/raid1/www/Hosts/bankrupt/TCR_Public/121101.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, November 1, 2012, Vol. 16, No. 304
Headlines
A123 SYSTEMS: Wanxiang to Replace Johnson Controls as Lender
ALFIE REALTY: Case Summary & 3 Unsecured Creditors
AMERICAN AIRLINES: Pilots Urge Creditors to Name New Directors
AMERICAN DINING: Voluntary Chapter 11 Case Summary
AMERICAN LASER: Seeks Chapter 7 Conversion
AMERICAN WEST: Homebuilder Denied Approval of Bankruptcy Plan
B K HILL: Case Summary & 20 Largest Unsecured Creditors
BALLARD BUS: Case Summary & 8 Unsecured Creditors
CHRISTIAN BROTHERS: Iona College to Buy Homes
CINCINNATI BELL: S&P Gives 'BB-' Rating on $200MM Revolving Credit
COMMONWEALTH GROUP: Case Summary & 14 Unsecured Creditors
COAST INLAND: Voluntary Chapter 11 Case Summary
CYRUSONE INC: S&P Gives 'B' Corp. Credit Rating; Outlook Stable
DUNLAP OIL: Case Summary & 20 Largest Unsecured Creditors
EAGLE LAKE: Creditor Seeks Structured Settlement, Case Dismissal
EASTMAN KODAK: Has $37-Mil. Operating Loss in 3rd Quarter
EMSCHARTS: Jury Verdict on Patent Leads Firm to Bankruptcy
FOREVERGREEN WORLDWIDE: Chief Financial Officer Frampton Resigns
FREDERICK'S OF HOLLYWOOD: Incurs $6.4MM Net Loss in Fiscal 2012
FRISCO SUMMIT: Voluntary Chapter 11 Case Summary
H&M OIL & GAS: Plan Pays Secured Creditor With Crude Oil
HARPER BRUSH: Court Approves Plan to Auction Assets
HAWAIIAN TELCOM: Stock Trading Restrictions Expired Oct. 28
HAWKER BEECHCRAFT: Files Revised Plan With Stock for Creditors
HAWKER BEECHCRAFT: Attorney Fees Draw U.S. Trustee's Ire
HEISMAN PROPERTIES: St. Louis Seeks Developer for Municipal Bldg
HERITAGE COMPANY: Voluntary Chapter 11 Case Summary
HOMELAND SECURITY: Trevor Stoffer Named Chief Operating Officer
LEGENDS GAMING: Plan Provides 67% Recovery to Senior Lenders
LIBERACE FOUNDATION: Case Summary & Unsecured Creditor
LI-ION MOTORS: Delays Form 10-K for Fiscal 2012
LIGHTHOUSE IMPORTS: Case Summary & 20 Largest Unsecured Creditors
LINDBERG ROAD: Star Financial Balks at Plan to Pay $2.5-Mil. Loan
L.P. FLEMING: Voluntary Chapter 11 Case Summary
MARK TIPTON: Court Approves Plan to Pay $24 Million in Debt
MF GLOBAL: CFTC Says L/Cs to Be Treated Same as Cash
MF GLOBAL: UK Judge Asked to Set Client-Asset Valuation Date
MUSCLEPHARM CORP: Offering $20.6 Million Worth of Common Shares
NORTEL NETWORKS: Gets Feb. 2, 2013 Extension of CCAA Stay
NOVA FINANCIAL: Intends to Declare Chapter 7 Bankruptcy
OPTIMAL MEDICAL: Case Summary & 2 Unsecured Creditors
OVERSEAS SHIPHOLDING: Robbins Umeda Probes Firm
PACIFIC GOLD: To Hold Annual Meeting of Shareholders on Nov. 13
PACIFIC GOLD: Robert Landau Discloses 31.2% Equity Stake
PACIFIC GOLD: Mitchell Geisler Discloses 16.8% Equity Stake
PATRIOT COAL: Net Loss Widens to $215.9MM for 2012 Q3
PEREGRINE PHARMACEUTICALS: Lieff Cabraser Notes of Class Suits
PRECISION OPTICS: Selling $6.5 Million Worth of Common Shares
PRESTIGE TRAVEL: Case Summary & 20 Largest Unsecured Creditors
PROGRAMA AVANCE: Case Summary & 20 Largest Unsecured Creditors
QUAIL HOLLOW: Case Summary & 20 Largest Unsecured Creditors
RAFAEL ROSARIO: Case Summary & 20 Largest Unsecured Creditors
RENEGADE HOLDINGS: Earns $4 Million for September 2012
RG STEEL: Asks for Approval of Key Employee Contracts
SAN BERNARDINO, CA: Pension Fund Objects Bankruptcy Filing
SHEEHAN MEMORIAL: Madison Hawk to Conduct Sale on Nov. 29
SOUTH FRANKLIN: Case Summary & 20 Largest Unsecured Creditors
STERLING CAPITAL: Case Summary & 20 Largest Unsecured Creditors
STERLING SHOES: Settles with Town Shoes on Price Adjustments
STN TRANSPORT: Voluntary Chapter 11 Case Summary
VANN'S INC: McMagic to Buy Assets for $4.5 Million
VERTIS HOLDINGS: Creditors Object to Auction, DIP Financing Terms
WEST PENN: Loss Widens to $112.5MM at Year Ended June 30
XEBEX CORP: Home-Decor Importer Seeks Bankruptcy Protection
* 'Stern' Objections Cannot Be Waived, Circuit Rules
* Social Security Benefits Excluded From Chapter 13 Payments
* Discretionary Dismissal Overturned on Appeal
* AlixPartners Has New Platform for Claims Trading
* McKool Smith Moves Silicon Valley Office
* Recent Small-Dollar & Individual Chapter 11 Filings
*********
A123 SYSTEMS: Wanxiang to Replace Johnson Controls as Lender
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that A123 Systems Inc. filed papers on Oct. 28 for Chinese
auto-parts maker Wanxiang Group Corp. to replace Johnson Controls
Inc. and become the lender financing the Chapter 11 effort begun
Oct. 16.
According to the report, the company asked the bankruptcy court in
Delaware to hold a Nov. 5 hearing for approval of a $50 million
loan from Wanxiang, which made a $22.5 million loan before
bankruptcy. There also had been pre-bankruptcy discussions for
Wanxiang to buy the business. Johnson Controls had been given
interim approval by the bankruptcy court on Oct. 18 to loan $15.5
million for what was to have been a $72.5 million loan. Johnson
Controls said it decided to withdraw as lender so there wouldn't
be a fight over financing.
The report relates that A123 wants the judge to require other bids
by Nov. 16, followed by an auction on Nov. 19 and a hearing to
approve the sale on Nov. 26. If there no other offers, Johnson
Controls will buy the business for $125 million in cash, plus the
cost of curing defaults on contracts.
About A123 Systems
Based in Waltham, Massachusetts, A123 Systems Inc. designs,
develops, manufactures and sells advanced rechargeable lithium-ion
batteries and battery systems and provides research and
development services to government agencies and commercial
customers.
A123 is the recipient of a $249 million federal grant from the
Obama administration. Pre-bankruptcy, A123 had an agreement to
sell an 80% stake to Chinese auto-parts maker Wanxiang Group Corp.
U.S. lawmakers opposed the deal over concerns on the transfer of
American taxpayer dollars and technology to China.
A123 didn't make a $2.7 million payment due Oct. 15 on $143.75
million in 3.75% convertible subordinated notes due 2016.
A123 and U.S. affiliates, A123 Securities Corporation and Grid
Storage Holdings LLC, sought Chapter 11 bankruptcy protection
(Bankr. D. Del. Case Nos. 12-12859 to 12-12861) on Oct. 16, 2012,
with a deal to sell its auto-business assets to Johnson Controls
Inc. The deal with JCI is valued at $125 million, and subject to
higher offers at a bankruptcy auction.
A123 disclosed assets of $459.8 million and liabilities totaling
$376 million. Debt includes $143.8 million on 3.75% convertible
subordinated notes. Other liabilities include $22.5 million on a
bridge loan owing to Wanziang. About $33 million is owed to trade
suppliers.
The Hon. Kevin J. Carey presides over the case. Lawyers at
Richards, Layton & Finger, P.A., and Latham & Watkins LLP serve as
the Debtors' counsel. Lazard Freres & Co. LLC acts as the
Debtors' financial advisors, while Alvarez & Marsal serves as
restructuring advisors. Logan & Company Inc. serves as the
Debtors' claims and noticing agent. Wanxiang America Corporation
and Wanxiang Clean Energy USA Corp. are represented in the case by
lawyers at Young Conaway Stargatt & Taylor, LLP, and Sidley Austin
LLP.
ALFIE REALTY: Case Summary & 3 Unsecured Creditors
--------------------------------------------------
Debtor: Alfie Realty Company Inc.
29 Leber Road
Blauvelt, NY 10913
Bankruptcy Case No.: 12-23884
Chapter 11 Petition Date: October 24, 2012
Court: United States Bankruptcy Court
Southern District of New York (White Plains)
Judge: Robert D. Drain
Debtor's Counsel: Dawn K. Arnold, Esq.
RATTET PASTERNAK, LLP
550 Mamaroneck Avenue
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: darnold@rattetlaw.com
Scheduled Assets: $1,560,000
Scheduled Liabilities: $2,139,187
A copy of the Company's list of its three unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/nysb12-23884.pdf
The petition was signed by Alfredo Zaldivar, president.
AMERICAN AIRLINES: Pilots Urge Creditors to Name New Directors
--------------------------------------------------------------
Michael Bathon at Bloomberg News reports that American Airlines'
pilot union said there's a chance a contract agreement may be
reached soon and told members it's urging creditors to appoint new
directors for bankrupt parent AMR Corp. Allied Pilots Association
advisers are "confident" that some major AMR creditors agree on
the need for a new board that would then "appoint management to
lead the reorganized company," according to a negotiations update
provided to members Oct. 30.
According to the report, AMR Corp.'s American wants a new pilot
contract before leaving court protection to assure creditors about
labor costs at the restructured airline. Such an accord would
replace terms imposed by the carrier after pilots rejected a
previous plan on Aug. 8.
The union agreed in April with US Airways Group Inc. on basic
contract terms if it merges with American. "There is potential
for an agreement with AMR in the days ahead, but it all comes down
to a number of moves management will need to make on key deal
points to bring us into the realm of industry standard" contracts,
union negotiators said in the update on the APA website.
The Bloomberg report discloses that a ratified contract would give
pilots a 13.5% equity stake in Fort Worth, Texas-based AMR when it
exits bankruptcy, a benefit still backed by the company's
unsecured creditors committee, the union said. It would
strengthen APA's ability "to influence strategic alternatives,
the selection of future management and the makeup of the
reorganized board," it said. In other airline bankruptcy exits,
seven of 10 directors were replaced at Delta Air Lines Inc. in
2007, six of 13 at Northwest Airlines Corp. the same year and
seven of 12 at former United Airlines parent UAL Corp. in 2006.
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 DINING: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: American Dining Corporation
P.O. Box 18
Penns Park, PA 18943
Bankruptcy Case No.: 12-19948
Chapter 11 Petition Date: October 23, 2012
Court: U.S. Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Stephen Raslavich
Debtor's Counsel: Myron A. Bloom
MYRON A. BLOOM LLC
1500 Walnut Street, Suite 1500
Philadelphia, PA 19102
Tel: (215) 545 0019
E-mail: myron@myronbloom.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Michael G. Novak, president.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
The Heritage Company, L.P. 12-19950 10/23/12
AMERICAN LASER: Seeks Chapter 7 Conversion
------------------------------------------
Michael Bathon at Bloomberg News reports that CLA Hold LLC,
formerly known as American Laser Centers LLC, is seeking to have
its case converted to a liquidation under Chapter 7 of the
Bankruptcy Code.
According to the report, the company sold virtually all its assets
to an affiliate of Versa Capital Management in January, so
"engaging in a Chapter 11 liquidation plan process is not feasible
as the debtors have no means to fund such a process," according to
court papers filed in Wilmington, Delaware. Versa, a
Philadelphia-based private-equity firm, bought the company through
affiliate Bellus ALC Investments 1 LLC, which provided American
Laser with $59.8 million in financing to help support it during
bankruptcy, according to court documents.
The Bloomberg report discloses that, to buy the assets, Bellus
will use about $30 million in debt forgiveness and new capital
left over from the bankruptcy financing after paying lenders owed
about $40.3 million.
About ALC Holdings
Farmington Hills, Michigan-based ALC Holdings LLC dba American
Laser Centers, and American Laser Skincare, provides laser hair
removal treatments.
The Company and its affiliates filed for Chapter 11 protection
(Bankr. D. Del. Lead Case No. 11-13853) on Dec. 8, 2011.
Bankruptcy Judge Mary F. Walrath handles the case. Landis
Rath & Cobb LLP represents the Debtors in their restructuring
efforts. BMC Group Inc. serves as claims agent; SSG Capital
Advisors, LLC serves as financial advisors; and Traverse, LLC
serves as restructuring crisis manager. MBC Consulting and
Melanie B. Cox serve as interim chief executive officer. Qorval
and Eric Glassman serve as restructuring consultant.
As of Oct. 31, 2011, the Debtors disclosed total assets of
$80.4 million and total liabilities including $40.3 million owing
on a first-lien debt, $51 million in subordinated notes, and
$17.9 million is owing to trade suppliers. American Laser Centers
of California LLC disclosed $20,988,454 in assets and $99,951,866
in liabilities as of the Chapter 11 filing. ALC Holdings LLC
disclosed $14,662 in assets and $93,744,094 in liabilities. The
petitions were signed by Andrew Orr, chief financial officer & VP
corporate operations.
Herrick, Feinstein LLP represents the Official Committee of
Unsecured Creditors. The Committee tapped Ashby & Geddes, P.A. as
Delaware Counsel and J.H. Cohn LLP as its financial advisor.
AMERICAN WEST: Homebuilder Denied Approval of Bankruptcy Plan
-------------------------------------------------------------
Michael Bathon at Bloomberg News reports that American West
Development Inc., a Las Vegas homebuilder, was denied approval of
its restructuring plan, after a judge found that the proposal
impermissibly granted protection from lawsuits to third parties.
According to the report, U.S. Bankruptcy Judge Mike K. Nakagawa in
Las Vegas ruled that Ninth Circuit law barred a provision in the
plan that would shield parties, including the reorganized company
and its affiliates, from litigation or collections actions over
claims arising from construction defects. The plan would give
secured lenders, owed $177.5 million, new loans valued at about
$49.6 million and all the equity in the reorganized company in
exchange for a $10 million loan for plan payments and working
capital, according to court papers. Unsecured creditors would
have shared $1.5 million.
The Bloomberg report discloses that construction defect creditors'
claims would be handled by a trust funded with $1.5 million to
either make a cash payout or to pursue lawsuits against insurance
companies.
About American West
American West Development, Inc. -- fdba Castlebay 1, Inc., et al.
-- is a homebuilder in Las Vegas, Nevada, founded on July 31,
1984. Initially, AWDI was known as CKC Corporation, but later
changed its name.
AWDI filed for Chapter 11 bankruptcy protection (Bankr. D. Nev.
Case No. 12-12349) on March 1, 2012. Judge Mike K. Nakagawa
presides over the case. Brett A. Axelrod, Esq., and Micaela
Rustia Moore, Esq., at Fox Rothschild LLP, serve as AWDI's
bankruptcy counsel. Nathan A. Schultz, P.C., is AWDI's conflicts
counsel. AWDI hired Garden City Group as its claims and notice
agent. American West disclosed $55.39 million in assets and
$208.5 million in liabilities as of the Chapter 11 filing.
James L. Moore, as future claims representative in the Chapter 11
case of American West Development, Inc., tapped the law firm of
Field Law Ltd. as his counsel.
B K HILL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: B K Hill, LLC
dba Kaniksu Sands on Priest River
485 Jim Low Road
Nordman, ID 83848
Bankruptcy Case No.: 12-21215
Chapter 11 Petition Date: October 23, 2012
Court: U.S. Bankruptcy Court
District of Idaho (Coeur dAlene)
Judge: Terry L. Myers
Debtor's Counsel: David E. Eash, Esq.
EWING ANDERSON P.S.
2101 Lakewood Drive, Suite 235
Coeur d'Alene, ID 83814
Tel: (208) 667-7990
Fax: (509) 838-4906
E-mail: deash@ewinganderson.com
Scheduled Assets: $6,940,300
Scheduled Liabilities: $3,885,097
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/idb12-21215.pdf
The petition was signed by Fred Johnston, managing member.
BALLARD BUS: Case Summary & 8 Unsecured Creditors
-------------------------------------------------
Debtor: Ballard Bus, Inc.
P.O. Box 1777
Carlsbad, NM 88221
Bankruptcy Case No.: 12-13870
Chapter 11 Petition Date: October 23, 2012
Court: U.S. Bankruptcy Court
District of New Mexico (Albuquerque)
Judge: David T. Thuma
Debtor's Counsel: Louis Puccini, Jr., Esq.
PUCCINI LAW, P.A.
P.O. Box 50700
Albuquerque, NM 87181-0700
Tel: (505) 255-0202
Fax: (505) 255-8726
E-mail: puccinilaw@puccinilaw.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 eight largest unsecured
creditors filed with the petition is available for free at:
http://bankrupt.com/misc/nmb12-13870.pdf
The petition was signed by Debbie Ballard, director/vice
president.
CHRISTIAN BROTHERS: Iona College to Buy Homes
---------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Christian Brothers' Institute received no bids to
compete with the $5 million offer from Iona College to purchase
six homes in New Rochelle, New York. Last week's auction was
canceled. There will be a Nov. 1 hearing in U.S. Bankruptcy Court
in White Plains, New York, to approve the sale.
About Christian Brothers' Institute
The Christian Brothers' Institute in New Rochelle, New York, is a
domestic not-for-profit 501(c)(3) corporation organized under Sec.
102(a)(5) of the New York Not-for-Profit Corporation Law. CBI was
formed to establish, conduct and support Catholic elementary and
secondary schools principally throughout New York State.
The Christian Brothers of Ireland, Inc., in Chicago, Illinois, is
a domestic not-for-profit 501(c)(3) corporation organized under
the Not-for-Profit Corporation Law of the State of Illinois. CBOI
was formed to establish, conduct and support Catholic elementary
and secondary schools principally throughout the State of
Illinois, as well as other spiritual and temporal affairs of the
former Brother Rice Province of the Congregation of Christian
Brothers.
CBI and CBOI depend upon grants and donations to fund a portion of
their operating expenses.
The Christian Brothers' Institute and The Christian Brothers of
Ireland filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case Nos. 11-22820 and 11-22821) on April 28, 2011.
Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, serves
as the Debtors' bankruptcy counsel. The Christian Brothers'
Institute disclosed assets of $63,418,267 and $8,484,853 in
liabilities. CBOI estimated its assets at $500,000 to $1 million
and debts at $1 million to $10 million.
CINCINNATI BELL: S&P Gives 'BB-' Rating on $200MM Revolving Credit
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' issue-level
rating and '1' recovery rating to Cincinnati-based Cincinnati Bell
Inc. (CBI)'s proposed $200 million revolving credit facility due
2017. "The '1' recovery rating indicates our expectation for very
high (90% to 100%) recovery for lenders in the event of a payment
default. CBI will be refinancing its existing $210 million
revolving credit facility due 2014. In addition, we expect the
company to repay all or a portion of its 7% senior notes due 2015,
and a portion of other senior notes, with proceeds from the $500
million stand-alone debt financing at subsidiary, CyrusOne Inc. We
do not expect any changes to the issue-level or recovery ratings
on existing senior secured or unsecured notes as a result of the
potential debt repayment," S&P said.
"The borrower under the proposed senior secured revolving credit
facility is CBI. The facilities are guaranteed by all direct and
indirect domestic subsidiaries, excluding unrestricted
subsidiaries related to CyrusOne Inc. The credit facility is
structurally junior to obligations at the subsidiaries, including
the unsecured notes at CBI's wholly owned incumbent local exchange
carrier (ILEC) subsidiary Cincinnati Bell Telephone Co., as well
as the receivables financing facility at wholly owned subsidiary
Cincinnati Bell Funding LLC," S&P said.
RATINGS LIST
Cincinnati Bell Inc.
Corporate Credit Rating B/Stable/--
New Ratings
Cincinnati Bell Inc.
$200 mil revolver due 2017 BB-
Recovery rating 1
COMMONWEALTH GROUP: Case Summary & 14 Unsecured Creditors
---------------------------------------------------------
Debtor: Commonwealth Group-Mocksville Partners, LP
P.O. Box 1390
Knoxville, TN 37901
Bankruptcy Case No.: 12-34319
Chapter 11 Petition Date: October 25, 2012
Court: United States Bankruptcy Court
Eastern District of Tennessee (Knoxville)
Judge: Richard Stair Jr.
Debtor's Counsel: Maurice K. Guinn, Esq.
GENTRY, TIPTON & MCLEMORE P.C.
P.O. Box 1990
Knoxville, TN 37901
Tel: (865) 525-5300
Fax: (865) 523-7315
E-mail: mkg@tennlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Milton Turner, chief manager & general
partner.
Debtor's List of 14 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
TIS $25,350
1900 Winston Road
Knoxville, TN 37919
Dominion Real Estate Svs. $11,602
P.O. Box 1390
Knoxville, TN 37901
Kennerly, Montgomery & $4,899
Finley
P.O. Box 442
Knoxville, TN 37901
Piedmont Property $3,599
Services, Inc.
Lattimore, Black, $2,550
Morgan & Cain
Kilpatrick Stockton $1,829
Town of Mocksville $1,600
Republic Services $904
Cedar Row Nursery $816
Chicago Title $750
Environs Service Company $750
Energy United $579
CenturyLink $136
Simplex Grinnell Unknown
COAST INLAND: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Coast Inland Constructors, Inc.
1801 E. Parkcourt Place, Suite E-103
Santa Ana, CA 92705
Tel: (702) 296-4101
Bankruptcy Case No.: 12-48621
Chapter 11 Petition Date: October 23, 2012
Court: U.S. Bankruptcy Court
Northern District of California (Oakland)
Judge: Roger L. Efremsky
Debtor's Counsel: David M. Wiseblood, Esq.
LAW OFFICES OF DAVID M. WISEBLOOD
101 Montgomery Street, 27th Floor
San Francisco, CA 94104
Tel: (415)547-2703
E-mail: dwiseblood@wisebloodlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Val Peterson, director.
CYRUSONE INC: S&P Gives 'B' Corp. Credit Rating; Outlook Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Carrollton, Texas-based CyrusOne Inc. The rating
outlook is stable.
"We are also assigning our 'BB-' issue-level rating and '1'
recovery rating to operating subsidiary CyrusOne LP's proposed
$225 million secured revolving credit facility due 2017. The '1'
recovery rating indicates our expectation for very high (90% to
100%) recovery for lenders in the event of a payment default. In
addition, we are assigning our 'B+' issue-level rating and '2'
recovery rating to the company's proposed $500 million of senior
unsecured notes due 2022. The '2' recovery rating indicates our
expectation for substantial (70% to 90%) recovery for noteholders
in the event of a payment default," S&P said.
Rationale
"We expect the company to use proceeds from the proposed debt
financing to repay roughly $475 million of intercompany debt owed
to CBI. Following the IPO, we expect CBI to own 9.8% of common
shares in CyrusOne Inc. and a large majority of operating
partnership shares in CyrusOne LP, which after a 12-month lockout
period, could be exchanged for common shares on a one-to-one
basis. In addition, CyrusOne plans to convert into a REIT in
conjunction with the IPO, which could occur in the fourth quarter
of 2012 or early 2013," S&P said.
"The ratings on CyrusOne Inc. reflect the company's 'highly
leveraged' financial profile, including our expectation for
substantial cash outflows to fund what we consider an ambitious
growth strategy. Pro forma for the proposed debt financing and
initial $300 million IPO, liquidity will be roughly $500 million,
which we consider necessary to fund growth capital expenditures
and shareholder distributions for roughly two years before
CyrusOne will need to raise additional capital. Our assessment of
the company's business risk as 'weak' under our criteria takes
into account our relatively favorable growth expectations for data
center outsourcing by large business customers, but also
recognizes the longer-term risks of aggressive expansion leading
to pricing declines or higher customer churn," S&P said.
"We expect CyrusOne to record healthy revenue growth (+20%) for
the next several years, based on the development of new colocation
space and increased demand from new and existing customers. As a
result, we currently view these revenue trends as supportive of
CyrusOne's aggressive growth strategy. However, we believe its
ongoing capital needs expose the company to unexpected shifts in
supply and demand fundamentals, or to adverse credit market
conditions if it is unable to scale back capital spending in a
timely manner," S&P said.
"CyrusOne provides physical colocation space through 23 data
centers in 9 markets, with a high degree of revenue and square
footage concentration in Cincinnati and various Texas markets,
including Dallas and Houston. The company targets large,
enterprise customers, with no one customer(excluding CBI)
accounting for more than 8% of annualized rent. There is a degree
of revenue concentration in the energy industry, which accounts
for 38% of annualized rent. However, we believe the company's
enterprise customers currently outsource only a modest percentage
of their datacenter needs, providing healthy growth potential in
the energy sector and other verticals, such as online media and
content companies," S&P said.
"We believe the company's focus on large enterprise customers has
resulted in lower revenue churn (3% for 2011 and 4% for the first
nine months of 2012) compared with peers that have a greater mix
of more volatile, small- to medium-sized customers (SMB) or
Internet-based businesses. CyrusOne has been aggressively adding
colocation space, which totaled 895,753 square feet as of Sept.
30, 2012, with 78,000 square feet of colocation space under
development and 762,000 of powered shell space available for
future development. To diversify revenue streams, CyrusOne also
focuses on growing high-margin interconnection revenue, which
currently accounts for a negligible amount of total revenue. We
believe interconnections create network effects and will increase
the retention of CyrusOne's existing customer base and attract new
customers in underpenetrated verticals. However, in our view, it
could take a number of years to meaningfully grow this revenue
stream, because of the company's need to attract more telecom
carriers or large Internet companies to many of its data centers.
Under our base case scenario, we believe colocation space will
continue to rise at current rates of about 20%, and that revenue
growth per square foot will begin to benefit from increased
interconnections over the next few years. We believe the
utilization rate, which was 78% for the third quarter of 2012,
could decline further in the fourth quarter and potentially remain
below 80% in 2013 because of new colocation space added in Phoenix
and Dallas. As a result, we expect total revenue growth in the
low-20% area over the next few years. We believe the EBITDA
margin, which was very healthy compared with the peer group at
roughly 53% for the 12 months ended Sept. 30, 2012, could drop
modestly to the high-40% to low-50% area over the next 12 months,
because of the dip in utilization, but could grow to the mid-50%
area in the longer term because of growth in high-margin
interconnection revenue. We believe that EBITDA will increase at a
mid-teen to low-20% rate in 2012 and 2013, which could accelerate
in later years if the company is able to expand EBITDA margins and
grow interconnection revenue," S&P said.
"Pro forma debt to EBITDA (adjusted for operating leases) was
high, at roughly 5.4x for the 12 months ended Sept. 30, 2012. We
expect this ratio to fall to the low- to mid-4x area in 2013
because of EBITDA growth. We believe that discretionary cash flow
will be in the negative $150 million to $200 million range over
the next few years, because of sizeable capital expenditures and
shareholder distributions," S&P said.
"Under a REIT structure, the company will be required to payout at
least 90% of taxable income in the form of shareholder
distributions. We expect taxable income to be modest over the next
several years, and as a result, we have estimated potential
distributions as a percentage of funds from operations (FFO). Our
expected FFO payout ratio is based on industry peers such as
DuPont Fabros Technology Inc. and Digital Realty Trust Inc., which
had payout ratios of 34% and 68%, respectively, as of the second
quarter of 2012. Based on these peer payout ratios, we have
estimated annual distributions of about $40 million to $50 million
over the next few years, which will continue to increase with
growth in EBITDA. As a result, we expect the company's total
coverage ratio (including interest expense and distributions) to
be in the high-1x area over the next few years. REITS such as
DuPont and Digital tend to have total coverage ratios in the low-
1x area; however, these companies have higher leverage, preferred
dividend payments, and mandatory debt amortization," S&P said.
Liquidity
"We consider CyrusOne's liquidity as 'adequate,' based on our
criteria. Pro forma for the proposed financing and IPO, we expect
sources of liquidity to include cash of roughly $275 million and
full access to the proposed $225 million revolving credit
facility. We assume funds from operations will be about $90
million to $100 million in 2013. Uses of liquidity include modest
working capital cash usage as the company continues to rapidly
expand, and sizeable capital expenditures, which we estimate will
be in the $200 million to $250 million range over the next several
years," S&P said.
"Under a REIT structure, the company will be required to pay out
at least 90% of taxable income in the form of shareholder
distributions. Because of our expectation of negligible to modest
taxable income over the next few years, we have estimated
distributions based on a percentage of FFO and adjusted funds from
operations (AFFO). To compute AFFO, we subtract from FFO certain
recurring real estate expenses, such as maintenance capital
spending and leasing costs. Based on peer payout ratios, we have
estimated annual distributions of about $40 million to $50 million
over the next few years, which will continue to increase with
growth in EBITDA," S&P said.
"We expect the company to maintain an adequate cushion of
compliance against all its covenants. The proposed revolving
credit facility contains financial covenants, including an initial
2.5x senior secured leverage covenant, which steps down to 2x in
2015. The credit agreement also contains a 2x fixed-charge
covenant, with no step-downs, and an initial total debt to gross
asset value covenant of 55%, which tightens to 50% in 2015," S&P
said.
Outlook
"The rating outlook is stable, based on our expectation that the
company will have adequate liquidity to fund growth initiatives
and negative discretionary cash flow over at least the next two
years. Since we expect the company to pursue aggressive capital
spending over the foreseeable future, and continue to experience
discretionary cash outflows, an upgrade would most likely be the
result of a reassessment of the company's business risk profile to
'fair' from 'weak.' Specifically, we could raise the rating if the
company continues to successfully increase its scale, diversify
its customer vertical base, and grow high-margin interconnection
revenue. An upgrade scenario would also require our confidence
that the company will remain well-capitalized, and maintain
adequate liquidity despite capital spending and shareholder
distributions," S&P said.
"Conversely, we could lower the rating if operating performance
weakens because of competitive pressure or over-expansion, causing
utilization to tumble to the low-70% area and debt to EBITDA to
rise to 6x or higher, with little prospect for improvement. A
downgrade could also occur if we came to view liquidity as a
significant risk, because of an unwillingness to scale back
capital spending in conjunction with deterioration in operating
trends coupled with adverse credit market conditions," S&P said.
Ratings List
New Rating
CyrusOne Inc.
Corporate Credit Rating B/Stable/--
CyrusOne LP
CyrusOne Finance Corp.
$500 mil sr unsecd nts due 2022 B+
Recovery Rating 2
CyrusOne LP
$225 mil revolving bank ln due 2017 BB-
Recovery Rating 1
DUNLAP OIL: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Dunlap Oil Company, Inc.
fdba Truck Plaza Cafe, Inc.
759 S. Haskell
Willcox, AZ 85643
Bankruptcy Case No.: 12-23252
Chapter 11 Petition Date: October 24, 2012
Court: U.S. Bankruptcy Court
District of Arizona (Tucson)
Judge: James M. Marlar
Debtor's Counsel: John R. Clemency, Esq.
GALLAGHER & KENNEDY, P.A.
2575 East Camelback Road, Suite 1100
Phoenix, AZ 85016
Tel: (602) 530-8040
E-mail: john.clemency@gknet.com
- and ?
Lindsi M. Weber, Esq.
GALLAGHER & KENNEDY, P.A.
2575 E. Camelback Road
Phoenix, AZ 85016
Tel: (602) 530-8202
Fax: (602) 530-8500
E-mail: lindsi.weber@gknet.com
Scheduled Assets: $10,000,001 to $50,000,000
Scheduled Liabilities: $10,000,001 to $50,000,000
The petition was signed by Theodore Dunlap, president.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Internal Revenue Service 2nd and 3rd $141,883
Centralized Insolvency Operations Quarter 2012
P.O. Box 21126
Philadelphia, PA 19114
Bernard L. Magnussen Rents/Esperanza $51,000
390 Stevick Drive
Atherton, CA 94027
Brown Evans Distributing Vendor $30,974
P.O. Box 5840
Mesa, AZ 85211
Deli Express EA Sween Company Vendor $18,540
Pepsi Cola Bottling Company Vendor $18,536
MSC Distributing Inc. Vendor $15,635
Reddy Ice Corporation Vendor $13,524
Compass Bank Credit Card $11,137
American Express Credit Card $10,829
MCO Inc. Vendor $10,151
Rural Metro Fire Department Services $8,212
Arizona Department of Other $8,141
Economic Security
First Insurance Funding Services $7,748
US Food Service Vendor $7,399
Amerigas Tucson Vendor $6,885
Contractors Bonding & Insurance Services $6,322
Shamrock Foods Vendor $5,375
Revenue Discovery Systems City of Willcox ? $5,104
Sales Tax
Chase Card Member Service Credit Card $4,661
Waste Management Services $3,368
EAGLE LAKE: Creditor Seeks Structured Settlement, Case Dismissal
----------------------------------------------------------------
Judy Harrison at Bangor Daily News reports that a federal
bankruptcy judge has been asked to approve an unconventional
proposal to settle more than $300,000 in debt that an Eagle Lake
convenience store, co-owned by Rep. John Martin, owes creditors.
According to the report, the Portland (Maine) attorney
representing Irving Oil Marketing, which is owed more than
$250,000, filed a motion to dismiss the Eagle Lake Outfitters Inc.
bankruptcy case and suggested a way to pay creditors a portion of
what they are owed. Randy Creswell asked Judge Louis H. Kornreich
to approve a structured settlement under the Chapter 11 rules
rather than convert the case to Chapter 7.
The report says a hearing on Mr. Creswell's motion is scheduled to
be held Nov. 29. The bankruptcy trustee appointed in the case has
until Nov. 21 to file an objection to the motion.
The report relates Mr. Martin, a Democrat and former speaker of
the Maine House, is running for re-election in House District 1,
which includes Eagle Lake and Fort Kent. Mr. Martin's Bald Eagle
convenience store is located on Route 11 in Eagle Lake. Until
September, it was owned by Eagle Lake Outfitters Inc. Mr. Martin
owned 50% of the firm and Gary Voisine of Fort Kent owned the
other 50%, according to court documents. Mr. Voisine was listed
as president.
The report relates the bankruptcy came to public attention in
March during a hearing on a bill Mr. Martin sponsored to allow
mining on Bald Mountain in Aroostook County. Mr. Martin addressed
the Legislature's Environment and Natural Resources Committee to
dispel rumors that he had a conflict of interest because of the
bankruptcy debt, according to a previously published report by the
Maine Center for Public Interest Reporting.
The report notes, last month, Judge Kornreich approved the sale of
Eagle Lake Outfitters Inc. to Bald Eagle Inc. for $125,000. Bald
Eagle is a new enterprise formed by Messrs. Martin and Voisine.
The report adds the $125,000 is all that is left in the "estate"
of Eagle Outfitters. It is being administered by Bangor attorney
Michael S. Haenn, who was appointed by the judge to act as the
bankruptcy trustee in the case.
Eagle Lake Outfitters Inc. filed for Chapter 11 protection on
Feb. 15, 2012 (Bankr. D. Maine Case No. 12-10120). William J.
Smith, Esq., represents the Debtor.
EASTMAN KODAK: Has $37-Mil. Operating Loss in 3rd Quarter
---------------------------------------------------------
Eastman Kodak Company reported Oct. 30 that it made continued
performance improvement in segment profitability for the third
quarter of 2012 as a result of tightened focus on the company's
most profitable customer accounts and businesses and a substantial
reduction in costs. The company's focus on cost reductions and
profitability resulted in a decrease in selling, general and
administrative expenses of $63 million, a 24% reduction from the
same period in the prior year.
The segment operating loss for the third quarter was $37 million,
an $87 million improvement from the prior year. The company's
gross profit margin increased by 2 percentage points. On a GAAP
basis, the third quarter loss from continuing operations before
interest expense, other income (charges), net, reorganization
items, net and income taxes was $193 million, compared to the
prior year quarter loss of $167 million. Excluding restructuring
costs, the operating loss was $76 million.
The company's worldwide cash balance was $1.13 billion at the end
of the third quarter. The company has submitted to the U.S.
Bankruptcy Court for approval an agreement with the Official
Committee of Retired Employees that will substantially reduce the
company's payments for non-pension benefits for U.S. retirees,
beginning in 2013, an action that would save the company about
$100 million in cash expenditures next year (prior to reduction
for appropriate expenses related to the agreement).
Kodak's revenue of $1.018 billion in the third quarter represented
a decline of 19% from the year-ago quarter. This reduction
reflects strategic decisions to focus on profitable businesses and
accounts, lower sales of traditional products, unfavorable foreign
exchange impact, and soft industry demand as a result of the
broader economic downturn in some businesses and regions. The net
loss for the quarter was $312 million. Excluding restructuring
and reorganization costs, the loss would have narrowed to $139
million, an improvement of $66 million over the prior-year
quarter.
"Since our Chapter 11 filing in January, we have focused on the
businesses that are core to our future strategic direction and
exited businesses that were unprofitable," said Antonio M. Perez,
Chairman and Chief Executive Officer. "The actions we are taking
in response to economic and market conditions are working and will
position us to emerge in 2013 as a growing, profitable,
sustainable company."
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.
As of July 31, 2012, the Company had total assets of
$3.93 billion, total liabilities of $5.32 billion and total
stockholders' deficit of $1.39 billion.
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.
EMSCHARTS: Jury Verdict on Patent Leads Firm to Bankruptcy
----------------------------------------------------------
Golden Hour disclosed that after a 6-year suit in Federal Court
and the US Circuit Court of Appeals, and reexamination by the
USPTO of the US Patent 6,117,073, its suit against emsCharts, the
resulting jury verdict, pending post-trial motion for judgment and
permanent injunction, has caused emsCharts' insolvency.
In its petition for bankruptcy filed on Oct. 17, 2012 with the
U.S. Bankruptcy Court, Peter Goutmann, President of emsCharts,
stated, "One thing is certain if the District Court (Federal Court
in the Eastern District of Texas hearing the Patent infringement
matter) enters judgment in favor of Golden Hour, emsCharts will
immediately become insolvent."
Golden Hour believes emsCharts chose bankruptcy to forestall
judgment and a potential injunction against its operations as well
as to stall a second patent suit for infringement and induced
infringement of US Patent 7,668,736.
Golden Hour is now the single, largest, creditor of emsCharts and
will aggressively pursue all legal recourse available to see that
damages caused by emsCharts' infringement are paid and that the
infringement discontinues.
"We are pleased that the court has sided with Golden Hour over
this blatantly infringing system," said Dr. Kevin Hutton, CEO of
Golden Hour. "This competitor has been directly infringing and
inducing infringement for nearly a decade through many partners,
clients, and other entities."
"Golden Hour is committed to supporting the emergency medical
transportation industry with integrated and innovative technology.
It is unfortunate that this competitor chose a path that required
Golden Hour to be distracted from helping the EMS industry remain
sustainable. Choosing to bankrupt their company is a disservice
to their customers, employees, partners, and the industry," said
Dr. Hutton. "We extend our sincere appreciation to our loyal
customers for their continued support during this lengthy
litigation process.
Golden Hour US Patent 6,117,073 involves software systems
integration between Computer Aided Dispatch (CAD), Clinical
Charting, and Billing. Golden Hour US Patent 7,668,736 involves
sending protected health information and vehicle tracking
information over a public network such as the Internet.
Users of emsCharts and other Clinical Charting systems that are
integrated with any CAD or Billing software products or services,
or are transmitting protected health information and flight-
tracking information over the Internet, should contact Golden Hour
or assess their potential infringement of Golden Hour's
intellectual property.
About Golden Hour
Golden Hour Data Systems, Inc. http://www.GoldenHour.com-- is the
only patented integrated computerized solution for the emergency
medical transportation industry. Golden Hour provides Computer
Aided Dispatch, Clinical Charting, and Data Analytics solutions
through a Software-as-a-Service (SaaS) delivery model. Golden
Hour also offers a complete line of billing and collection
services including; AR collection enhancement services, aged AR
Collections, outsourced or in house billing and collections
assessments, compliance auditing services, and corporate integrity
agreement management services. Golden Hour is the leader within
the air medical services industry and increases overall
collections, reduces write-offs, reduces denials, and ensures
government compliance, including HIPAA, NEMSIS, 5010 and
fractional loaded mileage compliance. Golden Hour actively
protects its intellectual property rights. Golden Hour is
independent and privately held with no industry providers having
any ownership interest in Golden Hour.
FOREVERGREEN WORLDWIDE: Chief Financial Officer Frampton Resigns
----------------------------------------------------------------
The Board of Directors of ForeverGreen Worldwide Corporation has
accepted the resignation of Paul T. Frampton as Chief Financial
Officer and Treasurer of the Company. Mr. Frampton's resignation
was effective as of Oct. 12, 2012. Mr. Frampton has resigned his
positions with the Company to pursue other interests.
The Company intends to appoint a new Chief Financial Officer and
Treasurer in the near future.
About ForeverGreen Worldwide
Orem, Utah-based ForeverGreen Worldwide Corporation is a holding
company that operates through its wholly owned subsidiary,
ForeverGreen International, LLC. The Company's product philosophy
is to develop, manufacture and market the best of science and
nature through innovative formulations as it produces and
manufactures a wide array of whole foods, nutritional supplements,
personal care products and essential oils.
Sadler, Gibb & Associates, LLC, in Salt Lake City, Utah, expressed
substantial doubt about ForeverGreen's ability to continue as a
going concern, following the Company's results for the fiscal year
ended Dec. 31, 2011. The independent auditors noted that the
Company has suffered accumulated net losses of $34,573,495 and has
had negative cash flows from operating activities during the year
ended Dec. 31, 2011. of $909,844.
The Company's balance sheet at June 30, 2012, showed $2.1 million
in total assets, $5.8 million in total liabilities, and a
stockholders' deficit of $3.7 million.
"The Company has not yet established an ongoing source of revenues
sufficient to cover its operating costs and to allow it to
continue as a going concern. The Company has incurred operating
losses during the six months ended June 30, 2012, of $165,663 and
has an accumulated net loss totaling $34,739,158. The ability of
the Company to continue as a going concern is dependent on the
Company obtaining adequate capital to fund operating losses until
it becomes profitable. If the Company is unable to obtain adequate
capital, it could be forced to cease operations."
FREDERICK'S OF HOLLYWOOD: Incurs $6.4MM Net Loss in Fiscal 2012
---------------------------------------------------------------
Frederick's of Hollywood Group Inc. filed with the U.S. Securities
and Exchange Commission its annual report on Form 10-K disclosing
a net loss of $6.43 million on $111.40 million of net sales for
the year ended July 28, 2012, compared with a net loss of $12.05
million on $119.61 million of net sales for the year ended
July 30, 2011. The Company's balance sheet at July 28, 2012,
showed $41.47 million in total assets, $42.25 million in total
liabilities and a $783,000 total shareholders' deficiency. A copy
of the Form 10-K is available for free at http://is.gd/h9NHC7
About Frederick's of Hollywood
Frederick's of Hollywood Group Inc. (NYSE Amex: FOH) --
http://www.fredericks.com/-- through its subsidiaries, sells
women's intimate apparel, swimwear and related products under its
proprietary Frederick's of Hollywood brand through 122 specialty
retail stores, a world-famous catalog and an online shop.
Frederick's of Hollywood sought bankruptcy in July 10, 2000. On
Dec. 18, 2002, the court approved the company's plan of
reorganization, which became effective on Jan. 7, 2003, with the
closing of the Wells Fargo Retail Finance exit financing facility.
FRISCO SUMMIT: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Frisco Summit, LP
3029 Ohio Drive
Frisco, TX 75035
Bankruptcy Case No.: 12-42852
Chapter 11 Petition Date: October 23, 2012
Court: U.S. Bankruptcy Court
Eastern District of Texas (Sherman)
Debtor's Counsel: Richard W. Ward, Esq.
6860 N. Dallas Parkway, Suite 200
Plano, TX 75024
Tel: (214) 220-2402
Fax: (972) 499-7240
E-mail: rwward@airmail.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Stanley V. Graft, manager of Frisco
Summit GP, LLC.
H&M OIL & GAS: Plan Pays Secured Creditor With Crude Oil
--------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that H&M Oil & Gas LLC, an oil and natural-gas exploration
and production company, filed a Chapter 11 plan designed to pay
lender Prospect Capital Corp. by delivery of crude oil rather than
cash. A hearing is set for Nov. 20 in U.S. Bankruptcy Court in
Dallas for approval of the explanatory disclosure statement.
According to the report, Prospect, which is said in a court filing
to be owed $88.8 million, offered to file a plan that would
provide a $100,000 "gift" to unsecured creditors so they can have
a "meaningful payment." The bankruptcy judge gave H&M two months
to confirm a plan, or she would allow Prospect to file its own.
The report relates that H&M's plan is designed so shareholder
Scattered Corp. can retain ownership because the reorganization
purports to pay creditors in full. For Prospect, the currency
under the plan won't be cash. Instead, it will be "volumetric
production payments," or the delivery of specified amounts of
crude oil produced from some of H&M's wells. Prospect's claim is
divided into a secured class and an unsecured class for the
deficiency claim. The plan would have the bankruptcy judge hold a
hearing to value Prospect's collateral. The court will also make
a determination about the value of crude oil, thus calculating how
much to oil deliver in payment of Prospect's claim.
The report notes that 90% of the volumetric production payments
will go toward Prospect's secured claim, with the remaining
10% earmarked for Prospect's unsecured deficiency claim. The plan
is evidently based on the assumption that Prospect will vote
against the plan. To have a class that accepts, H&M created a
class of unsecured creditors to be paid in full over five years.
The volumetric production payments aren't liens, H&M said in the
disclosure statement. Instead, they are akin to overriding
royalty interests that will be filed in land records were the
wells are located.
About H&M Oil
H&M Oil & Gas, LLC, filed a bare-bones Chapter 11 petition
(Bankr. N.D. Tex. Case No. 12-32785) in its hometown Dallas on
April 30, 2012. Another entity, Anglo-American Petroleum Corp.
(Case No. 12-32786) simultaneously filed for Chapter 11. H&M Oil
disclosed $297,119,773 in assets and $77,463,479 in liabilities as
of the Chapter 11 filing.
H&M Oil & Gas is an oil and gas production and development
company. H&M, through its operating company, H&M Resources LLC,
is focused on developing its leases in the Permian basin and Texas
panhandle. Dallas, Texas-based Anglo-American Petroleum --
http://www.angloamericanpetroleum.com/-- is the holding
corporation for H&M Oil.
Judge Barbara J. Houser presides over the case. The Debtors are
represented by Keith William Harvey, Esq., at Anderson Tobin PLLC,
in Dallas. Lain Faulkner & Co., PC, serves as financial adviser.
Prospect Capital Corporation, the Debtors' lone secured creditor,
is represented in the case by Timothy A. Davidson II, Esq., and
Joseph P. Rovira, Esq., at Andrews Kurth LLP. The U.S. Trustee
has not appointed a creditors' committee.
HARPER BRUSH: Court Approves Plan to Auction Assets
---------------------------------------------------
Diane Vance at The Fairfield Ledger Village Soup says the motion
to sell substantially all of Harper Brush Works Inc.'s assets and
the auction process was approved on Oct. 30, 2012, in U.S.
Bankruptcy Court in the Southern District of Iowa. The deadline
to submit bids is Nov. 14, 2012.
About Harper Brush Works
Fairfield, Iowa-based Harper Brush Works, Inc., filed a Chapter 11
petition (Bankr. S.D. Iowa) in Des Moines on May 29, 2012.
Family-owned Harper Brush -- http://www.harperbrush.com/--
provides more than 1,000 products, including pushbrooms, mops,
floor squeegees, automotive brushes, dust pans, and buckets. The
Company disclosed assets of $10.4 million against debt totaling
$10 million, including $6 million owing to secured creditors.
Judge Anita L. Shodeen presides over the case. Donald F. Neiman,
Esq., and Jeffrey D. Goetz, Esq., at Bradshaw, Fowler, Proctor &
Fairgrave, P.C., serve as bankruptcy counsel to the Debtor.
Equity Partners CRB LLC serves as the Debtor's investment banker.
An official committee of unsecured creditors has been appointed in
the case. Richard S. Lauter, Esq., and Thomas R. Fawkes, Esq., at
Freeborn & Peters LLP, in Chicago, represents the Committee as
general bankruptcy counsel. Joseph A. Peiffer, Esq., at
Day Rettig Peiffer, P.C., in Cedar Rapids, Iowa, represents the
Committee as local counsel.
HAWAIIAN TELCOM: Stock Trading Restrictions Expired Oct. 28
-----------------------------------------------------------
Hawaiian Telcom Holdco, Inc. disclosed that the restrictions on
trading in its common stock, which went into effect April 27, 2012
pursuant to Article VII of the Company's Amended and Restated
Certificate of Incorporation, expired on Oct., 28, 2012, the
second anniversary of the date on which the Company emerged from
Chapter 11 bankruptcy protection. The trading restrictions had
served to avoid potentially adverse tax consequences to the
Company.
"We are very pleased the trading restrictions on our common stock
have expired," said Eric K. Yeaman, Hawaiian Telcom's president
and CEO. "The temporary trading restrictions were essential in
protecting certain tax benefits and preserved significant value
for Hawaiian Telcom and our shareholders, but now investors are
free to more fully evaluate the prospects of ownership in the
Company," Yeaman added.
About Hawaiian Telcom
Hawaiian Telcom Communications, Inc.--
http://www.hawaiiantel.com/-- Based in Honolulu, Hawaii, operates
a telecommunications company, which offers an array of
telecommunications products and services including local and long
distance service, high-speed
Internet, wireless services, and print directory and Internet
directory services.
The Company and seven of its affiliates filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 08-13086) on Dec. 1,
2008. Judge Peter Walsh of the U.S. Bankruptcy Court for the
District of Delaware on Dec. 30, 2008, approved the transfer of
the Chapter 11 cases to the U.S. Bankruptcy Court for the District
of Hawaii before Judge Lloyd King (Bankr. D. Hawaii Lead Case No.
08-02005).
Richard M. Cieri, Esq., Paul M. Basta, Esq., and Christopher J.
Marcus, Esq., at Kirkland & Ellis LLP, represented the Debtors in
their restructuring efforts. The Debtors tapped Lazard Freres &
Co. LLC as investment banker; Zolfo Cooper Management LLC as
business advisor; Deloitte & Touche LLP as independent auditors;
and Kurztman Carson Consultants LLC as notice and claims agent.
An official committee of unsecured creditors was appointed and
represented by Christopher J. Muzzi, Esq., at Moseley Biehl
Tsugawa Lau & Muzzi LLC, in Honolulu, Hawaii.
When the Debtors filed for protection from their creditors, they
disclosed total assets of $1,352,000,000 and total debts of
$1,269,000,000 as of Sept. 30, 2008.
Judge King entered on Dec. 30, 2009, an order confirming a plan of
reorganization for Hawaiian Telcom. The plan was declared
effective in October 2010 after the Reorganized Debtors obtained
the backing of the U.S. Federal Communications Commission and the
Hawaii Public Utilities Commission. Shults & Tamm was appointed
the litigation trustee, and is represented by Christopher Muzzi,
Esq., at Moseley Biehl Tsugawa Lau & Muzzi in Honolulu.
HAWKER BEECHCRAFT: Files Revised Plan With Stock for Creditors
--------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Hawker Beechcraft Inc. filed a modified
reorganization plan and disclosure materials Oct. 29 after
negotiations for a sale to China's Superior Aviation Beijing Co.
broke off earlier this month.
According to the report, the plan is supported by the official
creditors' committee. The aircraft manufacturer's proposed
disclosure statement said the plan is also backed by a
"substantial majority" of holders of the senior credit and a
majority of holders of senior notes. The creditors' agreement to
support the plan currently has a Nov. 19 deadline for approval of
the explanatory disclosure statement. Hawker previously said it
intends to hold a Nov. 15 hearing for approval of disclosure
materials.
Since the sale to Superior fell through, Hawker said it will
either sell or close the jet-manufacturing business. The
disclosure statement tells creditors that recovery projections
include receiving no value from the jet business. Hawker will
discontinue warranty coverage for some jet models.
The report relates that the revised plan still offers 81.9% of the
new stock in return for $921 million of the $1.83 billion owing on
the senior credit. Unsecured creditors are to receive the
remaining 18.9% of the new stock. Taking into account the
distribution from their unsecured deficiency claims, holders of
the senior credit will receive 86% of the new stock. The senior
credit holders are projected to have a 43.1% recovery from the
plan, according to the disclosure statement.
The repot notes that general unsecured creditors' recovery is a
projected 5.7% to 6.3%. The recovery by holders of $510 million
in senior notes is predicted to be 9.2% to 10%. The recovery by
senior noteholders is larger because they benefit from the
subordination of $308 million in subordinated notes. The
subordinated noteholders receive nothing.
According to Bloomberg, the emergence from bankruptcy will be
financed with a $530 million credit, consisting of a $330 million
term loan and a $200 million revolving credit. Hawker's $183
million in 8.5% senior unsecured notes due 2015 traded on Oct. 2
for 19.5 cents on the dollar, according to Trace, the bond-price
reporting system of the Financial Industry Regulatory Authority.
The $302 million in 8.875% senior unsecured notes due 2015 traded
on Sept. 13 for 19.5 cents on the dollar, Trace said.
Total debt for borrowed money is $2.55 billion. Other claims
include pensions underfunded by $493 million.
The original version of the plan was worked out with lenders
before the Chapter 11 filing on April 3.
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. The Committee's
financial advisor is FTI Consulting, Inc.
HAWKER BEECHCRAFT: Attorney Fees Draw U.S. Trustee's Ire
--------------------------------------------------------
The Associated Press reported that the U.S. Trustee in the Hawker
Beechcraft Inc. bankruptcy asked U.S. Bankruptcy Judge Stuart
Bernstein Oct. 25 to reject the fee application made by the
company's lawyers, calling it excessive and unreasonable.
According to the report, U.S. Trustee Tracy Hope Davis objected to
the interim fee request for more than $12 million for the first
three months of Hawker's case. Ms. Davis asked Judge Bernstein to
reject any fees incurred in connection with seeking bonuses for
the eight senior executives.
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. The Committee's
financial advisor is FTI Consulting, Inc.
HEISMAN PROPERTIES: St. Louis Seeks Developer for Municipal Bldg
----------------------------------------------------------------
Amir Kurtovic at St. Louis Business Journal reports that the city
of St. Louis is looking for developers who have a plan for the
Municipal Courts building at 1320 Market Street, which has been
vacant since 2002. The city will accept plans to purchase and
redevelop the property until Nov. 30.
The report notes the three-story building has 160,000 square feet
of space on three acres and was bought by California-based
developer Heisman Properties in 2009 for a planned $40 million
office and restaurant space redevelopment.
According to the report, the developer failed and filed for
Chapter 11 bankruptcy in 2010 leaving the St. Louis Comptroller's
Office, which manages the city's surplus property, with a vacant
building again.
The report relates Jim Garavaglia, the asset manager for the
comptroller's office, said the building was listed with a
commercial real estate company for a year and the city didn't get
any serious offers.
The report adds the minimum purchase price for the building is
$2,125,000.
HERITAGE COMPANY: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: The Heritage Company, L.P.
P.O. Box 18
Penns Park, PA 18943
Bankruptcy Case No.: 12-19950
Chapter 11 Petition Date: October 23, 2012
Court: U.S. Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Magdeline D. Coleman
Debtor's Counsel: Myron A. Bloom
MYRON A. BLOOM LLC
1500 Walnut Street, Suite 1500
Philadelphia, PA 19102
Tel: (215) 545 0019
E-mail: myron@myronbloom.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Chad Novak, president of general
partner.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
American Dining Corporation 12-19948 10/23/12
HOMELAND SECURITY: Trevor Stoffer Named Chief Operating Officer
---------------------------------------------------------------
The Board of Directors of Timios National Corporation, formerly
known as Homeland Security Capital Corp, appointed Trevor Stoffer
to serve as Chief Operating Officer of the Company effective
Oct. 23, 2012.
Mr. Stoffer, age 39, has been a director of the Company since
Oct. 2, 2012, and since August 2008, founded and has been the
President and Chief Executive Officer of Timios, Inc., a wholly-
owned, indirect subsidiary of the Company as of August 2011.
Prior to founding Timios, Inc., Mr. Stoffer was the Executive Vice
President of Lenders First Choice, a provider of title insurance
and settlement services to mortgage lenders nationwide, from
September 2002 to January 2008, where again was one of the
founders and initially managed the California operations and
implementation of software systems and later managed corporate
development, where he served as the advisor to the executive staff
on process design, systems utilization and automation of workflow.
Mr. Stoffer earned a Bachelor of Science degree from the
University of California, Chico, in business administration.
There are no arrangements or understandings between Mr. Stoffer
and any other person pursuant to which Mr. Stoffer was appointed
Chief Operating Officer. There are no transactions to which the
Company is a party and in which Mr. Stoffer has a material
interest that is required to be disclosed under Item 404(a) of
Regulation S-K. Mr. Stoffer has no family relations with any
directors or executive officers of the Company.
About Homeland Security
Homeland Security Capital Corporation is an international provider
of specialized technology-based radiological, nuclear,
environmental disaster relief and electronic security solutions to
government and commercial customers.
In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, Coulter & Justus,
P.C., in Knoxville, Tennessee, noted that Related Party Senior
Notes Payable totalling $5.55 million are due and payable. As of
Dec. 31, 2011, the Company has a net capital deficiency in
addition to a working capital deficiency, which raises substantial
doubt about its ability to continue as a going concern.
The Company reported a net loss of $3.98 million on $0 of net
revenue for the year ended June 30, 2011.
The Company's balance sheet at June 30, 2012, showed $9.03 million
in total assets, $11.82 million in total liabilities, $169,768 in
warrants payable, and a $2.96 million total stockholders' deficit.
LEGENDS GAMING: Plan Provides 67% Recovery to Senior Lenders
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Legends Gaming LLC filed a proposed Chapter 11 plan
last week under which the casinos in Bossier City, Louisiana, and
Vicksburg, Mississippi, will be sold for $125 million to an
affiliate of the Chickasaw Nation.
According to the report, no bids were submitted in competition
with the tribe's, so an auction this month was canceled. The
tribe owns 17 casinos already. Legends' bankruptcy in Shreveport,
Louisiana, is the company's second since 2008. To comply with
state gaming regulations, the transfer of ownership must be
accomplished through the sale of the casinos' stock.
The report relates that consequently, approval of the sale will
occur in conjunction with confirmation of a Chapter 11
reorganization plan. The disclosure statement explaining the plan
was also filed on Oct. 26. The federally recognized Chickasaw
tribe will pay the purchase price with $61.5 million in new first-
lien debt and $36 million in second-lien debt. The remainder will
be in cash. Although the price is less than the $181.2 million in
first-lien debt, the lenders previously announced support for the
sale. The plan will generate a 67% recovery for the first lien
lenders. The second-lien lenders, owed $116.3 million, will
recover nothing on their secured claim because the properties
aren't worth as much as the first-lien debt.
The report notes that the deficiency claims of the first-lien
lenders, along with the second-lien lenders' claims, will
participate in the class of unsecured creditors, where claims are
projected to total $177 million, according to the disclosure
statement. If unsecured creditors vote in favor of the plan as a
class, they will split $40,000, for a recovery amounting to a
small fraction of 1%. The Chickasaw tribe's properties include
the Lone Star Park horse racetrack near Dallas.
About Legends Gaming
Legends Gaming LLC, owns gaming facilities located in Bossier
City, Louisiana, and Vicksburg, Mississippi, operating under the
DiamondJack's trade name.
Legends Gaming LLC, and five related entities, including Louisiana
Riverboat Gaming Partnership, filed Chapter 11 petitions (Bankr.
W.D. La. Case No. 12-12013) in Shreveport, Indiana, on July 31,
2012, to sell the business for $125 million to Global Gaming
Solutions LLC, absent higher and better offers.
Legends Gaming acquired the business from Isle of Capri Casinos
Inc., in 2006 for $240 million. After breaching covenant with
lenders, the Debtors in March 2008 sought Chapter 11 protection,
jointly administered under Louisiana Gaming Partnership (Case No.
08-10824). The Debtors emerged from bankruptcy in September 2009
and retained ownership and operation of two "DiamondJacks" hotels
and casinos in Bossier City and Vicksburg. The Plan restructured
$162.1 million owed to the first lien lenders and $75 million owed
to secured lien lenders, which would be paid in full, with
interest, over time.
The Debtors' properties comprise 60,000 square feet of gaming
space with 1,913 slot machines, 48 table games and 693 hotel
rooms. Revenues in fiscal 2011 were $99.8 million in Louisiana
and $39.7 million in Mississippi.
As of July 31, 2012, first lien lenders are owed $181.2 million
and second lien lenders are owed $114.7 million. Louisiana
Riverboat Gaming Partnership disclosed $104,846,159 in assets and
$298,298,911 in liabilities as of the Chapter 11 filing.
Attorneys at Heller, Draper, Hayden Patrick & Horn serve as
counsel to the Debtors. Sea Port Group Securities, LLC is the
financial advisor. Kurtzman Carson Consultants LLC as is the
claims and notice agent. The Debtors have tapped Jenner & Block
LLP as special counsel.
LIBERACE FOUNDATION: Case Summary & Unsecured Creditor
------------------------------------------------------
Debtor: Liberace Foundation For The Creative And Performing Arts
1775 E. Tropicana Avenue
Las Vegas, NV 89119
Bankruptcy Case No.: 12-22004
Chapter 11 Petition Date: October 24, 2012
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Mike K. Nakagawa
Debtor's Counsel: Nedda Ghandi, Esq.
GHANDI LAW OFFICES
601 South 6th Street
Las Vegas, NV 89101
Tel: (702) 878-1115
E-mail: bankruptcy@ghandilaw.com
Scheduled Assets: $10,000,001 to $50,000,000
Scheduled Liabilities: $1,000,001 to $10,000,000
The petition was signed by Anna Nateece, business manager.
Debtor's List of Its Largest Unsecured Creditors contains only one
entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
US Bank National Association -- $1,269,000
800 Nicollet Mall
Minneapolis, MN 55402
LI-ION MOTORS: Delays Form 10-K for Fiscal 2012
-----------------------------------------------
Li-ion Motors Corp. informed the U.S. Securities and Exchange
Commission that it will be delayed in filing its annual report on
Form 10-K for the period ended July 31, 2012. The management is
in the process of finalizing the operating results of its 2012
fiscal year. The information could not be assembled and analyzed
without unreasonable effort and expense to the Company. The Form
10-K will be filed as soon as practicable and within the 15 day
extension period.
About Li-ion Motors
Las Vegas, Nev.-based Li-ion Motors Corp. was incorporated under
the laws of the State of Nevada in April 2000. The Company is
currently pursuing the development and marketing of electric
powered vehicles and products based on the advanced lithium
battery technology it has developed.
The Progressive Insurance Automotive X-Prize, competition was
announced in April 2008 as a way to spur the development of clean,
high-mileage vehicles, and is funded for a total of $10 million,
which will be divided among three separate categories. The
Company was the winner in its entry class. On Oct. 27, 2010, the
Company received net proceeds of approximately $2.30 million from
X-Prize and was recorded as other income in the Company's
consolidated statement of operations for the year ended July 31,
2011.
The Company does not currently have any arrangements for financing
and it may not be able to find such financing if required.
Obtaining additional financing would be subject to a number of
factors, including investor sentiment. Market factors may make
the timing, amount, terms or conditions of additional financing
unavailable to it. These uncertainties raise substantial doubt
about the ability of the Company to continue as a going concern.
In its auditors' report accompanying the consolidated financial
statements for the fiscal year ended July 31, 2011, Madsen &
Associates, CPA's Inc., Murray, Utah, expressed substantial doubt
about Li-on Motors' ability to continue as a going concern. The
independent auditors noted that the Company did not have any
revenue from vehicle sales in 2011, does not have cash flows to
support its current operations and needs reserve to cover expenses
in future periods as the Company continues to incur losses from
operations.
The Company's balance sheet at April 30, 2012, showed $2.14
million in total assets, $4.72 million in total liabilities and a
$2.58 million total stockholders' deficiency.
LIGHTHOUSE IMPORTS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Lighthouse Imports, LLC
dba Toyota of St. Augustine
St. Augustine Scion
Lighthouse Toyoto of St. Augustine
First Coast Toyota
Lighthouse Scion
St. Augustine Toyota
Lighthouse Toyota
2995 US Highway 1 S
St. Augustine, FL 32086
Bankruptcy Case No.: 12-14459
Chapter 11 Petition Date: October 24, 2012
Court: U.S. Bankruptcy Court
Middle District of Florida (Orlando)
Judge: Karen S. Jennemann
Debtor's Counsel: R. Scott Shuker, Esq.
LATHAM SHUKER EDEN & BEAUDINE, LLP
P.O. Box 3353
Orlando, FL 32802
Tel: (407) 481-5800
Fax: (407) 481-5801
E-mail: bknotice@lseblaw.com
Scheduled Assets: $10,000,001 to $50,000,000
Scheduled Liabilities: $10,000,001 to $50,000,000
The petition was signed by Howard F. Hubler, managing member.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
World Omni Financial Corp. 2995 US Highway 19 $22,790,000
190 Jim Morgan Boulevard St. Augustine, FL
Deerfield Beach, FL 33442 32086
Werner TSA, LLC Loan/Note $1,200,000
200 Mansell Court East
Suite 510
Roswell, GA 30076
Shutts & Bowen Trade Debt $47,657
300 S. Orange Avenue, Suite 1000
Orlando, FL 32801
Tire Kingdom Trade Debt $22,680
Morrison, Brown, Argiz et al Trade Debt $13,716
Reynold & Reynolds Trade Debt $12,705
AutoTrader.com, LLC Trade Debt $6,448
BP Business Solutions Trade Debt $6,347
Advance Auto Parts Trade Debt $3,867
Wilson Auto Leather & Acces. Trade Debt $3,391
City Wide Maintenance Trade Debt $3,347
Money Pages Trade Debt $3,000
FFVA Mutual Ins. Co. Trade Debt $2,804
Auto Refinishers, Inc. Trade Debt $2,350
Classified Ventures Trade Debt $2,270
Clear Channel Outdoor Trade Debt $2,250
Topline Automotive, LLC Trade Debt $1,973
3 Bird Marketing Trade Debt $1,800
Sharons Auto Interiors Trade Debt $1,595
American Tire Distributors Trade Debt $1,589
LINDBERG ROAD: Star Financial Balks at Plan to Pay $2.5-Mil. Loan
-----------------------------------------------------------------
Baylee Pulliam at The Herald Bulletin reports that Star Financial
Bank objected to the plan of Lindberg Road Church of Christ to pay
back a $2.5 million line of credit which the church used to expand
its child care center and remodel its affiliated Anderson
Christian School.
The report says Star Financial said it would receive more from a
Chapter 7 liquidation of the church's real property assets.
According to the report, the expansion and remodeling was funded
through life insurance policies involving some of its senior
members. In late 2006, the church bought $4.35 million in life
insurance policies on 11 elder members.
The report relates the death benefits on those policies -- or
their sale on a secondary market -- would back the $2.5 million
line of credit through Star Financial Bank to fund the expansion
and remodeling.
The report said David Kleiman, Esq., representing the church,
noted Lindberg Road tried unsuccessfully to settle the matter
before filing for Chapter 11 bankruptcy earlier this year.
The report relates Mr. Kleiman said a hearing is set for Nov. 27
to decide a course of action.
L.P. FLEMING: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: L.P. Fleming, Jr. Trucking, Inc.
3832 West Street
Hyattsville, MD 20785
Bankruptcy Case No.: 12-29259
Chapter 11 Petition Date: October 23, 2012
Court: U.S. Bankruptcy Court
District of Maryland (Greenbelt)
Judge: Paul Mannes
Debtor's Counsel: Rowena Nicole Nelson, Esq.
LAW OFFICE OF ROWENA N. NELSON & ASSOC.
1801 McCormick Drive, Suite 150
Largo, MD 20774
Tel: (301) 358-3348
Fax: (877) 728-7744
E-mail: rnelson@rnnlawmd.com
Estimated Assets: $0 to $50,000
Estimated Debts: $10,000,001 to $50,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Leo Falkensammer, vice president.
MARK TIPTON: Court Approves Plan to Pay $24 Million in Debt
-----------------------------------------------------------
Chris Bagley, staff writer at Triangle Business Journal, reports
that Judge Stephanie Humrickhouse of the U.S. Bankruptcy Court for
the Eastern District of North Carolina has approved plans by
developer Mark Tipton to repay a sliver of more than $24 million
in debt connected to office parks, rental homes, and his house in
Wake Forest.
According to the report, the plan approved by Judge Humrickhouse
calls for Mr. Tipton to repay $55,300 of some $23 million in
unsecured business-related debt. Mr. Tipton also plans to
surrender two rental properties.
The report adds the plan requires Mr. Tipton to repay virtually
all of the two mortgages, totaling nearly $1.2 million, that
Bank of America held on his home, while discharging most of a
$1 million home-equity loan made by Gateway Bank.
According to Triangle Business Journal, Mr. Tipton reported some
$66 million in potential claims by creditors. Most of that was
connected to personal guarantees on loans for several of his
development companies; in later filings, Mr. Tipton argued that
he's personally responsible for less than $30 million.
Mark Tipton filed for Chapter 11 bankruptcy (Bankr. E.D. N.C. Case
No. 12-00703) on Jan. 30, 2012. According to a report by
Reflector.com, Mr. Tipton is an East Carolina University Trustee.
The petition listed $66 million in liabilities, including amounts
disputed by Mr. Tipton, mostly from Whistler Investment Group LLC
and other corporate entities that Mr. Tipton controlled.
MF GLOBAL: CFTC Says L/Cs to Be Treated Same as Cash
----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the U.S. Commodity Futures Trading Commission laid
out a theory explaining why posting letters of credit shouldn't
enable ConocoPhillips to avoid losses suffered by customers of
commodity broker MF Global Inc. who posted cash as margin for
their accounts.
According to the report, the CFTC made its filing with U.S.
District Judge Katherine B. Forrest in support of the position
taken by James Giddens, the MF Global brokerage trustee.
Judge Forrest decided early this month that the dispute involves
legal issues that must be decided in district court, not
bankruptcy court. ConocoPhillips posted $205 million in letters
of credit that were never drawn by MF Global or the trustee.
Mr. Giddens took the position that CFTC regulations require
treating the letters of credit as though they were cash. The
outcome of the dispute will determine whether larger commodity
customers can avoid loses in a brokerage bankruptcy by depositing
letters of credit rather than cash as margin. The CFTC laid out
the history of the adoption of current regulations providing that
the "full proceeds" of letters of credit are to be treated the
same as cash.
The report relates that ConocoPhillips has taken the position that
Mr. Giddens never had any right to draw the letter of credit.
The report notes that consequently, there never have been any
proceeds to be treated as cash, the oil producer argues. The CFTC
pointed to other portions of the regulations saying the trustee
has the power to draw letters of credit once bankruptcy occurs,
regardless of whether the letters of credit by their own terms
permit a draw. The CFTC contends letters of credit must be
treated the same as cash so larger customers don't come out better
than smaller customers in bankruptcy. The CFTC says its analysis
represents a "30-year-old interpretation" of the regulations that
must be given "deference" by the court. ConocoPhillips made other
arguments the CFTC rebutted. Among them, the customer contends
the CFTC exceeded its rulemaking authority.
According to Bloomberg, Mr. Giddens also filed a brief at the end
of the week taking sides with the CFTC. So that the letters of
credit will have the same effect as cash margin, Mr. Giddens
contends the letters of credit should be a deduction from any
distributions ConocoPhillips receives in the MF Global
liquidation. ConocoPhillips will file its papers on Nov. 23.
Mr. Giddens and the CFTC will file reply papers on Dec. 3.
The Bloomberg report discloses that when the MF Global liquidation
began, there was a shortfall of about $1.6 billion in supposedly
segregated customer property. Houston-based ConocoPhillips was
one of nine customers allowed to post letters of credit rather
than cash to supply margin for trading accounts.
ConocoPhillips' dispute over the letters of credit is In re MF
Global Inc., 12-cv-06014, U.S. District Court, Southern District
of New York (Manhattan).
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.
MF GLOBAL: UK Judge Asked to Set Client-Asset Valuation Date
------------------------------------------------------------
Kit Chellel at Bloomberg News reports that MF Global Holdings
Ltd.'s U.K. administrators asked a judge to decide whether
customer assets held by the brokerage should be valued as of the
day of its collapse, a year ago, or when they were liquidated.
KPMG LLP said it needs court guidance because about 700 customers
would gain or lose on their trading positions, depending on which
method was applied, according to a statement on its website.
According to the report, at a two-day trial in London that began
Oct. 30, two investors with claims in the administration were
selected to argue for and against the so-called hindsight
principle. Attestor Value Master Fund LP, a distressed-debt fund
registered in the Cayman Islands, would see its claim increase by
about $3 million if valued on Oct. 31 of last year. On the other
side, Schneider Trading Associates Ltd.'s claim would lose about
$500,000 in value if tied to that date and not when the securities
were liquidated days later.
KPMG, appointed to wind up its U.K. unit, by March had recovered
about $900 million of funds frozen in customer accounts.
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.
MUSCLEPHARM CORP: Offering $20.6 Million Worth of Common Shares
---------------------------------------------------------------
MusclePharm Corporation filed with the U.S. Securities and
Exchange Commission a Form S-1 registration statement relating to
the offering of an undetermined number of shares of the Company's
common stock at a proposed maximum offering price of
$20.6 million.
The Company expects to effect a 1-for-650 reverse stock split of
its common stock prior to offering these securities.
The Company's common stock is presently quoted on the OTCBB under
the symbol "MSLP.OB". The Company has applied to list its common
stock on The NASDAQ Capital Market under the symbol "MSPH". On
Oct. 25, 2012, the last reported sale price for the Company's
common stock on the OTC QB was $3.45 per share after giving pro
forma effect to the 1-for-650 reverse stock split of the Company's
common stock.
A copy of the prospectus is available for free at:
http://is.gd/cIcBoF
About MusclePharm
Headquartered in Denver, Colorado, MusclePharm Corporation
(OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life-
style company that develops and manufactures a full line of
National Science Foundation approved nutritional supplements that
are 100% free of banned substances. MusclePharm is sold in over
120 countries and available in over 5,000 U.S. retail outlets,
including GNC and Vitamin Shoppe. MusclePharm products are also
sold in over 100 online stores, including bodybuilding.com,
Amazon.com and Vitacost.com.
In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, Berman & Company,
P.A., in Boca Raton, Florida, expressed substantial doubt about
the Company's ability to continue as a going concern. The
independent auditors noted that the Company has a net loss of
$23,280,950 and net cash used in operations of $5,801,761 for the
year ended Dec. 31, 2011; and has a working capital deficit of
$13,693,267, and a stockholders' deficit of $12,971,212 at
Dec. 31, 2011.
The Company reported a net loss of $23.28 million in 2011,
compared with a net loss of $19.56 million in 2010.
The Company's balance sheet at June 30, 2012, showed $4.72 million
in total assets, $15.73 million in total liabilities, and a
$11.01 million in total stockholders' deficit.
NORTEL NETWORKS: Gets Feb. 2, 2013 Extension of CCAA Stay
---------------------------------------------------------
Nortel Networks Corporation disclosed that it, its principal
operating subsidiary Nortel Networks Limited and its other
Canadian subsidiaries that filed for creditor protection under the
Companies' Creditors Arrangement Act (CCAA) have obtained an order
from the Ontario Superior Court of Justice (Canadian Court)
further extending, to Feb. 2, 2013, the stay of proceedings that
was previously granted by the Canadian Court. The purpose of the
stay of proceedings is to provide stability to the Nortel
companies to continue with their restructuring efforts and to
continue to work toward the development of a plan of arrangement
under CCAA.
The materials filed in the CCAA proceedings are available on the
Restructuring Document Centre of Ernst & Young Inc. (the
"Monitor") at
http://documentcentre.eycan.com/Pages/Main.aspx?SID=89&Redirect=1
or by contacting the Monitor directly at 1-866-942-7177.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation and
its various affiliated entities provided next-generation
technologies, for both service provider and enterprise networks,
support multimedia and business-critical applications. Nortel did
business in more than 150 countries around the world. Nortel
Networks Limited was the principal direct operating subsidiary of
Nortel Networks Corporation.
On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parent
Nortel Networks Corporation, NNI's direct corporate parent Nortel
Networks Limited and certain of their Canadian affiliates
commenced a proceeding with the Ontario Superior Court of Justice
under the Companies' Creditors Arrangement Act (Canada) seeking
relief from their creditors. Ernst & Young was appointed to serve
as monitor and foreign representative of the Canadian Nortel
Group. That same day, the Monitor sought recognition of the CCAA
Proceedings in U.S. Bankruptcy Court (Bankr. D. Del. Case No.
09-10164) under Chapter 15 of the U.S. Bankruptcy Code.
That same day, NNI and certain of its affiliated U.S. entities
filed voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10138).
In addition, the High Court of England and Wales placed 19 of
NNI's European affiliates into administration under the control of
individuals from Ernst & Young LLP. Other Nortel affiliates have
commenced and in the future may commence additional creditor
protection, insolvency and dissolution proceedings around the
world.
On May 28, 2009, at the request of administrators, the Commercial
Court of Versailles, France, ordered the commencement of secondary
proceedings in respect of Nortel Networks S.A. On June 8, 2009,
Nortel Networks UK Limited filed petitions in U.S. Bankruptcy
Court for recognition of the English Proceedings as foreign main
proceedings under Chapter 15.
U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and
15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at
Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as
Chapter 15 petitioner's counsel.
In the Chapter 11 case, James L. Bromley, Esq., at Cleary Gottlieb
Steen & Hamilton, LLP, in New York, serves as the U.S. Debtors'
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel. The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.
The United States Trustee appointed an Official Committee of
Unsecured Creditors in respect of the U.S. Debtors. An ad hoc
group of bondholders also was organized.
Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in
New York, and Christopher M. Samis, Esq., at Richards, Layton &
Finger, P.A., in Wilmington, Delaware, represent the Official
Committee of Unsecured Creditors.
An Official Committee of Retired Employees and the Official
Committee of Long-Term Disability Participants tapped Alvarez &
Marsal Healthcare Industry Group as financial advisor. The
Retiree Committee is represented by McCarter & English LLP as
Delaware counsel, and Togut Segal & Segal serves as the Retiree
Committee. The Committee retained Alvarez & Marsal Healthcare
Industry Group as financial advisor, and Kurtzman Carson
Consultants LLC as its communications agent.
Several entities, particularly, Nortel Government Solutions
Incorporated and Nortel Networks (CALA) Inc., have material
operations and are not part of the bankruptcy proceedings.
As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated
assets of $11.6 billion and consolidated liabilities of $11.8
billion. The Nortel Companies' U.S. businesses are primarily
conducted through Nortel Networks Inc., which is the parent of
majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI
had assets of about $9 billion and liabilities of $3.2 billion,
which do not include NNI's guarantee of some or all of the Nortel
Companies' about $4.2 billion of unsecured public debt.
Since the commencement of the various insolvency proceedings,
Nortel has sold its business units and other assets to various
purchasers. Nortel has collected roughly $9 billion for
distribution to creditors. Of the total, $4.5 billion came from
the sale of Nortel's patent portfolio to Rockstar Bidco, a
consortium consisting of Apple Inc., EMC Corporation,
Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In
Motion Limited, and Sony Corporation. The consortium defeated a
$900 million stalking horse bid by Google Inc. at an auction. The
deal closed in July 2011.
Nortel has filed a proposed plan of liquidation in the U.S.
Bankruptcy Court. The Plan generally provides for full payment on
secured claims with other distributions going in accordance with
the priorities in bankruptcy law.
NOVA FINANCIAL: Intends to Declare Chapter 7 Bankruptcy
-------------------------------------------------------
NOVA Financial Holdings, Inc., a registered bank holding company,
disclosed that its Board of Directors intends to file a petition
for Chapter 7 Bankruptcy and commence an orderly liquidation.
NOVA had been following a plan to strengthen its capital base that
had been adopted in 2010 in conjunction with an agreement with the
Federal Reserve Bank of Philadelphia. Despite the progress
achieved across a breadth of objectives established by the plan,
the ongoing effects of the weak economy negatively impacted its
capital position. In the plan, NOVA also agreed to raise
additional capital, which the Company was unable to consummate due
to the filing of ill-conceived lawsuits by a few disgruntled
shareholders. NOVA made attempts to settle the shareholder
litigation, all of which were summarily rejected by the
shareholders. Ultimately, the unresolved litigation created
enough ongoing uncertainty throughout the investment community
that the company's negotiations with investor groups that had
expressed interest in providing new capital were unsuccessful.
NOVA Financial Holdings, Inc.
NOVA Financial Holdings, Inc. is a registered bank holding company
and is subject to regulation and supervision by the Board of
Governors of the Federal Reserve System.
OPTIMAL MEDICAL: Case Summary & 2 Unsecured Creditors
-----------------------------------------------------
Debtor: Optimal Medical Offices, LLC
7379 Greenbush Ave.
North Hollywood, CA 91605
Bankruptcy Case No.: 12-19379
Chapter 11 Petition Date: October 24, 2012
Court: United States Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Rachel S. Ruttenberg, Esq.
LAW OFFICES OF MARK E GOODFRIEND
16255 Ventura Blvd., Suite 205
Encino, CA 91436
Tel: (818) 783-8866
Fax: (818) 783-5445
E-mail: rruttenberg@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its two unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/cacb12-19379.pdf
The petition was signed by Gary Pietruszka, manager.
OVERSEAS SHIPHOLDING: Robbins Umeda Probes Firm
-----------------------------------------------
Shareholder rights firm Robbins Umeda LLP disclosed an
investigation of Overseas Shipholding Group, Inc. Concerned
shareholders who would like more information about their rights
and potential remedies can contact
Gregory E. Del Gaizo, Esq.
ROBBINS UMEDA LLP
Tel: (800) 350-6003
E-mail: inquiry@robbinsumeda.com
Robbins Umeda highlights that one option available to Overseas
Shipholding shareholders is filing a class action lawsuit on
behalf of investors to recover damages incurred as a result of the
wrongdoing.
Robbins Umeda LLP -- http://www.robbinsumeda.com/-- is a
nationally recognized leader in securities litigation and
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more
than $1 billion of value for themselves and the companies in which
they have invested.
About Overseas Shipholding
Overseas Shipholding Group, Inc., headquartered in New York City,
NY, is one of the largest publicly traded tanker companies in the
world, engaged primarily in the ocean transportation of crude oil
and petroleum products.
On Oct. 22, 2012, the Company filed a Form 8-K with the Securities
and Exchange Commission disclosing that on Oct. 19, 2012 "the
Audit Committee of the Board of Directors of the Company, on the
recommendation of management, concluded that the Company's
previously issued financial statements for at least the three
years ended Dec. 31, 2011 and associated interim periods, and for
the fiscal quarters ended March 31 and June 30, 2012, should no
longer be relied upon." The Form 8-K further stated that the
Company is reviewing whether a restatement of those financial
statements may be required and "evaluating its strategic options,
including the potential voluntary filing of a petition for relief
to reorganize under Chapter 11 of the Bankruptcy Code."
As a result of this news, OSG's stock price declined more than 60%
from the previous trading day's closing price of $3.25 per share
on Oct. 19, 2012, to close at $1.23 per share on Oct. 22, 2012 on
extremely heavy volume of more than 16 million shares traded.
PACIFIC GOLD: To Hold Annual Meeting of Shareholders on Nov. 13
---------------------------------------------------------------
Pacific Gold Corp. will be holding its annual meeting at Bally's
in Las Vegas, Nevada on Nov. 13, 2012, at 11:00 a.m. in the Palace
1 room. The meeting is open to all shareholders of record as of
Nov. 1, 2012. For entrance to the meeting shareholders should
bring their proxy card or a reasonable proof of share ownership.
The Company also announced that a dividend of shares of Pacific
Metals Corp. has been approved by the Company's Board of
Directors. One share of Pacific Metals will be issued for every
420 shares of PCFG owned by shareholders of record on Nov. 1,
2012. Payment of shares will be direct to the shareholder's
brokerage account and by mail for those holding share
certificates.
About Pacific Gold
Las Vegas, Nev.-based Pacific Gold Corp. is engaged in the
identification, acquisition, and development of prospects believed
to have gold mineralization. Pacific Gold through its
subsidiaries currently owns claims, property and leases in Nevada
and Colorado.
In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, Silberstein Ungar,
PLLC, in Bingham Farms, Michigan, expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has incurred losses
from operations, has negative working capital and is in need of
additional capital to grow its operations so that it can become
profitable.
The Company reported a net loss of $1.38 million in 2011, compared
with a net loss of $985,278 in 2010.
The Company's balance sheet at June 30, 2012, showed $1.48 million
in total assets, $6.16 million in total liabilities and a $4.68
million total stockholders' deficit.
PACIFIC GOLD: Robert Landau Discloses 31.2% Equity Stake
--------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, Robert Landau disclosed that, as of Oct. 1,
2012, he beneficially owns 635,970,081 shares of common stock of
Pacific Gold Corp. representing 31.2% of the shares outstanding.
A copy of the filing is available at http://is.gd/Ay0CNy
About Pacific Gold
Las Vegas, Nev.-based Pacific Gold Corp. is engaged in the
identification, acquisition, and development of prospects believed
to have gold mineralization. Pacific Gold through its
subsidiaries currently owns claims, property and leases in Nevada
and Colorado.
In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, Silberstein Ungar,
PLLC, in Bingham Farms, Michigan, expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has incurred losses
from operations, has negative working capital and is in need of
additional capital to grow its operations so that it can become
profitable.
The Company reported a net loss of $1.38 million in 2011, compared
with a net loss of $985,278 in 2010.
The Company's balance sheet at June 30, 2012, showed $1.48 million
in total assets, $6.16 million in total liabilities and a $4.68
million total stockholders' deficit.
PACIFIC GOLD: Mitchell Geisler Discloses 16.8% Equity Stake
-----------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, Mitchell Geisler disclosed that, as of
Oct. 1, 2012, he beneficially owns 342,884,224 shares of common
stock of Pacific Gold Corp. representing 16.8% of the shares
outstanding. A copy of the filing is available for free at:
http://is.gd/UtYWYL
About Pacific Gold
Las Vegas, Nev.-based Pacific Gold Corp. is engaged in the
identification, acquisition, and development of prospects believed
to have gold mineralization. Pacific Gold through its
subsidiaries currently owns claims, property and leases in Nevada
and Colorado.
In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, Silberstein Ungar,
PLLC, in Bingham Farms, Michigan, expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has incurred losses
from operations, has negative working capital and is in need of
additional capital to grow its operations so that it can become
profitable.
The Company reported a net loss of $1.38 million in 2011, compared
with a net loss of $985,278 in 2010.
The Company's balance sheet at June 30, 2012, showed $1.48 million
in total assets, $6.16 million in total liabilities, and a
$4.68 million total stockholders' deficit.
PATRIOT COAL: Net Loss Widens to $215.9MM for 2012 Q3
-----------------------------------------------------
St. Louis Business Journal reported that Patriot Coal reported a
net loss of $215.9 million for its third quarter ended Sept. 30,
2012, compared to a loss of $50.5 million for the prior year
quarter, mostly on lower sales, impairment and restructuring
charges, financing fees and reorganization costs.
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP is serving as legal advisor, Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The case has been assigned to Judge Shelley C. Chapman.
The U.S. Trustee appointed a seven-member creditors committee.
PEREGRINE PHARMACEUTICALS: Lieff Cabraser Notes of Class Suits
--------------------------------------------------------------
The law firm of Lieff Cabraser Heimann & Bernstein, LLP, discloses
that class action lawsuits have been brought on behalf of all
persons who purchased or otherwise acquired the securities of
Peregrine Pharmaceuticals, Inc. between July 16, 2012 and Sept.
26, 2012, inclusive.
Parties may move the Court for appointment as lead plaintiff by no
later than Nov. 27, 2012.
Contact the firm at:
Sharon Lee
Lieff Cabraser Heimann & Bernstein, LLP
Toll-free: 1 (800) 541-7358.
The actions allege that during the class period, defendants issued
materially false and misleading statements regarding the
effectiveness of one of its key products, bavituxmab, an
experimental drug for the treatment of non-small cell lung cancer.
Specifically, defendants failed to disclose that there were major
discrepancies in the results of the Company's Phase II bavituxmab
trial involving patients with second line non-small cell lung
cancer, and that the results Peregrine previously disclosed were
not reliable.
On Sept. 24, 2012, Peregrine disclosed that it had discovered
"major discrepancies" in the treatment group in the Phase II trial
and cautioned investors that they should not rely on previously
reported clinical data from the Phase II trial. On this news,
Peregrine shares fell $4.23 per share, or over 78%, to close at
$1.16 per share.
On Sept. 26, 2012, after the market closed, Peregrine disclosed
that it had received a notice of default from one of its lenders
which deemed the Company's disclosure on Sept. 24, 2012 concerning
the Phase II trial results to be a material adverse change under
the terms of the loan agreement and, as a result, the lender
accelerated the repayment of the loan and demanded repayment in
full for the outstanding loan amount. On this news, Peregrine
shares fell another $0.55 per share, or over 33%, to close at
$1.11 per share on Sept. 27, 2012.
About Lieff Cabraser
Lieff, Cabraser, Heimann & Bernstein, LLP,-
http://www.lieffcabraser.com--with offices in San Francisco, New
York and Nashville, is a nationally recognized law firm committed
to advancing the rights of investors and promoting corporate
responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser
as one of the top plaintiffs' law firms in the nation. In
compiling the list, the National Law Journal examined recent
verdicts and settlements in addition to overall track records.
Lieff Cabraser is one of only two plaintiffs' law firms in the
United States to receive this honor for the last ten consecutive
years.
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.
PRECISION OPTICS: Selling $6.5 Million Worth of Common Shares
-------------------------------------------------------------
Precision Optics Corporation, Inc., filed with the U.S. Securities
and Exchange Commission a Form S-1 registration statement relating
to relates to the sale or other disposition of up to 5,730,547
shares of the Company's common stock and shares underlying
warrants by Allan David, Alpha Capital Anstalt, DAFNA LifeScience
Select, Ltd., et al. The proposed maximum offering price is
$6.5 million.
The Company is not selling any securities in this offering and
therefore will not receive any proceeds from this offering. The
Company may receive proceeds from the possible future exercise of
warrants. All costs associated with this registration will be
borne by the Company.
The Company's common stock is quoted on the OTCQB under the symbol
"PEYE." On Oct. 23, 2012, the last reported sale price of the
Company's common stock on the OTCQB was $1.10 per share.
A copy of the prospectus is available for free at:
http://is.gd/2fSFkK
About Precision Optics
Headquartered in Gardner, Massachusetts, Precision Optics
Corporation, Inc., has been a developer and manufacturer of
advanced optical instruments since 1982. The Company designs and
produces high-quality micro-optics, medical instruments and other
advanced optical systems. The Company's medical instrumentation
line includes laparoscopes, arthroscopes and endocouplers and a
world-class product line of 3-D endoscopes for use in minimally
invasive surgical procedures.
The Company reported net income of $960,972 on $2.15 million of
revenue for the year ended June 30, 2012, compared with a net loss
of $1.05 million on $2.24 million of revenue during the prior
fiscal year.
The Company's balance sheet at June 30, 2012, showed $1.24 million
in total assets, $727,070 in total liabilities, all current, and
$519,329 in total stockholders' equity.
PRESTIGE TRAVEL: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Prestige Travel, Inc.
6175 Spring Mountain Road
Las Vegas, NV 89146
Bankruptcy Case No.: 12-21951
Chapter 11 Petition Date: October 23, 2012
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Bruce A. Markell
Debtor's Counsel: Bryan A. Lindsey, Esq.
THE SCHWARTZ LAW FIRM
6623 Las Vegas Boulevard South, Suite 300
Las Vegas, NV 89119
E-mail: bryan@schwartzlawyers.com
- and ?
Samuel A. Schwartz, Esq.
THE SCHWARTZ LAW FIRM
6623 Las Vegas Boulevard South, Suite 300
Las Vegas, NV 89119
Tel: (702) 385-5544
Fax: (702) 385-2741
E-mail: sam@schwartzlawyers.com
Estimated Assets: $0 to $50,000
Estimated Debts: $10,000,001 to $50,000,000
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/nvb12-21951.pdf
The petition was signed by Leo Falkensammer, vice president.
PROGRAMA AVANCE: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Programa Avance En Puerto Rico, Inc.
PMB Dept. 484
HC-01 Box 29030
Caguas, PR 00725-8900
Bankruptcy Case No.: 12-08435
Chapter 11 Petition Date: October 23, 2012
Court: U.S. Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Maria Soledad Lozada Figueroa, Esq.
MS LOZADA LAW OFFICE
254 San Jose Street, Suite 3
SAN JUAN, PR 00901
Tel: (787) 520 6002
Fax: (787) 520 6003
E-mail: lcdamslozada@gmail.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 20 largest unsecured creditors
filed with the petition is available for free at:
http://bankrupt.com/misc/prb12-08435.pdf
The petition was signed by Elba Bonila Bayon, chairman.
QUAIL HOLLOW: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Quail Hollow Inn LLC
dba Best Western Plus Quail Hollow Inn
759 S. Haskell
Willcox, AZ 85643
Bankruptcy Case No.: 12-23256
Chapter 11 Petition Date: October 23, 2012
Court: United States Bankruptcy Court
District of Arizona (Tucson)
Judge: James M. Marlar
Debtor's Counsel: John R. Clemency, Esq.
GALLAGHER & KENNEDY PA
2575 East Camelback Road, Suite 1100
Phoenix, AZ 85016
Tel: (602) 530-8040
E-mail: john.clemency@gknet.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 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/azb12-23256.pdf
The petition was signed by Theodore J. Dunlap, trustee's attorney
in fact.
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Dunlap Oil Company, Inc. 12-23252 10/24/12
RAFAEL ROSARIO: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Rafael Rosario & Associates, Inc.
Edificio La Electronica, Oficina 210
Calle Bori #1608
Rio Piedras, PR 00927
Bankruptcy Case No.: 12-08467
Chapter 11 Petition Date: October 24, 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, Suite 404
San Juan, PR 00918
Tel: (787) 723-0714; 724-2447
Fax: (787) 725-3685
E-mail: moyahuff55@prtc.net
Scheduled Assets: $1,407,042
Scheduled Liabilities: $5,562,114
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/prb12-08467.pdf
The petition was signed by Rafael Rosario, president.
RENEGADE HOLDINGS: Earns $4 Million for September 2012
------------------------------------------------------
Richard Craver at Winston-Salem Journal, citing court documents,
reports that Renegade Holdings Inc. reported a $393,498 profit for
September based on income of $4.06 million and expenses of $3.67
million.
According to the report, the goal is for Renegade to exit
bankruptcy in early 2013 focused primarily on filtered cigars,
including international contract sales, and taking its discount
brands national.
The report notes Renegade's revenue has ebbed and flowed at times
because the company stopped doing business with some legacy
customers.
The report relates the court filing also provided a financial
update on a legal dispute involving the company.
The U.S. Justice Department's Alcohol Tobacco Tax and Trade Bureau
said Alternative owes at least $4.14 million in excise tax
liabilities as of Sept. 30, which does not include potential
penalties and interest. The National Association of Attorneys
General has similar concerns, the report adds.
The report says bankruptcy trustee Peter Tourtellot has filed
motions saying no escrow or reserve is warranted, and that the
Bureau is owed $237,162.
The report says Renegade's restructuring plan could be heard at a
Nov. 14 hearing.
About Renegade Holdings
Renegade Holdings and two subsidiaries -- Alternative Brands, Inc.
and Renegade Tobacco Company -- filed for Chapter 11 protection
(Bankr. M.D.N.C. Lead Case No. 09-50140) on Jan. 28, 2009, and
exited bankruptcy on June 1, 2010. They were put back into
bankruptcy July 19, 2010, when Judge William L. Stocks vacated the
reorganization plan, in part because of a criminal investigation
of owner Calvin Phelps and the companies regarding what
authorities called "unlawful trafficking of cigarettes."
Alternative Brands is a federally licensed manufacturer of tobacco
products consisting primarily of cigarettes and cigars. Renegade
Tobacco distributes the tobacco products produced by ABI through
wholesalers and retailers in 19 states and for export. ABI also
is a contract fabricator for private label brands of cigarettes
and cigars which are produced for other licensed tobacco
manufacturers.
The stock of RHI is owned indirectly by Calvin A. Phelps through
his ownership of the stock of Compliant Tobacco, LLC which, in
turn, owns all of the stock of RHI which in turn owns all of the
stock of RTC and ABI. Mr. Phelps was the chief executive officer
of all three companies. All three of the Debtors' have their
offices and production facilities in Mocksville, North Carolina.
In August 2010, the Bankruptcy Court approved the appointment of
Peter Tourtellot, managing director of turnaround-management
company Anderson Bauman Tourtellot Vos & Co., as Chapter 11
trustee.
RG STEEL: Asks for Approval of Key Employee Contracts
-----------------------------------------------------
Carla Main at Bloomberg News reports that RG Steel LLC and its
bankrupt affiliates asked the U.S. Bankruptcy Court in Wilmington,
Delaware, to approve a contract to retain 21 key employees.
According to the report, the Debtors have sold their primary
steelmaking facilities and assets to pay senior prepetition debt
and postpetition debt, according to an Oct. 25 court filing. RG
Steel said it will now try to collect accounts receivable, pursue
litigation and reconcile claims. Implementing the key-employee
plan "is essential" to efforts to "maximize the value" of its
assets, according to court papers. A hearing on the request is
scheduled for Nov. 20.
About RG Steel
RG Steel LLC -- http://www.rg-steel.com/-- is the United States'
fourth-largest flat-rolled steel producer with annual steelmaking
capacity of 7.5 million tons. It was formed in March 2011
following the purchase of three steel facilities located in
Sparrows Point, Maryland; Wheeling, West Virginia and Warren,
Ohio, from entities related to Severstal US Holdings LLC. RG
Steel also owns finishing facilities in Yorkville and Martins
Ferry, Ohio. It also owns Wheeling Corrugating Company and has a
50% ownership in Mountain State Carbon and Ohio Coatings Company.
RG Steel along with affiliates, including WP Steel Venture LLC,
sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12-
11661) on May 31, 2012, to pursue a sale of the business. The
bankruptcy was precipitated by liquidity shortfall and a dispute
with Mountain State Carbon, LLC, and a Severstal affiliate, that
restricted the shipment of coke used in the steel production
process.
The Debtors estimated assets and debts in excess of $1 billion as
of the Chapter 11 filing. The Debtors owe (i) $440 million,
including $16.9 million in outstanding letters of credit, to
senior lenders led by Wells Fargo Capital Finance, LLC, as
administrative agent, (ii) $218.7 million to junior lenders, led
by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million
on account of a subordinated promissory note issued by majority
owner The Renco Group, Inc., and (iv) $100 million on a secured
promissory note issued by Severstal.
Judge Kevin J. Carey presides over the case.
The Debtors are represented in the case by Robert J. Dehney, Esq.,
and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP,
and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T.
Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the
Debtors.
Conway MacKenzie, Inc., serves as the Debtors' financial advisor
and The Seaport Group serves as lead investment banker. Donald
MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman Carson
Consultants LLC is the claims and notice agent.
Wells Fargo Capital Finance LLC, as Administrative Agent, is
represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo,
Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura
Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang
Ziehi & Jones LLP.
Renco Group is represented by lawyers at Cadwalader, Wickersham &
Taft LLP.
An official committee of unsecured creditors has been appointed in
the case. Kramer Levin Naftalis & Frankel LLP represents the
Committee. Huron Consulting Services LLC serves as its financial
advisor.
The Debtor has sold off the principal plants. The sale of the
Wheeling Corrugating division to Nucor Corp. brought in $7
million. That plant in Sparrows Point, Maryland, fetched the
highest price, $72.5 million.
SAN BERNARDINO, CA: Pension Fund Objects Bankruptcy Filing
----------------------------------------------------------
Imran Ghori at The Press-Enterprises reports that California's
public employee pension fund on Oct. 24, 2012, filed an objection
to the city of San Bernardino's bankruptcy petition.
According to the report, CalPERS, which has criticized the city in
recent days for missing about $6 million in pension payments, was
the most prominent creditor to file an objection to the city's
bankruptcy petition.
The report relates, however, it wasn't clear if all the objections
had been processed and made available on the U.S. Bankruptcy Court
website. Other objections were filed by a San Bernardino city
employees union, two retirees, a prison inmate and the owners of a
strip club.
The report notes the only objection filed by city employees was by
the San Bernardino Public Employees Association, representing mid-
management employees. But the three unions representing police
officers, fire fighters and most general employees had not filed
objections.
The report adds city attorney James Penman said they informed city
officials they would not file objections. Instead the city
entered into an agreement filed on Oct. 23, 2012, with the San
Bernardino City Professional Firefighters in which the union
agreed not to object but will be allowed to present evidence in
proceedings regarding the city's solvency, according to the
report.
The report says San Bernardino owes hundreds of creditors millions
of dollars, according to its court filings. CalPERS is the
largest, and is owed $143.3 million. The city also owes bond
holders $46.1 million from a 2006 pension obligation bond.
The report relates the city has met with bond insurers to discuss
the city's financial situation and expected them not to oppose.
According to the report, the owners of the Flesh Club, a
Hospitality Lane strip club, which has battled the city for years
over attempts to shut it down, also filed objections. The club
won a $1.4 million judgment against the city in 2004 but it was
later vacated and is still on appeal.
The report notes attorney Roger Jon Diamond said an August hearing
was delayed due to the city's bankruptcy. He stated that the
company may have to wait years until the city comes out of
bankruptcy and "does not trust the City of San Bernardino to make
the correct decisions in this matter."
The report adds the bankruptcy court will hold a status conference
Nov. 4.
About San Bernardino
San Bernardino, California, filed an emergency petition for
municipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code
(Bankr. C.D. Calif. Case No. 12-28006) on Aug. 1, 2012. San
Bernardino, a city of about 210,000 residents roughly 65 miles
(104 km) east of Los Angeles, estimated assets and debts of more
than $1 billion in the bare-bones bankruptcy petition.
The city council voted on July 10, 2012, to file for bankruptcy.
The move lets San Bernardino bypass state-required mediation with
creditors and proceed directly to U.S. Bankruptcy Court.
The city is represented that Paul R. Glassman, Esq., at Stradling
Yocca Carlson & Rauth.
San Bernardino joins two other California cities in bankruptcy:
Stockton, an agricultural center of 292,000 east of San Francisco,
and Mammoth Lakes, a mountain resort town of 8,200 south of
Yosemite National Park.
SHEEHAN MEMORIAL: Madison Hawk to Conduct Sale on Nov. 29
---------------------------------------------------------
The Buffalo News' City & Region section reports that the former
Sheehan Memorial Hospital is scheduled to be auctioned on Nov. 29,
2012.
The report notes Madison Hawk, a national real estate firm, will
conduct a real estate auction sale as part of Chapter 11
bankruptcy proceedings for the former downtown Buffalo medical
facility, which was officially closed this summer. The former
hospital's biggest asset is its real estate, which includes the
shuttered five story building and the 8-acre site upon which it
sits.
According to the report, the property is zoned residential, which
allows for a future multi-unit residential development to be
developed on the site. It would be sold at or above a bid price
of $2 million. The auction will take place in Bankruptcy Court.
Qualified bidders will be required to bring a $200,000 certified
check to the auction.
Based in Buffalo, New York, Sheehan Memorial Hospital filed for
Chapter 11 bankruptcy protection on Aug. 24, 2012 (Bankr. W.D.
N.Y. Case No. 12-12663). Judge Carl L. Bucki presides over the
case. Garry M. Graber, Esq., at Hodgson, Russ, LLP, represents
the Debtor. Sheehan listed $6.3 million in assets and liabilities
totaling nearly $5.5 million.
SOUTH FRANKLIN: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: South Franklin Circle
16600 Warren Court
Chagrin Falls, OH 44023
Tel: (216) 348-5400
Bankruptcy Case No.: 12-17804
Chapter 11 Petition Date: October 24, 2012
Court: U.S. Bankruptcy Court
Northern District of Ohio (Cleveland)
Judge: Pat E. Morgenstern-Clarren
Debtor's Counsel: Sean D. Malloy, Esq.
MCDONALD HOPKINS LLC
600 Superior Avenue E, Suite 2100
Cleveland, OH 44114-2653
Tel: (216) 348-5400
E-mail: smalloy@mcdonaldhopkins.com
- and ?
Shawn M. Riley, Esq.
MCDONALD HOPKINS LLC
600 Superior Ave, E, #2100
Cleveland, OH 44114
Tel: (216) 348-5400
E-mail: sriley@mcdonaldhopkins.com
Scheduled Assets: $100,000,001 to $500,000,000
Scheduled Liabilities: $100,000,001 to $500,000,000
The petition was signed by Cynthia H. Dunn, president and CEO.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
[Redacted ? Confidential Refund of Deposit $584,048
Residential Information]
[Redacted ? Confidential Refund of Deposit $510,461
Residential Information]
[Redacted ? Confidential Refund of Deposit $278,625
Residential Information]
[Redacted ? Confidential Refund of Deposit $263,625
Residential Information]
The Illuminating Company Utility $33,187
Vizmeg Landscaping, Inc. Trade Debt $31,953
Therapy Partners of Ohio Trade Debt $26,634
Merrill Lynch Professional Services $21,227
Auburn Fencing Corporation Trade Debt $11,320
Time Warner Cable Trade Debt $8,447
Northern Ohio Plumbing Trade Debt $7,900
Network Services Company Trade Debt $2,427
Gardiner Trane Trade Debt $2,357
Schindler Elevator Corporation Trade Debt $1,350
Stericycle, Inc. Trade Debt $1,053
Today's Business Products Trade Debt $1,032
Seton Identification Products Trade Debt $897
Paladin Protective Systems, Inc. Trade Debt $696
Janitors Supply, Inc. Trade Debt $609
Sovereign Industries Trade Debt $605
STERLING CAPITAL: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Sterling Capital Partners, LLC
1205 Freedom Blvd, Suite 2
Watsonville, CA 95076
Bankruptcy Case No.: 12-57684
Chapter 11 Petition Date: October 24, 2012
Court: United States Bankruptcy Court
Northern District of California (San Jose)
Judge: Arthur S. Weissbrodt
Debtor's Counsel: Iain A. Macdonald, Esq.
MACDONALD AND ASSOCIATES
221 Sansome St. Third Floor
San Francisco, CA 94104
Tel: (415) 362-0449
E-mail: iain@macdonaldlawsf.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 20 largest unsecured creditors
is available for free at http://bankrupt.com/misc/canb12-57684.pdf
The petition was signed by Joshua C. Fischer, managing memb
STERLING SHOES: Settles with Town Shoes on Price Adjustments
------------------------------------------------------------
Sterling Shoes Inc. disclosed that its wholly-owned subsidiary,
Sterling Shoes GP Inc. and Sterling LP have entered into an
agreement with Town Shoes Limited regarding the post-closing
purchase price adjustments in respect of the previously announced
sale transaction whereby Town Shoes acquired a majority of the
assets of Sterling LP. The sale transaction was made pursuant to
an asset purchase agreement and was completed on May 22, 2012 for
purchase price of approximately $17.5 million. Under the terms of
the settlement with Town Shoes, Sterling LP has agreed to release
the $3 million in escrowed proceeds to Town Shoes in full
satisfaction of the post-closing adjustments and certain other
liabilities. In consideration for the settlement, Town Shoes has
released Sterling LP from any further obligations under the terms
of the Purchase Agreement.
As previously disclosed, pursuant to orders of the Court made
under the CCAA, Sterling was granted certain protections under the
CCAA. Alvarez & Marsal Canada Inc. has been appointed Monitor
pursuant to such orders. All inquiries regarding the CCAA
proceedings affecting Sterling should be directed to the Monitor
at www.alvarezandmarsal.com/sterling or by contacting Tom Powell
of A&M at: (+1) 604-639-0846.
About Sterling Shoes
Sterling Shoes -- http://www.sterlingshoesinc.com-- is
headquartered in Vancouver, B.C. and is a
leading independent footwear retailer offering a broad selection
of private label and brand name shoes and accessories. Founded in
1987, Sterling Shoes LP operates over 100 stores across Canada.
In October 2011, Sterling Shoes Inc. Sterling Shoes GP Inc.
(general partner of Sterling Shoes Limited Partnership) sought
protection from the Supreme Court of British Columbia under the
Companies' Creditors Arrangement Act (Canada), R.S.C. 1985, c. C-
36, as amended.
Alvarez & Marsal Canada Inc. has been appointed Monitor pursuant
to such orders.
STN TRANSPORT: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: STN Transport, Ltd.
3223 Brightwood Avenue
Edinburg, TX 78539
Bankruptcy Case No.: 12-70617
Chapter 11 Petition Date: October 23, 2012
Court: U.S. Bankruptcy Court
Southern District of Texas (McAllen)
Judge: Richard S. Schmidt
Debtor's Counsel: Antonio Villeda, Esq.
LAW OFFICE OF ANTONIO VILLEDA
5414 N. 10th Street
McAllen, TX 78504
Tel: (956) 631-9100
E-mail: avilleda@mybusinesslawyer.com
Scheduled Assets: $1,159,197
Scheduled Liabilities: $1,153,697
The Company's list of its largest unsecured creditors filed with
the petition does not contain any entry.
The petition was signed by Jose R. Tijerina Mendoza, sole member
of STN Transport Mgmnt, general partner.
VANN'S INC: McMagic to Buy Assets for $4.5 Million
--------------------------------------------------
Irina Cates at KPAX News reports that McMagic Partners LP offered
to buy Vann's for $4.5 million.
The report notes McMagic Partners will have to meet its legal
obligations by 5 p.m. on Nov. 1, 2012, for the sale to go through.
The report relates, in the purchase agreement, it states the
current employees have to be offered a job by the new owner,
before the deal closes. Vann's agreed to pay McMagic Partners
$250,000 to address customer disputes, complaints and merchandise
returns on transaction made before the closed deal.
The report adds a federal court hearing is scheduled for Nov. 2,
2012, where attorneys will present the proposed sale to the
bankruptcy judge.
About Vann's Inc.
Vann's Inc. -- http://www.vanns.com/-- a retailer of appliances
and consumer electronics with five stores in Montana, filed for
Chapter 11 protection (Bankr. D. Mont. Case No. 12-61281) in
Butte, Montana, on Aug. 5, 2012. The Debtor also owns outdoor
clothing and sports products at http://www.bigskycountry.com/
Vann's is owned by an employee stock ownership plan trust.
Vann's Inc. disclosed assets of $17.6 million and liabilities of
$14.4 million. Assets include $12.2 million cost-value of
inventory plus $1 million in current accounts receivable. The
Company owes $4 million to First Interstate Bank. It also owes
$4.8 million on an inventory loan from GE Commercial Distribution
Finance Corp.
Bankruptcy Judge John L. Peterson presides over the case. Vann's
hired Perkins Coie LLP's Alan D. Smith, Esq., and Brian A.
Jennings, Esq., as counsel; and Hamstreet & Associates, LLC, as
turnaround and restructuring advisors.
GE Commercial Distribution Finance Corporation is represented by
Gary Vincent, Esq., at Husch Blackwell LLP, and the Law Offices of
John P. Paul, PLLC. First Interstate Bank, the DIP Lender, is
represented by Benjamin P. Hursh, Esq., at Crowley Fleck PLLP.
The U.S. Trustee has formed a seven-member creditors committee.
The Committee is represented by Halperin Battagia Raicht, LLP, and
Ross Richardson.
The Court appointed Montana lawyer Richard J. Samson as Chapter 11
trustee.
VERTIS HOLDINGS: Creditors Object to Auction, DIP Financing Terms
-----------------------------------------------------------------
Jacqueline Palank, writing for Dow Jones Newswires, reports that
unsecured creditors said Vertis Holdings Inc.'s auction and
financing proposals don't include enough protections to make sure
they're not left holding the bag during the company's third trip
through Chapter 11.
According to the report, the official committee representing
Vertis's unsecured creditors are urging a bankruptcy judge to slow
down the sale of Vertis's print advertising and direct-mail
marketing business, which they say is being run for the sole
benefit of senior lenders led by General Electric Capital Corp.
The report relates the lenders are behind a $150 million debtor-
in-possession financing package, which the committee says provides
just enough money to run a sale process that will ensure the
lenders get paid but which doesn't cover the costs of Chapter 11
or the debts owed to Vertis's other creditors.
The report notes, under the weight of more than $475 million in
secured debt, Vertis filed for Chapter 11 protection on Oct. 10, a
step it took in 2008 and 2010. This time, it has a $285.5 million
offer for its business from Quad/Graphics Inc., subject to higher
bids at an auction. Vertis is seeking court approval to hold the
auction before the end of the year.
The report adds the committee is seeking allowances for Vertis to
adjourn the auction date without Quad/Graphics' consent and to
consider bids for certain portions of the company's assets, rather
than all of them. The committee also wants to be able to consult
with Vertis on each stage of the sale process, from soliciting
competing bids to choosing the winning bidder.
The report relates the committee said Vertis, the lenders and
Quad/Graphics have consented to giving them a consultation role in
the sale process but have rejected the other changes they want.
The report notes the U.S. Bankruptcy Court in Wilmington, Del., is
scheduled to consider Vertis's bankruptcy loan and auction
proposals at a Nov. 1 hearing.
About Vertis
Vertis Holdings Inc. -- http://www.thefuturevertis.com/--
provides advertising services in a variety of print media,
including newspaper inserts such as magazines and supplements.
Vertis and its affiliates (Bankr. D. Del. Lead Case No. 12-12821),
returned to Chapter 11 bankruptcy on Oct. 10, 2012, this time to
sell the business to Quad/Graphics, Inc., for $258.5 million,
subject to higher and better offers in an auction.
As of Aug. 31, 2012, the Debtors' unaudited consolidated financial
statements reflected assets of approximately $837.8 million and
liabilities of approximately $814.0 million.
Bankruptcy Judge Christopher Sontchi presides over the 2012 case.
Vertis is advised by Perella Weinberg Partners, Alvarez & Marsal,
and Cadwalader, Wickersham & Taft LLP. Quad/Graphics is advised
by Blackstone Advisory Partners, Arnold & Porter LLP and Foley &
Lardner LLP, special counsel for antitrust advice. Kurtzman
Carson Consultants LLC is the Debtors' claims agent.
Quad/Graphics is a global provider of print and related
multichannel solutions for consumer magazines, special interest
publications, catalogs, retail inserts/circulars, direct mail,
books, directories, and commercial and specialty products,
including in-store signage. Headquartered in Sussex, Wis. (just
west of Milwaukee), the Company has approximately 22,000 full-time
equivalent employees working from more than 50 print-production
facilities as well as other support locations throughout North
America, Latin America and Europe.
Vertis first filed for bankruptcy (Bankr. D. Del. Case No.
08-11460) on July 15, 2008, to complete a merger with American
Color Graphics. ACG also commenced separate bankruptcy
proceedings. In August 2008, Vertis emerged from bankruptcy,
completing the merger.
Vertis against filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y.
Case No. 10-16170) on Nov. 17, 2010. The Debtor estimated its
assets and debts of more than $1 billion. Affiliates also filed
separate Chapter 11 petitions -- American Color Graphics, Inc.
(Bankr. S.D.N.Y. Case No. 10-16169), Vertis Holdings, Inc. (Bankr.
S.D.N.Y. Case No. 10-16170), Vertis, Inc. (Bankr. S.D.N.Y. Case
No. 10-16171), ACG Holdings, Inc. (Bankr. S.D.N.Y. Case No.
10-16172), Webcraft, LLC (Bankr. S.D.N.Y. Case No. 10-16173), and
Webcraft Chemicals, LLC (Bankr. S.D.N.Y. Case No. 10-16174). The
bankruptcy court approved the prepackaged Chapter 11 plan on
Dec. 16, 2010, and Vertis consummated the plan on Dec. 21. The
plan reduced Vertis' debt by more than $700 million or 60%.
GE Capital Corporation, which serves as DIP Agent and Prepetition
Agent, is represented in the 2012 case by lawyers at Winston &
Strawn LLP. Morgan Stanely Senior Funding Inc., the agent under
the prepetition term loan, and as term loan collateral agent, is
represented by lawyers at White & Case LLP, and Milbank Tweed
Hadley & McCloy LLP.
WEST PENN: Loss Widens to $112.5MM at Year Ended June 30
--------------------------------------------------------
Alex Nixon at TribeLive reports that West Penn Allegheny Health
System's operating loss grew to $112.5 million in its most recent
financial year, more than double that of the previous year,
causing experts to question how much longer the nonprofit system
can stave off creditors.
According to the report, the struggling five-hospital system
likely would have defaulted on its agreement with bond investors
if Highmark Inc. had not given it $58 million, recorded as a
donation during the year ended June 30.
"Without Highmark, they would be way in default," the report
quotes Stephen Foreman, associate professor of health care
administration at Robert Morris University, as saying.
The report relates financial help from Highmark is on hold. West
Penn Allegheny accused the insurer on Sept. 28 of breaking their
year-old merger agreement by demanding a structured bankruptcy to
reduce nearly $1 billion in bond and pension debt. Highmark sued
the hospital system on Oct. 1 to keep it from pursuing other
deals.
The report adds the trigger is one of two covenants the hospital
system has with investors who hold about $750 million in bond
debt. The covenants require it to have at least 35 days' cash on
hand and to maintain its "debt-service coverage ratio" at 1.1 or
better. As of June 30, West Penn Allegheny had 62 days' cash and
a ratio of 1.16.
The report relates West Penn Allegheny is trying to quit its $475
million deal with Highmark because it says the insurance company
tried to force bankruptcy to reduce its bond debt and eliminate
pension obligations totaling about $250 million.
Highmark, which intends for West Penn to be the centerpiece of a
$1 billion health care provider organization, denies breaching
their deal. A hearing on Highmark's lawsuit in Allegheny County
court, which started last week, is expected to conclude on Nov. 1,
the report adds.
The report says the $112.5 million loss from operations reflects
performance of its hospitals, doctor groups and other medical
services. After adding in investment income and donations, the
system's net loss was $37.8 million. That compares with an
operating loss of $51.8 million the year before and net income of
$20.4 million, achieved with a $50 million grant from Highmark in
June 2011.
The report adds a 6.4% decrease in patients caused revenue to fall
to $1.56 billion from $1.60 billion. Bad patient debt increased
17% to $80.8 million.
The report notes all three credit rating agencies take a negative
view of West Penn Allegheny. Fitch Ratings last week downgraded
the system further into junk-bond status. Moody's and Standard &
Poor's are considering downgrades.
XEBEX CORP: Home-Decor Importer Seeks Bankruptcy Protection
-----------------------------------------------------------
Michael Bathon at Bloomberg News reports that Xebex Corp., an
importer of home-decor products from Asia, sought bankruptcy
protection (Bankr. N.D. Tex. Case No. 12-36773) from creditors on
Oct. 26, without citing a reason.
According to the report, the company estimated more than
$10 million in debt and less than $50,000 in assets in documents
filed in U.S. Bankruptcy Court in Dallas. The largest unsecured
creditors are Ricsung International Ltd., owed $6.5 million; First
State Bank of Union City, Tennessee, owed about $3.6 million; and
Dallas-based JEK Lending, owed more than $1.5 million, court
papers show.
* 'Stern' Objections Cannot Be Waived, Circuit Rules
----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that a defendant cannot waive an objection that a
bankruptcy court lacks constitutional authority to make final
judgments in a state law-based lawsuit alleging fraud, the U.S.
Court of Appeals in Cincinnati ruled on Oct. 26. A defendant can
raise an objection to the power of the bankruptcy court to enter a
final judgment for the first time on appeal, the Cincinnati
appeals court said. It isn't clear whether other circuit courts
will adopt the same rule. The case involved a man who was
swindled and filed for bankruptcy after what the bankruptcy judge
said was "one of the most egregious frauds the court has ever
encountered."
According to the report, the bankruptcy court gave final judgment
for the bankrupt disallowing all the creditor's claims and voiding
the creditor's security interest. The bankruptcy court also
awarded the bankrupt $1.2 million in compensatory damages and
$2 million in punitive damages against the creditor. The district
court affirmed on the first appeal. Sued in bankruptcy court for
fraud, the creditor never raised an objection about the ability of
the bankruptcy judge to render a final judgment. The defendant-
creditor also admitted that the lawsuit was a "core" proceeding
where the bankruptcy judge could render a final judgment. In
addition, the creditor waived the right to a jury trial by not
requesting one, the appeals court said.
The report relates that writing for the Court of Appeals in
Cincinnati, Circuit Judge Raymond M. Kethledge held that a
defendant cannot waive an objection to the constitutional power of
a bankruptcy court to enter a final judgment in situations covered
by the Supreme Court's Stern v. Marshall opinion from last year.
The report notes that Judge Kethledge upheld the final judgment
expunging the creditor's claims and voiding the security interest
because that relief was within the power of a bankruptcy judge
under the Stern opinion. On the fraud claims for money damages,
Judge Kethledge said they required proving "facts beyond those
necessary to his disallowance claims." Consequently, the
bankruptcy court couldn't render a final judgment.
The Bloomberg report discloses that Judge Kethledge sent the case
back to the bankruptcy court with instructions to recast the final
judgment as proposed findings of fact and conclusions of law that
a district court can review de novo. The opinion noted that the
Supreme Court has "never squarely" ruled whether a bankruptcy
court has constitutional authority to make final judgments
allowing or disallowing claims. Judge Kethledge said that
"intimations" from the Supreme Court there is power to make final
rulings on claims allowances.
The case is Waldman v. Stone, 10-6497, U.S. Court of Appeals for
the Sixth Circuit (Cincinnati).
* Social Security Benefits Excluded From Chapter 13 Payments
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Social Security benefits aren't included in the
calculation of how much bankrupts must pay creditors to confirm
Chapter 13 plans, the U.S. Appeals Court in Denver ruled on
Oct. 24. A U.S. district judge reversed the bankruptcy court in
December and ruled that Social Security benefits are prohibited by
statute from being included in the calculation of disposable
income. Writing for a three judge panel from the Tenth Circuit in
Denver, Circuit Judge Michael R. Murphy came to the same
conclusion last week in upholding the district court.
According to the report, the bankruptcy trustee objected to the
bankrupt's Chapter 13 plan because $87,000 in future Social
Security benefits weren't included in the calculation of how much
must be paid to creditors. Judge Murphy noted that although the
term "projected disposable income" isn't defined in the Bankruptcy
Code, "disposable income" is defined and "expressly excludes"
Social Security benefits. He therefore concluded that the "plain
language" of the statute favored the bankrupt's proposed plan
calculation.
The Bloomberg report discloses that the district judge, reaching
the same conclusion, said that excluding Social Security benefits
is in accord with the majority of circuit courts and district
courts to address the question. The district judge said courts
ruling the other way tend to rely on decisions predating 2005
amendments to the Bankruptcy Code.
The case in the Court of Appeals is Anderson v. Cranmer (In re
Cranmer), 12-4002, U.S. Court of Appeals for the Tenth Circuit
(Denver). The case in district court was Cranmer v. Anderson, 11
230, U.S. District Court, District of Utah (Salt Lake City).
* Discretionary Dismissal Overturned on Appeal
----------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that dismissing two individuals' Chapter 11 cases rather
than converting them to Chapter 7 was an error, even though the
selection between the two remedies was discretionary and the
bankruptcy judge made no erroneous findings of fact, a U.S.
district judge in Maryland ruled on Oct. 26.
According to the report, the cases were the fourth and fifth
bankruptcy filings by two individuals. The prior cases had been
dismissed, and the current cases were pending for three years and
2-1/2 years, respectively. The bankrupts in Chapter 11 had
lawsuits pending against secured lenders. The bankruptcy court
had appointed a Chapter 11 trustee who sought conversion to
Chapter 7. The U.S. Trustee supported conversion to Chapter 7.
The report relates that the bankrupts opposed conversion and
prevailed on the bankruptcy judge to dismiss the cases instead.
The report notes that the lenders appealed and won in a decision
by U.S. District Judge Richard D. Bennett. Although Judge Bennett
couldn't overturn the lower court's findings of fact, he concluded
that the bankruptcy judge violated Section 1112 of the Bankruptcy
Code by considering the best interests of the bankrupts. Judge
Bennett said it was proper only to consider the best interests of
creditors and the estate.
The Bloomberg report discloses that in ruling that conversion to
Chapter 7 was proper, Judge Bennett cited the bankrupts'
dishonesty and the years the bankruptcies had been pending. The
bankrupts opposed conversion to Chapter 7, saying the trustee
might give up too quickly and easily on what they believed were
good claims against the lenders.
The case is Lakefront Investors LLC v. Clarkson, 12-0326, U.S.
Bankruptcy Court, District of Maryland (Baltimore).
* AlixPartners Has New Platform for Claims Trading
--------------------------------------------------
Stephanie Gleason at Dow Jones' Daily Bankruptcy Review reports
that most bankruptcy claimants don't get fair-market value if they
sell their claim, said former AlixPartners LLC restructuring
director Todd Zoha, but with the launch of his new trading
platform, that could change.
AlixPartners -- http://www.alixpartners.com/-- is a leading
global business advisory firm offering services across four main
disciplines -- operational performance improvement, financial
restructuring and bankruptcy reorganization, litigation consulting
and financial advisory services. The firm's expertise is in
helping clients anticipate, evaluate and successfully resolve
urgent, high-impact business challenges in an increasingly complex
legal, regulatory and economic landscape. Drawing on the
experience of more than 700 employees from 13 offices across North
America, Europe and Asia, the firm commits small teams of seasoned
professionals to deliver results when it really matters.
* McKool Smith Moves Silicon Valley Office
------------------------------------------
McKool Smith, one of America's leading trial firms, has relocated
its Silicon Valley office to 255 Shoreline Drive in Redwood
Shores. The firm launched its office in temporary office space
earlier this year with the joining of intellectual property trial
lawyer Courtland Reichman.
"We're excited to move into our permanent location, and look
forward to continuing the growth of our Silicon Valley office,"
said Mike McKool, co-founder and Chairman of McKool Smith.
The move into Silicon Valley marked the firm's eighth office and
second in California. In September 2011, the members of Hennigan
Dorman, a Los Angeles-based trial firm, joined McKool Smith. This
added 35 trial lawyers to McKool Smith's roster and expanded the
firm's intellectual property (IP) litigation and commercial
litigation practices into the West Coast. In May 2012, Mr.
Reichman joined the firm to open its office in Silicon Valley. He
was accompanied by Principal Jill Wasserman and Senior Counsel
Sarah Jorgensen. McKool Smith conducts business in California as
McKool Smith Hennigan.
Mr. Reichman is a trial lawyer with more than 17 years of
experience representing clients in high-stakes patent and Lanham
Act litigation, and a broad range of intellectual property and
commercial disputes. He has appeared in state and federal courts
across the country and before the International Trade Commission.
Mr. Reichman's appellate practice includes more than 20 federal
appellate arguments, including arguments before the U.S. Supreme
Court and the Federal Circuit. Prior to joining McKool Smith, Mr.
Reichman served as Global Chair of an "AmLaw 30" law firm's 150-
attorney intellectual property group, and Managing Partner of the
firm's San Francisco and Silicon Valley offices.
McKool Smith was founded in Dallas in 1991 by Mike McKool and Phil
Smith. In 1996, the firm expanded into Marshall, in the Eastern
District of Texas, which would soon establish a reputation as a
rocket docket for patent infringement cases. McKool Smith
prepared for the patent litigation boom by opening an office in
Austin in 2000 and launching an intellectual property litigation
practice. The firm enhanced its IP litigation practice with the
addition of an International Trade Commission litigation practice
and a Washington, DC office in 2007. That same year, the firm
opened an office in New York and added a white collar defense
practice. In 2009, McKool Smith expanded into bankruptcy
litigation with the opening of its Houston office. With the
expansion into California, McKool Smith has solidified its
national footprint from coast to coast.
With more than 175 litigators working across offices in
California, New York, Washington, DC, and Texas, McKool Smith has
established a reputation as one of America's leading trial firms.
The firm has won more National Law Journal and VerdictSearch "Top
100 Verdicts" over the last five years than any other law firm.
In 2012, the firm was named intellectual property "Firm of the
Year" by Benchmark Litigation, and previously was recognized as
"IP Firm of the Year" by Law360. McKool Smith represents leading
clients across a broad range of practice areas, including complex
commercial litigation, intellectual property, bankruptcy, and
white collar defense.
* Recent Small-Dollar & Individual Chapter 11 Filings
-----------------------------------------------------
In re Charles Anyadike
Bankr. C.D. Calif. Case No. 12-45430
Chapter 11 Petition filed October 22, 2012
In re Harjinder Gill
Bankr. E.D. Calif. Case No. 12-18909
Chapter 11 Petition filed October 22, 2012
In re Debra Dorband
Bankr. D. Colo. Case No. 12-31768
Chapter 11 Petition filed October 22, 2012
In re Wayne Dorband
Bankr. D. Colo. Case No. 12-31768
Chapter 11 Petition filed October 22, 2012
In re House of Carpets, Inc.
Bankr. D. Colo. Case No. 12-31822
Chapter 11 Petition filed October 22, 2012
See http://bankrupt.com/misc/cob12-31822p.pdf
See http://bankrupt.com/misc/cob12-31822c.pdf
represented by: Aaron A. Garber, Esq.
KUTNER MILLER BRINEN, P.C.
E-mail: aag@kutnerlaw.com
In re Pamela Allen-Green
Bankr. S.D. Fla. Case No. 12-35198
Chapter 11 Petition filed October 22, 2012
In re RCF Transportation, Inc.
Bankr. D. N.H. Case No. 12-13233
Chapter 11 Petition filed October 22, 2012
See http://bankrupt.com/misc/nhb12-13233.pdf
represented by: Marc L. Van De Water, Esq.
VAN DE WATER LAW OFFICES, P.L.L.C.
E-mail: vlawusa@gmail.com
In re BUA Management Inc.
dba BUA Property Management Inc.
Bankr. W.D.N.Y. Case No. 12-13188
Chapter 11 Petition filed October 22, 2012
See http://bankrupt.com/misc/nywb12-13188.pdf
Filed as Pro Se
In re Dynamic Metalcrafting Corp.
Bankr. S.D. Tex. Case No. 12-37789
Chapter 11 Petition filed October 22, 2012
See http://bankrupt.com/misc/txsb12-37789.pdf
represented by: Sterling A. Minor, Esq.
MINOR & BAIR PLLC
E-mail: sminor@minorbairlaw.com
In re Nick Heiser Trucking & Excavating LLC
Bankr. W.D. Wis. Case No. 12-15801
Chapter 11 Petition filed October 22, 2012
See http://bankrupt.com/misc/wiwb12-15801.pdf
represented by: Craig E. Stevenson, Esq.
KREKELER STROTHER, S.C.
E-mail: cstevenson@ks-lawfirm.com
In re Roy Stine
Bankr. D. Ariz. Case No. 12-23178
Chapter 11 Petition filed October 23, 2012
In re Whetstone Development Company
Bankr. D. Ariz. Case No. 12-23180
Chapter 11 Petition filed October 23, 2012
See http://bankrupt.com/misc/azb12-23180.pdf
represented by: Sally M Darcy, Esq.
McEvoy, Daniels & Darcy P.C.
E-mail: ccarter@mddlaw.com
In re Rahmani Investments LLC
aka R Lounge
Bankr. C.D. Calif. Case No. 12-19355
Chapter 11 Petition filed October 23, 2012
See http://bankrupt.com/misc/cacb12-19355.pdf
represented by: Howard B. Kim, Esq.
Law Offices of Howard B Kim
In re Patrice Phillips
Bankr. N.D. Calif. Case No. 12-12809
Chapter 11 Petition filed October 23, 2012
In re Ben Huggins
Bankr. S.D. Calif. Case No. 12-14201
Chapter 11 Petition filed October 23, 2012
In re Raid Yacoub
Bankr. N.D. Ill. Case No. 12-42099
Chapter 11 Petition filed October 23, 2012
In re BS Good, Inc.
dba Madeleine's Gifts
Bankr. W.D. Ky. Case No. 12-34740
Chapter 11 Petition filed October 23, 2012
See http://bankrupt.com/misc/kywb12-34740.pdf
represented by: David M. Cantor, Esq.
Seiller Waterman LLC
E-mail: cantor@derbycitylaw.com
In re DPB Food Group, LLC
dba Realm Restaurant and Lounge
Bankr. D.N.H. Case No. 12-13249
Chapter 11 Petition filed October 23, 2012
See http://bankrupt.com/misc/nhb12-13249.pdf
represented by: Brian P. Cowan, Esq.
Law Offices of Joseph M. Annutto PLLC
E-mail: annuttolaw@aol.com
In re Robert Turner
Bankr. D.N.H. Case No. 12-13248
Chapter 11 Petition filed October 23, 2012
In re Maruca's Tomato Pies, Inc.
Bankr. D.N.J. Case No. 12-35695
Chapter 11 Petition filed October 23, 2012
See http://bankrupt.com/misc/njb12-35695.pdf
represented by: Barry W. Frost, Esq.
Teich Groh
E-mail: bfrost@teichgroh.com
In re The Ferry House, Inc.
Bankr. D.N.J. Case No. 12-35718
Chapter 11 Petition filed October 23, 2012
See http://bankrupt.com/misc/njb12-35718.pdf
represented by: Scott Eric Kaplan, Esq.
Scott E. Kaplan, LLC
E-mail: kaplan@malsarmlaw.com
In re Alan Nigro Development Corp.
Bankr. W.D.N.Y. Case No. 12-13204
Chapter 11 Petition filed October 23, 2012
See http://bankrupt.com/misc/nywb12-13204.pdf
represented by: Jay A. Pohlman, Esq.
In re Virginia Management Corp.
Bankr. W.D.N.Y. Case No. 12-13205
Chapter 11 Petition filed October 23, 2012
Filed pro se
In re Cosmetic Concepts, Inc.
Bankr. W.D.N.C. Case No. 12-10845
Chapter 11 Petition filed October 23, 2012
See http://bankrupt.com/misc/ncwb12-10845.pdf
represented by: D. Rodney Kight, Jr., Esq.
Kight Law Office PC
E-mail: info@kightlaw.com
In re Ward Beck
Bankr. D. Ore. Case No. 12-64579
Chapter 11 Petition filed October 23, 2012
In re Team Wightman, LLC
Bankr. W.D. Pa. Case No. 12-25248
Chapter 11 Petition filed October 23, 2012
See http://bankrupt.com/misc/pawb12-25248p.pdf
See http://bankrupt.com/misc/pawb12-25248c.pdf
represented by: Francis E. Corbett, Esq.
Calaiaro & Corbett, P.C.
E-mail: fcorbett@calaiarocorbett.com
In re Eugenio Garcia Molina
Bankr. D.P.R. Case No. 12-08433
Chapter 11 Petition filed October 23, 2012
In re El Viaje Retreat, LLC
Bankr. W.D. Tex. Case No. 12-53267
Chapter 11 Petition filed October 23, 2012
See http://bankrupt.com/misc/txwb12-53267.pdf
represented by: James Samuel Wilkins, Esq.
Willis & Wilkins, LLP
E-mail: jwilkins@stic.net
In re Diane King
Bankr. E.D. Va. Case No. 12-74513
Chapter 11 Petition filed October 23, 2012
In re William Lansdale
Bankr. C.D. Calif. Case No. 12-45706
Chapter 11 Petition filed October 24, 2012
In re Gulf Coast Endeavors, LLC
dba Gulf Coast Infusion Center, Inc.
Bankr. M.D. Fla. Case No. 12-16063
Chapter 11 Petition filed October 24, 2012
See http://bankrupt.com/misc/flmb12-16063.pdf
represented by: Joseph Trunkett, Esq.
THE TRUNKETT LAW GROUP, LLC
E-mail: jtrunkettecf@gmail.com
In re Senior Care of Columbus, LLC
Bankr. M.D. Ga. Case No. 12-41024
Chapter 11 Petition filed October 24, 2012
See http://bankrupt.com/misc/gamb12-41024.pdf
represented by: Evan M. Altman, Esq.
E-mail: evan.altman@laslawgroup.com
In re Arcangela Di Cosola
Bankr. N.D. Ill. Case No. 12-42209
Chapter 11 Petition filed October 24, 2012
In re Mary Hogan
Bankr. N.D. Ill. Case No. 12-42225
Chapter 11 Petition filed October 24, 2012
In re Lemire Schmeglar
Bankr. N.D. Ill. Case No. 12-42283
Chapter 11 Petition filed October 24, 2012
In re Cosmetic Horizons, P.C.
Bankr. E.D. Mich. Case No. 12-63713
Chapter 11 Petition filed October 24, 2012
See http://bankrupt.com/misc/mieb12-63713.pdf
represented by: Pamela Lightfoot Sullivan, Esq.
E-mail: plfoot@hotmail.com
In re Majestic Products LLC
Bankr. E.D. Pa. Case No. 12-19973
Chapter 11 Petition filed October 24, 2012
See http://bankrupt.com/misc/paeb12-19973p.pdf
See http://bankrupt.com/misc/paeb12-19973c.pdf
represented by: Paul Brinton Maschmeyer, Esq.
MASCHMEYER KARALIS P.C.
E-mail: pmaschmeyer@cmklaw.com
In re TMC Management Group, Inc.
dba Taco Maker Encantada
fdba Taco Maker Penuelas
Max Deli Convenience Store
Bankr. D. P.R. Case No. 12-08463
Chapter 11 Petition filed October 24, 2012
See http://bankrupt.com/misc/prb12-08463.pdf
represented by: Teresa M Lube Capo, Esq.
LUBE & SOTO LAW OFFICES PSC
E-mail: lubeysoto@gmail.com
In re B2K Consulting LLC
Bankr. M.D. Tenn. Case No. 12-09748
Chapter 11 Petition filed October 24, 2012
See http://bankrupt.com/misc/tnmb12-09748.pdf
represented by: Steven L. Lefkovitz, Esq.
LAW OFFICES LEFKOVITZ & LEFKOVITZ
E-mail: slefkovitz@lefkovitz.com
In re 2158 N Gilbert Rd LLC
Bankr. D. Ariz. Case No. 12-23375
Chapter 11 Petition filed October 25, 2012
Filed pro se
In re Jay LeSueur
Bankr. D. Ariz. Case No. 12-23386
Chapter 11 Petition filed October 25, 2012
In re Kevin Poon
Bankr. C.D. Calif. Case No. 12-45845
Chapter 11 Petition filed October 25, 2012
In re Trinette Hobbs
Bankr. S.D. Fla. Case No. 12-35544
Chapter 11 Petition filed October 25, 2012
In re Kimberly Robertson
Bankr. N.D. Ga. Case No. 12-23685
Chapter 11 Petition filed October 25, 2012
In re Barry Welbers
Bankr. C.D. Ill. Case No. 12-82373
Chapter 11 Petition filed October 25, 2012
In re Brian Meyer
Bankr. N.D. Iowa Case No. 12-02020
Chapter 11 Petition filed October 25, 2012
In re James Grimes
Bankr. D. Mass. Case No. 12-18599
Chapter 11 Petition filed October 25, 2012
In re Beautiful View Realty, Inc.
Bankr. E.D.N.Y. Case No. 12-47550
Chapter 11 Petition filed October 25, 2012
See http://bankrupt.com/misc/nyeb12-47550.pdf
represented by: Farrel Donald, Esq.
Law Offices of Farrel Donald
In re Grand Central Zocalo, LLC
dba Zocalo Grand Central
Bankr. S.D.N.Y. Case No. 12-14405
Chapter 11 Petition filed October 25, 2012
See http://bankrupt.com/misc/nysb12-14405.pdf
represented by: Rachel S. Blumenfeld, Esq.
Law Offices of Rachel S. Blumenfeld
E-mail: rblmnf@aol.com
In re Pearl Allen Ltd.
Bankr. W.D.N.Y. Case No. 12-13249
Chapter 11 Petition filed October 25, 2012
See http://bankrupt.com/misc/nywb12-13249.pdf
represented by: Daniel E. Wisniewski, Esq.
E-mail: dwisniewski2@verizon.net
In re Thomas Linke
Bankr. E.D. Pa. Case No. 12-20030
Chapter 11 Petition filed October 25, 2012
In re Daniel Hernandez
Bankr. N.D. Tex. Case No. 12-36748
Chapter 11 Petition filed October 25, 2012
In re Nancy Harvey
Bankr. W.D. Tex. Case No. 12-32038
Chapter 11 Petition filed October 25, 2012
In re Brian Witz
Bankr. W.D. Wash. Case No. 12-20775
Chapter 11 Petition filed October 25, 2012
*********
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, Carmel
Paderog, Meriam Fernandez, 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
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firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
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