harding, PE, court appointed
receiver.
VALENCE TECHNOLOGY: U.S. Trustee Forms Creditors Committee
----------------------------------------------------------
The United States Trustee for Region 7 has appointed five
creditors to the Committee of Unsecured Creditors in the
bankruptcy case of Valence Technology, Inc.
1. Amperex Technology Limited
Attn: Ms. Shandy Leung
3503 Wharf Cable TV Tower
9 Hoi Shing Road
Tsuen Wan
Hong Kong
2. Insight Direct, USA
Attn: Michael L. Walker
6820 S. Harl Ave.
Tempe AZ 85283
3. NPI Technologies.com
Attn: Huy Thai
1241 N. Plano Rd.
Richardson, TX 75081
4. Tianjin Lishen Battery Joint Stock Co., Ltd.
Attn: Kevin Wang
6 Lanyuan Road
Huayuan Hi-Tech Industrial Park
Tianjin 300384
Peoples Republic of China
5. Carl E. Warden
15165 Country Club Dr.
Los Altos, CA 94024
About Valence Technology
Valence Technology, Inc., filed a Chapter 11 petition (Bankr. W.D.
Tex. Case No. 12-11580) on July 12, 2012, in its hometown in
Austin, Texas. Founded in 1989, Valence develops lithium iron
magnesium phosphate rechargeable batteries. Its products are used
in hybrid and electric vehicles, as well as hybrid boats and
Segway personal transporters.
The Debtor disclosed debt of $82.6 million and assets of
$31.5 million as of March 31, 2012. It owes $35 million in loans
to affiliates of Chairman Carl E. Berg, about $34 million in
interest on those loans, and $3 million on a third-party loan.
The company also owes about $9 million on two series of
convertible preferred stock held by Berg affiliates and has $11
million in trade debt and accrued expenses. Mr. Berg and related
entities own 44.4% of the shares. ClearBridge Advisors, LLC owns
5.5%.
Valence expects to complete its restructuring during 2012.
Judge Craig A. Gargotta presides over the case. The Company is
being advised by Streusand, Landon & Ozburn, LLP with respect to
bankruptcy matters. The petition was signed by Robert Kanode,
CEO.
VALENCE TECHNOLOGY: Court Approves William Patterson as CRO
-----------------------------------------------------------
The Bankruptcy Court authorized Valence Technology, Inc., to
employ William R. Patterson at Bridgepoint Consulting, LLC, as its
chief restructuring officer, nunc pro tunc to the Petition Date.
Mr. Patterson will, among other things, perform a financial review
of the Debtor, including an assessment of financial information
pertaining to the Debtor's assets, liabilities, cash flows,
financial statements, budgets, and projections. Bridgepoint
Consulting will be compensated at these hourly rates: CRO
$300; Additional Personnel $60-$350.
About Valence Technology
Valence Technology, Inc., filed a Chapter 11 petition (Bankr. W.D.
Tex. Case No. 12-11580) on July 12, 2012, in its hometown in
Austin, Texas. Founded in 1989, Valence develops lithium iron
magnesium phosphate rechargeable batteries. Its products are used
in hybrid and electric vehicles, as well as hybrid boats and
Segway personal transporters.
The Debtor disclosed debt of $82.6 million and assets of
$31.5 million as of March 31, 2012. It owes $35 million in loans
to affiliates of Chairman Carl E. Berg, about $34 million in
interest on those loans, and $3 million on a third-party loan.
The company also owes about $9 million on two series of
convertible preferred stock held by Berg affiliates and has $11
million in trade debt and accrued expenses. Mr. Berg and related
entities own 44.4% of the shares. ClearBridge Advisors, LLC owns
5.5%.
Valence expects to complete its restructuring during 2012.
Judge Craig A. Gargotta presides over the case. The Company is
being advised by Streusand, Landon & Ozburn, LLP with respect to
bankruptcy matters. The petition was signed by Robert Kanode,
CEO.
VALENCE TECHNOLOGY: Taps Steve Grimshaw as Chapter 11 Consultant
----------------------------------------------------------------
Valence Technology, Inc., seeks permission from the Bankruptcy
Court to engage VirtualCFO, Inc., and designate Steve Grimshaw as
its Chapter 11 consultant effective nunc pro tunc to Aug. 17,
2012. Mr. Grimshaw will assist the Debtor in its post-petition
restructuring efforts.
Mr. Grimshaw is an accomplished professional with more than 30
years' experience. He has worked in key strategic, change-
implementation and operating performance roles as Consultant, CEO
and CFO of various pubic and private companies in a diverse range
of industries. He also has extensive experience working with
bankruptcy and turnaround situations. Mr. Grimshaw is a Fellow of
the Institute of Chartered Accountants in England and Wales, and
he graduated from the London School of Economics and Political
Science, University of London.
Mr. Grimshaw will, among other things:
(i) assist with due diligence and disclosure requirements for
debtor-in-possession financing;
(ii) assist in refinements to the Debtor's business plan,
financial forecasts, and other expense reduction and
restructuring initiatives; and
(iii) analyze, develop, and implement the Debtor's operational
and financial restructuring plans.
To the best of Debtor's knowledge, Mr. Grimshaw is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The Debtor proposes to pay vcfo for the services of Grimshaw at
the hourly billing rate of $275. At the Debtor's discretion, that
hourly rate is subject to adjustment following the first 30 days
of the engagement, up to a maximum hourly rate of $300. The
Debtor is not proposing to pay a retainer, and there is no
severance payment or advance notice of termination required under
the Engagement Agreement.
The Debtor also seeks authority to defend and indemnify vcfo
against any claims arising out of this engagement.
About Valence Technology
Valence Technology, Inc., filed a Chapter 11 petition (Bankr. W.D.
Tex. Case No. 12-11580) on July 12, 2012, in its hometown in
Austin, Texas. Founded in 1989, Valence develops lithium iron
magnesium phosphate rechargeable batteries. Its products are used
in hybrid and electric vehicles, as well as hybrid boats and
Segway personal transporters.
The Debtor disclosed debt of $82.6 million and assets of
$31.5 million as of March 31, 2012. It owes $35 million in loans
to affiliates of Chairman Carl E. Berg, about $34 million in
interest on those loans, and $3 million on a third-party loan.
The company also owes about $9 million on two series of
convertible preferred stock held by Berg affiliates and has $11
million in trade debt and accrued expenses. Mr. Berg and related
entities own 44.4% of the shares. ClearBridge Advisors, LLC owns
5.5%.
Valence expects to complete its restructuring during 2012.
Judge Craig A. Gargotta presides over the case. The Company is
being advised by Streusand, Landon & Ozburn, LLP with respect to
bankruptcy matters. The petition was signed by Robert Kanode,
CEO.
VALENCE TECHNOLOGY: Court OKs Streusand Landon as Attorneys
-----------------------------------------------------------
The Bankruptcy Court authorized Valence Technology, Inc., to
employ Streusand, Landon & Ozburn, LLP, as its attorneys, nunc pro
tunc to the Petition Date.
Streusand Landon will, among other things, take necessary actions
to protect and preserve the estate of the Debtor, including the
prosecution of actions on the Debtor's behalf, the defense of any
action commenced against the Debtor, the negotiation of disputes
in which the Debtor is involved, and the preparation of objections
to claims filed against the Debtor's estate, for these hourly
rates:
Sabrina L. Streusand, Partner $440
G. James Landon, Partner $390
Christopher Ozburn, Partner $450
Seth E. Meisel, Associate $325
Richard D. Villa, Associate $280
Arlana L. Prentice, Paralegal $175
Linda Thompson, Paralegal $175
About Valence Technology
Valence Technology, Inc., filed a Chapter 11 petition (Bankr. W.D.
Tex. Case No. 12-11580) on July 12, 2012, in its hometown in
Austin, Texas. Founded in 1989, Valence develops lithium iron
magnesium phosphate rechargeable batteries. Its products are used
in hybrid and electric vehicles, as well as hybrid boats and
Segway personal transporters.
The Debtor disclosed debt of $82.6 million and assets of
$31.5 million as of March 31, 2012. It owes $35 million in loans
to affiliates of Chairman Carl E. Berg, about $34 million in
interest on those loans, and $3 million on a third-party loan.
The company also owes about $9 million on two series of
convertible preferred stock held by Berg affiliates and has $11
million in trade debt and accrued expenses. Mr. Berg and related
entities own 44.4% of the shares. ClearBridge Advisors, LLC owns
5.5%.
Valence expects to complete its restructuring during 2012.
Judge Craig A. Gargotta presides over the case. The Company is
being advised by Streusand, Landon & Ozburn, LLP with respect to
bankruptcy matters. The petition was signed by Robert Kanode,
CEO.
VANDERRA RESOURCES: Files for Chapter 11 in Texas
-------------------------------------------------
Vanderra Resources, LLC, filed a bare-bones Chapter 11 petition
(Bankr. N.D. Tex. Case No. 12-45137) in Fort Worth, Texas, on
Sept. 9, 2012. The Debtor estimated assets and debts of at least
$10 million.
VANDERRA RESOURCES: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Vanderra Resources, LLC
2525 Ridgmar Blvd.
Suite 200
P.O. Box 122448
Fort Worth, TX 76121
Bankruptcy Case No.: 12-45137
Chapter 11 Petition Date: September 9, 2012
Court: United States Bankruptcy Court
Northern District of Texas (Ft. Worth)
Judge: D. Michael Lynn
Debtor's Counsel: Davor Rukavina, Esq.
MUNSCH, HARDT, KOPF & HARR
500 N. Akard Street, Ste 3800
Dallas, TX 75201-6659
Tel: (214) 855-7587
Fax: (214) 978-5359
E-mail: drukavina@munsch.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by George Langis, president and chief
operating officer.
The Debtor did not file its list of largest unsecured creditors
when it filed its petition.
VITRO SAB: Asks Appellate Court to Reverse and Enforce Plan
-----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Vitro SAB filed the last set of papers designed to
persuade an appellate court that the bankruptcy judge was mistaken
in June when he refused to enforce the glassmaker's reorganization
plan approved by a court in Mexico.
According to the report, holders of 60% of Vitro's $1.2 billion in
defaulted bonds argued successfully to the bankruptcy judge in
Dallas that the Mexican plan wasn't worthy of enforcement in the
U.S. because it reduced guarantees on the bonds by subsidiaries
that weren't in bankruptcy anywhere. The bondholders filed papers
last month with the U.S. Court in Appeals in New Orleans, arguing
that the court process in Mexico "was completely inimical to the
most basic elements of fairness."
The report relates that Vitro, in its reply brief filed Sept. 7,
noted how the bankruptcy court "rejected" the idea that the
Mexican process was fraught with "fraud, corruption, and
unfairness." Vitro argued in its latest papers that the "plain
language" of the Bankruptcy Code requires enforcement of the
Mexican plan in the U.S. The glassmaker said that the bondholders
"are really asking this court to protect them from the decision of
the Mexican court simply because they lost there."
The report notes that the appeal will be argued during the first
week of October to a panel of three judges on the Fifth Circuit in
New Orleans. Even if Vitro wins the October appeal, the company
must also deal with a separate defeat suffered in late August at
the hands of a U.S. district judge in Dallas. Last month, the
bondholders won when the district judge ruled that the bankruptcy
court erred in April 2011 by not putting 10 Vitro subsidiaries
into bankruptcy involuntarily.
The Bloomberg report discloses that defeated in courts in Mexico,
the bondholders won their victory in the Vitro parent's Chapter 15
case in Dallas.
The appeal in the Circuit Court is Vitro SAB de CV v. Ad Hoc Group
of Vitro Noteholders (In re Vitro SAB de CV), 12-10689, U.S. 5th
Circuit Court of Appeals (New Orleans). The suit in bankruptcy
court where the judge decided not to enforce the Mexican
reorganization in the U.S. is Vitro SAB de CV v. ACP
Master Ltd. (In re Vitro SAB de CV), 12-03027, U.S. Bankruptcy
Court, Northern District Texas (Dallas). The bondholders'
previous appeal in the circuit court is Ad Hoc Group of Vitro
Noteholders v. Vitro SAB de CV (In re Vitro SAB de CV), 11-11239,
U.S. 5th Circuit Court of Appeals (New Orleans). The bondholders'
appeal of Chapter 15 recognition in district court is Ad Hoc Group
of Vitro Noteholders v. Vitro SAB de CV (In re Vitro SAB de CV),
11-02888, U.S. District Court, Northern District Texas (Dallas).
About Vitro SAB
Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.
Vitro is the largest manufacturer of glass containers and flat
glass in Mexico, with consolidated net sales in 2009 of MXN23,991
million (US$1.837 billion).
Vitro defaulted on its debt in 2009, and sought to restructure
around US$1.5 billion in debt, including US$1.2 billion in notes.
Vitro launched an offer to buy back or swap US$1.2 billion in
debt from bondholders. The tender offer would be consummated
with a bankruptcy filing in Mexico and Chapter 15 filing in the
United States. Vitro said noteholders would recover as much as
73% by exchanging existing debt for cash, new debt or convertible
bonds.
Concurso Mercantil & Chapter 15 Proceedings
Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a
pre-packaged Concurso Plan in the Federal District Court for
Civil and Labor Matters for the State of Nuevo Leon, commencing
its voluntary concurso mercantil proceedings -- the Mexican
equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB
also commenced parallel proceedings under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan
on Dec. 13, 2010, to seek U.S. recognition and deference to its
bankruptcy proceedings in Mexico.
Early in January 2011, the Mexican Court dismissed the Concurso
Mercantil proceedings. But an appellate court in Mexico
reinstated the reorganization in April 2011. Following the
reinstatement, Vitro SAB on April 14, 2011, re-filed a petition
for recognition of its Mexican reorganization in U.S. Bankruptcy
Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754).
The Vitro parent received sufficient acceptances of its
reorganization by using the US$1.9 billion in debt owing to
subsidiaries to vote down opposition by bondholders. The holders
of US$1.2 billion in defaulted bonds opposed the Mexican
reorganization plan because shareholders could retain ownership
while bondholders aren't being paid in full.
Vitro announced in March 2012 that it has implemented the
reorganization plan approved by a judge in Monterrey, Mexico.
In the present Chapter 15 case, the Debtor seeks to block any
creditor suits in the U.S. pending the reorganization in Mexico.
Chapter 11 Proceedings
A group of noteholders opposed the exchange -- namely Knighthead
Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc.,
Davidson Kempner Distressed Opportunities Fund LP, and Brookville
Horizons Fund, L.P. Together, they held US$75 million, or
approximately 6% of the outstanding bond debt. The Noteholder
group commenced involuntary bankruptcy cases under Chapter 11 of
the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D.
Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010.
Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation
counsel to analyze the potential rights that Vitro may exercise
in the United States against the ad hoc group of dissident
bondholders and its advisors.
A larger group of noteholders, known as the Ad Hoc Group of Vitro
Noteholders -- comprised of holders, or investment advisors to
holders, which represent approximately US$650 million of the
Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not
among the Chapter 11 petitioners, although the group has
expressed concerns over the exchange offer. The group says the
exchange offer exposes Noteholders who consent to potential
adverse consequences that have not been disclosed by Vitro. The
group is represented by John Cunningham, Esq., and Richard
Kebrdle, Esq. at White & Case LLP.
A bankruptcy judge in Fort Worth, Texas, denied involuntary
Chapter 11 petitions filed against four U.S. subsidiaries. On
April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro
America LLC and three other U.S. subsidiaries -- that were
subject to the involuntary petitions into voluntary Chapter 11.
The Texas Court on April 21 denied involuntary petitions against
the eight U.S. subsidiaries that didn't consent to being in
Chapter 11.
Kurtzman Carson Consultants is the claims and notice agent to
Vitro America, et al. Alvarez & Marsal North America LLC, is the
Debtors' operations and financial advisor.
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Vitro America, et al., has selected Sarah
Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in
Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq.,
and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP,
in New York, as counsel. Blackstone Advisory Partners L.P.
serves as financial advisor to the Committee.
The U.S. Vitro companies sold their assets to American Glass
Enterprises LLC, an affiliate of Sun Capital Partners Inc., for
US$55 million.
U.S. subsidiaries of Vitro SAB are having their cases converted
to liquidations in Chapter 7, court records in January 2012 show.
In December, the U.S. Trustee in Dallas filed a motion to convert
the subsidiaries' cases to liquidations in Chapter 7. The
Justice Department's bankruptcy watchdog said US$5.1 million in
bills were run up in bankruptcy and hadn't been paid.
On June 13, 2012, U.S. Bankruptcy Judge Harlin "Cooter" Hale in
Dallas entered a ruling that precluded Vitro from enforcing
its Mexican reorganization plan in the U.S. The judge ruled that
the Mexican reorganization was "manifestly contrary" to U.S.
public policy because it bars the bondholders from holding Vitro
operating subsidiaries liable to pay on their guarantees of the
bonds. The Mexican plan reduced the debt of subsidiaries on $1.2
billion in defaulted bonds even though they weren't in bankruptcy
in any country.
W.R. GRACE: Delays Disappoint Shareholders, Creditors
-----------------------------------------------------
Peg Brickley at Dow Jones' Daily Bankruptcy Review reports that
W.R. Grace & Co.'s stock took a brief tumble last week on word the
specialty-chemical company could be forced to sit in bankruptcy
for more months, perhaps years, waiting out the final legal
actions in a decade-plus Chapter 11 proceeding.
About W.R. Grace
Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA)
-- http://www.grace.com/-- supplies catalysts and silica
products, especially construction chemicals and building
materials, and container products globally.
The company and its debtor-affiliates filed for chapter 11
protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139).
David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura
Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP,
represent the Debtors in their restructuring efforts. The Debtors
hired Blackstone Group, L.P., for financial advice.
PricewaterhouseCoopers LLP is the Debtors' accountant.
Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent
the Official Committee of Unsecured Creditors. The Creditors
Committee tapped Capstone Corporate Recovery LLC for financial
advice. David T. Austern, the legal representative of future
asbestos personal injury claimants, is represented by Orrick
Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA.
Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla
R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official
Committee of Asbestos Personal Injury Claimants. The Asbestos
Committee of Property Damage Claimants tapped Scott Baena, Esq.,
and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod,
LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel, LLP, represents the Official Committee of
Equity Security Holders.
W.R. Grace obtained confirmation of a plan co-proposed with the
Official Committee of Asbestos Personal Injury Claimants, the
Official Committee of Equity Security Holders, and the Asbestos
Future Claimants Representative. The Chapter 11 plan is built
around an April 2008 settlement for all present and future
asbestos personal injury claims, and a subsequent settlement for
asbestos property damage claims. Implementation of the Plan has
been held up by appeals in District Court from various parties,
including a group of prepetition bank lenders and the Official
Committee of Unsecured Creditors.
District Judge Ronald Buckwalter on Jan. 31, 2012, entered an
order affirming the bankruptcy court's confirmation of W.R. Grace
& Co. and its debtor affiliates' Plan of Reorganization.
Bankruptcy Judge Judith Fitzgerald had approved the Plan on
Jan. 31, 2011.
On April 20, 2012, the company filed a motion with the Bankruptcy
Court to approve definitive agreements among itself, co-proponents
of the Plan, BNSF railroad, several insurance companies and the
representatives of Libby asbestos personal injury claimants, to
settle objections to the Plan. Pursuant to the agreements, the
Libby claimants and BNSF would forego any further appeals to the
Plan.
Bankruptcy Creditors' Service, Inc., publishes W.R. Grace
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
WAGSTAFF MINNESOTA: Sale of Remaining KFC Stores in Process
-----------------------------------------------------------
Wagstaff Minnesota, Inc., et al., are in the process of selling
remaining stores as part of a stipulation with KFC Corporation.
The bankruptcy court last month signed off on a stipulation among
the Debtors, the Official Committee of Unsecured Creditors,
entities related to General Electric Capital Corp., and units of
Perella Weinberg Partners, which allowed the Debtors to continue
using cash collateral until Aug. 25, 2012. As of Sept. 10, the
parties have not submitted a stipulation extending the Debtors'
access to cash collateral.
The Aug. 9, 2012 document that outlined the terms of the Debtors'
access to cash from July 29 until Aug. 25 said that the parties
are negotiating a further stipulation for the continued use of
cash collateral for the time period after Aug. 25, and the budget
related thereto.
When sought for clarification whether a new stipulation has been
reached by the parties, counsel to the Debtor, Scott F. Gautier,
Esq., at Peitzman Weg LLP, clarified that the Debtor still has
access to cash.
"The Debtor has the authority to use cash in its ordinary course
of business," Mr. Gautier said in a message to the Troubled
Company Reporter.
Mr. Gautier also confirmed that the Debtor intends to file a
Chapter 11 plan before the exclusive period to propose a plan
expires Oct. 30.
The Debtor said in prior court filings that the company is
commencing a sale process of the restaurants and properties
pursuant to a settlement with KFC.
Mr. Gautier told the TCR, "The sale process is in process and it
is anticipated that there will be filings covering sales of all
remaining stores in the coming month."
Counsel to the Debtor can be reached at:
Scott F. Gautier, Esq.
Tania M. Moyron, Esq.
Kathryn F. Russo, Esq.
PEITZMAN WEG LLP
2029 Century Park East, Suite 3100
Los Angeles, CA 90067
Tel: (310) 552-3100
Fax: (310) 552-3101
E-mail: sgautier@peitzmanweg.com
tmoyron@peitzmanweg.com
krusso@peitzmanweg.com
GE Capital is represented by:
Susan G. Boswell, Esq.
QUARLES & BRADY LLP
One South Church Avenue, Suite 1700
Tucson, AZ 85701
Tel: (520) 770-8713
Fax: (520) 770-2222
- and -
Ralph V. Mitchell, Esq.
LAPP, LIBRA, THOMSON, STOEBNER, & PUSCH, CHARTERED
One Financial Plaza, Suite 2500
120 South Sixth Street
Minneapolis, MN 55402
Tel: (612) 338-5815
Fax: (612) 338-6651
Perella Weinberg is represented by:
Brian I. Swett, Esq.
Myja Kjaer, Esq.
WINSTON & STRAWN LLP
35 West Wacker Drive
Chicago, IL 60601
Tel: (312) 558-5600
Fax: (312) 558-5700
- and -
Steven W. Meyer, Esq.
Rebecca G. Sluss, Esq.
OPPENHEIMER WOLFF & DONNELLY LLP
3300 Plaza VII
45 South Seventh Street
Minneapolis, MN 55402
Tel: (612) 607-7000
Fax: (612) 607-7100
About Wagstaff Properties
Hanford, California-based Wagstaff Properties LLC and its debtor-
affiliates filed for Chapter 11 protection (Bankr. D. Minn. Case
No. 11-43074) on April 30, 2011. The cases are jointly
administered with Wagstaff Minnesota, Inc. (Case No. 11-43073).
Bankruptcy Judge Nancy C. Dreher presides over the cases.
Fredrikson & Byron, PA, and Peitzman Weg & Kempinsky LLP,
represent the Debtors in their restructuring efforts. Alvarez &
Marsal North America LLC serves as the Debtors' financial advisor.
Trinity Capital, LLC and its affiliated broker-dealer, BWK Trinity
Capital Securities LLC, serve as the Debtors' investment banker
with respect to a sale of their assets. Epiq Bankruptcy Solutions
LLC provides administrative, noticing and balloting services.
Wagstaff Properties estimated assets and liabilities at
$10 million to $50 million.
On June 8, 2011, the U.S. Trustee appointed three member to the
Official Committee of Unsecured Creditors in the Debtors' cases.
Freeborn & Peters LLP and Lommen, Abdo, Cole, King & Stageberg
P.A. serve as the Committee's counsel.
WECHSLER & CO: Has 50% Plan; Disclosures Hearing Nov. 1
-------------------------------------------------------
Wechsler & Co., Inc., is scheduled to appear in bankruptcy court
on Nov. 1, 2012 at 10:00 a.m. to seek approval of the disclosure
statement explaining its proposed Chapter 11 liquidating plan.
The Debtor was targeting an October confirmation hearing for its
bankruptcy-exit plan. The Debtor will commence solicitation of
votes on the Plan and schedule a plan confirmation hearing upon
approval of the disclosure statement.
In the disclosure statement filed late last month, Weschler said
it has remained cash flow positive throughout the course of the
Chapter 11 case.
Except for the general unsecured claims, all payments contemplated
under the Plan will be made from the plan distribution fund. The
fund will be comprised of the net recovery from the liquidation of
the Debtor's illiquid investment portfolio, after payment of
reasonable costs and expenses.
According to the Disclosure Statement, New York State Department
of Taxation and Finance, holder of a secured/priority claim of
$12,031,184, is impaired and will receive 84.6% of the plan
distribution fund, in cash. Holders of general unsecured claims
other than Norman Wechsler will receive, in cash, 50% of their
allowed claims on the effective date. Mr. Wechsler has agreed to
subordinate his unsecured claim against the Debtor. Mr.
Wechsler's equity interest is unimpaired, and he will retain his
equity interest in the Debtor on the effective date of the Plan.
The Debtor provided a status of its illiquid investment portfolio:
1. IntelliCorp:
- Continued progress with major software company ? potential
acquirer. Reseller and OEM agreements signed. First revenue
(small) in December 2011 quarter, revenues lower than
expected thus far, but strong interest in products, and
possible acquisition. Discussions begun with another major
software and service company.
- FY 2012 small operating profit and net loss. Revenues $5.7
million
- New product releases this year with added functionality.
Working on totally new product with partner that could be
game-changer.
2. Permlight:
- M&A: No progress and no current discussions.
- 2011: $1 million loss on lower revenues of $8.1 million.
Constrained by lack of working capital.
- New CEO and VP Sales show promise.
3. RAVE:
- No current M & A activity except initial discussion for
possible acquisitions. Completed small acquisition in 2010.
- 2011 results: Revenues Net income EBITDA
-------- ---------- ------
$23.0 mil $3.6 mil $6.4 mil
- 2012 AOP $27.8 mil $8.6 mil $12.5 mil
Currently on plan.
The Debtor believes that if given a reasonable amount of time,
i.e., approximately 18 months, some of these investments will
yield significant returns to the estate, although no results can
be guaranteed at this time.
A copy of the Disclosure Statement is available for free at:
http://bankrupt.com/misc/Wechsler_Co_DS_082712.pdf
About Wechsler & Co., Inc.
Mount Kisco, New York-based Wechsler & Co., Inc., is a private
investment firm that invests in both public and privately held
companies. The Company filed for Chapter 11 protection (Bankr.
S.D.N.Y. Case No. 10-23719) on Aug. 18, 2010. Jonathan S.
Pasternak, Esq., at Rattet, Pasternak & Gordon Oliver, LLP,
assists the Debtor in its restructuring effort. The Debtor
estimated assets and debts at $10 million to $50 million as of the
Petition Date.
WESTERN FINANCIAL PLANNING: Court Appoints Receiver
---------------------------------------------------
The Securities and Exchange Commission announced an asset freeze
against a San Diego-based firm and its owner accused of running a
real estate investment fraud that raised approximately $50 million
from hundreds of investors nationwide.
The SEC alleges that Western Financial Planning Corporation and
Louis V. Schooler sold units in partnerships that Western had
organized to buy vacant land in Nevada and hold for sale at a
profit at a later date. Schooler and Western failed to tell
investors that they were paying an exorbitant mark-up on the land,
in some cases more than five times its fair market value.
Schooler and Western also failed to tell investors that the land
held by the partnerships was often encumbered by mortgages that
Western used to help finance the initial purchase of the land.
"Schooler conned hundreds of people into investing with Western by
leading them to believe that they were getting a good value for
plots of vacant land," said Michele Wein Layne, Director of the
SEC's Los Angeles Regional Office. "What he didn't tell them was
that the land was worth only a small fraction of their investment
and that he was profiting at their expense."
The SEC's complaint filed in federal court in San Diego alleges
that Western and Schooler misled investors since 2007 by providing
them with comparative prices or "comps" of supposedly similar
plots of land that had sold for prices higher than those offered
by Western. In reality, the real estate comps that Schooler and
Western provided were in no way comparable to the land sold by
Western. The SEC also alleges that since the spring of 2011,
Schooler paid "hush money" to silence investors who discovered
they had been defrauded, allowing the scheme to continue.
The Honorable Larry A. Burns for the U.S. District Court for the
Southern District of California yesterday granted the SEC's
request for a temporary restraining order and asset freeze against
Schooler, Western, and all entities under Western's control, and
appointed Thomas C. Hebrank as a temporary receiver over Western
and the entities. Judge Burns has scheduled a court hearing for
Sept. 17, 2012, on the SEC's motion for a preliminary injunction.
The SEC's investigation was conducted by Sara Kalin and Carol Shau
of the Los Angeles Regional Office. Molly White will lead the
SEC's litigation. Ron Warton, Andy Ganguly, Michelle Royston, and
Karol Pollack conducted the SEC examination that prompted the
investigation.
WJO INC: Court Okays Alfred T. Giuliano as Chapter 11 Trustee
-------------------------------------------------------------
Roberta A. DeAngelis, U.S. Trustee for Region 3, sought and
obtained permission from the Hon. Jean K. Fitzsimon of the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania to
appoint Alfred T. Giuliano as Chapter 11 trustee of the bankruptcy
estate of WJO, Inc.
To the best of the U.S. Trustee's knowledge, Mr. Giuliano is a
"disinterested person" within the meaning of 11 U.S.C. Section
101(14) of the Bankruptcy Code.
As reported by the Troubled Company Reporter on June 6, 2012,
secured creditor and party-in-interest Tristate Capital Bank asked
the Court (i) for relief from the automatic stay to enforce all of
its contractual rights against its collateral; or alternatively,
(ii) to appoint a Chapter 11 trustee in the case of WJO, Inc. On
June 16, 2009, Tristate made two loans to the Debtor. The Debtor
executed a Loan and Security Agreement, a Revolving Credit Note
evidencing a revolving credit facility, and a Term Note evidencing
a term loan.
On June 27, 2012, the Court approved the motion for appointment of
a Chapter 11 trustee.
About WJO Inc.
Bristol, Pennsylvania-based WJO, Inc., operates six family
practices located in Newtown, Bristol, Bensalem, Bustleton, South
Philadelphia, and Bethlehem, Pennsylvania and consists of Board
Certified Osteopathic Physicians specializing in Family Medicine.
Prior to the petition date, and to allow the Company to
restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx
III, LP, and East Coast TMR, Inc., were merged into WJO.
WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa.
Case No. 10-19894) on Nov. 15, 2010. The Debtor disclosed
$19,923,802 in assets and $6,805,255 in liabilities as of the
Chapter 11 filing.
Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at
Ciardi Ciardi & Astin, P.C., serve as the Debtor's bankruptcy
counsel. Pond Lehocky Stern Giordano serves as the Debtor's
special counsel to represent it in worker's compensation
proceedings pertaining to the Therapeutic Magnetic Resonance
treatments. Patrick Yun serves as the Debtor's financial advisor.
Attorneys at Keifer & Tsarouhis LLP serve as counsel to the
official committee of unsecured creditors. ParenteBeard LLC
serves as the Committee's accountant and financial advisor.
The United States Trustee has appointed David Knowlton as patient
care ombudsman in the case. The Ombudsman is represented in the
case by Karen Lee Turner, Esq., at Eckert Seamans Cherin &
Mellott, LLC, as counsel.
Tristate Capital Bank, the cash collateral lender, is represented
in the case by lawyers at Benesch Friedlander Coplan & Aronoff
LLP.
On July 3, 2012, Roberta A. DeAngelis, U.S. Trustee for Region 3,
obtained permission from the Hon. Jean K. Fitzsimon of the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania to
appoint Alfred T. Giuliano as Chapter 11 trustee of the bankruptcy
estate of WJO, Inc. Maschmeyer Karalis P.C. serves as the Chapter
11 Trustee's general bankruptcy counsel.
WJO INC: Maschmeyer Karalis Approved as Ch 11 Trustee's Counsel
---------------------------------------------------------------
Alfred T. Giuliano, as Chapter 11 trustee of the bankruptcy estate
of WJO, Inc., sought and obtained permission from the Hon. Jean K.
Fitzsimon of the U.S. Bankruptcy Court for the Eastern District of
Pennsylvania to employ Maschmeyer Karalis P.C. as general
bankruptcy counsel.
MK will, among other things, advise and assist the Chapter 11
Trustee in the negotiation and documentation of the use of cash
collateral and debtor-in-possession financing, debt restructuring
and related transactions, at these hourly rates:
Shareholders $475
Associates $165-$395
Paralegals $120
Aris J. Karalis, Esq., a shareholder at Maschmeyer Karalis,
attested to the Court that the firm is a "disinterested person"
within the meaning of 11 U.S.C. Section 101(14) of the Bankruptcy
Code.
About WJO Inc.
Bristol, Pennsylvania-based WJO, Inc., operates six family
practices located in Newtown, Bristol, Bensalem, Bustleton, South
Philadelphia, and Bethlehem, Pennsylvania and consists of Board
Certified Osteopathic Physicians specializing in Family Medicine.
Prior to the petition date, and to allow the Company to
restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx
III, LP, and East Coast TMR, Inc., were merged into WJO.
WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa.
Case No. 10-19894) on Nov. 15, 2010. The Debtor disclosed
$19,923,802 in assets and $6,805,255 in liabilities as of the
Chapter 11 filing.
Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at
Ciardi Ciardi & Astin, P.C., serve as the Debtor's bankruptcy
counsel. Pond Lehocky Stern Giordano serves as the Debtor's
special counsel to represent it in worker's compensation
proceedings pertaining to the Therapeutic Magnetic Resonance
treatments. Patrick Yun serves as the Debtor's financial advisor.
Attorneys at Keifer & Tsarouhis LLP serve as counsel to the
official committee of unsecured creditors. ParenteBeard LLC
serves as the Committee's accountant and financial advisor.
The United States Trustee has appointed David Knowlton as patient
care ombudsman in the case. The Ombudsman is represented in the
case by Karen Lee Turner, Esq., at Eckert Seamans Cherin &
Mellott, LLC, as counsel.
Tristate Capital Bank, the cash collateral lender, is represented
in the case by lawyers at Benesch Friedlander Coplan & Aronoff
LLP.
On July 3, 2012, Roberta A. DeAngelis, U.S. Trustee for Region 3,
obtained permission from the Hon. Jean K. Fitzsimon of the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania to
appoint Alfred T. Giuliano as Chapter 11 trustee of the bankruptcy
estate of WJO, Inc.
WJO INC: Court Okays Cash Collateral Use Until Sept. 30
-------------------------------------------------------
The Hon. Jean K. Fitzsimon of the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania has authorized Alfred T.
Giuliano, as Chapter 11 trustee of the bankruptcy estate of WJO,
Inc., to continue using cash collateral until Sept. 30, 2012.
As reported by the Troubled Company Reporter on June 8, 2012, the
Debtor intends to use the cash collateral to fund its business
operations. Tristate Capital Bank asserts that it holds valid,
enforceable, and allowable claims against Debtor under a revolving
credit facility with unpaid principal of $3.1 million and under a
term loan with unpaid principal of $820,000.
As adequate protection of the Lender's interest in the Pre-
Petition Collateral and the Cash Collateral, the Trustee grants
the Lender valid and automatically perfected first priority
replacement liens and security interests in and upon all of the
properties and assets of the Debtor. To the extent that the
adequate protection is insufficient to adequately protect the
Lender from diminution of its interest in the pre-petition Cash
Collateral, the Lender is granted a superpriority administrative
expense claim and all of the other benefits and protections
allowable under Sections 503(b) and 507(b) of the U.S. Bankruptcy
Code. The Lender will have a valid and automatically perfected
first priority replacement lien and security interest in the DIP
account (and all other accounts).
About WJO Inc.
Bristol, Pennsylvania-based WJO, Inc., operates six family
practices located in Newtown, Bristol, Bensalem, Bustleton, South
Philadelphia, and Bethlehem, Pennsylvania and consists of Board
Certified Osteopathic Physicians specializing in Family Medicine.
Prior to the petition date, and to allow the Company to
restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx
III, LP, and East Coast TMR, Inc., were merged into WJO.
WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa.
Case No. 10-19894) on Nov. 15, 2010. The Debtor disclosed
$19,923,802 in assets and $6,805,255 in liabilities as of the
Chapter 11 filing.
Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at
Ciardi Ciardi & Astin, P.C., serve as the Debtor's bankruptcy
counsel. Pond Lehocky Stern Giordano serves as the Debtor's
special counsel to represent it in worker's compensation
proceedings pertaining to the Therapeutic Magnetic Resonance
treatments. Patrick Yun serves as the Debtor's financial advisor.
Attorneys at Keifer & Tsarouhis LLP serve as counsel to the
official committee of unsecured creditors. ParenteBeard LLC
serves as the Committee's accountant and financial advisor.
The United States Trustee has appointed David Knowlton as patient
care ombudsman in the case. The Ombudsman is represented in the
case by Karen Lee Turner, Esq., at Eckert Seamans Cherin &
Mellott, LLC, as counsel.
Tristate Capital Bank, the cash collateral lender, is represented
in the case by lawyers at Benesch Friedlander Coplan & Aronoff
LLP.
On July 3, 2012, Roberta A. DeAngelis, U.S. Trustee for Region 3,
obtained permission from the Hon. Jean K. Fitzsimon of the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania to
appoint Alfred T. Giuliano as Chapter 11 trustee of the bankruptcy
estate of WJO, Inc. Maschmeyer Karalis P.C. serves as the Chapter
11 Trustee's general bankruptcy counsel.
WJO INC: Ch 11 Trustee Has OK to Hire Giuliano as Accountant
------------------------------------------------------------
Alfred T. Giuliano, as Chapter 11 trustee of the bankruptcy estate
of WJO, Inc., sought and obtained authorization from the Hon. Jean
K. Fitzsimon of the U.S. Bankruptcy Court for the Eastern District
of Pennsylvania to employ Giuliano Miller & Company, LLC, as
accountant.
GM&C will, among other things:
a. provide a comprehensive review of the Chapter 11
Trustee's financial plan, cost structure, accounting
processes and structure;
b. supervise the Debtor's general accounting function,
including monitoring the Debtor's activities regarding
cash expenditures, receivables collection and projected
cash requirements;
c. review all financial information prepared by the Debtor,
including, but not limited to, financial statements as of
the Petition Date, showing in detail all assets and
liabilities and priority and secured creditors; and
d. assist the Chapter 11 trustee in the formulation of a
plan of reorganization.
GM&C will be paid at these hourly rates:
Senior Partner $525
Mangers $350-$400
Staff $215-$325
Paraprofessionals $140-$160
Donna M. Miller, manager of GM&C, attested to the Court that the
firm is a "disinterested person" within the meaning of 11 U.S.C.
Section 101(14) of the Bankruptcy Code.
About WJO Inc.
Bristol, Pennsylvania-based WJO, Inc., operates six family
practices located in Newtown, Bristol, Bensalem, Bustleton, South
Philadelphia, and Bethlehem, Pennsylvania and consists of Board
Certified Osteopathic Physicians specializing in Family Medicine.
Prior to the petition date, and to allow the Company to
restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx
III, LP, and East Coast TMR, Inc., were merged into WJO.
WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa.
Case No. 10-19894) on Nov. 15, 2010. The Debtor disclosed
$19,923,802 in assets and $6,805,255 in liabilities as of the
Chapter 11 filing.
Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at
Ciardi Ciardi & Astin, P.C., serve as the Debtor's bankruptcy
counsel. Pond Lehocky Stern Giordano serves as the Debtor's
special counsel to represent it in worker's compensation
proceedings pertaining to the Therapeutic Magnetic Resonance
treatments. Patrick Yun serves as the Debtor's financial advisor.
Attorneys at Keifer & Tsarouhis LLP serve as counsel to the
official committee of unsecured creditors. ParenteBeard LLC
serves as the Committee's accountant and financial advisor.
The United States Trustee has appointed David Knowlton as patient
care ombudsman in the case. The Ombudsman is represented in the
case by Karen Lee Turner, Esq., at Eckert Seamans Cherin &
Mellott, LLC, as counsel.
Tristate Capital Bank, the cash collateral lender, is represented
in the case by lawyers at Benesch Friedlander Coplan & Aronoff
LLP.
On July 3, 2012, Roberta A. DeAngelis, U.S. Trustee for Region 3,
obtained permission from the Hon. Jean K. Fitzsimon of the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania to
appoint Alfred T. Giuliano as Chapter 11 trustee of the bankruptcy
estate of WJO, Inc. Maschmeyer Karalis P.C. serves as the Chapter
11 Trustee's general bankruptcy counsel.
* Moody's Says Global Spec-Grade Default Rate Up 3% in August
-------------------------------------------------------------
Moody's trailing 12 month global speculative-grade default rate
came in at 3.0% in August, up from its 2.8% level in July, says
Moody's Investors Service in its monthly default report. A total
of 43 Moody's-rated corporate debt issuers have defaulted so far
this year, three of which defaulted in August.
Moody's "August Default Report" is now available, as are Moody's
other default research reports, in the Ratings Analytics section
of Moodys.com.
"The rate of default has remained remarkably steady," notes Albert
Metz, Managing Director of Moody's Credit Policy Research. "As
credit spreads continue to narrow slightly, our forecast remains
fairly benign."
In the US, the speculative-grade default rate ended August at
3.5%, up from July's level of 3.3%, while in Europe the rate eased
to 2.6% in August, down from 2.7% in July. The fall in the
European default rate was mainly driven by an increase in
speculative-grade issuers rather than fewer defaulters. Last year,
the European default rate was 1.1% in August.
Based on its forecasting model, Moody's expects the global
speculative-grade default rate will end the year at 3.1%. This is
relatively low compared to the historical average of 4.8% since
1983. Across industries, Moody's expects default rates to be
highest in Media: Advertising, Printing & Publishing Sector in the
US, and the Hotel, Gaming, & Leisure sector in Europe.
By dollar volume the global speculative-grade bond default rate
closed at 2.2% in August, up from2.0% in July. Last year, the rate
was much lower, at 0.8%.
In the US, the dollar-weighted speculative-grade bond default rose
to 1.9% in August, up from its 1.7% level in July. The comparable
rate was 0.9% a year ago.
In Europe, the dollar-weighted speculative-grade bond default rate
dropped to 3.1% in August from 3.3% in July. Last year, the rate
stood at 0.5.
Moody's distressed index came in at 17.5% in August, down from
18.3% in July. A year ago, the index was higher at 19.3%.
The trailing 12 month U.S. leveraged loan default rate ended at
2.4% in August, up from 2.3% in July. Last year, the loan default
rate was 1.4% at this time. There was only one Moody's-rated load
default in August.
* Minnesota Bank Failure Brings Year's Total to 41
--------------------------------------------------
The single-branch First Commercial Bank of Bloomington, Minnesota,
was taken over by regulators on Sept. 7. The deposits were
transferred by the Federal Deposit Insurance Corp. to Republic
Bank & Trust Co. of Louisville, Kentucky, which took over the
branch. The bank had $206.8 million in deposits, and its failure
cost the FDIC's insurance fund an estimated $63.9 million. It was
the 41st U.S. bank to fail this year.
2012 Failed Banks List
The FDIC was appointed as receiver for the closed banks. To
protect the depositors, the FDIC entered into a purchase and
assumption agreement with various banks that agreed to assume the
deposits of most of the closed banks. The FDIC also entered into
loss-share transactions on assets bought by the banks.
For this year, the failed banks are:
Loss-Share
Transaction Party FDIC Cost
Assets of Bank That Assumed to Insurance
Closed Bank Deposits & Bought Fund
Closed Bank (millions) Certain Assets (millions)
----------- ----------- ----------------- ------------
First Commercial Bank $215.9 Republic Bank & Trust $63.9
Waukegan Savings Bank $88.9 First Midwest Bank $19.8
Jasper Banking Company $216.7 Stearns Bank, N.A. $58.1
Second Federal Savings $199.1 Hinsdale Bank & Trust $76.9
Heartland Bank $110.0 Metcalf Bank $3.1
Georgia Trust Bank $119.8 Community & Southern $20.9
The Royal Palm Bank $87.0 First National Bank $13.5
First Cherokee State $222.7 Community & Southern $36.9
Glasgow Savings Bank $24.8 Regional Missouri $0.1
Montgomery Bank & Trust $173.6 Ameris Bank $75.2
The Farmers Bank $163.9 Clayton Bank and Trust $28.3
Security Exchange Bank $151.0 Fidelity Bank $34.3
Putnam State Bank $169.5 Harbor Community Bank $37.4
Waccamaw Bank $533.1 First Community Bank $51.1
Farmers' and Traders' $43.1 First State Bank $8.9
First Capital Bank $46.1 F & M Bank $5.6
Carolina Federal $54.4 Bank of North Carolina $15.2
Alabama Trust Bank $51.6 Southern States Bank $8.9
Security Bank, N.A. $101.0 Banesco USA $10.8
Plantation Federal $486.4 First Federal Bank $76.0
Inter Savings Bank $473.0 Great Southern Bank $117.5
Bank of the Est. Shore $166.7 [No Acquirer] $41.8
Palm Desert Nat'l $125.8 Pacific Premier Bank $20.1
HarVest Bank of Md. $164.3 Sonabank $17.2
Fort Lee Federal $51.9 Alma Bank $14.0
Fidelity Bank $818.2 The Huntington Nat'l $92.8
Premier Bank $268.7 Int'l Bank of Chi. $64.1
Covenant Bank $95.7 Stearns Bank, N.A. $31.5
New City Bank $71.2 [No Acquirer] $17.4
Global Commerce Bank $143.7 Metro City Bank $17.9
Central Bank of Georgia $278.9 Ameris Bank $67.5
Home Savings of Amer. $434.1 [No Acquirer] $38.8
Charter National Bank $93.9 Barrington Bank $17.4
SCB Bank $182.6 First Merchants Bank $33.9
Patriot Bank $111.3 First Resource Bank $32.6
BankEast $272.6 U.S. Bank N.A. $75.6
Tennessee Commerce $1,185.0 Republic Bank & Trust $416.8
First Guaranty Bank $377.9 CenterState Bank $82.0
American Eagle $19.6 Capital Bank, N.A. $3.2
The First State Bank $416.8 Hamilton State Bank $416.8
Central Florida $79.1 CenterState Bank $24.4
In 2011 there were 92 failed banks, compared with 157 in 2010, 140
in 2009 and just 25 for 2008.
The failures in 2010 were the most since 1992, when 179
institutions were taken over by regulators.
A complete list of banks that failed since 2000 is available at:
http://www.fdic.gov/bank/individual/failed/banklist.html
813 Banks in Problem List
The FDIC's Quarterly Banking Profile for Dec. 31, 2011, says that
The number of institutions on the FDIC's "Problem List" declined
from 844 to 813 during the quarter, and total assets of "problem"
institutions fell from $339 billion to $319.4 billion. The number
of institutions in the "problem list" has decreased for the third
consecutive quarter.
The FDIC defines "problem" institutions as those with financial,
operational or managerial weaknesses that threaten their
viability.
The deposit insurance fund, which protects customer holdings up to
$250,000 per account in the event of a failure, saw its balance
increase in the fourth quarter to $9.2 billion (unaudited) from
$7.8 billion in the third quarter, the eighth consecutive
quarterly increase.
Problem Institutions Failed Institutions
-------------------- -------------------
Year Number Assets (Mil) Number Assets (Mil)
---- ------ ------------ ------ ------------
2011 813 $319,432 92 $34,923
2010 884 $390,017 157 $92,085
2009 702 $402,800 140 $169,700
2008 252 $159,405 25 $371,945
2007 76 $22,189 3 $2,615
2006 50 $8,265 0 $0
2005 52 $6,607 0 $0
2004 80 $28,250 4 $170
Federal regulators assign a composite rating to each financial
institution, based upon an evaluation of financial and operational
criteria. The rating is based on a scale of 1 to 5 in ascending
order of supervisory concern. "Problem" institutions are those
institutions with financial, operational, or managerial weaknesses
that threaten their continued financial viability. Depending upon
the degree of risk and supervisory concern, they are rated either
a "4" or "5." The number and assets of "problem" institutions are
based on FDIC composite ratings. Prior to March 31, 2008, for
institutions whose primary federal regulator was the OTS, the OTS
composite rating was used.
* Junk Default Rate Rises in August, Distress Rate Down
-------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the default rate on junk bonds in the U.S. rose in
August to 3.5% from 3.3% the month before. There were three
defaults in August among companies rated by Moody's Investors
Service.
According to the report, worldwide, the default rate at the end of
August was 3%, up from 2.8% during the month. In a report
released on Sept. 10, Moody's predicted the global default rate on
junk debt will end the year at 3.1%, compared with the average of
4.8% calculated by Moody's since 1983. So far this year, 43
companies defaulted on junk debt, Moody's said. Statistics on
junk debt trading at so-called distressed levels indicates no
looming uptick in defaults. At the end of August, Moody's
distress index was 17.5%, down from 18.3% in July. Debt is
considered distressed if the yield is more than 10 percentage
points greater than comparable U.S. Treasury securities. Looking
ahead, Moody's sees media, advertising, printing, and publishing
as being the U.S. industries with the highest default rates.
* Judiciary Continues Cost Savings, Closes Court Facilities
-----------------------------------------------------------
The Judicial Conference of the United States agreed to close six
non-resident federal court facilities -- the latest in a series of
cost-cutting measures implemented by the federal Judiciary's
national policy-making body.
Cost containment, a Judiciary-wide initiative dating back to 2004,
has resulted in a close examination of nearly every Judiciary
function and activity to determine if it is necessary, and if so,
how it can be done more efficiently and at less cost. This effort
is on-going.
Nevertheless, the "biggest threat to our fiscal health in the
short term is budget sequestration," Judge Julia Gibbons, Chair of
the Judicial Conference Budget Committee, told the Conference on
Sept. 11.
"We estimate sequestration would cut the Judiciary's budget by
more than $500 million below the 2012 funding level," Gibbons
said. "Quite simply, a reduction of this magnitude would cripple
the operations of the federal Judiciary and our constitutional
mission would be compromised due to these sudden, arbitrary budget
cuts."
(The Deficit Reduction Act requires automatic across the board
spending cuts, known as sequestration, in January 2013, unless
Congress adopts a deficit reduction plan.)
With regard to the court facilities to be closed, each contains a
courtroom, but has no full-time resident federal judge. In
determining whether a facility should be closed, consideration was
given to the building's usage, location, condition, and operating
costs. Closure of the following facilities will save the Judiciary
a total of about $1 million a year in rent costs:
-- Wilkesboro, North Carolina, (upon completion of the
renovation of the courthouse in Statesville, North
Carolina);
-- Beaufort, South Carolina, (at the end of the lease term in
2014);
-- Meridian, Mississippi;
-- Amarillo, Texas, (upon the cancellation of the lease for
the bankruptcy court space);
-- Pikeville, Kentucky, (releasing the bankruptcy courtroom
and chamber in leased space); and
-- Gadsden, Alabama.
In other action, the Conference:
-- Asked each district court unit (district clerk's office,
probation office, pretrial services office, and bankruptcy court)
to work together to adopt a shared administrative services plan in
an effort to achieve cost savings while preserving effective court
operations and services.
-- Eliminated funding to print and mail court of appeals slip
opinions -- court opinions issued prior to formal publication in
case reporters. This will achieve an annual savings of more than
$1 million in printing and mailing costs. Courts may instead
provide electronic copies of slip opinions.
-- Approved the national implementation of a program to
provide access to court opinions through the Government Printing
Office's Federal Digital System (FDsys). Nearly 30 federal courts
currently participate in the pilot. The system provides free on-
line access to official publications from all three branches of
government and allows users to search, browse, and download
content.
The 26-member Judicial Conference is the policy-making body for
the federal court system. The Chief Justice serves as its
presiding officer. Its members are the chief judges of the 13
courts of appeals, a district judge from each of the 12 geographic
circuits, and the chief judge of the Court of International Trade.
The Conference meets twice a year to consider administrative and
policy issues affecting the court system, and to make
recommendations to Congress concerning legislation involving the
Judicial Branch.
* Sanctions Must be Imposed Before Appeal Is Decided
----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that a bankruptcy court lacked jurisdiction to impose
sanctions on an attorney after the underlying lawsuit had been
appealed to the district court and affirmed, U.S. District Judge
Harry D. Leinenweber from Chicago ruled on Sept. 5.
According to the report, a lawsuit filed in bankruptcy court was
dismissed on summary judgment and went up on appeal where it was
affirmed. The bankruptcy court had reopened the case to consider
a motion for sanctions that was not filed until after the
underlying dismissal was affirmed on appeal.
The report relates that Judge Leinenweber's opinion deals with the
question of the extent to which a trial court loses jurisdiction
when a case is on appeal. Judge Leinenweber concluded that there
was no jurisdiction under the governing case from the U.S. Court
of Appeals in Chicago, Overnite Transportation Co. v. Chicago
Industries Tire Co.
The Bloomberg report discloses that to retain jurisdiction during
appeal, Judge Leinenweber said the bankruptcy judge should have
expressly reserved jurisdiction or heard the motion for sanctions
immediately after dismissal was granted, so sanctions and
dismissal could go up on appeal together. Nothing of the sort
having occurred, the bankruptcy court lost jurisdiction when
dismissal was upheld on appeal.
The case is Kafantaris v. Signore, 12-2299, U.S. District Court,
Northern District Illinois (Chicago).
* Best Lawyers Names Singerman Bankruptcy "Lawyer of the Year"
--------------------------------------------------------------
Paul Steven Singerman, Co-Chair of the Florida business law firm
Berger Singerman, has been named 2013 Miami Litigation --
Bankruptcy "Lawyer of the Year" by Best Lawyers, the oldest and
most respected peer-review publication in the legal profession.
After more than a quarter of a century in publication, Best
Lawyers is designating "Lawyers of the Year" in high-profile legal
specialties in large legal communities. Only a single lawyer in
each specialty in each community is honored as the "Lawyer of the
Year."
Since it was first published in 1983, Best Lawyers has become
universally regarded as the definitive guide to legal excellence.
Because Best Lawyers is based on an exhaustive peer-review survey
in which more than 36,000 leading attorneys cast almost 4.4
million votes on the legal abilities of other lawyers in their
practice areas, and because lawyers are not required or allowed to
pay a fee to be listed, inclusion in Best Lawyers is considered a
singular honor. Corporate Counsel Magazine has called Best
Lawyers "the most respected referral list of attorneys in
practice."
Mr. Singerman concentrates his practice in troubled loan workouts,
insolvency matters and commercial transactions. He is active
throughout the United States in large and complex restructuring,
insolvency and bankruptcy cases. His current representations
include representing the Liquidating Trustee for the Trust formed
under the Plan in the Taylor Bean & Whitaker Mortgage Corp.
bankruptcy case and Judge Herbert Stettin in his capacity as
Chapter 11 Trustee for the law firm Rothstein, Rosenfeldt & Adler.
Although he is best known for his representation of debtors in
complex restructuring cases, he is also experienced in
representing creditors' committees, lenders, large unsecured
creditors, asset purchasers in Sec. 363 sales and trustees.
Mr. Singerman is a past chair of the Business Law Section of The
Florida Bar, and now serves on the Executive Council of this
organization. He is also is a Fellow of the American Bar
Association and is a member of the American Bankruptcy Institute,
American College of Bankruptcy, and the Spellman-Hoeveler American
Inn of Court. Mr. Singerman is recognized as a "Star Individual"
in Chambers USA: America's Leading Lawyers for Business (2009-
2012) and is the only bankruptcy lawyer in the state of Florida in
four consecutive years to receive Chambers' highest ranking.
He received both his undergraduate degree in Classical Studies,
summa cum laude, and his law degree, cum laude, from the
University of Florida.
Berger Singerman is a Florida business law firm with more than 70
attorneys working out of offices in Boca Raton, Fort Lauderdale,
Miami and Tallahassee. Members of the firm have experience in all
areas of commercial law, including banking, creditors' rights,
business reorganization, bankruptcy, corporate & securities,
dispute resolution and litigation, white collar crime, real
estate, environmental and land use, health care, tax, estate
planning, and probate.
* Ronald Rubin Joins Hunton & Williams as Partner in Washington
---------------------------------------------------------------
Hunton & Williams LLP on Sept. 10 disclosed that Ronald L. Rubin,
an enforcement attorney at the Consumer Financial Protection
Bureau, has joined the firm as a partner in Washington. He will
be part of the firm's 30-member bankruptcy, restructuring and
creditors? rights team.
"With the CFPB expected to bring a wave of enforcement actions on
behalf of consumers in the areas of residential mortgages, auto
loans, credit cards, payday and title lending, debt collection,
and student loans, it is going to be a significant advantage to
our clients to have Ron's agency insights and experience," said
Tyler P. Brown, head of the firm's bankruptcy, restructuring and
creditors' rights practice group.
As one of the earliest employees in the CFPB's Supervision, Fair
Lending and Enforcement Division, Mr. Rubin played an important
role in building the new agency's enforcement capabilities. In
addition to creating the standard format for all of the Office of
Enforcement's policies and procedures, he drafted the Enforcement
Action Process, which governs how Enforcement collaborates with
other components of the Bureau prior to taking steps such as
opening investigations, issuing civil investigative demands, and
suing suspected law violators; and the NORA (Notice and
Opportunity to Respond and Advise) procedures, which provide firms
under investigation with an opportunity to present their positions
prior to a recommendation of enforcement proceedings against them.
Mr. Rubin has extensive knowledge of the Dodd-Frank Act and other
consumer financial laws overseen by the CFPB.
An increasingly stringent regulatory environment at both the
federal and state levels has led to an escalation of legal issues
related to consumer lending. Heightened oversight of the issuance
of consumer credit by the Office of the Comptroller of the
Currency and the Federal Trade Commission has coincided with a
rise in class action litigation related to consumer financial
protection statutes. Additionally, state attorneys general are
more actively enforcing regulations.
"Ron has credibility and experience that can be immediately
demonstrated to financial services clients. His arrival builds on
the firm?s already solid foundation in the banking regulatory
arena; our wealth of experience litigating consumer protection
class actions and mortgage servicing-related matters; and our
practice before state attorneys general," said Jarrett L. Hale, a
partner in the practice.
Mr. Rubin began his career more than 20 years ago by gaining
extensive trial experience as a criminal prosecutor. He then
spent seven years investigating and prosecuting securities law
violations as senior special counsel at the United States
Securities and Exchange Commission, and was a managing director in
the Legal and Compliance Department of Bear, Stearns & Co.
Immediately prior to joining the CFPB, Rubin served as counsel in
the regulatory litigation group at Tannenbaum Helpern Syracuse &
Hirschtritt LLP in New York.
About Hunton & Williams LLP
Hunton & Williams LLP -- http://www.hunton.com-- provides legal
services to corporations, financial institutions, govern?ments and
individuals, as well as to a broad array of other entities. Since
its establishment more than a century ago, Hunton & Williams has
grown to more than 800 lawyers serving clients in 100 countries
from 19 offices around the world. While its practice has a strong
industry focus on energy, financial services and life sciences,
the depth and breadth of its experience extends to more than 100
separate practice areas, including bankruptcy and creditors'
rights, commercial litigation, corporate transactions and
securities law, intellectual property, international and
gov?ernment relations, regulatory law, products liability, and
privacy and data security.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Sept. 13-14, 2012
AMERICAN BANKRUPTCY INSTITUTE
9th Annual Complex Financial Restructuring Program
Four Seasons Hotel, Las Vegas, Nev.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Sept. 13-15, 2012
AMERICAN BANKRUPTCY INSTITUTE
20th Annual Southwest Bankruptcy Conference
Four Seasons Hotel, Las Vegas, Nev.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Sept. 19-20, 2012
AMERICAN BANKRUPTCY INSTITUTE
38th Annual Lawrence P. King and Charles Seligson
Workshop on Bankruptcy & Business Reorganizations
New York University School of Law, New York, N.Y.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Nuts & Bolts: Bankruptcy Fundamentals for
Young and New Practitioners
Charles Evans Whittaker Courthouse, Kansas City, Mo.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 5, 2012
AMERICAN BANKRUPTCY INSTITUTE
32nd Annual Midwestern Bankruptcy Institute & Consumer Forum
Kansas City Marriott Downtown, Kansas City, Mo.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 5, 2012
AMERICAN BANKRUPTCY INSTITUTE
Bankruptcy 2012: Views from the Bench
Georgetown University Law Center, Washington, D.C.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 8, 2012
AMERICAN BANKRUPTCY INSTITUTE
5th Annual Chicago Consumer Bankruptcy Conference
University of Chicago Gleacher Center, Chicago, Ill.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 18, 2012
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency & Restructuring Symposium
Parco dei Principi Grand Hotel & Spa, Rome, Italy
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 26, 2012
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
San Diego Marriott Marquis and Marina, San Diego, Calif.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Nov. 1-2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Corporate Restructuring Competition
Wharton University of Pennsylvania, Philadelphia, Pa.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Nov. 1-3, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Westin Copley Place, Boston, Mass.
Contact: http://www.turnaround.org/
Nov. 7, 2012
AMERICAN BANKRUPTCY INSTITUTE
U.S./Mexico Restructuring Symposium
The Four Seasons, Mexico City, D.F.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Nov. 12, 2012
AMERICAN BANKRUPTCY INSTITUTE
Detroit Consumer Bankruptcy Conference
MGM Grand, Detroit, Mich.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Nov. 26, 2012
BEARD GROUP, INC.
19th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York, N.Y.
Contact: 240-629-3300 or
http://bankrupt.com/
Nov. 29-30, 2012
MID-SOUTH COMMERCIAL LAW INSTITUTE
33rd Annual Bankruptcy & Commercial Law Seminar
Nashville Marriott at Vanderbilt, Nashville, Tenn.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Nov. 29 - Dec. 1, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Dec. 4-8, 2012
AMERICAN BANKRUPTCY INSTITUTE
ABI/SJUSL Mediation Training Symposium
St. John's University, Queens, N.Y.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Jan. 24-25, 2013
AMERICAN BANKRUPTCY INSTITUTE
Rocky Mountain Bankruptcy Conference
Four Seasons Hotel Denver, Denver, Colo.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Feb. 7-9, 2013
AMERICAN BANKRUPTCY INSTITUTE
Caribbean Involvency Symposium
Eden Roc Renaissance, Miami Beach, Fla.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Feb. 17-19, 2013
AMERICAN BANKRUPTCY INSTITUTE
Advanced Consumer Bankruptcy Practice Institute
Charles Evans Whittaker Courthouse, Kansas City, Mo.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Feb. 20-22, 2013
AMERICAN BANKRUPTCY INSTITUTE
VALCON
Four Seasons Las Vegas, Las Vegas, Nev.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Apr. 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott Chicago, Chicago, Ill.
Contact: http://www.turnaround.org/
Apr. 18-21, 2013
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
June 13-16, 2013
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort, Traverse City, Mich.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
July 11-13, 2013
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
July 18-21, 2013
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Aug. 8-10, 2013
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Aug. 22-24, 2013
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nev.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
Nov. 1, 2013
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Atlanta Marriott Marquis, Atlanta, Ga.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Dec. 2, 2013
BEARD GROUP, INC.
19th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York, N.Y.
Contact: 240-629-3300 or
http://bankrupt.com/
Dec. 5-7, 2013
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Terranea Resort, Rancho Palos Verdes, Calif.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday. Submissions via
e-mail to conferences@bankrupt.com are encouraged.
*********
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, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman,
Editors.
Copyright 2012. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $775 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
*** End of Transmission ***