/raid1/www/Hosts/bankrupt/TCR_Public/131010.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, October 10, 2013, Vol. 17, No. 281
Headlines
11912 MAPLE AVENUE: Voluntary Chapter 11 Case Summary
1250 OCEANSIDE PARTNERS: Court Approves Plan Outline
1250 OCEANSIDE PARTNERS: Entitled to Foreclose on Maryl Mortgage
1617 WESTCLIFF: Asset Sale Moots Wells Fargo's Stay Relief Bid
38 STUDIOS: Curt Schilling to Hold Estate Sale Amid Suit
AGRIPROCESSORS INC: Rite Care's Bid to Reopen Discovery Denied
AIRTRONIC USA: Becomes Exclusive OEM Supplier for Major Client
ALCATEL LUCENT: To Eliminate 10,000 Positions
ALLIED INDUSTRIES: U.S. Trustee Forms Three-Member Creditors Panel
ARCH COAL: Moody's Cuts CFR to B3 & Sr. Secured Credit to B1
AUTOMATED BUSINESS: Case Summary & 20 Largest Unsecured Creditors
BERNARD L. MADOFF: Ex-Employees Trial to Shine New Light on Scam
BERRY PLASTICS: Appoints R. Rolfe to Board of Directors
BITI LLC: Court Enters Final Decree Closing Reorganization Case
BLOOMIN' BRANDS: S&P Raises CCR to 'BB-'; Outlook Positive
BROWARD COUNTY HFA: Moody's Cuts Sr. Bonds 2007A&B Rating to Ba2
BUFFALO PARK: PennyMac Mortgage Objects to Lewis Debtors' Plan
BUFFALO PARK: Seeks Expansion of Authority Granted to Boog Cruser
CAROLINA COUNTRY CLUB: Case Summary & 20 Top Unsecured Creditors
CASTLETON PLAZA: Justices Won't Hear Absolute Priority Dispute
CBS I: Court Approves Plan Outline; Sets Oct. 30 Voting Deadline
CEDA MILLS: 3rd Cir. Affirms Distribution to Minority Shareholders
CENTRAL FEDERAL: Expects to Complete Cleveland Expansion in 2014
CHRISTIAN BROTHERS: Nov. 15 Hearing on Adequacy of Plan Outline
CITYCENTER HOLDINGS: Fitch Rates $1.8BB Credit Facility 'BB-'
CLUB AT SHENANDOAH: Oct. 29 Hearing on Cash Collateral Motion
CODA HOLDINGS: Ex-Workers Say Plan Gives Free Pass to PE Firm
CROSSOVER FINANCIAL: Disclosure Statement Hearing on Nov. 6
CUMULUS MEDIA: Offering up to $92 Million Class A Common Shares
DEMCO INC: Taps Horizons Consulting as Tax Consultants
DEMCO INC: Freed Maxick Approved as Accountants
DETROIT, MI: Protective Order Filed, Expedited Hearing Sought
DETROIT, MI: Faces Millions in Bills for Bankruptcy
DETROIT, MI: Citizens Living Among Blight Resist Moving
DETRIOT ACADEMY: Moody's Lowers 2001A Revenue Bonds Rating to Ca
DEVONSHIRE PGA: Sec. 341 Creditors' Meeting Set for Oct. 23
DUTCH GOLD: Accepts Resignations of CFO and COO
E.H. MITCHELL: Case Summary & 7 Unsecured Creditors
EARL GAUDIO: Hires Wermer Rogers as Accountants
ECLIPSE AVIATION: Loses Bid to Recoup $781,000 From Parts Supplier
EDENOR SA: Riojana to Buy Indirect Shareholding in EMDERSA
EMPRESAS INTEREX: Has Tentative Deal With PRAPI on Cash Use
EMPRESAS INTEREX: Nov. 21 Hearing to Confirm Exit Plan
FAIRMONT GENERAL: Oct. 23 Hearing on Use of Cash Collateral
FIFTH THIRD: Fitch Raises Preferred Stock Rating to 'BB+'
FIRST NATIONAL: Announced Senior Management Appointments
FLABEG SOLAR: Buncher Granted Relief From Automatic Stay
FOUR STAR HOSPITALITY: Case Summary & 20 Top Unsecured Creditors
FOURTH QUARTER PROPERTIES: Court Dismisses Chapter 11 Case
FRESH & EASY: Employs Jones Day as Lead Bankruptcy Counsel
FRESH & EASY: Taps Richards Layton as Local Delaware Counsel
FRESH & EASY: Hires Gordon Brothers & Tiger Capital as Consultant
FRIENDFINDER NETWORKS: Sec. 341(a) Meeting Scheduled on Oct. 21
FRIENDFINDER NETWORKS: Proposes Nov 5. Plan Outline Hearing
GATEHOUSE MEDIA: Combined Plan & Outline Hearing Set for Nov. 6
GATEHOUSE MEDIA: Final Cash Collateral Hearing Set for Oct. 23
GATEHOUSE MEDIA: Employs Houlihan Lokey as Fin'l Advisor & Banker
GOLD CROWN: Huakan Int'l Enters Into Forbearance Agreement
HALIFAX REGIONAL: Moody's Affirms 'Ba3' Rating to Bonds
HALSEY MINOR: Trustee Seeks to Sell CNET Founder's Cisco Stock
HEALTH CARE REIT: Fitch Currently Rates Preferred Stock at 'BB+
HERCULES OFFSHORE: 84.5% of Holders Tender 2017 Senior Notes
HOUSTON REGIONAL: Astros Network to Fight Involuntary Filing
HUNTINGTON BANCSHARES: Fitch Ups Preferred Stock Rating to 'BB'
HUNTSMAN INTERNATIONAL.: Moody's Rates New Secured Term Loan 'Ba2'
INFINIA CORP: U.S. Trustee Forms 4-Member Creditors Committee
INFINIA CORP: Can Incur Debt of Up to $5.32-Mil. From Atlas Global
INTERSTATE PROPERTIES: Court Dismisses Chapter 11 Case
JACKSONVILLE BANCORP: Raises $5 Million in Stock Offerings
JC PENNEY: Says Turnaround Efforts "Making Solid Progress"
JOURNAL REGISTER: Mercer's Stay Relief, Case Dismissal Bids Nixed
KEYWELL LLC: Can Continue to Operate Using Cash
KEYWELL LLC: Seeks to Sell Assets, Proposes Dec. Auction
KIDSPEACE CORP: Bryan Cave Okayed as Ombudsman's Counsel
LE-NATURE INC: Trustee Slams Firm as Malpractice Tiff Reignites
LEVIS TOWN SQUARE: Orleans Building Auction Set for Oct. 30
LOFINO PROPERTIES: Files for Bankruptcy Protection in Ohio
LONGVIEW POWER: Sec. 341 Creditors' Meeting Set for Nov. 6
M&T CAPITAL: Fitch Affirms 'BB+' Preferred Stock Rating
MESSER ENTERPRISES: Case Summary & 20 Top Unsecured Creditors
MODAL INC: Moody's Cuts CFR to Caa1 & Secured Debt Rating to B2
MONTREAL MAINE: Will Sell Assets in December
N&H INVESTMENTS: Case Summary & 3 Largest Unsecured Creditors
NAPAM INVESTMENTS: Case Summary & 3 Largest Unsecured Creditors
NEW YORK SKYLINE: SDNY Court Won't Stay Injunction Order
NIRVANIX INC: Wins Court Approval of $1-Mil. Bankruptcy Loan
NORTHERN BEEF: Creditors Committee Taps O'Keefe as Fin'l. Analysts
PENTON BUSINESS: Moody's Hikes CFR to B3 & Affirms B1 Debt Rating
POINT CENTER: Ch.11 Trustee Won't Pursue Diamond McCarthy Hiring
PORT HURON FACTORY: Voluntary Chapter 11 Case Summary
PRIVATE COMMERCIAL: Court Limits Petitioning Creditors' Claims
PROVINCE GRANDE: Objection to Levin and Shareff Claims Shelved
RURAL/METRO: Oct. 23 Set as Claims Bar Date
S&R GRANDVIEW: Chapter 11 Case Dismissed
SAN DIEGO HOSPICE: Oct. 23 Set as Claims Bar Date
SEAN DUNNE: Irish Developer Ordered to Turn Over Documents
SEMINOLE TRIBE: Fitch Assigns 'BB+' Issuer Default Rating
SR REAL ESTATE: Must File Missing Schedules by Oct. 15
SR REAL ESTATE: Venue of Case Transferred to S.D. Cal.
SUNTRUST CAPITAL: Fitch Affirms 'BB' Preferred Stock Rating
T.H. PROPERTIES: Undeclared Transfers Not Tax-Exempt
THQ INC: Sues Zuffa, EA Over Rights To UFC Video Game
TRANS-LUX CORP: Stockholders Elect Three Directors
USEC INC: Global X Lowers Equity Stake to 14.2% at Sept. 30
VISUALANT INC: Amends 162.1 Million Shares Resale Prospectus
WEST AIRPORT PALMS: First-Citizens Balks at Delay of Sale
WORLD IMPORTS: U.S. Trustee Appoints Creditors Committee
* CoreLogic Reports Show U.S. Foreclosure Inventory Down 33%
* Investors Less Confident in Economic Recovery After Shutdown
* New York Regulator Bars Falcone from Insurance Business
* Top Bankers Issue Warning on U.S. Debt Proposal
* Deloitte Appoints New FAS Leaders, Promotes 13 Professionals
* Greenberg Glusker Unveils 2014 Middle Market Bankruptcy Trends
* Alvarez & Marsal Receives Three Top Honors From TMA
* Recent Small-Dollar & Individual Chapter 11 Filings
*********
11912 MAPLE AVENUE: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: 11912 Maple Avenue, LLC
11912 Maple Avenue
Rockville, MD 20852
Case No.: 13-27118
Chapter 11 Petition Date: October 8, 2013
Court: United States Bankruptcy Court
District of Maryland (Greenbelt)
Judge: Hon. Thomas J. Catliota
Debtor's Counsel: Jeffrey M. Sirody, Esq.
SIRODY, FREIMAN & ASSOCIATES, P.C.
1777 Reisterstown Road, Suite 360 E
Baltimore, MD 21208
Tel: 410-415-0445
Fax: 410-415-0744
Email: smeyers5@hotmail.com
Total Assets: $1.10 million
Total Liabilities: $1.65 million
The petition was signed by Richard E Denchfield, resident agent.
The Debtor did not file a list of its largest unsecured creditors
when it filed the petition.
1250 OCEANSIDE PARTNERS: Court Approves Plan Outline
----------------------------------------------------
Janis L. Magin, writing for Pacific Business News, reports that
U.S. Bankruptcy Judge Robert Faris in Honolulu has approved a
preliminary plan to bring the 1,500-acre Hokulia resort
development on the Big Island of Hawaii out of Chapter 11
bankruptcy under the control of a group that includes Rob Walton,
chairman of Wal-Mart Stores Inc. The proponents to the Plan
include SunChase Holdings CEO William A. Pope and Mr. Walton.
Judge Faris has scheduled a confirmation hearing for Feb. 3.
According to Pacific Business News, SunChase Holdings had
purchased the bulk of the debt held by Hokulia -- a luxury project
above Kealakekua Bay that has been beset by numerous troubles
through the years and placed the project developer, 1250 Oceanside
Partners, into Chapter 11 bankruptcy reorganization in March.
SunChase had purchased the notes on Hokulia's second and third
phases from Lloyd's Banking Group (NYSE: LYG), which had taken
control of the project after taking over Bank of Scotland, which
had taken control of Hokulia and three other projects from the
Lyle Anderson Cos. in 2008.
In September, Acting U.S. Trustee Tiffany L. Carroll objected to
the bankruptcy plan, saying it failed to describe how it would pay
unsecured creditors. According to Pacific Business News, the
Acting U.S. Trustee said the Debtors need to disclose more
information, including how and when unsecured creditors will be
paid, how the partnership, Sun Kona Finance I, can take a secured
claim of $40 million on $20.5 million in assets. Business News
also said the Acting U.S. Trustee argued that Sun Kona's citation
that Mr. Walton, son of Wal-Mart founder Sam Walton, has a net
worth of $21 billion isn't enough to explain how the group has, or
will have, the means to pay a $65 million line of credit that is
crucial to the plan to exit bankruptcy.
Debtors 1250 Oceanside Partners and two of its affiliates, Pacific
Star Company and Front Nine LLC, filed a joint plan in August to
exit bankruptcy under SunChase Holdings Inc., a privately held
real estate development and investment company. As reported by
the Troubled Company Reporter in September, the Debtors and Sun
Kona Finance I LLC filed on Sept. 9 a First Amended Disclosure
Statement for the Debtors' and SKFI's Joint Plan of Reorganization
dated Aug. 15. The SKFI liens encumber substantially all of each
of the Debtors' assets.
According to the First Amended Disclosure Statement, the
additional capital necessary to emerge from Chapter 11 will be
provided by the exit loan from SKFI which will provide the Debtors
with a line of credit of up to $65,000,000. Based on the Debtors'
projections, the exit loan will allow the Debtor to pay its
outstanding administrative claims and cure claims upon emergence,
pay all other restructured debts as they become due, and will
provide adequate working capital for the Debtors going forward.
A copy of the Plan Proponents' First Amended Disclosure Statement
is available at http://bankrupt.com/misc/1250oceanside.doc384.pdf
About 1250 Oceanside Partners
1250 Oceanside Partners, Front Nine, LLC, and Pacific Star
Company, LLC, owners of the 1,800-acre Hokuli'a luxury real
estate development near Kona on the island of Hawaii, sought
Chapter 11 protection (Bankr. D. Hawaii Lead Case No. 13-00353)
on March 6, 2013, in Honolulu.
The Debtors were formed by developer Lyle Anderson and were
part of his development "empire", which included developments
in Hawaii, Arizona, New Mexico and Scotland. The secured
lender, Bank of Scotland, declared a default and obtained
control of the Debtors in January 2008.
Development of the property, which has 3.5 miles of waterfront
on the Kona coast, stopped after the developers were declared
in default under the loan. Oceanside and Front Nine own most
of the land within the Hokuli'a project, which is the principal
development. Pacific Star owns the land referred to as
"Keopuka", near Hokuli'a. The Hokuli'a was to have 730
residential units, an 18-hole golf course, club and other
amenities.
The Debtors say their assets are worth $68.1 million while they
are jointly liable to $625 million of debt to Sun Kona Finance
LLC, which acquired the Hawaii loan from Bank of Scotland.
Simon Klevansky, Esq., Alika L. Piper, Esq., and Nicole D.
Stucki, Esq., at Klevansky Piper, LLP, represent the Debtor in
its restructuring effort. They replaced the law firm of Gelber,
Gelber & Ingersoll as general counsel.
A creditors committee has not been appointed.
James A. Wagner, Esq., and Allison A. Ito, Esq., at Wagner Choi &
Verbrugge, represent Creditor Sun Kona Finance I, LLC, as counsel.
1250 OCEANSIDE PARTNERS: Entitled to Foreclose on Maryl Mortgage
----------------------------------------------------------------
1250 Oceanside Partners seeks to enforce a promissory note and
foreclose a mortgage made by defendant Maryl Group, Inc. The
other defendants claim interests in the mortgaged property.
Oceanside now seeks summary judgment. Maryl argues that the court
lacks jurisdiction and that Oceanside is not entitled to
foreclose.
In an Oct. 1, 2013 Memorandum of Decision available at
http://is.gd/J87qbmfrom Leagle.com, Bankruptcy Judge Robert J.
Faris concluded there is no dispute as to any material fact and
1250 Oceanside is entitled to judgment as a matter of law. Judge
Faris recommends that the District Court enter judgment
accordingly.
The case is, 1250 Oceanside Partners, Plaintiff, v. Maryl Group,
Inc. Defendant, Adv. Proc. Pro. No. 13-90049 (Bankr. D. Hawaii).
In February 2001, Oceanside sold Maryl a lot in a planned
development called Hokuli'a. Oceanside failed to complete the
Hokuli'a development as promised. Maryl ceased payment on the
note in November 2010. On April 26, 2012, Maryl signed a release,
which discharged its claims against Oceanside. After signing the
release, Maryl did not resume payments on the note.
Oceanside filed for chapter 11 bankruptcy on March 6, 2013. On
March 24, 2013, Oceanside sent Maryl a demand letter declaring
default and requiring Maryl to cure its arrears. Maryl filed a
proof of claim for $393,286.04 on July 9, 2013. The Debtor filed
the adversary proceeding on July 25, 2013.
In its motion, Oceanside seeks summary judgment on two issues:
first, that Maryl is in default and owes Oceanside according to
the terms of the note; and second, that Oceanside is entitled to
foreclose on the lot. Maryl filed a motion to dismiss Oceanside's
complaint and a countermotion for summary judgment.
About 1250 Oceanside Partners
1250 Oceanside Partners, Front Nine, LLC, and Pacific Star
Company, LLC, owners of the 1,800-acre Hokuli'a luxury real
estate development near Kona on the island of Hawaii, sought
Chapter 11 protection (Bankr. D. Hawaii Lead Case No. 13-00353)
on March 6, 2013, in Honolulu.
The Debtors were formed by developer Lyle Anderson and were
part of his development "empire", which included developments
in Hawaii, Arizona, New Mexico and Scotland. The secured
lender, Bank of Scotland, declared a default and obtained
control of the Debtors in January 2008.
Development of the property, which has 3.5 miles of waterfront
on the Kona coast, stopped after the developers were declared
in default under the loan. Oceanside and Front Nine own most
of the land within the Hokuli'a project, which is the principal
development. Pacific Star owns the land referred to as
"Keopuka", near Hokuli'a. The Hokuli'a was to have 730
residential units, an 18-hole golf course, club and other
amenities.
The Debtors say their assets are worth $68.1 million while they
are jointly liable to $625 million of debt to Sun Kona Finance
LLC, which acquired the Hawaii loan from Bank of Scotland.
Simon Klevansky, Esq., Alika L. Piper, Esq., and Nicole D.
Stucki, Esq., at Klevansky Piper, LLP, represent the Debtor in
its restructuring effort. They replaced the law firm of Gelber,
Gelber & Ingersoll as general counsel.
A creditors committee has not been appointed.
James A. Wagner, Esq., and Allison A. Ito, Esq., at Wagner Choi &
Verbrugge, represent Creditor Sun Kona Finance I, LLC, as counsel.
1617 WESTCLIFF: Asset Sale Moots Wells Fargo's Stay Relief Bid
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
approved a stipulation (i) voluntarily dismissing Wells Fargo
Bank, N.A.'s motion for relief from the automatic stay in the
Chapter 11 case of 1617 Westcliff, LLC; and (ii) vacating the
Oct. 2, 2013 hearing on the relief motion.
The Debtor and Wells Fargo agree to dismiss the motion for relief
because the motion is considered moot after the sale of the
property -- 1617 Westcliff Drive, Newport Beach, California --
closed on Sept. 10.
In a separate docket entry, the Court deemed the Oct. 2 hearing
off the calendar.
About 1617 Westcliff
1617 Westcliff, LLC, filed a bare-bones Chapter 11 petition
(Bankr. C.D. Cal. Case No. 12-19326) on Aug. 2, 2012, in Santa
Ana, California. The Debtor estimated assets of $10 million to
$50 million and liabilities of $1 million to $10 million.
Bankruptcy Judge Mark S. Wallace oversees the case. Sarah C.
Boone, Esq., and D. Edward Hays, Esq., at Marshack Hays LLP, serve
as the Debtor's counsel.
The Debtor filed the plan of liquidation and disclosure statement
on July 1, 2013, seeking to accomplish payment of creditors in
full by reorganizing its personal assets and liabilities through
the sale of its only substantial asset, a commercial real property
commonly known as 1617 Westcliff Drive, in Newport Beach,
California. The property, according to court documents, is a
mixed use, Class B building mostly occupied by medical office
space. It comprises 32,000 square feet of rentable space in a
single two-story building situated on approximately 1.56 acres of
land in an up-scale commercial district of Newport Beach.
38 STUDIOS: Curt Schilling to Hold Estate Sale Amid Suit
--------------------------------------------------------
Law360 reported that former pitching ace Curt Schilling is set to
hold an estate sale on Saturday, Oct. 12, with everything from
high-end furniture to his DVD collection on the block, weeks after
a Rhode Island judge refused to toss the lawsuit against him over
a $75 million loan financing his bankrupt video game venture.
According to the report, the sale is scheduled to take place at
Schilling's seven-bedroom, 8,000-square-foot home in Massachusetts
and also features big-ticket items such as a grand piano, a
vintage Coca-Cola vending machine, and Tiffany and Waterford
crystal.
38 Studios LLC, a video-game developer founded by former Boston
Red Sox pitcher Curt Schilling, filed for liquidation on June 8,
2012, without attempting to reorganize. Although based in
Providence, Rhode Island, the company filed the Chapter 7 petition
in Delaware (Case No. 12-11743).
AGRIPROCESSORS INC: Rite Care's Bid to Reopen Discovery Denied
--------------------------------------------------------------
Bankruptcy Judge Thad H. Collins denied a defendant's request to
reopen discovery in the case, JOSEPH E. SARACHEK, in his capacity
as CHAPTER 7 TRUSTEE, Plaintiff. v. RITE SURGICAL SUPPLIES, INC.
d/b/a RITE CARE MEDICAL PRODUCTS, Defendant, Adv. Proc. No.
10-09183 (Bankr. N.D. Iowa).
"The Court has taken a flexible, if not lenient, approach to
extensions of time throughout the adversary proceedings in this
case. The Court points out that it has extended deadlines in this
case to reopen an issue not previously contested?and provided six
months to do so. Defendant did not get its work completed during
this liberal extension of time. The time has expired and no
additional good reason exists to extend it further," Judge Collins
said in an Oct. 2, 2013 Order available at http://is.gd/8akRMr
from Leagle.com.
The Chapter 7 Trustee filed the Complaint on Nov. 11, 2010
alleging that within two years of the bankruptcy petition, the
Defendant received payments totaling $350,000. The Chapter 7
Trustee seeks to recover these payments as either fraudulent
conveyances under 11 U.S.C. Sec. 548 or as preferential transfers
under 11 U.S.C. Sec. 547(b). After several motions to extend
time, the Court extended the discovery deadlines to Sept. 4, 2012.
On March 11, 2013, the Defendant filed a Motion to Continue Trial.
The Defendant noted that it had new information and now wanted to
contest the issue of solvency during the transfer period. The
Court granted the motion to allow the Defendant time to engage in
discovery on the insolvency issue. The Court required that
parties conclude discovery on that limited issue by August 2,
2013.
The Defendant filed the Motion to Reopen Discovery on Aug. 30,
2013. The Defendant seeks to reopen discovery to acquire
additional information necessary for its expert to conduct a
solvency analysis. The Defendant also seeks to take the
deposition of Mr. Marc Ross and Mr. Joseph Sarachek on the issue
of solvency. Trial is set for Jan. 6, 2014.
The Chapter 7 Trustee objects to the Motion to Reopen Discovery.
He denies the Defendant's assertion that there was an informal
extension of discovery deadlines. The Trustee argues that the
Defendant fails to show a change in circumstances that warrants
reopening discovery as required by Fed. R. Bankr. P. 7016.
About Agriprocessors Inc.
Headquartered in Postville, Iowa, Agriprocessors once produced
half the kosher beef and 40% of the kosher poultry in the U.S. It
filed for bankruptcy following a raid by immigration authorities
in May 2008 on the plant in Postville, Iowa, where 389 workers
were arrested for having forged immigration documents. The raid
led to numerous federal criminal charges, including a high-profile
case against Agriprocessors' President, Sholom Rubashkin. The
Company filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No.
08-47472) on Nov. 4, 2008. The case was later transferred to Iowa
(Bankr. N.D. Iowa Case No. 08-02751). Kevin J. Nash, Esq., at
Finkel Goldstein Rosenbloom & Nash, represented the Company in its
restructuring effort. The Debtor estimated assets and debts of
$100 million to $500 million in its Chapter 11 petition.
SHF Industries Inc. purchased substantially all of the Debtor's
assets for $8.5 million in July 2009, and renamed the company Agri
Star. The Court approved the sale free and clear of all liens.
Agriprocessors' case was then converted to liquidation under
Chapter 7, at the consent of the Chapter 11 trustee appointed to
take over the estate. The Chapter 11 trustee became the trustee
in the Chapter 7 case to liquidate the Debtor's remaining assets
and provide distributions to creditors.
AIRTRONIC USA: Becomes Exclusive OEM Supplier for Major Client
--------------------------------------------------------------
Global Digital Solutions, Inc. on Oct. 8 disclosed that the
company's planned merger partner, Airtronic USA, Inc., has become
the exclusive OEM supplier for a major international client under
a private label agreement with a first stage value of
approximately $95 million.
The agreement is for Airtronic's family of M203 and M203A grenade
launchers, some of which will be equipped with Airtronic's patent-
pending locking device that imparts enhanced stability and
accuracy.
"This is exciting but not completely unexpected news," said GDSI's
President and CEO Richard J. Sullivan. "The agreement
demonstrates what we have been saying all along: Airtronic is
well-positioned for strong growth as a well-respected, advanced
small arms manufacturer. We congratulate the entire Airtronic team
on this significant development."
On October 2, 2013, the United States Bankruptcy Court for the
Northern District of Illinois, Eastern Division, confirmed the
amended chapter 11 bankruptcy reorganization plan submitted by
Airtronic. Now that the Plan has been confirmed by the court,
GDSI will be able to complete its acquisition of Airtronic.
Airtronic's bankruptcy case will be dismissed upon the
consummation of the Plan -- which includes completion of the
merger with GDSI -- and Airtronic will be capitalized with
adequate working capital to compete effectively as an innovative
leader in small arms manufacturing.
"We're thrilled to be able to announce this substantial OEM
agreement so soon after the court confirmed our reorganization
plan," said Dr. Merriellyn Kett, Airtronic's President and CEO who
will continue serving as the company's CEO after the merger
between GDSI and Airtronic is finalized. "The Airtronic team has
been very busy working to meet the needs of our customers in the
United States and around the world. This exclusive OEM agreement
is a testament to the world-class quality of our products and the
excellent relationships we have established with our customers
over the years."
Founded in 1990, Airtronic is a well-respected, award-winning
manufacturer of critical battlefield weapons. The company
provides small arms and small arms spare parts to the U.S.
Department of Defense, foreign militaries, and the law enforcement
market. The company's products include grenade launchers, rocket
propelled grenade launchers, grenade launcher guns, flex machine
guns, grenade machine guns, rifles, and magazines.
Airtronic is a member of the National Small Arms Technology
Consortium (NSATC) and the largest woman-owned small arms
manufacturing company in the United States. The company has
received commendations from the US Army Tank, Armaments, and
Automotive Command and the Defense Logistics Agency for the
quality and on-time delivery of its products.
About Global Digital Solutions, Inc.
Global Digital Solutions -- http://www.gdsi.co-- is positioning
itself as a leader in providing small arms manufacturing,
complementary security and technology solutions and knowledge-
based, cyber-related, culturally attuned social consulting in
unsettled areas.
About Airtronic USA, Inc.
Airtronic -- http://www.Airtronic.net-- is an electro-mechanical
engineering design and manufacturing company. It provides small
arms and small arms spare parts to the U.S. Department of Defense,
foreign militaries, and the law enforcement market. The company's
products include grenade launchers, rocket propelled grenade
launchers, grenade launcher guns, flex machine guns, grenade
machine guns, rifles, and magazines. Founded in 1990, the company
is based in Elk Grove Village, Illinois.
On May 16, 2012, the voluntary petition of Airtronic, Inc. for
liquidation under Chapter 7 was converted to a Chapter 11
reorganization. The company had filed for chapter 7 bankruptcy on
March 13, 2012.
ALCATEL LUCENT: To Eliminate 10,000 Positions
---------------------------------------------
Sam Schechner, writing for The Wall Street Journal, reported that
struggling telecom-gear maker Alcatel-Lucent SA said it will lay
off 15% of its global workforce, but investors were mixed on the
move and French officials said they would try to limit its scope.
According to the report, the Franco-American company said on Oct.
8 it would cut its global workforce by 10,000 people world-wide by
the end of 2015, while halving the number of its "business hubs,"
in order to refocus on a handful of new technologies and
businesses.
The company will also leave its Paris headquarters by the foot of
the Eiffel Tower for cheaper office space out of town, Chief
Executive Michel Combes said, the report related.
The new round of cuts are slated to hit France particularly hard,
with research sites to close, 900 jobs set to be eliminated and
another 900 that may be shifted internally or outsourced, the
report said. French Industry Minister Arnaud Montebourg said he
had asked Alcatel-Lucent to limit the job cuts.
"We asked Alcatel-Lucent's management to revise downward its job-
cut plan, to reduce it because we cannot eternally pay the price
of errors," Mr. Montebourg said.
Headquartered in Paris, France, Alcatel-Lucent is a leading
developer and manufacturer of telecommunications equipment, with
sales of approximately EUR15.3 billion for fiscal year 2011.
ALLIED INDUSTRIES: U.S. Trustee Forms Three-Member Creditors Panel
------------------------------------------------------------------
Peter C. Anderson, U.S. Trustee for Region 16, filed a notice with
the Bankruptcy Court on Sept. 24, of his appointment of three
creditors to serve on the Official Committee of Unsecured
Creditors in the Chapter 11 cases of Allied Industries, Inc.
The Committee is consists of:
1) All-Tex, Inc. dba Inline Distributing
Attn: Brad Ratliff
14093 Balboa Blvd.
Sylmar, CA 91342
Tel: (818) 768-3333
2) Aramsco Inc.
Attn: Daria I. Lomas
1480 Grandview Ave.
Paulsboro, NJ 08066
Tel: (856) 686-7747
3) Claims Recovery Group LLC
Attn: Robert M. Axenrod
92 Union Ave.
Cresskill, NJ 07626
Tel: (201) 266-6988
About Allied Industries
Allied Industries, Inc., filed a Chapter 11 petition (Bankr. C.D.
Cal. Case. No. 13-11948) on March 21, 2013. The petition was
signed by Ernesto Gutierrez as president and chief executive
officer. The Debtor scheduled assets of $13,086,216 and
scheduled liabilities of $7,457,365. Dheeraj K. Singhal, Esq.,
and Dixon L. Gardner, Esq. at DCDM Law Group, P.C., serve as the
Debtor's counsel.
ARCH COAL: Moody's Cuts CFR to B3 & Sr. Secured Credit to B1
------------------------------------------------------------
Moody's Investors Service downgraded the ratings of Arch Coal,
including the company's Corporate Family Rating (CFR) to B3 from
B2, Probability of Default Rating (PDR) to B3-PD from B2-PD, the
rating on senior secured credit facility to B1 from Ba3, and the
ratings on senior unsecured debt to Caa1 from B3. The outlook is
negative.
At the same time, Moody's upgraded the company's speculative grade
liquidity (SGL) rating to SGL-2 from SGL-3 to reflect the
substantial cash inflow from the recent sale of Canyon Fuel
assets. This concludes the review initiated on August 5, 2013.
The rating action was prompted by recent deterioration in
performance and persistent weakness in market conditions for both
thermal and metallurgical coal.
Ratings Rationale:
The rating action was prompted by recent deterioration in
performance due to continuing weakness in the coal industry, and
our expectation that while both thermal and metallurgical markets
have reached bottom, the potential for material recovery in demand
and pricing is limited. "Based on our assumptions of flat thermal
spot prices over the next eighteen months, and benchmark
settlements for high quality metallurgical coal of about $155, we
expect average realization per ton to decline in 2014 relative to
2013, with Debt/ EBITDA, as adjusted by Moody's, exceeding 15x
through the end of 2014 and annual negative free cash flows in the
$250 - $400 million range," Moody's said.
"We believe that in order for Arch's metrics to return to
sustainable levels, coal prices in the Powder River Basin (PRB)
would need to increase to $13 - $14 range (from current spot
prices of around $11), settlements for high quality metallurgical
coal would have to recover to $170 - $175 range, and prices for
Central Appalachian thermal coal would have to recover by $10 from
current spot prices of roughly $60. Over the past eighteen months,
production volumes in the Powder River Basin experienced a steep
decline to roughly 420 million short tons in 2012 from roughly 460
million short tons a year prior. Although some demand came back on
natural gas price recovery, production volumes remained steady in
2013 due to working down of the inventories. As inventories in the
region have now normalized, spot prices have recovered from sub-$9
levels a year ago to $11 range -- a level that allows for an
average-cost producer to generate very thin margins. Although we
believe that PRB will continue to gain some market share at the
expense of the continuing secular decline in Central Appalachia,
we expect that natural gas prices in the $3.50- $4 range and
additional production volumes returning to the market may dampen
price recovery. We believe that thermal price recovery in Central
Appalachia is unlikely, as the region is in secular decline due to
high cost of production, competition from low cost natural gas and
regulations-driven coal plant retirements. In addition we believe
that continuing weakness in the global steel industry and weak
Australian dollar will prevent a robust recovery in the
metallurgical coal prices. The downgrade reflects our expectation
that absent material upward momentum to commodity prices, Arch
will continue to burn cash, and the company's leverage metrics
will remain above 10x," according to Moody's.
Arch's liquidity position is good, including roughly $1.4 billion
in cash and marketable securities, pro-forma for Canyon Fuel sale
proceeds. Although we expect Arch to be in compliance with the
revolver's covenants over the next eighteen months, we view
availability of external liquidity sources as limited, given that
the company's unutilized $350 million revolver contains a minimum
liquidity covenant of $450 million. The company also has roughly
$130 million available under its securitization facilities.
Negative outlook reflects Moody's view that absent robust recovery
in coal prices, Arch's credit metrics may not return to
sustainable levels.
The ratings could be upgraded should metallurgical and/or thermal
coal prices recover, such that the company's leverage, as
adjusted, is expected to track below 6x and free cash flow is
expected to turn positive. A further downgrade would result if
liquidity deteriorates, if cash burn does not subside, and/or
Debt/ EBITDA is not expected to be sustained below 7x after 2014.
Arch Coal is one of the largest US coal producers which operates
in all of the major US coal basins. The company's production
consists mainly of low-sulfur thermal coal from its Power River
Basin mines and thermal and metallurgical coal from Appalachia.
Over the twelve months ended June 30, 2013 the company generated
$3.6 billion in revenue.
The principal methodology used in this rating was the Global
Mining Industry Methodology published in May 2009. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.
AUTOMATED BUSINESS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor-entities filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Automated Business Power, Inc. 13-27123
7611-J Rickenbacker Drive
Gaithersburg, MD 20879
Automated Business Power Holding Co 13-27125
7611-J Rickenbacker Drive
Gaithersburg, MD 20879
Chapter 11 Petition Date: October 8, 2013
Court: United States Bankruptcy Court
District of Maryland (Greenbelt)
Debtors' Counsel: Nelson C. Cohen, Esq.
ZUCKERMAN SPAEDER LLP
1800 M Street, N.W., Suite 1000
Washington, DC 20036
Tel: 202-778-1800
Fax: 202-822-8106
Email: ncohen@zuckerman.com
Estimated Assets: $50 million to $100 million
Estimated Liabilities: $10 million to $50 million
The petitions were signed by Daniel Akman, president.
List of Automated Business Power, Inc.'s 20 Largest Unsecured
Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Absopulse Electronics LTD Trade Debt $6,630
ADP Payroll Services Services rendered $45,160
American ESOP Advisors, LLC Trade Debt $4,000
AR Northwest/AR Worldwide Trade Debt $141,397
Burstein & Assoc., LLC Trade Debt $13,416
Dickinson Wright, PLLC Services rendered $2,347
Eureka Capital Partners, LLC Consulting $8,000
Evolve Bank & Trust Trade Debt $8,562
Eyal Halevy Loan $12,975,473
Eyal Halevy Loan $135,000
First Power Group Landlord $61,813
Future Electronics (US), LLC Services rendered $4,149
Jason Wallace Expense reimbursement $2,009
Montgomery County, Maryland Taxes $11,611
PNC Bank Business Loan $29,440,691
Signal Magazine Trade Debt $4,929
Stout Risius Ross, Inc. Trade Debt $10,000
Trivec Avant Trade Debt $5,204
U.S. General Services Trade Debt $2,828
Administration
UQU General, LLC Consulting Fee $262,500
Automated Business Power Holding Co. listed PNC Bank Mortgage
as its largest unsecured creditor with a business loan claim of
$29,440,691.
BERNARD L. MADOFF: Ex-Employees Trial to Shine New Light on Scam
----------------------------------------------------------------
Michael Bathon, substituting for Bloomberg bankruptcy columnist
Bill Rochelle, reports that Bernard Madoff's former personal
secretary is among five of the con man's ex-employees who will be
the first to face a jury in a criminal trial for their alleged
roles in carrying out the world's biggest Ponzi scheme.
According to the report, the former employees, all of whom have
pleaded not guilty, include Annette Bongiorno, who worked with
Madoff for 40 years and helped recruit investors. Jury selection
for the trial, which the judge estimated could last five months,
was set to begin Oct. 7 in federal court in Manhattan. The
proceeding will offer the fullest public accounting yet of how
Madoff carried out the fraud, which cost thousands of investors
$17 billion in lost principal and billions more in imaginary
profit. A bankruptcy court trustee is still selling assets and
re-paying victims. Earlier guilty pleas by Madoff, 75, and some
of his top aides averted a trial until now. "People have always
wondered what was known inside Madoff's operation and this trial
will be our first window into that world," said Stephen Miller, a
former federal prosecutor and a lawyer at Cozen O'Connor in
Philadelphia. "There hasn't been an insider telling their story
publicly yet."
The report notes that prosecutors allege Madoff hid the fraud for
decades with help from the defendants: Bongiorno, who helped run
the investment advisory business; Joann Crupi, a back-office
worker who managed large accounts; ex-operations chief Daniel
Bonventre and computer programmers Jerome O'Hara and George Perez.
The case is U.S. v. O'Hara, 10-cr-00228, U.S. District Court,
Southern District of New York (Manhattan).
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of
New York granted the application of the Securities Investor
Protection Corporation for a decree adjudicating that the
customers of BLMIS are in need of the protection afforded by the
Securities Investor Protection Act of 1970. The District Court's
Protective Order (i) appointed Irving H. Picard, Esq., as trustee
for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP
as his counsel, and (iii) removed the SIPA Liquidation proceeding
to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789)
(Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims
agent.
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
US$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.).
From recoveries in lawsuits coupled with money advanced by SIPC,
Mr. Picard has paid about 58 percent of customer claims totaling
$17.3 billion. The most recent distribution was in March 2013.
Mr. Picard has collected about $9.35 billion, not including an
additional $2.2 billion that was forfeit to the government and
likewise will go to customers. Picard is holding almost
$4.4 billion he can't distribute on account of outstanding
appeals and disputes. The largest holdback, almost $2.8 billion,
results from disputed claims.
BERRY PLASTICS: Appoints R. Rolfe to Board of Directors
-------------------------------------------------------
Berry Plastics Group, Inc., appointed Ronald (Ron) S. Rolfe to its
Board of Directors. He will also serve as a member of the
Company's Audit Committee. Mr. Rolfe replaces Steven (Steve) C.
Graham who is stepping down from the Company's Board.
Mr. Rolfe was a member of the Litigation Department at Cravath,
Swaine & Moore LLP for more than 40 years. In January 2011, he
retired as a Partner of the firm. During his tenure, Mr. Rolfe
led major antitrust and securities cases; SEC, NYSE, NASDAQ, and
grand jury investigations; and, a wide range of commercial
litigation and arbitrations. He was also active in major merger
and acquisition transactions and corporate governance advice.
Mr. Rolfe is a board member of the Strategic Committee of Captain
Bidco SAS (France), Noranda Aluminum Holding Corporation (NYSE:
NOR), Advanced Assessment Systems, Inc., and an advisor to the
board of directors of Tune Core, Inc. He holds an A.B. from
Harvard College and graduated magna cum laude with a J.D. from
Columbia Law School, where he served as an editor of the Columbia
Law Review. Mr. Rolfe was also a Harlan Fiske Stone Scholar and
James Kent Scholar. Mr. Rolfe dedicates much time to both
professional organizations and civic endeavors, including serving
as President of the Board of Trustees of The Allen-Stevenson
School.
Steven Graham has served as a member of Berry Plastics' Board of
Directors since 2006.
"On behalf of Berry Plastics and its Board of Directors, I wish to
extend our sincere gratitude for Steve's commitment to our
Company," said Jon Rich, chairman and CEO of Berry Plastics. "Ron
is highly regarded in the legal community and we are honored to
have him join our Board."
In accordance with the Company's non-employee director
compensation policy, Mr. Rolfe will receive compensation of
$85,000 per year. In addition, subject to the approval of the
compensation committee and board of directors, Mr. Rolfe will be
granted a vested option to purchase approximately 14,000 shares of
common stock of the Company with an exercise price equal to the
fair market value of such stock as of the date of that grant.
About Berry Plastics
Berry Plastics Corporation manufactures and markets plastic
packaging products, plastic film products, specialty adhesives and
coated products. At Jan. 2, 2010, the Company had more than 80
production and manufacturing facilities, primarily located in the
United States. Berry is a wholly-owned subsidiary of Berry
Plastics Group, Inc. Berry Group is primarily owned by affiliates
of Apollo Management, L.P., and Graham Partners. Berry, through
its wholly owned subsidiaries operates five reporting segments:
Rigid Open Top, Rigid Closed Top, Flexible Films, Tapes/Coatings
and Specialty Films. The Company's customers are located
principally throughout the United States, without significant
concentration in any one region or with any one customer.
On Dec. 3, 2009, Berry Plastics obtained control of 100 percent of
the capital stock of Pliant upon Pliant's emergence from
reorganization pursuant to a proceeding under Chapter 11 for a
purchase price of $602.7 million. Pliant is a leading
manufacturer of value-added films and flexible packaging for food,
personal care, medical, agricultural and industrial applications.
The acquired business is primarily operated in Berry's Specialty
Films reporting segment.
As of June 29, 2013, the Company had $5.04 billion in total
assets, $5.29 billion in total liabilities and a $251 million
total stockholders' deficit.
* * *
As reported by the TCR on Feb. 1, 2013, Moody's Investors Service
upgraded the corporate family rating of Berry Plastics to B2 from
B3 and the probability of default rating to B2-PD from B3-PD. The
upgrade of the corporate family rating to B2 from B3 reflects
the improvement in pro-forma credit metrics and management's
publicly stated goal to pursue a less aggressive, more balanced
financial profile.
In November 2011, Standard & Poor's Ratings Services affirmed the
'B-' corporate credit rating on Berry and its holding company
parent, Berry Plastics Group Inc. "The ratings on Berry reflect
the risks associated with the company's highly leveraged financial
profile and acquisition- driven growth strategy as well as its
fair business risk profile," said Standard & Poor's credit analyst
Cynthia Werneth.
In November 2011, Standard & Poor's Ratings Services affirmed the
'B-' corporate credit rating on Berry and its holding company
parent, Berry Plastics Group Inc. "The ratings on Berry reflect
the risks associated with the company's highly leveraged financial
profile and acquisition- driven growth strategy as well as its
fair business risk profile," said Standard & Poor's credit analyst
Cynthia Werneth.
BITI LLC: Court Enters Final Decree Closing Reorganization Case
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York on
Oct. 3, 2013, entered a final decree closing the Chapter 11 case
of Biti, LLC.
The Debtor reported to the Court that it has consummated its Third
Amended Plan of Reorganization dated March 5, 2013, which was
confirmed on May 8, 2013.
As reported in the Troubled Company Reporter on April 10, 2013,
according to the Disclosure Statement, the Debtor plans to get the
financing to take the condominium project to permits, at which
time it would pay all creditors in full by, either, selling the
project, refinancing by way of construction loans, or bringing in
a new equity partners with new cash infusion.
Biti sought authorization from the Court to obtain secured
postpetition financing with superpriority status in the aggregate
amount of $3,500,000 from Bridge Funding Inc. The Financing was
to close within 29 days of the confirmation order approving the
Financing becoming a final order. The proceeds of the Financing
would constitute the "Funding Pool" which would be used to fund
the Plan.
If, however, the Property has not been sold or a commitment for
refinancing has not been received by the Debtor or a closing with
respect to any of these events has been scheduled by the date
which is 22 months from the Effective Date then the Property will
be scheduled for foreclosure sale by Valley National Bank for a
date which is no later than two years after the Effective Date.
The net proceeds of any foreclosure sale will be deposited into
the Distribution Fund and will be available to pay Class 4 Non-
Insider General Unsecured Claims.
Under the Plan, the Allowed Class 1 Secured Claim of Valley
National Bank, listed in the Debtor's Schedules at $6,500,000,
will be satisfied by paying Valley National from the Distribution
fund the full amount of the Debt in Cash on the earlier of (i) the
Distribution Date or (ii) the date of the closing of the sale of
the Property.
Non-Insider Unsecured Claims in Class 4 of approximately
$565,849.31, will be paid in cash, in full, on the Distribution
Date together with interest on the Distribution Date from the
Distribution fund.
Holders of Equity Interest in Class 6 will receive no cash
distribution.
A copy of the Third Amended Disclosure Statement is available at:
http://bankrupt.com/misc/bitillc.doc58.pdf
About Biti LLC
Oyster Bay, New York-based Biti LLC filed a Chapter 11 petition
(Bankr. E.D.N.Y. Case No. 12-74810) in New York on Aug. 2, 2012.
The Debtor, a Single Asset Real Estate as defined in 11 U.S.C.
Sec. 101(51B), scheduled $14,146,612 in assets and $12,900,070 in
liabilities. The Debtor owns 11.701 acres of property located at
the south side of Skillman Street, west of Bryant Avenue, Village
of Roslyn.
Judge Robert E. Grossman presides over the case. Ronald M.
Terenzi, Esq., at Stagg, Terenzi, Confusione, & Wabnik LLP, in
Garden City, N.Y., represents the Debtor as counsel.
BLOOMIN' BRANDS: S&P Raises CCR to 'BB-'; Outlook Positive
----------------------------------------------------------
Standard & Poor's Ratings Services said it raised the ratings on
Bloomin' Brands Inc. and its operating subsidiary OSI Restaurant
Partners LLC, including the corporate credit rating, which S&P
raised to 'BB-' from 'B+'. The outlook is positive.
"The rating action reflects our expectation that operating
performance trends will remain good in the next 12 months with
positive same-store sales and unit expansion. We also believe the
brand revitalization initiatives and cost savings from
productivity improvements will contribute to further margin
expansion in 2013 and 2014, despite commodity cost pressure and
still-weak consumer spending," said credit analyst Helena Song.
"We expect debt leverage will remain in the high-3x area in 2013
and further improve to the mid-3x area in 2014 because of
continued EBITDA growth and debt reduction from free operating
cash flow."
The positive outlook on Bloomin' Brands Inc. reflects S&P's
expectation that continued positive operating momentum (mid- to
high-single-digit revenue growth) could contribute to further
strengthening of credit measures in the next 12 months, with debt
leverage in the high-3x area in 2013 and improving to the mid-3.5x
area or below at the end of 2014.
S&P could raise the rating if it believes the company can achieve
debt leverage of 3.5x or below on a sustained basis. This could
occur if EBITDA continues to grow by 12% on mid-double-digit
revenue growth and stable margins, while debt remains consistent.
S&P could revise the outlook to stable if sales growth slows to
2%, while gross margin declines 100 bps. This would result in
debt leverage of 4.0x or above. Although less likely, a negative
rating action could also occur if the company adopts a more
aggressive financial policy, given its majority ownership by
private equity.
BROWARD COUNTY HFA: Moody's Cuts Sr. Bonds 2007A&B Rating to Ba2
----------------------------------------------------------------
Moody's has downgraded to Ba2(sf) from Ba1 (sf) $7,245,000 of
Broward County Housing Finance Authority Single Family Mortgage
Revenue Senior Bonds Series 2007A and B, and has downgraded to B2
(sf) from Ba1 (sf) $305,000 of Subordinate Bonds Series 2007C.
Action concludes the review (direction uncertain) from earlier
this year following Moody's assessment of the program's financial
position.
Summary Rationale:
Both the senior and subordinate bonds are dependent upon a
subordinate loan portfolio consisting of only 10 current loans as
of April 1, 2013. Poor historical loan performance is evidenced by
the fact that roughly 60% of all original loans have either
defaulted or are seriously delinquent.
Regarding the 2007AB Senior Bond downgrade, Moody's rationale is
also based on cash flow projections which demonstrate that the
senior bonds still depend on subordinate loan performance for
sufficiency. Probability of default is high, though we expect that
the earliest projected revenue shortfall would occur in 2036 if
the entire subordinate loan portfolio were to default immediately
and receive 0% recovery.
Regarding the 2007C Subordinate Bond downgrade is based on cash
flow projections which demonstrate that present value losses are
material. Probability of default is higher than it is for the
senior bonds, and we expect that the earliest projected revenue
shortfall would occur in 2022 if the entire subordinate loan
portfolio were to default immediately and receive 0% recovery.
What Could Make the Rating Go Up:
2007AB Senior Bonds
- Sustained, strong subordinate loan performance that eliminates
the bonds' probability of default
2007C Subordinate Bonds
- It is unlikely that the subordinate bonds would be upgraded
unless subordinate loan performance dramatically improves and
thereby reduces the losses given default and probability of
default
What Could Make the Rating Go Down:
All Bonds
- Continued deterioration of subordinate loan portfolio which
increases the probability of default and/or the losses given
default
BUFFALO PARK: PennyMac Mortgage Objects to Lewis Debtors' Plan
--------------------------------------------------------------
Secured creditor PennyMac Mortgage Investment Trust Holdings 1,
LLC, objects to confirmation of Debtors Ronald P. Lewis and Carol
J. Lewis's proposed amended plan of reorganization dated Aug. 30,
2013.
PennyMac objects to the principal balance of the loan being
modified to $318,198. According to PennyMac, as of Sept. 27,
2013, its total unpaid principal balance, interest, and other
charges, amounts to $417,559. In addition, Debtors do not provide
any documentation, such as an appraisal, to indicate why the
Debtors value the property located at 6954 Granite Crag Circle,
Evergreen, Colorado at $318,198. PennyMac says it is in the
process of obtaining the Court's authorization to move forward
with an interior appraisal of the Property in order to determine
its current value.
PennyMac further objects to its treatment in the Plan due to
Debtors' proposal to modify the interest from an adjustable rate
of 6.982% to 3.505. PennyMac explains that 3.5% is not the market
rate of interest on non-residential real property.
As reported in the TCR on Sept. 9, 2013, Ronald P. Lewis, Carol J.
Lewis, and Buffalo Park Development, Co., filed with the U.S.
Bankruptcy Court for the District of Colorado a Disclosure
Statement explaining the Debtors' Joint Plan of Reorganization
dated Aug. 30, 2013.
According to the Disclosure Statement, the Debtors will
restructure their debts and obligations and continue to operate in
the ordinary course of business, including the sale and leasing of
properties and operation of the businesses. In the Lewis
bankruptcy case, the rental income from the properties and the
Lewis' disposable income, together with the restructuring of the
mortgage and other secured debts, will generate sufficient funds
to pay on a pro rata basis a portion of the Lewis' unsecured
debts. For both estates, the reduction of payments to secured
creditors as a result of the plan confirmation will have a
material beneficial impact on the Debtor's ability to service
their debt, including making a distribution to unsecured
creditors.
Buffalo Park will make all payments required to be made on the
Effective Date from its estate's cash. Buffalo Park estimates
that the amount required to be paid on the Effective Date will be
$15,000, which amount is or will be on Deposit the debtor-in-
possession account, to pay administrative claims.
To fund the Plan beyond the Effective Date, the Buffalo Park will
continue its operations and distribute payments in accordance with
the terms of the Plan.
Counsel for PennyMac may be reached at:
Deanna L. Westfall, Esq.
Britney Beall-Eder, Esq.
Cynthia Lowery-Graber, Esq.
Kimberley Martinez, Esq.
THE CASTLE LAW GOUP, LLC
999 18th Street, Suite 2201
Denver, CO 80202
Tel: (303) 865-1440
Fax: (303) 865-1410
E-mail: BankruptcyDept@cmsatty.com
A copy of the Disclosure Statement is available for free at:
http://bankrupt.com/misc/BUFFALO_PARK_ds.pdf
The hearing on the Disclosure Statement has been continued to Nov.
20, 2013, at 11:30 a.m.
The Lewis Debtors were ordered to file an amended disclosure
statement and to serve redline copies on Objectors Mutual of
Omaha, Glenelk Association, Northstar Bank, and Bank of the West
no later than Oct. 15, 2013. Objectors may have until Oct. 25,
2013, to file further objections. If no objections are filed, the
Debtors may move the Court to vacate the continued hearing and
issue a scheduling order on confirmation.
About Buffalo Park Development Properties
Buffalo Park Development Properties, Inc., filed a Chapter 11
petition (Bankr. D. Colo. Case No. 13-17669) on May 7, 2013.
Ronald P. Lewis signed the petition as owner and CEO. Buffalo
Park disclosed $20,777,601 assets and $11,294,567 liabilities in
its schedules. Robert Padjen, Esq., at Laufer and Padjen LLC
serves as counsel to Buffalo Park. Judge Elizabeth E. Brown
presides over the case.
U.S. Trustee Richard A. Wieland has been unable to appoint an
official committee of unsecured creditors in the Debtor's Chapter
11 case because there were too few unsecured creditors who were
willing to serve on the creditors' committee.
BUFFALO PARK: Seeks Expansion of Authority Granted to Boog Cruser
-----------------------------------------------------------------
Debtors Ronald and Carol Lewis ask the U.S. Bankruptcy Court to
expand the authority granted to Special Counsel Boog & Cruser,
P.C., to include representation of the Lewis Debtors in non-
bankruptcy matters, specifically including the vehicle accident
involving Carol Lewis that occurred on June 7, 2013.
Special Counsel's hourly rate and terms of retention remain the
same as those disclosed in the application.
According to the Lewis Debtors, the legal services are necessary
in order to defend any claims or charges brought against Debtor
Carol Lewis resulting from the accident.
On May 23, 2013, the Bankruptcy Court approved the application of
the Lewis Debtors to employ Special Counsel "to provide non-
bankruptcy legal services, including land use and easement
matters".
About Buffalo Park Development Properties
Buffalo Park Development Properties, Inc., filed a Chapter 11
petition (Bankr. D. Colo. Case No. 13-17669) on May 7, 2013.
Ronald P. Lewis signed the petition as owner and CEO. Buffalo
Park disclosed $20,777,601 assets and $11,294,567 liabilities in
its schedules. Robert Padjen, Esq., at Laufer and Padjen LLC
serves as counsel to Buffalo Park. Judge Elizabeth E. Brown
presides over the case.
U.S. Trustee Richard A. Wieland has been unable to appoint an
official committee of unsecured creditors in the Debtor's Chapter
11 case because there were too few unsecured creditors who were
willing to serve on the creditors' committee.
CAROLINA COUNTRY CLUB: Case Summary & 20 Top Unsecured Creditors
----------------------------------------------------------------
Debtor: The Carolina Country Club
2355 Carolina Country Club Road
Spartanburg, SC 29306
Case No.: 13-05988
Chapter 11 Petition Date: October 8, 2013
Court: United States Bankruptcy Court
District of South Carolina (Spartanburg)
Judge: Hon. Helen E. Burris
Debtor's Counsel: William G. McCarthy, Jr., Esq.
MCCARTHY LAW FIRM, LLC
1517 Laurel Street (29201)
PO Box 11332
Columbia, SC 29211-1332
Tel: (803) 771-8836
Fax: 803-753-6960
Email: bmccarthy@mccarthy-lawfirm.com
- and -
Daniel J. Reynolds, Jr., Esq.
MCCARTHY LAW FIRM, LLC
1517 Laurel Street (29201)
PO Box 11332
Columbia, SC 29211-1332
Tel: 803-771-8836
Fax: 803-753-6960
Email: dreynolds@mccarthy-lawfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Wade E. Ballard, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/scb13-5988.pdf
CASTLETON PLAZA: Justices Won't Hear Absolute Priority Dispute
--------------------------------------------------------------
Law360 reported that the U.S. Supreme Court on Oct. 7 declined to
review the Seventh Circuit's decision finding that bankruptcy
plans that offer new value from insider investors cannot avoid the
absolute priority rule that entitles creditors to full payment
before equity investors can receive anything.
According to the report, the high court's refusal to hear
Castleton Plaza LP's challenge to the appellate court's February
ruling in its case against EL-SNPR Notes Holdings LLC is a win for
creditors and a blow to bankrupt entities with insiders that want
to hold onto their business.
About Castleton Plaza
Castleton Plaza, LP, filed for Chapter 11 protection (Bankr. S.D.
Ind. Case No. 11-01444) in Indianapolis, Indiana, on Feb. 16,
2011. Paul T. Deignan, Esq., at Taft Stettinius & Hollister LLP,
in Indianapolis, serves as counsel to the Debtor.
Castleton Plaza, the owner of the Castleton Plaza strip mall in
Indianapolis, disclosed total assets of nearly $7.6 million
including more than $6.8 million in real property, and total debts
of $10.4 million. Castleton Plaza LP is a subsidiary of
Indianapolis-based Broadbent Co.
CBS I: Court Approves Plan Outline; Sets Oct. 30 Voting Deadline
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Nevada approved on
Sept. 27, 2013, the Third Amended Disclosure Statement explaining
CBS I, LLC's Third Amended Chapter 11 Plan of Reorganization dated
Sept. 25, 2013.
The voting deadline will be Oct. 30, 2013, at 5:00 p.m. The
Debtor will file its ballot summary, ballot tabulation and any
brief and/or declaration in support of tabulation on or prior to
Nov. 6, 2013. A confirmation hearing will be held on Nov. 13,
2013, at 9:30 a.m. Objections to the conditionally approved Third
Amended Disclosure Statement or to the confirmation of the third
Amended Plan, if any, must be filed, together with proof of
service, with the Court no later than Oct. 30, 2013, at 5:00 p.m.
All replies to any objections to confirmation and/or memorandums
must be filed with the Court by no later than Nov. 6, 2013.
As reported in the TCR on Oct. 1, 2013, the confirmation funds
will be used to fund the Plan and will be distributed or applied
in the manner necessary to provide all required confirmation funds
for distribution pursuant to the Plan, satisfy the costs,
expenses, required payments and entitlements outlined on the
Effective Date and provide the Debtor with working capital and
funding for operations and Plan needs.
A copy of the Third Amended Disclosure Statement is available for
free at http://bankrupt.com/misc/CBS_I_3ds.pdf
About CBS I, LLC
CBS I, LLC, filed for Chapter 11 protection (Bankr. D. Nev. Case
No. 12-16833) on June 7, 2012. The Company is a limited liability
company whose sole asset consists of 71,546 square feet of gross
rentable building area on a site containing 206,474 net square
feet or 4.74 acres, located at 10100 West Charleston Boulevard, in
Las Vegas, Nevada. The Debtor is owned by Jeff Susa (25%),
Breslin Family Trust (25%), M&J Corrigan Family Trust (25%) and
S&L Corrigan Family Trust (25%).
The Debtor scheduled assets of $19,356,448 and liabilities of
$19,422,805. Judge Mike K. Nakagawa presides over the case. Jeff
Susa signed the petition as manager.
The bankruptcy filing came after U.S. Bank, trustee for holders of
the $16.4 million mortgage, initiated foreclosure proceedings and
filed a lawsuit May 24, 2012, in Clark County District Court
asking that a receiver be appointed to take control of the
Summerlin building in Howard Hughes Plaza at 10100 West Charleston
Blvd., just west of Hualapai Way.
Dimitri P. Dalacas, Esq., at Flangas McMillan Law Group, in Las
Vegas, represents the Debtor as special counsel.
Under the Plan filed in the Debtor's case, holders of other
general unsecured claims will receive payment of 100% of their
claims to be paid in six months after entry of the confirmation
order with simple interest at a rate of 3%.
CEDA MILLS: 3rd Cir. Affirms Distribution to Minority Shareholders
------------------------------------------------------------------
The U.S. Court of Appeals for the Third Circuit tossed an appeal
by Ceda Mills, Inc., and its majority shareholder, Chet Duffy; and
upheld an order by the U.S. District Court for the Western
District of Pennsylvania affirming a final order of the U.S.
Bankruptcy Court for the Western District of Pennsylvania
instructing Ceda Mills to make distribution payments to minority
shareholders.
Ceda Mills was a company that processed steel at a facility in New
Castle, Pennsylvania. Chet Duffy is the controlling shareholder
of Ceda Mills, owning 83% of the company's outstanding shares of
stock. The remaining 17% of the company's stock is held by four
minority shareholders.
In late summer and early autumn 2003, Ceda Mills' facility and
equipment sustained extensive damage from severe thunderstorms,
forcing the company to cease operations. On April 2, 2004, Ceda
Mills filed a voluntary Chapter 11 bankruptcy petition in the U.S.
Bankruptcy Court for the Western District of Pennsylvania. Among
the debtor's most significant assets were claims brought in
adversary proceedings by Ceda Mills against its insurance carriers
for bad faith denial of coverage and property damage relating to
the thunderstorms. On Oct. 31, 2006, Ceda Mills successfully
negotiated a settlement of some of these claims, resulting in
payment of approximately $14.1 million to Ceda Mills.
As the bankruptcy estate progressed, the Bankruptcy Court became
concerned that conduct by Ceda Mills and Duffy was threatening the
integrity of the bankruptcy process. Among other things, the
Bankruptcy Court learned that Duffy and Ceda Mills had failed to
disclose information concerning the debtor's financial state
(including information about the insurance settlement) to Ceda
Mills' minority shareholders and creditors, thereby failing to
give to these interested parties an accurate disclosure of the
debtor's true financial condition. The Bankruptcy Court also
became concerned about several transfers of money from Ceda Mills'
accounts to Duffy and members of his immediate family.
In February 2010, Ceda Mills requested that the Bankruptcy Court
accept shareholder election forms signed by several minority
shareholders. These forms stated that the minority shareholders
wished to waive any pro rata distribution of excess funds held by
Ceda Mills in exchange for the return of their initial investment
in the company. The Bankruptcy Court declined to accept the
shareholder election forms, reasoning that it made no economic
sense for the minority shareholders to waive their right to the
company's surplus funds.
Instead of accepting the shareholder election forms proffered by
the debtor, the Bankruptcy Court instructed the Office of the
United States Trustee to investigate the circumstances surrounding
the minority shareholders' signing of the shareholder election
forms.
On March 10, 2010, the Trustee filed a report and recommendation
advising that three of the minority shareholders wished to rescind
their previous elections and instead receive their full pro rata
interest in the company's surplus funds. On April 13, 2010, over
the objection of Ceda Mills and Duffy, the Bankruptcy Court
adopted the findings of the Trustee's report and issued an order
that instructed Ceda Mills to distribute excess funds to the
minority shareholders who had elected to receive such
distributions in pro rata amounts equal to each shareholder's
equity interest.
Ceda Mills and Duffy each appealed the Bankruptcy Court's order to
the District Court. On March 29, 2012, the District Court entered
an order affirming the Bankruptcy Court's April 13, 2010 order.
A copy of the Third Circuit's Oct. 1 Opinion is available at
http://is.gd/j3d3oNfrom Leagle.com.
CENTRAL FEDERAL: Expects to Complete Cleveland Expansion in 2014
----------------------------------------------------------------
Central Federal Corporation announced its expansion into Cleveland
along with enhanced services for its Fairlawn customers.
Subject to regulatory approval, CFC, the parent holding company of
CFBank, expects to finalize the sale of its Fairlawn office
building during October, which will clear the way to allow CFBank
to upgrade its services available for its Fairlawn, Ohio,
customers and in addition establish a banking presence in the
Cleveland market. CFBank expects to open an office in Cleveland
in January 2014 and is currently seeking to locate in the Chagrin
Blvd. area of Cleveland.
In conjunction with the sale of the Fairlawn office building,
CFBank will relocate its main office branch into a banking office
roughly 200 yards away from its current location. This new branch
provides drive thru banking capabilities along with a drive up
ATM. In addition to the highly personalized business and personal
services and relationships which CFBank customers have grown
accustomed to, the short move allows CFBank to further enhance its
customer service capabilities for its local Fairlawn, Ohio
customers.
"We are extremely excited about this unique opportunity to enhance
the level of services for our Fairlawn customers while at the same
time entering the Cleveland marketplace," says Tim O'Dell CEO of
CFBank and CFC.
Bob Hoeweler, Board Chairman comments, "This expansion into
Cleveland is consistent with our overall growth strategy and
objectives. Several of our customers and shareholders are based
in the greater Cleveland market and as a niche business bank we
are already generating quality full service banking relationships
as well as also making residential loans in the Cleveland market.
We are gratified by the reception which CFBank has received and
the traction which we are gaining in Cleveland."
"Having a Cleveland presence to support our efforts to expand our
business banking and residential mortgage lending business will
raise our visibility and take our relationship banking brand and
unique approach to doing business into Cleveland and put us closer
to our growing customer base there," says Thad Perry, president
and director.
CFBank is an Ohio full service business bank and residential
mortgage lender. In addition, CFBank delivers full service
personal banking services thru its personalized and relationship
banking style. Once the Cleveland expansion is complete in early
2014, CFBank will have offices in three major metro Ohio markets
along with two community bank locations in Eastern Ohio, located
in Wellsville and Calcutta both in Columbiana County.
About Central Federal
Fairlawn, Ohio-based Central Federal Corporation (Nasdaq: CFBK) is
the holding company for CFBank, a federally chartered savings
association formed in Ohio in 1892. CFBank has four full-service
banking offices in Fairlawn, Calcutta, Wellsville and Worthington,
Ohio.
In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, Crowe Horwath LLP, in
Cleveland, Ohio, expressed substantial doubt about the Company's
ability to continue as a going concern. The Company's auditors
noted that the Holding Company and its wholly owned subsidiary
(CFBank) are operating under regulatory orders that require among
other items, higher levels of regulatory capital at CFBank. The
Company has suffered significant recurring net losses, primarily
from higher provisions for loan losses and expenses associated
with the administration and disposition of nonperforming assets at
CFBank. These losses have adversely impacted capital at CFBank
and liquidity at the Holding Company. At Dec. 31, 2011,
regulatory capital at CFBank was below the amount specified in the
regulatory order. Failure to raise capital to the amount
specified in the regulatory order and otherwise comply with the
regulatory orders may result in additional enforcement actions or
receivership of CFBank.
The Company incurred a net loss of $3.76 million in 2012 as
compared with a net loss of $5.42 million in 2011. As of June 30,
2013, the Company had $244.61 million in total assets, $222.30
million in total liabilities and $22.30 million in total
stockholders' equity.
Regulatory Matters
On May 25, 2011, Central Federal Corporation and CFBank each
consented to the issuance of an Order to Cease and Desist (the
Holding Company Order and the CFBank Order, respectively, and
collectively, the Orders) by the Office of Thrift Supervision
(OTS), the primary regulator of the Holding Company and CFBank at
the time the Orders were issued.
The Holding Company Order required it, among other things, to: (i)
submit by June 30, 2011, a capital plan to regulators that
establishes a minimum tangible capital ratio commensurate with the
Holding Company's consolidated risk profile, reduces the risk from
current debt levels and addresses the Holding Company's cash flow
needs; (ii) not pay cash dividends, redeem stock or make any other
capital distributions without prior regulatory approval; (iii) not
pay interest or principal on any debt or increase any Holding
Company debt or guarantee the debt of any entity without prior
regulatory approval; (iv) obtain prior regulatory approval for
changes in directors and senior executive officers; and (v) not
enter into any new contractual arrangement related to compensation
or benefits with any director or senior executive officer without
prior notification to regulators.
The CFBank Order required CFBank to have by Sept. 30, 2011, and
maintain thereafter, 8% Tier 1 (Core) Capital to adjusted total
assets and 12% Total Capital to risk weighted assets. CFBank will
not be considered well-capitalized as long as it is subject to
individual minimum capital requirements.
CFBank did not comply with the higher capital ratio requirements
by the Sept. 30, 2011, required date.
CHRISTIAN BROTHERS: Nov. 15 Hearing on Adequacy of Plan Outline
---------------------------------------------------------------
The Bankruptcy Court will convene a hearing on Nov. 15, 2013, at
10 a.m., to consider the adequacy of information in the Disclosure
Statement explaining The Christian Brothers' Institute, et al.'s
Chapter 11 Plan. Objections, if any, are due Nov. 8.
As reported in the Troubled Company Reporter on Aug. 27, 2013,
the Debtors and the Official Committee of Unsecured Creditors
co-proposed a bankruptcy-exit plan made possible following an
"allocation plan" negotiated with 75% of sexual abuse claimants.
The Joint Chapter 11 Plan of Reorganization was filed Aug. 22.
According to the explanatory disclosure statement, holders of
sexual abuse claims (Class 4) will have the option of being
treated in one of two ways: (i) payment from the Trust utilizing
the allocation plan or (ii) commencing or continuing litigation
against the Debtors in a court of appropriate jurisdiction.
Holders of Class 4 Claims must make an election of their treatment
on their ballot. Absent any election, the holder will be paid in
accordance with the allocation plan. Holders of allowed sexual
abuse claims who elect the allocation plan alternative will be
paid no less than $5,000.
Holders of allowed fraud claims (Class 5) will receive $10,000
from the trust. Holders of allowed physical abuse claims (Class
6) will receive $500. Holders of Allowed General Unsecured Claims
(Class 8) will receive their pro rata share of $50,000.
Holders of allowed Penalty Claims (Class 9), and abuse related
contingent contribution/reimbursement/indemnity claims (Class 10)
will receive no distribution under the Plan. Classes 9 and 10 are
impaired and deemed to reject the Plan.
The Trust is a "qualified settlement fund" ("QSF") within the
meaning Treasury Regulations enacted under Internal Revenue Code
Section 486B(g). The cash required to fund the Trust, which will
pay holders of Class 4, 5 and 6 Claims, will come from
(i) $13.442 million of cash from the Debtors,
(ii) $3.2 million of cash from Providence Washington
Insurance Co.,
(iii) sales of real property owned by the Debtors,
(iv) the prosecution and settlement of lawsuits which
are property of the Debtors' Estates, and
(v) certain funds that may be received from Non-Settling
Insurers and Participating Parties.
The cash required to fund payments for Professional Fees and
Classes 3 and 8 Claims will come from the Debtors and/or the
Reorganized Debtors.
A copy of the Joint Disclosure Statement is available at:
http://bankrupt.com/misc/CBI.doc571.pdf
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 discloses assets of $1,091,084 and liabilities
of $3,622,500.
Attorneys at Pachulski Stang Ziehl & Jones LLP, in Los Angeles,
Calif., and New York, N.Y., represent the Official Committee of
Unsecured Creditors as counsel. Paul A. Richler, Esq., of
Pacific Palisades, Calif., serves as Special Insurance Counsel to
the Official Committee of Unsecured Creditors.
CITYCENTER HOLDINGS: Fitch Rates $1.8BB Credit Facility 'BB-'
-------------------------------------------------------------
Fitch Ratings assigns a rating of 'BB-/RR2' to CityCenter
Holdings, LLC's (CityCenter) proposed $1.8 billion credit
facility. Fitch also upgrades CityCenter's Issuer Default Rating
(IDR) to 'B' from 'B-', existing first-lien debt to 'BB/RR1' from
'BB-/RR1' and second-lien debt to 'B/RR4' from 'B-/RR4. The Rating
Outlook is Stable.
The new facility will consist of a $1.7 billion term loan B
maturing in 2020 and a $75 million revolver maturing 2018.
Proceeds along with cash on hand will be used to refinance
CityCenter's outstanding $1.86 billion in first and second-lien
notes.
Ratings Could Be Withdrawn
The new credit facility rating is based on publicly available
information and discussions with management. Following the
execution of the refinancing transaction, periodic financial
information for CityCenter may only be provided to lenders. Fitch
is likely to withdraw ratings if it does not have access to the
periodic financial information shared with lenders and the
executed credit agreement.
Rating Drivers
The IDR upgrade to 'B' reflects CityCenter's ability to
successfully grow into its capital structure since opening
December 2009. CityCenter's gross leverage as of June 30, 2013 is
manageable at 6.8x, and Fitch expects leverage to decline to below
6x by year-end. The entertainment complex generates a healthy FCF
cushion, which will expand with the proposed refinancing. The 'B'
IDR also recognizes CityCenter's high asset quality and premium
location on the Las Vegas Strip, for which Fitch continues to have
a constructive outlook.
Fitch estimates CityCenter's pro forma 2013 year-end gross
leverage at 5.6x, which is solid for its 'B' IDR, given the
business risks. The leverage calculation uses Fitch's 2013 EBITDA
forecast for CityCenter of $301.5 million. The property is largely
ramped up at this point so further de-leveraging will be driven
more by reduction in debt. The potential sale of Crystals, sale of
remaining condo units and FCF may help facilitate further debt
reduction.
Management recently stated that they are holding off on selling
Crystals, although at present Fitch thinks the retail complex can
sell for around $650 million (LTM EBITDA at a 5.5% capitalization
rate). As of the July 2013, CityCenter had four penthouse units at
Veer left and 89 units remaining in Mandarin Oriental. Fitch's
base case estimates proceeds from these units in excess of $100
million. Fitch estimates CityCenter's run-rate FCF at above $150
million.
CityCenter's liquidity is strong. Fitch expects the $75 million
revolver will remain undrawn at the time the transaction closes.
The nearest maturity will be the term loan in 2020.
On a standalone basis CityCenter's IDR is largely bound to the 'B'
category due to its concentration in the high-end segment on the
Las Vegas Strip. Also pressuring the ratings is the risk that the
JV sponsors may initiate a leveraging event as the credit profile
improves further. Plausible leveraging transactions may include
paying debt funded dividends or MGM Resort International (MGM)
leveraging CityCenter to fund a consideration payment to Infinity
World (IW) while acquiring IW's half.
CityCenter is a 50/50 JV between MGM and IW. MGM does not
guarantee CityCenter's debt and MGM's operating profile has a high
correlation with CityCenter (i.e. both have high exposure to the
Las Vegas Strip). These factors argue for not linking the ratings
between the entities. However, Fitch recognizes CityCenter's
strategic importance to MGM. CityCenter is a premium property in
cluster of MGM's wholly-owned properties and is part of MGM's
loyalty program. MGM's IDR migrating into the 'BB' category (now
at 'B' with a Positive Outlook) may provide a one notch uplift to
CityCenter's IDR.
Fitch remains positive on the Las Vegas Strip. CityCenter should
benefit from increasing convention mix (2014 bookings are solid)
and low hotel room capacity increase at least through 2017. On a
negative side, international play volume, which has held up well
in recent years, has been soft more recently with baccarat drop
down 5.7% year-to-date. CityCenter has sizable exposure to this
segment.
Transaction Ratings
The 'RR2' Recovery Rating on the new facility incorporates Fitch's
calculation of recovery in an event of default at the high end of
the 71%-90% range.
Fitch uses sum of parts approach to value CityCenter at $1.7
billion in its recovery scenario. Fitch values Aria at $1.2
billion by applying an 8x multiple to the LTM EBITDA stressed at
35%. Fitch values Vdara at approx. $135 million and Crystals at
roughly $335 million by applying stressed capitalization rates of
8% and 12%, respectively, on LTM EBITDA stressed by 25% each.
Fitch values Mandarin Oriental, which generates roughly break-even
EBITDA, at $98 million, or $250,000 per room. Fitch also subtracts
about $45 million for potential ongoing development and
administration expenses, which are largely related to the Pernini
lawsuit.
Fitch's recovery analysis assumes a long time horizon until a
potential default inflection point since there are no near-term
catalysts for a default (i.e. no near-term maturities and healthy
FCF). The long time horizon is reflected in high stress levels
Fitch applies to CityCenter's operating components when
calculating EV. Fitch makes standard assumptions, including a full
draw on the revolver at the time of default and 10% of EV for
administrative claims.
Rating Sensitivities
These factors, individually or combined, may lead to an upgrade of
the IDR to 'B+' or a Positive Outlook:
-- Gross leverage being reduced to below 5x and MGM publicly
stating leverage targets for CityCenter that support leverage
remaining below 5x;
-- MGM's IDR migrating to the 'BB' category may provide a one
notch uplift to CityCenter's IDR; an upgrade of MGM's IDR to
'B+' would be positively factored into CityCenter's IDR but
would probably not be enough to be a catalyst for an upgrade;
-- Positive rating action would likely hinge on Fitch maintaining
a constructive view on the Las Vegas Strip.
The IDR will likely remain in the 'B' category for the foreseeable
future given the business concentration risk plus the uncertainty
with respect to MGM's and IW's capital structure plans for
CityCenter.
These factors, individually or combined, may lead to a downgrade
of the IDR to 'B-' or a Negative Outlook:
-- Leverage increasing, either due to a severe negative trend or
a recapitalization by the JV owners, above 7.5x on gross basis
(there is tolerance for leverage to exceed 7.5x temporarily
due to table hold issues);
-- FCF run-rate declining below $50 million;
-- Sharp and/or pro-longed operating decline due to severe
economic conditions or changes in the competitive environment.
Fitch has taken the following rating actions:
CityCenter Holdings, LLC
-- IDR upgraded to 'B' from 'B-';
-- Proposed $1.7 billion term loan assigned 'BB-/RR2';
-- Proposed $75 million revolver assigned 'BB-/RR2';
-- Existing revolver upgraded to 'BB/RR1' from 'BB-/RR1;
-- First-lien notes upgraded to 'BB/RR1' from 'BB-/RR1;
-- Second-lien notes upgraded to 'B/RR4' from 'B-/RR4'.
CLUB AT SHENANDOAH: Oct. 29 Hearing on Cash Collateral Motion
-------------------------------------------------------------
A continued hearing on Club At Shenandoah Springs Village, Inc.'s
motion to use cash collateral is set for Oct. 29, 2013.
The Club At Shenandoah Springs Village, Inc., owns The Club At
Shenandoah Springs Village, a golf and leisure resort in Thousand
Palms, a desert region of central California. It filed for
Chapter 11 protection (Bankr. C.D. Cal. Case No. 12-36723) on
Dec. 3, 2012. The Debtor estimated both assets and liabilities of
between $10 million and $50 million. Judge Mark D. Houle presides
over the case. Daniel A. Lev, Esq., and Steven Worth, Esq., at
SulmeyerKupetz, in Los Angeles, Calif., represent the Debtor as
counsel.
CODA HOLDINGS: Ex-Workers Say Plan Gives Free Pass to PE Firm
-------------------------------------------------------------
Law360 reported that the putative class of former employees suing
defunct electric carmaker Coda Holdings Inc. for alleged improper
layoffs balked on Oct. 4 at the company's Chapter 11 liquidation
plan, which they argue locks them out of taking action against the
private equity firm that has since bought the debtor.
According to the report, in a preliminary objection filed in the
U.S. Bankruptcy Court for the District of Delaware, Tony Bulchak -
- who filed a U.S. Worker Adjustment and Retraining Notification
Act lawsuit against Coda claiming he and scores of others were
laid off without warning.
About CODA Holdings
Los Angeles, California-based CODA Energy --
http://www.codaenergy.com-- made an electric auto that was a
commercial failure. The company marketed the Coda Sedan, which
sold only 100 copies. It was an electrically powered version of
the Hafei Saibao, made in China. After bankruptcy, Los Angeles-
based Coda intends to concentrate on making stationery electric-
storage systems.
CODA Holdings, Inc., Coda Energy LLC and three other affiliates
filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No.
13-11153) on May 1, 2013, to enable the Company to complete a
sale, confirm a plan, and emerge from bankruptcy in a stronger
position to execute its new business plan. The Company expects
the sale process to take 45 days to complete.
FCO MA CODA Holdings LLC, an affiliate of Fortress Investment
Group, is leading a consortium of lenders intending to provide DIP
financing to enable the Company's energy storage business to
remain fully operational during the restructuring process. The
consortium, or its designee, will also as stalking horse bidder to
acquire the Company post-bankruptcy. In addition, the Company
will seek to monetize value of its existing automotive business
assets.
CODA disclosed assets of $10 million to $50 million and
liabilities of less than $100 million. Coda Automotive Inc.,
disclosed $24,950,641 in assets and $95,859,413 in liabilities as
of the Chapter 11 filing. The Debtors have incurred prepetition a
significant amount of secured indebtedness: secured notes of with
principal in the amount of $59.1 million; term loans in the
principal amount of $12.6 million; and a bridge loan with $665,000
outstanding. FCO and other bridge loan lenders have "enhanced
priority" over other secured noteholders that did not participate
in the bridge loans, pursuant to the intercreditor agreement.
Jeffrey M. Schlerf, Esq., John H. Strock, Esq., and L. John Bird,
Esq., at Fox Rothschild LLP are the proposed counsel for the
Debtors.
CODA's legal advisor in connection with the restructuring is White
& Case LLP. Emerald Capital Advisors serves as its chief
restructuring officer and restructuring advisor, and Houlihan
Lokey serves as its investment banker for the restructuring.
Sidley Austin LLP is serving as FCO MA CODA Holdings LLC's legal
advisor. Brent T. Robinson, Esq., at Robinson, Anthon & Tribe
represents the Debtors in their restructuring efforts.
The Committee tapped Brown Rudnick as its counsel and Deloitte
Financial Advisory Services LLP as its financial advisor.
CROSSOVER FINANCIAL: Disclosure Statement Hearing on Nov. 6
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado will
convene a hearing on Nov. 6, 2013, at 10:30 a.m., to consider the
adequacy of information in the Corrected Fourth Amended Disclosure
Statement explaining Crossover Financial I, LLC's Amended Plan of
Reorganization dated Aug. 21, 2013.
At the hearing, the Court will also consider the objection of
creditor Ross A. Reineke. Thomas F. Quinn, Esq., on behalf of Mr.
Reineke, stated that the Debtor's Plan is not confirmable, because
it is not proposed in good faith.
According to the Disclosure Statement filed with the Fourth
Amended Plan, the Fourth Amended Plan addressed the objections to
the Third Amended Plan. While not altering the proposed
distributions to creditors, the Fourth Amended Plan provides for
the conveyance of the estate assets, primarily the real estate, to
the Liquidating Trust and withdraws the proposed sale to Rivers
Development, Inc.
As a result, if Rivers Development pursues its efforts to acquire
the property, either under terms similar to those set forth in the
Third Amended Plan, or otherwise, any allegations that the
Debtor's manager, Mitchell Yellen, is somehow influencing the sale
become moot, as the sale is subject to the independent evaluation
of the Liquidating Trustee.
A copy of the corrected Disclosure Statement is available for free
at http://bankrupt.com/misc/CROSSOVER_FINANCIAL_4ds_corrected.pdf
As reported in the Troubled Company Reporter on Aug. 28, 2013,
under the Fourth Amended Plan, the Liquidating Trustee will
determine the best method for selling the property, which includes
the authority to propose an auction procedure, in the exercise of
the Liquidating Trustee's reasonable business judgment.
Pursuant to the new Plan, the 108 Noteholder claimants in Class 5,
owed a total of $21,454,000, will receive the balance of the
proceeds of sale of the Real Property after the payment of
unclassified administrative expenses and the secured claims in
Classes 2, 3, and 4.
Pursuant to Section 506 of the Bankruptcy Code, to the extent that
proceeds from the sale of the Real Property are insufficient to
pay the principal amount of the promissory notes in full, any
unpaid principal balance, together with accrued interest and other
charges will be treated as a Class 11 Unsecured Claim.
Class 11 consists of any unsecured portion of claims in Classes 2
through 10 as a result of the bifurcation of the respective claims
under Section 506 of the Bankruptcy Code or any other portion of
the claims that may disallowed as secured claims.
It is not expected that unsecured claims will receive
distributions under the plan.
Upon completion of the distributions to creditors in Classes 2
through 11, Mitchell Yellen's membership interest will be
cancelled and the Equity Claims will not receive any distributions
under the plan and will not receive any property under the plan.
C. Randel Lewis, Principal and Founder of Western Receiver,
Trustee & Consulting Services Ltd., will serve as the Liquidating
Trustee and deemed to have been appointed as representative of the
estate by the Bankruptcy Court pursuant to 11 U.S.C. Section
1123(b)(3)(B). Mr. Lewis will be entitled to compensation for his
services on an hourly basis at his normal hourly rate of $385 per
hour.
A copy of the Fourth Amended Disclosure Statement is available at:
http://bankrupt.com/misc/crossoverfinancial.doc333.pdf
About Crossover Financial I
Crossover Financial I, LLC, based in Elizabeth, Colorado, was
formed on Aug. 12, 2005. Mitchell B. Yellen is the manager and
sole member. The Company was formed for the purpose of raising
funds through a Private Placement Memorandum to be loaned to an
entity known as HPR, LLC, in connection with the acquisition and
development of 440 acres of real property located near Monument,
Colorado.
HPR consisted of three members: Colorado Commercial Builders, Inc.
(37.5%); DJT, LLC (20.0%); and Yellen Family Partnership, LLLP
(42.5%). Mitchell Yellen held an interest in the Yellen Family
Partnership, LLLP.
The project stalled primarily as a result of a collapse in the
residential real estate development market in 2007 and potential
developers pulled out of the project. There has been no
further development activity on the Real Property since 2007.
Faced with the prospect of a lengthy foreclosure proceeding, the
Debtor entered into to an agreement with HPR whereby the Real
Property was transferred to the Debtor by way of a deed-in-lieu
of foreclosure. Upon acquiring the Real Property, the Debtor
attempted to bring in additional developers to continue the
project but those efforts were unsuccessful.
The Company filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case
No. 11-24257) on June 15, 2011. Judge Sidney B. Brooks presides
over the case.
Stephen C. Nicholls, Esq., at Nicholls & Associates, P.C., in
Denver, serves as bankruptcy counsel. In its petition, the Debtor
estimated assets and debts of $10 million to $50 million. The
petition was signed by Mitchell B. Yellen. Karen McClaflin of
Home Source Realty, LLC, Colorado acts as real estate broker for
the Estate.
An official unsecured creditors committee has not been appointed.
CUMULUS MEDIA: Offering up to $92 Million Class A Common Shares
---------------------------------------------------------------
Cumulus Media Inc. has commenced an underwritten public offering,
subject to market and other conditions, of $80 million of its
Class A common stock pursuant to an effective shelf registration
statement. In addition, Cumulus expects to grant the underwriter
an option for a period of 30 days to purchase up to an additional
$12 million of the Class A common stock.
Cumulus intends to use approximately $77.6 million of the net
proceeds from the offering to redeem all outstanding shares of the
Company's Series B preferred stock, including accrued and unpaid
dividends. The remaining net proceeds from the offering, if any,
including any net proceeds from the underwriter's exercise of its
option, are expected to be placed in the Company's corporate
treasury and used for general corporate purposes.
RBC Capital Markets is serving as the sole book-running manager.
About Cumulus Media
Founded in 1998, Atlanta, Georgia-based Cumulus Media Inc.
(NASDAQ: CMLS) -- http://www.cumulus.com/-- is the second largest
operator of radio stations, currently serving 110 metro markets
with more than 525 stations. In the third quarter of 2011,
Cumulus Media purchased Citadel Broadcasting, adding more than 200
stations and increasing its reach in 7 of the Top 10 US metros.
Cumulus also acquired the Citadel/ABC Radio Network, which serves
4,000+ radio stations and 121 million listeners, in the
transaction
Cumulus Media said in its annual report for the year ended
Dec. 31, 2011, that lenders under the 2011 Credit Facilities have
taken security interests in substantially all of the Company's
consolidated assets, and the Company has pledged the stock of
certain of its subsidiaries to secure the debt under the 2011
Credit Facilities. If the lenders accelerate the repayment of
borrowings, the Company may be forced to liquidate certain assets
to repay all or part of such borrowings, and the Company cannot
assure that sufficient assets will remain after it has paid all of
the borrowings under those 2011 Credit Facilities. If the Company
was unable to repay those amounts, the lenders could proceed
against the collateral granted to them to secure that indebtedness
and the Company could be forced into bankruptcy or liquidation.
Cumulus Media put AR Broadcasting Holdings Inc. and three other
units to Chapter 11 protection (Bankr. D. Del. Lead Case No.
11-13674) in 2011 after struggling to pay off debts that topped
$97 million as of June 30, 2011. Holdings estimated debts between
$50 million and $100 million but said assets are worth less than
$50 million. AR Broadcasting operated radio stations in Missouri
and Texas.
As of June 30, 2013, the Company had $3.69 billion in total
assets, $3.35 billion in total liabilities, $72.87 million in
total redeemable preferred stock, and $262.92 million in total
stockholders' equity.
* * *
Standard & Poor's Ratings Services in October 2011 affirmed is 'B'
corporate credit rating on Cumulus Media.
"The ratings reflect continued economic weakness and higher post-
acquisition leverage than we initially expected," said Standard &
Poor's credit analyst Jeanne Shoesmith. "They also reflect the
combined company's sizable presence in both large and midsize
markets throughout the U.S."
As reported by the TCR on April 3, 2013, Moody's Investors Service
downgraded Cumulus Media, Inc.'s Corporate Family Rating to B2
from B1 and Probability of Default Rating to B2-PD from B1-PD.
The downgrades reflect Moody's view that the pace of debt
repayment and delevering will be slower than expected. Although
EBITDA for 4Q2012 reflects growth over the same period in the
prior year, results fell short of Moody's expectations.
DEMCO INC: Taps Horizons Consulting as Tax Consultants
------------------------------------------------------
Demco, Inc. seeks authorization from the Hon. Michael J. Kaplan of
the U.S. Bankruptcy Court for the Western District of New York to
employ Horizons Consulting, LLC, as tax consultants, effective as
of Aug. 26, 2013 -- 30 days prior to the filing of the request.
Horizons Consulting will assist the Debtor with pending audits by
the State of Texas for Texas state franchise taxes and for Texas
state sales and use taxes. The firm will also work with the
Debtor and the State of Texas auditor in the redetermination
process, seeking to resolve the audit adjustments.
The hourly rates being charged by Horizons Consulting for the
managing directors who will be primarily responsible for providing
services to the Debtor in connection with this proceeding are:
Douglas McCubbin, CPA $250
Daryl Jendras $250
Richard Pinger $250
Horizons Consulting will also be reimbursed for reasonable out-of-
pocket expenses incurred.
Horizons Consulting requested a post-petition retainer of $15,000,
proposed to be paid by the Debtor, as cash permits, during the
weeks following the employment of the firm.
Horizons Consulting requested a $5,000 retainer for services to be
rendered in connection with the franchise tax audit and a $10,000
retainer for services to be rendered in connection with the sales
and use tax audit.
Douglas McCubbin, managing director of Horizons Consulting,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and their
estates.
The Court for the Western District of New York will hold a hearing
Oct. 9, 2013, at 10:00 a.m. on the employment application.
Horizons Consulting can be reached at:
Douglas McCubbin, CPA
12063 Mulholland Drive
Stafford, TX 77477
Tel: (832) 472-6688
E-mail: douglas@horizonsconsultingllc.com
About Demco Inc.
Demco, Inc., aka Decommissioning & Environmental Management
Company, is a specialty trade contractor based in West Seneca, New
York, which provides demolition services, nuclear work,
environmental clean-up, disaster response and a variety of other
services throughout the United States and, on a project-by-project
basis, internationally. Some of Demco's better known demolition
projects in the past have included the Rocky Flats Nuclear Power
Plant, Yankee Stadium, the Orange Bowl, Buffalo Memorial
Auditorium, and the Sunflower Army Ammunition Plant.
Demco filed for Chapter 11 protection (Bankr. W.D.N.Y. Case No.
12-12465) on Aug. 6, 2012. Bankruptcy Judge Michael J. Kaplan
presides over the case. Daniel F. Brown, Esq., at Andreozzi,
Bluestein, Fickess, Muhlbauer Weber, Brown, LLP, represents the
Debtor in its restructuring effort. The Debtor estimated assets
and debts at $10 million to $50 million. The petition was signed
by Michael J. Morin, controller.
Tracy Hope Davis, the U.S. Trustee for Region 2, appointed three
creditors to serve on the Official Committee of Unsecured
Creditors.
First Niagara Bank, the cash collateral lender, is represented by
William F. Savino, Esq., at Damon Morey.
DEMCO INC: Freed Maxick Approved as Accountants
-----------------------------------------------
Demco, Inc. obtained U.S. Bankruptcy Court approval to employ
Freed Maxick CPAs, P.C. as its accountants.
As reported in the Troubled Company Reporter on Sep. 5, 2013, the
Debtor said the firm will be paid based on it hourly rates, which
are:
Name Position Rates
---- -------- -----
Henry G. Koziol, Jr. CPA, CFP Director $400.00
Various Principal $350.00
Various Senior Manager $190.00 - $265.00
Various Manager $175.00 - $190.00
Various Senior Associate $125.00 - $140.00
Various Administrative $90.00 - $105.00
Staff
Freed Maxick also requested for a total postpetition retainer of
$7,500, which is proposed to be paid by the Debtor as cash permits
during the weeks following the allowance of the Application.
About Demco Inc.
Demco, Inc., aka Decommissioning & Environmental Management
Company, is a specialty trade contractor based in West Seneca, New
York, which provides demolition services, nuclear work,
environmental clean-up, disaster response and a variety of other
services throughout the United States and, on a project-by-project
basis, internationally. Some of Demco's better known demolition
projects in the past have included the Rocky Flats Nuclear Power
Plant, Yankee Stadium, the Orange Bowl, Buffalo Memorial
Auditorium, and the Sunflower Army Ammunition Plant.
Demco filed for Chapter 11 protection (Bankr. W.D.N.Y. Case No.
12-12465) on Aug. 6, 2012. Bankruptcy Judge Michael J. Kaplan
presides over the case. Daniel F. Brown, Esq., at Andreozzi,
Bluestein, Fickess, Muhlbauer Weber, Brown, LLP, represents the
Debtor in its restructuring effort. The Debtor estimated assets
and debts at $10 million to $50 million. The petition was signed
by Michael J. Morin, controller.
Tracy Hope Davis, the U.S. Trustee for Region 2, appointed three
creditors to serve on the Official Committee of Unsecured
Creditors.
First Niagara Bank, the cash collateral lender, is represented by
William F. Savino, Esq., at Damon Morey.
DETROIT, MI: Protective Order Filed, Expedited Hearing Sought
-------------------------------------------------------------
BankruptcyData reported that the State of Michigan filed with the
U.S. Bankruptcy Court a motion for entry of an order that limits
enquiry relating to emergency manager candidates.
The motion explains, "The State anticipates that the State
Deponents may be asked to identify individuals other than Kevyn
Orr who were actively considered for the position of emergency
manager for the City of Detroit. Each of the individuals, other
than Mr. Orr, who were actively considered for the position were
given assurances by the Governor's office that their identities
would remain confidential. Disclosure of the names of emergency
manager candidates would not only violate their privacy and the
assurances of confidentiality made to them but might also be
damaging to certain of the individuals in their current positions
because their current employers are not aware that these
candidates had expressed an interest in the position. Further,
certain of the individuals are elected officials whose re-
electability could be affected by disclosure of their identities."
The State also filed a separate motion to expedite the hearing of
the protective order motion for October 8, 2013.
About Detroit, Michigan
The city of Detroit, Michigan, weighed down by more than
$18 billion in accrued obligations, sought municipal bankruptcy
protection on July 18, 2013, by filing a voluntary Chapter 9
petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed
more than $1 billion in both assets and debts.
Kevyn Orr, who was appointed in March 2013 as Detroit's emergency
manager, signed the petition. Detroit is represented by
lawyers at Jones Day and Miller Canfield Paddock and Stone PLC.
Michigan Governor Rick Snyder authorized the bankruptcy filing.
The filing makes Detroit the largest American city to seek
bankruptcy, in terms of population and the size of the debts and
liabilities involved.
The city's $18 billion in debt includes $5.85 billion in special
revenue obligations, $6.4 billion in post-employment benefits,
$3.5 billion for underfunded pensions, $1.13 billion on secured
and unsecured general obligations, and $1.43 billion on pension-
related debt, according to a court filing. Debt service consumes
42.5 percent of revenue. The city has 100,000 creditors and
20,000 retirees.
Detroit is represented by David G. Heiman, Esq., and Heather
Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett,
Esq., at Jones Day, in Los Angeles, California; and Jonathan S.
Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield
Paddock and Stone PLC, in Detroit, Michigan.
Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing
the American Federation of State, County and Municipal Employees
and the International Union.
Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is
representing the United Automobile, Aerospace and Agricultural
Implement Workers of America.
A nine-member official committee of retired workers was appointed
in the case. The Retirees' Committee is represented by Dentons US
LLP.
DETROIT, MI: Faces Millions in Bills for Bankruptcy
---------------------------------------------------
Monica Davey, writing for The New York Times, reported that
Detroit, Michigan, is learning that it is expensive to go broke.
According to the report, even as the city wrestles with the $18
billion of debt that has overwhelmed it, Detroit has already been
billed more than $19.1 million by firms hired to sort through that
debt, search for ways to restructure it, and now guide the city
through court. That does not include more costs that the city is
expected to bear for the support staff for its state-appointed
emergency manager, and for another set of lawyers and consultants
to represent city retirees.
"It's just ridiculous," Edward L. McNeil, an official with the
local council of the American Federation of State, County and
Municipal Employees, said of the mounting costs, the report
related. "The only thing that's getting done is that these people
are getting paid big-time while the citizens of Detroit are
getting ripped off."
The uncharted scale of Detroit's bankruptcy -- it is the largest
municipal bankruptcy filing in the nation's history in terms of
both the city's population and its debt -- suggests that it may
also become the costliest, experts say, the report further
related. City officials offer no estimate for a final tab, but
some bankruptcy experts say the collapse could ultimately cost
Detroit taxpayers as much as $100 million. As of last week, 15
firms had contracts with the city that could total as much as
$60.6 million, city records show.
Some lawyers and other consultants are accepting discounted fees,
and a fee examiner has been appointed to ensure that bills stay
within reason, the report added. Still, the soaring costs are a
jolt to retirees and creditors bracing for cuts to payments they
once expected.
About Detroit, Michigan
The city of Detroit, Michigan, weighed down by more than
$18 billion in accrued obligations, sought municipal bankruptcy
protection on July 18, 2013, by filing a voluntary Chapter 9
petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed
more than $1 billion in both assets and debts.
Kevyn Orr, who was appointed in March 2013 as Detroit's emergency
manager, signed the petition. Detroit is represented by
lawyers at Jones Day and Miller Canfield Paddock and Stone PLC.
Michigan Governor Rick Snyder authorized the bankruptcy filing.
The filing makes Detroit the largest American city to seek
bankruptcy, in terms of population and the size of the debts and
liabilities involved.
The city's $18 billion in debt includes $5.85 billion in special
revenue obligations, $6.4 billion in post-employment benefits,
$3.5 billion for underfunded pensions, $1.13 billion on secured
and unsecured general obligations, and $1.43 billion on pension-
related debt, according to a court filing. Debt service consumes
42.5 percent of revenue. The city has 100,000 creditors and
20,000 retirees.
Detroit is represented by David G. Heiman, Esq., and Heather
Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett,
Esq., at Jones Day, in Los Angeles, California; and Jonathan S.
Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield
Paddock and Stone PLC, in Detroit, Michigan.
Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing
the American Federation of State, County and Municipal Employees
and the International Union.
Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is
representing the United Automobile, Aerospace and Agricultural
Implement Workers of America.
A nine-member official committee of retired workers was appointed
in the case. The Retirees' Committee is represented by Dentons US
LLP.
DETROIT, MI: Citizens Living Among Blight Resist Moving
-------------------------------------------------------
Michael Bathon, substituting for Bloomberg bankruptcy columnist
Bill Rochelle, reports that Detroit has almost 150,000 vacant
parcels and 700,000 people on 139 square miles (360 square
kilometers) after losing more than half its population since the
1950s.
According to the report, planners envision farms and other
nonresidential uses for empty land, and creating population-dense
areas where it's easier to offer services. Yet some residents
don't want to move.
About Detroit, Michigan
The city of Detroit, Michigan, weighed down by more than
$18 billion in accrued obligations, sought municipal bankruptcy
protection on July 18, 2013, by filing a voluntary Chapter 9
petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed
more than $1 billion in both assets and debts.
Kevyn Orr, who was appointed in March 2013 as Detroit's emergency
manager, signed the petition. Detroit is represented by
lawyers at Jones Day and Miller Canfield Paddock and Stone PLC.
Michigan Governor Rick Snyder authorized the bankruptcy filing.
The filing makes Detroit the largest American city to seek
bankruptcy, in terms of population and the size of the debts and
liabilities involved.
The city's $18 billion in debt includes $5.85 billion in special
revenue obligations, $6.4 billion in post-employment benefits,
$3.5 billion for underfunded pensions, $1.13 billion on secured
and unsecured general obligations, and $1.43 billion on pension-
related debt, according to a court filing. Debt service consumes
42.5 percent of revenue. The city has 100,000 creditors and
20,000 retirees.
Detroit is represented by David G. Heiman, Esq., and Heather
Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett,
Esq., at Jones Day, in Los Angeles, California; and Jonathan S.
Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield
Paddock and Stone PLC, in Detroit, Michigan.
Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing
the American Federation of State, County and Municipal Employees
and the International Union.
Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is
representing the United Automobile, Aerospace and Agricultural
Implement Workers of America.
A nine-member official committee of retired workers was appointed
in the case. The Retirees' Committee is represented by Dentons US
LLP.
DETRIOT ACADEMY: Moody's Lowers 2001A Revenue Bonds Rating to Ca
----------------------------------------------------------------
Moody's Investors Service has downgraded to Ca from Caa2 the
rating on the Michigan Municipal Bond Authority's Public School
Academy Facilities Program Revenue Bonds (Detroit Academy of Arts
and Sciences), Series 2001A. The outlook on the rating remains
negative. The bonds are a general obligation of the Detroit
Academy of Arts and Sciences (DAAS), payable from all available
revenues of the charter school. The bonds carry a pledge of state
aid, which is the academy's only source of unrestricted revenue;
monthly installment payments of state aid are transferred directly
to the Michigan Finance Authority (MFA) from the state treasurer
pursuant to a lease financing agreement. The MFA is the successor
to the Michigan Municipal Bond Authority (MMBA), which had issued
the bonds in 2001. The MFA has assigned its rights and interest in
the monthly payments to the trustee, the Bank of New York Mellon
Trust Company, N.A. (long-term issuer rating Aa1, rating under
review).
Summary Rating Rationale:
The downgrade to Ca incorporates both the academy's October 1,
2013 default and the expectation that bondholder recovery is
unlikely to exceed 65% of the net present value of remaining debt
service payments, based on enrollment and revenue trends. On
October 1, approximately $600,000 was paid out of the academy's
revenue account on deposit with the trustee, compared to the total
$1.7 million of scheduled principal and interest payment due.
Although over $2 million remains in the academy's debt service
reserve fund (DSRF), no funds were transferred from the DSRF to
complete the October 1 payment.
Moody's ratings represent expected loss, encompassing both default
probability and bondholders' likely post-default recovery. When a
security is in or approaching default, then placement of the
rating will largely depend on the expected recovery to
bondholders. Ratings of defaulted bonds with expected recoveries
of 65-95% will typically be in the Caa range, 35-65% at Ca, and
under 35% at the lowest rating of C. In the rare case when
expected recoveries exceed 95%, such ratings will be in the single
B range.
Maintenance of the negative outlook incorporates the expectation
that continuation of a generally negative enrollment trend could
place further pressure on both the expected bondholder recovery
and the academy's very lean financial position. Enrollment in
grades K-8 has fallen from 1,674 in 2004 to an estimated 1,040 in
the current fiscal year, representing a total decline of 38%. The
education environment in the City of Detroit (GO rated Caa3,
rating under review) is characterized by a high degree of
competition as a large number of charter schools now enroll an
estimated 40% of the city's student population. Future declines in
enrollment would reduce the academy's annual operating revenues
per Michigan's enrollment-based funding formula, further widening
the gap between available resources and required debt service
payments. More substantial declines in enrollment could pressure
the academy's ability to remain in business. Either scenario would
result in a larger bondholder loss.
Challenges:
- Significant drop in enrollment due to closure of high school,
with a direct negative impact on state aid revenues pledged to
debt service
- Statutory restriction on the use of more than 20% of annual
state aid revenue to repay debt
- Strained financial position that could weaken in the case of
further enrollment loss
- Highly competitive market for primary education within the City
of Detroit that can result in significant and negative
fluctuations in enrollment
Strengths:
- Secure debt payment mechanism including direct transfer of
state aid from the state treasurer to the trustee
What Could Move the Rating Up:
- Material growth in enrollment that supports the collection of
additional revenue and improved bondholder recovery estimates
What Could Move the Rating Down:
- Further loss of enrollment that pressures annual revenues or
the academy's ability to continue to function, both of which
would result in downward estimate of bondholder recovery
DEVONSHIRE PGA: Sec. 341 Creditors' Meeting Set for Oct. 23
-----------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of creditors
pursuant to 11 U.S.C. 341(a) in the Chapter 11 case of Devonshire
PGA Holdings LLC on Oct. 23, 2013, at 10:00 a.m. The meeting will
be held at J. Caleb Boggs Federal Building, 2nd Floor, Room 2112,
844 King Street, in Wilmington, Delaware.
Operators of assisted living facilities, led by Devonshire PGA
Holdings LLC, sought Chapter 11 bankruptcy in U.S. Bankruptcy
Court in Wilmington, Delaware on Sept. 19, 2013.
Chatsworth PGA Properties (Bankr. D. Del. Case No. 13-12457)
has estimated liabilities of between $100 million and $500
million, and assets of up to $10 million. Chatsworth PGA
Properties provides assisted living services for the elderly. It
also offers nursing and dementia care.
Devonshire PGA Holdings LLC (Case No. 13-12460), the owner of an
assisted-living facility in Florida, and based in Palm Beach
Gardens, estimated under $50,000 in assets and up to $50 million
in debts. Another entity, Devonshire at PGA National LLC,
estimated more than $100 million in both assets and debt.
The Debtors are represented by M. Blake Cleary, Esq., at Young
Conaway Stargatt & Taylor, LLP, as counsel. Epiq Bankruptcy
Solutions, LLC, serves as claims agent, and as administrative
advisor for the Debtors. Alvarez & Marsal Healthcare Industry
Group, LLC, serves as restructuring advisors, and Alvarez's Paul
Rundell serves as Chief Restructuring Officer.
An official committee of unsecured creditors has not yet been
appointed in these cases by the Office of the United States
Trustee.
DUTCH GOLD: Accepts Resignations of CFO and COO
-----------------------------------------------
The Board of Directors has accepted the resignation dated April 8,
2013, of Mr. Thomas Leahey as chief financial officer, effective
Oct. 7, 2013. The Board of Directors has also accepted the
resignation dated March 28, 2013, of Rauno Perttu as a director of
the Company Company, and as the Company's chief operating officer.
Neither resignation was the result of any disagreement with the
Company Company regarding its operations, policies, practices or
otherwise. The Board expresses its gratitude for the service of
both Mr. Perttu and Mr.Leahey, who may serve as consultants to the
Company on special projects.
About Dutch Gold
Based in Atlanta, Ga., Dutch Gold Resources, Inc. (OTC: DGRI)
-- http://www.dutchgoldresources.com/-- is a junior gold miner
focused on developing its existing mining properties in North
America and acquiring and developing new mines that can enter into
production in 12 to 24 months.
After auditing the 2011 results, Hancock Askew & Co., LLP, in
Norcross, Georgia, noted that the Company has limited liquidity
and has incurred recurring losses from operations and other
conditions exist which raise substantial doubt about the Company's
ability to continue as a going concern.
The Company reported a net loss of $4.58 million on $0 of sales in
2011, compared with a net loss of $3.69 million on $0 of revenue
in 2010. The Company's balance sheet at Sept. 30, 2012, showed
$2.65 million in total assets, $7.17 million in total liabilities
and a $2.23 million total stockholders' deficit.
E.H. MITCHELL: Case Summary & 7 Unsecured Creditors
---------------------------------------------------
Debtor: E. H. Mitchell & Company, L.L.C.
857 Brownswitch Road, Suite 284
Slidell, LA 70458
Case No.: 13-12786
Chapter 11 Petition Date: October 8, 2013
Court: United States Bankruptcy Court
Eastern District of Louisiana (New Orleans)
Judge: Hon. Jerry A. Brown
Debtor's Counsel: Robert L. Marrero, Esq.
ROBERT MARRERO, LLC
3520 General DeGaulle Drive, Suite 1035
New Orleans, LA 70114
Tel: (504) 366-8025
Fax: (504) 366-8026
Email: marrero1035@bellsouth.net
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Furr, secretary/member.
List of Debtor's seven Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Steven M. Furr - $250,569
P. O. Box 24
Nicholson, MS 39463
Kathie B. Rickert, CPA - $120,000
Alan D. Ezkovich - $109,000
Floyd Furr $71,000
Standard Gravel Co., Inc. $54,000
Construction Material Consultants, Inc. $43,000
Ethel Mae Furr $30,000
Pending bankruptcy cases of affiliates:
Debtor Case No. Petition Date
------ -------- -------------
Charles Paul Alonzo 10-10176 01/22/10
Phoenix Associates Land Syndicate, Inc. 09-11743 06/10/09
EARL GAUDIO: Hires Wermer Rogers as Accountants
-----------------------------------------------
Earl Gaudio & Son, Inc., through its custodian First Midwest Bank,
seeks permission from the U.S. Bankruptcy Court for the Central
District of Illinois to employ Wermer, Rogers, Doran & Ruzon as
accountants.
Wermer Rogers will assist in preparing the Debtor's 2012 federal
and state tax returns.
The billing rates of professionals employed by Wermer Rogers for
this engagement will be $150 per hour. Wermer Rogers will also be
reimbursed for reasonable out-of-pocket expenses incurred.
Cathy Thomas, a partner of Wermer Rogers, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
Wermer Rogers can be reached at:
Cathy Thomas
WERMER, ROGERS, DORAN & RUZON
755 Essington Road
Joliet, IL 60435
Tel: (815) 730-6250 x1020
E-mail: cat@wrdr.com
Earl Gaudio & Son, Inc., filed a Chapter 11 petition (Bankr. C.D.
Ill. Case No. 13-90942) on July 19, 2013. The petition was signed
by Angela E. Major Hart, as authorized signer of First Midwest
Bank, custodian. Judge Gerald D. Fines presides over the case.
The Debtor estimated assets of at least $10 million and debts of
at least $1 million. John David Burke, Esq., and Ben T. Caughey,
Esq., at Ice Miller, LLP, serve as the Debtor's counsel.
Evans, Forehlich, Beth & Chamley is the local counsel for the
Official Committee of Unsecured Creditors of the Debtor.
ECLIPSE AVIATION: Loses Bid to Recoup $781,000 From Parts Supplier
------------------------------------------------------------------
Jeoffrey L. Burtch -- the chapter 7 trustee for AE Liquidation,
Inc. (f/k/a Eclipse Aviation Corporation) and its wholly owned
subsidiary EIRB Liquidation, Inc. (f/k/a Eclipse IRB Sunport, LLC)
-- failed in his bid to avoid preferential transfers against
Texstars, Inc. Delaware Bankruptcy Judge Mary F. Walrath held
that Texstars has established that the Transfers were within the
ordinary course of business of the parties and not subject to
avoidance by the Trustee.
Eclipse developed and manufactured private jets known as the
Eclipse 500. Texstars manufactured composite parts that were
designed specifically for the Eclipse 500. Within the 90 days
preceding the Petition Date, Eclipse made nine transfers to
Texstars totaling $781,702.
The case is, JEOFFREY L. BURTCH, CHAPTER 7 TRUSTEE Plaintiff,
v. TEXSTARS, INC., Defendant, Adv. Proc. No. 10-55502 (Bankr. D.
Del.).
A copy of Judge Walrath's Oct. 2, 2013 Memorandum Opinion is
available at http://is.gd/sh1Oncfrom Leagle.com.
About Eclipse Aviation
Albuquerque, New Mexico-based Eclipse Aviation Corporation --
http://www.eclipseaviation.com/-- manufactured six-passenger
planes powered by two Pratt & Whitney turbofan engines. The
Company and Eclipse IRB Sunport, LLC sought chapter 11
protection (Bankr. D. Del. Case No. 08-13031) on Nov. 25, 2008,
represented by lawyers at Allen & Overy LLP, and estimating
assets of less than $500 $500 million and debts of more than
$1 billion.
The Debtor sought to sell all of its assets pursuant to proposed
bid procedures. The Court approved the bid procedures, with
substantial modification, on Dec. 23, 2008. On Jan. 15, 2009,
Over and Out, Inc., and other customers, commenced an adversary
proceeding (Bankr. D. Del. Adv. Pro. No. 09-50029) asserting that
the Debtor breached its Aircraft Deposit Agreements, converted
their deposits, and breached its fiduciary duty. On Jan. 23,
2009, the Court entered an order authorizing the sale of
substantially all of the Debtor's assets to EclipseJet Aviation
International, Inc., finding it had presented the highest and best
offer. In conjunction with that sale, the Court directed that
$3.2 million of the sale proceeds be set held in escrow pending
resolution of the adversary proceeding. Despite approval, the
sale to EclipseJet was never consummated.
As a result, on Mar. 5, 2009, the case was converted to a chapter
7 liquidation proceeding and Jeoffrey L. Burtch was appointed
trustee. The Trustee renewed efforts to sell the Debtor's assets.
On Aug. 28, 2009, the Court authorized the Trustee to sell the
Debtor's assets to Eclipse Aerospace, Inc., for $20 million in
cash and a $20 million note. Once again, as a result of the
Customers' objection to the sale, the Court directed that $3.2
million of the sale proceeds be set aside pending resolution of
the adversary proceeding. The sale to Eclipse Aerospace, Inc.,
closed on Sept. 4, 2009.
Following the sale, the Debtors change their names to AE
Liquidation, Inc., for Eclipse Aviation Corporation) and EIRB
Liquidation, Inc., for Eclipse IRB Sunport, LLC).
EDENOR SA: Riojana to Buy Indirect Shareholding in EMDERSA
----------------------------------------------------------
Energia Riojana S.A. (ERSA), in its capacity as purchaser and
assignee, and the Government of the Province of La Rioja, in its
capacity as the purchaser's controlling shareholder, accepted
Edenor S.A.'s Offer to (i) sell EDENOR's indirect shareholding in
Empresa Distribuidora Electrica Regional S.A., which is Empresa
Distribuidora de Electricidad de La Rioja's parent company, and
(ii) assign for a valuable consideration certain EDENOR's
receivables in relation to EMDERSA and EDELAR.
About Edenor SA
Headquartered in Buenos Aires, Argentina, Edenor S.A. (NYSE: EDN;
Buenos Aires Stock Exchange: EDN) is the largest electricity
distribution company in Argentina in terms of number of customers
and electricity sold (both in GWh and Pesos). Through a
concession, Edenor distributes electricity exclusively to the
northwestern zone of the greater Buenos Aires metropolitan area
and the northern part of the city of Buenos Aires.
Edenor S.A. disclosed a loss of ARS1.01 billion on ARS3.72 billion
of revenue from sales for the year ended Dec. 31, 2012, as
compared with a net loss of ARS291.38 million on ARS2.80 billion
of revenue from sales for the year ended Dec. 31, 2011.
The Company's balance sheet at June 30, 2013, showed Ps.7.21
billion in total assets, Ps.5.47 billion in total liabilities and
Ps.1.74 billion in total equity.
EMPRESAS INTEREX: Has Tentative Deal With PRAPI on Cash Use
-----------------------------------------------------------
Empresas Interex Inc. and PR Asset Portfolio 2013-1 International
LLC ("PRAPI") have engaged in extensive negotiations and reached
an agreement as to the Debtor's use of the Cash Collateral. In
this regard, the parties filed a joint motion with the Bankruptcy
Court seeking continuation sine die of the final hearing on the
use of cash collateral, and granting the parties until Oct. 9 to
file the stipulation governing the cash collateral use.
As reported in the Troubled Company Reporter on Sept. 20, 2013,
PRAPI, a secured creditor of Empresas Interex, submitted an urgent
motion with the Bankruptcy Court seeking entry of an order
prohibiting the Debtor from using PRAPI's cash collateral. PRAPI
also wants the Debtor to provide adequate protection.
On Sept. 30, the Debtor objected to PRAPI's pleadings and a
hearing on the matter was scheduled for Oct. 2, which was
continued for a final hearing to be held Oct. 8.
Attorney for the Debtor can be reached at:
Patricia I. Varela Harrison, Esq.
CHARLES A. CUPRILL, P.S.C., LAW OFFICES
356 Fortaleza Street, Second Floor
San Juan, PR 00901
Tel: 787-977-0515
Fax: 787-977-0518
About Empresas Interex Inc.
San Juan, Puerto Rico-based Empresas Interex Inc. is engaged in
the development, construction, and lease of real estate. One of
the Debtor's construction project is known as Ciudad Atlantis at
Hato Bajo Ward, Arecibo, Puerto Rico.
Empresas Interex filed for Chapter 11 bankruptcy (Bankr. D.P.R.
Case No. 11-10475) on Dec. 7, 2011. Bankruptcy Judge Mildred
Caban Flores presides over the case. The company disclosed
$11,412,500 in assets and $9,335,561 in liabilities. The Debtor
is represented by Charles A. Cuprill P.S.C. Law Offices.
EMPRESAS INTEREX: Nov. 21 Hearing to Confirm Exit Plan
------------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico will
consider confirmation of Empresas Interex Inc.'s Plan of
Reorganization at a hearing on Nov. 21, 2013, at 9 a.m.
Objections, if any, are due 14 days prior to the hearing.
The Court has approved the Disclosure Statement, and certain
amendments thereof, as having adequate information. The Debtor
and parties-in-interest may now solicit acceptances or rejections
of the Debtor's Plan, pursuant to 11 U.S.C. Sec. 1125.
As reported in the Troubled Company Reporter on Aug. 26, 2013, the
first amended disclosure statement provide for this treatment of
claims:
* The claim of DF Services, LLC, the Plan sponsor, estimated to
amount to $7,547,006, is impaired. DF's claim will be satisfied
through the transfer of the Debtor's residential project on the
effective date of the Plan. In consideration of the transfer of
the Property, DF's claim will be reduced to $6,870,728, and DF
will fund the 50% payment to be made to Holders of Allowed General
Unsecured Claims.
* The claim of the Debtor's shareholder, Universidad
Interamericana de Puerto Rico, estimated to amount to $360,440, is
impaired, but is estimated to recover 100% of the allowed amount.
The Allowed Claim of the University, bearing an annual interest at
2% over the prime rate, with a floor of 6%, collateralized by a
parcel of land of 1,598 square meters at PR-830, Bayamon, Puerto
Rico, will be paid on the basis of $1,953 per month, including
principal and interest at 4.25% per annum, over a period of 25
years.
* Allowed General Unsecured Claims, estimated to total
$175,694, are impaired and are estimated to recover 50% of the
total allowed amount. Holders of Allowed General Unsecured Claims
will be paid pro-rata from the $87,847 to be provided by DF.
A full-text copy of the First Amended Disclosure Statement, dated
Aug. 19, 2013, is available for free at:
http://bankrupt.com/misc/EMPRESAS_ds0819.pdf
About Empresas Interex Inc.
San Juan, Puerto Rico-based Empresas Interex Inc. is engaged in
the development, construction, and lease of real estate. One of
the Debtor's construction project is known as Ciudad Atlantis at
Hato Bajo Ward, Arecibo, Puerto Rico.
Empresas Interex filed for Chapter 11 bankruptcy (Bankr. D.P.R.
Case No. 11-10475) on Dec. 7, 2011. Bankruptcy Judge Mildred
Caban Flores presides over the case. The company disclosed
$11,412,500 in assets and $9,335,561 in liabilities. The Debtor
is represented by Charles A. Cuprill P.S.C. Law Offices.
FAIRMONT GENERAL: Oct. 23 Hearing on Use of Cash Collateral
-----------------------------------------------------------
Fairmont General Hospital Inc. et al. on Sept. 6, 2013, obtained
an interim order from the U.S. Bankruptcy Court (A) Authorizing
Interim Use of Cash Collateral, (B) Granting Adequate Protection
to Trustee and (C) Scheduling a Final Hearing pursuant to which,
inter alia, the final hearing on the Debtors' motion for
authorization to use cash collateral and related relief was
scheduled for Oct. 2.
On Sept. 23, 2013, the United States Trustee appointed an Official
Committee of Unsecured Creditors of the Debtors and the Committee
selected Sills Cummis & Gross P.C. as its counsel.
The Debtor, the Official Committee of Unsecured Creditors of the
Debtors, and UMB Bank, N.A., as successor indenture trustee,
engaged in discussions regarding the terms and conditions of
continued use of cash collateral. To afford the Debtors, the
Committee, and UMB Bank additional time to attempt to achieve a
consensual resolution of the terms and conditions of continued use
of cash collateral, the Parties agreed to seek a continuance of
the final hearing on the Motion and authorization for the Debtors
to continue to use cash collateral in accordance with the
provisions of the First Interim Order, as modified, pending a
final hearing on the Motion. And, the final hearing on the Cash
Collateral Motion is continued to Oct. 23, 2013.
The Debtors are authorized to continue using cash collateral
through and including the date of the Final Hearing pursuant to
the terms and conditions of the First Interim Order, as modified,
and subject to the Budget attached to the First Interim Order.
UMB will forbear from exercising its right to terminate use of
cash collateral based upon any negative variance under the Budget
arising during the period prior to and including the date of the
Final Hearing and, to the extent a final order authorizing the use
of cash collateral is entered, UMB will waive any Event of Default
based on any such prior negative Variance.
About Fairmont General
Fairmont General Hospital Inc. and Fairmont Physicians, Inc.,
which operate a 207-bed acute-care facility in Fairmont, West
Virginia, sought Chapter 11 bankruptcy protection (Bankr. N.D.
W.Va. Case No. 13-01054) on Sept. 3, 2013, listing between $10
million and $50 million in both assets and debts.
The fourth-largest employer in Marion County, West Virginia, filed
for bankruptcy as it looks to partner with another hospital or
health system.
The Debtors are represented by Rayford K. Adams, III, Esq., at
Spilman Thomas & Battle, PLLC, in Winston-Salem, North Carolina;
David R. Croft, Esq., at Spilman Thomas & Battle, PLLC, in
Wheeling, West Virginia, and Michael S. Garrison, Esq., at Spilman
Thomas & Battle, PLLC, in Morgantown, West Virginia. The Debtors'
financial analyst is Gleason & Associates, P.C. The Debtors'
claims and noticing agent is Epiq Bankruptcy Solutions.
Counsel to UMB Bank can be reached at:
Nathan F. Coco, Esq.
McDERMOTT WILL & EMERY LLP
227 West Monroe Street
Chicago, IL 60606-5096
E-mail: ncoco@mwe.com
- and -
Suzanne Jett Trowbridge
MCDERMOTT WILL & EMERY LLP
300 Summers Street
Charleston, WV 25301
E-mail: sjt@goodwingoodwin.com
Counsel for the Committee can be reached at:
Andrew Sherman, Esq.
SILLS CUMMIS & GROSS P.C.
One Riverfront Plaza
Newark, NJ 07102
E-mail: asherman@sillcummis.com
- and -
Kirk B. Burkley, Esq.
BERNSTEIN BURKLEY, P.C.
707 Grant Street
Pittsburgh, PA 15219
E-mail: kburkley@bernsteinlaw.com
FIFTH THIRD: Fitch Raises Preferred Stock Rating to 'BB+'
---------------------------------------------------------
Following its large regional bank peer review, Fitch Ratings has
upgraded Fifth Third Bancorp's (FITB) long-term Issuer Default
Rating (IDR) to 'A' from 'A-'. The Rating Outlook is Stable.
Please refer to the release titled 'Fitch Takes Rating Actions on
Its Large Regional Bank Group Following Peer Review' dated Oct. 8,
2013) for a discussion of rating actions taken on the large
regional banks.
Key Rating Drivers - IDR & VR
Fitch upgraded FITB's IDR reflecting the company's strong earnings
profile. The company's earnings continue to trend above peer
averages, and provide for good capital generation. Even excluding
the large Vantiv-related gain in 2Q13, the company's return on
average assets in 1H13 of approximately 1.44% was well above the
large regional peer average of 1.16%.
FITB's capital profile remains solid with an estimated Tier 1
common ratio under Basel III of 9.1%, well above the 7% fully
phased-in requirement of 7%, and roughly in line with large
regional peer averages.
FITB remains predominately core funded, with core deposits
(defined as total deposits less jumbo deposits) representing a
substantial 83% of total funding as of June 30, 2013. Similar to
industry trends, FITB's funding profile is strong, partially
reflective of a weak economic recovery. Further, holding company
liquidity remains robust with considerable cash balances, and no
near-term maturities until 2016.
Although the company's NPAs are elevated from historical levels,
actual losses have been manageable as of late, and reserve levels
are still relatively high. Further, a large percentage of the
accruing troubled debt restructurings (included in NPAs) are
current on principal and interest payments. Excluding TDRs, FITB's
level of NPAs to loans and foreclosed real estate falls slightly
below peer averages.
Rating Sensitivities - IDR & VR
Given FITB's ratings at their new higher level, Fitch does not
anticipate any further ratings upward momentum over the near- to
intermediate-term given the high absolute levels. Further movement
upward would be predicated on a material decline in overall
problem asset levels, combined with the maintenance above earnings
profile. Further, while FITB's capital profile is currently
considered adequate in light of its risk profile, any upgrade in
ratings would likely also be dependent on an above average capital
profile, that provides more than ample loss cushion for unexpected
losses.
Conversely, a reversal in FITB's superior earnings profile and
asset quality trends, combined with a material deterioration in
the liquidity and capital profile could pressure FITB's earnings.
Fitch has upgraded the following ratings:
Fifth Third Bancorp
-- Long-term IDR to 'A' from 'A-'; Outlook Stable;
-- Viability Rating to 'a' from 'a-';
-- Preferred stock to 'BB+' from 'BB';
-- Senior debt to 'A' from 'A-';
-- Subordinated debt to 'A-' from 'BBB+'.
Fifth Third Bank
-- Long-term IDR to 'A' from 'A-'; Outlook Stable;
-- Viability Rating to 'a' from 'a-';
-- Senior debt to 'A' from 'A-';
-- Subordinated debt to 'A-' from 'BBB+';
-- Long-term deposits to 'A+' from 'A'.
Fifth Third Capital Trust IV
-- Preferred to 'BBB-' from 'BB+'.
Fitch has affirmed the following ratings:
Fifth Third Bancorp
-- Short-term IDR at 'F1';
-- Short-term debt at 'F1';
-- Support at '5';
-- Support floor at 'NF'.
Fifth Third Bank
-- Short-term IDR at 'F1';
-- Short-term deposits at 'F1';
-- Support at '5';
-- Support floor at 'NF'.
The Rating Outlook is Stable.
FIRST NATIONAL: Announced Senior Management Appointments
--------------------------------------------------------
First National Community Bancorp, Inc., the parent company of
Dunmore-based First National Community Bank, announced
appointments to three senior management positions at the Bank.
Joseph J. Earyes, CPA, senior vice president, was appointed chief
retail banking & operations officer, Brian C. Mahlstedt, senior
vice president was appointed chief lending officer, and Cathy J.
Conrad, senior vice president was appointed credit administration
officer for First National Community Bank.
"We are pleased to announce these senior-level appointments which
further strengthen our management group with highly experienced
individuals possessing considerable industry background, strong
knowledge of our markets and thorough understanding of our
institution," said Steven R. Tokach, president and chief executive
officer. "These appointments illustrate FNCB's continued
willingness to invest in our leadership team, which ensures that
we have the talent in place to manage our business model and
planned growth."
Joseph Earyes oversees the retail and branch banking business of
the Bank, and the deposit and loan operations, electronic banking
and information technology units, as well as serves as Bank
Program Manager for FNCB Wealth Management Services. Mr. Earyes
joined First National Community Bank in 2008 as Retail Banking
Officer and First senior vice president. Prior to assuming that
role, Mr. Earyes held executive positions at two other Scranton-
area financial institutions from 1995 through 2004. His
professional background also includes more than 18 years of public
accounting experience through his work with both national and
large regional firms. Mr. Earyes, a graduate of King's College,
is a licensed CPA and licensed insurance agent in Pennsylvania, in
addition to holding Series 7 and 63 FINRA securities licenses.
As chief lending officer, Brian Mahlstedt will lead FNCB's
commercial lending and business development teams, as well as
develop and manage business relationships with the Bank's
commercial customers. Mr. Mahlstedt brings more than 30 years of
in-depth credit administration, commercial lending and management
experience. In addition, he previously served as a regional
manager of commercial lending with First National Community Bank
earlier in his career. Brian is a graduate of Bloomsburg
University with a degree in accounting, has studied commercial
lending analysis at New York University and attended the
Pennsylvania Bankers Association Commercial Lending School.
As credit administration officer, Cathy Conrad is responsible for
ensuring that the Bank follows sound underwriting practices
related to commercial loan origination. In addition, she analyzes
and reports on asset quality, and oversees compliance with the
Bank's loan policy. Joining FNCB in 1995, Ms. Conrad has held
various audit, credit analysis and credit administration positions
within the Bank. She is a graduate of Wilkes University, where
she earned a bachelor's degree in accounting and a master's in
business administration. She is also a graduate of the ABA
Stonier Graduate School of Banking and the recipient of a Wharton
Leadership Certificate.
About First National
Headquartered in Dunmore, Pa., First National Community Bancorp,
Inc., is a Pennsylvania corporation, incorporated in 1997 and is
registered as a bank holding company under the Bank Holding
Company Act ("BHCA") of 1956, as amended. The Company became an
active bank holding company on July 1, 1998, when it acquired
ownership of First National Community Bank (the "Bank"). The Bank
is a wholly-owned subsidiary of the Company.
The Company's primary activity consists of owning and operating
the Bank, which provides customary retail and commercial banking
services to individuals and businesses. The Bank provides
practically all of the Company's earnings as a result of its
banking services.
First National disclosed a net loss of $13.71 million on $37.02
million of total interest income for the year ended Dec. 31, 2012,
as compared with a net loss of $335,000 on $42.93 million of total
interest income in 2011. The Company's balance sheet at June 30,
2013, showed $938.25 million in total assets, $906.71 million in
total liabilities and $31.53 million in total shareholders'
equity.
Regulatory Matters
The Bank is under a Consent Order from the Office of the
Comptroller of the Currency dated Sept. 1, 2010. The Company is
also subject to a Written Agreement with the Federal Reserve Bank
of Philadelphia dated Nov. 24, 2010.
The Bank, pursuant to a Stipulation and Consent to the Issuance of
a Consent Order dated Sept. 1, 2010, without admitting or denying
any wrongdoing, consented and agreed to the issuance of the Order
by the OCC, the Bank's primary regulator. The Order requires the
Bank to undertake certain actions within designated timeframes,
and to operate in compliance with the provisions thereof during
its term. The Order is based on the results of an examination of
the Bank as of March 31, 2009. Since the examination, management
has engaged in discussions with the OCC and has taken steps to
improve the condition, policies and procedures of the Bank.
Compliance with the Order is monitored by a committee of at least
three directors, none of whom is an employee or controlling
shareholder of the Bank or its affiliates or a family member of
any such person. The Committee is required to submit written
progress reports on a monthly basis to the OCC and the Agreement
requires the Bank to make periodic reports and filings with the
Federal Reserve Bank. The members of the Committee are John P.
Moses, Joseph Coccia, Joseph J. Gentile and Thomas J. Melone.
Banking regulations also limit the amount of dividends that may be
paid without prior approval of the Bank's regulatory agency. At
Dec. 31, 2012, the Company and the Bank are restricted from paying
any dividends, without regulatory approval.
FLABEG SOLAR: Buncher Granted Relief From Automatic Stay
--------------------------------------------------------
Bankruptcy Judge Carlota M. Bohm granted The Buncher Company
relief from stay in the Chapter 11 case of Flabeg Solar US
Corporation to seek enforcement of its remedies at law or in
equity under applicable nonbankruptcy law with respect to the
Debtor's property.
Flabeg US opposed the request. UniCredit Luxembourg S.A., agent
for a syndicate of lenders, also filed a limited response to
Buncher's bid.
Buncher contends that the automatic stay is not applicable to
protect any alleged interest claimed by the Debtor in certain
property leased by Buncher to another entity, Flabeg GmbH, but
occupied by the Debtor pursuant to a sublease with GmbH. In the
alternative, Buncher asserts that relief from stay is appropriate
under either 11 U.S.C. Sections 362(d)(1) or (2).
UniCredit's Limited Response does not oppose the relief sought by
Buncher, but rather, consistent with its other filings, alleges
the impossibility of reorganization of the Debtor. The Debtor,
however, asserts that the stay applies and that relief from stay
is not warranted under the circumstances.
The bankruptcy case was commenced on April 2, 2013, by the filing
of a Chapter 7 Involuntary Petition (Bankr. W.D. Pa. Case No.
13-21415) against Flabeg US. Following several extensions to
answer the Involuntary Petition, on Aug. 9, 2013, the Court
entered an Order for Relief as of Aug. 2, 2013 and converted the
instant proceeding from a case under Chapter 7 to Chapter 11.
A copy of the Court's Oct. 2 Memorandum Opinion is available at
http://is.gd/VhYFt7from Leagle.com.
Eric A. Schaffer, Esq., represents The Buncher Company.
Robert O. Lampl, Esq., represents Flabeg US.
FOUR STAR HOSPITALITY: Case Summary & 20 Top Unsecured Creditors
----------------------------------------------------------------
Debtor: Four Star Hospitality, LLC
703 North Frontage Road
Wisconsin Dells, WI 53965
Case No.: 13-14925
Chapter 11 Petition Date: October 8, 2013
Court: United States Bankruptcy Court
Western District of Wisconsin (Madison)
Judge: Hon. Robert D. Martin
Debtor's Counsel: Eliza M. Reyes, Esq.
KREKELER STROTHER, S.C.
2901 West Beltline Highway, Suite 301
Madison, WI 53713
Tel: 608-258-8555
Fax: 608-258-8299
Email: ereyes@ks-lawfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mian N. Asghar, managing member.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/wiwb13-14925.pdf
FOURTH QUARTER PROPERTIES: Court Dismisses Chapter 11 Case
----------------------------------------------------------
The U.S. Bankruptcy Court approved the motion filed by the secured
lenders of Fourth Quarter Properties XXXVIII, LLC, Cornerstone
Commercial Mortgages, LLC; and CharterBank to dismiss the Debtor's
chapter 11 case.
The Debtor and the Secured Creditors have reached a settlement as
to the Debtor's repayment of the respective claims of the Secured
Creditors, and the Debtor filed its Motion to Approve Settlement
with the Secured Creditors on Aug. 5, 2013.
Among other things, the Settlement Motion seeks dismissal of the
case and entry of an in re injunction with respect to the Debtor's
real property and leasehold property.
The Court has granted the Settlement Motion.
No objections were timely filed or otherwise asserted as to the
Motion to Dismiss or the Settlement Motion.
Counsel for the Debtor can be reached at:
Austin E. Carter, Esq.
STONE & BAXTER, LLP
577 Mulbery Street, Suite 800
Macon, GA 31201
Tel: (478) 750-9898
Fax: (478) 750-9899
Counsel for Cornerstone Commercial Mortgages can be reached at:
Aaron M. Kappler, Esq.
THOMPSON, O'BRIEN, KEMP & NASUTI, P.C.
40 Technology Parkway South, Suite 300
Norcross, GA 30092
Counsel for Charter Bank can be reached at:
Lynn L. Caroll, Esq.
SIEGEL & GOLDER, P.C.
5605 Glenridge Drive One Premier Plaza
Atlanta, GA 30342
About Fourth Quarter Properties
Fourth Quarter Properties XXXVIII, LLC, filed a Chapter 11
petition (Bankr. N.D. Ga. Case No. 13-10585) in Newnan, Georgia,
on March 5, 2013. The Debtor is a single asset real estate debtor
as defined in 11 U.S.C. Sec. 101(51B) and has property in 45, 47
& 59 Ansley Drive, in Newnan. The Debtor estimated at least
$10 million in assets and at least $1 million in liabilities as of
the Chapter 11 filing.
Austin E. Carter, Esq., and Matthew Stewart Cathey, Esq., at Stone
& Baxter, LLP, in Macon, Georgia, serves as the Debtor's counsel.
Ryan R. Hendley, Esq. -- rhendley@rrllaw.com -- at Reynolds,
Reynolds & Little, LLC represents creditor Cornerstone Commercial
Mortgages, LLC, and Lynn Carroll, Esq. -- lcarroll@sglegal.com --
at Siegel & Golder, P.C., represents creditor Charter Bank.
FRESH & EASY: Employs Jones Day as Lead Bankruptcy Counsel
----------------------------------------------------------
Fresh & Easy Neighborhood Market Inc., et al., seek authority from
the U.S. Bankruptcy Court for the District of Delaware to employ
Jones Day as lead bankruptcy counsel.
The principal professionals and paraprofessionals designated to
represent the Debtors and their current standard hourly rates are
as follows:
Paul Leake, Esq. -- pdleake@jonesday.com $1,000
Lisa Laukitis, Esq. -- llaukitis@jonesday.com $825
Randi Lesnick, Esq. -- rclesnick@jonesday.com $800
Timothy Hoffmann, Esq. -- thoffmann@jonesday.com $650
Jae Woo Park, Esq. -- jpark@jonesday.com $575
Justin Carroll, Esq. -- jfcarroll@jonesday.com $575
George Howard, Esq. -- grhoward@jonesday.com $575
Lauren Buonome, Esq. -- lmbuonome@jonesday.com $575
Christa Smith, Paralegal $225
The firm will also be reimbursed for any necessary out-of-pocket
expenses.
Ms. Laukitis, a partner of Jones Day, in New York, assures the
Court that her firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
On Sept. 17, 2013, the Debtors provided the firm with a retainer
in the amount of $750,000. Thereafter, the firm drew down the
retainer for work performed and expenses incurred pursuant to the
firm's representation of the Debtors and the retainer was
replenished by the Debtors from time to time prior to the Petition
Date. As of the Petition Date, the amount of the retainer was
$449,804.
A hearing on the employment application will be on Oct. 24, 2013,
at 11:00 a.m. (EDT). Objections are due Oct. 17.
Fresh & Easy Neighborhood Market Inc., and its affiliate filed
Chapter 11 petitions (Bankr. D. Del. Case Nos. 13-12569 and 13-
12570) on Sept. 30, 2013. The petitions were signed by James
Dibbo, chief financial officer. Judge Kevin J. Carey presides
over the case. Richards, Layton & Finger, P.A., serves as the
Debtors' counsel. Prime Clerk LLC acts as the Debtors' claims
and noticing agent. The Debtors estimated assets of at least $100
million and liabilities of at least $500 million.
FRESH & EASY: Taps Richards Layton as Local Delaware Counsel
------------------------------------------------------------
Fresh & Easy Neighborhood Market Inc., et al., seek authority from
the U.S. Bankruptcy Court for the District of Delaware to employ
Richards, Layton & Finger, P.A., as their local Delaware counsel.
The principal professionals and paraprofessionals designated to
represent the Debtors and their current standard hourly rates are
as follows:
Mark D. Collins, Esq. -- collins@rlf.com $775
John H. Knight, Esq. -- knight@rlf.com $675
Lee Kaufman, Esq. -- kaufman@rlf.com $450
Amanda R. Steele, Esq. -- steele@rlf.com $350
William A. Romanowicz, Esq. -- romanowicz@rlf.com $250
Ann Jerominski, paralegal $215
The firm will also be reimbursed for any necessary out-of-pocket
expenses.
Mr. Collins, a director of the firm Richards, Layton & Finger,
P.A., in Wilmington, Delaware, assures the Court that his firm is
a "disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code and does not represent any interest adverse
to the Debtors and their estates. Prior to the Petition Date, the
Debtors paid the firm a total retainer of $200,000.
A hearing on the employment application will be on Oct. 24, 2013,
at 11:00 a.m. (EDT). Objections are due Oct. 17.
Fresh & Easy Neighborhood Market Inc., and its affiliate filed
Chapter 11 petitions (Bankr. D. Del. Case Nos. 13-12569 and 13-
12570) on Sept. 30, 2013. The petitions were signed by James
Dibbo, chief financial officer. Judge Kevin J. Carey presides
over the case. Richards, Layton & Finger, P.A., serves as the
Debtors' counsel. Prime Clerk LLC acts as the Debtors' claims
and noticing agent. The Debtors estimated assets of at least $100
million and liabilities of at least $500 million.
FRESH & EASY: Hires Gordon Brothers & Tiger Capital as Consultant
-----------------------------------------------------------------
Fresh & Easy Neighborhood Market Inc., et al., seek authority from
the U.S. Bankruptcy Court for the District of Delaware to employ
the joint venture comprised of Gordon Brothers Group, LLC, and
Tiger Capital Group, LLC, as consultant to assist the Debtors with
their disposition of various real estate and other property not
included in the proposed sale transaction to YFE Holdings, Inc., a
company affiliated with The Yucaipa Companies, LLC.
The consultant will be paid a certain percentage from the gross
proceeds from the lease or sale of any of the Debtors' identified
property. For each closed sale of an owned property, except for
the Stockton, California distribution center and the Stockton,
California kitchen facility, the consultant will earn an amount
equal to 3% of the gross purchase price.
The Debtors will pay to the consultant $500,000, which the
consultant shall hold as a security retainer for all amounts due,
whether in the nature of fees, reimbursement of expenses, or
otherwise. The Debtors will reimburse the consultant for its
reasonable marketing and out-of pocket costs.
Michael D. Chartock, a principal and managing director of GBG, and
Albert T. Nassi, a member of TC, assure the Court that the joint
venture is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
A hearing on the employment application will be on Oct. 24, 2013,
at 11:00 a.m. (EDT). Objections are due Oct. 17.
Fresh & Easy Neighborhood Market Inc., and its affiliate filed
Chapter 11 petitions (Bankr. D. Del. Case Nos. 13-12569 and 13-
12570) on Sept. 30, 2013. The petitions were signed by James
Dibbo, chief financial officer. Judge Kevin J. Carey presides
over the case. Richards, Layton & Finger, P.A., serves as the
Debtors' counsel. Prime Clerk LLC acts as the Debtors' claims
and noticing agent. The Debtors estimated assets of at least $100
million and liabilities of at least $500 million.
FRIENDFINDER NETWORKS: Sec. 341(a) Meeting Scheduled on Oct. 21
---------------------------------------------------------------
The U.S. Trustee for the District of Delaware will convene a
meeting of creditors pursuant to 11 U.S.C. Sec. 341(a) in the
Chapter 11 cases of PGMI Holdings Inc., et al., on Oct. 21, 2013,
at 1:30 p.m. at the J. Caleg Boggs Federal Bldg., 844 King Street,
th Floor, Room 5209, Wilmington, Delaware.
Attendance by creditors at the meeting is welcomed, but not
required. At the meeting, the creditors may examine the Debtors
and transact such other business as may properly come before the
meeting. The meeting may be continued or adjourned from time to
time by notice at the meeting, without further written notice to
the creditors.
About FriendFinder Networks
FriendFinder Networks (formerly Penthouse Media Group) owns and
operates a variety of social networking Web sites, including
FriendFinder.com, AdultFriendFinder.com, Amigos.com, and
AsiaFriendFinder.com. In total, its Web sites are offered in
12 languages to users in some 170 countries. The company also
publishes the venerable adult magazine PENTHOUSE, and produces
adult video content and related images. The Company is based in
Boca Raton, Florida.
FriendFinder Networks reported a net loss of $49.44 million
in 2012, a net loss of $31.14 million in 2011, and a net loss of
$43.15 million in 2010.
FriendFinder Networks and affiliates, including lead debtor PMGI
Holdings Inc., sought bankruptcy protection (Bankr. D. Del. Lead
Case No. 13-12404) on Sept. 17, 2013, estimating assets of
$465.3 million and debt totaling $662 million.
The Debtors are represented by Nancy A. Mitchell. Esq., Matthew L.
Hinker, Esq., and Paul T. Martin, Esq., at Greenberg Traurig, LLP,
in New York, as lead bankruptcy counsel; and Dennis A. Meloro,
Esq., in Wilmington, Delaware, as local Delaware counsel. Akerman
Senterfitt serves as the Debtors' special and conflicts counsel.
The Debtors' financial advisor is SSG Capital Advisors LLC. BMC
Group, Inc., is the Debtors' claims and noticing agent.
On Sept. 21, 2013, the Debtors filed a plan of reorganization
containing details on a reorganization worked out with about 80
percent of first and second-lien lenders before the Sept. 17
Chapter 11 filing. Under the Plan, holders of the $234.3 million
in 14 percent first-lien notes will receive accrued interest plus
an equal amount in new 14 percent first-lien notes to mature in
five years. Excess cash will be used in part to pay down
principal on the notes before maturity. Holders of $330.8 million
in two issues of second-lien notes are to receive all the new
equity.
FRIENDFINDER NETWORKS: Proposes Nov 5. Plan Outline Hearing
-----------------------------------------------------------
PMGI Holdings Inc., et al., ask the U.S. Bankruptcy Court for the
District of Delaware to approve the disclosure statement with
respect to the Debtors' Chapter 11 Joint Plan of Reorganization
filed Sept. 21, 2013.
The Debtors ask the Court to approve the following timetable and
proposed schedule for the Disclosure Statement, Solicitation
Procedures and the Plan:
Disclosure Statement Hearing Nov. 5, 2013, at 2:00 p.m.
Voting Record Date Nov. 5, 2013
Solicitation Commencement Date Nov. 11, 2013
Proposed General Bar Date for Nov. 18, 2013, at 5:00 p.m.
Unsecured Claims, 503(b)(9)
Claims and Interests
Voting Deadline for the Plan Dec. 9, 2013, at 5:00 p.m.
Plan Objection Deadline Dec. 9, 2013, at 5:00 p.m.
Deadline to File Confirmation Dec. 13, 2013, at 5:00 p.m.
Brief and Supporting Evidence
Deadline to Respond to Dec. 13, 2013, at 5:00 p.m.
Objections to the Plan
Deadline to File Voting Dec. 13, 2013, at 5:00 p.m.
Tabulations Affidavit
Confirmation Hearing Dec. 16, 2013, at 11:00 a.m.
Proposed Governmental Unit March 17, 2014, at 5:00 p.m.
Bar Date
As reported in the TCR on Sept 27, 2013, FriendFinder Networks
Inc., the operator of adult social networking Web sites, filed a
plan on Sept. 21 containing details on a reorganization worked out
with about 80 percent of first and second-lien lenders before the
Sept. 17 Chapter 11 filing.
Pursuant to the plan, holders of the $234.3 million in 14 percent
first-lien notes will receive accrued interest plus an equal
amount in new 14 percent first-lien notes to mature in five
years. Excess cash will be used in part to pay down principal on
the notes before maturity.
Holders of $330.8 million in two issues of second-lien notes are
to receive all the new equity. Unsecured creditors are to be paid
in full.
About FriendFinder Networks
FriendFinder Networks (formerly Penthouse Media Group) owns and
operates a variety of social networking Web sites, including
FriendFinder.com, AdultFriendFinder.com, Amigos.com, and
AsiaFriendFinder.com. In total, its Web sites are offered in
12 languages to users in some 170 countries. The company also
publishes the venerable adult magazine PENTHOUSE, and produces
adult video content and related images. The Company is based in
Boca Raton, Florida.
FriendFinder Networks reported a net loss of $49.44 million
in 2012, a net loss of $31.14 million in 2011, and a net loss of
$43.15 million in 2010.
FriendFinder Networks and affiliates, including lead debtor PMGI
Holdings Inc., sought bankruptcy protection (Bankr. D. Del. Lead
Case No. 13-12404) on Sept. 17, 2013, estimating assets of
$465.3 million and debt totaling $662 million.
The Debtors are represented by Nancy A. Mitchell. Esq., Matthew L.
Hinker, Esq., and Paul T. Martin, Esq., at Greenberg Traurig, LLP,
in New York, as lead bankruptcy counsel; and Dennis A. Meloro,
Esq., in Wilmington, Delaware, as local Delaware counsel. Akerman
Senterfitt serves as the Debtors' special and conflicts counsel.
The Debtors' financial advisor is SSG Capital Advisors LLC. BMC
Group, Inc., is the Debtors' claims and noticing agent.
On Sept. 21, 2013, the Debtors filed a plan of reorganization
containing details on a reorganization worked out with about 80
percent of first and second-lien lenders before the Sept. 17
Chapter 11 filing. Under the Plan, holders of the $234.3 million
in 14 percent first-lien notes will receive accrued interest plus
an equal amount in new 14 percent first-lien notes to mature in
five years. Excess cash will be used in part to pay down
principal on the notes before maturity. Holders of $330.8 million
in two issues of second-lien notes are to receive all the new
equity.
GATEHOUSE MEDIA: Combined Plan & Outline Hearing Set for Nov. 6
---------------------------------------------------------------
Judge Mary F. Walrath of the U.S. Bankruptcy Court for the
District of Delaware scheduled a hearing on Nov. 6, 2013, at 1:00
p.m. (prevailing Eastern Time) to consider the confirmation of
Gatehouse Media, Inc., et al.'s Joint Prepackaged Plan of
Reorganization and consider the adequacy of the disclosure
statement explaining the Plan.
Any objections to the Disclosure Statement and confirmation of the
Plan must be filed by Oct. 30.
Judge Walrath stated that the U.S. Trustee need not, and will not,
convene a meeting of creditors pursuant to Section 341(a) of the
Bankruptcy Code if the Plan is confirmed within 60 days of the
Petition Date.
Prior to the Petition Date and pursuant to a plan support
agreement, GateHouse solicited votes on the Plan over from holders
of claims under its 2007 secured credit facility and certain
related interest rate swaps. The Plan was accepted by the only
impaired class of creditors entitled to vote on it. Specifically,
79 out of the 80 holders of secured debt entitled to vote holding
an aggregate amount of $1,199,317,153 (representing 99.99% of the
total secured debt) voted to accept the Plan. No creditors voted
to reject the Plan.
Pension, trade and all other unsecured creditors of GateHouse
would not be impaired under the Plan, and their votes were not
solicited. GateHouse's common stock would be canceled under the
Plan, and holders of secured debt would have the option of
receiving a cash distribution equal to 40% of their claims, or
stock in New Media Investment Group Inc., a new holding company
that will own GateHouse and Local Media Group.
The Plan hinges on the combination of Gatehouse with assets of Dow
Jones Local Media Group, which Newcastle Investment Corp. bought
for $87 million.
About GateHouse Media
GateHouse Media, Inc. -- http://www.gatehousemedia.com/--
headquartered in Fairport, New York, is one of the largest
publishers of locally based print and online media in the United
States as measured by its 97 daily publications. GateHouse Media
currently serves local audiences of more than 10 million per week
across 21 states through hundreds of community publications and
local Web sites.
As of June 30, 2013, the Company had $433.70 million in total
assets, $1.28 billion in total liabilities and a $848.85 million
total stockholders' deficit.
GateHouse Media and its affiliates sought protection under Chapter
11 of the Bankruptcy Code (Case No. 13-12503, Bankr. D.Del.) on
Sept. 27, 2013. The case is assigned to Judge Mary F. Walrath.
The Debtors are represented by Patrick A. Jackson, Esq., and
Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware. Their financial advisor is Houlihan
Lokey Capital, Inc. Epiq Bankruptcy Solutions, LLC, serves as
their claims and noticing agent.
GATEHOUSE MEDIA: Final Cash Collateral Hearing Set for Oct. 23
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave
Gatehouse Media, Inc., et al., interim authority to use cash
collateral and scheduled a final hearing to be held on Oct. 23,
2013, at 3:00 p.m.
As adequate protection, Gleacher Products Corporation, as
Administrative Agent, is granted a valid and first priority
perfected security interests in and liens on all of the Debtors'
assets; valid and first priority perfected, replacement security
interests in and liens on the Debtors' properties; and a
superpriority claim pursuant to Section 507(b) of the Bankruptcy
Code, subject only to a carve-out, which means: (a) allowed
professional fees and disbursements incurred on or prior to the
termination date; (b) allowed professional fees and disbursement
incurred following the termination date in an aggregate amount not
to exceed $1.0 million; (c) fees required to be paid pursuant to
28 U.S.C. Sec. 1930(a)(6); and (d) fees and expenses of any
Chapter 7 trustee and professionals in an aggregate amount not to
exceed $10,000.
The Debtor is represented by Pauline K. Morgan, Esq., and Joel A.
Waite, Esq., at Young Conaway Stargatt & Taylor, LLP, in
Wilmington, Delaware.
The Administrative Agent is represented by Mark Shinderman, Esq. -
- mshinderman@milbank.com -- and Thomas R. Kreller, Esq. --
tkreller@milbank.com -- at Milbank, Tweed, Hadley & McCloy LLP, in
Los Angeles, California; and Mark Collins, Esq. -- collins@rlf.com
-- and L. Katherine Good, Esq. -- good@rlf.com -- at Richards
Layton & Finger, P.A., in Wilmington, Delaware.
About GateHouse Media
GateHouse Media, Inc. -- http://www.gatehousemedia.com/--
headquartered in Fairport, New York, is one of the largest
publishers of locally based print and online media in the United
States as measured by its 97 daily publications. GateHouse Media
currently serves local audiences of more than 10 million per week
across 21 states through hundreds of community publications and
local Web sites.
As of June 30, 2013, the Company had $433.70 million in total
assets, $1.28 billion in total liabilities and a $848.85 million
total stockholders' deficit.
GateHouse Media and its affiliates sought protection under Chapter
11 of the Bankruptcy Code (Case No. 13-12503, Bankr. D.Del.) on
Sept. 27, 2013. The case is assigned to Judge Mary F. Walrath.
The Debtors are represented by Patrick A. Jackson, Esq., and
Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware. Their financial advisor is Houlihan
Lokey Capital, Inc. Epiq Bankruptcy Solutions, LLC, serves as
their claims and noticing agent.
GATEHOUSE MEDIA: Employs Houlihan Lokey as Fin'l Advisor & Banker
------------------------------------------------------------------
Gatehouse Media, Inc., et al., seek authority from the U.S.
Bankruptcy Court for the District of Delaware to employ Houlihan
Lokey Capital, Inc., as financial advisor and investment banker.
The Debtors have agreed to pay Houlihan Lokey a transaction fee of
$4.0 million upon the occurrence of both the effective date of a
Chapter 11 plan and court approval of the firm's final fee
application. If a "new debt facility" as the term is defined in
the Joint Prepackaged Plan of Reorganization is raised, the firm
will be paid a market fee subject to an amendment to the
engagement letter, which will be submitted to the Court for
approval. In addition, the Debtors agree to reimburse the firm
for out-of-pocket expenses in an amount not to exceed $50,000,
unless a greater amount is agreed to by the Debtors.
The firm assures the Court that it is a "disinterested person" as
the term is defined in Section 101(14) of the Bankruptcy Code and
does not represent any interest adverse to the Debtors and their
estates.
A hearing on the employment application will be held on Oct. 23,
2013, at 3:00 p.m. (ET). Objections are due Oct. 16.
About GateHouse Media
GateHouse Media, Inc. -- http://www.gatehousemedia.com/--
headquartered in Fairport, New York, is one of the largest
publishers of locally based print and online media in the United
States as measured by its 97 daily publications. GateHouse Media
currently serves local audiences of more than 10 million per week
across 21 states through hundreds of community publications and
local Web sites.
As of June 30, 2013, the Company had $433.70 million in total
assets, $1.28 billion in total liabilities and a $848.85 million
total stockholders' deficit.
GateHouse Media and its affiliates sought protection under Chapter
11 of the Bankruptcy Code (Case No. 13-12503, Bankr. D.Del.) on
Sept. 27, 2013. The case is assigned to Judge Mary F. Walrath.
The Debtors are represented by Patrick A. Jackson, Esq., and
Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware. Their financial advisor is Houlihan
Lokey Capital, Inc. Epiq Bankruptcy Solutions, LLC, serves as
their claims and noticing agent.
GOLD CROWN: Huakan Int'l Enters Into Forbearance Agreement
----------------------------------------------------------
Huakan International Mining Inc. on Oct. 8 provided an update with
respect to the defaults of Gold Crown LLC, AMT Industries Canada
Inc. and Mineral Invest International MII AB in performing their
respective obligations under the Letter Agreement dated March 26,
2013 and an update regarding the legal proceedings for the
appointment of a Receiver lodged by the Company.
As of the date of this news release, the outstanding indebtedness
owed by the Debtors related to the Letter Agreement is
approximately $4.65 million plus accrued interest.
The Company has entered into a forbearance agreement with the
Debtors, pursuant to which, the Debtors will repay the Outstanding
Indebtedness by way of eight installment payments to the Company
from October 25, 2013 to May 1, 2014. The Company has agreed to
forbear from taking any further steps to exercise its rights or
remedies against the Debtors under the Letter Agreement and
related security documents, or from taking any further steps in
the legal proceedings commenced on August 19, 2013, until or
unless a termination event within the meaning of the Forbearance
Agreement occurs. A breach by the Debtors of any covenant in the
Forbearance Agreement constitutes a termination event under the
Forbearance Agreement.
As consideration for the Company to enter into the Forbearance
Agreement, the Debtors have agreed to pay the Company an extension
fee of $500,000 by way of three tranches of payment. As of the
date of this news release, the first and second tranches of the
extension fees totaling $250,000 are overdue by the Debtors and
the Company has delivered notices of default to the Debtors. The
third tranche of $250,000 is payable on May 1, 2014.
HALIFAX REGIONAL: Moody's Affirms 'Ba3' Rating to Bonds
-------------------------------------------------------
Moody's Investors Service has affirmed the Ba3 rating assigned to
Halifax Regional Medical Center's bonds. The affirmation reflects
stable balance sheet reserves and improved operating performance
through ten months FY 2013. The outlook is negative, reflecting
continued patient volume declines amid a challenging service area.
Summary Rating Rationale:
The Ba3 rating is attributable to Halifax's small size,
inconsistent, but generally below average operating results, and
high exposure to Medicaid at 19% of gross revenue. Moody's notes,
favorably, that absolute cash has remained relatively steady over
the last few years at nearly $21 million. Although Halifax issued
debt two years ago to support capital projects, the organization's
leverage remains light at approximately 23% debt to revenue,
contributing to stable leverage metrics. However, the outlook
remains negative reflecting the fifth consecutive year of volume
declines. Through ten months FY 2013, inpatient volumes
(admissions plus observation stays) are down 6.5% over the prior
year, contributing to negative revenue growth in interim 2013 and
putting pressure on the organization to constantly cut expenses in
order to maintain cash flow.
Strengths:
* Halifax's cash position has remained stable over the last few
years, and although small from an absolute perspective,
liquidity is sufficient with 89 days cash on hand and 103% cash
to direct debt through ten months FY 2013. Moody's notes that
the cash position has remained steady in part due to low
capital spending through FY 2010, and that capital spending in
2011 and 2012 was partly debt financed.
* North Carolina began a provider fee program in FY 2012, which
is providing approximately $3 million in net annual benefit to
Halfiax.
* Halifax's operating performance has improved through 10 months
FY 2013, with the operating cash flow margin rising to 5.9%
compared to 3.7% in FY 2012. Moody's notes, however, that
operating revenue has declined due to patient volume pressure.
* Halifax has implemented a hospitalist program over the last
several years and has assumed inpatient care for many local
physicians. Although the program has contributed to higher
operating expenses (the physicians are employed), it does allow
Halifax to pursue operational efficiencies in the hospital.
Challenges:
* Through ten months FY 2013, inpatient volumes (admissions plus
observation stays) are down 6.5% over the prior year,
contributing to a 2.4% drop in operating revenue. Inpatient
admissions have dropped in each of the last four fiscal years.
Although Halifax has an improved operating cash flow margin
through ten months FY 2013, Moody's believes the long term
trend of declining volumes and the resulting revenue pressure,
will make it increasingly difficult to achieve consistent
operating cash flow margins.
* Small absolute size of the hospital makes it susceptible to
physician departures, which have contributed to the variation
in operating performance and patient volume fluctuations
* High exposure to Medicare and Medicaid, comprising a combined
72% of patient volume in FY 2012
Outlook:
The negative outlook reflects continued volume pressure and
negative revenue growth in FY 2013.
What Could Make the Rating Go Up
Over the near term an upgrade is unlikely given Halifax's recent
variability in performance and declining patient volumes. If
Halifax is able to stem patient volume and revenue declines while
maintaining operating performance at current levels, Moody's would
consider revising the outlook to stable. Over the long term, an
upgrade would be considered if Halifax improves operating
performance and achieves stability in patient volumes.
What Could Make the Rating GO Down
The rating could be downgraded if Halifax's operating performance
deteriorates from current levels, or if cash balances decline.
Additional factors that could result in a downgrade include
material capital or borrowing plans, or loss of key physicians.
HALSEY MINOR: Trustee Seeks to Sell CNET Founder's Cisco Stock
--------------------------------------------------------------
Michael Bathon, substituting for Bloomberg bankruptcy columnist
Bill Rochelle, reports that the court appointed trustee for Halsey
Minor, the CNET Networks Inc. founder who filed for bankruptcy in
May, is seeking court permission to sell Minor's stock in Cisco
Systems Inc.
According to the report, Minor owns 823 shares of Cisco common
stock and has $840 in a Morgan Stanley brokerage account. The
value of the shares, based on a $23.34 closing price on Sept. 30,
is $19,209, the trustee said in the court papers filed Oct. 4.
The trustee will liquidate the securities and "requests authority
to sell them at any time so long as they are sold at a price
greater than $20 per share," according to the court filing. The
sale will incur about $101 in brokerage fees.
The report notes that the Internal Revenue Service and the
California Franchise Tax Board, which claim to have liens on
substantially all of Minor's assets, would have liens attached
to the proceeds of the sale, court papers show. Minor sought
Chapter 7 bankruptcy protection May 24 five years after selling
CNET for $1.8 billion. He has more than $30 million in assets and
more than $50 million in debt, according to the trustee. Under
Chapter 7 of the U.S. Bankruptcy Code, a trustee is automatically
appointed to handle affairs and liquidate assets for the benefit
of creditors.
The report relates that Minor sold CNET to CBS Corp. in 2008,
netting himself about $200 million, according to CNN Money. He
lost money on bad bets on real estate and other ventures. Halsey
Minor's Minor Ventures invested in early stage technology startups
including GrandCentral Communications Inc., which Google Inc.
bought in 2007 for about $65 million and renamed Google Voice.
The case is In re Halsey McLean Minor, 13-bk-23787, U.S.
Bankruptcy Court, Central District of California (Los Angeles).
HEALTH CARE REIT: Fitch Currently Rates Preferred Stock at 'BB+
---------------------------------------------------------------
Fitch Ratings has assigned the following debt obligation rating to
Health Care REIT, Inc. (NYSE: HCN):
-- $400 million 4.5% senior unsecured notes 'BBB'.
The notes mature in January 2024 and were priced at 98.958% of
their face amount to yield 4.626%. The company will use net
proceeds from the notes offering to repay borrowings under the
company's unsecured revolving credit facility and for general
corporate purposes.
Fitch currently rates the company as follows:
-- Issuer Default Rating (IDR) 'BBB';
-- $2.25 billion unsecured revolving credit facility 'BBB';
-- $738 million senior unsecured term loans 'BBB';
-- $5.4 billion senior unsecured notes 'BBB';
-- $494 million senior unsecured convertible notes 'BBB';
-- $1.0 billion preferred stock 'BB+'.
The Rating Outlook is Stable.
Key Rating Drivers
The ratings reflect HCN's broad healthcare real estate platform,
which generates largely predictable cash flow predominantly from
private pay sources in markets with strong demographics. The
company has projected fixed charge coverage and leverage that are
appropriate for a 'BBB' rated healthcare REIT. HCN also has good
access to capital and a solid liquidity position, including
contingent liquidity from unencumbered assets, and a strong
management team. Credit concerns center on operational volatility
associated with the company's REIT Investment Diversification and
Empowerment Act of 2007 (RIDEA)-related investments and modest
operator concentration.
Predictable Cash Flow
Limited lease rollover risk and structural protections embedded in
HCN's management agreements underpin portfolio cash flow
stability. HCN's lease expiration schedule is well-laddered with
only 12.1% of leases expiring through 2017 (excluding the seniors
housing operating portfolio). In addition, master leases and/or
cross-collateralization arrangements with seniors housing and
healthcare facility operators minimize operators' ability to
selectively renew management agreements for higher performance
assets. Approximately 80% of the portfolio is in the top 31
metropolitan statistical areas or on the East or West coasts,
based on data from the National Investment Center for the Seniors
Housing & Care Industry.
Strong Same-Store Growth
Same-store net operating income (NOI) growth has been solid in the
range of 3.5%-5.0% on a quarterly basis since 4Q'10. Growth was
3.8% in 2Q'13, led by the seniors housing operating portfolio at
8.4%, which represents 34.9% of NOI as of 2Q'13. This contribution
has increased from 17.7% at 2Q'12 following the close of the
Sunrise acquisition earlier this year.
Appropriate Credit Metrics for 'BBB'
Fixed-charge coverage for the trailing 12 months (TTM) ended June
30, 2013 was 2.7x, which is appropriate for the rating, compared
with 2.6x in 2012 and 2.3x in 2011. Fitch projects that coverage
will continue to improve over the next 12-to-24 months, driven by
projected mid-single-digit same-store performance for the seniors
housing operating portfolio and low-single-digit average growth
for the rest of the portfolio, coupled with incremental cash flow
from new investments. In a more adverse case than anticipated by
Fitch, coverage could decline below 2.5x, which is more
commensurate with a 'BBB-' rating for a healthcare REIT.
Net debt-to-TTM recurring operating EBITDA was 6.5x as of June 30,
2013. However, leverage based on annualized 2Q'13 EBITDA
(primarily incorporating HCN's Sunrise investment) was 5.9x, which
is appropriate for the 'BBB' rating. In a more adverse case than
currently anticipated by Fitch, leverage could rise above 6.5x,
which is more appropriate for a 'BBB-' rating for a healthcare
REIT.
Strong Access to Capital and Adequate Liquidity
HCN raised approximately $6 billion of capital in 2012 including
unsecured bonds, unsecured term loans, follow-on common equity and
preferred equity. The company also upsized its credit facility
while increasing the term and lowering the rate. HCN's liquidity
position pro forma for recent capital transactions and the closing
of the Sunrise acquisition is adequate, with total sources of
liquidity covering uses by 1.2x for the period July 1, 2013 to
Dec. 31, 2015. Liquidity coverage would improve to 1.9x if 80% of
secured debt is refinanced.
The company also benefits from a staggered debt maturity schedule.
The company has only 17.8% of total debt maturing through 2015 and
no more than 14% of total debt maturing in any given year through
2019. HCN also has good contingent liquidity. Unencumbered assets
(unencumbered annualized 2Q'13 NOI divided by a stressed 9% cap
rate) to unsecured debt was 2.1x, which is appropriate for the
'BBB' rating.
Increasing RIDEA Exposure
The portfolio exhibits the potential for increased cash flow
volatility from recent investments in RIDEA operating
partnerships. RIDEA NOI has increased to nearly 35% of total
annualized 2Q'13 NOI from 17.7% at 2Q'12. Fitch views the increase
as a moderate credit concern, as increased cash flow volatility is
partially mitigated by the quality of the assets and the favorable
near- to medium-term fundamental outlook for seniors housing.
Modest Reimbursement Risk
Approximately 82% of HCN's portfolio NOI is derived from private
pay sources, a credit positive. This mitigates reimbursement and
regulatory risk, exemplified by the 11.1% reimbursement cut to
skilled nursing facilities mandated by the Centers for Medicare
and Medicaid Services (CMS) in fiscal 2012. The reimbursement cut
was the primary reason for cash flow coverage of skilled nursing
facilities tenants to drop to 1.75x in FY2012 from 2.22x in
FY2011. Healthcare operators are expected to continue to face
reimbursement challenges, particularly given continued government
budget issues.
Moderate Tenant Concentration
As of June 30, 2013, Sunrise Senior Living was the largest tenant,
representing 15.6% of invested capital, with the three largest
tenants representing 33.7%, evidence of moderate tenant
concentration. However, this is mitigated by the solid performance
of these tenants, which operate in well-diversified, attractive
high-barrier-to-entry markets, and with cross-collateralized lease
structures.
Strong Management Team
HCN's management team has successfully managed the rapid growth of
the company while maintaining solid credit metrics and portfolio
performance. The company has demonstrated a commitment to pre-
funding acquisitions in a leverage-neutral manner for the benefit
of unsecured bondholders.
Stable Outlook
The Stable Rating Outlook centers on HCN's normalized credit
metrics that are appropriate for the rating coupled with strong
liquidity and access to capital. In addition, Fitch expects
healthcare real estate to continue to benefit from positive
demographic trends and limited new supply.
Preferred Stock Notching
The two-notch differential between HCN's IDR and its preferred
stock rating is consistent with Fitch's criteria for corporate
entities with a 'BBB' IDR. These preferred securities are deeply
subordinated and have loss absorption elements that would likely
result in poor recoveries in the event of a corporate default.
Rating Sensitivities
The following factors may result in positive momentum in the
ratings and/or Rating Outlook:
-- Fitch's expectation of fixed-charge coverage sustaining
above 3.0x (TTM coverage at 2Q'13 was 2.7x);
-- Fitch's expectation of leverage sustaining below 5.5x (2Q'13
leverage was 5.9x);
-- Fitch's expectation of unencumbered assets to unsecured debt
based on a 9% capitalization rate sustaining above 3.0x (this
metric was 2.1x as of June 30, 2013).
The following factors may result in negative momentum in the
ratings and/or Rating Outlook:
-- Fitch's expectation of fixed charge coverage sustaining
below 2.5x;
-- Fitch's expectation of leverage sustaining above 6.5x;
-- Fitch's expectation of unencumbered assets to unsecured debt
sustaining below 2.0x;
-- Base case liquidity coverage sustaining below 1.0x (this metric
was 1.2x as of June 30, 2013).
HERCULES OFFSHORE: 84.5% of Holders Tender 2017 Senior Notes
------------------------------------------------------------
Hercules Offshore, Inc., had received, as of 5:00 p.m., New York
City Time, on Sept. 30, 2013, tenders and consents from the
holders of $253,625,000 in aggregate principal amount, or
approximately 84.54 percent, of its outstanding $300,000,000 10.50
Percent Senior Secured Notes due 2017 in connection with its
previously announced cash tender offer and consent solicitation
for the Notes, which commenced on Sept. 17, 2013.
In connection with the tender offer and related consent
solicitation for the Notes, Hercules Offshore entered into a
supplemental indenture to the indenture governing the Notes to,
among other things, eliminate most of the restrictive covenants
and certain event of default provisions in the indenture. Notes
tendered on or prior to the Consent Expiration may no longer be
withdrawn. The settlement date for Notes tendered on or prior to
the Consent Expiration was Oct. 1, 2013.
The tender offer for the Notes is scheduled to expire at 11:59
p.m., New York City time, on Oct. 15, 2013, unless extended or
earlier terminated by Hercules Offshore. Notes tendered after the
Consent Expiration but prior to the Expiration Time will not
receive a consent payment, but will receive tender consideration
of $1,053.75 per $1,000 principal amount of Notes accepted in the
offer, plus accrued and unpaid interest up to, but not including,
the date of payment for the Notes. The final settlement for the
tender offer will be promptly after the Expiration Time and is
expected to be on Oct. 16, 2013, the next business day following
the Expiration Time.
Any Notes not tendered and purchased pursuant to the tender offer
will remain outstanding, and the holders thereof will be subject
to the terms of the supplemental indenture although they did not
consent to the amendments.
Hercules Offshore has engaged Deutsche Bank Securities Inc. to act
as dealer manager and solicitation agent in connection with the
tender offer. Questions regarding the tender offer may be
directed to Deutsche Bank Securities, Inc., at (212) 250-7527
(collect) or (855) 287-1922 (US toll-free). Requests for
documentation may be directed to D.F. King & Co., Inc., at (800)
488-8075 (US toll-free).
The Company elected to redeem all 10.50 percent Notes that were
not tendered in the Tender Offer and that remain outstanding on
Nov. 4, 2013, and the Company instructed the trustee to provide
the requisite notice of redemption to holders of the Redeemed
Notes on Oct. 2, 2013. The redemption price for the Redeemed
Notes is 105.25 percent, or $1,052.50 per $1,000.00, of the
principal amount of the Redeemed Notes, plus accrued and unpaid
interest, resulting in a payment of approximately $48.8 million.
Following the payment of the Redemption Price on the Redemption
Date, there will be no Redeemed Notes outstanding.
A copy of the Form 8-K is available for free at:
http://is.gd/KYYhLC
About Hercules Offshore
Hercules Offshore Inc. (NASDAQ: HERO) --
http://www.herculesoffshore.com/-- provides shallow-water
drilling and marine services to the oil and natural gas
exploration and production industry in the United States, Gulf of
Mexico and internationally. The Company provides these services
to integrated energy companies, independent oil and natural gas
operators and national oil companies. The Company operates in six
business segments: Domestic Offshore, International Offshore,
Inland, Domestic Liftboats, International Liftboats and Delta
Towing.
Hercules incurred a net loss of $127 million in 2012, a net loss
of $76.12 million in 2011, and a net loss of $134.59 million in
2010. As of June 30, 2013, the Company had $2.15 billion in total
assets, $1.23 billion in total liabilities and $917.27 million in
total equity.
* * *
The Troubled Company Reporter said on April 11, 2013, that
Moody's Investors Service upgraded Hercules Offshore, Inc.'s
Corporate Family Rating to B2 from B3. Hercules' B2 CFR is
supported by its improved cash flow and lower leverage on the back
of increased drilling activity and higher day-rates in the Gulf of
Mexico (GOM)
As reported by the TCR on Nov. 6, 2012, Standard & Poor's Ratings
Services raised its corporate credit rating on Houston-based
Hercules Offshore Inc. to 'B' from 'B-'. "The upgrade reflects
the improving market conditions in the Gulf of Mexico and our
expectations that Hercules' fleet will continue to benefit," said
Standard & Poor's credit analyst Stephen Scovotti.
HOUSTON REGIONAL: Astros Network to Fight Involuntary Filing
------------------------------------------------------------
Michael Bathon, substituting for Bloomberg bankruptcy columnist
Bill Rochelle, reports that Houston Regional Sports Network LP,
which televises games of Major League Baseball's Houston Astros
and the National Basketball Association's Houston Rockets, will
fight the involuntary bankruptcy its creditors are trying to force
upon it.
According to the report, U.S. Bankruptcy Judge Marvin Isgur denied
the creditor's request for an emergency appointment of a Chapter
11 trustee to take control of the network, according to documents
filed in bankruptcy court on Sept. 30 in Houston. The judge
instead scheduled an Oct. 28 hearing to consider the request and
any motions to dismiss the bankruptcy. Harry Perrin, a lawyer for
Houston Regional Sports Network, said the case should be
dismissed, according to a docket entry of the courtroom minutes
for the hearing held on Sept. 30. No formal request to dismiss
the involuntary bankruptcy was filed as of the time of this
writing. All dismissal requests had to be filed by Oct. 7,
according to the Sept. 30 ruling.
Creditors, including affiliates of Comcast Corp., filed an
involuntary chapter 11 bankruptcy filing against the regional
sports network. Comcast claims that it is owed more than $100
million and the broadcaster hasn't been paying its debts as they
come due. "To avoid the destruction of the network's substantial
value" the creditors filed the involuntary bankruptcy, according
to court papers. Comcast, which owns NBCUniversal, is willing to
buy the assets of the network, saying in court filings --
containing portions that were omitted -- that they have
"significant value." The broadcaster is a joint venture of
affiliates of the Houston Astros, Houston Rockets and Comcast.
The report relates that Comcast "would be prepared to make a bid
to acquire either the network (under a plan of reorganization) or
substantially all of its assets," the Philadelphia-based cable
company said in court filings. It said it's willing to provide
financing to help fund operations while in bankruptcy. Comcast
has asked the court to appoint a Chapter 11 trustee to take over
control of the company and oust management, with which it has
reached a "debilitating deadlock" in a disagreement over the
direction and management of the network, according court
documents.
The report discloses that a lawyer for Comcast told the judge that
the network's general manager had "stepped down." "Comcast has
improperly filed an involuntary bankruptcy petition in an attempt
to prevent the Astros from terminating the Media Rights Agreement
between the Astros and Houston Regional Sports Network," the
baseball team said in a statement on its Web site Sept. 27.
About Houston Regional Sports Network
An involuntary Chapter 11 bankruptcy petition was filed against
Houston Regional Sports Network, L.P. d/b/a Comcast SportsNet
Houston (Bankr. S.D. Tex. Case No. 13-35998) on Sept. 27, 2013.
The involuntary filing was launched by three units of Comcast/NBC
Universal and a television-related company. The petitioners are:
Houston SportsNet Finance LLC, Comcast Sports Management Services
LLC, National Digital Television Center LLC, and Comcast SportsNet
California, LLC.
The petitioning creditors have filed papers asking the Bankruptcy
Judge to appoint an independent Chapter 11 trustee "to conduct a
fair and open auction process for the Network's business assets on
a going concern basis."
Houston Regional Sports Network is a joint enterprise among
affiliates of the Houston Astros baseball team, the Houston
Rockets basketball team, and Houston SportsNet Holdings, LLC --
"Comcast Owner" -- an affiliate of Comcast Corporation. The
Network has three limited partners -- Comcast Owner, Rockets
Partner, L.P., and Astros HRSN LP Holdings LLC. The primary
purpose of Houston Regional Sports Network is to create and
operate a regional sports programming service that produces,
exhibits, and distributes sports programming on a full-time basis,
including live Astros and Rockets games within the league-
permitted local territories.
The Network also has one general partner -- Houston Regional
Sports Network, LLC -- "General Partner" -- which, subject to
certain limitations, exercises exclusive management, supervision,
and control over the Network's properties and business. The
General Partner's sole purpose is to serve as the Network's
general partner; it has no authority or power to act outside of
that role. The General Partner has three members -- Comcast
Owner, JTA Sports, Inc. -- "Rockets Owner" -- and Astros HRSN GP
Holdings LLC -- "Astros Owner".
Counsel for the petitioning creditors are Howard M. Shapiro, Esq.,
Craig Goldblatt, Esq., and Jonathan Paikin, Esq., at Wilmer Cutler
Pickering Hale and Dorr LLP in Washington, D.C.; George W.
Shuster, Jr., Esq., at Wilmer Cutler in New York; Vincent P.
Slusher, Esq., and Andrew Zollinger, Esq., at DLA Piper; and
Arthur J. Burke, Esq., Timothy Graulich, Esq., and Dana M.
Seshens, Esq., at Davis Polk & Wardwell LLP.
HUNTINGTON BANCSHARES: Fitch Ups Preferred Stock Rating to 'BB'
---------------------------------------------------------------
Following its large regional bank peer review, Fitch Ratings has
upgraded Huntington Bancshares, Inc.'s (HBAN) long-term Issuer
Default Rating (IDR) to 'A-' from 'BBB+'. The Rating Outlook is
revised to Stable from Positive. Please refer to the release
titled 'Fitch Takes Rating Actions on Its Large Regional Bank
Group Following Peer Review' dated Oct. 8, 2013 for a discussion
of rating actions taken on the large regional banks.
Key Rating Drivers - IDR & VR
Fitch's upgrade of HBAN's IDR is supported by the company's good
earnings profile, solid capital and liquidity position, and stable
asset quality performance, which is currently in-line with 'A-'
rated regional peers.
Despite a difficult operating environment, HBAN has delivered
solid results with ROA hitting an average of 1.13% and
PPNR/Average Assets averaging 1.70% over the last five quarter-end
periods. Although not immune to the pressures from the low
interest rate environment, HBAN's NIM compression has been more
manageable versus its large regional peers. Incorporated in
Fitch's rating action is the view that current operating trends
are sustainable.
Fitch also believes that given the company's improved risk
profile, credit metrics should remain stable and within its
normalized range 0.35%-0.55%, although for 2Q13 NCO were slightly
below at 0.34%. Additionally, the company's strong non-interest
bearing deposit growth (up 65% over the last two years) has
lowered its structural funding costs. The company's is also
targeting positive operating leverage position, which should
support the bottom line.
HBAN's capital position is also considered to be strong as its
estimated Tier 1 common under Basel III is on the higher-end of
peers at 10.11% for 2Q13.
Rating Sensitivities - IDR & VR
HBAN's ratings are at the high-end given that at the current
rating of 'A-' performance is in-line with peers.
Although not expected, should HBAN's performance fall below
current levels such as ROA and NIM or credit measures weaken with
outsized losses impacting capital levels, ratings would come under
pressure. Additionally, aggressive capital management would also
be viewed negatively.
Fitch has upgraded the following ratings:
Huntington Bancshares, Incorporated
-- Long-term IDR to 'A-' from 'BBB+'; Outlook Stable;
-- Short-term IDR to 'F1' from 'F2';
-- Viability rating to 'a-' from 'bbb+';
-- Subordinated debt to 'BBB+' from 'BBB';
-- Preferred stock to 'BB' from 'BB-'.
Huntington National Bank
-- Long-term deposits to 'A' from 'A-';
-- Long-term IDR to 'A-' from 'BBB+'; Outlook Stable;
-- Viability rating to 'a-' from 'bbb+';
-- Senior unsecured to 'a-' from 'BBB+';
-- Subordinated debt to 'BBB+' from 'BBB';
-- Short-term IDR to 'F1' from 'F2'.
Huntington Capital I, II
-- Preferred stock to 'BB+' from 'BB'.
Sky Financial Capital Trust I-IV
-- Preferred stock to 'BB+' from 'BB'.
Fitch has affirmed the following ratings:
Huntington Bancshares, Incorporated
-- Support at '5';
-- Support Floor at 'NF'.
Huntington National Bank
-- Short-term deposits at 'F1';
-- Support at '5'.
The Rating Outlook is Stable.
HUNTSMAN INTERNATIONAL.: Moody's Rates New Secured Term Loan 'Ba2'
------------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to the new senior
secured term loan due 2021 of Huntsman International LLC (HI),
lowered the rating on its existing senior secured term loans to
Ba2 from Ba1 and affirmed the remaining ratings (Corporate Family
Rating of Ba3) of HI and Huntsman Corporation (Huntsman).
Proceeds from the term loan will be used to finance the 2014
acquisition of Rockwood Specialties Group, Inc.'s Pigments and
Performance Additives Business (excluding Clay-based Additives).
Huntsman will acquire the assets for $1.325 billion ($1.1 billion
in cash funded by the new term loan and assume $225 million of
pension liabilities). The transaction is expected to close in the
first half of 2014, subject to regulatory approvals.
"Huntsman is lining up its funding for the acquisition to lock in
a relatively low spread over LIBOR," stated Moody's analyst John
Rogers. "Even if the transaction does not occur, Huntsman will
have the flexibility to refinance its existing term loans with the
proceeds from the new loan."
The following summarizes the outlook activity:
Ratings assigned:
Huntsman International LLC
Senior secured term loan due 2021 at Ba2 (LGD3, 30%)
Ratings lowered:
Huntsman International LLC
Senior secured term loans due 2016 and 2017 to Ba2 (LGD3, 30%)
from Ba1 (LGD2, 25%)
Ratings affirmed:
Huntsman Corporation
Corporate Family Rating at Ba3
Probability of Default Rating at Ba3-PD
Huntsman International LLC
Corporate Family Rating at Ba3
Probability of Default Rating at Ba3-PD
Speculative Grade Liquidity Rating at SGL-2
Gtd. senior unsecured notes due 2020 at B1 (LGD5, 77% from LGD5,
71%)
Gtd. senior subordinate notes due 2020 and 2021 at B2 (LGD6, 94%
from LGD6, 93%)
Ratings Rationale:
The Ba3 Corporate Family Rating (CFR) at Huntsman and HI reflect
its solid competitive position in urethanes, epoxies and TiO2, as
well as an experienced management team. Additional support for the
rating considers management's stated intention to reduce net
leverage to about 2.0 to 2.5 times on a normalized EBITDA basis
(this ratio does not incorporate Moody's adjustments). However,
the severe downturn in TiO2 profitability over the past year has
materially weakened credit metrics and the proposed acquisition of
Rockwood's business would further stress Huntsman's metrics for
the Ba3 CFR (pro forma Debt/EBITDA as of June 30 , 2013 of roughly
5.0x). However, the TiO2 business appears to have bottomed in the
first half of 2013 and should generate a material improvement in
margins in the second half of 2013 and into 2014. Rockwood's TiO2
business has been slower to recover due to high priced ore
inventories and low capacity utilization.
The Ba2 rating on the new term loan and the downgrade of the
existing senior secured term loans reflects the increase in the
secured debt relative to the remaining debt in the capital
structure. Despite the large amount of secured term loan debt
($2.9 billion), the still sizable unsecured and subordinated debt
(over $1.5 billion) plus other debt like liabilities raises the
rating on the term loans to one notch above the CFR per Moody's
Loss Given Default Methodology. Huntsman plans to close on the new
term loan in 2014 coincident with the closing of the acquisition.
This amendment will also provide a $1 billion accordion facility
(similar to the existing agreement) and allow the issuance of
additional debt that matures after the maturity of the term loan.
The stable outlook reflects the expected improvement in Huntsman's
financial metrics in 2014, from the weak pro forma levels cited
above, given a recovery in the TiO2 margins and growth in
Huntsman's other businesses. Debt/EBITDA (including Moody's
standard adjustments) is expected to be 4.0-4.2x in 2014 and
Retained Cash Flow/Debt is expected to be in the 12-15% range. If
Debt/EBITDA remains above 4.5x in 2014 due to the failure of TiO2
margins to recover, Moody's could lower Huntsman's CFR by one
notch. An upgrade is unlikely at the current time due to elevated
financial metrics and uncertainty over the pace of improvement
through the first half of 2014. However, if Huntsman is able to
reduce its Debt/EBITDA towards 3.0x on a sustainable basis,
Moody's could raise the CFR to Ba2.
Huntsman's Speculative Grade Liquidity rating of SGL-2 is
supported by an elevated cash balance and the expectation for over
$300 million of free cash flow over the next four quarters.
Huntsman's secondary liquidity is provided by a $400 million
undrawn revolver due in 2017 and over $250 million of availability
under its US and European accounts receivable programs due 2016.
As part of this amendment Huntsman will expand its revolver to
$600 million at the close of the transaction.
Huntsman Corporation is a global manufacturer of differentiated
and commodity chemical products. Huntsman's products are used in a
wide variety of end markets, including aerospace, automotive,
construction, consumer products, electronics, medical, packaging,
coatings, refining and synthetic fibers. Huntsman has revenues of
almost $11 billion.
INFINIA CORP: U.S. Trustee Forms 4-Member Creditors Committee
-------------------------------------------------------------
Richard A. Wieland, the U.S. Trustee for Region 19, has appointed
these persons or entities to the Official Committee of Unsecured
Creditors of Infinia Corporation, LLC, and PowerPlay Solar I, LLC:
1. Petersen Incorporated ? CHAIRMAN
Attn: Jake Schumers
1527 North 2000 West
Ogden, UT 84404
Tel: (801) 732-2020
Fax: (801) 732-2089
E-mail: jake.schumers@peterseninc.com
2. Intertek Testing Services, NA, Inc.
Attn: Troy Hewitt
3933 US Route 11
Cortland, NY 13045
Tel: (607) 758-6636
Fax: (607) 753-1045
E-mail: troy.hewitt@intertek.com
3. ATL Technology, LLC
Attn: Robert A. Sorensen
1335 West 1650 North
Springville, UT 84663
Tel: (801) 765-9803
Fax: (801) 491-6364
E-mail: bobs@atltechnology.com
4. LeanWerks
Attn: Suzanna Leland
2767 Industrial Drive
Ogden, UT 84401
Tel: (801) 621-2134
E-mail: suzannal@leanwerks.com
About Infinia Corp.
Infinia Corp. and subsidiary Powerplay Solar I LLC, the owners of
a solar generation project in Yuma, Arizona, filed Chapter 11
cases (Bankr. D. Utah Case No. 13-30688) on Sept. 17, 2013. The
Debtors estimated assets and debts of at least $10 million.
The Debtors are represented by George B. Hofmann, Esq., and Steven
C. Strong, Esq., at PARSONS KINGHORN & HARRIS, P.C., in Salt Lake
City, Utah.
INFINIA CORP: Can Incur Debt of Up to $5.32-Mil. From Atlas Global
------------------------------------------------------------------
On Sept. 30, 2013, U.S. Bankruptcy Judge of the U.S. Bankruptcy
Court for the District of Georgia, Central Division, granted
Infinia Corporation and PowerPlay Solar I, LLC, interim
authorization to incur debt of up to a total committed amountof
$5,318,500, from Atlas Global Investment Management, as
administrative agent and collateral agent to the Lenders.
The proceeds of the DIP Facility will be used solely for (a)
working capital and general corporate purposes, (b) payment of
costs of administration of the cases, and (c) upon entry
of the Final Order, the Pre-Petition Lender Party's Debt Payoff in
accordance with the DIP Financing Agreements, which will
constitute a roll-up under the DIP Financing Agreements.
The DIP Obligations will be secured by first priority Liens of all
real and personal property of the debtor's estate, subject only to
Permitted Liens, and with priority, over all other administrative
expenses, as provided in section 364(c)(1) of the Bankruptcy Code.
A copy of the Interim DIP Financing Order is available at:
http://bankrupt.com/misc/INFINIACORP_dip financing_order.pdf
About Infinia Corp.
Infinia Corp. and subsidiary Powerplay Solar I LLC, the owners of
a solar generation project in Yuma, Arizona, filed Chapter 11
cases (Bankr. D. Utah Case No. 13-30688) on Sept. 17, 2013. The
Debtors estimated assets and debts of at least $10 million.
The Debtors are represented by George B. Hofmann, Esq., and Steven
C. Strong, Esq., at PARSONS KINGHORN & HARRIS, P.C., in Salt Lake
City, Utah.
INTERSTATE PROPERTIES: Court Dismisses Chapter 11 Case
------------------------------------------------------
The U.S. Bankruptcy Court, in a Sept. 19 order, dismissed the
chapter 11 case of Interstate Properties, LLC.
The Debtor filed a Motion to Dismiss, which was set for hearing
Aug. 19, 2013.
The Court ordered the Debtor to satisfy certain conditions,
including that the Debtor's counsel execute and file an affidavit
stating that all other conditions had been met.
The Debtor's counsel filed on Sept. 17 an affidavit showing
compliance with the Court's Aug. 23 Order.
Attorney for the Debtor can be reached at:
George M. Geeslin, Esq.
Eight Peidmont Center, Suite 550
3525 Piedmont Road, NE
Atlanta, GA 30305-7036
Tel: (404) 841-3464
Fax: (404) 816-1108
Email:geesligm@aol.com
About Interstate Properties
Interstate Properties, LLC, filed a Chapter 11 petition (Bankr.
N.D. Ga. Case No. 12-76037) in Atlanta on Oct. 17, 2012. Judge
Margaret Murphy presides over the case. George M. Geeslin, Esq.,
who has an office in Atlanta, Georgia, serves as the Debtor's
bankruptcy counsel.
The Debtor owns and operates, among others, two shopping centers,
one located in Elkview, West Virginia, and one located in Decatur,
Georgia. In its schedules, as amended, the Debtor disclosed
$73,002,403 in total assets and $62,264,480 in total liabilities.
JACKSONVILLE BANCORP: Raises $5 Million in Stock Offerings
----------------------------------------------------------
Jacksonville Bancorp, Inc., holding company for The Jacksonville
Bank, has completed the sale of $5 million in common stock, or 10
million shares. The capital was raised through the sale of common
stock to participating shareholders in the Company's previously
announced rights offering and to purchasers in its public offering
of the shares unsubscribed for in the Rights Offering. The Public
Offering was fully subscribed with 7,917,383 shares of common
stock sold to institutional and local investors through Hovde
Group, LLC, the Company's sales agent for the Public Offering.
Don Glisson, Jr., Chairman of the Board, commented, "We are very
pleased with the results of the Public Offering, and by the
support from local investors and customers of The Jacksonville
Bank, as well as the institutional investment community. The
success of this offering gives us positive momentum as we continue
to strengthen our capital position and execute our strategic
initiatives."
About Jacksonville Bancorp
Jacksonville Bancorp, Inc., a bank holding company, is the parent
of The Jacksonville Bank, a Florida state-chartered bank focusing
on the Northeast Florida market with eight full-service branches
in Jacksonville, Duval County, Florida, as well as the Company's
virtual branch. The Jacksonville Bank opened for business on
May 28, 1999, and provides a variety of community banking services
to businesses and individuals in Jacksonville, Florida.
Jacksonville Bancorp disclosed a net loss of $43.04 million in
2012, a net loss of $24.05 million in 2011 and a $11.44 million
net loss in 2010. The Company's balance sheet at March 31, 2013,
showed $520.89 million in total assets, $487.47 million in total
liabilities and $33.42 million in total shareholders' equity.
"Both Bancorp and the Bank must meet regulatory capital
requirements and maintain sufficient capital and liquidity and our
regulators may modify and adjust such requirements in the future.
The Bank's Board of Directors has agreed to a Memorandum of
Understanding (the "2012 MoU") with the FDIC and the OFR for the
Bank to maintain a total risk-based capital ratio of 12.00% and a
Tier 1 leverage ratio of 8.00%. As of December 31, 2012, the Bank
was well capitalized for regulatory purposes and met the capital
requirements of the 2012 MoU. If noncompliance or other events
cause the Bank to become subject to formal enforcement action, the
FDIC could determine that the Bank is no longer "adequately
capitalized" for regulatory purposes. Failure to remain
adequately capitalized for regulatory purposes could affect
customer confidence, our ability to grow, our costs of funds and
FDIC insurance costs, our ability to make distributions on our
trust preferred securities, and our business, results of
operation, liquidity and financial condition, generally,"
according to the Company's annual report for the year ended
Dec. 31, 2012.
JC PENNEY: Says Turnaround Efforts "Making Solid Progress"
----------------------------------------------------------
Ben Fox Rubin, writing for The Wall Street Journal, reported that
J.C. Penney Co. on Oct. 8 reported improving sales trends in
September but noted that turning around the struggling retailer is
still in the early stages.
According to the report, at stores opened more than a year, sales
fell 4% last month, an improvement over the roughly double-digit
declines in August and the second quarter.
"Over the last six months, we have made significant strides and
are now seeing positive signs in many important areas of the
business, in spite of what continues to be a difficult environment
for consumers and retailers in general," said Chief Executive
Myron E. Ullman, the report cited.
He acknowledged, though, that the company is "still in the early
stages of the turnaround," and Penney suggested challenges remain,
such as improving traffic at mall-based stores, weaker
profitability because of discounting and fixing its home
department, the report related.
Nonetheless, investors were encouraged by the improvement in
sales, the report said. Shares, which have fallen 61% in 2013 and
are trading at multidecade lows, jumped about 6% in early trading.
J.C. Penney Company, Inc. is one of the U.S.'s largest department
store operators with about 1,100 locations in the United States
and Puerto Rico.
* * *
As reported in the Troubled Company Reporter on Oct. 4, 2013,
Fitch Ratings has downgraded the Issuer Default Ratings (IDRs) on
J.C. Penney Co., Inc. and J.C. Penney Corporation, Inc. to 'CCC'
from 'B-'.
JOURNAL REGISTER: Mercer's Stay Relief, Case Dismissal Bids Nixed
-----------------------------------------------------------------
Arthur Mercer contends that he was slandered and defamed by an
article published in the Daily Freeman on June 18, 2010 pertaining
to his arrest. He filed a civil action in New York state court on
June 21, 2011, seeking $200 million in damages. The state court
action was stayed after Journal Register Company filed for
bankruptcy in September 2012, and was never removed to the
Bankruptcy Court. Mercer has now moved (1) to dismiss the
Debtors' chapter 11 petitions as having been filed in bad faith
and to change venue, (2) for relief from the automatic stay and
abstention, and (3) for mandatory abstention. He has also moved
for the recusal of Bankruptcy Judge Stuart M. Bernstein, who
oversees Journal Register's case.
In an Oct. 2 Memorandum Decision and Order available at
http://is.gd/NEbci1from Leagle.com, Judge Bernstein explained why
Mercer's motions are denied:
1. Mercer contends that the Court should recuse itself
because he "feels that this judge is for the Debtors and
has shown favoritism toward the debtors." Judge Bernstein
said Mercer has failed to identify any incident of alleged
bias, and accordingly, his recusal motion is denied.
2. Mercer has failed to show cause why the case should be
dismissed. According to the judge, Mercer does not argue
that the Debtors' chances of emerging from chapter 11 were
objectively futile at the time of filing. The Debtors ran
operating businesses with numerous employees and
substantial assets (and liabilities). They sold
substantially all of their assets during the case, and the
proceeds from the sale provide the means to implement the
proposed plan. Instead, Mercer argues that the Debtors
filed these cases as a tactic to gain advantage in pending
litigations, including the lawsuit that Mercer commenced.
While the filing stayed all litigation against the
Debtors, it did not provide any advantage beyond the stay.
Mercer has not identified any favorable ruling he obtained
in the state court litigation that the Debtors intended to
frustrate or collaterally attack through the filing of the
chapter 11 cases.
3. Among other things, Mercer argues that one of the Debtors
recently acquired real property in the Catskills, and
suggests that the Debtors' cases should be transferred to
Albany, New York. He does not, however, explain why this
or any other factor weighs in favor of changing venue,
especially at this late stage where the confirmation
hearing is scheduled for October 8, 2013. Consequently,
the motion to transfer venue is denied.
4. Judge Bernstein said Mercer appears to be motivated by a
desire to litigate his claim in state court, a theme that
runs through many of his motions; and any issue regarding
his right to litigate in state court is premature.
5. According to Judge Bernstein, because he is not aware of
any contested matter or adversary proceeding in the
Bankruptcy Court presently involving Mercer's state court
claim, there is nothing from which the Court can abstain
in favor of or remand to the state court. The judge noted
that Mercer has a defamation claim. Assuming he has
satisfied the procedural requirements for filing a claim
and the Debtors object, the dispute may have to be decided
by the District Court if it is determined that his
defamation claim is a "personal injury tort" claim under
28 U.S.C. Sec. 157(b)(5) (2006). Alternatively, Mercer
can ask the Court at that time to abstain from deciding
the claim objection in favor of the state court lawsuit,
and seek relief from the stay to effect any order of
abstention. Finally, if the Debtors remove the state court
action, he can move to remand it back to state court. For
the reasons stated, however, the abstention (and remand)
request is premature, and accordingly, is denied without
prejudice.
About Journal Register
Journal Register Company -- http://www.JournalRegister.com/-- was
the publisher of the New Haven Register and other papers in 10
states, including Philadelphia, Detroit and Cleveland, and in
upstate New York. JRC was managed by Digital First Media and is
affiliated with MediaNews Group, Inc., the nation's second largest
newspaper company as measured by circulation.
Journal Register, along with its affiliates, first filed for
Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No.
09-10769) on Feb. 21, 2009. Attorneys at Willkie Farr & Gallagher
LLP, served as counsel to the Debtors. Attorneys at Otterbourg,
Steindler, Houston & Rosen, P.C., represented the official
committee of unsecured creditors. Journal Register emerged from
Chapter 11 protection under the terms of a pre-negotiated plan.
Journal Register exited the 2009 restructuring with $225 million
in debt and with a legacy cost structure, which includes leases,
defined benefit pensions and other liabilities that have become
unsustainable and threatened the Company's efforts for a
successful digital transformation. Journal Register managed to
reduce the debt by 28% with the Company servicing in excess of
$160 million of debt.
Journal Register returned to bankruptcy (Bankr. S.D.N.Y. Lead Case
No. 12-13774) on Sept. 5, 2012, to sell the business to 21st CMH
Acquisition Co., an affiliate of funds managed by Alden Global
Capital LLC. The deal was subject to higher and better offers.
Alden Global is the holder of two terms loans totaling $152.3
million. Alden Global acquired the stock and the term loans from
lenders in Journal Register's prior bankruptcy.
Journal Register disclosed total assets of $235 million and
liabilities totaling $268.6 million as of July 29, 2012. This
includes $13.2 million owing on a revolving credit to Wells Fargo
Bank NA.
Bankruptcy Judge Stuart M. Bernstein presides over the 2012 case.
Neil E. Herman, Esq., Rachel Jaffe Mauceri, Esq., and Patrick D.
Fleming, Esq., at Morgan, Lewis & Bockius, LLP; and Michael R.
Nestor, Esq., Kenneth J. Enos, Esq., and Andrew L. Magaziner,
Esq., at Young Conaway Stargatt & Taylor LLP, serve as the 2012
Debtors' counsel. SSG Capital Advisors, LLC, serves as financial
advisors. American Legal Claims Services LLC acts as claims
agent. The petition was signed by William Higginson, executive
vice president of operations.
Otterbourg, Steindler, Houston & Rosen, P.C., represents Wells
Fargo. Akin, Gump, Strauss, Hauer & Feld LLP, represents the
Debtors' Tranche A Lenders and Tranche B Lenders. Emmet, Marvin &
Martin LLP, serves as counsel to Wells Fargo, in its capacity as
Tranche A Agent and the Tranche B Agent.
The Official Committee of Unsecured Creditors appointed in the
case has retained Lowenstein Sandler PC as counsel and FTI
Consulting, Inc. as financial advisor.
The Journal Register bankruptcy has been renamed Pulp Finish I
Co., after the estate sold the newspaper business to lender and
owner Alden Global Capital Ltd., mostly in exchange for $114.15
million in secured debt and $6 million cash. After debts with
higher priority are paid, what's left from the cash and a $630,000
tax refund represents most of unsecured creditors' recovery.
There were no bids to compete with Alden's offer. Alden paid off
financing for the bankruptcy and assumed up to $22.8 million in
liabilities, thus taking care of most trade suppliers who
otherwise would have ended up as unsecured creditors. In
addition, the lenders waived their deficiency claims, so
recoveries by unsecured creditors won't be diluted.
On July 2, 2013, the Debtors filed a Joint Plan of Liquidation.
The Court approved the Disclosure Statement on Aug. 29.
KEYWELL LLC: Can Continue to Operate Using Cash
-----------------------------------------------
Keywell L.L.C. obtained interim authority from the U.S. Bankruptcy
Court for the Northern District of Illinois to use the cash
collateral of NewKey Group, LLC, and NewKey Group II, LLC, until
the final hearing on the cash collateral motion scheduled for
Oct. 9, 2013, at 10:00 a.m.
As adequate protection, the prepetition lenders are granted liens
and security interests in and upon the prepetition collateral, any
property that the Debtor acquires after the Petition Date, and any
proceeds generated from that property.
The Debtor is represented by Howard Adelman, Esq., Erich S. Buck,
Esq., and Alexander F. Brougham, Esq., at Adelman & Gettleman,
Ltd., in Chicago, Illinois.
The Lenders are represented by Steven B. Towbin, Esq. --
stowbin@shawfishman.com -- and Gordon E. Gouveia, Esq. --
ggouveia@shawfishman.com -- at Shaw Fishman Glantz & Towbin LLC,
in Chicago, Illinois.
Keywell L.L.C. filed a Chapter 11 petition (Bankr. N.D. Ill. Case
No. 13-37603) on Sept. 24, 2013. Mark Lozier signed the petition
as president and CEO. The Debtor estimated assets and debts of at
least $10 million. Adelman & Gettleman Ltd. serves as the
Debtor's counsel. Judge Eugene R. Wedoff presides over the case.
KEYWELL LLC: Seeks to Sell Assets, Proposes Dec. Auction
--------------------------------------------------------
Keywell L.L.C. seeks authority from the U.S. Bankruptcy Court for
the Northern District of Illinois, Eastern Division, to approve
the sale of substantially all of its assets to Cronimet Holdings,
Inc., for $12,500,000, in cash, plus the value of contingent
payments calculated as 30% of EBITDA generated solely from the
toll processing business performed for Allegheny Technologies,
Inc.
In consideration of Cronimet submitting the asset purchase
agreement and serving as the stalking horse bidder, the APA
requires the Court's approval of (i) a break-up fee equal to
$500,000 in the event the Court approves a higher and better offer
as a result of an auction, and (ii) bid protection in the
additional amount of $50,000.
In order to maximize the value of the Debtor's assets, the Debtor
asks the Court to approve bidding procedures governing the sale of
its assets. Qualified bids for the Debtor's assets must be
submitted on or before Nov. 20, 2013. The Debtor proposes to
conduct an auction on Dec. 2, at 10:00 a.m. (Central), and proceed
to a sale hearing on Dec. 4.
A hearing will be held on Oct. 16, 2013, at 9:30 a.m., for the
Court to consider approval of the bidding procedures motion.
The Debtor is represented by Howard L. Adelman, Esq., Erich S.
Buck, Esq., Alexander F. Brougham, Esq., at Adelman & Gettleman,
Ltd., in Chicago, Illinois. The Purchaser is represented by
Greenberg Traurig, P.A.
Keywell L.L.C. filed a Chapter 11 petition (Bankr. N.D. Ill. Case
No. 13-37603) on Sept. 24, 2013. Mark Lozier signed the petition
as president and CEO. The Debtor estimated assets and debts of at
least $10 million. Adelman & Gettleman Ltd. serves as the
Debtor's counsel. Judge Eugene R. Wedoff presides over the case.
KIDSPEACE CORP: Bryan Cave Okayed as Ombudsman's Counsel
--------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Pennsylvania
authorized Eric Huebscher, the patient care ombudsman in the cases
of KidsPeace Corp., to employ Bryan Cave LLP as his counsel.
As reported in the Troubled Company Reporter on Aug. 7, 2013, the
ombudsman said Bryan Cave will help him represent the rights of
the Debtors' patients. The ombudsman intends to retain these
Bryan Cave professionals at these hourly rates:
Stephanie Wickouski, Esq. $780 per hour
Eric Rieder, Esq. $850 per hour
Thomas J. Schell, Esq. $635 per hour
Sheryl Feutz-Harter, Esq. $375 per hour
Jamilia Justine Willis, Esq. $450 per hour
Ms. Wickouski, a partner at Bryan Cave LLP, in New York, assures
the Court that her firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the ombudsman.
About KidsPeace Corp.
KidsPeace Corp., a provider of behavioral services for children,
filed a petition for Chapter 11 reorganization (Bankr. E.D. Pa.
Case No. 13-14508) on May 21, 2013, in Reading, Pennsylvania.
KidsPeace operates a 96-bed pediatric psychiatric hospital in
Orefield, Pennsylvania. Assets are $86.7 million, and debt on the
books is $158.6 million, according to a court filing.
The Debtor, which sought bankruptcy protection with eight
affiliates, tapped Norris McLaughlin & Marcus, P.A. as counsel;
EisnerAmper LLP as financial advisor, and Rust Omni as claims and
notice agent.
Assets total $158,587,999 at the end of 2012. The Debtors owe
approximately $56,206,821 in bond debt, and they have been told
that their pension liability is allegedly about $100,000,000 of
which the Debtors currently reflect $83,049,412 on their books.
KidsPeace sought Chapter 11 (i) as a means to implement a
negotiated restructuring of bond debt currently aggregating
approximately $51,310,000 plus accrued interest to a reduced
amount of approximately $24 million in new 30-year bonds with
interest at 7.5 percent, and (ii) to continue on-going
negotiations with the Pension Benefit Guaranty Corporation in
hopes of reducing the PBGC asserted obligation of $100+ million to
an amount that the Debtors can reasonably expect to satisfy.
The Debtor disclosed $157,930,467 in assets and $168,768,207 in
liabilities as of the Chapter 11 filing.
Since March 2012, MK has been exploring possible affiliation or
acquisition opportunities; however, no offer of an affiliation or
acquisition has been presented to the Debtors.
Gemino Healthcare Finance, LLC, the prepetition revolving lender,
is represented by James S. Rankin, Jr., Esq., at Parker, Hudson,
Rainer & Dobbs LLP; and Weir & Partners LLP's Walter Weir, Jr.,
Esq.
UMB Bank, N.A., on behalf of bondholders, Performance Food Group
d/b/a AFI, W.B. Mason Co., Inc., Pension Benefit Guaranty
Corporation, and Teresa Laudenslager were appointed to an official
committee of unsecured creditors in the Debtors' cases. The
Official Committee of Unsecured Creditors is represented by
Fitzpatrcik Lentz & Bubba, P.C., and Lowenstein Sandler LLP as
counsel. FTI Consulting, Inc. serves as the panel's financial
advisor.
Eric Huebscher has been appointed patient care ombudsman in the
case. The PCO tapped Bryan Cave LLP as his counsel.
LE-NATURE INC: Trustee Slams Firm as Malpractice Tiff Reignites
---------------------------------------------------------------
Law360 reported that the liquidating trustee of Le-Nature's Inc.
lodged a filing on Oct. 3 with exhaustive details of alleged
errors and misrepresentations committed by K&L Gates LLP as it
failed to uncover financial fraud in its internal investigation of
the collapsed beverage company, as the $500 million malpractice
suit against the firm re-emerged in Pennsylvania state court.
According to the report, the Trustee filed a more than 125-page
response to the firm's new matter and counterclaims, which were
filed under seal in July.
About Le-Nature's Inc.
Headquartered in Latrobe, Pennsylvania, Le-Nature's Inc. --
http://www.le-natures.com/-- made bottled waters, teas, juices
and nutritional drinks. Its brands included Kettle Brewed Ice
Teas, Dazzler fruit juice drinks and lemonade, and AquaAde
vitamin-enriched water.
On Oct. 27, 2006, the Delaware Chancery Court appointed Kroll
Zolfo Cooper, Inc., as custodian of Le-Nature's, placing it in
charge of management and operations. Within several days, Kroll
uncovered massive fraud at Le-Nature's. On Nov. 1, 2006, Steven
G. Panagos, a Kroll managing director, filed an affidavit with the
Delaware Chancery Court setting forth the evidence of the
financial fraud he had discovered at Le-Nature's.
Four unsecured creditors of Le-Nature's filed an involuntary
Chapter 7 petition against the Company (Bankr. W.D. Pa. Case No.
06-25454) on Nov. 1, 2006. Kroll converted the proceedings from
Chapter 7 to Chapter 11.
On Nov. 6, 2006, two of Le-Nature's subsidiaries, Le-Nature's
Holdings Inc., and Tea Systems International Inc., filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code.
The Debtors' cases were jointly administered. The Debtors'
schedules filed with the Court showed $40 million in total assets
and $450 million in total liabilities.
Douglas Anthony Campbell, Esq., Ronald B. Roteman, Esq., and
Stanley Edward Levine, Esq., at Campbell & Levine, LLC,
represented the Debtors in their restructuring efforts. The Court
appointed R. Todd Neilson as Chapter 11 Trustee. Dean Z. Ziehl,
Esq., Richard M. Pachulski, Esq., Stan Goldich, Esq., Ilan D.
Scharf, Esq., and Debra Grassgreen, Esq., at Pachulski, Stang,
Ziehl, Young, Jones & Weintraub LLP, represented the Chapter 11
Trustee. David K. Rudov, Esq., at Rudov & Stein, and S. Jason
Teele, Esq., and Thomas A. Pitta, Esq., at Lowenstein Sandler PC,
represented the Official Committee of Unsecured Creditors. Edward
S. Weisfelner, Esq., Robert J. Stark, Esq., and Andrew Dash, Esq.,
at Brown Rudnick Berlack Israels LLP, and James G. McLean, Esq.,
at Manion McDonough & Lucas, represented the Ad Hoc Committee of
Secured Lenders. Thomas Moers Mayer, Esq., and Matthew J.
Williams, Esq. at Kramer Levin Naftalis & Frankel LLP, represented
the Ad Hoc Committee of Senior Subordinated Noteholders.
On July 8, 2008, the Bankruptcy Court issued an order confirming
the liquidation plan for Le-Nature's.
LEVIS TOWN SQUARE: Orleans Building Auction Set for Oct. 30
-----------------------------------------------------------
The Orleans Building at Levis Commons in Perrysburg, in suburban
Toledo, Ohio, will be sold by auction on Oct. 30, 2013, by order
of the Wood County Court of Common Pleas in a receivership case,
subject to a published reserve price of $3,430,758.
Chartwell Group LLC and Chartwell Auctions LLC --
http://www.ChartwellAuctions.com-- will oversee the auction.
Michael Berland is the court-appointed auctioneer.
On-site inspection dates are scheduled for Oct. 8, 15, 22 and 29.
The property consists of roughly 61,500 sq. ft. of retail and
office spaces with 8.95 acres for additional development. The
property was built in 2007-2008 and current tenants include Fath
Fish Blue Comedy Club, St. Julian's Fitness Club, Nagoya
Restaurant, WTOL TV, and Suhara Cigar Bar.
The Huntington National Bank filed the receivership case, Case No.
2010CV1031, against Levis Town Square Land LLC. Judge Reeve W.
Kelsey oversees the case.
The Bank is represented by:
Komlavi Atsou, Esq.
David D. Black, Esq.
John J. Hunter, Jr., Esq.
Jennifer A. Swiech, Esq.
Daniel C. Wolters, Esq.
CAVITCH FAMILO & DURKIN CO. LPA
Twentieth Floor, 1300 East 9th St.
Cleveland, OH 44114
E-mail: katsou@cavitch.com
dblack@cavitch.com
dwolters@cavitch.com
Levis Town Square Land is represented by:
Ralph Denune III, Esq.
LYDY & MOAN LTD.
4930 Holland-Sylvania Road
Sylvania, OH 43560
Tel: 419-882-7100
Fax: 419-882-7201
E-mail: rdenune@lydymoan.com
LOFINO PROPERTIES: Files for Bankruptcy Protection in Ohio
----------------------------------------------------------
Michael Bathon, substituting for Bloomberg bankruptcy columnist
Bill Rochelle, reports that Lofino Properties LLC, which owns
retail stores, sought bankruptcy protection from creditors without
citing a reason.
According to the report, the company, based in Dayton, Ohio,
listed assets of about $19.9 million and debt of about $13.2
million, in Chapter 11 documents filed Oct. 4 in U.S. Bankruptcy
Court in its hometown. The company has about $17 million in real
estate and owed about $12.6 million in secured debt according to
its bankruptcy filing.
The report notes that the company owes First Financial Bank NA
$5.8 million, secured by stores in a Dayton shopping center and
owes Glincy Real Estate Holdings LLC about $6.8 million on two
mortgages secured by retail grocery stores, court papers show.
The company made about $2.3 million in 2011, which dropped to
about $2.15 million in 2012, and has made $945,629 so far this
year.
The report discloses that an affiliate Lofino's Colorado Foods
Inc. sought bankruptcy protection in October 2012.
The case is In re Lofino Properties LLC, 13-bk-34099, U.S.
Bankruptcy Court, Southern District of Ohio (Dayton).
LONGVIEW POWER: Sec. 341 Creditors' Meeting Set for Nov. 6
----------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of creditors
pursuant to 11 U.S.C. 341(a) in the Chapter 11 case of Longview
Power LLC, on Nov. 6, 2013, at 10:30 a.m. The meeting will be
held at J. Caleb Boggs Federal Building, Room 5209, 844 King
Street, in Wilmington, Delaware.
Longview Power LLC is a special purpose entity created to
construct, own, and operate a 695 MW supercritical pulverized
coal-fired power plant located in Maidsville, West Virginia, just
south of the Pennsylvania border and approximately 70 miles south
of Pittsburgh. The project is owned 92% by First Reserve
Corporation (First Reserve or sponsor), a private equity firm
specializing in energy industry investments, through its affiliate
GenPower Holdings (Delaware), L.P., and 8% by minority interests.
Longview Power, LLC, filed a Chapter 11 (Bank. D. Del. Lead Case.
13-12211) on Aug. 30, 2013. The petitions were signed by Jeffery
L. Keffer, the Company's chief executive officer, president,
treasurer and secretary. The Debtor estimated assets and debts of
more than $1 billion. Judge Brendan Linehan Shannon presides over
the case. Kirkland & Ellis LLP and Richards, Layton & Finger,
P.A., serve as the Debtors' counsel. Lazard Freres & Company LLC
acts as the Debtors' investment bankers. Alvarez & Marsal North
America, LLC, is the Debtors' restructuring advisors. Ernst &
Young serves as the Debtors' accountants. The Debtors' claims
agent is Donlin, Recano & Co. Inc.
Roberta A. DeAngelis, U.S. Trustee for Region 3, disclosed that as
of September 11, 2013, a committee of unsecured creditors has not
been appointed in the case due to insufficient response to the
U.S. Trustee's communication/contact for service on the committee.
M&T CAPITAL: Fitch Affirms 'BB+' Preferred Stock Rating
-------------------------------------------------------
Following its large regional bank peer review, Fitch Ratings has
revised the Rating Outlook to Positive from Stable on M&T Bank
Corporation's (MTB) Issuer Default Ratings (IDRs). Please refer to
the release titled 'Fitch Takes Rating Actions on Its Large
Regional Bank Group Following Peer Review' dated Oct. 8, 2013, for
a discussion of rating actions taken on the large regional banks.
Key Rating Drivers - IDR & VR
Fitch has affirmed MTB's ratings and revised the Outlook to
Positive from Stable. Fitch recognizes that the company has
consistently delivered solid financial measures and credit
performance during a difficult operating environment.
Additionally, the company's solid franchise, veteran management
team, and good revenue diversification are considered rating
strengths. Offsetting these positives, MTB's capital levels tend
to be lower than those of its peers. However, in Fitch's view, the
company's strong equity generation, good asset quality performance
through various credit cycles, solid reserves when compared to net
charge-offs (NCOs) and moderate dividend payout help offset the
capital position. Further, MTB has continued to build its capital
position from historical levels. As of 2Q'13, TCE and Tier 1
Common estimated (under Basel III) stood at 7.61% and 8.10%,
respectively
MTB's earnings profile is considered to be one of the strongest of
its peer group. MTB is one of the most consistent performers, as
its earnings measures have seen less volatility than most of its
large regional peers. Additionally, MTB's earnings are considered
to be sustainable given results have not been supported by any
reserve release as the company's provision expense continues to
exceed NCOs.
Credit performance has also been solid, despite the company's
large exposure to commercial real-estate assets. MTB's NCOs and
non-performing assets (NPAs) have outperformed most peers in
various credit cycles, evidence of the strong credit culture of
the company. MTB also reports one of the least volatile NCO
ratios. Additionally, Fitch believes the company's reserve
coverage also provides good support, given its loss history.
Although capital position is considered to be MTB's weak spot,
Fitch acknowledges the company's improved capital ratios from
historical levels, such as TCE, leverage and Tier 1 Common ratios.
Further, Fitch believes the company's strong and consistent
earnings and credit profile through various credit cycles affords
the leaner capital position.
Rating Sensitivities - IDR & VR
Positive rating momentum could ensue should MTB successfully
remediate its current BSA/AML deficiencies without any regulatory
violations that subsequently lead to significant fines that
materially impact the company's balance sheet and/or restrictions
to its business model. Fitch would expect MTB's capital position
to continue to build while maintaining strong earnings, reserves
and credit performance.
Conversely, negative rating drivers would include a more
aggressive approach to capital management, and/or announcing an
acquisition in the near term given the sizeable Hudson City
transaction. Additionally, unexpected changes to current business
strategy or key executive management would also be viewed
negatively.
Fitch has affirmed the following ratings and revised the Outlook
to Positive from Stable:
M&T Bank Corporation
-- Long-term IDR at 'A-'; Outlook Positive;
-- Short-term IDR at 'F1';
-- Viability at 'a-';
-- Preferred stock at 'BB';
-- Support at '5'
-- Support floor at 'NF'.
Manufacturers and Traders Trust Co
-- Long-term IDR at 'A-'; Outlook Positive;
-- Short-term IDR at 'F1';
-- Viability at 'a-';
-- Senior unsecured debt at 'A-';
-- Subordinated debt at 'BBB+'
-- Long-term deposits at 'A';
-- Short-term deposits at 'F1';
-- Support at '5';
-- Support floor at 'NF'.
Wilmington Trust, N.A. (formerly M&T Bank, NA)
-- Long-term IDR at 'A-'; Outlook Positive;
-- Short-term IDR at 'F1';
-- Viability at 'a-';
-- Long-term deposits at 'A';
-- Short-term deposits at 'F1';
-- Support at '5';
-- Support floor at 'NF'.
Wilmington Trust Corporation
-- Long-term IDR at 'A-'; Outlook Positive;
-- Subordinated debt at 'BBB+';
-- Short-term IDR at 'F1';
-- Viability at 'a-';
-- Support at '5';
-- Support floor at `NF'.
Wilmington Trust Company
-- Long-term IDR at 'A-'; Outlook Positive
-- Short-term IDR at 'F1';
-- Viability at 'a-';
-- Support at '5';
-- Support floor at 'NF'.
M&T Capital Trust I-IV
-- Preferred stock at 'BB+'.
Provident Bankshares Corp.
-- Preferred stock at 'BB'.
Provident Bank of Maryland
-- Subordinated debt at 'BBB+'.
Provident (MD) Capital Trust I
-- Preferred stock at 'BB+'.
MESSER ENTERPRISES: Case Summary & 20 Top Unsecured Creditors
-------------------------------------------------------------
Debtor: Messer Enterprises, Inc.
PO Box 20328
Amarillo, TX 79114
Case No.: 13-20376
Chapter 11 Petition Date: October 8, 2013
Court: United States Bankruptcy Court
Northern District of Texas (Amarillo)
Judge: Hon. Robert L. Jones
Debtor's Counsel: Patrick Alan Swindell, Esq.
SWINDELL & ASSOCIATES, PC
1105 S. Taylor
Amarillo, TX 79101
Tel: (806)374-7979
Fax: (806)374-1991
Email: amacourt@borenswindell.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Roy Dale Messer, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/txnb13-20376.pdf
MODAL INC: Moody's Cuts CFR to Caa1 & Secured Debt Rating to B2
---------------------------------------------------------------
Moody's Investors Service downgraded Mmodal Inc.'s debt ratings,
including the corporate family rating (CFR) to Caa1 from B3,
senior secured to B2 from B1, and senior unsecured to Caa3 from
Caa2. The ratings outlook is negative.
Ratings Ratioanale:
Moody's expectations for further declines in MModal's revenue and
negative free cash flow, with debt to EBITDA (Moody's adjusted)
above 8 times, are factors that lead to the downgrade. Ongoing
declines in transcription outsourcing services (TOS) volume with
slower than originally expected new technology sales drive Moody's
anticipation of revenue and profit declines, while high interest
and cash restructuring costs will drive negative free cash flow.
Moody's expects some TOS gross margin improvements will lead
EBITDA and profits to decline at a lower rate than revenues.
Liquidity is considered weak. MModal generally holds little cash
and free cash flow is expected to be negative, and Modal has drawn
significantly under its revolving credit.
The negative ratings outlook reflects the weak liquidity, which
limits the flexibility to complete a turn-around of operations, as
well as the ability to invest. The outlook could be stabilized if
Moody's comes to expect revenue and profits to stabilize, and for
Modal to generate positive free cash flow. The ratings could be
lowered if declines in revenues and profits are greater than
expected, or if liquidity deteriorates further.
The following ratings were downgraded (and LGD assessments
revised):
Corporate Family Rating -- Downgraded to Caa1 from B3
Probability of Default Rating -- Downgraded to Caa1-PD from B3-PD
$75 million Senior Secured Revolver due 2017 -- Downgraded to B2
(LGD3, 31%) from B1 (LGD3, 31%)
$440 million Senior Secured Term Loan B due 2019 -- Downgraded to
B2 (LGD3, 31%) from B1 (LGD3, 31%)
$250 million Senior Notes due 2020 -- Downgraded to Caa3 (LGD5,
85%) from Caa2 (LGD5, 85%)
Modal is a provider of TOS and related Automated Speech
Recognition technology serving clinical healthcare institutions
mostly in the U.S. owned by affiliates of One Equity Partners.
Moody's expects 2013 revenues of $415 to $435 million, down from
2012.
MONTREAL MAINE: Will Sell Assets in December
--------------------------------------------
Michael Bathon, substituting for Bloomberg bankruptcy columnist
Bill Rochelle, reports that the U.S. bankruptcy trustee and the
Canadian monitor for Montreal, Maine & Atlantic Railway Ltd., the
operator of a runaway oil train that exploded and killed 47 people
in a Quebec town in July, have agreed on a sale process and intend
on holding an auction in December to sell its assets.
According to the report, expressions of interest must be received
by Oct. 31, according to court documents filed in U.S. Bankruptcy
Court in Bangor, Maine. Gordian Group LLC was hired as the
investment bank to help conduct the sale. The company would
select a stalking-horse bidder, to set a floor for other potential
buyers to try to top, and obtain approval of the guidelines that
would govern the sale process from the courts by Nov. 15, court
papers show.
The report notes that bidders wouldn't have to make offers for all
of the company's assets and would be able to make an offer on
specific assets. A Dec. 13 auction would be held to determine the
highest and best offer for the company's assets if the requested
sale process is approved. A Dec. 16 hearing would be held to seek
court approval to sell the assets to the auction winner or winners
from both the U.S. and Canadian courts.
About Montreal Maine
Montreal, Maine & Atlantic Railway Ltd., the railway company that
operated the train that derailed and exploded in July 2013,
killing 47 people and destroying part of Lac-Megantic, Quebec,
sought bankruptcy protection in U.S. Bankruptcy Court in Bangor,
Maine (Case No. 13-10670) on Aug. 7, 2013, with the aim of selling
its business. Its Canadian counterpart, Montreal, Maine &
Atlantic Canada Co., meanwhile, filed for protection from
creditors in Superior Court of Quebec in Montreal.
Robert J. Keach, Esq., at Bernstein, Shur, Sawyer, and Nelson,
P.A., has been named as chapter 11 trustee. His firm serves as
his chapter 11 bankruptcy counsel. Development Specialists, Inc.,
serves as his financial advisor.
U.S. Bankruptcy Judge Louis H. Kornreich has been assigned to the
U.S. case. The Maine law firm of Verrill Dana serves as counsel
to MM&A.
Justice Martin Castonguay oversees the case in Canada.
The Canadian Transportation Agency suspended the carrier's
operating certificate after the accident, due to insufficient
liability coverage.
The town of Lac-Megantic, Quebec, is seeking financial aid to
restore the gutted community and a civil complaint alleges a
failure to take steps to prevent a derailment.
The Hermon, Maine-based carrier is still working to create a
formal claims process for the families of the victims and other
claims holders. The carrier will present a formal process to the
court for approval by Nov. 30, according to the filings, Bloomberg
News reported.
N&H INVESTMENTS: Case Summary & 3 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: N&H Investments LLC
2276 Senter Road
San Jose, CA 95112
Case No.: 13-55330
Chapter 11 Petition Date: October 8, 2013
Court: United States Bankruptcy Court
Northern District of California (San Jose)
Judge: Hon. Arthur S. Weissbrodt
Debtor's Counsel: Dan Q. Do, Esq.
EFFICIO LAW GROUP
111 W Saint John St. #888
San Jose, CA 95113
Tel: (408) 292-5505
Email: dan.do@dolawgroup.com
Total Assets: $2.10 million
Total Liabilities: $2.21 million
The petition was signed by Hung Nguyen, manager.
A list of the Debtor's three largest unsecured creditors is
available for free at http://bankrupt.com/misc/canb13-55330.pdf
NAPAM INVESTMENTS: Case Summary & 3 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: NAPAM Investments, Inc.
7200 Jersey Ridge Road
Davenport, IA 52807
Case No.: 13-02805
Chapter 11 Petition Date: October 8, 2013
Court: United States Bankruptcy Court
Southern District of Iowa (Davenport)
Judge: Hon. Lee M. Jackwig
Debtor's Counsel: Dale G Haake, Esq.
1000 36th Ave
PO Box 950
Moline, IL 61266-0950
Tel: (309) 797-3000
Fax: (309) 797-3330
Email: dhaake@katzlawfirm.com
Total Assets: $1.55 million
Total Liabilities: $1.04 million
The petition was signed by Narinder Kumar, president.
A list of the Debtor's three largest unsecured creditors is
available for free at http://bankrupt.com/misc/iasb13-2805.pdf
NEW YORK SKYLINE: SDNY Court Won't Stay Injunction Order
--------------------------------------------------------
Bankruptcy Judge Stuart M. Bernstein tossed the request of New
York Skyline for a stay pending appeal of the Court's permanent
injunction restraining it from using commissioned sales
representatives to sell tickets to its simulated helicopter ride
near the footprint of the Empire State Building.
The case is, NEW YORK SKYLINE, INC., Plaintiff, v. EMPIRE STATE
BUILDING COMPANY L.L.C., EMPIRE STATE BUILDING, INC. and EMPIRE
STATE BUILDING ASSOCIATES L.L.C. Defendants, Adv. Proc. No.
09-01145 (Bankr. S.D.N.Y.).
A copy of the Court's Oct. 2, 2013 Memorandum Decision and Order
is available at http://is.gd/5NA06Cfrom Leagle.com.
Francine Nisim, Esq. -- fnisim@sterntannenbaum.com -- Karen S.
Frieman, Esq., and David S. Tannenbaum, Esq. --
dtannenbaum@sterntannenbaum.com -- at STERN TANNENBAUM & BELL LLP,
in New York, represent Empire State Building Company L.L.C.,
Empire State Building, Inc., and Empire State Building Associates
L.L.C.
Charles A. Stewart, III, Esq. -- cstewart@somlaw.com -- and Elin
M. Frey, Esq., of STEWART OCCHIPINTI, LLP, in New York, represent
New York Skyline, Inc.
Manhattan-based New York Skyline, Inc. -- http://www.skyride.com/
-- operates the NYSKYRIDE attraction at the Empire State building.
The Company sought Chapter 11 protection (Bankr. S.D.N.Y. Case No.
09-10181) on Jan. 12, 2009. Mark A. Frankel, Esq., at Backenroth
Frankel & Krinsky, LLP, assists the company in its restructuring
efforts. The Company estimated its assets and debts between
$10 million and $50 million at the time of the filing
NIRVANIX INC: Wins Court Approval of $1-Mil. Bankruptcy Loan
------------------------------------------------------------
Michael Bathon, substituting for Bloomberg bankruptcy columnist
Bill Rochelle, reports that Nirvanix Inc., a so-called cloud-based
data storage company, won court approval to borrow about $1.1
million to help fund operations while in bankruptcy.
According to the report, U.S. Bankruptcy Judge Brendan Linehan
Shannon approved the company request at an Oct. 4 hearing,
according to court documents. The judge will consider giving
final approval of the bankruptcy loan at an Oct. 23 hearing. The
financing is necessary to "continue in business long enough to
capitalize on the prior indications of interest received from
strategic buyers with the goal of selling its assets," under a
court approved auction process, Nirvanix said in court papers.
The report notes that the loan will also provide the company
additional time to assist its customers in either returning their
data or alternative cloud-storage providers. "Nirvanix
voluntarily sought Chapter 11 bankruptcy protection in order to
pursue all alternatives to maximize value for its creditors while
continuing its efforts to provide the best possible transition for
customers," the company said in a message on its website.
The report relates that it said it would assist customers in
either returning their data or transferring it to similar
platforms offered by International Business Machines Corp., Google
Inc., Microsoft Corp. and Amazon.com Inc. The San Diego-based
company listed between $10 million and $50 million each in both
assets and debt, according to Chapter 11 documents filed Oct. 1 in
Wilmington, Delaware.
The report relays that the company, calling itself "the leader in
enterprise cloud storage" offers cloud storage solutions designed
specifically for customers with security, reliability and
redundancy requirements, according to company statements. Storage
products are custom built for the largest media & entertainment
companies, financial institutions and technology companies,
according to the company.
The report discloses that Khosla Ventures IV LP, a venture capital
firm focused on technology, owns more than 70 percent of both the
Series 1 preferred stock and the junior preferred stock as well as
15.5 percent of the common stock, court papers show. A venture
capital unit of Intel Corp. owns more than 20 percent of the
common equity, and 17 percent of the Series 1 preferred and about
22 percent of the junior preferred. Valhalla Partners II LP owns
about 25 percent of the common stock and Mission Ventures III LP
owns about 24 percent.
The case is In re Nirvanix Inc., 13-bk-12595, U.S. Bankruptcy
Court, District of Delaware (Wilmington).
NORTHERN BEEF: Creditors Committee Taps O'Keefe as Fin'l. Analysts
------------------------------------------------------------------
The Official Committee of Unsecured Creditors of Northern Beef
Packers Limited Partnership seeks court permission to retain
O'Keefe & Associates Consulting, L.L.C. as its financial analysts,
effective as of August 26, 2013.
The professional services that O'Keefe & Associates will render to
the Committee and its counsel upon request may include, but are
not limited to:
a. Participating in discussions and negotiations with the
management, advisors, and counsel for the Debtor with respect
to various asset sale options;
b. Reviewing, assessing, and commenting upon (i) the asset
disposition strategies proposed by the Debtor and its advisors,
(ii) the entities solicited for possible acquisition of the
Debtor's operations, (iii) the solicitation materials used and
due diligence materials made available, and (iv) certain other
financial and market-based considerations relevant to a bulk
sale of the Debtor's operations;
c. Considering accounting and structural issues in connection with
(i) any proposed sale of the Debtor's assets and (ii) the
formulation implementation of any liquidating plan, including
the establishment of any post-confirmation liquidation trusts;
d. Providing expert testimony in connection with any hearing
before the Court;
e. Reviewing the Debtor's books and records to analyze possible
avoidance actions; and
f. Providing other accounting tasks and financial advisory
services as requested by the Committee and agreed by O'Keefe &
Associates.
O'Keefe & Associates' hourly rate structure for the individuals
that might provide services on the case are:
Partner or Managing Director $350 to $400
Dr. Raymond Hunter (Staff Consultant) $375
Senior Consultant $250 to $300
Associate Consultant $220 to $250
Paraprofessional $100
The primary individuals working on this engagement for O'Keefe and
Associates will be Tyler Mayoras, Raymond Hunter, Ph.D, and Matt
Thiede.
Mr. Mayoras assures the Court that his firm does not represent any
other entity having an adverse interest in connection with the
Case, within the meaning of Bankruptcy Code Section 1103(b).
Counsel for the Creditors Committee may be reached at:
Steve Jakubowski, Esq.
ROBBINS, SALOMON & PATT, LTD.
180 North LaSalle Street, Suite 3300
Chicago, IL 60601
Tel: (312) 456-0191
Fax: (312) 782-6690
E-mail: sjakubowski@rsplaw.com
- and -
Patrick T. Dougherty, Esq.
DOUGHERTY & DOUGHERTY, LLP
PO Box 2376
Sioux Falls, SD 57101-2376
Tel: (605) 335-8586
Fax: (605) 331-2519
E-mail: pat@ptdlawfirm.com
U.S. Trustee Objects
Daniel M. McDermott, United States Trustee for Region 12, asks the
Court to deny the Committee's request for nunc pro tunc employment
of O'Keefe effective August 26, 2013, saying the Application does
not set forth any basis by which the Court could determine that
extraordinary circumstances exist which would support granting
O'Keefe's retroactive employment.
"Absent the establishment of extraordinary circumstances O'Keefe's
employment should be approved only as of the date of the filing of
the Application," says Mr. McDermott.
The document is signed by:
James L. Snyder
Assistant United States Trustee
ID# IS9999967
210 Walnut Street, Room 793
Des Moines, IA 50309-2108
Tel: (515) 284-4982
Fax: 284-4986
E-mail: James.L.Snyder@usdoj.gov
Committee Responds
The Committee tells the Court that it concurs with the U.S.
Trustee that the Application fails to explain the circumstances
justifying retroactive employment and that "simple neglect is
insufficient to excuse non-compliance" with 11 U.S.C. Section 327.
However, the Committee explains, the exigent circumstances it
faced at the outset of the case and other factors amply justify
the short delay in filing the Application, satisfy the standards
for retroactive approval of an employment application articulated
by the Eighth Circuit, the Seventh Circuit, and the Third Circuit,
and are consistent with practices (both formal and informal) in
other jurisdictions around the country.
The primary circumstances leading to the slight delay in the
filing of the Application include:
a. O'Keefe's services were immediately required by the Committee
in order to enable the Committee to reach an informed decision
regarding the appropriateness of the proposed expedited sale
process outside of a plan of reorganization and the structuring
of a fair DIP financing arrangement.
b. The US Trustee had filed a motion to convert the case to
Chapter 7 the day after O'Keefe had been retained;
c. Following the decision to retain O'Keefe at its meeting of
August 26, 2013, the Committee received from O'Keefe a
standard form engagement letter that contained a few provisions
that were of concern to the Committee (such as regarding
indemnities and other provisions that the Court noted were of
concern in connection with the Lincoln retention application).
d. Committee counsel advised the Court at the interim DIP hearing
that the Application would be filed if the Court entered an
order approving the proposed DIP financing stipulation. Once
the interim DIP order was entered, the Committee worked to file
the Application expeditiously, and in fact filed the
Application exactly one week after entry of the interim DIP
order.
The Committee says there is no prejudice from approving the
retention retroactively. The total consulting time rendered by
O'Keefe through the date of the Application totaled no more
than approximately 15 hours and so will not cost the estate more
than about $5,000, it added.
About Northern Beef Packers Limited Partnership
Northern Beef Packers Limited Partnership, which operates a beef
processing facility that opened in October 2012, filed for
Chapter 11 relief (Bankr. D.S.D. Case No. 13-10118) on July 19,
2013. Karl Wagner signed the petition as chief financial officer.
Judge Charles L. Nail, Jr., presides over the case. The Debtor
estimated assets of at least $50 million and debts of at least
$10 million. James M. Cremer, Esq., at Bantz, Gosch, & Cremer,
L.L.C., serves at the Debtor's counsel. Steven H. Silton, Esq.,
at Cozen O'Connor serves as co-counsel. Lincoln Partners Advisors
LLC serves as financial advisors.
The U.S. Trustee has appointed five members to the Official
Committee of Unsecured Creditors in the case. Robbins, Salomon &
Patt, Ltd. serves as it lead counsel. Patrick T. Dougherty serves
as its local counsel.
White Oak Global Advisors, LLC, is providing postpetition
financing. White Oak has extended a $47 million credit bid for
the Debtor's assets. White Oak is the Debtor's largest secured
creditor as of July 19, 2013, the petition date, with a disputed
claim of over $64 million.
PENTON BUSINESS: Moody's Hikes CFR to B3 & Affirms B1 Debt Rating
-----------------------------------------------------------------
Moody's Investors Service has upgraded Penton Business Media
Holdings, Inc.'s corporate family rating (CFR) to B3 from Caa1 and
the probability of default rating (PDR) to B3-PD following the
completion of its refinancing transaction. This action concludes
the review for upgrade initiated on September 16.
Moody's affirmed the B1 (LGD3-32%) ratings on the new $510 million
senior secured 1st lien credit facilities, which consist of a $460
million term loan and $50 million revolver and the Caa2 (LGD5-84%)
rating on the $205 million 2nd lien term loan. The Caa1 rating on
the existing revolver and term loan have been withdrawn due to
repayment. The rating outlook is stable.
The new debt was jointly borrowed by two subsidiaries of the
company, Penton Media, Inc and Penton Business Media, Inc. Moody's
will withdraw all existing ratings at Penton Business Media
Holdings, Inc and has moved the corporate family rating and the
probability of default rating to the new Guarantor, Penton
Operating Holdings, Inc. (Penton).
The upgrade of the corporate family rating to B3 reflects the
completion of the refinancing transaction that addressed the
August 2014 term loan maturity in addition to Penton's improvement
in operating performance aided by two recent acquisitions that
were funded in part with free cash flow. Leverage has declined
from almost 9x at the end of 2011 to under 7x pro-forma for the
recent acquisition.
Moody's has taken the following rating actions:
Issuer: Penton Operating Holdings, Inc
Assignments
Corporate Family Rating, B3
Probability of Default Rating, B3-PD
Outlook, Stable
Issuer: Penton Business Media, Inc
Affirmed
$50 million revolver maturing 2018 affirmed at B1 (LGD3-32%)
$460 million 1st lien term loan maturing 2019 affirmed at B1
(LGD3-32%)
$205 million 2nd lien term loan maturing in 2020 affirmed at Caa2
(LGD5-84%)
Withdrawn:
$40 million revolver maturing August 2014, withdrawn at Caa1
(LGD3-48%)
$625 million first lien term loan maturing August 2014, withdrawn
at Caa1 (LGD3-48%)
Issuer: Penton Business Media Holdings, Inc.
Corporate Family Rating, upgraded to B3 from Caa1, to be
withdrawn near term
Probability of Default Rating, upgraded to B3-PD from Caa1-PD,
to be withdrawn near term
Outlook, Stable, to be withdrawn near term
Ratings Rationale:
Penton's B3 CFR reflects high leverage of almost 7x (including
Moody's standard adjustments) pro-forma for the refinancing and
recent acquisitions as of Q2 2013 and its cyclical business
profile. The ratings also reflect mid to high single digit
declines in revenues in the Print segment, which currently
accounts for approximately 50% of total revenue. However, as the
Print business has lower overall EBITDA margins than its Digital
and Events segments, it accounts for a smaller percentage of
overall EBITDA. The company will need to carefully manage the
transition from Print to Digital going forward which will require
cost cutting at declining print operations while supporting
growing digital and data products.
The rating is supported by the company's improved business mix
between print and digital content, the established position in the
trade show industry, and strong position in the niche verticals
where it operates. The focus on five different industry segments
provides diversification and reduces the sensitivity the company
has to any one industry. Moody's expects Penton's leverage to
decline to approximately 5.5x (Moody's adjusted) by year end 2014
through cost synergies and the increase in business mix coming
from its higher margin Event and Digital business lines compared
to Print. In addition to the leverage improvement from EBITDA
growth, Moody's expects Penton to generate approximately $50
million of free cash flow each year which may be used to fund
future acquisitions.
Moody's anticipates that Penton will have good liquidity over the
next 12 months, supported by strong free cash flow and a partially
drawn $50 million revolver ($20 million drawn at closing). The
term loans are expected to have no financial covenants, except for
a springing net leverage test on the revolver.
The ratings for the debt instruments reflect both the overall
probability of default of Penton, to which Moody's assigns a PDR
of B3-PD, the average family loss given default assessment and the
composition of the debt instruments in the capital structure. The
1st lien credit facilities are rated B1 (LGD3, 32%), two notches
above the CFR given the loss absorption from the Caa2 (LGD5, 84%)
rated 2nd lien debt.
The stable outlook reflects Moody's expectation that Penton will
continue to grow EBITDA and benefit from cost synergies from
recent acquisitions. Future modest sized acquisitions that are
funded with free cash flow would further contribute to EBITDA
growth and lead to additional deleveraging.
The ratings could be upgraded if Penton is able to reduce leverage
well below 5x on a sustained basis while demonstrating positive
revenue growth and good free cash flow. Additionally, a rating
upgrade would be predicated on Penton maintaining stable margins
and good liquidity.
The ratings could be downgraded if the company's revenues decline
materially due to an acceleration of print decline, challenges
growing the digital segment, or due to a weaker than expected
economy such that leverage remains above 6x. A failure to maintain
adequate liquidity could also trigger negative rating pressure.
Penton Business Media, Inc., headquartered in New York, NY, is a
diversified business-to-business media company providing print,
trade show and digital products and services. Penton emerged from
Chapter 11 bankruptcy protection in March 2010. Revenue for the
twelve months ended June 30, 2013 was $316 million.
POINT CENTER: Ch.11 Trustee Won't Pursue Diamond McCarthy Hiring
----------------------------------------------------------------
Howard B. Grobstein, the Chapter 11 trustee of Point Center
Financial, Inc., filed an objection to his own request to employ
Diamond McCarthy LLP as special litigation counsel, and said he is
attempting to locate "competent replacement" counsel as quickly as
possible.
Mr. Grobstein cited inaccuracies in the documents filed by Diamond
McCarthy seeking Court approval of the firm's engagement.
"Diamond McCarthy has placed the Trustee in the position of being
unable to withdraw his own Application (because Diamond McCarthy
filed it and is only willing to amend it consistent with Diamond
McCarthy's desires)," John P. Reitman, Esq., at Landau Gottfried &
Berger LLP, the proposed general counsel for the Chapter 11
trustee, said in court papers.
The Chapter 11 Trustee's objection states that:
-- The Application Diamond McCarthy filed states that the firm
was employed for a "limited purpose and time period". On
Aug. 28, 2013, Diamond McCarthy filed a complaint
commencing the adversary proceeding entitled Howard B.
Grobstein, Chapter 11 Trustree v. Dan J. Harkey, et al.
The Trustee agreed to employ Diamond McCarthy as special
litigation counsel to prosecute that adversary proceeding,
not just a portion of it. Diamond McCarthy did not
informed the Trustee that its intention was to be employed
for a limited purpose or time;
-- While the Trustee executed the application on Sept. 18,
2013, he directed Diamond McCarthy to amend and correct
the application on Sept. 19. Despite that the
application is the Trustee's application and that the
Trustee does not believe it to be accurate, Diamond
McCarthy refused to withdraw or amend the application.
Diamond McCarthy refused to follow its client's direction.
The Trustee's direction to withdraw the application was
given both orally and in writing;
-- The inaccurate statement addressing Diamond McCarthy's
alleged "limited scope" of employment pursuant to Paragraph
"8" was supported by a Declaration of Kathy Bazoian Phelps,
a partner of Diamond McCarthy where she asserted that "The
Trustee and Diamond McCarthy have agreed that the
employment of Diamond McCarthy shall be for the period of
time from Aug. 20, 2013 to Sept. 25, 2013." That
statement, though attested by Ms. Phelps under penalty of
perjury to support the statement in Paragraph "8" of the
application, is not true. Ms. Phelps later claimed that
Paragraph "8" of her declaration had been drafted and
included by her in her own declaration as a result of a
"typographical error";
-- After the Trustee expressed concern about the inaccurate
statement in Paragraph "8" of Ms. Phelp's declaration,
Diamond McCarthy filed a "Notice of Errata" withdrawing the
inaccuracy but not withdrawing the inaccurate description
in Paragraph "8" of the application. The Notice of Errata,
signed by Diamond McCarthy and not filed with the Trustee's
express or implied authority, purports to amend an
application signed by the Trustee;
-- As part of Diamond McCarthy's attempt to withdraw quickly
from the adversary proceeding, Diamond McCarthy, and Ms.
Phelps in particular, threatened the Trustee with
reputational harm if he and his proposed General Counsel
did not act consistent with Diamond McCarthy's desires.
Those threats were both oral and in writing. The Trustee
will not alter his actions in this case, or in any other
case, based on threats by anyone, let alone his own
counsel; and
-- Diamond McCarthy threatened the Trustee's proposed general
counsel with reputational harm as well. The Trustee's
general counsel has attempted to protect the Trustee, and
the bankruptcy estate, from Diamond McCarthy's actions.
The Hon. Theodor Albert of the U.S. Bankruptcy Court for the
Central District of California will hold a hearing on the
Trustee's objection on Oct. 23, 2013, at 10:00 a.m.
About Point Center
Point Center Financial, Inc., a hard money lender, filed a
Chapter 11 petition (Bankr. C.D. Cal. Case No. 13-11495) in Santa
Ana, California, on Feb. 19, 2013. The Debtor disclosed
$109,257,545 in assets and $54,566,116 in liabilities as of the
Chapter 11 filing.
The Company claims to have a long track record of success in
originating and servicing loans from hundreds of investors.
Unfortunately, due to the historic collapse of the economy
beginning in about 2007, the Debtor, no different than many other
similar enterprises in real estate, has fallen on hard times.
From a high of about 130 performing loans with a total combined
face value of over $450 million in 2006, only 8 loans are now
performing. There were a total of only four foreclosed properties
("REOs") as of 2006. In comparison, between 2007 and 2012, there
were 60 foreclosure sales.
The result left the Debtor saddled with large secured liabilities
to PMB, which has a blanket lien on all of the Debtor's assets in
excess of $9 million, secured by the Debtor's primary asset of
loan servicing and management fees received from secured loans and
properties that have been taken back through foreclosure.
The MA Creditors are represented by Mary L. Fickel, Esq., at
Fickel & Davis.
The Official Committee of Unsecured Creditors is represented by
Marshack Hays LLP as counsel.
Howard B. Grobstein has been appointed as Chapter 11 trustee of
the Debtor's estate. John P. Reitman, Esq., and Roy Zur, Esq. --
jreitman@lgbfirm.com and rzur@lgbfirm.com -- at Landau Gottfried &
Berger LLP, serve as general counsel for the Chapter 11 trustee.
PORT HURON FACTORY: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Port Huron Factory Shops, LLC
415 W. 11 Mile Rd.
Madison Heights, MI 48071
Case No.: 13-58594
Chapter 11 Petition Date: October 8, 2013
Court: United States Bankruptcy Court
Eastern District of Michigan (Detroit)
Judge: Hon. Phillip J. Shefferly
Debtor's Counsel: Peter Steven Halabu, Esq.
415 West Eleven Mile
Madison Heights, MI 48071
Tel: (248) 559-5999
Email: peter@halabu.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Lawrence J. Howard, managing member.
The Debtor did not file a list of its largest unsecured creditors
when it filed the petition.
PRIVATE COMMERCIAL: Court Limits Petitioning Creditors' Claims
--------------------------------------------------------------
Bankruptcy Judge Michael G. Williamson in Tampa, Florida, limited
the administrative expense claims sought by three creditors who
sought to place Ulrich Felix Anton Engler and Private Commercial
Office Inc., in bankruptcy, to the fees they incurred through the
date the order for relief was entered for work they did solely
because this case was filed.
The petitioning creditors sued Engler and PCO in state court to
recover money due under a promissory note. During their
investigation in the state court case, the creditors discovered
the Debtors were operating a Ponzi scheme. So the creditors filed
an involuntary Chapter 7 case to put an end to the Ponzi scheme.
And they say the investigation they did before filing the
bankruptcy case was instrumental in the Chapter 7 Trustee
successfully pursuing fraudulent transfer and other claims after
this case was filed.
The Debtors perpetrated a massive Ponzi scheme bilking investors
out of hundreds of millions of dollars. Engler apparently
represented to potential investors that he had sophisticated,
proprietary software enabling him to effectuate trades faster than
other investors, yielding enormously large and sustainable
profits. And he claimed he had a track record of success to prove
it. In actuality, Engler had no such software -- or track record
of success. The only way for Engler to make good on the returns
promised to investors was to acquire funds from new investors at
an exponential rate. Those investors included Klaus Wolfschmidt,
Reinhard Muller, and Anneliese Schmitt.
When Wolfschmidt, Muller, and Schmitt did not receive the promised
returns, they retained Fowler White to pursue legal action against
the Debtors. Immediately after it was retained in October 2007,
Fowler White began investigating potential claims against the
Debtors. It appears from the time records filed with the Court
that Fowler White filed a complaint for damages and injunctive
relief by mid-November 2007. While that case was pending, Fowler
White continued investigating the Debtor's assets. Sometime
during that investigation, Fowler White uncovered the widespread
nature of the Debtors' fraud. By late January 2008, Fowler White
began considering a possible involuntary bankruptcy against the
Debtors.
Over the next three months, Fowler White conducted and analyzed
various legal issues related to the potential involuntary case
against the Debtors. At the same time, it continued with its
state court lawsuit against the Debtors. Eventually, Fowler White
determined an involuntary bankruptcy case was necessary to put an
end to the Ponzi scheme and give creditors some hope of recovering
on their "investments."
On March 31, 2008, Fowler White filed two involuntary bankruptcy
cases -- one against Engler and the other against Private
Commercial Office -- on behalf of their clients. The involuntary
case against Engler was styled: In re Engler, Case No. 9:08-bk-
04360-MGW. The case against Private Commercial Office was styled:
In re Private Commercial Office, Inc., Case No. 9:08-bk-04365-MGW.
The two cases were eventually consolidated.
Two weeks after the bankruptcy filing, Fowler White was approved
as counsel for the petitioning creditors (their clients
Wolfschmidt, Muller, and Schmitt). Neither Engler nor Private
Commercial Office responded to the summons for the involuntary
petition. So the petitioning creditors moved for entry of an order
of relief by default. On April 29, 2008, the Court entered an
order for relief; Robert Tardif was appointed as the Chapter 7
Trustee the following day. Six months later, Fowler White was
approved as special counsel.
From the time this case was filed until Fowler White was retained
as special counsel, the petitioning creditors say they: provided
the Trustee with substantial information they obtained during
their pre-petition investigation; assisted the Trustee in
obtaining the information necessary to prepare the Debtors'
schedules (such as the names and addresses of hundreds of victims
of the Debtors' Ponzi scheme); prepared and filed an application
to have these bankruptcy proceedings recognized in Germany;
provided the Trustee with documents relating to the recovery of
assets; provided the Trustee with information about the Debtors'
associates, bank records, and assets; and assisted the Trustee by
researching the Debtor's assets.
The petitioning creditors apparently incurred $156,944.42 in fees
for work done by Fowler White from the time the firm was initially
retained by the petitioning creditors in October 2007 until the
time it was retained as special counsel by the Trustee in October
2008.
On October 15, 2012, the petitioning creditors filed their fee
application. In their fee application, the petitioning creditors
only sought $102,569.53 in fees and expenses. According to the
petitioning creditors, they voluntarily reduced the fees and
expenses they were seeking by $54,374.89. The Trustee objected to
the fees sought by the petitioning creditors. So the Court
scheduled a final evidentiary hearing on the petitioning
creditors' administrative expense application.
Before the final evidentiary hearing was held, the parties agreed
to have the Court rule on the petitioning creditors'
administrative expense claim on summary judgment. The petitioning
creditors filed a motion for summary judgment seeking a total of
$95,753.06 in fees and expenses. According to the petitioning
creditors, they are entitled to (i) $38,011.53 for fees and
expenses incurred prepetition in connection with filing this case;
and (ii) $55,916.53 for fees and expenses incurred after the case
was filed (but before Fowler White was retained as special
counsel) for work that resulted in the recovery of assets for the
estate. The Trustee objects to all but $6,138.25 of the pre-
petition fees and expenses and all of the post-petition fees and
expenses.
"The Court does not doubt that the petitioning creditors provided
a benefit -- perhaps even a substantial benefit -- to the estate.
But the Court cannot award an administrative expense claim in a
chapter 7 case based on a substantial benefit. Instead, the Court
is limited by the plain meaning of [Sec.] 503(b). And under the
plain meaning of that section, the petitioning creditors are not
entitled to an administrative expense claim for any fees they
incurred prepetition (through the date the order for relief was
entered) for work they would have done had this case not been
filed. Nor are they entitled to an administrative expense claim
under [Sec.] 503(b)(3)(B) for any fees they incurred after the
order for relief since they failed to obtain court approval for
the actions they took to recover property for the estate," Judge
Williamson said.
Roberta A. Colton, Esq., and Stephanie Crane Leib, Esq., represent
the Petitioning Creditors.
A copy of the Court's Sept. 30, 2013 Memorandum Opinion is
available at http://is.gd/ST2hLELeagle.com.
PROVINCE GRANDE: Objection to Levin and Shareff Claims Shelved
--------------------------------------------------------------
Bankruptcy Judge A. Thomas Small declined to consider Province
Grande Olde Liberty, LLC's objections to the claims of Eric Levin
and Howard Shareff, each for $500,000, pending a decision in the
civil action against the Debtor before the North Carolina Business
Court. A copy of Judge Small's Oct. 1, 2013 Order is available at
http://is.gd/doJcTBfrom Leagle.com.
The claimants are the plaintiffs in the business court action,
captioned as Bolton v. Province Grande Olde Liberty,
LLC, Case No. 10-CVS-12062. In addition, Messrs. Levin and
Shareff on July 24, 2013, filed an adversary proceeding in the
bankruptcy court, AP 13-00122-8-ATS, seeking equitable
subordination or recharacterization of some of the debtor's
secured debt. The debtor, along with the secured creditor whose
debt is at issue, is a defendant in the equitable subordination
action.
On August 2, 2013, the debtor filed the motion seeking removal of
the Bolton case to the bankruptcy court on the grounds that the
equitable subordination action will require determination of the
same issues that are before the business court in the Bolton case.
In a Sept. 30 ruling, Judge Small said there may be some overlap
with the state court litigation, but the causes of actions alleged
in the adversary proceeding are focused on the transactions
between the debtor and PEM and are sufficiently different that
they should proceed in the bankruptcy court.
Province Grande Olde Liberty, LLC, filed a voluntary Chapter 11
petition (Bankr. E.D.N.C. Case No. 13-01563) on March 11, 2013.
RURAL/METRO: Oct. 23 Set as Claims Bar Date
-------------------------------------------
Creditors of Rural/Metro Corporation are required to file their
proofs of debt by Oct. 23, 2013 at 5:00 p.m.
Co-Counsel to the Debtors can be reached at
Edmon L. Morton, Esq.
Maris J. Kandestin, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, DE 19801
Tel: (302) 571-6600
- and -
Matthew A. Feldman, Esq.
Rachel C. Strickland, Esq.
Daniel I. Forman, Esq.
WILLKIE FARR & GALLAGHER LLP
787 Seventh Avenue
New York, NY 10019
Tel: (212) 728-8000
Fax: (212) 728-8111
About Rural/Metro Corp
Headquartered in Scottsdale, Arizona, Rural/Metro Corporation --
http://www.ruralmetro.com-- is a national provider of 911-
emergency and non-emergency interfacility ambulance services and
private fire protection services, operating in 21 states and
nearly 700 communities.
Rural/Metro Corp. and 59 affiliates sought Chapter 11 protection
on Aug. 4, 2013, before the U.S. Bankruptcy Court for the District
of Delaware.
The Debtors' lead bankruptcy counsel are Matthew A. Feldman, Esq.,
Rachel C. Strickland, Esq., and Daniel Forman, Esq., at Willkie
Farr & Gallagher LLP, in New York. Maris J. Kandestin, Esq., and
Edmon L. Morton, Esq., at Young, Conaway, Stargatt & Taylor, LLP,
in Wilmington, Delaware, serve as the Debtors' local Delaware
counsel.
Alvarez & Marsal Healthcare Industry Group, LLC, and FTI
Consulting, Inc., are the Debtors' financial advisors, while
Lazard Freres & Co. L.L.C. is their investment banker. Donlin,
Recano & Company, Inc., is the Debtors' claims and noticing agent.
The U.S. Trustee has appointed a three-member official committee
of unsecured creditors in the Chapter 11 case.
The Debtors have arranged $75 million of DIP financing from a
group of prepetition lenders led by Credit Suisse AG. An interim
order has allowed the Debtors to access $40 million of the DIP
facility.
S&R GRANDVIEW: Chapter 11 Case Dismissed
----------------------------------------
Bankruptcy Judge Randy D. Doub dismissed the Chapter 11 case of
S&R GrandView, LLC (Bankr. E.D.N.C. Case No. 13-03098), ruling
that Donald J. Rhine, who signed the voluntary petition on the
Debtor's behalf, lacked authority to file the petition.
Maxine Ganer, a member of the Debtor, sought case dismissal,
saying she does not consent to the bankruptcy filing. Creditor
First Bank supported Ms. Ganer's Motion to Dismiss.
Mr. Rhine's membership interest constitutes 19% of the total
membership interests of the Debtor.
The Court conducted a hearing on this matter on Aug. 28, 2013, in
Wilson, North Carolina.
A copy of the Court's Oct. 4, 2013 Order is available at
http://is.gd/6YJiCVfrom Leagle.com.
S&R GrandView, LLC, was organized in August 2005 for the purposes
of investing, owning, holding, developing, and/or selling real
estate. Based in Wrightsville Beach, North Carolina, S&R
GrandView filed for Chapter 11 bankruptcy (Bankr. E.D.N.C. Case
No. 13-03098) on May 13, 2013. Judge Randy D. Doub oversees the
case. Dean R. Davis, Esq., at the Law Office Of Dean R. Davis,
serves as the Debtor's counsel. In its petition, S&R GrandView
estimated $500,001 to $1 million in assets, and $1 million to $10
million in debts. A list of the Company's 20 largest unsecured
creditors filed with the petition is available for free at
http://bankrupt.com/misc/nceb13-03098.pdf The petition was signed
by Donald J. Rhine, manager.
SAN DIEGO HOSPICE: Oct. 23 Set as Claims Bar Date
-------------------------------------------------
Creditors of San Diego Hospice & Palliative Care Corporatio are
required to file their proofs of debt by Oct. 23, 2013.
San Diego Hospice & Palliative Care Corporation filed a Chapter 11
petition (Bankr. S.D. Cal. Case No. 13-01179) in San Diego on
Feb. 4, 2013. The Debtor is the operator of the San Diego Hospice
and The Institute for Palliative Medicine, one of the largest
community-owned, not-for-profit hospices in the country.
The Debtor scheduled $20,369,007 in total assets and $14,888,058
in total liabilities.
Even before the bankruptcy filing, the Debtor has been under a
federal investigation, focusing whether it allowed patients to
stay in the program even when their diagnosis changed. The Debtor
said that it will meet with government agencies to address their
concerns, explore partnerships with other health care
organizations, and work to restructure and resize San Diego
Hospice. The Debtor said it has encouraged Scripps Health, the
region's largest provider of health care services, to enter the
hospice business.
On April 30, 2013, San Diego Hospice received Court authority to
sell its unused 24-bed hospice facility to Scripps Health for
$16.55 million. Scripps made the opening bid of $10.7 million at
the auction that took place before the sale-approval hearing. The
other bidder was Sharp Healthcare. The sale is also subject to
approval by regulators in California.
In May 2013, San Diego Hospice and its creditors' committee
jointly filed a liquidating Chapter 11 plan and an explanatory
disclosure statement.
Jeffrey Isaacs, Esq., at Procopio, Cory, Hargreaves & Savitch LLP
represents the Debtor.
Samuel R. Maizel, Esq., at Pachulski Stang Ziehl & Jones LLP,
represents the Committee.
SEAN DUNNE: Irish Developer Ordered to Turn Over Documents
----------------------------------------------------------
Michael Bathon, substituting for Bloomberg bankruptcy columnist
Bill Rochelle, reports that Sean Dunne, once one of Ireland's
biggest real-estate developers, was ordered to produce financial
records requested by the trustee overseeing his Chapter 7
bankruptcy to determine whether he made fraudulent transfers to
his wife.
According to the report, U.S. Bankruptcy Judge Alan H.W. Shiff
granted the trustee's request to force Dunne to turn over the
documents, according to court papers filed Oct. 3 in Bridgeport,
Connecticut. The judge deferred ruling on a separate request to
hold Mr. Dunne in contempt for refusing to answer questions under
an earlier order. Mr. Dunne must attend a meeting of his
creditors, where he will be questioned about his finances, and
"shall fully and completely answer all questions posed by the
trustee and turn over all documents requested by the trustee
without limitation," Judge Shiff ruled. A failure to testify at a
creditors meeting has been found to be a basis for denying a
discharge of debts, the judge said.
The report notes that creditors have sued claiming Mr. Dunne may
have fraudulently transferred tens of millions of dollars to his
wife before seeking bankruptcy in an attempt to move the money out
of creditors reach. All of Dunne's creditors are in Ireland or
the U.K., except for a lawyer who represented him in a Connecticut
lawsuit, court papers show. Mr. Dunne filed a list claiming
assets of $55.2 million, including $40.8 million in real estate,
and debt of $942.2 million, with $280.2 million in secured debt
and $612.2 million in unsecured debt.
The report discloses that Mr. Dunne bought the former Berkeley
Court, the Towers and Jurys Hotel in 2005 for about 380 million
euros ($503 million). At the time it was the highest price per
acre paid for sites in Ireland. His banks, Royal Bank of Scotland
Group Plc's Ulster Bank, Rabobank Groep NV and Kaupthing, took
control of the hotels in 2009 after planning authorities refused
Dunne permission to redevelop the 6.8-acre (2.8-hectare) site amid
a real-estate market collapse. Mr. Dunne was declared bankrupt in
Ireland's High Court in July.
About Sean Dunne
Irish real estate developer Sean Dunne filed a liquidating
Chapter 7 bankruptcy petition (Bankr. D. Conn. Case No. 13-50484)
on March 30, 2013, in Bridgeport, Connecticut. Mr. Dunne says he
now lives and works in Connecticut.
Mr. Dunne said he filed for bankruptcy in the U.S. because Ulster
Bank was applying to an Irish court for permission to commence
bankruptcy proceedings there.
The formal lists of property and debt Dunne filed in May in the
U.S. court shows assets with a total claimed value of $55.2
million and liabilities totaling $942.2 million. The assets
include $40.8 million of real estate, all in Ireland. Among the
$280.2 million in secured creditors and $612.2 million in
unsecured creditors, almost all are in Ireland.
SEMINOLE TRIBE: Fitch Assigns 'BB+' Issuer Default Rating
---------------------------------------------------------
Fitch Ratings assigns a 'BBB' rating to Seminole Tribe of
Florida's (STOF) proposed $395 million incremental term loan B.
Fitch also upgrades STOF's Issuer Default Rating (IDR) to 'BBB-'
from 'BB+', the gaming division's parity debt to 'BBB' from 'BBB-'
and the tribe's special obligation bonds to 'BBB-' from 'BB+'. The
Rating Outlook is revised to Stable from Positive. A full list of
rating actions follows at the end of this release.
The proposed term loan will be pari passu with STOF's existing
term loan and gaming enterprise revenue bonds and will be secured
by a revenue pledge of STOF's gaming operations, which include six
major casinos in the state of Florida with nearly 12,500 slot
machines and approximately 340 table games.
The proposed term loan will amortize at a rate of 10% per year
with a balloon payment in 2017 of approximately $237 million. The
proceeds will be used to repay $367 million in outstanding 2010
bonds and pay associated fees including $21 million in call
premiums. The term loan is being issued pursuant to the accordion
option on the existing term loan, which permits STOF to issue
incremental loans as long as pro forma net leverage remains at or
below 2x, or up to $500 million, whichever is greater.
Key Rating Drivers
The upgrade of STOF's IDR to investment grade is supported by
Fitch's increased comfort with the tribe's governance and fiscal
management. Previously Fitch downgraded STOF out of investment
grade following the tribe receiving a Notice of Violation (NOV)
related to the spending of gaming revenues from National Indian
Gaming Commission (NIGC) in 2010. The tribe resolved all violation
cited in the NOV and has successfully undergone three annual
audits of its compliance with its Revenue Allocation Plan (RAP).
The audits were required per STOF's agreement with the NIGC;
however, the tribe elected to continue to undergo these audits on
voluntary basis, which Fitch views positively.
Also, since 2010 a new council has been elected in May 2011 and
has taken measures to improve the tribe's fiscal management. Major
measures include growing the tribe's reserves and eliminating per
capita payments to newly born minors. Governmental leadership has
been relatively stable since 2011. In May 2013, three of the five
council seats were up for election with two of the incumbents
remaining in their respective positions. According to tribal
leadership there was no major push back related to the
implementation of the resolution to eliminate per capita payments
for newly born minors. The resolution went into effect April 2013.
The tribe's existing reserves provide for approximately three
months of governmental operations including per capita payments,
which is an improvement from two months of operations a year ago
and less than a month of operations prior to the new council
taking office. The tribe intends to grow the reserve with
surpluses, which are targeted at roughly 5% of gaming EBITDA.
STOF's plans for the reserve are not yet concrete.
STOF's positive operating trends also contribute to the upgrade.
STOF's gaming division has reported 11 straight quarters of
revenue growth, which is partially attributed to expansions at
existing properties (most notably in Tampa and Coconut Creek).
STOF's gaming operations also benefit from limited competition,
recent elimination of internet cafes and Florida's stronger than
national average economic recovery. STOF's gaming division
revenues and EBITDA for the last-12 month (LTM) period ending
June 30, 2013 grew by 5% and 3%, respectively, on a year-over-year
basis.
As a result of EBITDA growth and a heavy mix of amortizing debt in
STOF's capital structure, STOF's total debt/EBITDA ratio as of
June 30, 2013 improved to 1.7x from 2.0x for the prior year's
period. Excluding the tribe's special obligation bonds, leverage
is 1.3x. Pro forma for this transaction and the repayment of the
series 2005A bonds (repaid Oct. 1, 2013) debt service coverage is
4.9x including special obligations bonds and is approximately 6.5x
with gaming division debt only.
STOF's 'BBB-' IDR is commensurate with total leverage (including
tribal debt) of 2x or less although there is room for leverage to
exceed this threshold temporarily if Fitch expects that leverage
will decline back within 2x over a relatively short time horizon.
Fitch believes that STOF may look to expand at its flagship
properties once there is greater certainty over the state's
regulatory landscape. This may result in additional borrowing;
however, Fitch does not expect total leverage to exceed 2.5x
through the development cycle.
Regulatory Overhang
Fitch believes that there is adequate cushion in STOF's financial
position to maintain investment grade ratings in an event the
state approves additional gaming in the state or STOF's authority
to operate table games (about 18% of EBITDA) is allowed to expire
in 2015. (The two events are mutually exclusive under most
plausible scenarios because if the state permits table games at
commercial casinos STOF's ability to operate table games will
automatically be extended). STOF's improved fiscal prudence on the
tribal side and ability to stop or reduce revenue share payments
in case of gaming expansion or expiration of table games provide
an additional degree of comfort.
Per its 2010 compact with the state, STOF can suspend revenue
share payments completely if gaming is approved outside of
southeast Florida. STOF can suspend payments from its Broward
County casinos if integrated resorts are approved in southeast
Florida or if STOF's ability to operate table games is not
extended past 2015. In an event pari-mutuels in southeast Florida
are permitted table games, STOF can reduce payments from its
Broward County casinos by 50% if revenues there drop below a base
level established prior to table games becoming operational at the
pari mutuels. The effective revenue share is about 12% of gaming
revenue and about half of the revenues are generated in Broward
County.
Fitch analyzed scenarios that include additional competition or
suspension of table games and estimated the net negative effect on
STOF's EBITDA in a range of 5%-15%. A 15% decline in EBITDA would
raise leverage to approximately 2x, which is still in-line with
investment grade IDR. Fitch believes that the loss of table games
is unlikely and would be politically unpalatable. Cancelation of
table games would cause meaningful job losses since table games
are labor intensive and would cut approximately $100 million -
$150 million of revenue share to the state.
The state's 2014 legislative session starts March 4, 2014 and ends
May 2, 2014. Fitch expects large resort operators such as Las
Vegas Sands and Genting Group to continue to lobby for an
integrated resorts bill while southeast Florida pari-mutuels will
seek greater parity with STOF's gaming operations vis-a-vis tax
rate and/or ability to operate table games. The legislature may
also consider other gaming expansion scenarios analyzed in the
Spectrum Gaming report (see section below) such as gaming at all
of the state's pari mutuel facilities. There are three tracks in
Tampa, one in Naples and one in Palm Beach that would affect STOF
if permitted to convert to casinos (there are also facilities in
Fort Pierce and Sarasota that may have less direct impact).
Spectrum Report
On Oct. 1, 2014, Spectrum Gaming released a draft of the second
part of its gaming study report commissioned by the Florida
Senate's gaming committee. The report's findings may help shape
the discussions going into the state's 2014 legislative session.
Spectrum's report analyzed 12 scenarios from status quo to
permitting all forms of gaming at the state's 28 pari-mutuel
facilities and six new integrated resorts throughout the state. A
scenario of permitting craps and roulette at STOF's casinos was
also reviewed. Although the report did not provide explicit
recommendations with respect to which scenario is best, the report
did examine the positive and negative attributes plus estimated
incremental tax revenues and jobs created for each scenario.
Key takeaways from the report with respect to STOF:
-- A comparison of baseline scenario (STOF's tables are allowed
to expire) and table game extension scenario shows a
difference of 1,937 jobs in the first relevant year (Year 2);
-- Addition of craps and roulette at STOF's casinos would create
366 incremental jobs over the extension scenario in Year 2;
-- Under most expansion scenarios the state can more than offset
the loss of compact payments from STOF especially if the
Pennsylvania gaming tax model is instituted. The report
suggests that the Pennsylvania tax model of higher tax on
slots and lower tax on tables balances well job creation and
tax revenue maximization;
-- The report describes the scenario of having two integrated
resort casinos in southeast Florida as having a 'desirable
combination of economic benefits via expansion while
minimizing the negative consequences.'
Liquidity
STOF's liquidity is strong with considerable cash balances at the
governmental and the gaming division levels. The nearest maturity
is the incremental term loan in 2017, at which point $237 million
will be remaining. STOF's gaming division maintains modest
positive FCF after tribal distributions, which it uses for debt
reduction or to grow cash balances. The tribe operates the
government at a surplus, which are roughly targeted at 5% of the
gaming division's EBITDA. Outside of gaming, the tribe also
receives dividends from its Hard Rock International business.
Transaction Specific Ratings
The one notch differential on the gaming division debt (includes
the bonds and the term loan) relative to the IDR and the
investment grade rating reflects:
-- The additional debt incurrence test in the credit agreement
of 2.5x net leverage for the senior lien gaming division debt
and gaming division interest coverage by EBITDA test of 3.0x.
The 2005B bonds limit debt incurrence if parity debt leverage
exceeds 3.5x.
-- The gaming division seniority in the casino revenue trustee
guided waterfall relative to the special obligations bonds;
-- The gaming division debt holders' ability to shut off the flow
of funds at the gaming division level before distributions into
the Governmental Distribution Fund are made if MADS coverage by
EBITDA goes below 2x. Money retained in the waterfall would go
towards redeeming the gaming revenue debt with some carveouts
for payments to the tribe to maintain critical governmental
operations.
The special obligation bonds only have recourse to the funds
available in the Governmental Distribution Fund so there is risk
that the debt service on these bonds will not get paid if MADS
coverage goes below 2x on the gaming side. The special obligation
bondholders do not have recourse to the tribe outside of the cash
in the Governmental Distribution Fund, which receives the flow of
funds monies through a trustee after the gaming division debt is
paid. Money is released to the tribe from the Governmental
Distribution Fund once the debt service on the special obligation
bonds is paid.
The special obligation bonds' indenture has an additional debt
incurrence covenant stipulating that pari passu debt cannot exceed
15% of Available Revenues.
Rating Sensitivities
Positive: Future developments that may, individually or
collectively, lead to a Positive Outlook or an upgrade in the IDR
to 'BBB':
-- Greater clarity on gaming expansion in the state of Florida
and STOF's ability to operate table games past 2015;
-- Continued growth in tribal reserves and a better understanding
by Fitch of the potential uses of the reserves;
-- Total leverage including tribal debt declining and remaining
below 1.5x.
Negative: Future developments that may, individually or
collectively, lead to a Negative Outlook or a downgrade in the IDR
to 'BB+':
-- A decline in the tribe's reserves related operating pressure
on the gaming division and/or reversal in the tribe's prudent
fiscal management;
-- Leverage increasing above 2x for extended period of time due
to operating pressure or incremental borrowing. There is
capacity in the ratings for leverage to increase slightly
above 2x in conjunction with expansion related financing if
Fitch expects STOF to deleverage back to below 2x quickly.
Inability to extend table games past 2015 or a broader gaming
expansion (such as slots at all of tracks) could lead to a
revision in the Outlook to Negative. Fitch considers both
scenarios to be low probability. The decision to revise the
Outlook would depend on STOF's financial profile at the time of
the event and the tribe's ability and willingness to adjust
governmental spending in anticipation of reduced casino
distributions.
Fitch upgrades the following ratings:
Seminole Tribe of Florida
-- IDR to 'BBB-' from 'BB+'; Outlook to Stable from Positive;
-- $367 million gaming division bonds, series 2010A&B to 'BBB'
from 'BBB-';
-- $280 million gaming division bonds, series 2005B to 'BBB'
from 'BBB-';
-- $737 million term loan B due 2020 to 'BBB' from 'BBB-';
-- $421 million special obligation bonds, series 2007A&B to
'BBB-' from 'BB+';
-- $87 million special obligation bonds, series 2008A to 'BBB-'
from 'BB+'.
SR REAL ESTATE: Must File Missing Schedules by Oct. 15
------------------------------------------------------
The deadline for SR Real Estate Holdings LLC to submit its missing
schedules and statements is Oct. 15, 2013.
SR Real Estate Holdings, LLC, owner of 14 parcels of real property
totaling 6,400 acres straddling Santa Cruz and Santa Clara
counties, filed a Chapter 11 petition (Bankr. N.D. Cal. Case No.
13-54471) in San Jose, California, on Aug. 20, 2013. The Debtor
estimated that its assets total at least $10 million and
liabilities are at least $500 million. Victor A. Vilaplana, Esq.,
at Foley and Lardner, serves as counsel to the Debtor.
This is the third bankruptcy filed with respect to the property.
The prior owner, Sargent Ranch, LLC, filed Chapter 11 cases in
January 2010 (Bankr. S.D. Cal. Case No. 10-00046-PB) and November
2011 (Bankr. S.D. Cal. Case No. 11-18853). The second bankruptcy
case was dismissed in February 2012.
SR REAL ESTATE: Venue of Case Transferred to S.D. Cal.
--------------------------------------------------------
The U.S. Bankruptcy Court approved a motion filed by SR Real
Estate Holdings, LLC and secured creditors DACA2010L L.P. and
Sargent Ranch Management Company, LLC, to transfer venue from the
United States Bankruptcy Court for the Northern District of
California to the United States Bankruptcy Court for the Southern
District of California.
The Debtor owns approximately 6400 acres in Gilroy, California.
Most of its listed creditors are also located in the Northern
District of California. This is not, however, the first Chapter
11 filed by a debtor which asserted an interest in the Property.
Two prior cases were filed in the Southern District of California.
The first Chapter 11 case (No. 10-00046-PB11) was filed by Sargent
Ranch, LLC in the Southern District of California on Jan. 4, 2010,
and was later converted to a Chapter 7. SRL scheduled the
Property as its sole asset.
The Chapter 7 Trustee abandoned the Property, and the case was
closed on Jan. 20, 2012. Bankruptcy Judge Peter Bowie presided
over SRL's first case.
Before the first case closed, SRL filed a second chapter 11 case
(No. 11-18853-PB11), and again listed the Property as its sole
asset. While this case was originally assigned to U.S. Bankruptcy
Judge Laura Taylor, she transferred it to Judge Bowie, who
dismissed the second case on Feb. 10, 2012.
SR Real Estate Holdings filed this third case on Aug. 20, 2013.
SR Real Estate's primary asset is the Property, and the debtor's
business address is in Palo Alto, California.
Given its business address and the location of the Property, venue
is proper in the Northern District of California. This Chapter 11
case could not have been originally filed, however, in the
Southern District of California.
Despite its Northern California connections, SR Real Estate has
retained a prominent San Diego law firm as its proposed counsel,
which employment application is pending before the Northern
District of California court.
The moving parties primarily argue that Judge Bowie's familiarity
and experience with the issues surrounding the Property will
promote the economic and efficient administration of the Chapter
11 case.
The N.D. Cal. court agrees, and believes that notwithstanding the
location of the Property and SR Real Estate's creditors, this
factor dominates the outcome of this motion.
While there are no assurances that this case will wind up on Judge
Bowie's docket, the N.D. Cal. court assumes that the Southern
District of California will so assign it.
About SR Real Estate
SR Real Estate Holdings, LLC, owner of 14 parcels of real property
totaling 6,400 acres straddling Santa Cruz and Santa Clara
counties, filed a Chapter 11 petition (Bankr. N.D. Cal. Case No.
13-54471) in San Jose, California, on Aug. 20, 2013. The Debtor
estimated that its assets total at least $10 million and
liabilities are at least $500 million. Victor A. Vilaplana, Esq.,
at Foley and Lardner, serves as counsel to the Debtor.
This is the third bankruptcy filed with respect to the property.
The prior owner, Sargent Ranch, LLC, filed Chapter 11 cases in
January 2010 (Bankr. S.D. Cal. Case No. 10-00046-PB) and November
2011 (Bankr. S.D. Cal. Case No. 11-18853). The second bankruptcy
case was dismissed in February 2012.
SUNTRUST CAPITAL: Fitch Affirms 'BB' Preferred Stock Rating
-----------------------------------------------------------
Following its large regional bank peer review, Fitch Ratings has
revised the Outlook to Positive from Stable on SunTrust Banks,
Inc. (STI) Issuer Default Ratings (IDRs). Please refer to the
release titled 'Fitch Takes Rating Actions on Its Large Regional
Bank Group Following Peer Review' dated Oct. 8, 2013 for a
discussion of rating actions taken on the large regional banks.
KEY RATING DRIVERS - IDR & VR
STI's ratings were affirmed at 'BBB+' reflecting the company's
solid liquidity profile, sound capital position, and improving
asset quality. The company's Outlook was revised to Positive from
Stable reflecting an improving overall risk profile.
STI's risk profile benefits from a reduction in residential
mortgage and home equity lending, and a material decline in
problem assets. Further, its risk profile incorporates a balanced
business mix, and a good degree of noninterest income. In light of
the low interest rate environment and subdued economic growth,
Fitch remains concerned relative to the industry stretching for
yield. Fitch notes that STI's securities portfolio continues to
have very little credit risk, and its loan growth suggests a
measured approach to extending credit in the current environment,
characterized as having very competitive pricing. Lastly, STI's
interest rate risk positioning is relatively neutral, not
suggesting any directional bets in its risk management.
Somewhat offsetting this, STI's earnings performance remains below
large regional bank peer averages, though it does reflect an
improving trend over the past several years. The improvement in
reported earnings has largely come from lower provision expenses.
Fitch views favorably STI's recent settlement with Freddie Mac,
however, noting that most of STI's legacy repurchase risk resides
with Fannie Mae.
RATING SENSITIVITIES - IDR & VR
Sustained and improved profitability metrics that are in line with
large bank regional peers, combined with the maintenance of
appropriate capital levels and the continuation of moderating
asset quality, could result in positive rating momentum for STI.
Fitch anticipates that resolution of the Positive Rating Outlook
may extend beyond 12 months. Conversely, deteriorating asset
quality trends, combined with a lack of improvement in
profitability metrics could pressure STI's current ratings, though
a downgrade is viewed as unlikely.
Fitch has affirmed the following ratings and Revised the Outlook
to Positive from Stable:
SunTrust Banks, Inc.
Long-term IDR at 'BBB+';
Short-term IDR at 'F2';
Viability Rating at 'bbb+';
Preferred stock at 'BB-';
Senior debt at 'BBB+';
Subordinated debt at 'BBB';
Short-term debt at 'F2';
Support at 5;
Support Floor at 'NF'.
SunTrust Bank
Long-term IDR at 'BBB+';
Short-term IDR at 'F2';
Viability Rating at 'bbb+';
Long-term deposits at 'A-';
Market-linked securities at 'A-emr';
Senior notes at 'BBB+';
Short-term deposits at 'F2';
Subordinated debt at 'BBB';
Short-term debt at 'F2';
Support at '5';
Support Floor at 'NF'.
SunTrust Capital I
SunTrust Capital III
National Commerce Capital Trust I
Preferred stock at 'BB'.
SunTrust Preferred Capital I
Preferred stock at 'BB-'.
T.H. PROPERTIES: Undeclared Transfers Not Tax-Exempt
----------------------------------------------------
Bankruptcy Judge Stephen Raslavich granted Upper Hanover
Township's motion for summary judgment, holding that the transfers
of certain real estate by debtors T.H. Properties, LP, T.H.
Properties, INC., Morgan Hill Drive, LP, and Northgate Development
Company, LP, are not exempt from transfer taxes.
The Debtors are residential real estate developers. They proposed
a Chapter 11 plan wherein the equity owners would retain their
interests. Because the plan did not propose to pay creditors in
full, this posed absolute priority problems. The owners addressed
that problem by making a "new value" contribution. This
contribution was in the form of real property, three phases
(Phases IV, V, and VI) of the land referred to as Northgate. The
Debtors had no interest in any of the three properties. The
contribution of the Northgate phases to the plan constituted the
"new value" necessary to satisfy the absolute priority rule and to
obtain confirmation.
The mechanics of the transfer of the real estate are of central
importance. The Northgate phases were contributed under a
Transfer and Development Agreement (TDA). Under the TDA, the
Northgate phases were to be transferred to the Debtor on the
Effective Date and then immediately transferred out, either to New
Stream Real Estate, LLC, the lienholder on Northgate, or its
designee. The Debtors retained an ownership interest in Northgate
to the extent of any net profits from Phases IV and V. Those
profits would pay creditors under the plan.
New Stream designated an entity known as GSRE 25 LLC to receive
the Northgate property from the Debtor. GSRE 25 has commenced
development and sale of the Northgate properties. Operating under
the belief that no transfer tax applies, title companies have
assisted in the sales without requiring payment of transfer tax.
As of the date of the Township's Summary Judgment Motion, 31
Northgate properties were developed and sold for which no transfer
tax was paid. Unpaid transfer taxes on these sales total
$24,317.47. This prompted the Township's complaint.
Judge Raslavich noted that the failure to assess transfer taxes is
allegedly based on an express Bankruptcy Code provision in Sec.
1146(a): "The issuance, transfer, or exchange of a security, or
the making or delivery of an instrument of transfer under a plan
confirmed under section 1129 of this title, may not be taxed under
any law imposing a stamp tax or similar tax."
Congress enacted that provision to facilitate reorganization by
giving debtors tax relief from stamp or similar tax, such as
transfer taxes, for transfers of property pursuant to an
instrument of transfer under a confirmed plan. Exempting the
transaction from tax reduces obligations encumbering the property,
thereby making a greater portion of the sale proceeds available to
creditors and affords debtor a quick and efficient means of
distributing and discharging its obligations under the plan.
Judge Raslavich, however, noted that the the subsequent transfers
from GSRE 25 to the future homeowners are not mentioned in the
Debtors' plan. The transfers that are mentioned in the plan are
the transfers set forth in the TDA: i.e., the contribution of the
three Northgate phases to the Debtor and the Debtor's immediate
transfer of the same property to the Northgate lienholder's
designee.
According to Judge Raslavich, the Court is constrained to agree
with the Township that the present matter is similar to the
facts in In re Kerner Printing Co., Inc., 188 B.R. 121, 124
(Bkrtcy.S.D.N.Y. 1995). That case involved an effective date
transfer to the debtor and an immediate transfer of the same real
property to a newly created entity, New Kerner, which intended to
sell that real estate (condominiums) free from otherwise
applicable transfer taxes. That exemption was denied based on the
Court's finding that the subsequent sales of the condominiums
would not affect the plan's consummation.
Like the condominiums in Kerner, Judge Raslavich said the
Northgate property will be developed and sold independent of any
terms in the plan. No special authorization is needed for that to
occur. It is up to GSRE 25 to decide how and when the developed
properties are sold. Nor are the future sales necessary for formal
consummation of the plan. There is no indication in the plan or
supporting documents that the ultimate transfers of the developed
real estate on a tax free basis was a condition precedent to
confirmation. Neither does the Debtor's obligation to pay any "net
profits" from Phases IV and V to creditors necessitate that
subsequent sales must necessarily be tax free. Taxes may reduce
net profit, but the plan does not guarantee a fixed payment;
merely that creditors be paid to the extent of net profits. The
connection that the future transfers have to the plan is
attenuated in this regard. As such, they cannot be considered as
having been made under a plan confirmed for present purposes.
The case is, UPPER HANOVER TOWNSHIP PLAINTIFF, v. T.H. PROPERTIES,
LP, T.H. PROPERTIES, INC., MORGAN HILL DRIVE, LP, NORTHGATE
DEVELOPMENT COMPANY, LP DEFENDANTS, Adv. Proc. No. 13-0058 (Bankr.
E.D. Pa.). A copy of the Court's Oct. 2, 2013 Opinion is
available at http://is.gd/FgGGL9from Leagle.com.
About T.H. Properties
Philadelphia-based T.H. Properties, L.P., has 12 working
developments in Pennsylvania and New Jersey. Timothy Hendricks
and his brother Todd started the firm in 1992. T.H. Properties
and its affiliates filed for Chapter 11 bankruptcy protection on
April 30, 2009 (Bankr. E.D. Pa. Case No. 09-13201). Northgate
Development Company, LP (Bankr. E.D. Calif. Case No. 09-____) was
among the affiliates that filed. Barry E. Bressler, Esq., at
Schnader, Harrison, Segal & Lewis, LLP, and Natalie D. Ramsey,
Esq., at Montgomery McCracken Walker and Rhoads LLP, represent the
Debtors in their restructuring efforts. T.H. Properties estimated
assets between $100 million and $500 million, and debts between
$10 million and $50 million in its Chapter 11 petition. A
creditors' committee has been appointed in the Debtors' chapter 11
proceedings.
Affiliate Wynstone Development Group, LP (Bankr. E.D. Calif. Case
No. 10-17863) filed for Chapter 11 protection on Sept. 14,
2010. It estimated assets and debts of $1 million to $10 million
in its Chapter 11 petition.
Bankruptcy Judge Stephen Raslavich in late January 2012 confirmed
TH Properties' reorganization plan, which required the company to
pay off its debts with proceeds from the sales of 1,500 homes
still to be completed in various developments.
Todd and Tim Hendricks founded the company in 1992.
THQ INC: Sues Zuffa, EA Over Rights To UFC Video Game
-----------------------------------------------------
Law360 reported that bankrupt video game developer THQ Inc. asked
a Delaware federal court on Oct. 4 for permission to avoid a
settlement it reached with Zuffa LLC to give up its rights to the
Ultimate Fighting Championship video game franchise just months
before filing for Chapter 11 protection, saying the agreement was
reached unfairly.
According to the report, in the complaint, THQ alleged former
competitor Electronic Arts Inc. told Zuffa, which owns the UFC,
about its struggling finances after breaking off negotiations to
buy THQ, and that the two companies worked together to unfairly.
The case is THQ Inc. v. Zuffa LLC et al., Case No. 1:13-cv-01651
(D.Del.).
About THQ Inc.
THQ Inc. (NASDAQ: THQI) -- http://www.thq.com/-- was a worldwide
developer and publisher of interactive entertainment software.
The Company developed its products for all popular game systems,
personal computers, wireless devices and the Internet.
Headquartered in Los Angeles, California, THQ sold 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. Michael R.
Nestor, M. Blake Cleary and Jaime Luton Chapman at Young Conaway
Stargatt & Taylor, LLP; and Oscar Garza at Gibson, Dunn & Crutcher
LLP represent the Debtors. FTI Consulting and Centerview Partners
LLC are the financial advisors. Kurtzman Carson Consultants is
the claims and notice agent.
Before the 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.
TRANS-LUX CORP: Stockholders Elect Three Directors
--------------------------------------------------
The Annual Meeting of Stockholders of Trans-Lux Corporation was
held on Oct. 2, 2013, at which the stockholders:
(a) approved an advisory resolution on executive compensation;
(b) approved an advisory resolution to hold future advisory
vote on executive compensation every three years;
(c) approved the granting of certain warrants to George
Schiele;
(d) approved the granting of certain warrants to Salvatore
Zizza;
(e) approved the granting of certain warrants to Jean
Firstenberg;
(f) approved certain amendments to the Company's amended and
restated certificate of incorporation granting the
Company's board the discretion to (a) effect a reverse
stock split by a ratio of up to 1-for-1,000, with the exact
ratio to be determined by the Company's Board of Directors
in its sole discretion, followed by a forward stock split
by a ratio of up to 50-for-1, with the exact ratio to be
determined by the Company's Board of Directors in its sole
discretion.
(g) approved certain amendments to the Company's amended and
restated certificate of incorporation granting the
Company's board the discretion to reduce the Company's
authorized Common Stock.
(h) elected Jean Firstenberg, Alan K. Greene, Alberto Shaio as
directors; and
(i) ratified the appointment of BDO USA, LLP, as the
Corporation's independent registered public accounting firm
for the fiscal year ending Dec. 31, 2013.
The following directors are continuing their respective terms as
directors:
Term expires upon election of successor at 2014 Annual Meeting of
Shareholders:
Jean-Marc Allain
Marco Elser
George W. Schiele
Term expires upon election of successor at 2015 Annual Meeting of
Shareholders:
Salvatore J. Zizza
Mr. Elliot Sloyer has retired from the Board of Directors, as of
the expiration of his term on Oct. 2, 2013.
About Trans-Lux Corporation
Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a
designer and manufacturer of digital signage display solutions for
the financial, sports and entertainment, gaming and leasing
markets.
For the year ended Dec. 31, 2012, the Company incurred a net loss
of $1.36 million on $23.02 million of total revenues, as compared
with a net loss of $1.41 million on $23.75 million of total
revenues during the prior year. As of March 31, 2013, the Company
had $20 million in total assets, $18.31 million in total
liabilities and $1.69 million in total stockholders' equity.
"Our independent registered public accounting firm has issued an
opinion on our consolidated financial statements that states that
the consolidated financial statements were prepared assuming we
will continue as a going concern and further states that the
continuing losses and uncertainty regarding the ability to make
the required minimum funding contributions to the pension plan as
well as the sinking fund payments on the Debentures and the
principal and interest payments on the Notes and the Debentures
raises substantial doubt about our ability to continue as a going
concern. As a result, if the Company is unable to (i) obtain
additional liquidity for working capital, (ii) make the required
minimum funding contributions to the pension plan and (iii) make
the required principal and interest payments on the Notes and
Debentures, there would be a significant adverse impact on the
financial position and the operating results of the Company,"
according to the Company's annual report for the year ended
Dec. 31, 2012.
USEC INC: Global X Lowers Equity Stake to 14.2% at Sept. 30
-----------------------------------------------------------
In an amended Schedule 13G filed with the U.S. Securities and
Exchange Commission, Global X Management Company LLC disclosed
that as of Sept. 30, 2013, it beneficially owned 702,883 shares of
common stock of USEC, Inc., representing 14.21 percent of the
shares outstanding. Global X previously reported beneficial
ownership of 1,143,733 common shares or 23.1 percent equity stake
as of July 31, 2013. A copy of the regulatory filing is available
for free at http://is.gd/tjUNef
About USEC Inc.
Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) --
http://www.usec.com/-- supplies enriched uranium fuel for
commercial nuclear power plants.
USEC disclosed a net loss of $1.20 billion in 2012, as compared
with a net loss of $491.1 million in 2011. As of June 30, 2013,
the Company had $1.51 billion in total assets, $1.93 billion in
total liabilities and a $419.2 million stockholders' deficit.
PricewaterhouseCoopers LLP, in McLean, Virginia, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2012. The independent auditors noted
that the Company has reported net losses and a stockholders'
deficit at Dec. 31, 2012, and is engaged with its advisors and
certain stakeholders on alternatives for a possible restructuring
of its balance sheet, which raise substantial doubt about its
ability to continue as a going concern.
Bankruptcy Warning
"A delisting of our common stock by the NYSE and the failure of
our common stock to be listed on another national exchange could
have significant adverse consequences. A delisting would likely
have a negative effect on the price of our common stock and would
impair stockholders' ability to sell or purchase our common stock.
As of December 31, 2012, we had $530 million of convertible notes
outstanding. A 'fundamental change' is triggered under the terms
of our convertible notes if our shares of common stock are not
listed for trading on any of the NYSE, the American Stock
Exchange, the NASDAQ Global Market or the NASDAQ Global Select
Market. Our receipt of a NYSE continued listing standards
notification described above did not trigger a fundamental change.
If a fundamental change occurs under the convertible notes, the
holders of the notes can require us to repurchase the notes in
full for cash. We do not have adequate cash to repurchase the
notes. In addition, the occurrence of a fundamental change under
the convertible notes that permits the holders of the convertible
notes to require a repurchase for cash is an event of default
under our credit facility. Accordingly, the exercise of remedies
by holders of our convertible notes or lenders under our credit
facility as a result of a delisting would have a material adverse
effect on our liquidity and financial condition and could require
us to file for bankruptcy protection," according to the Company's
annual report for the year ended Dec. 31, 2012.
* * *
USEC Inc. carries 'Caa1' corporate and probability of default
ratings, with "developing" outlook, from Moody's.
As reported by the TCR on Aug. 17, 2012, Standard & Poor's Ratings
Services lowered its ratings on USEC Inc., including the corporate
credit rating to 'CCC' from 'CCC+'.
"The downgrade reflects our assessment of USEC's long-term
viability after the company publicly stated that it will be
difficult to continue enrichment operations at the Paducah Gaseous
Diffusion Plant after a one-year multiparty agreement to extend
operations expires in May 2013," said Standard & Poor's credit
analyst Maurice S. Austin.
VISUALANT INC: Amends 162.1 Million Shares Resale Prospectus
------------------------------------------------------------
Visualant Inc. amended its registration statement covering the
resale by William D. Moreland, Diker Micro-Cap Fund, LP/ Mark
Diker, J3E2A2Z LP, an affiliate of Ronald P. Erickson, the
Company's CEO, of up to 162,130,000 shares of the Company's common
stock, $.001 par value per share, including:
(i) 52,300,000 shares of common stock issued to Special
Situations and forty other accredited investors pursuant to
the Private Placement which closed June 14, 2013;
(ii) 52,300,000 shares of common stock issuable upon the
exercise of the five-year Series A Warrants at $0.15 per
share, which were issued to the investors as part of the
Private Placement;
(iii) 52,300,000 shares of common stock issuable upon the
exercise of five year Series B Warrants at $0.20 per share,
which were issued to the investors as part of the Private
Placement; and
(iv) 5,230,000 shares of common stock issuable upon the exercise
of five year Placement Agent Warrants at $0.10 per share,
which were issued to GVC Capital LLC or affiliated parties
pursuant to the Private Placement.
The Company will not receive any of the proceeds from the sale of
the common stock by the selling security holders.
The Company's common stock trades on the OTCQB under the symbol
VSUL. On Oct. 3, 2013, the last reported sale price for the
Company's common stock as reported on OTCQB was $0.10 per share.
The Company amended the registration statement to delay its
effective date.
A copy of the Amended Form S-1 is available for free at:
http://is.gd/LwavZs
About Visualant Inc.
Seattle, Wash.-based Visualant, Inc., was incorporated under the
laws of the State of Nevada on Oct. 8, 1998. The Company
develops low-cost, high speed, light-based security and quality
control solutions for use in homeland security, anti-
counterfeiting, forgery/fraud prevention, brand protection and
process control applications.
Visualant incurred a net loss of $2.72 million for the year
ended Sept. 30, 2012, compared with a net loss of $2.39 million
for the same period during the prior year. The Company's balance
sheet at June 30, 2013, showed $5.59 million in total assets,
$7.32 million in total liabilities, $46,609 in noncontrolling
interest and a $1.78 million total stockholders' deficit.
PMB Helin Donovan, LLP, in Nov. 10, 2012, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Sept. 30, 2012. The independent auditors noted that
the Company has sustained a net loss from operations and has an
accumulated deficit since inception which raise substantial doubt
about the Company's ability to continue as a going concern.
WEST AIRPORT PALMS: First-Citizens Balks at Delay of Sale
---------------------------------------------------------
First-Citizens Bank & Trust Company, as the holder of a loan
secured by a first priority lien on substantially all of the
assets of West Airport Palms Business Park, LLC, objected to the
Debtor's motion to extend the time to file a motion to enjoin a
foreclosure sale.
The Bank noted that ever since the Debtor filed the Chapter 11
case, the Debtor has promised the Bank and the Court that a buyer
would emerge to purchase the collateral and repay the Bank. The
Bank has followed up multiple times with the Debtor regarding
details of the proposed sales, but details are never forthcoming.
In the Bank's view, the motion represents another attempt to delay
resolution of the matter.
The Debtor requested for a 21-day extension of time to file the
motion to enjoin foreclosure sale, and disclosure statement and
plan. According to the Debtor, direct, immediate and substantial
harm will occur to the Debtor's interest in its real property --
real property consisting of industrial condominiums located at
2355-2385 N.W. 70th Avenue in Miami, Florida -- if it is not
granted an emergency hearing. Specifically, if the Debtor is not
granted an emergency hearing on or before Oct. 1, 2013, it would
be unable to finalize negotiations with the remaining potential
purchaser(s) in its attempt to obtain a stalking horse contract
for the purchase of all or substantially all of its units.
The Debtor explained that, among other things:
1. the Bank has obtained a summary judgment of foreclosure
in the state court action setting a foreclosure sale date
of Nov. 6, subject however to a motion for rehearing
scheduled for Oct. 15;
2. the Debtor continues to be in negotiations with various
suitors for a bulk sale of all, or substantially all, of the
condominium warehouse units, but no stalking horse contract
has been entered into yet;
3. a 21-day extension of time to permit the Debtor to execute
a contract for sale of all, or substantially all, of the
units, and prepare and file its motion to enjoin foreclosure
sale, disclosure statement and plan would not prejudice the
Bank, yet it would greatly benefit the unsecured investors
who hold approximately $2 million of unsecured debt issued
by the Debtor.
About West Airport Palms Business Park
Headquartered in Miami, Florida, West Airport Palms Business Park,
LLC, filed for Chapter 11 (Bankr. S.D. Fla. Case No. 13-25728) on
July 2, 2013. Judge Robert A. Mark presides over the case. James
Schwitalla, Esq., represents the Debtor as counsel. In its
petition, the Debtor scheduled assets of $14,440,419 and
liabilities of $9,284,422. The petition was signed by Alexander
Montero, managing member.
The U.S. Trustee said that an official committee has not been
appointed in the case. The U.S. Trustee reserves the right to
appoint such a committee if interest developed among the
creditors.
WORLD IMPORTS: U.S. Trustee Appoints Creditors Committee
--------------------------------------------------------
Roberta A. DeAngelis, United States Trustee for Region 3,
appointed a 3-member Committee of Unsecured Creditors in the
Chapter 11 case of World Imports, Ltd.:
1. Weicheng (HK) Industrial Trade Co., Ltd.
Room 1202, No. 79 Wushipu Road
Huli District, Xiamen City
Fujian, China
Attn: Lai Xun Ming, General Manager
Tel: 0086-592-5532281
Fax: 0086-592-5532836
E-Mail: hsjack8@188.com
2. Sunrise Furniture Co., Ltd.
Lianping Management Area
Dalingshan Town, Dongguan
Guangong, China 523809
Attn: Ben Yung, General Manager
Tel: 0769-83051333
Fax: 0769-85659210
E-Mail: 5659210@163.com
3. Ryder Truck Rental, Inc.
6000 Windward Parkway
Alpharetta, GA 30005
Attn: Kim Wall, Collection Manager
Tel: (770) 569-6591
Fax: (770) 569- 6712
E-Mail: kwall@ryder.com
The document was signed by George M. Conway, Esq., for Frederic J.
Baker, Assistant United States Trustee.
About World Imports
World Imports, Ltd., filed a Chapter 11 petition (Bankr. E.D. Pa.
Case No. 13-15929) on July 3, 2013, in Philadelphia. Debtor-
affiliates World Imports South, LLC (Bankr. E.D. Pa. Case No.
13-15933), 11000 LLC (Bankr. E.D. Pa. Case No. 13-15934, and World
Imports Chicago, LLC (Bankr. E.D. Pa. Case No. 13-15935) filed
separate petitions for Chapter 11 relief. The cases are jointly
administered under Case No. 13-15929. John E. Kaskey, Esq., at
Braverman Kaskey, P.C., in Philadelphia, serves as counsel to the
Debtors. World Imports, Ltd., estimated assets and debts of
$10 million to $50 million. World Imports South, LLC, estimated
assets of $1 million to $10 million.
* CoreLogic Reports Show U.S. Foreclosure Inventory Down 33%
------------------------------------------------------------
CoreLogic(R), a residential property information, analytics and
services provider, on Oct. 8 released its August National
Foreclosure Report with a supplement featuring quarterly shadow
inventory data as of July 2013.
According to CoreLogic analysis:
-- There were 48,000 completed foreclosures in the U.S. in August
of 2013, down from 72,000 in August 2012, a year-over-year
decrease of 34 percent. On a month-over-month basis, completed
foreclosures increased 1.3 percent, from 47,000 in July 2013*.
-- Overall residential shadow inventory, as of July 2013, was 1.9
million homes, accounting for a value of $293 billion and
representing a supply of 3.7 months. This was down 22 percent
from a year ago, when it was at 2.4 million and down 38 percent
from its peak in 2010, when it reached 3 million homes.
As a basis of comparison to the 48,000 completed foreclosures
reported for August 2013, prior to the decline in the housing
market in 2007, completed foreclosures averaged 21,000 per month
nationwide between 2000 and 2006. Completed foreclosures are an
indication of the total number of homes actually lost to
foreclosure. Since the financial crisis began in September 2008,
there have been approximately 4.5 million completed foreclosures
across the country.
As of August 2013, approximately 939,000 homes in the U.S. were in
some stage of foreclosure, known as the foreclosure inventory,
compared to 1.4 million in August 2012, a year-over-year decrease
of 33 percent. Month over month, the foreclosure inventory was
down 3.2 percent from August 2013 to July 2013. The foreclosure
inventory as of August 2013 represented 2.4 percent of all homes
with a mortgage compared to 3.3 percent in August 2012.
At the end of August 2013, there were approximately 2.1 million
mortgages, or 5.3 percent, in serious delinquency (SDQ, defined as
90 days or more past due, including those loans in foreclosure or
real estate owned, REO). The rate of seriously delinquent
mortgages is at its lowest level since December 2008.
"The foreclosure inventory continues to improve, as exhibited by
these recent numbers," said Dr. Mark Fleming, chief economist for
CoreLogic. "A surge in completed foreclosures and a rise in the
foreclosure inventory is unlikely given continued house price
improvements and shortages of supply in many markets."
"Over the past year, the value of the U.S. shadow inventory
dropped by $87 billion--a sign of increased normalcy in the
housing market," said Anand Nallathambi, president and CEO of
CoreLogic. "With a year-over-year decrease of 22 percent in July,
the shadow inventory has now declined steadily for 10 consecutive
months."
Foreclosure Highlights:
-- The five states with the highest number of completed
foreclosures for the 12 months ending in August 2013 were: Florida
(111,000), Michigan (60,000), California (58,000), Texas (43,000)
and Georgia (40,000).These five states accounted for almost half
of all completed foreclosures nationally.
-- The five states with the lowest number of completed
foreclosures for the 12 months ending in August 2013 were:
District of Columbia (94), North Dakota (463), Hawaii (492), West
Virginia (501) and Wyoming (723).
-- The five states with the highest foreclosure inventory as a
percentage of all mortgaged homes were: Florida (7.9 percent), New
Jersey (6.2 percent), New York (4.9 percent), Maine (4.0 percent)
and Connecticut (3.9 percent).
-- The five states with the lowest foreclosure inventory as a
percentage of all mortgaged homes were: Wyoming (0.4 percent),
Alaska (0.6 percent), North Dakota (0.7 percent), Nebraska (0.7
percent) and Colorado (0.7 percent).
Shadow Inventory Highlights:
-- As of July 2013, shadow inventory was under 2 million
properties, representing 3.7 months' supply or 85 percent of the
2.2 million properties that were seriously delinquent, in
foreclosure or REO.
-- Of the fewer than 2 million properties in the shadow inventory
(Figures 1 and 2), 874,000 properties were seriously delinquent
(1.8 months' supply), 661,000 were in some stage of foreclosure
(1.3 months' supply) and 318,000 were already in REO (0.6 months'
supply).
-- The value of shadow inventory was $293 billion as of July 2013,
down from $380 billion in July 2012.
CoreLogic estimates the current stock of properties in the shadow
inventory, also known as pending supply, by calculating the number
of properties that are seriously delinquent, in foreclosure or
held as REO by mortgage servicers, but not currently listed on
multiple listing services (MLSs). Transition rates of
"delinquency to foreclosure" and "foreclosure to REO" are used to
identify the currently distressed unlisted properties most likely
to become REO properties. Properties that are not yet delinquent,
but may become delinquent in the future, are not included in the
estimate of the current shadow inventory. Shadow inventory is
typically not included in the official reporting measurements of
unsold inventory.
*July data was revised. Revisions are standard, and to ensure
accuracy, CoreLogic incorporates newly released data to provide
updated results.
Judicial Foreclosure States Foreclosure Ranking (Ranked by
Completed Foreclosures)
Non-Judicial Foreclosure States Foreclosure Ranking (Ranked by
Completed Foreclosures)
Foreclosure Data for the Largest Core Based Statistical Areas
(CBSAs) Based on Population (Ranked by Completed Foreclosures)
Figure 1: Shadow Inventory Detail In Thousands, Not Seasonally
Adjusted
Figure 3 - Foreclosure Inventory by State
Foreclosure Inventory Methodology
The data in this report represents foreclosure activity reported
through August 2013.
This report separates state data into judicial vs. non-judicial
foreclosure state categories. In judicial foreclosure states,
lenders must provide evidence to the courts of delinquency in
order to move a borrower into foreclosure. In non-judicial
foreclosure states, lenders can issue notices of default directly
to the borrower without court intervention. This is an important
distinction since judicial states, as a rule, have longer
foreclosure timelines, thus affecting foreclosure statistics.
A completed foreclosure occurs when a property is auctioned and
results in the purchase of the home at auction by either a third
party, such as an investor, or by the lender. If the home is
purchased by the lender, it is moved into the lender's real estate
owned (REO) inventory. In "foreclosure by advertisement" states,
a redemption period begins after the auction and runs for a
statutory period, e.g., six months. During that period, the
borrower may regain the foreclosed home by paying all amounts due
as calculated under the statute. For purposes of this Foreclosure
Report, because so few homes are actually redeemed following an
auction, it is assumed that the foreclosure process ends in
"foreclosure by advertisement" states at the completion of the
auction.
The foreclosure inventory represents the number and share of
mortgaged homes that have been placed into the process of
foreclosure by the mortgage servicer. Mortgage servicers start
the foreclosure process when the mortgage reaches a specific level
of serious delinquency as dictated by the investor for the
mortgage loan. Once a foreclosure is "started," and absent the
borrower paying all amounts necessary to halt the foreclosure, the
home remains in foreclosure until the completed foreclosure
results in the sale to a third party at auction or the home enters
the lender's REO inventory. The data in this report accounts for
only first liens against a property and does not include secondary
liens. The foreclosure inventory is measured only against homes
that have an outstanding mortgage. Homes with no mortgage liens
can never be in foreclosure and are, therefore, excluded from the
analysis. Approximately one-third of homes nationally are owned
outright and do not have a mortgage. CoreLogic has approximately
85 percent coverage of U.S. foreclosure data.
Shadow Inventory Methodology
CoreLogic uses its Loan Performance Servicing and Securities
databases to size the number of 90+ day delinquencies,
foreclosures and real estate owned (REO) properties. Cure rates,
which measure the proportion of loans in one stage of default that
cured (versus moving to more severe states of default), are
applied to the number of loans in default at each stage of
default. CoreLogic calculates the share of loans in default that
are currently listed on MLS by matching public record properties
in default to MLS active listings. It applies the percentage of
defaulted loans that are currently listed to the estimate of
outstanding loans that will proceed to further stages of default
to calculate the pending supply inventory and adds that to the
reported visible inventory. Visible inventory is compiled from
CoreLogic ListingTrends. To determine months' supply for visible
and shadow inventories, CoreLogic uses the number of non-
seasonally adjusted home sales according to CoreLogic data.
* Investors Less Confident in Economic Recovery After Shutdown
--------------------------------------------------------------
Nearly three-quarters (72%) of investors surveyed say the
government shutdown and impending debt-ceiling issue has begun to
diminish their confidence in the economy's recovery, according to
a recent poll conducted by TD Ameritrade Holding Corporation.
While this issue appears to have impacted investors' economic
outlooks, many say that this sentiment won't affect how they plan
to approach their portfolios just yet. Forty-one percent say they
haven't made changes to their investments yet but may pull back if
the issue continues. Another 37 percent of investors say they
think the shutdown/debt-ceiling issue will pass quickly and
therefore they haven't taken action in their portfolios; 12
percent say they are taking advantage of opportunities as a result
of the issue; and 10 percent moved some money to cash temporarily.
And just how will the issue end? One in four investors say it is
very likely the government will default on its debt, while another
44 percent say it's somewhat likely.
"Some investors likely aren't adding positions or taking on new
risk yet until there is a clear picture as to how the shutdown and
debt-ceiling deadline will settle," said JJ Kinahan, chief
strategist at TD Ameritrade. "With about one million people
furloughed from their government jobs there is concern that this
could have an impact on retail sales, housing and durable goods."
"The shutdown has brought with it renewed economic uncertainty,
and many investors may have questions about how to adapt their
positions for a variety of potential outcomes," said Tom Bradley,
president of retail distribution for TD Ameritrade. "It's our
objective to provide investors with relevant information and
resources to help them answer these questions. We encourage
investors to take advantage of the resources available to educate
themselves and seek guidance or help, if necessary, before making
their next move -- whatever that may be."
TD Ameritrade, Inc. is a broker-dealer subsidiary of TD Ameritrade
Holding Corporation.
About the Survey
A total of 693 consumers participated in an online survey
conducted by True North Market Insights on behalf of TD Ameritrade
Holding Corporation on October 3, 2013 and offered their views on
the federal government's shutdown and impact on economic and
investment conditions. The 693 survey respondents represent a
random sample of the general population selected from a consumer
panel of individuals in the U.S. who have access to the Internet.
The margin of error in this survey is ñ3.7%. This means that in
19 cases out of 20, survey results based on 693 respondents will
differ by no more than 3.7 percentage points in either direction
from what would have been obtained by seeking the opinions of all
eligible individuals in the U.S. who are online. True North
Market Insights and TD Ameritrade Holding Corporation are
separate, unaffiliated companies and are not responsible for each
other's products and services.
About TD Ameritrade Holding Corporation
TD Ameritrade Holding Corporation -- http://www.amtd.com-- is a
provider of investment services.
* New York Regulator Bars Falcone from Insurance Business
---------------------------------------------------------
Leslie Scism, writing for The Wall Street Journal, reported that
New York's top financial-services watchdog has banned investor
Philip Falcone from any role running an insurance company licensed
by the state for seven years, citing a recent civil settlement by
the Harbinger Capital Partners LLC founder with federal securities
regulators.
According to the report, in August, Mr. Falcone admitted
wrongdoing, agreed to pay $18 million and consented to a ban on
acting as investment adviser for five years to resolve two civil
lawsuits filed by the Securities and Exchange Commission against
Mr. Falcone and Harbinger Capital.
The suits alleged, in part, that Mr. Falcone and Harbinger Capital
had failed to disclose to investors a $113 million personal loan
Mr. Falcone took out from a Harbinger Capital fund to pay his own
taxes, even as other investors in the fund were prevented from
pulling their money, the report related.
New York Department of Financial Services Superintendent Benjamin
M. Lawsky said on Oct. 7 in announcing the state's ban that the
SEC settlement demonstrated "serious issues related to Mr.
Falcone's fitness to control the management, operations, and
policyholder funds of a New York insurance company," the report
further related.
Neither the New York nor the SEC actions bar Mr. Falcone from
continuing in his role as chairman and chief executive of
Harbinger Group Inc., a conglomerate that owns two life-insurance
companies, Baltimore-based Fidelity & Guaranty Life Insurance Co.,
which sells insurance products outside of New York, and Fidelity &
Guaranty Life Insurance Co. of New York, which is licensed to
operate in the state, the report noted.
* Top Bankers Issue Warning on U.S. Debt Proposal
-------------------------------------------------
Deborah Solomon and Dan Strumpf, writing for The Wall Street
Journal, reported that top Wall Street executives are warning that
any effort to pay interest on U.S. debt before other obligations
such as Social Security, a strategy some lawmakers think would
placate bond investors if the government breaches its borrowing
limit, would pose severe risks to financial markets and the
economy.
According to the report, in recent meetings with Republican
lawmakers and Obama administration officials, chief executives of
the nation's largest financial institutions said putting some
payments ahead of others would create insurmountable uncertainty
for investors, drive up borrowing costs and cause market
disruptions, according to people familiar with the meetings.
The Wall Street pushback against an idea backed by the House GOP
is part of an effort to force a resolution on raising the nation's
borrowing limit, which the Treasury has said it expects to reach
by mid-October, the report related. If no deal is reached, many
outside observers, including debt-ratings firms, assume the
government would begin prioritizing payments to bondholders over
others, such as Social Security recipients or veterans, rather
than risk defaulting on U.S. debt.
Market participants say while the U.S. might not technically
default on its debt, missing any type of payment would likely harm
the economy, the report said. "This is going to be permanently
damaging for business and consumer confidence if this happens.
People will never look at the United States Treasury the same ever
again," said Tom Simons, money-market economist at Jefferies Group
LLC, an investment bank.
The fast-approaching deadline, paired with the inability of
Republicans and Democrats to make headway in resolving it, is
starting to ripple through global markets that until recently had
appeared blase, the report further related.
* Deloitte Appoints New FAS Leaders, Promotes 13 Professionals
--------------------------------------------------------------
Deloitte's Financial Advisory Services business has appointed new
leaders for the roles of national client leader, regional managing
partner and chief operations officer. It has also promoted 13
practitioners to the positions of principal and director.
"We believe in leadership and excellence at Deloitte," said
David Williams, chief executive officer, Deloitte Financial
Advisory Services LLP. "Our newly appointed leaders and promoted
professionals embody these qualities, making Deloitte a place
where leaders thrive."
The new leaders for Deloitte FAS include:
Bob Clarke
Deloitte FAS National Client Leader
Chicago, Ill.
Nick Florio
Deloitte FAS Chief Operating Officer
New York, N.Y.
Ed Rial
Deloitte FAS East Region Managing Principal
New York, N.Y.
Lori Scott McWilliams
Deloitte FAS Central Region Managing Partner
Dallas, Texas
Deloitte FAS professionals focus in fields that include advising
clients on managing business controversy and conflict, executing
deals and maintaining regulatory compliance. The promoted
professionals are as follows:
Suba Balasubramanian
Deloitte FAS Principal
Dallas, Texas
Michele Cross
Deloitte FAS Principal
Washington, D.C.
Jenae Daley-Henry
Deloitte FAS Director
Houston, Texas
Bob Dillen
Deloitte FAS Director
New York, N.Y.
Josh Hanna
Deloitte FAS Principal
Atlanta, Ga.
Neil Heyside
Deloitte FAS Director
New York, N.Y.
Ken Kapecki
Deloitte FAS Director
Chicago, Ill.
Mark Pearson
Deloitte FAS Principal
Chicago, Ill.
Martin Petrella
Deloitte FAS Principal
Washington, D.C.
Janalyn Schreiber
Deloitte FAS Principal
Washington, D.C.
Bob Stradtman
Deloitte FAS Principal
Arlington, Va.
Shawn Suttmiller
Deloitte FAS Director
New York, N.Y.
Nancy O'Neill
Deloitte FAS Director
Charlotte, N.C.
* Greenberg Glusker Unveils 2014 Middle Market Bankruptcy Trends
----------------------------------------------------------------
Greenberg Glusker's bankruptcy group has a front seat to Southern
California middle market company woes. While the economy is
recovering, companies within the $50 million to $200 million
revenue range still have some dangerous waters to navigate. The
practice group that spearheaded successful workouts for a number
of high-profile firms this year, including Rhythm & Hues, Inc. and
Imaging3, Inc. points to the following trends companies can plan
to encounter in 2014:
* Corporate debt looms for some mid-market companies. As these
notes come due, any increase in interest rates could create a
domino effect on the enterprise, limiting the ability to raise
money to expand, hire and, perhaps of greatest concern, pay debt
without incurring fees or foreclosure.
* "Many companies right now are breathing a sigh of relief
that the Federal Reserve is signaling it will keep rates low, but
we all know that will change in due course," says Brian Davidoff,
chair of the firm's bankruptcy group. "We want our clients to
plan ahead now, lock in rates where possible and be ready for the
eventual increase in borrowing costs.
* "Robust auctions, where over a dozen NDA's are received to
participate in the bidding process, are not an unusual occurrence
in these days of low interest rates," Mr. Davidoff notes. "While
only a handful may be given the opportunity to bid, this reveals
the heightened appetite for distressed assets in the market." The
bankruptcy team at Greenberg Glusker anticipates this trend to
continue well into 2014.
* Compressed bankruptcy sales. "With limited access to outside
sources of funding, and the increased cost of steering a company
through a chapter 11, not only have more chapter 11's resulted in
a company being "in play" and put up for sale, but the time from
filing bankruptcy to final sale is much shorter than historically
has been the case. We had two matters just this year, one in
which we represented the seller, and the other the buyer, where
the company was sold within 90 days of the bankruptcy filing,"
Davidoff added. Mr. Davidoff handled the sale of Rhythm & Hues,
Inc., which was completed within 60 days of the bankruptcy filing.
"It's a good outcome because companies pay less in professional
fees and are able to satisfy their obligations."
Greenberg Glusker's bankruptcy partners Brian Davidoff,
John Melissinos, Jeffrey Krieger and Benjamin Alexander all agree
that if a bankruptcy is needed, then doing so in a growing economy
provides greater alternatives for restructuring. Low interest
rates and an increased desire for distressed assets are just a few
factors that the bankruptcy experts anticipate will continue to
drive the overall trends in 2014.
About Greenberg Glusker
Greenberg Glusker -- http://www.GreenbergGlusker.com-- represents
individuals and organizations ranging from startup ventures and
middle-market companies to larger, public and privately held
multinational corporations across a range of industries. Its
corporate and tax lawyers advise clients on all aspects of
business operations, from startup and later-stage financing,
complex compensation packages, trademark and other intellectual
property rights, to structuring terms, mergers and acquisitions,
debt and equity financing and other complex transactions.
* Alvarez & Marsal Receives Three Top Honors From TMA
-----------------------------------------------------
Global professional services firm Alvarez & Marsal (A&M) has
received three top honors from the Turnaround Management
Association (TMA): 2013 International Turnaround of the Year for
its work with Eircom Group Ltd., 2013 Mega Turnaround of the Year
for its work with Hawker Beechcraft, and 2013 Mid-Size Transaction
of the Year for its work with Arctic Glacier.
Additionally, restructuring veteran Bettina Whyte, a Managing
Director at A&M, has been inducted into the Turnaround,
Restructuring, and Distressed Investing Industry Hall of Fame for
her lasting positive impact on an industry dedicated to
stabilizing underperforming companies, rebuilding corporate value,
and retaining jobs.
Eircom Group, Ireland's largest telecommunications provider, faced
a deteriorating local economy and mounting competition from cable
operators. In early 2011, the company hired A&M to lead a
restructuring and develop a new business plan that would stem
Eircom's EBITDA decline. Fueled by intensive communication with a
large and diverse group of stakeholders -- including customers,
unions, staff, regulators, government, media, and a banking
syndicate comprised of more than 200 institutions -- A&M's Mike
Corner-Jones -- working with Eircom's advisers Morgan Stanley and
Gleacher Shacklock and its legal advisers Linklaters and Arthur
Cox -- identified examinership as the most effective corrective
plan. The examinership process combines US-style Chapter 11
restructuring provisions and the UK scheme of arrangement, whereby
Eircom applied to the Irish court for an examiner to be appointed.
The mechanism was previously untested in a case of this size and
complexity and relatively unfamiliar to non-Irish stakeholders.
As a result, A&M reduced the debt level from EUR4 billion to
EUR2.3 billion, with first-lien lenders becoming equity holders
and second lien holders receiving a share in the reinstated debt
and equity alongside the senior debt. The unprecedented process
lasted just 54 days, spanning March until June, making the
turnaround the largest, fastest and most complex restructuring in
Irish history, as well as the third largest restructuring in the
world in 2012.
Challenged by the economic downturn, Hawker Beechcraft faced
severe financial challenges in late 2011 and engaged Kirkland &
Ellis as counsel, Perella Weinberg Partners as investment banker,
and A&M as financial adviser. The A&M team, led by Scott Brubaker
and Jeffery Stegenga, steered Hawker Beechcraft through a pre-
arranged Chapter 11 where the company's prepetition funded debt
was converted to equity and its operations were overhauled,
leading to a reorganization of its business around its most
profitable product lines. Following the overwhelming acceptance
of the company's plan of reorganization, Hawker Beechcraft emerged
from Chapter 11, having shed approximately $2.6 billion in debt,
removed hundreds of millions of dollars of pension underfunding
and streamlined business operations. The process maximized value
for each of the company's creditor constituencies and provided
ongoing employment for approximately 5,100 employees. With a
renewed focus on its core Beechcraft product lines, the company
re-branded itself as the Beechcraft Company and is currently a
world-leading manufacturer of business, special mission, and
trainer/attack aircraft.
Arctic Glacier, North America's second largest packaged ice
producer and distributor serving over 75,000 retail, commercial,
and industrial customer locations throughout six provinces in
Canada and 19 states in the northeastern, central, and western
United States, suffered from substantial costs associated with an
antitrust investigation and class action litigation, poor weather,
and a significant debt load. The A&M Canada team, led by Richard
Morawetz, served as the Monitor under the CCAA and Foreign
Representative under the Chapter 15 Proceedings. A&M's
restructuring and corporate finance professionals played a
significant role, along with Arctic's financial adviser, in
implementing the sales process. Arctic Glacier ultimately
completed the sale of its business to an affiliate of H.I.G.
Capital, LLC ("HIG"), a leading global private equity investment
firm, for approximately $420 million and the assumption of trade
debt, leases, and other contractual relationships. As the lenders
were repaid in full from the proceeds of sale, A&M is currently
administering a Claims Process in its continuing role as CCAA
Monitor and Foreign Representative. Overall, the going concern
sale preserved numerous jobs and the supply chain and customer
base of the companies. The Arctic Glacier proceedings constituted
the second largest Canadian insolvency proceedings in 2012.
A&M has been honored numerous times by the Turnaround Management
Association, the only international non-profit association
dedicated to corporate renewal and turnaround management. A&M's
award-winning engagements include: Harry & David, Aquilex
Holdings, Chemtura, Rossignol, The Warnaco Group, AMERCO, Spiegel,
Inc., Treofan Germany GmbH, and Ihr Platz GmbH & Co.
About Alvarez & Marsal
Alvarez & Marsal (A&M) -- http://www.alvarezandmarsal.com-- is a
global professional services firm specializing in turnaround and
interim management, performance improvement and business advisory
services. A&M delivers specialist operational, consulting and
industry expertise to management and investors seeking to
accelerate performance, overcome challenges and maximize value
across the corporate and investment lifecycles. Founded in 1983,
the firm is known for its distinctive restructuring heritage,
hands-on approach and relentless focus on execution and results.
* Recent Small-Dollar & Individual Chapter 11 Filings
-----------------------------------------------------
In re Alfred Husary
Bankr. N.D. Cal. Case No. 13-11837
Chapter 11 Petition filed September 30, 2013
In re Eagle Mountain Golf Club, LLC
Bankr. D. Colo. Case No. 13-26516
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/cob13-26516.pdf
represented by: Jeffrey Weinman, Esq.
WEINMAN & ASSOCIATES, P.C.
E-mail: jweinman@epitrustee.com
In re 3333 Main, LLC
Bankr. D. Conn. Case No. 13-51533
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/ctb13-51533.pdf
represented by: James M. Nugent, Esq.
HARLOW, ADAMS, AND FRIEDMAN, P.C.
E-mail: jmn@quidproquo.com
In re Rooster Tail, LLC
Bankr. D. Conn. Case No. 13-51536
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/ctb13-51536.pdf
represented by: James M. Nugent, Esq.
HARLOW, ADAMS, AND FRIEDMAN, P.C.
E-mail: jmn@quidproquo.com
In re Hygrade Timber Company, Inc.
Bankr. M.D. Fla. Case No. 13-13022
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/flmb13-13022.pdf
represented by: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
E-mail: Buddy@tampaesq.com
In re Tab Foods LLC
aka Captain D's Seafood
Captain D's
Bankr. N.D. Fla. Case No. 13-40607
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/flnb13-40607.pdf
represented by: Emilian Bucataru, Esq.
LAW OFFICE OF EMILIAN BUCATARU, PLLC
E-mail: emilian@bucataru.com
In re Christine Collett
Bankr. S.D. Fla. Case No. 13-33404
Chapter 11 Petition filed September 30, 2013
In re Marie Louis
Bankr. S.D. Fla. Case No. 13-33413
Chapter 11 Petition filed September 30, 2013
In re George James
Bankr. N.D. Ga. Case No. 13-71264
Chapter 11 Petition filed September 30, 2013
In re Investment Parcel, LLC
Bankr. N.D. Ga. Case No. 13-71336
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/ganb13-71336.pdf
represented by: Howard P. Slomka, Esq.
SLOMKA LAW FIRM
E-mail: info@slomkalawfirm.com
In re SDJ Parks Group, LLC
Bankr. N.D. Ga. Case No. 13-71349
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/ganb13-71349.pdf
represented by: Michael J. Jacobs, Esq.
JACOBS LEGAL, LLC
E-mail: mike@mikejacobslegal.com
In re Mt. Zion Baptist Church, Inc.
Bankr. N.D. Ga. Case No. 13-71490
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/ganb13-71490.pdf
represented by: Michael D. Robl, Esq.
THE SPEARS & ROBL LAW FIRM, LLC
E-mail: mdrobl@tsrlaw.com
In re Augusta Praise Tabernacle Church, Inc.
fka Augusta Praise Tabernacle, Inc.
Bankr. S.D. Ga. Case No. 13-11819
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/gasb13-11819.pdf
represented by: James T. Wilson, Jr., Esq.
JAMES T. WILSON, JR., P.C.
E-mail: brooke@jtwilsonlaw.com
In re Inverness Equities, LLC
Bankr. N.D. Ill. Case No. 13-38246
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/ilnb13-38246.pdf
represented by: Julia Jensen Smolka, Esq.
DIMONTE & LIZAK, LLC
E-mail: jjensen@dimonteandlizak.com
In re 259 Johnson Avenue, Inc.
Bankr. D.N.J. Case No. 13-31391
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/njb13-31391.pdf
represented by: Jeffrey R. Pocaro, Esq.
E-mail: jrpesq@aol.com
In re Nasscond, Inc.
Bankr. E.D.N.Y. Case No. 13-74967
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/nyeb13-74967.pdf
Filed as Pro Se
In re Families Two Enterprises, LLC
Bankr. E.D.N.C. Case No. 13-06096
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/nceb13-06096.pdf
represented by: J.M. Cook, Esq.
J.M. COOK, P.A.
E-mail: J.M.Cook@jmcookesq.com
In re Newport South, LLC
dba Cuban Revolution Restaurant & Bar
Bankr. E.D.N.C. Case No. 13-06107
Chapter 11 Petition filed September 30, 2013
See http://bankrupt.com/misc/nceb13-06107.pdf
represented by: Jason L. Hendren, Esq.
HENDREN & MALONE, PLLC
E-mail: jhendren@hendrenmalone.com
In re Cleo Land
Bankr. M.D.N.C. Case No. 13-11309
Chapter 11 Petition filed September 30, 2013
In re Laboratorio Clinico Domench, Inc.
Bankr. D.P.R. Case No. 13-08044
Chapter 11 Petition filed September 30, 2013
represented by: Antonio Fiol Matta, Esq.
E-mail: afiollaw@gmail.com
In re Christopher Bean
Bankr. E.D. Tex. Case No. 13-42372
Chapter 11 Petition filed September 30, 2013
In re Jerron Hill
Bankr. E.D. Tex. Case No. 13-42379
Chapter 11 Petition filed September 30, 2013
In re Carlos Freymann, III, DDS, PA
Bankr. W.D. Tex. Case No. 13-52643
Chapter 11 Petition filed September 30, 2013
In re Poppy's Place, LLC
Bankr. D. Ariz. Case No. 13-17172
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/azb13-17172.pdf
represented by: Blake D. Gunn, Esq.
LAW OFFICE OF BLAKE D. GUNN
E-mail: blake.gunn@gunnbankruptcyfirm.com
In re FoodGems, Inc.
Bankr. C.D. Cal. Case No. 13-34233
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/cacb13-34233.pdf
represented by: Mufthiha Sabaratnam, Esq.
LAW OFFICES OF MUFTHIHA SABARATNAM
E-mail: pke115mfs@yahoo.com
In re Genero Educational Multiplex, Inc.
dba Diamantes Banquet Center
Bankr. S.D. Fla. Case No. 13-33657
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/flsb13-33657.pdf
represented by: Peter E. Shapiro, Esq.
SHAPIRO LAW
E-mail: pshapiro@shapirolawpa.com
In re Atlas Investment Properties, LLC
Bankr. N.D. Ga. Case No. 13-12474
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/ganb13-12474.pdf
represented by: J. Nevin Smith, Esq.
SMITH CONERLY, LLP
E-mail: cstembridge@smithconerly.com
In re Infinite Pengar Developement Corporation
Bankr. N.D. Ga. Case No. 13-71585
Chapter 11 Petition filed October 1, 2013
Filed as Pro Se
In re Floyd J. Holdings, LLC
Bankr. N.D. Ga. Case No. 13-71609
Chapter 11 Petition filed October 1, 2013
Filed as Pro Se
In re Hearthside Homebuilders, Inc.
Bankr. N.D. Ill. Case No. 13-38661
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/ilnb13-38661.pdf
represented by: Thomas W. Toolis, Esq.
JAHNKE, SULLIVAN & TOOLIS, LLC
E-mail: twt@jtlawllc.com
In re Robert Panozzo
Bankr. N.D. Ill. Case No. 13-38755
Chapter 11 Petition filed October 1, 2013
In re Shreejimaharaj Corporation
dba Super 8 Hotel
Bankr. S.D. Ind. Case No. 13-92269
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/insb13-92269.pdf
represented by: Charity B. Neukomm, Esq.
SEILLER WATERMAN, LLC
E-mail: neukomm@derbycitylaw.com
In re Groeb Farms, Inc.
Bankr. E.D. Mich. Case No. 13-58196
Chapter 11 Petition filed October 1, 2013
represented by: Judy A. O'Neill, Esq.
E-mail: joneill@foley.com
In re My Jabez, Inc.
dba Bj's Hotdog Shoppe
Bankr. D. Minn. Case No. 13-34749
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/mnb13-34749.pdf
Filed as Pro Se
In re Nilda Union Avenue, LLC
Bankr. D.N.J. Case No. 13-31551
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/njb13-31551.pdf
represented by: Noah M. Burstein, Esq.
NOAH M. BURSTEIN, ATTORNEY AT LAW
E-mail: bursteinlawyer@aol.com
In re BLH Imports
Bankr. E.D.N.Y. Case No. 13-45966
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/nyeb13-45966.pdf
represented by: Todd Cushner, Esq.
GARVEY TIRELLI & CUSHNER, LTD.
E-mail: Todd@cushnergarvey.com
In re Eddie Land Masonry Contractor, Inc.
Bankr. M.D.N.C. Case No. 13-11314
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/ncmb13-11314.pdf
represented by: Erik Mosby Harvey, Esq.
LIAO HARVEY, P.C.
E-mail: emh@carolinalawpartners.com
In re Penn Data Services, Inc.
Bankr. W.D. Pa. Case No. 13-24153
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/pawb13-24153.pdf
represented by: Christopher M. Frye, Esq.
STEIDL & STEINBERG
E-mail: chris.frye@steidl-steinberg.com
In re Petemore Properties and Investments, Inc.
Bankr. D.P.R. Case No. 13-08148
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/prb13-08148.pdf
represented by: Juan A. Santos Berrios, Esq.
SANTOS-BERRIOS LAW OFFICES, LLC
E-mail: santosberriosbk@gmail.com
In re Pedro Vega Ruiz
Bankr. D.P.R. Case No. 13-08150
Chapter 11 Petition filed October 1, 2013
In re Abimael Rosario Marrero
Bankr. D.P.R. Case No. 13-08161
Chapter 11 Petition filed October 1, 2013
In re Pedro Lopez-Munoz
Bankr. D.P.R. Case No. 13-08171
Chapter 11 Petition filed October 1, 2013
In re Shree Shiv Krupa Inc.
dba Johnathons Inn
Bankr. E.D. Tex. Case No. 13-10522
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/txeb13-10522.pdf
represented by: Frank J. Maida, Esq.
MAIDA LAW FIRM
E-mail: maidalawfirm@gt.rr.com
In re OZ Fitness MT, Inc.
Bankr. E.D. Wash. Case No. 13-03893
Chapter 11 Petition filed October 1, 2013
See http://bankrupt.com/misc/waeb13-03893.pdf
represented by: John D. Munding, Esq.
CRUMB & MUNDING, P.S.
E-mail: munding@crumb-munding.com
In re Huntsville Country Club, Inc.
Bankr. N.D. Ala. Case No. 13-83085
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/alnb13-83085.pdf
represented by: Stuart M. Maples, Esq.
MAPLES & RAY, P.C.
E-mail: smaples@maplesandray.com
In re Dish, LLC
Bankr. D. Alaska Case No. 13-00472
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/akb13-00472.pdf
represented by: David H. Bundy, Esq.
DAVID H. BUNDY, P.C.
E-mail: dhb@alaska.net
In re 23759 Roscoe LLC
Bankr. C.D. Cal. Case No. 13-16395
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/cacb13-16395.pdf
represented by: Michael H. Raichelson, Esq.
THE LAW OFFICES OF MICHAEL H. RAICHELSON
E-mail: mhr@cabkattorney.com
In re Broadway Farmers Market, Inc.
Bankr. S.D. Cal. Case No. 13-09834
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/casb13-01834.pdf
represented by: David L. Speckman, Esq.
SPECKMAN & ASSOCIATES
E-mail: speckmanandassociates@gmail.com
In re GSS Wash & Dry, LLC
Bankr. D. Conn. Case No. 13-51562
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/ctb13-51562.pdf
represented by: Peter L. Ressler, Esq.
GROOB RESSLER & MULQUEEN
E-mail: ressmul@yahoo.com
In re Walter Kyles
Bankr. M.D. Fla. Case No. 13-13207
Chapter 11 Petition filed October 3, 2013
In re Jorge Napoles
Bankr. S.D. Fla. Case No. 13-33820
Chapter 11 Petition filed October 3, 2013
In re Tejinder Singh
Bankr. N.D. Ill. Case No. 13-38953
Chapter 11 Petition filed October 3, 2013
In re S&H 11-23 LLC
Bankr. D. Mass. Case No. 13-15865
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/mab13-15865.pdf
represented by: Michael J. Goldberg, Esq.
CASNER & EDWARDS, LLP
E-mail: goldberg@casneredwards.com
In re Little Havana Tobacco, Inc.
Bankr. D. Minn. Case No. 13-44849
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/mnb13-44849.pdf
represented by: William A. Vincent, Esq.
WILLIAM A. VINCENT, P.A.
E-mail: wavpatax@aol.com
In re Dally, LLC
Bankr. W.D. Mo. Case No. 13-61524
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/mowb13-61524.pdf
represented by: David E. Schroeder, Esq.
DAVID SCHROEDER LAW OFFICES, P.C.
E-mail: bk1@dschroederlaw.com
In re The Tots' Spot, LLC
Bankr. W.D. Mo. Case No. 13-61525
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/mowb13-61525.pdf
represented by: David E. Schroeder, Esq.
DAVID SCHROEDER LAW OFFICES, P.C.
E-mail: bk1@dschroederlaw.com
In re Davinder Bajwa
Bankr. D. Nev. Case No. 13-51935
Chapter 11 Petition filed October 3, 2013
In re Derry & Webster, LLC
Bankr. D. N.H. Case No. 13-12432
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/nhb13-12432.pdf
represented by: Robert L. O'Brien, Esq.
O'BRIEN LAW
E-mail: roboecf@gmail.com
In re Life Trucking, Inc.
Bankr. D.N.J. Case No. 13-31847
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/njb13-31847.pdf
represented by: Jeffrey A. Cooper, Esq.
RABINOWITZ, LUBETKIN & TULLY, LLC
E-mail: jcooper@rltlawfirm.com
In re Chopper DDS, Inc.
Bankr. D.N.J. Case No. 13-31852
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/njb13-31852.pdf
represented by: Jeffrey A. Cooper, Esq.
RABINOWITZ, LUBETKIN & TULLY, LLC
E-mail: jcooper@rltlawfirm.com
In re Cosmetic Surgery & Dermatology, PLLC
Bankr. S.D.N.Y. Case No. 13-13241
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/nysb13-13241.pdf
represented by: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
E-mail: alla@kachanlaw.com
In re Paul McClary
Bankr. E.D. Tenn. Case No. 13-14977
Chapter 11 Petition filed October 3, 2013
In re Barton Enterprises, Inc.
aka About Time
Fineline Packaging
Bankr. N.D. Tex. Case No. 13-35154
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/txnb13-35154.pdf
represented by: Edwin Paul Keiffer, Esq.
WRIGHT GINSBERG BRUSILOW, P.C.
E-mail: pkeiffer@wgblawfirm.com
In re BST Properties, LLC
Bankr. D. Utah Case No. 13-31281
Chapter 11 Petition filed October 3, 2013
See http://bankrupt.com/misc/utb13-31281.pdf
represented by: Andres' Diaz, Esq.
DIAZ & LARSEN
E-mail: courtmail@adexpresslaw.com
In re Brian Nichols
Bankr. W.D. Wis. Case No. 13-14876
Chapter 11 Petition filed October 3, 2013
In re ISIF Madfish, Inc.
aka Little Madfish
Bankr. N.D. Cal. Case No. 13-45568
Chapter 11 Petition filed October 4, 2013
See http://bankrupt.com/misc/canb13-45568.pdf
represented by: R. Kenneth Bauer, Esq.
LAW OFFICES OF R. KENNETH BAUER
E-mail: rkbauerlaw@gmail.com
In re Robin Cervantes
Bankr. S.D. Cal. Case No. 13-9854
Chapter 11 Petition filed October 4, 2013
In re Robert Martin
Bankr. M.D. Fla. Case No. 13-06040
Chapter 11 Petition filed October 4, 2013
In re Tibar, LLC
Bankr. M.D. Fla. Case No. 13-13301
Chapter 11 Petition filed October 4, 2013
See http://bankrupt.com/misc/flmb13-13301.pdf
represented by: Lisa M. Castellano, Esq.
BECKER & POLIAKOFF
E-mail: lcastellano@becker-poliakoff.com
In re Alfred Berkman
Bankr. S.D. Fla. Case No. 13-33971
Chapter 11 Petition filed October 4, 2013
In re Mid-Valley Dairy, LLC
aka Cardozo Dairy
Bankr. D. Idaho Case No. 13-41245
Chapter 11 Petition filed October 4, 2013
See http://bankrupt.com/misc/idb13-41245.pdf
represented by: D. Blair Clark, Esq.
LAW OFFICES OF D. BLAIR CLARK, PLLC
E-mail: dbc@dbclarklaw.com
In re Kent Woods
Bankr. N.D. Ill. Case No. 13-39194
Chapter 11 Petition filed October 4, 2013
In re Abeer of Flint, Inc.
dba H & N Market
Bankr. E.D. Mich. Case No. 13-33387
Chapter 11 Petition filed October 4, 2013
See http://bankrupt.com/misc/mieb13-33387.pdf
represented by: Jeffrey A. Chimovitz, Esq.
E-mail: jeffchimovitz@gmail.com
In re James Holland
Bankr. N.D. Miss. Case No. 13-14151
Chapter 11 Petition filed October 4, 2013
In re Renault Enterprises, LLC
Bankr. S.D. Miss. Case No. 13-03032
Chapter 11 Petition filed October 4, 2013
See http://bankrupt.com/misc/msnb13-03032.pdf
represented by: Tracee Ousley Darby, Esq.
THE DARBY LAW FIRM
E-mail: thedarbylawfirm@yahoo.com
In re Chaya Muskah Restaurant Corporation
dba Kasbah BBQ & Grill
Bankr. S.D.N.Y. Case No. 13-13250
Chapter 11 Petition filed October 4, 2013
See http://bankrupt.com/misc/nysb13-13250.pdf
represented by: Edward N. Gewirtz, Esq.
BRONSTEIN, GEWIRTZ & GROSSMAN, LLC
E-mail: chona@bgandg.com
In re James Maurino
Bankr. W.D.N.Y. Case No. 13-12667
Chapter 11 Petition filed October 4, 2013
In re Kimberly Ray
Bankr. M.D Tenn. Case No. 13-8738
Chapter 11 Petition filed October 4, 2013
In re Gregory Mauchley
Bankr. D. Utah Case No. 13-31334
Chapter 11 Petition filed October 4, 2013
In re R.Myers & Associates, LLC
Bankr. S.D. Ind. Case No. 13-10205
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/insb13-10205.pdf
represented by: Harley K. Means, Esq.
KROGER GARDIS & REGAS, LLP
E-mail: hkm@kgrlaw.com
In re A & J Collision, Inc.
Bankr. E.D. Ark. Case No. 13-15535
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/areb13-15535.pdf
represented by: Kevin P. Keech, Esq.
KEECH LAW FIRM, P.A.
E-mail: kkeech@keechlawfirm.com
In re David Yamashita
Bankr. N.D. Cal. Case No. 13-45605
Chapter 11 Petition filed October 7, 2013
In re Timeshares Direct, Inc.
dba Timeshares by Owner Miami-Dade
Timeshares by Owner Deland
Timeshares by Owner
Timeshares by Owner Ft. Lauderdale
Timsehares by Owner of Altamonte Springs
Timeshares by Owner of Deland
Timeshares by Owner of Central Florida
Timshares by Owner of Jacksonville
Timeshares by Owner of Palm Coast
Timeshares by Owner of Miami Gardens
Timeshares by Owner of Titusville
Timeshares by Owner of Seminole County
Timeshares by Owner of Flagler Beach
Timeshares by Owner of Daytona Beach
Bankr. M.D. Fla. Case No. 13-12414
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/flmb13-12414.pdf
represented by: Kenneth B. Robinson, Esq.
RICE PUGATCH ROBINSON & SCHILLER, P.A.
E-mail: krobinson.ecf@rprslaw.com
In re Rover Technologies, LLC
Bankr. M.D. Fla. Case No. 13-13355
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/flmb13-13355.pdf
represented by: Michael P. Brundage, Esq.
PHELPS DUNBAR, LLP
E-mail: michael.brundage@phelps.com
In re Academy of Excellence III, Inc.
dba J T A Schools
fdba Mary Sears Children's Academy
Bankr. N.D. Ill. Case No. 13-39301
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/ilnb13-39301.pdf
represented by: Forrest L. Ingram, Esq.
FORREST L. INGRAM, P.C.
E-mail: fingram@fingramlaw.com
In re Christian Madsen
Bankr. D. Md. Case No. 13-26982
Chapter 11 Petition filed October 7, 2013
In re Jill Madsen
Bankr. D. Md. Case No. 13-26982
Chapter 11 Petition filed October 7, 2013
In re Bruce Muller
Bankr. D. Mont. Case No. 13-61338
Chapter 11 Petition filed October 7, 2013
In re Camden Empowerment Zone Corporation
Bankr. D.N.J. Case No. 13-32022
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/njb13-32022.pdf
represented by: Avram D. White, Esq.
LAW OFFICES OF AVRAM D. WHITE, ESQ.
E-mail: clistbk3@gmail.com
In re Myra Curtis
Bankr. E.D.N.Y. Case No. 13-46066
Chapter 11 Petition filed October 7, 2013
In re Blink Group Management LP
Bankr. E.D.N.Y. Case No. 13-75100
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/nyeb13-75100.pdf
represented by: Edward J. Grossman, Esq.
LAW OFFICES OF EDWARD J. GROSSMAN
E-mail: eglawoffice@optonline.net
In re Prime Properties of NY1 Inc.
Bankr. S.D.N.Y. Case No. 13-13270
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/nysb13-13270.pdf
represented by: Andrew Molbert, Esq.
ANDREW MOLBERT ATTORNEY AT LAW
In re Cordovano's Fireside Manor, LLC
Bankr. W.D.N.Y. Case No. 13-12685
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/nywb13-12685.pdf
represented by: Robert B. Gleichenhaus, Esq.
GLEICHENHAUS, MARCHESE & WEISHAAR, P.C.
E-mail: RBG_GMF@hotmail.com
In re Merriel, Inc.
dba Kitsch
Curious Goods
Bankr. E.D.N.C. Case No. 13-06308
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/nceb13-06308.pdf
represented by: Amy M. Currin, Esq.
OLIVER FRIESEN CHEEK, PLLC
E-mail: efile@ofc-law.com
In re Murphy bros Son & Daughter
Bankr. E.D. Pa. Case No. 13-18776
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/paeb13-18776.pdf
Filed as Pro Se
In re DANTRA Healthcare, Inc.
Bankr. E.D. Va. Case No. 13-35419
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/vaeb13-35419.pdf
represented by: Robert S. Westermann, Esq.
HIRSCHLER FLEISCHER, P.C.
E-mail: rwestermann@hf-law.com
In re King George Medical Center, Ltd.
dba KGMC Family Practice
Gateway Medical Urgent Care
King George Pediatrics
Bankr. E.D. Va. Case No. 13-35421
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/vaeb13-35421.pdf
represented by: Robert S. Westermann, Esq.
HIRSCHLER FLEISCHER, P.C.
E-mail: rwestermann@hf-law.com
In re Southpointe OBGYN, LLC
Bankr. E.D. Va. Case No. 13-35422
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/vaeb13-35422.pdf
represented by: Robert S. Westermann, Esq.
HIRSCHLER FLEISCHER, P.C.
E-mail: rwestermann@hf-law.com
In re Kent Pruett
Bankr. E.D. Wash. Case No. 13-03976
Chapter 11 Petition filed October 7, 2013
In re Hubbard & Associates NA, Inc.
Bankr. E.D. Wis. Case No. 13-33186
Chapter 11 Petition filed October 7, 2013
See http://bankrupt.com/misc/wieb13-33186.pdf
represented by: Paul A. Strouse, Esq.
STROUSE LAW OFFICES
E-mail: paul@bankruptcyinmilwaukee.com
In re Abdorreza Movassaghi
Bankr. C.D. Cal. Case No. 13-16462
Chapter 11 Petition filed October 8, 2013
In re Anthony Lawrence da Costa
dba Tri-Star Car Wash and Coffee Villa
Tri-Star Car Wash in Stonebrook
fdba Airport Mini-Storage
North Tulare Mini-Storage
Bankr. E.D. Cal. Case No. 13-16596
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/caeb13-16596.pdf
represented by: Hagop T. Bedoyan, Esq.
KLEIN, DENATALE, GOLDNER
E-mail: hbedoyan@kleinlaw.com
In re DBS Air, LLC
Bankr. E.D. Cal. Case No. 13-33102
Chapter 11 Petition filed October 8, 2013
represented by: Riley C. Walter, Esq.
In re Thai Gourmet Group, LLC
dba Coriander Gourmet Thai
Bankr. N.D. Cal. Case No. 13-32227
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/canb13-32227.pdf
represented by: Reno F.R. Fernandez, Esq.
MACDONALD FERNANDEZ, LLP
E-mail: reno@macfern.com
In re Hung Bui
Bankr. N.D. Cal. Case No. 13-55345
Chapter 11 Petition filed October 8, 2013
In re Ambassadors For Christ Praise Ministries
Bankr. M.D. Fla. Case No. 13-12492
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/flmb13-12492.pdf
represented by: Paulette Hamilton, Esq.
LAW OFFICE OF PAULETTE HAMILTON, P.A.
E-mail: Phamilton@paulettehamiltonPA.com
In re Samari Rolle
Bankr. S.D. Cal. Case No. 13-34269
Chapter 11 Petition filed October 8, 2013
In re Shaunda Marie Brown
Bankr. N.D. Ill. Case No. 13-39422
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/ilnb13-39422.pdf
represented by: Edmund G. Urban, III, Esq.
URBAN & BURT, LTD.
E-mail: iii@urbanburt.com
In re Mark Resnick
Bankr. D. Mass. Case No. 13-15929
Chapter 11 Petition filed October 8, 2013
In re Madison Heights Group, LLC
Bankr. E.D. Mich. Case No. 13-58587
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/mieb13-58587.pdf
represented by: Peter Steven Halabu, Esq.
E-mail: peter@halabu.net
In re H & H Realty, LLC
Bankr. E.D. Mich. Case No. 13-58588
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/mieb13-58588.pdf
represented by: Peter Steven Halabu, Esq.
E-mail: peter@halabu.net
In re H & H Royal Oak, LLC
Bankr. E.D. Mich. Case No. 13-58589
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/mieb13-58589.pdf
represented by: Peter Steven Halabu, Esq.
E-mail: peter@halabu.net
In re Monroe Factory Shops, LLC
Bankr. E.D. Mich. Case No. 13-58590
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/mieb13-58590.pdf
represented by: Peter Steven Halabu, Esq.
E-mail: peter@halabu.net
In re M&M Manufacturing Company, Inc.
Bankr. W.D. Mich. Case No. 13-07899
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/miwb13-07899.pdf
represented by: Cody H. Knight, Esq.
RAYMAN & KNIGHT
E-mail: courtmail@raymanstone.com
In re Seth Daniels
Bankr. D.N.J. Case No. 13-32041
Chapter 11 Petition filed October 8, 2013
In re Rent2Buy, Inc.
fka Automoti Group, Inc.
Bankr. D.N.J. Case No. 13-32052
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/njb13-32052.pdf
represented by: Melinda D. Middlebrooks, Esq.
MIDDLEBROOKS SHAPIRO, P.C.
E-mail: middlebrooks@middlebrooksshapiro.com
In re Fadi Salim
Bankr. D.N.J. Case No. 13-32109
Chapter 11 Petition filed October 8, 2013
In re Richard Faber
Bankr. S.D.N.Y. Case No. 13-13280
Chapter 11 Petition filed October 8, 2013
In re Grand Island Pizza, Inc.
Bankr. W.D.N.Y. Case No. 13-12686
Chapter 11 Petition filed October 8, 2013
See http://bankrupt.com/misc/nywb13-12686.pdf
represented by: Arthur G. Baumeister, Jr., Esq.
AMIGONE, SANCHEZ, ET AL
E-mail: abaumeister@amigonesanchez.com
In re Peter Vank
Bankr. N.D. Okla. Case No. 13-12397
Chapter 11 Petition filed October 8, 2013
*********
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., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, 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. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***