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/raid1/www/Hosts/bankrupt/TCR_Public/130504.mbx T R O U B L E D C O M P A N Y R E P O R T E R Saturday, May 4, 2013, Vol. 17, No. 122 Headlines 710 LONG RIDGE: Reports $415,753 Net Loss in March AMBAC FINANCIAL: Net Profit Down to $67.6 Million in February AMERICAN AIRLINES: Generates $91 Million Operating Profit in March AMF BOWLING: Has $30.08 Million Cash at February 3 AMF BOWLING: Has $36.14 Million Cash at March 3 ATARI INC: Posts $5.19 Million Net Loss in March ATP OIL: February Net Loss Revised to $21.23 Million ATP OIL: Net Loss in March Doubles to $50.44 Million BETSEY JOHNSON: Ends January With $1.44 Million Cash EASTMAN KODAK: Posts $66.77 Million Net Loss for March FIBERTOWER CORP: Has $1.35 Million Cash at March 31 FLAT OUT: Reports $200,171 Net Loss for Period Ended April 3 HOSTESS BRANDS: Has $2.79-Bil Stockholders' Deficit as of Mar. 9 INTERFAITH MEDICAL: Reports $3.28 Million Net Loss in March LEHMAN BROTHERS: Free Cash Rises to $1.6 Billion During March NAMCO LLC: Expects $1.53 Million Cash by June 23 PENSON WORLDWIDE: Lists $211,245 Net Loss in March PROMMIS HOLDINGS: Forecasts $1.06 Million Cash Balance by June 14 RAPID-AMERICAN: Has $4.45 Million Cash at March 31 RENEGADE HOLDINGS: Posts $46,760 Loss for March SCHOOL SPECIALTY: Reports $12.48 Million Net Loss in March TOUSA INC: Ends March 31 With $308.14 Million in Cash THQ INC: Reports $23.13 Million Net Loss For Period Ending Feb. 2 VALENCE TECHNOLOGY: Cash Balance Increased to $946,231 for March ********* 710 LONG RIDGE: Reports $415,753 Net Loss in March -------------------------------------------------- 710 Long Ridge Road Operating Company II, LLC, on April 23, 2013, filed its monthly operating report for the month of March. The Debtor posted a net loss of $415,753 on net revenue of $1.22 million for the month ended March 31, 2013. As of March 31, 2013, the Debtor had total assets of $3.03 million, total liabilities of $19.2 million, and total stockholders' deficit of $16.17 million. For the month of March, 710 Long Ridge had total cash receipts of $1.55 million and total cash disbursements of $670,042. About 710 Long Ridge 710 Long Ridge Road Operating Company II, LLC and four affiliates own sub-acute and long-term nursing care facilities for the elderly in Connecticut. The facilities, which are managed by HealthBridge Management LLC, are Long Ridge of Stamford, Newington Health Care Center, Westport Health Care Center, West River Health Care Center, and Danbury Health Care Center. 710 Long Ridge and its affiliates sought Chapter 11 protection (Bankr. D.N.J. Case Nos. 13-13653 to 13-13657) on Feb. 24, 2013, to modify their collective bargaining agreements with the New England Health Care Employees Union, District 1199, SEIU. The Debtors owe $18.9 million to M&T Bank and $7.99 million on loans from the U.S. Department of Housing and Urban Development Federal Housing Administration. Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, serve as counsel to the Debtors. Logan & Company, Inc. is the claims and notice agent. Alvarez & Marsal Healthcare Industry Group, LLC, is the financial advisor. An Official Committee of Unsecured Creditors has been appointed in the case. Kevin P. Lombardo also has been named patient care ombudsman for the Debtors. AMBAC FINANCIAL: Net Profit Down to $67.6 Million in February ------------------------------------------------------------- Ambac Financial Group, Inc. Balance Sheet As of February 28, 2013 ASSETS: Current Assets: Unrestricted Cash and Equivalents $26,892,225 Restricted Cash and Cash Equivalents - Accounts Receivable - Notes Receivable 1,293,168 Inventories - Prepaid Expenses 287,119 Professional Retainers 88,243 Other Current Assets 30,623 ----------------- Total Current Assets 28,591,378 Property & Equipment: Real Property and Improvements - Machinery & Equipment - Furniture, Fixtures, and Office Equipment - Leasehold Improvements - Vehicles - Less: Accumulated Depreciation - ----------------- Total Property & Equipment - Other Assets: Amounts Due From Insiders 4,372,103 Other Assets (2,039,658,743) ----------------- Total Other Assets (2,035,286,730) ----------------- Total Assets ($2,006,695,352) ================= LIABILITIES AND OWNERS' EQUITY: Liabilities Not Subject to Compromise (Postpetition) Accounts Payable - Taxes Payable $1,900,000 Wages Payable - Notes Payable - Rent/Leases - Building/Equipment - Secured Debt/Adequate Protection Payments - Professional Fees 14,299,429 Amounts Due to Insiders - Other Postpetition Liabilities - ----------------- Total Postpetition Liabilities 16,199,429 Liabilities Subject to Compromise (Prepetition): Secured Debt - Priority Debt - Unsecured Debt 1,704,939,747 ----------------- Total Prepetition Liabilities 1,704,939,747 Total Liabilities 1,721,139,176 Owners' Equity: Capital Stock 3,080,168 Additional Paid-in Capital 2,172,026,548 Partners' Capital Account - Owners' Equity Account - Retained earnings - prepetition (3,896,443,042) Retained earnings - postpetition (2,224,764,172) Adjustments to Owner Equity 218,265,970 Postpetition Contributions - ----------------- Net Owners' Equity (3,727,834,528) ----------------- Total Liabilities & Owners' Equity ($2,006,695,352) ================= Ambac Financial Group, Inc. Statement of Operations For the month ended February 28, 2013 Gross Revenues - Less: Returns & Allowances - ----------------- Net Revenue - Cost of Goods Sold: Beginning Inventory - Add: Purchases - Cost of labor - Other costs - Less: Ending Inventory - ----------------- Cost of Goods Sold - Gross Profit - Operating Expenses: Advertising - Auto and Truck Expense - Bad Debts - Contributions - Employee Benefits Programs - Officer/Insider Compensation $57,042 Insurance 57,423 Management Fees/Bonuses - Office Expense - Pension & profit sharing plans - Repairs & Maintenance - Rent and Lease Expense - Salaries/Commissions/Fees - Supplies - Taxes - Payroll - Taxes - Real Estate - Taxes - Other - Travel & Entertainment - Utilities - Other 676,177 ----------------- Total Operating Expenses Before Depreciation 790,642 Depreciation/Depletion/Amortization - ----------------- Net profit(loss) Before Other Income & Expenses (790,642) Other Income and Expenses: Other income 9,047 Interest Expense - Other Expense (68,570,834) ----------------- Net profit (loss) Before Reorganization Items 67,789,239 Reorganization Items: Reorganization Items: Professional Fees 90,498 U.S. Trustee Quarterly Fees 9,750 Interest on Cash from Chapter 11 - Gain from Sale of Equipment - Other Reorganization Expenses - ----------------- Total Reorganization Expenses 100,248 ----------------- Income Taxes - ----------------- Net Profit (Loss) $67,688,991 ================= Ambac Financial Group, Inc. Schedule of Cash Receipts and Disbursements For the month ended February 28, 2013 Cash Beginning of Month $27,987,281 Receipts: Cash Sales - Accounts Receivable - Prepetition - Accounts Receivable - Postpetition - Loans and Advances - Sale of Assets - Other 2,644 Transfers 2,192,644 ----------------- Total Receipts 2,195,288 Disbursements: Gross Payroll - Sales, Use, & Other Taxes - Inventory Purchases - Secured/Rental/Leases - Insurance - Administrative - Selling - Other 1,097,700 Owner Draw - Transfers (to DIP Accts.) 2,192,644 Professional Fees - U.S. Trustee Quarterly Fees - Court Costs - ----------------- Total Disbursements 3,290,344 ----------------- Net Cash Flow (1,095,056) ----------------- Cash - End of Month $26,892,225 ================= AMERICAN AIRLINES: Generates $91 Million Operating Profit in March ------------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that AMR Corp., parent of American Airlines Inc., reported a $91 million operating profit in March, a turnaround from the $129 million operating loss in February. The monthly operating report filed with the bankruptcy court in New York reflects a $193 million net loss, resulting from $145 million in reorganization costs and $164 million of interest expense. The loss would have been larger absent a $22 million tax benefit. The March net loss was little changed from the $192 million bottom-line loss in February. AMR ended March with $4.244 billion in unrestricted cash, up from $4.05 billion at the close of February. Restricted cash was another $853 million. 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. 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. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The deal is subject to clearance by U.S. and foreign regulators and by the bankruptcy judge overseeing AMR's bankruptcy case. 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). AMF BOWLING: Has $30.08 Million Cash at February 3 -------------------------------------------------- AMF Bowling Worldwide Inc. et al., on March 14, 2013, filed its monthly operating report for the period from Dec. 31, 2012, to Feb. 3, 2013. The Company reported a net income of $3.26 million on operating revenue of $46.65 million for the period ended Feb. 3, 2013. For the current period, the Company had total assets of $267.12 million, total liabilities of $430.25 million, and total stockholders' deficit of $163.14 million. As of Dec. 31, 2012, the Company had $27.2 million in cash. At the end of the period, AMF Bowling had total cash of $30.08 million. About AMF Bowling Worldwide AMF Bowling Worldwide Inc. is the largest operator of bowling centers in the world. The Company and several affiliates sought Chapter 11 protection (Bankr. E.D. Va. Case Nos. 12-36493 to 12-36508) on Nov. 12 and 13, 2012, after reaching an agreement with a majority of its secured first lien lenders and the landlord of a majority of its bowling centers to restructure through a first lien lender-led debt-for-equity conversion, subject to higher and better offers through a marketing process. At the time of the bankruptcy filing, AMF operated 262 bowling centers across the United States and, through its non-Debtor facilities, and 8 bowling centers in Mexico -- more than three times the number of bowling centers of its closest competitor. Debt for borrowed money totals $296 million, including $216 million on a first-lien term loan and revolving credit, and $80 million on a second-lien term loan. Mechanicsville, Virginia-based AMF first filed for bankruptcy reorganization in July 2001 and emerged with a confirmed Chapter 11 plan in February 2002 by giving unsecured creditors 7.5% of the new stock. The bank lenders, owed $625 million, received a combination of cash, 92.5% of the stock, and $150 million in new debt. At the time, AMF had over 500 bowling centers. Judge Kevin R. Huennekens oversees the 2012 case, taking over from Judge Douglas O. Tice, Jr. Patrick J. Nash, Jr., Esq., Jeffrey D. Pawlitz, Esq., and Joshua A. Sussberg, Esq., at Kirkland & Ellis LLP; and Dion W. Hayes, Esq., John H. Maddock III, Esq., and Sarah B. Boehm, Esq., at McGuirewoods LLP, serve as the Debtors' counsel. Moelis & Company LLC serves as the Debtors' investment banker and financial advisor. McKinsey Recovery & Transformation Services U.S., LLC, serves as the Debtors' restructuring advisor. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. Kristopher M. Hansen, Esq., Sayan Bhattacharyya, Esq., and Marianne S. Mortimer, Esq., at Stroock & Stroock & Lavan LLP; and Peter J. Barrett, Esq., and Michael A. Condyles, Esq., at Kutak Rock LLP, represent the first lien lenders. An ad hoc group of second lien lenders is represented by Lynn L. Tavenner, Esq., and Paula S. Beran, Esq., at Tavenner & Beran, PLC; and Ben H. Logan, Esq., Suzzanne S. Uhland, Esq., and Jennifer M. Taylor, Esq., at O'Melveny & Myers LLP. The Official Committee of Unsecured Creditors retained Pachulski Stang Ziehl & Jones LLP as its lead counsel; Christian & Barton, LLP as its local counsel; and Mesirow Financial Consulting, LLC as its financial advisors. AMF BOWLING: Has $36.14 Million Cash at March 3 ----------------------------------------------- AMF Bowling Worldwide Inc. et al., on Apr. 15, 2013, filed its monthly operating report for the period from Feb. 4 through March 3, 2013. The Debtor reported a net income of $3.13 million on operating revenue of $39.5 million for the period ended March 3, 2013. For the current period, AMF Bowling had total assets of $272.26 million, total liabilities of $432.45 million, and total stockholders' deficit of $160.19 million. At the beginning of the period, AMF Bowling had $30.08 million in cash. As of March 3, 2013, the Debtor had total cash of $36.14 million. About AMF Bowling Worldwide AMF Bowling Worldwide Inc. is the largest operator of bowling centers in the world. The Company and several affiliates sought Chapter 11 protection (Bankr. E.D. Va. Case Nos. 12-36493 to 12-36508) on Nov. 12 and 13, 2012, after reaching an agreement with a majority of its secured first lien lenders and the landlord of a majority of its bowling centers to restructure through a first lien lender-led debt-for-equity conversion, subject to higher and better offers through a marketing process. At the time of the bankruptcy filing, AMF operated 262 bowling centers across the United States and, through its non-Debtor facilities, and 8 bowling centers in Mexico -- more than three times the number of bowling centers of its closest competitor. Debt for borrowed money totals $296 million, including $216 million on a first-lien term loan and revolving credit, and $80 million on a second-lien term loan. Mechanicsville, Virginia-based AMF first filed for bankruptcy reorganization in July 2001 and emerged with a confirmed Chapter 11 plan in February 2002 by giving unsecured creditors 7.5% of the new stock. The bank lenders, owed $625 million, received a combination of cash, 92.5% of the stock, and $150 million in new debt. At the time, AMF had over 500 bowling centers. Judge Kevin R. Huennekens oversees the 2012 case, taking over from Judge Douglas O. Tice, Jr. Patrick J. Nash, Jr., Esq., Jeffrey D. Pawlitz, Esq., and Joshua A. Sussberg, Esq., at Kirkland & Ellis LLP; and Dion W. Hayes, Esq., John H. Maddock III, Esq., and Sarah B. Boehm, Esq., at McGuirewoods LLP, serve as the Debtors' counsel. Moelis & Company LLC serves as the Debtors' investment banker and financial advisor. McKinsey Recovery & Transformation Services U.S., LLC, serves as the Debtors' restructuring advisor. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. Kristopher M. Hansen, Esq., Sayan Bhattacharyya, Esq., and Marianne S. Mortimer, Esq., at Stroock & Stroock & Lavan LLP; and Peter J. Barrett, Esq., and Michael A. Condyles, Esq., at Kutak Rock LLP, represent the first lien lenders. An ad hoc group of second lien lenders is represented by Lynn L. Tavenner, Esq., and Paula S. Beran, Esq., at Tavenner & Beran, PLC; and Ben H. Logan, Esq., Suzzanne S. Uhland, Esq., and Jennifer M. Taylor, Esq., at O'Melveny & Myers LLP. The Official Committee of Unsecured Creditors retained Pachulski Stang Ziehl & Jones LLP as its lead counsel; Christian & Barton, LLP as its local counsel; and Mesirow Financial Consulting, LLC as its financial advisors. ATARI INC: Posts $5.19 Million Net Loss in March ------------------------------------------------ Atari, Inc., et al., on Apr. 15, 2013, filed its monthly operating report for the month ended March 31, 2013. The Company posted net loss of $5.19 million on net revenue of $1.04 million for the month ended March 31, 2013. As of March 31, 2013, the Company had total assets of $31.51 million, total liabilities of $326.14 million and total stockholders' deficit of $294.63 million. At the beginning of the month, the Company had $2.97 million in cash. Atari had total cash receipts of $4.36 million and total cash disbursements of $4.24 million. As a result, at the end of March, the Company had total cash of $3.09 million. About Atari Atari -- http://www.atari.com-- is a multi-platform, global interactive entertainment and licensing company. Atari owns and/or manages a portfolio of more than 200 games and franchises, including world renowned brands like Asteroids(R), Centipede(R), Missile Command(R), Pong(R), Test Drive(R), Backyard Sports(R), and Rollercoaster Tycoon(R). Atari Inc. and its U.S. affiliates filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Lead Case No. 13-10176) on Jan. 21, 2013, to break away from their unprofitable French parent company and secure independent capital. A day after its American unit filed for Chapter 11 bankruptcy protection, Paris-based Atari S.A. took a similar measure under Book 6 of that country's commercial code. Atari S.A. said it was filing for legal protection because its longtime backer BlueBay has sought to sell its 29% stake and demanded repayment by March 31 on a credit line of $28 million that it cut off in December. Peter S. Partee, Sr. and Michael P. Richman of Hunton & Williams LLP are proposed to serve as lead counsel for the U.S. companies in their Chapter 11 cases. BMC Group is the claims and notice agent. Protiviti Inc. is the financial advisor. The Official Committee of Unsecured Creditors is seeking Court permission to retain Duff & Phelps Securities LLC as its financial advisor. The Committee sought and obtained authority to retain Cooley LLP as its counsel. ATP OIL: February Net Loss Revised to $21.23 Million ---------------------------------------------------- ATP Oil & Gas Corporation, on April 25, 2013, filed a revised monthly operating report for the month ended Feb. 28, 2013, to report a net loss of $21.23 million from $22.08 million that was originally reported. Total stockholders' deficit was also revised from $143.03 million to $142.18 million, with revised retained earnings (post-filing date) of ($117.75) million. The Company's revenues, assets, liabilities, cash receipts, cash disbursements, and total cash for February 2013 remain the same. About ATP Oil Houston, Tex.-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-36187) on Aug. 17, 2012. Attorneys at Mayer Brown LLP, serve as bankruptcy counsel. Munsch Hardt Kopf & Harr, P.C., is the conflicts counsel. Opportune LLP is the financial advisor and Jefferies & Company is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. ATP disclosed assets of $3.6 billion and $3.5 billion of liabilities as of March 31, 2012. Debt includes $365 million on a first-lien loan where Credit Suisse AG serves as agent. There is $1.5 billion on second-lien notes with Bank of New York Mellon Trust Co. as agent. ATP's other debt includes $35 million on convertible notes and $23.4 million owing to third parties for their shares of production revenue. Trade suppliers have claims for $147 million, ATP said in a court filing. An official committee of unsecured creditors has been appointed in the case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley & McCloy, in New York, represents the Creditors Committee as counsel. A 7-member panel of equity security holders has also been appointed in the case. Kyung S. Lee, Esq., and Charles M. Rubio, Esq. of Diamond McCarthy LLP, in Houston, Texas, serve as counsel to the Equity Committee. ATP OIL: Net Loss in March Doubles to $50.44 Million ---------------------------------------------------- ATP Oil & Gas Corporation, on April 25, 2013, filed its monthly operating report for the month ended March 31, 2013. The Company reported a net loss of $50.44 million on revenues of $39.71 million for March 2013, as compared to a $21.23 million net loss on revenues of $27.91 million for February. Operating loss for March was $36.8 million on revenues of $39.7 million, Bill Rochelle of Bloomberg News pointed out. The operating loss was the result of a $43 million impairment charge on oil and gas properties. Under the Company's reorganization expenses for March, professional fees totaled $2.38 million. As of March 31, 2013, the Company had total assets of $2.94 billion, total liabilities of $3.14 billion, and total stockholders' deficit of $198.75 million. At the beginning of March, ATP Oil had 34.39 million in cash. For the reporting period, the Company had total cash receipts of $26.77 million and total cash disbursements of $41.99 million. As a result, at the end of the month, ATP Oil had total cash of $19.17 million. About ATP Oil Houston, Tex.-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-36187) on Aug. 17, 2012. Attorneys at Mayer Brown LLP, serve as bankruptcy counsel. Munsch Hardt Kopf & Harr, P.C., is the conflicts counsel. Opportune LLP is the financial advisor and Jefferies & Company is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. ATP disclosed assets of $3.6 billion and $3.5 billion of liabilities as of March 31, 2012. Debt includes $365 million on a first-lien loan where Credit Suisse AG serves as agent. There is $1.5 billion on second-lien notes with Bank of New York Mellon Trust Co. as agent. ATP's other debt includes $35 million on convertible notes and $23.4 million owing to third parties for their shares of production revenue. Trade suppliers have claims for $147 million, ATP said in a court filing. An official committee of unsecured creditors has been appointed in the case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley & McCloy, in New York, represents the Creditors Committee as counsel. A 7-member panel of equity security holders has also been appointed in the case. Kyung S. Lee, Esq., and Charles M. Rubio, Esq. of Diamond McCarthy LLP, in Houston, Texas, serve as counsel to the Equity Committee. BETSEY JOHNSON: Ends January With $1.44 Million Cash ---------------------------------------------------- Betsey Johnson LLC, on March 14, 2013, filed its monthly operating report for the period from Dec. 30, 2012, to Jan. 31, 2013. The Debtor reported a net loss of $108,187 for the month ended Jan. 31, 2013. As of Jan. 31, 2013, the Debtor had total assets of $1.68 million, total liabilities of $9.62 million, and total stockholders' deficit of $7.94 million. For the reporting period, the Debtor had total cash disbursements of $192,070. Betsey Johnson had total cash of $1.44 million at the end of the period. About Betsey Johnson New York-based women's fashion retailer Betsey Johnson LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 12-11732) on April 26, 2012, to effectuate a sale of its assets. Formed as B.J. Vines by its namesake, iconic fashion designer Betsey Johnson in 1978, the Debtor sells clothing, footwear, handbags and a signature fragrance through 63 Betsey Johnson retail stores and outlets in the U.S. The Company, which has 400 employees, also sells its products in department and specialty stores worldwide, including Macy's and Lord & Taylor, and online at http://www.betseyjohnson.com/ Non-debtor subsidiaries operate five stores in Canada and one store in England. In 2010, Steven Madden Ltd. a footwear designer and marketer, swapped US$27.4 million of secured debt for ownership of Betsey Johnson's trademarks and intellectual property. The deal satisfied all outstanding debt under a US$50 million term loan used to finance the business' acquisition by Castanea Partners. At the same time, Castanea, the company's majority owner, made a new capital investment of US$3 million as part of the deal with Madden. Betsey Johnson estimated assets and debts of US$10 million to US$50 million as of the Chapter 11 filing. Judge James Peck oversees the case. The Debtor tapped the law firm of Goulston & Storrs, as counsel; Togut, Segal & Segal, LLP, as co-counsel; and Donlin Recano & Company as claims and notice agent. The petition was signed by Jonathan Friedman, chief financial officer. Hahn & Hessen LLP serves as the Official Committee of Unsecured Creditors' counsel. In May 2012, Betsey Johnson received court approval to begin liquidation after the Debtor failed to attract going concern bidders. Liquidators Gordon Brothers Group Inc. and Hilco Merchant Resources LLC offered the top bid for the right to run the chain's going-out-of-business sales. The bid will bring the Debtor about $5.2 million immediately, and more money could trickle in to pay off its debts if the liquidation effort brings in more money than expected. Hilco is represented by Chris L. Dickerson, Esq., at DLA Piper LLP (US). Counsel for Steven Madden, Ltd., is Neil Herman, Esq., at Morgan, Lewis & Bockius LLP. Counsel for First Niagara Commercial Finance, Inc., the DIP Lender, is James C. Fox, Esq., at Ruberto, Israel & Weiner. EASTMAN KODAK: Posts $66.77 Million Net Loss for March ------------------------------------------------------ Eastman Kodak Company, on Apr. 29, 2013, filed its monthly operating report for the month ended March 31, 2013. The Debtor posted a net loss of $66.77 million on revenues of $169.65 million for the month ended March 31, 2013, down from a $404.3 million net income on revenues of $129.8 million for February. As of March 31, 2013, the Debtor had total assets of $3.59 billion, total liabilities of $4.96 billion and total stockholders' deficit of $1.37 billion. For the month of March, the Debtor had total cash receipts of $147.51 million and total cash disbursements of $163.94 million. At the end of the month, Eastman Kodak had total cash of $406.92 million. A full-text copy of the monthly operating report is available at: http://is.gd/lXfCHy 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. 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. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. 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. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. FIBERTOWER CORP: Has $1.35 Million Cash at March 31 --------------------------------------------------- FiberTower Corporation, on Apr. 16, 2013, filed its monthly operating report for the month ended March 31, 2013. The Company posted a net loss of $1.38 million on net revenue of $1,217 million for the month ended March 31, 2013. As of March 31, 2013, the Company had total assets of $326.28 million, total liabilities of $199.31 million, and total stockholders' equity of $126.97 million. At the beginning of the month, FiberTower Corp. had $1.67 million in cash. The Company had total cash receipts of $15 and total cash disbursements of $318,331. As a result, at the end of March, FiberTower Corp. had total cash of $1.35 million. About FiberTower Corporation FiberTower Corporation, FiberTower Network Services Corp., FiberTower Licensing Corp., and FiberTower Spectrum Holdings LLC filed for Chapter 11 protection (Bankr. N.D. Tex. Case Nos. 12-44027 to 12-44031) on July 17, 2012, together with a plan support agreement struck with prepetition secured noteholders. FiberTower is an alternative provider of facilities-based backhaul services, principally to wireless carriers, and a national provider of millimeter-band spectrum services. Backhaul is the transport of voice, video and data traffic from a wireless carrier's mobile base station, or cell site, to its mobile switching center or other exchange point. FiberTower provides spectrum leasing services directly to other carriers and enterprise clients, and also offer their spectrum services through spectrum brokerage arrangements and through fixed wireless equipment partners. FiberTower's significant asset is the ownership of a national spectrum portfolio of 24 GHz and 39 GHz wide-area spectrum licenses, including over 740 MHz in the top 20 U.S. metropolitan areas and, in the aggregate, roughly 1.72 billion channel pops (calculated as the number of channels in a given area multiplied by the population, as measured in the 2010 census, covered by these channels). FiberTower believes the Spectrum Portfolio represents one of the largest and most comprehensive collections of millimeter wave spectrum in the U.S., covering areas with a total population of over 300 million. As of the Petition Date, FiberTower provides service to roughly 5,390 customer locations at 3,188 deployed sites in 13 markets throughout the U.S. The fixed wireless portion of these hybrid services is predominantly through common carrier spectrum in the 11, 18 and 23 GHz bands. FiberTower's biggest service markets are Dallas/Fort Worth and Washington, D.C./Baltimore, with additional markets in Atlanta, Boston, Chicago, Cleveland, Denver, Detroit, Houston, New York/New Jersey, Pittsburgh, San Antonio/Austin/Waco and Tampa. As of June 30, 2012, FiberTower's books and records reflected total combined assets, at book value, of roughly $188 million and total combined liabilities of roughly $211 million. As of the Petition Date, FiberTower had unrestricted cash of roughly $23 million. For the six months ending June 30, 2012, FiberTower had total revenue of roughly $33 million. With the help of FTI Consulting Inc., FiberTower's preliminary valuation work shows that the Company's enterprise value is materially less than $132 million -- i.e., the approximate principal amount of the 9.00% Senior Secured Notes due 2016 outstanding as of the Petition Date. The preliminary valuation work is based upon the assumption that FiberTower's spectrum licenses will not be terminated. Fibertower Spectrum disclosed $106,630,000 in assets and $175,501,975 in liabilities as of the Chapter 11 filing. Judge D. Michael Lynn oversees the Chapter 11 case. Lawyers at Andrews Kurth LLP serve as the Debtors' lead counsel. Lawyers at Hogan Lovells and Willkie Farr and Gallagher LLP serve as special FCC counsel. FTI Consulting serve as financial advisor. BMC Group Inc. serve as claims and noticing agent. The petitions were signed by Kurt J. Van Wagenen, president. Wells Fargo Bank, National Association -- as indenture trustee and collateral agent to the holders of 9.00% Senior Secured Notes due 2016 owed roughly $132 million as of the Petition Date -- is represented by Eric A. Schaffer, Esq., at Reed Smith LLP. An Ad Hoc Committee of Holders of the 9% Secured Notes Due 2016 is represented by Kris M. Hansen, Esq., and Sayan Bhattacharyya, Esq., at Stroock & Stroock & Lavan LLP. Wells Fargo and the Ad Hoc Committee also have hired Stephen M. Pezanosky, Esq., and Mark Elmore, Esq., at Haynes and Boone, LLP, as local counsel. U.S. Bank, National Association -- in its capacity as successor indenture trustee and collateral agent to holders of the 9.00% Convertible Senior Secured Notes due 2012, owed $37 million as of the Petition Date -- is represented by Michael B. Fisco, Esq., at Faegre Baker Daniels LLP, as counsel and J. Mark Chevallier, Esq., at McGuire Craddock & Strother PC as local counsel. William T. Neary, the U.S. Trustee for Region 6 appointed five members to the Official Committee of Unsecured Creditors in the Debtors' cases. The Committee is represented by Otterbourg, Steindler, Houston & Rosen, P.C., and Cole, Schotz, Meisel, Forman & Leonard, P.A. Goldin Associates, LLC serves as its financial advisors. FLAT OUT: Reports $200,171 Net Loss for Period Ended April 3 ------------------------------------------------------------ Flat Out Crazy, LLC, on Apr. 20, 2013, filed its monthly operating report for the period from Feb. 28 through Apr. 3, 2013. The Debtor posted a net loss of $200,171 on net revenue of $4.75 million for the period ended Apr. 3, 2013. For the current period, the Debtor had total assets of $18.23 million, total liabilities of $12.05 million, and total stockholders' equity of $6.18 million. As of Feb. 28, 2013, Flat Out Crazy had $1.07 million in cash. The Debtor had total cash receipts of $5.17 million and total cash disbursements of $4.96 million. As a result, at the end of the period, Flat Out Crazy had total cash of $1.27 million. About Flat Out Crazy Flat Out Crazy LLC and its affiliates operate two Asian-inspired restaurant chains that began in Chicago. Flat Top Grill, which currently has 15 locations, is a full-service fast-casual create- your-own stir-fry concept. Stir Crazy Fresh Asian Grill, which has 11 locations, is a full-service casual Asian restaurant offering the flavors of Chinese, Japanese, Thai and Vietnamese food. The Debtors have 1,200 employees. Flat Out Crazy and 13 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 13-22094) in White Plains, New York on Jan. 25, 2013. The Debtors have tapped Squire Sanders (US) LLP as counsel; Kurtzman Carson Consultants, LLC, as claims, noticing and administrative agent; William H. Henrich and Mark Samson from Getzler Henrich as their co-chief restructuring officers; and J.H. Chapman Group, L.L.C, as their investment bankers. The Debtor disclosed $24,339,542 in assets and $15,899,166 in liabilities as of the Chapter 11 filing. An official committee of unsecured creditors has been appointed in the Debtors' cases. The Committee tapped to retain Kelley Drye & Warren LLP as its counsel and CBIZ Accounting, Tax and Advisory of New York, LLC as financial advisor. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed Alan Chapell, as the consumer privacy ombudsman in the Debtors' cases. HOSTESS BRANDS: Has $2.79-Bil Stockholders' Deficit as of Mar. 9 ---------------------------------------------------------------- Hostess Brands, Inc., et al., on Apr. 12, 2013, filed its monthly operating report for the period from Feb. 10 to March 9, 2013. The Debtor reported a net income of $17.13 million on net revenue of $1.51 million for the reporting period. As of March 9, 2013, Hostess Brands had total assets of $744.6 million, total liabilities of $3.53 billion, and total stockholders' deficit of $2.79 billion. As of Feb. 10, 2013, Hostess Brands had $43.7 million in cash. For the reporting period, the Debtor had total cash receipts of $5.68 million and total cash disbursements of $24.25 million. As a result, at the end of the period, Hostess Brands had total cash of $25.13 million. About Hostess Brands Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known for iconic brands such as Butternut, Ding Dongs, Dolly Madison, Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride, Twinkies and Wonder. Hostess has 36 bakeries, 565 distribution centers and 570 outlets in 49 states. Hostess filed for Chapter 11 bankruptcy protection early morning on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through 12-22056) in White Plains, New York. Hostess Brands disclosed assets of $982 million and liabilities of $1.43 billion as of the Chapter 11 filing. The bankruptcy filing was made two years after predecessors Interstate Bakeries Corp. and its affiliates emerged from bankruptcy (Bankr. W.D. Mo. Case No. 04-45814). In the new Chapter 11 case, Hostess has hired Jones Day as bankruptcy counsel; Stinson Morrison Hecker LLP as general corporate counsel and conflicts counsel; Perella Weinberg Partners LP as investment bankers, FTI Consulting, Inc. to provide an interim treasurer and additional personnel for the Debtors, and Kurtzman Carson Consultants LLC as administrative agent. Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry Wilson, the head of turnaround and restructuring firm MAEVA Advisors, are representing the Teamsters union. Attorneys for The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union and Bakery & Confectionery Union & Industry International Pension Fund are Jeffrey R. Freund, Esq., at Bredhoff & Kaiser, P.L.L.C.; and Ancela R. Nastasi, Esq., David A. Rosenzweig, Esq., and Camisha L. Simmons, Esq., at Fulbright & Jaworski L.L.P. The official committee of unsecured creditors selected New York law firm Kramer Levin Naftalis & Frankel LLP as its counsel. Tom Mayer and Ken Eckstein head the legal team for the committee. Hostess Brands in mid-November 2012 opted to pursue the orderly wind down of its business and sale of its assets after the Bakery, Confectionery, Tobacco and Grain Millers Union (BCTGM) commenced a nationwide strike. The Debtor failed to reach an agreement with BCTGM on contract changes. Hostess Brands said it intends to retain approximately 3,200 employees to assist with the initial phase of the wind down. Employee headcount is expected to decrease by 94% within the first 16 weeks of the wind down. The entire process is expected to be completed in one year. Hostess has received court approval for sales raising about $800 million. Apollo Global Management LLC and C. Dean Metropoulos & Co. are buying the snack cake business for $410 million. Flowers Foods Inc. is taking most of the bread business, including the Wonder bread brand for $360 million. Neither of the sales attracted competitive bidding. After an auction with competitive bidding, Mexican baker Grupo Bimbo SAB was given a green light to buy the Beefsteak rye bread business for $31.9 million. INTERFAITH MEDICAL: Reports $3.28 Million Net Loss in March ----------------------------------------------------------- Interfaith Medical Center, Inc., on Apr. 25, 2013, filed its monthly operating report for the month of March. The Company posted a net loss of $3.28 million on total revenue of $16.39 million for the month ended March 31, 2013. As of March 31, 2013, the Company had total assets of $139.52 million, total liabilities of $356.25 million, and total stockholders' deficit of $216.72 million. At the end of the month, Interfaith Medical had total cash of $12.6 million. About Interfaith Medical Center Headquartered in Brooklyn, New York, Interfaith Medical Center, Inc., operates a 287-bed hospital on Atlantic Avenue in Bedford- Stuyvesant and an ambulatory care network of eight clinics in central Brooklyn, in Crown Heights and Bedford-Stuyvesant. The Company filed for Chapter 11 protection (Bankruptcy E.D. N.Y. Case No. 12-48226) on Dec. 2, 2012. The Debtor disclosed $111,872,972 in assets and $193,540,998 in liabilities as of the Chapter 11 filing. Alan J. Lipkin, Esq., at Willkie Farr & Gallagher LLP, serves as bankruptcy counsel to the Debtor. Nixon Peabody LLP is the special corporate and healthcare counsel. CohnReznick LLP serves as financial advisor. Donlin, Recano & Company, Inc. serves as administrative agent. The Official Committee of Unsecured Creditors tapped Alston & Bird LLP as its counsel, and CBIZ Accounting, Tax & Advisory of New York, LLC as its financial advisor. LEHMAN BROTHERS: Free Cash Rises to $1.6 Billion During March ------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that reorganized Lehman Brothers Holdings Inc. ended March with $24.38 billion in total cash, up $950 million from the month earlier. With regard to free cash, a subset of the operating report indicating what Lehman can distribute to creditors in upcoming months, the figures show $11.4 billion at the end of March, an increase of about $1.6 billion. The increase in free cash is due in part to a $630 million decline in March in reserves for paying claims. Reserved cash ended March at $12.98 billion. Lehman generated about $1 billion of cash during March and paid out $52 million, for a net cash flow of some $950 million. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. NAMCO LLC: Expects $1.53 Million Cash by June 23 ------------------------------------------------ Namco, LLC, on Apr. 12, 2013, filed its initial monthly operating report for the period from March 24 to June 23, 2013. The Debtor is forecasting $2.16 million in total cash collected and total disbursements of $1.53 million by the end of the period. About Namco Manchester, Connecticut-based Namco, LLC, is a 37-store retailer of swimming pools and accessories owned 50-50 by Garmark Partners II LLC and J.H. Whitney & Co. It filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 13-10610) on March 24, 2013, in Wilmington. Judge Peter J. Walsh presides over the case. Anthony M. Saccullo, Esq., at A.M. Saccullo Legal, LLC, and Thomas H. Kovach, Esq., at Thorp Reed & Armstrong, LLP, serve as the Debtor's counsel. Olshan Frome & Wolosky, LLP, is the Debtor' general bankruptcy counsel. Epiq Bankruptcy Solutions, LLC, is the Debtor's claims and noticing agent. Clear Thinking Group, LLC, serves as the Debtor's restructuring agent. In its Petition, the Debtor estimated its assets and debts at between $10 million to $50 million each. The Petition was signed by Lee Diercks, chief restructuring officer. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven members to the Official Committee of Unsecured Creditors. PENSON WORLDWIDE: Lists $211,245 Net Loss in March -------------------------------------------------- Penson Worldwide Inc. and its debtor-affiliates on April 30, 2013, filed separate monthly operating reports for the month ended March 31, 2013. Penson Worldwide Inc. posted a net loss of $211,245 on total revenues of $0 for the month ended March 31, 2013, while Penson Financial Services Inc. posted a net loss of $97,031 on total revenues of $375,567. As of March 31, 2013, Penson Worldwide Inc. had total assets of $(41,580,063), total liabilities of $71,659,036 and total shareholders' deficit of $113,239,099. Penson Financial Services Inc., on the other hand, had total assets of $249,783,152, total liabilities of $111,442,305 and total shareholders' equity of $138,340,847. For the month of March, Penson Worldwide Inc. had total cash receipts of $0, total disbursements of $0, and $0 cash at the end of the month. Meanwhile, Penson Financial Services Inc. had total cash receipts of $3,143,584, total disbursements of $(3,045,654), and $1,924,197 in cash at the end of the month. A full-text copy of the monthly operating report is available at: http://is.gd/93c7kU About Penson Worldwide Plano, Texas-based Penson Worldwide Inc. and its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-10061) on Jan. 11, 2013. Founded in 1995, Penson Worldwide is provider of a range of critical securities and futures processing infrastructure products and services to the global financial services industry. The company's products and services include securities and futures clearing and execution, financing and cash management technology and other related offerings, and it provides tools and services to support trading in multiple markets, asset classes and currencies. Penson was one of the top two clearing brokers overall in the United States. Its foreign-based subsidiaries were some of the largest independent clearing brokers in Canada and Australia and the second largest independent clearing broker in the United Kingdom as of Dec. 31, 2010. In 2012, the company sold its futures division to Knight Capital Group Inc. and its broker-deal subsidiary to Apex Clearing Corp. But the company was unable to successfully streamline is business after the asset sales. Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. The U.S. Trustee for Region 3 appointed three members to the Official Committee of Unsecured Creditors: (i) Schonfeld Group Holdings LLC; (ii) SunGard Financial Systems LLC; and (iii) Wells Fargo Bank, N.A., as Indenture Trustee. The Committee selected Hahn & Hessen LLP and Cousins Chipman & Brown, LLP to serve as its co-counsel, and Capstone Advisory Group, LLC, as its financial advisor. Kurtzman Carson Consultants LLC serves as its information agent. The company estimated $100 million to $500 million in assets and liabilities in its Chapter 11 petition. The last publicly filed financial statements as of June 30 showed assets of $1.17 billion and liabilities totaling $1.227 billion. PROMMIS HOLDINGS: Forecasts $1.06 Million Cash Balance by June 14 ----------------------------------------------------------------- Prommis Holdings, LLC et al., on Apr. 9, 2013, filed its initial monthly operating report for the period from March 22 through June 14, 2013. As of March 22, 2013, the Company had $3.35 million in cash. The Company is forecasting total cash disbursements of $17.86 million by the end of the period. As a result, Prommis Holdings is forecasting total cash of $1.06 million as of June 14, 2013. About Prommis Holdings Atlanta, Georgia-based Prommis Holdings LLC and its 10 affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case No. 13-10551) on March 18, 2013. Judge Brendan Linehan Shannon presides over the case. Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice, LLP, serves as the Debtors' counsel, while Kirkland & Ellis LLP serves as co-counsel. The Debtors' restructuring advisor is Huron Consulting Services, LLC. Donlin Recano & Company, Inc., is the Debtors' claims agent. Prommis Holdings estimated between $10 million and $50 million in assets and $50 million and $100 million in liabilities. The petitions were signed by Charles T. Piper, chief executive officer. RAPID-AMERICAN: Has $4.45 Million Cash at March 31 -------------------------------------------------- Rapid-American Corp., on Apr. 10, 2013, filed its monthly operating report for the period between March 8 and 31, 2013. At the beginning of the period, the Debtor had $4,446,261 in cash. As of March 31, 2013, the Debtor had total cash of $4,446,243. About Rapid-American Corp. Rapid-American Corp. filed for bankruptcy protection in Manhattan (Bankr. S.D.N.Y. Case No. 13-10687) on March 8, 2013, to deal with debt related to asbestos personal-injury claims. New York-based Rapid-American was formerly a holding company with subsidiaries primarily engaged in retail sales and consumer products and was never engaged in an asbestos business of any kind. Through a series of merger transactions going back more than 45 years, Rapid has nevertheless incurred successor liability for personal injury claims arising from plaintiffs' exposure to asbestos-containing products sold by The Philip Carey Manufacturing Company -- Old Carey -- as that entity existed prior to June 1, 1967. Attorneys at Reed Smith LLP serve as counsel to the Debtor. The Debtor estimated assets of at least $50 million and liabilities of up to $500 million. RENEGADE HOLDINGS: Posts $46,760 Loss for March ----------------------------------------------- Richard Craver, writing for the Winston-Salem Journal, reports that Renegade Holdings Inc. reported a $46,760 loss for March based on income of $3.05 million and expenses of $3.1 million, according to a bankruptcy filing. The report says Renegade's revenue has ebbed and flowed at times because the company stopped doing business with some legacy customers. For example, it had a $393,498 profit for September. The report relates a hearing was held April 17 to 18 on the second amended reorganization plan submitted by a trustee for Renegade Holdings Inc., and affiliates Renegade Tobacco Co. and Alternative Brands Inc. Peter Tourtellot, bankruptcy trustee for the companies, said he doesn't expect a court ruling at the earliest until mid-May. At an April 18, the report continues, Philip Ziesemer, Renegade's chief financial officer, said Biosyntec, a Paris manufacturer of high-tech cigarette filters and other tobacco products, has been conducting due diligence on Renegade. He said Biosyntec is aware it could require as much as $24 million to meet the three companies' legal and creditor obligations. 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. SCHOOL SPECIALTY: Reports $12.48 Million Net Loss in March ---------------------------------------------------------- School Specialty, Inc., et al., on Apr. 18, 2013, filed its monthly operating report for the period from Feb. 24 to March 30, 2013. The Debtor posted a net loss of $12.48 million on total sales of $41.05 million for the period ended March 30, 2013. As of March 30, 2013, the Debtor had total assets of $401.19 million, total liabilities of $416.62 million, and total stockholders' deficit of $15.43 million. For this period, the Debtor had total cash receipts of $42.06 million and total cash disbursements of $54.87 million. School Specialty had total cash of $17.03 million as of March 30, 2013. About School Specialty Based in Greenville, Wisconsin, School Specialty is a supplier of educational products for kindergarten through 12th grade. Revenue in 2012 was $731.9 million through sales to 70% of the country's 130,000 schools. School Specialty and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 (Bankr. D. Del. Lead Case No. 13-10125) on Jan. 28, 2013. The petition estimated assets of $494.5 million and debt of $394.6 million. The Debtors are represented by lawyers at Paul, Weiss, Rifkind, Wharton & Garrison LLP and Young, Conaway, Stargatt & Taylor, LLP. Alvarez & Marsal North America LLC is the restructuring advisor and Perella Weinberg Partners LP is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. The ABL Lenders are represented by lawyers at Goldberg Kohn and Richards, Layton and Finger, P.A. The Ad Hoc DIP Lenders led by U.S. Bank are represented by lawyers at Stroock & Stroock & Lavan LLP, and Duane Morris LLP. The lending consortium consists of some of the holders of School Specialty Inc.'s 3.75% Convertible Subordinated Notes Due 2026. The Official Committee of Unsecured Creditors appointed in the case is represented by lawyers at Brown Rudnick LLP and Venable LLP. Bayside is represented by Pepper Hamilton LLP and Akin Gump Strauss Hauer & Feld LLP. School Specialty in April 2013 decided to reorganize rather than sell. The company filed a so-called dual track plan that called for selling the business at auction on May 8 or reorganizing while giving stock to lenders and unsecured creditors. The company later served a notice that the auction was canceled and the plan would proceed by swapping debt for stock to be owned by lenders, noteholders, and unsecured creditors. TOUSA INC: Ends March 31 With $308.14 Million in Cash ----------------------------------------------------- TOUSA, Inc., et al., on Apr. 18, 2013, filed its monthly operating report for the month ended March 31, 2013. The Company reported a net loss of $1.58 million for the month ended March 31, 2013. As of March 31, 2013, TOUSA had total assets of $339.76 million, total liabilities of $1.92 billion, and total stockholders' deficit of $1.58 billion. At the beginning of the month, TOUSA had $309.36 million in cash. The Company had total cash receipts of $46,075 and total cash disbursements of $1.26 million. As a result, at the end of March, TOUSA had total cash of $308.14 million. About TOUSA Inc. Headquartered in Hollywood, Florida, TOUSA, Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on Jan. 29, 2008 (Bankr. S.D. Fla. Case No. 08-10928). Richard M. Cieri, Esq., M. Natasha Labovitz, Esq., and Joshua A. Sussberg, Esq., at Kirkland & Ellis LLP, in New York, N.Y.; and Paul S. Singerman, Esq., at Berger Singerman, in Miami, Fla., represent the Debtors in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. The official committee of unsecured creditors has filed a proposed chapter 11 liquidating plan for Tousa. However, the committee said it would no longer pursue approval of its liquidation plan because of the pending appeal of its fraudulent transfer case in the U.S. Court of Appeals for the Eleventh Circuit. A district court in February 2011 held that the bankruptcy judge was wrong in ruling that lenders who were paid off received fraudulent transfers when Tousa gave liens on subsidiaries' properties to bail out and refinance a joint venture. Daniel H. Golden, Esq., and Philip C. Dublin, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, N.Y., represent the creditors committee. The Tousa committee filed a Chapter 11 plan in July 2010 based on an assumption it would win the appeal. THQ INC: Reports $23.13 Million Net Loss For Period Ending Feb. 2 ----------------------------------------------------------------- THQ Inc., on Apr. 26, 2013, filed its monthly operating report for the period from Dec. 30, 2012, to Feb. 2, 2013. The Company posted a net loss of $23.13 million on net sales of $230.97 million for the period ended Feb. 2, 2013. As of Feb. 2, 2013, the Company had total assets of $141.98 million, total liabilities of $30.86 million, and total stockholders' deficit of $111.12 million. For this period, THQ had total cash receipts of $86.75 million and total disbursements of $13.89 million. As of Feb. 2, 2013, the Company had $70.57 million in cash and cash equivalents. A full-text copy of the monthly operating report is available at: http://is.gd/23rvly About THQ Inc. THQ Inc. (NASDAQ: THQI) -- http://www.thq.com/-- is a worldwide developer and publisher of interactive entertainment software. The Company develops its products for all popular game systems, personal computers, wireless devices and the Internet. Headquartered in Los Angeles County, California, THQ sells product through its network of offices located throughout North America and Europe. THQ Inc. and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-13398) on Dec. 19, 2012. Attorneys at Young Conaway Stargatt & Taylor, LLP and Gibson, Dunn & Crutcher LLP serve as counsel to the Debtors. FTI Consulting and Centerview Partners LLC are the financial advisors. Kurtzman Carson Consultants is the claims and notice agent. Before bankruptcy, Clearlake signed a contract to buy Agoura THQ for a price said to be worth $60 million. After a 22-hour auction with 10 bidders, the top offers brought a combined $72 million from several buyers who will split up the company. Judge Walrath approved the sales in January. Some of the assets didn't sell, including properties the company said could be worth about $29 million. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed five persons to serve in the Official Committee of Unsecured Creditors. The Committee tapped Houlihan Lokey Capital as its financial advisor and investment banker, Landis Rath & Cobb as co-counsel and Andrews Kurth as counsel. VALENCE TECHNOLOGY: Cash Balance Increased to $946,231 for March ---------------------------------------------------------------- Valence Technology, Inc., on Apr. 29, 2013, filed its monthly operating report for the month ended March 31, 2013. The Company reported a net income of $1.08 million on revenues of $3.43 million for the month ended March 31, 2013. As of March 31, 2013, Valence Technology had total assets of $25.08 million, total liabilities of $84.9 million and total stockholders' deficit of $59.82 million. At the beginning of the month, Valence Technology had $586,844 in cash. The Company had total cash receipts of $7.46 million and total cash disbursements of $7.1 million. As a result, at the end of March, Valence Technology had total cash of $946,231. A full-text copy of the monthly operating report is available at: http://is.gd/geumag About Valence Technology Valence Technology, Inc., filed a Chapter 11 petition (Bankr. W.D. Tex. Case No. 12-11580) on July 12, 2012, in its home-town in Austin. Founded in 1989, Valence develops lithium iron magnesium phosphate rechargeable batteries. Its products are used in hybrid and electric vehicles, as well as hybrid boats and Segway personal transporters. The Debtor disclosed debt of $82.6 million and assets of $31.5 million as of March 31, 2012. The Debtor disclosed $24,858,325 in assets and $78,520,831 in liabilities as of the Chapter 11 filing. Chairman Carl E. Berg and related entities own 44.4% of the shares. ClearBridge Advisors, LLC owns 5.5%. Judge Craig A. Gargotta presides over the case. The Company is being advised by Streusand, Landon & Ozburn, LLP with respect to bankruptcy matters. The petition was signed by Robert Kanode, CEO. On Aug. 8, 2012, the U.S. Trustee for Region 7 appointed five creditors to serve on the Official Committee of Unsecured Creditors of the Debtor. Brinkman Portillo Ronk, PC, serves as its counsel. ********* 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. 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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., Washington, D.C., 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 2013. 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. 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