/raid1/www/Hosts/bankrupt/TCR_Public/131105.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, November 5, 2013, Vol. 17, No. 307
Headlines
1617 WESTCLIFF: Plan Outline Hearing Moved to Nov. 20
A&E 128: Case Summary & 12 Largest Unsecured Creditors
ADAYANA INC: Proposes Dec. 4 Auction for All Assets
ADAYANA INC: Files Schedules of Assets and Liabilities
AFFIRMATIVE INSURANCE: Appoints President and COO
ALLENS INC: Obtains Interim $114-Mil. DIP Loan Approval
ALLENS INC: Has Interim Authority to Use Cash Collateral
ALLENS INC: Gets Financing With No Prejudice to PACA Growers
ALLENS INC: Section 341(a) Meeting Scheduled for December 2
ALYDIAN INC: Bitcoin Firm Files for Bankruptcy
AMARILLO BIOSCIENCES: Interferon Developer Files in Texas
AMERICAN AIRLINES: Seeks Exit From Cantor Claims in 9/11 Row
AMERICAN BEACON: S&P Assigns 'BB-' ICR & Sr. Secured Debt Rating
ANYTHINGIT INC: Posts $673K Net Loss in Q3 Ended Sept. 30
ARI-RC 6: Third Wave Debtors Have Interim Nod to Use Cash
ARCHDIOCESE OF MILWAUKEE: Appeals Court Delays Ruling on Judge
ARRAY BIOPHARMA: Has $15.68-Mil. Net Loss in Sept. 30 Quarter
AUDIOEYE INC: Reports $871K Net Loss in Q3 Ended Sept. 30
BANK OF THE CAROLINAS: Reports $147,000 Net Income in Q3
BERGENFIELD SENIOR HOUSING: Seeks Plan Approval at Dec. 10 Hearing
BLACKBERRY LTD: Abandons Sale Process, CEO to Leave
BLACKBOARD INC: S&P Assigns 'B+' Rating to Proposed $867.2MM Loan
BLUEJAY PROPERTIES: Wants Trustee Appointment Rescinded or Stayed
BOISE PAPER: S&P Raises CCR From 'BB', Removed From CreditWatch
BUILDING #19: Seeks Authority to Use Cash Collateral
BUILDING #19: To Conduct Going Out of Business Sales
CASA CASUARINA: Wants Plan Filing Period Extended Until Dec. 28
CELL THERAPEUTICS: Incurs $22.4 Million Net Loss in 3rd Quarter
CENGAGE LEARNING: Can Hire Ocean Tomo as Valuation Consultants
CENTRAL COVENTRY FIRE DISTRICT: Judge Cracks Down on Taxpayers
CHEMTURA CORP: Posts $44-Mil. Net Loss in Third Quarter
CHINA NATURAL: Seeks 'Exclusivity' Until Feb. 4
CITY NATIONAL: Fitch Rates $100MM Non-Cumulative Pref. Stock 'BB'
CLINICA REAL: Wants Plan Filing Period Extended Until March 13
COMSTOCK MINING: Posts $4.52-Mil. Net Loss in Sept. 30 Quarter
COSTA BONITA: Has Until Dec. 24 to File Amended Plan
CONQUEST SANTA FE: Files Motion for Dismissal of Chapter 11 Case
CONQUEST SANTA FE: Can Access LPP Cash Collateral Until Dec. 31
CROSBY WORLDWIDE: S&P Assigns B CCR & Rates $595MM Secured Debt B
CROWN HOLDINGS: Moody's Puts Ba1 CFR on Review for Downgrade
DEE ALLEN RANDALL: Trustee Wins Confirmation of Plan
DETROIT, MI: Judge May Not Rule Soon on Constitution
DRYSHIPS INC: Posts $63.9-Mil. Net Loss in Third Quarter
EDGMONT GOLF CLUB: Can Use Cash Collateral Until Dec. 8
EDISON MISSION: Chevron Asks Judge to Reconsider Ruling
ENERGY FUTURE: Interest Payment Buys Time to Restructure
ENNIS COMMERCIAL: May Hire Terence Long as Manager
ESHNAM HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors
EWGS INTERMEDIARY: Chapter 11 Petition Filed
FILTRATION GROUP: Moody's Assigns B2 CFR & Rates 1st Lien Debt B1
FINJAN HOLDINGS: Amends 21.5 Million Shares Resale Prospectus
FIRST CONNECTICUT: Plan Filing Period Extended Until Nov. 13
FIRST DATA: Offering $1 Billion of Senior Subordinated Notes
FLORIDA GAMING: Has Court's Final Nod to Use Cash Collateral
FREESCALE SEMICONDUCTOR: Fitch Rates $960MM Sr. Sec. Notes 'CCC+'
FREESEAS INC: Issues 4 Million Add'l Settlement Shares to Crede
FRIENDFINDER NETWORKS: Second Amended Plan Filed
FURNITURE BRANDS: Can Employ KPMG as Auditors and Tax Consultants
FURNITURE BRANDS: May Hire PwC as Accounting and Tax Advisors
GRAND CENTREVILLE: Can Employ Tavenner & Beran as Counsel
GRAND CENTREVILLE: Mendelson & Mendelson Okayed as Accountant
GRAND CENTREVILLE: Can Employ Walther as Special Counsel
GREEN FIELD ENERGY: S&P Cuts & Withdraws Secured Debt Rtng to 'D'
GREEN FIELD ENERGY: Has Interim Authority to Obtain $15MM DIP Loan
GREEN FIELD ENERGY: Hires Prime Clerk as Claims & Noticing Agent
GREEN FIELD ENERGY: Has Interim Authority to Pay Critical Vendors
GREEN FIELD ENERGY: Section 341(a) Meeting Set on December 5
GREEN INNOVATIONS: Has $2.28-Mil. Net Loss in Sept. 30 Quarter
INSTITUTO MEDICO: Wilma Vasquez Hospital Owner in Chapter 11
IRISH BANK: Nov. 6 Hearing on Recognition of Foreign Proceeding
JAGUAR FINANCIAL: Reviews TSX Listing Compliance Requirements
JEFFERSON COUNTY, AL: Judge Delays Confirmation Hearing to Nov. 20
LAGUNA BRISAS: Proposes to Auction Best Western Hotel
LEVEL 3: Incurs $21 Million Net Loss in Third Quarter
LEVI STRAUSS: S&P Raises CCR to 'BB-' on Improved Profitability
LIC CROWN: Court Sets Nov. 25 as Claims Bar Date
LIGHTSQUARED INC: Sues GPS Makers, Industry Over Spectrum Issues
LIGHTSQUARED INC: Sues GPS Makers, Industry Groups Over GPS Issues
MACCO PROPERTIES: NV Brooks Objects to Case Dismissal Bid
MAXCOM TELECOMUNICACIONES: CEO Ferrandiz Quits; Anaya Takes Over
MAXCOM TELECOMUNICACIONES: Posts Ps.91-Mil. Net Loss in 3Q13
MAXCOM TELECOMUNICACIONES: 52.21% of Shares Subscribed and Paid
MCS AMS: S&P Assigns 'B' CCR & Rates Sr. Secured Facilities 'B'
MEDICAL SPECIALTIES: S&P Gives 'B' CCR & Rates New $170MM Debt 'B'
MEDICURE INC: Incurs C$502,000 Net Loss in First Quarter 2014
MF GLOBAL: Suing JC Flowers Over Dividends Paid Before Collapse
MONTANA ELECTRIC: Four Co-op Members File Amended Plan Outline
N.M. MOODY: Case Summary & 6 Largest Unsecured Creditors
N.P.S. INC.: Dayton Parking Lots in Receivership
NEWPARK RESOURCES: S&P Raises CCR & Sr. Unsec. Ratings to 'B+'
NETFLIX INC: S&P Revises Outlook to Stable & Affirms 'BB-' CCR
NEW WOOD CORPORATION: Port of Grays Harbor Looks to Buy Facility
NII HOLDINGS: S&P Puts 'B-' CCR on CreditWatch with Negative
NORTH TEXAS BANCSHARES: Creditors Rip Plan to Sell Dallas Bank
NOVOGEN LIMITED: Grant Thornton Raises Going Concern Doubt
OHC/PARK MANOR: Texas Senior Living Apartment Owner Files in Waco
OSX BRAZIL: Says Bankruptcy Isn't Out Of the Cards
ORECK CORPORATION: Plan Filing Period Extended Until Dec. 2
ORMET CORP: Ohio Regulator Says AEP Must Supply Power to Facility
PATRIOT COAL: Aims to Secure $576MM Bankruptcy-Exit Loan
PATRIOT COAL: Barclays, Deutsche Bank to Fund Chapter 11 Plan
PATRIOT COAL: Files Motions to Assume Leases Or Executory Contract
PATRIOT COAL: Alpha Natural Files Limited Objection to Disclosures
PATRIOT COAL: Asks Court's OK to Enter Into Exit Financing Papers
POLYMER GROUP: S&P Affirms 'B' CCR and Removes It From CreditWatch
PORTER BANCORP: Incurs $168,000 Net Loss in Third Quarter
QUANTUM FUEL: Seamans Capital Held 7.2% Equity Stake at Oct. 30
RECEPTOS INC: Reports $15.56-Mil. Net Loss in Q3 Ended Sept. 30
RHYTHM & BLUES: Dec. 13 Combined Hearing on Liquidating Plan
SEMGROUP LP: Sides With Barclays in Trustee's $143MM Fee Appeal
SPIN HOLDCO: S&P Affirms 'B' Corp. Credit Rating; Outlook Stable
STRATUM HOLDINGS: Posts $51K Net Loss in Q3 Ended Sept. 30
TLO LLC: Files Liquidating Plan With Auction Set for Nov. 20
TMT GROUP: Accused of Iranian Oil Trafficking by Ch. 11 Creditor
TNP STRATEGIC: Dec. 23 Class Action Lead Plaintiff Deadline Set
UNIQUE BROADBAND: Court Grants Leave for Appeal of Disputed Claims
UNITED CONTINENTAL: Moody's Rates $300MM Sr. Secured Notes 'B2'
UNITED CONTINENTAL: S&P Rates $300MM Sr. Unsec. Notes Due 2020 'B'
UNIVERSAL AMERICAN: A.M. Best Affirms 'bb' Issuer Credit Rating
US AIRWAYS: Pilots Lose ERISA Appeal in DC Circuit
VELTI INC: U.S. Unit Files for Bankruptcy Protection in Delaware
WASHINGTON MUTUAL: J.P. Morgan, U.S. Still Fighting Over Wording
WATERSCAPE RESORT: Contractor Calls Discovery Motion 'Harassment'
WKI HOLDING: S&P Lowers Rating on Sr. Sec. Credit Facility to 'B'
* SAC Nears Insider Trading Guilty Plea, but Cases Aren't Shut
* WaMu Receivership Obstacle in JPM and Justice Dept. Talks
* Atlantic City Casino Values Drop
* Ch. 11 Pros Argue for More CROs, Strong Creditor Groups
* Akerman Gets Best Law Firm Tier 1 Ranking in Bankruptcy Practice
* Waller Ranked Among 2014 Best Law Firms in Bankruptcy Practice
* Mintz Levin Gets Best Law Firm Tier 1 Ranking in Bankruptcy Area
* Thompson Hine Gets First-Tier Rankings in Bankruptcy Area
* Butler Snow Gets Best Law Firm Tier 1 Ranking in Bankruptcy Area
* Sidley Austin Gets Best Law Firms Tier-1 Ranking in Bankruptcy
* Large Companies With Insolvent Balance Sheets
*********
1617 WESTCLIFF: Plan Outline Hearing Moved to Nov. 20
-----------------------------------------------------
The hearing on 1617 WestCliff, LLC's Disclosure Statement is
continued to Nov. 20, at 2:00 p.m.
The Debtor filed a Disclosure Statement dated Oct. 18, 2013,
describing its Modified First Amended Chapter 11 Plan of
Reorganization.
The revised Disclosure Statement explains that the First Amended
Plan filed on July 1, 2013, proposes two possible means of paying
creditors:
(1) To sell the Debtor's real property asset before
confirmation, enabling the Debtor to pay creditors in full
from sales proceeds upon or before the Effective Date, thus
curing all defaults upon confirmation and allowing for
elimination of default interest on a secured claim; or
(2) To sell the property property post-confirmation, enabling
the Debtor to pay creditors in full but not effecting cure
at confirmation, thus not allowing the Debtor to eliminate
default interest.
The Debtor was able to sell its real property asset prior to
confirmation of the Plan for an amount sufficient to pay all
creditors in full: the Court therefore ordered Debtor to modify
its Plan so that creditors would understand clearly what Debtor
had done and would do through the First Amended Plan.
A redline copy of the Disclosure Statement dated Oct. 18 is
available at:
http://bankrupt.com/misc/1617WESTCLIFF_DSredlineOct18.PDF
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.
A&E 128: Case Summary & 12 Largest Unsecured Creditors
------------------------------------------------------
Debtor entities filing separate Chapter 11 cases:
Debtor Case No.
------ --------
A&E 128 South Corporation 13-16447
690 Marret Road - Rte 128
Lexington, MA 02421
A&E 128 North Corporation 13-16446
690 Marret Road - Rte 128
Lexington, MA 02421
Chapter 11 Petition Date: November 3, 2013
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: Hon. Joan N. Feeney
Debtor's Counsel: Christopher M. Condon, Esq.
MURPHY & KING, PROFESSIONAL CORPORATION
One Beacon Street
Boston, MA 02108
Tel: (617) 423-0400 (ext. 441)
Fax: (617) 423-0498
Email: cmc@murphyking.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petitions were signed by Scott D. Sternburg, president.
A list of the Debtors' 12 largest unsecured creditors is available
for free at http://bankrupt.com/misc/mab13-16447.pdf
ADAYANA INC: Proposes Dec. 4 Auction for All Assets
---------------------------------------------------
Adayana, Inc., has filed for Chapter 11 protection to facilitate a
sale of substantially all of its assets, including the capital
stock of its operating subsidiaries. Adayana may end up selling
the assets to AVX Learning, LLC, absent higher and better offers.
The Debtor will seek approval of proposed bid procedures at a
hearing slated for Nov. 8, 2013, at 9:00 a.m. EST at Room 311,
U.S. Courthouse, Indianapolis. Objections are due by Nov. 6,
2013.
The Debtor believes the sale of substantially all of its assets is
in the best interest of the estate and creditors. Moreover, under
the terms of its post-petition financing arrangement with AVX
Learning, the Debtor is required to sell substantially all of its
assets by Dec. 16, 2013.
The proposed bidding procedures provide that AVX Learning will be
deemed to be a qualified bidder.
To maximize the value of the assets, the proposed APA contemplates
a sale process to solicit offers. The Debtor requests that the
Court establish Dec. 2, 2013 as the bid deadline. The Debtor
proposes to then conduct the auction at the offices of the
Debtor's counsel, Taft Stettinius & Hollister LLP located at One
Indiana Square, Suite 3500, Indianapolis, IN 46204 on or about
Dec. 4, 2013. The Debtor requests that the Court schedule a
hearing to approve the sale on a date promptly following the
auction that is convenient for the Court.
Not later than Nov. 22, 2013, the Debtor will provide notice to
all counterparties to executory contracts and unexpired leases
that may be assumed and assigned to the buyer.
About Adayana, Inc.
Adayana, Inc., is a holding company, incorporated under the laws
of the state of Minnesota. Its primary assets are its equity
ownership interests in two separate operating companies, ABG, an
Adayana Company, and Vertex Solutions, Inc., one of which is
headquartered in Indianapolis, and the other in Virginia. Both
operating companies are in the "human capital" business, providing
an array of technology-based consulting and training services.
Adayana valued the subsidiaries' stock at $8 to $12 million as of
March 31, 2013. It also owns personal property with book value of
$949,280.
Adayana, along with its two subsidiaries, sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ind. Case No.
13-10919) on Oct. 14, 2013.
The Debtors are represented by Michael P. O'Neil, Esq., at Taft
Stettinius & Hollister LLP, in Indianapolis, Indiana.
ADAYANA INC: Files Schedules of Assets and Liabilities
------------------------------------------------------
Adayana, Inc., filed with the U.S. Bankruptcy Court for the
Southern District of Indiana its schedules of assets and
liabilities, disclosing the following:
Assets Liabilities
----------- -----------
A. Real Property $0
B. Personal Property 12,021,283
C. Property Claimed as Exempt N/A
D. Creditors Holding Secured Claims $13,250,000
E. Creditors Holding Unsecured
Priority Claims 0
F. Creditors Holding Unsecured
Non-priority Claims 1,622,941
----------- -----------
Total $12,021,283 $14,872,941
The Debtor's personal property includes investments in
subsidiaries ABG, an Adayana Company, Inc. and Vertex Solutions,
Inc., valued at $11.072 million, per March 31, 2013 valuation.
The secured creditor is Comvest Capital II L.P., owed $13.25
million.
About Adayana, Inc.
Adayana, Inc., is a holding company, incorporated under the laws
of the state of Minnesota. Its primary assets are its equity
ownership interests in two separate operating companies, ABG, an
Adayana Company, and Vertex Solutions, Inc., one of which is
headquartered in Indianapolis, and the other in Virginia. Both
operating companies are in the "human capital" business, providing
an array of technology-based consulting and training services.
Adayana valued the subsidiaries' stock at $8 to $12 million as of
March 31, 2013. It also owns personal property with book value of
$949,280.
Adayana, along with its two subsidiaries, sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ind. Case No.
13-10919) on Oct. 14, 2013.
The Debtors are represented by Michael P. O'Neil, Esq., at Taft
Stettinius & Hollister LLP, in Indianapolis, Indiana.
AFFIRMATIVE INSURANCE: Appoints President and COO
-------------------------------------------------
Affirmative Insurance Holdings, Inc., appointed Joseph G. Fisher,
age 44, to the position of president and chief operating officer.
Mr. Fisher joined the Company on Nov. 1, 2006, as senior vice
president, general counsel and secretary. On March 30, 2009, Mr.
Fisher was promoted to executive vice president, general counsel
and secretary, and since Sept. 12, 2011, he has also served as the
Company's chief claims and regulatory officer. Prior to joining
the Company, Mr. Fisher was a partner in the trial department of
McDermott Will & Emery LLP in Chicago. Mr. Fisher earned his law
degree and BS in finance from the University of Illinois at
Urbana-Champaign.
In connection with his appointment, Mr. Fisher's base salary was
increased to $450,000 effective Oct. 1, 2013.
About Affirmative Insurance
Addison, Tex.-based Affirmative Insurance Holdings, Inc., is a
distributor and producer of non-standard personal automobile
insurance policies for individual consumers in targeted geographic
markets. Non-standard personal automobile insurance policies
provide coverage to drivers who find it difficult to obtain
insurance from standard automobile insurance companies due to
their lack of prior insurance, age, driving record, limited
financial resources or other factors. Non-standard personal
automobile insurance policies generally require higher premiums
than standard automobile insurance policies for comparable
coverage.
For the six months ended June 30, 2013, the Company reported a net
loss of $4.76 million on $136.59 million of total revenues, as
compared with a net loss of $14.17 million on $103.21 million of
total revenues for the same period during the prior year. The
Company's balance sheet at March 31, 2013, showed $392.86 million
in total assets, $532.41 million in total liabilities and a
$139.55 million total stockholders' deficit.
ALLENS INC: Obtains Interim $114-Mil. DIP Loan Approval
-------------------------------------------------------
Judge Ben Barry of the U.S. Bankruptcy Court for the Western
District of Arkansas, Fayetteville Division, gave interim
authority for Allens, Inc., and All Veg, LLC, to obtain credit on
an interim basis up to the aggregate amount of $114,358,560 from
Bank of America, N.A., as administrative agent for a consortium of
lenders.
BofA and the DIP Lenders are the Debtors' lenders under a
prepetition credit agreement. The prepetition loan obligations
are secured by first priority liens on and security interests in
substantially all of the Debtors' assets.
The DIP Loan is composed of a senior secured, superpriority term
loan facility in the amount of up to $14,166,157 and a senior
secured, superpriority revolving loan facility in the amount of up
to $105,000,000. The DIP obligations will bear interest (i) if a
Base Rate Term Loan or Base Rate Revolving Credit Loan at the Base
Rate plus the Applicable Margin, and (ii) if a LIBOR Term Loan or
LIBOR Revolving Credit Loan at LIBOR plus the Applicable Margin.
The DIP Obligations will be: (i) entitled to joint and several
superpriority claim status; (ii) secured by valid, enforceable
first priority, fully perfected security interests in and liens on
all of the Debtors' property, subject and subordinate only to the
carve-out; (iii) secured by a first priority, perfected lien on
all of the Debtors' unencumbered property, subject and subordinate
only to the carve-out; and (iv) secured by a second priority,
perfected lien on all of the Debtors' property that were subject
to a permitted priority lien that was perfected prior to the
Petition Date, subject and subordinate only to the carve-out.
Carve-out means: (i) allowed and unpaid professional fees and
disbursements incurred by the Debtors and any creditors' committee
in the Chapter 11 Cases on or after the delivery by the DIP Agent
of a Carve-Out Trigger Notice, in an amount not to exceed $350,000
in the aggregate; plus, (ii) the aggregate amount of any unpaid
professional fees and disbursements for professionals incurred
prior to the delivery by the DIP Agent of a Carve-Out Trigger
Notice, plus, (iii) the amount of any unpaid fees required to be
paid to the Clerk of the Court and to the office of the US
Trustee.
The DIP Loan Documents require the Debtors to file, no later than
Nov. 27, 2013, a motion seeking approval to sell all or
substantially all of its assets.
A final hearing on the Debtors' request will be on Nov. 21, 2013,
at 1:30 p.m. Objections are due Nov. 19.
About Siloam Springs
Siloam Springs, Arkansas-based Allens, Inc., a maker of canned and
frozen vegetables in business since 1926, filed for bankruptcy on
Oct. 28, 2013, seeking to sell some divisions or reorganize as a
new company (Case No. 13-bk-73597, Bankr. W.D. Ark.).
The Debtors' proposed counsel are Stan D. Smith, Esq. --
ssmith@mwlaw.com -- Lance R. Miller, Esq. -- lmiller@mwlaw.com --
and Chris A. McNulty, Esq. -- cmcnulty@mwlaw.com -- at MITCHELL,
WILLIAMS, SELIG, GATES & WOODYARD, P.L.L.C., in Little Rock,
Arkansas; and Nancy A. Mitchell, Esq. -- mitchelln@gtlaw.com --
Maria J. DiConza, Esq. -- diconzam@gtlaw.com -- and Matthew L.
Hinker, Esq. -- hinkerm@gtlaw.com -- at GREENBERG TRAURIG, LLP, in
New York.
ALLENS INC: Has Interim Authority to Use Cash Collateral
--------------------------------------------------------
Judge Ben Barry of the U.S. Bankruptcy Court for the Western
District of Arkansas, Fayetteville Division, gave interim
authority for Allens, Inc., and All Veg, LLC, to use cash
collateral to continue to operate their business.
The Prepetition First Lien Lenders consent to the Debtors' use of
cash collateral and the Prepetition Second Lien Lenders have
agreed not to object to the DIP Lenders' provision of the DIP
Facility and the Debtors' use of cash collateral.
The Prepetition Second Lien Agent will solely receive, as adequate
protection, a valid, enforceable, fully perfected replacement
lien on all of the Debtors' property as of the Petition Date and
property acquired postpetition, subject and subordinate only to
the liens of the DIP Lenders, the liens of the Prepetition First
Lien Lenders, the Carve-Out, and (iv) any Permitted Priority
Liens.
Carve-out means: (i) allowed and unpaid professional fees and
disbursements incurred by the Debtors and any creditors' committee
in the Chapter 11 Cases on or after the delivery by the DIP Agent
of a Carve-Out Trigger Notice, in an amount not to exceed $350,000
in the aggregate; plus, (ii) the aggregate amount of any unpaid
professional fees and disbursements for professionals incurred
prior to the delivery by the DIP Agent of a Carve-Out Trigger
Notice, plus, (iii) the amount of any unpaid fees required to be
paid to the Clerk of the Court and to the office of the US
Trustee.
Razorback Farms Objects
Razorback Farms, Inc., which holds a trust claim under the
Perishable Agricultural Commodities Act, objected to the continued
use of non-estate property as cash collateral in the possession of
Allens, Inc., asserting that the statutory trust provisions found
in the PACA imposes several restrictions and limitations on the
normal operation of the Bankruptcy Code and its scheme for
marshaling a debtor's assets.
Razorback is represented by E. Kent Hirsch, Esq. --
kent@hirschlawfirm.com -- at Hirsch Law Firm, P.A., in Springdale,
Arkansas; and Michael J. Keaton, Esq. -- keaton@pacatrust.com --
at KEATON LAW FIRM, P.C., in Deerfield, Illinois.
A final hearing on the Debtors' request will be on Nov. 21, 2013,
at 1:30 p.m. Objections are due Nov. 19.
About Siloam Springs
Siloam Springs, Arkansas-based Allens, Inc., a maker of canned and
frozen vegetables in business since 1926, filed for bankruptcy on
Oct. 28, 2013, seeking to sell some divisions or reorganize as a
new company (Case No. 13-bk-73597, Bankr. W.D. Ark.).
The Debtors' proposed counsel are Stan D. Smith, Esq. --
ssmith@mwlaw.com -- Lance R. Miller, Esq. -- lmiller@mwlaw.com --
and Chris A. McNulty, Esq. -- cmcnulty@mwlaw.com -- at MITCHELL,
WILLIAMS, SELIG, GATES & WOODYARD, P.L.L.C., in Little Rock,
Arkansas; and Nancy A. Mitchell, Esq. -- mitchelln@gtlaw.com --
Maria J. DiConza, Esq. -- diconzam@gtlaw.com -- and Matthew L.
Hinker, Esq. -- hinkerm@gtlaw.com -- at GREENBERG TRAURIG, LLP, in
New York.
ALLENS INC: Gets Financing With No Prejudice to PACA Growers
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Allens Inc., a processor of canned vegetables, filed
for Chapter 11 protection on Oct. 28 and three days later received
approval from the bankruptcy judge in Fayetteville, Arkansas, to
borrow $114.4 million.
According to the report, the judge will hold another hearing on
Nov. 21 for final approval of the loan, which requires selling the
business by Nov. 27. The new loan substitutes for a pre-bankruptcy
$14 million term loan and a $105 million revolving credit.
The court's approval of bankruptcy financing explicitly avoided
eradicating the rights of farmers and produce suppliers under the
federal Perishable Agricultural Commodities Act, or PACA, the
report related. That law can put produce suppliers ahead of
secured lenders even though the growers don't have secured claims
in the traditional sense.
The judge also authorized Siloam Springs, Arkansas-based Allens to
surrender the company's 2003 Dassault tri-engine Mystere Falcon 50
midsize, long range jet. Although lender Fifth Third Bank can take
possession of the plane, it can't sell it without permission from
the bankruptcy court.
Allens has four processing plants and six warehouses, encumbered
with $178 million in secured debt and $101.9 million owing to
unsecured trade suppliers.
Secured debt includes $96.5 million on a first-lien revolving
credit and $14 million on a term loan with Bank of America NA as
agent. There's also a second-lien note for $65.6 million.
The larger unsecured creditors include packaging maker Ball Corp.,
owed $46.3 million, followed by Crown Cork & Seal USA Inc.,
holding $18.4 million in debt.
About Siloam Springs
Siloam Springs, Arkansas-based Allens, Inc., a maker of canned and
frozen vegetables in business since 1926, filed for bankruptcy on
Oct. 28, 2013, seeking to sell some divisions or reorganize as a
new company (Case No. 13-bk-73597, Bankr. W.D. Ark.).
The Debtors' proposed counsel are Stan D. Smith, Esq. --
ssmith@mwlaw.com -- Lance R. Miller, Esq. -- lmiller@mwlaw.com --
and Chris A. McNulty, Esq. -- cmcnulty@mwlaw.com -- at MITCHELL,
WILLIAMS, SELIG, GATES & WOODYARD, P.L.L.C., in Little Rock,
Arkansas; and Nancy A. Mitchell, Esq. -- mitchelln@gtlaw.com --
Maria J. DiConza, Esq. -- diconzam@gtlaw.com -- and Matthew L.
Hinker, Esq. -- hinkerm@gtlaw.com -- at GREENBERG TRAURIG, LLP, in
New York.
ALLENS INC: Section 341(a) Meeting Scheduled for December 2
-----------------------------------------------------------
A meeting of creditors in the bankruptcy case of Allens, Inc.,
will be held on Dec. 2, 2013, at 12:00 p.m. at Fayetteville
Division.
This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
meeting of creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
About Allens Inc.
Siloam Springs, Arkansas-based Allens, Inc., a maker of canned and
frozen vegetables in business since 1926, filed for bankruptcy on
Oct. 28, 2013, seeking to sell some divisions or reorganize as a
new company (Case No. 13-bk-73597, Bankr. W.D. Ark.). The
petition was signed by Jonathan C. Hickman as chief restructuring
officer. The Debtor estimated assets and debts of at least $100
million.
The Debtors' proposed counsel are Stan D. Smith, Esq. --
ssmith@mwlaw.com -- Lance R. Miller, Esq. -- lmiller@mwlaw.com --
and Chris A. McNulty, Esq. -- cmcnulty@mwlaw.com -- at Mitchell,
Williams, Selig, Gates & Woodyard, P.L.L.C., in Little Rock,
Arkansas; and Nancy A. Mitchell, Esq. -- mitchelln@gtlaw.com --
Maria J. DiConza, Esq. -- diconzam@gtlaw.com -- and Matthew L.
Hinker, Esq. -- hinkerm@gtlaw.com -- at Greenberg Traurig, LLP, in
New York. Lazard Middle Market LLC serves as the Debtor's
financial advisor.
ALYDIAN INC: Bitcoin Firm Files for Bankruptcy
----------------------------------------------
Robin Sidel and Katy Stech, writing for The Wall Street Journal,
reported that a three-month-old company with ties to one of the
biggest promoters of the virtual currency bitcoin has filed for
bankruptcy protection with less than $50,000 in assets.
According to the report, Alydian Inc., a unit of CoinLab Inc., on
Nov. 1 filed for Chapter 11 protection in U.S. bankruptcy court in
Seattle. The 10-page court filing didn't disclose why Alydian
filed for bankruptcy or how it hopes to repay its debts.
CoinLab is a bitcoin start-up run by Peter Vessenes, who is also
chairman of the Bitcoin Foundation, the report related. The
foundation is essentially a nonprofit trade group that has gained
attention in recent months for promoting bitcoin and supporting
new rules aimed at making it more accepted.
CoinLab is one of the best-known names in the fledgling virtual-
currency industry, describing itself as a "bitcoin business
incubator," the report said. It has won credibility because it has
attracted funding from venture capitalists such as Silicon
Valley's Draper Associates, which pumped $500,000 into the company
last year.
Mr. Vessenes, who signed the bankruptcy petition, couldn't be
reached for comment, the report further related. Alydian's
bankruptcy attorney also couldn't be reached. A spokeswoman for
the Bitcoin Foundation declined to comment.
AMARILLO BIOSCIENCES: Interferon Developer Files in Texas
---------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Amarillo Biosciences Inc., a developer of low-dose
interferon therapies, filed a petition for Chapter 11 protection
(Bankr. W.D. Tex. Case No. 13-bk-20393) on Oct. 31 in its namesake
hometown in Texas.
According to the report, the company said it has five patents for
delivering the drug by lozenges dissolved in the mouth, causing
fewer side effects than by injection. The company said in
regulatory filings that it needs partners for Phase 2 and 3
clinical trials.
The petition listed assets of $132,000 against $4.8 million in
liabilities. The company has yet to generate income.
AMERICAN AIRLINES: Seeks Exit From Cantor Claims in 9/11 Row
------------------------------------------------------------
Law360 reported that American Airlines Inc. and AMR Corp. urged a
New York federal judge on Nov. 1 to grant summary judgment
dismissing claims from Cantor Fitzgerald & Co. and affiliates in a
suit seeking recovery of losses from the 9/11 attacks, citing a
lack of a legally cognizable duty.
According to the report, hijackers flew American Airlines Flight
11 from Boston to San Francisco into Tower One of New York's World
Trade Center during the Sept. 11 attacks, hitting the tower
beneath Cantor's offices and killing 658 of its employees.
The case is In Re: September 11 Property Damage and Business Loss
Litigation, Case No. 1:21-mc-00101 (S.D.N.Y.) before Judge Alvin
K. Hellerstein.
About American Airlines
AMR Corp. and its subsidiaries including American Airlines, the
third largest airline in the United States, filed for bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan
on Nov. 29, 2011, after failing to secure cost-cutting labor
agreements. AMR, previously the world's largest airline prior to
mergers by other airlines, is the last of the so-called U.S.
legacy airlines to seek court protection from creditors.
Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law
Group, Chartered, are on board as special counsel. Rothschild
Inc., is the financial advisor. Garden City Group Inc. is the
claims and notice agent.
Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and
Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP
serve as counsel to the Official Committee of Unsecured Creditors
in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the
co-counsel for conflicts and other matters; Moelis & Company LLC
is the investment banker, and Mesirow Financial Consulting, LLC,
is the financial advisor.
The Retiree Committee is represented by Jenner & Block LLP's
Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B.
Hankin, Esq.
AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a
definitive merger agreement under which the companies will combine
to create a premier global carrier, which will have an implied
combined equity value of approximately $11 billion.
The bankruptcy judge on Sept. 12, 2013, confirmed AMR Corp.'s plan
to exit bankruptcy through a merger with US Airways. By
distributing stock in the merged airlines, the plan is designed to
pay all creditors in full, with interest.
Judge Sean Lane confirmed the Plan despite the lawsuit filed by
the U.S. Department of Justice and several states' attorney
general complaining that the merger violates antitrust laws. The
plan confirmation order means that if AMR and US Airways win the
Justice Department lawsuit or settle with the government, the
merger plan can go into effect.
The antitrust suit is U.S. v. US Airways Group Inc., 13-cv-1236,
U.S. District Court, District of Columbia (Washington).
Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by AMR Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
AMERICAN BEACON: S&P Assigns 'BB-' ICR & Sr. Secured Debt Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'BB-'
issuer credit rating and 'BB-' senior secured debt rating to
American Beacon Advisors Inc. The rating outlook is stable.
"The ratings on American Beacon primarily reflect the company's
small size in the highly competitive asset management industry and
its relatively weak financial profile compared with other rated
asset managers," said Standard & Poor's credit analyst Trevor
Martin. "Additionally, the company has a high concentration of
its AUM, both in terms of domestic equities and by its largest
funds. The company's track record of good investment performance,
its flexible expense base, and good product distribution somewhat
mitigate these weaknesses."
As a manager-of-managers, American Beacon focuses on the
operations and distribution of its sponsored mutual funds, while
it outsources the portfolio management to subadvisors. Some funds
use a one-manager approach, while others employ multiple managers.
With respect to the company's business profile, investment
performance has been good. This is a testament to American
Beacon's manager-of-manager operations and a positive factor to
the rating. The institutional class of American Beacon's equity
funds consistently ranks in the first quartile in Morningstar's
rankings across three-, five-, and 10-year time horizons.
Furthermore, S&P believes the company has a good product
distribution strategy as it seeks to build a stable base through
several retail channels to attract larger institutional clients.
"The stable outlook reflects our opinion that American Beacon will
continue to have a weak financial profile relative to rated
peers," said Mr. Martin. "We expect investment performance to be
good, which should help generate moderate growth in AUM and allow
the company to continue to diversify away from its exposure to
AMR."
S&P could consider an upgrade if the company's mutual fund
business increases to $30 billion of AUM and debt to EBITDA
improves to below 3.0x--if S&P believes that level of leverage
would be sustained. Alternatively, S&P could downgrade the
company if it sees sustained outflows in the mutual fund business,
resulting in interest coverage falling below 2.5x or debt to
EBITDA rising above 4.5x.
ANYTHINGIT INC: Posts $673K Net Loss in Q3 Ended Sept. 30
---------------------------------------------------------
AnythingIT, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting a net loss
of $673,284 on $786,154 of net sales for the three months ended
Sept. 30, 2013, compared to a net loss of $450,508 on $1 million
of net sales for the same period last year.
The Company's balance sheet at Sept. 30, 2013, showed $1.1 million
in total assets, $2.01 million in total liabilities, and
stockholders' deficit of $918,897 million.
A copy of the Form 10-Q is available at:
http://is.gd/OnPcy6
About AnythingIT
Fair Lawn, N.J.-based AnythingIT, Inc., is a provider of green
technology solutions, managing the equipment disposition needs of
the government and commercial clients by buying, reselling, or
recycling, in an environmentally and regulatory compliant manner,
computers and other technology hardware.
ARI-RC 6: Third Wave Debtors Have Interim Nod to Use Cash
---------------------------------------------------------
Affiliates of ARI-RC 6, LLC, identified as the "Third Wave
Debtors" won interim approval last month to use cash collateral.
The order applies only to the cash that is property of the Third
Wave Debtors' estates, calculated for these purposes as the total
cash receipts from the Debtors' property multiplied by the Third
Wave Debtors' collective tenant-in-common ownership interests in
the property, which amounts to 35.61%.
Use of cash will only be in accordance with a budget. A final
hearing on the use of cash is slated for Nov. 6.
The secured creditor, CWCapital Asset Management LLC, has filed
opposition to the request of the Second Wave and Third Wave
Debtors to use cash collateral. It said that under the loan
documents, because the loan is in default, the Debtors have no
right to any Rents until the entire debt of more than $27 million
owed to the Trust is repaid in full.
CWCapital Asset Management, solely in its capacity as Special
Servicer for U.S. Bank National Association, as Trustee for the
Registered Holders of MLCFC Commercial Mortgage Trust 2007-5,
Commercial Mortgage Pass-Through Certificates, Series 2007-5, is
represented by:
Keith C. Owens, Esq.
Jennifer L. Nassiri, Esq.
VENABLE LLP
2049 Century Park East, Suite 2100
Los Angeles, CA 90067
Telephone: (310) 229-9900
Facsimile: (310) 229-9901
E-mail: kowens@venable.com
jlnassiri@venable.com
About ARI-RC
ARI-RC 6, LLC, and four related entities -- ARI-RC 14, LLC, ARI-RC
12, LLC, ARI-RC 21, LLC, ARI-RC 23, LLC -- filed voluntary
petitions under Chapter 11 on July 15, 2013. Kenneth Greene
signed the petitions as president.
ARI-RC 3, LLC, and nine affiliates filed for Chapter 11 protection
on Aug. 1, 2013. ARI-RC 11 and three more affiliates subsequently
filed their own Chapter 11 cases on Aug. 2, 2013. The petitions
were signed by R. Frederick Hodder, Jr. and Monroe Sawhill Hodder,
trustees.
The Debtors own tenant in common (TIC) interests in two commercial
buildings commonly known as Rancho Conejo I and II, located at
1525 and 1535 Rancho Conejo Boulevard, in Thousand Oaks,
California. The Debtors and 16 related TIC Investors, who have
not filed for bankruptcy, are passive investors with varying
percentage ownership interests in the Property.
The Debtors' cases are jointly administered under the lead case of
ARI-RC 6, Case No. 13-14692, in the U.S. Bankruptcy Court for the
Central District of California. The Debtors estimated assets and
debts at $10 million to $50 million at the time of the filings.
Judge Alan M. Ahart presides over the cases.
Daniel H. Reiss, Esq., at Levene, Neale, Bender, Yoo & Brill
L.L.P., as counsel for Debtors.
ARCHDIOCESE OF MILWAUKEE: Appeals Court Delays Ruling on Judge
--------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that creditors of the Archdiocese of Milwaukee won't find
out for perhaps six months whether U.S. District Judge Rudolph T.
Randa should have ruled that $55 million in trust for maintenance
of cemeteries can't be reached by sexual-abuse claimants.
According to the report, overruling the bankruptcy court, Judge
Randa handed down an opinion in July concluding that the federal
Religious Freedom Restoration Act of 1993 barred the creditors
from suing to recover the $55 million under a fraudulent-transfer
theory. The committee appealed to the U.S. Court of Appeals in
Chicago and also filed papers asking Judge Randa to vacate his own
opinion and remove himself from the case.
The committee contended, among other things, that Judge Randa
should have been disqualified because he has relatives buried in
Catholic cemeteries in Milwaukee.
Judge Randa rejected the idea that he was disqualified, leading
the committee to ask the appeals court to toss him off the case
and vacate the decision.
Last week, the appeals court in Chicago refused to make an initial
ruling on whether Judge Randa was disqualified. Instead, the court
told both sides to address the disqualification question in their
briefs on the main appeal.
The committee's brief is due Jan. 15, followed by the bishop's
brief on Feb. 14. Creditors can file a reply brief on Feb. 28.
Judge Randa rejected the idea that he should step down, saying
his parents' "burial crypt is not an investment or an asset."
He said the demand for recusal was "untenable, and it is
objectively unreasonable" because "a judge's religious
affiliation is not grounds for disqualification."
The cemetery trust litigation is of central importance for abuse
victims because the $55 million may be the single largest asset to
pay their claims.
The appeal is Official Committee of Unsecured Creditors v.
Listecki, 13-02881, U.S. Court of Appeals for the Seventh
Circuit (Chicago). The cemetery lawsuit in bankruptcy court is
Listecki v. Official Committee of Unsecured Creditors (In re
Archdiocese of Milwaukee), 11-bk-02459, U.S. Bankruptcy Court,
Eastern District of Wisconsin (Milwaukee).
About Archdiocese of Milwaukee
The Diocese of Milwaukee was established on Nov. 28, 1843, and
was elevated to an Archdiocese on Feb. 12, 1875, by Pope Pius
IX. The region served by the Archdiocese consists of 4,758 square
miles in southeast Wisconsin which includes counties Dodge, Fond
du Lac, Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth,
Washington and Waukesha. There are 657,519 registered Catholics
in the Region.
The Catholic Archdiocese of Milwaukee, in Wisconsin, filed for
Chapter 11 bankruptcy protection (Bankr. E.D. Wis. Case No.
11-20059) on Jan. 4, 2011, to address claims over sexual abuse
by priests on minors.
The Archdiocese became at least the eighth Roman Catholic diocese
in the U.S. to file for bankruptcy to settle claims from current
and former parishioners who say they were sexually molested by
priests.
Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in
Milwaukee, Wisconsin, serves as the Archdiocese's counsel. The
Official Committee of Unsecured Creditors in the bankruptcy case
has retained Pachulski Stang Ziehl & Jones LLP as its counsel, and
Howard, Solochek & Weber, S.C., as its local counsel.
The Archdiocese estimated assets and debts of $10 million to
$50 million in its Chapter 11 petition.
(Catholic Church Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
ARRAY BIOPHARMA: Has $15.68-Mil. Net Loss in Sept. 30 Quarter
-------------------------------------------------------------
Array Biopharma Inc. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, disclosing a net
loss of $15.68 million on $14.23 million of total revenue for the
three months ended Sept. 30, 2013, compared with a net loss of
$11.77 million on $15.83 million of total revenue for the same
period last year.
The Company's balance sheet at Sept. 30, 2013, showed $152.64
million in total assets, $165.81 million in total liabilities and
total stockholders' deficit of $13.16 million
A copy of the Form 10-Q is available at:
http://is.gd/p0f0Cc
About Array Biopharma
Boulder, Colo.-based Array BioPharma Inc. is a biopharmaceutical
company focused on the discovery, development and
commercialization of targeted small-molecule drugs to treat
patients afflicted with cancer and inflammatory diseases. Array
has four core proprietary clinical programs: ARRY-614 for
myelodysplastic syndromes, ARRY-520 for multiple myeloma, ARRY-797
for pain and ARRY-502 for asthma. In addition, Array has 10
partner-funded clinical programs including two MEK inhibitors in
Phase 2: selumetinib with AstraZeneca and MEK162 with Novartis.
Array BioPharma reported a net loss of $23.58 million for the year
ended June 30, 2012, a net loss of $56.32 million for the year
ended June 30, 2011, and a net loss of $77.63 million for
the year ended June 30, 2010.
"If we are unable to obtain additional funding from these or other
sources when needed, or to the extent needed, it may be necessary
to significantly reduce the current rate of spending through
further reductions in staff and delaying, scaling back, or
stopping certain research and development programs, including more
costly Phase 2 and Phase 3 clinical trials on our wholly owned
programs as these programs progress into later stage development,"
the Company said in its annual report for the year ended June 30,
2012. "Insufficient liquidity may also require us to relinquish
greater rights to product candidates at an earlier stage of
development or on less favorable terms to us and our stockholders
than we would otherwise choose in order to obtain up-front license
fees needed to fund operations. These events could prevent us
from successfully executing our operating plan and in the future
could raise substantial doubt about our ability to continue as a
going concern."
AUDIOEYE INC: Reports $871K Net Loss in Q3 Ended Sept. 30
---------------------------------------------------------
AudioEye, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting
a net loss of $870,810 on $344,414 of revenues for the three
months ended Sept. 30, 2013, compared with a net loss of $315,143
on $222,459 of revenues for the same period last year.
The Company's balance sheet at Sept. 30, 201, showed $4.16 million
in total assets, $768,252 in total liabilities, and stockholders'
equity of $3.39 million.
A copy of the Form 10-Q is available at:
http://is.gd/bXxvvc
About AudioEye
Tucson, Arizona-based AudioEye, Inc., creates voice driven
technologies for Internet based content. The Company offers
voice-controlled internet browsing, artificial intelligence
engines and other audio interfaces.
BANK OF THE CAROLINAS: Reports $147,000 Net Income in Q3
--------------------------------------------------------
Bank of the Carolinas Corporation reported net income available to
common shareholders of $147,000 on $3.80 million of total interest
income for the three months ended Sept. 30, 2013, as compared with
a net loss available to common shareholders of $3.20 million on
$4.30 million of total interest income for the same period during
the prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss available to common shareholders of $627,000 on $11.36
million of total interest income as compared with a net loss
available to common shareholders of $6.08 million on $13 million
of total interest income for the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $427.92
million in total assets, $421.70 million in total liabilities and
$6.22 million in total shareholders' equity.
President and CEO, Stephen R. Talbert, said, "We are proud of the
progress we have made for our shareholders, particularly with the
loan growth this quarter. Our staff continues to work hard on
further improvements to make Bank of the Carolinas better each
day."
A copy of the press release is available for free at:
http://is.gd/OdLGXs
About Bank of the Carolinas
Mocksville, North Carolina-based Bank of the Carolinas Corporation
was formed in 2006 to serve as a holding company for Bank of the
Carolinas. The Bank's primary market area is in the Piedmont
region of North Carolina.
Bank of the Carolinas disclosed a net loss available to common
stockholders of $5.53 million in 2012, a net loss available to
common stockholders of $29.18 million in 2011 and a net loss
available to common stockholders of $3.56 million in 2010.
Turlington and Company, LLP, in Lexington, North Carolina, 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 suffered recurring credit
losses that have eroded certain regulatory capital ratios. As of
Dec. 31, 2012, the Company is considered undercapitalized based on
their regulatory capital level. This raises substantial doubt
about the Company's ability to continue as a going concern.
BERGENFIELD SENIOR HOUSING: Seeks Plan Approval at Dec. 10 Hearing
------------------------------------------------------------------
Bergenfield Senior Housing is targeting confirmation of its Plan
of Liquidation by next month.
A hearing for approval of the explanatory disclosure statement was
slated for Oct. 24, 2013. The proposed timeline contemplates that
the last day to vote to accept or reject the Plan will be Dec. 3,
2013 at 5:00 p.m. Then there will be a Dec. 10, 2013 confirmation
hearing.
Nov. 1, 2013 is the voting record date, which is the date on which
to identity of holders of claims against the Debtor will be
determined.
According to the First Amended Disclosure Statement filed Oct. 18,
2013, the purpose of the Plan is to liquidate, collect and
maximize the cash value of the assets of the Debtor and make
distributions on account of allowed claims against the Debtor's
estate. The Plan is premised on the satisfaction of Claims
through distribution of the proceeds raised from the sale and
liquidation of the Debtor's assets, claims and causes of action.
The Debtor intends to sell its apartment building and all related
assets located at 47 Legion Drive in Bergenfield, New Jersey, to
the highest bidder in accordance with a bankruptcy-court-approved
bidding process. The Debtor estimates that the range of value for
the property is $13.5 million to $15 million.
The proceeds from the sale of property will be used to fund
payments under the Plan.
The Disclosure Statement reveals that 100% recovery is expected
for priority non-tax claims. Boiling Springs Savings Bank will
receive full payment of its allowed secured claim, which amount
will be the sum of the then-unpaid principal balance plus interest
calculated at the rate of 3% per annum, rendering the bank
impaired as it alleges that interest accruing since May 1, 2013
should be 6%. The secured claims of principal Gene Rotonda and
his son Nicholas Rotonda are unimpaired. Holders of general
unsecured claims, estimated to aggregate $1.92 million will
recover what's left from the proceeds of the sale after payment of
unclassified claims and secured claims. Holders of equity
interests won't recover anything on account of those interests.
A copy of the First Amended Disclosure Statement is available for
free at:
http://bankrupt.com/misc/Bergenfield_Amended_Plan_Outline.pdf
SM Global Group, LLC, has conveyed objections to the First Amended
Disclosure Statement. It claims that the document "falls woefully
short of providing creditors with information sufficient to allow
them to make well-informed decisions on the First Amended
Plan, pursuant to Section 1125 of the Bankruptcy Code, and
supports a Plan that is patently unconfirmable." It adds that
while the Debtor received no loan or value for the mortgage
interests in the property conveyed to Gene Rotonda, Nicholas
Rotonda, Jr., and Rosemarie Hebner, the Debtor has taken no action
thus far to invalidate these claims.
SM Global is represented by:
COLE, SCHOTZ, MEISEL, FORMAN & LEONARD, P.A.
Court Plaza North 25 Main Street
P.O. Box 800
Hackensack, NJ 07602-0800
Tel: (201) 489-3000
Fax: (201) 489-1536
About Bergenfield Senior Housing
Bergenfield Senior Housing, LLC, filed a Chapter 11 bankruptcy
petition (Bankr. D.N.J. Case No. 13-19703) in Newark, New Jersey,
on May 2, 2013. Nicholas Rotonda signed the petition as
member/manager. Judge Morris Stern presides over the case.
Aaron Solomon Applebaum, Esq., and Barry D. Kleban, Esq., at
McElroy, Deutsch, Mulvaney & Carpenter, LLP, represent the Debtor
as counsel.
In its schedules, the Debtor disclosed $14,061,100 in assets and
$19,957,026 in liabilities as of the Petition Date.
The Bergenfield, New Jersey-based debtor is a single asset real
estate under 11 U.S.C. Sec. 101(51B) and said total assets and
debts exceed $10 million. The Debtor operates and wholly owns a
90-unit residential apartment building located at 47 Legion Drive,
Bergenfield, New Jersey.
The Debtor's primary secured creditor is Boiling Springs Savings
Bank. The Debtor is indebted to Boiling Springs on account of two
promissory notes, both of which are secured by mortgages on the
Property. Boiling Springs' first-position mortgage secures
indebtedness in the total amount of $12.02 million and the second-
position mortgage secures indebtedness of $575,000.
BLACKBERRY LTD: Abandons Sale Process, CEO to Leave
---------------------------------------------------
Will Connors, Dana Cimilluca and Dana Mattioli, writing for The
Wall Street Journal, reported that BlackBerry Ltd.'s effort to
find a buyer has failed, leaving the company to attempt a hastily
arranged restructuring that raises even more questions for the
beleaguered smartphone maker.
According to the report, the Canadian company said Nov. 4 it
abandoned a tentative $4.7 billion plan to go private and instead
will continue as a public company with new leadership and a $1
billion investment from a group led by major shareholder Fairfax
Financial Holdings Ltd.
Executives said the financing was a way to strengthen BlackBerry
as it embarks on a new strategy, the report related. "One of the
things that was hurting this company is that there was a 'for
sale' sign up," said Prem Watsa, the chairman of Fairfax, which
owns 10% of BlackBerry and sought to take it private. "The for-
sale sign is taken down. We have financing in place for the long
term."
But the move does little to mollify the company's precarious
condition in the eyes of both investors and customers, the report
said. The stock fell 16.4% to a 12-month low of $6.49, well below
the buyout price of $9 a share proposed by Fairfax in September.
Mr. Watsa and BlackBerry executives refrained from laying out a
detailed vision of how BlackBerry will stay afloat after a new
line of phones flopped and its once-comfortable cash pile quickly
disappears, the report added.
About BlackBerry
BlackBerry(R) revolutionized the mobile industry when it was
introduced in 1999. Based in Waterloo, Ontario, BlackBerry
operates offices in North America, Europe, Asia Pacific and Latin
America. BlackBerry is listed on the NASDAQ Stock Market (NASDAQ:
BBRY) and the Toronto Stock Exchange (TSX: BB). See
http://www.blackberry.com/
In September 2013, The Wall Street Journal, reported that
BlackBerry Ltd. is letting go of up to 40% of its employees by the
end of the year. BlackBerry had 12,700 employees as of
March, the last time it disclosed a total number.
BlackBerry, once a dominant smartphone maker, has lost market
share to competitors such as Apple Inc. and Samsung
Electronics Co.
The Company's balance sheet at June 1, 2013, showed $13.07 billion
in total assets, $3.67 billion in total liabilities and
$9.39 billion in shareholders' equity.
BLACKBOARD INC: S&P Assigns 'B+' Rating to Proposed $867.2MM Loan
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' issue-level
rating and '2' recovery rating to Blackboard Inc.'s proposed
$867.2 million first-lien term loan B-3 maturing October 2018.
Proceeds will be used to refinance the existing first-lien term
loan B-2. The '2' recovery rating indicates S&P's expectation of
substantial recovery (70%-90%) in the event of a payment default.
The term loan is rated one notch above the corporate credit rating
on Blackboard, which remains unchanged.
The 'B' corporate credit rating reflects Blackboard's 'highly
leveraged' financial risk profile with pro forma year-end 2013
leverage to be about 7.8x and S&P's expectation that leverage will
remain at this level for the next year, given modest availability
of free operating cash flow to pay down debt. The rating also
reflects the company's 'fair' business risk profile with a leading
position in the competitive educational technology market and a
significant base of recurring revenues.
RATINGS LIST
Blackboard Inc.
Corporate Credit Rating B/Stable/--
New Rating
Blackboard Inc.
Senior Unsecured
$867.2 mil. first-lien term loan B-3
due 2018 B+
Recovery Rating 2
BLUEJAY PROPERTIES: Wants Trustee Appointment Rescinded or Stayed
-----------------------------------------------------------------
Bluejay Properties, LLC, asks the U.S. Bankruptcy Court to enforce
certain provisions of the Settlement Agreement among The
University National Bank (UNB), Bankers' Bank of Kansas, N.A., and
Kaw Valley Bank, and to grant either restrictions upon the
appointment of a Trustee or stay the appointment of a Trustee in
accordance with the provisions of the Agreement.
The Debtor on July 15, 2013, filed a Motion to Approve Compromise
and Settlement. As an attachment to the Motion, a Settlement
Agreement was proposed to the Court. The Settlement Agreement was
approved by the Court on August 5, 2013.
One of the provisions of the Settlement Agreement provides:
"Notwithstanding anything to the contrary in paragraph 1.c.
hereinabove, should no qualifying offers be submitted to counsel
for the Debtor, UNB, BBOK and KVB by the close of business (5:00
PM Central Daylight Time) on October 7, 2013, and the parties do
not otherwise mutually assent to accept any non-qualifying offer,
by default, the Trustee Contingency is invoked.
Notwithstanding, the Debtor or any other party in interest shall
maintain the right to file a motion to the Court to (i) delay or
limit a Trustee's sale of the Real Estate, solely for the purpose
of requiring the appointed Trustee to maintain the brokerage
relationship with CBRE if the Senior Market Analyst certifies that
the failure to receive qualifying offers was due primarily to
current market conditions, incapable of being ascertained on the
date of this Agreement, that impacted the value or marketing of
the property and that a continuation of the broker's relationship
and sale offering, with alternate dates for a sale, would be in
the best interests of the estate, taking into consideration the
then current market conditions, or (ii) to rescind or stay the
appointment of a trustee, if the Senior Market Analyst certifies
that the failure to receive qualifying offers was due primarily to
current market conditions, incapable of being ascertained on the
date of this Agreement, that impacted the value or marketing of
the property and the Movant demonstrates by clear and convincing
evidence that rescinding or staying the appointment of a Trustee
is in the best interest of the estate, taking into account the
then current market conditions."
The property has been offered for sale through the Broker and
certain offers have been submitted; however, none of the offers
meet the criteria required of the Settlement Agreement. The
Debtor does not intend to discuss in detail the offers in order to
maintain the possibility of a sale at an agreed price, but the
Debtor has provided the bid information to the secured creditors.
The Debtor contends that the provisions of the Settlement
Agreement should be engaged by the Court and that the Court should
delay or rescind the appointment of a Trustee in this regard due
to the fact that the failure to receive qualifying offers was due
primarily to market conditions incapable of being ascertained on
the date the Agreement was executed.
It is the understanding of the Debtor that in examination of
possible values for the property, prospective purchasers were
using a trailing three month average of income, projecting said
amount over 12 months, but applied a trailing 12 month of
operating expenses to arrive at the value of the property. Using
this calculation method, CBRE determined from the February, April
and March 2013 financials of the Debtor that the property should
be worth the $16,000,000 to $17,000,000 range.
However in August 2013, 2,500 Fort Riley troops were deployed to
Africa which resulted in a decline in occupancy percentages for
the Debtor. This was not as a severe decline as competitors'
apartment projects in Junction City, as these entities suffered
drops in occupancy, however there was a significant drop in the
Debtor's occupancy percentages. Using the August 2013 numbers and
the three month trailing projection significantly impacted these
projections in a negative manner and decreased net operating
income. This, matched with recent increases in interest rates,
provided for offers that did not satisfy the requirements of the
Agreement.
The Debtor is firmly convinced that the intent of the Agreement
has been met in regards to unanticipated market issues arising
that could not have been anticipated, resulting in reduced offers.
Continuing on with the sale through an immediate appointment of a
Trustee retention would be harmful and counterproductive to the
Estate.
The Debtor contends that the asset itself is performing well and
can pay its current expenses, maintain its tax reserves, maintain
insurance upon the property and continue management of the
property in the best interests of the Estate.
Even at lowered occupancy rates, the Debtor contends that it can
maintain these expenses and continue to pay the Single Asset Real
Estate payment to BBOK while continuing to deposit additional
funds to the cash collateral account. The Debtor does not
anticipate any substantial capital expenditures other than those
that are budgeted and ongoing to maintain the quality of the
property before a sale.
Due to the fact that the property is operating as it is and is not
incurring further obligations, the Debtor believes that the value
of the property is well above that currently provided in the sale
proceedings and contends that it is in the best interest of all
the creditors that the appointment of a Trustee be stayed or
rescinded so the property can be remarketed at an appropriate time
when the financial and occupancy situations have improved.
Meanwhile, The University National Bank (UNB) filed a response to
the Debtor's motion and requested the Court deny the requested
relief and require the appointment of a trustee without further
delay. The Debtor has failed to show by clear and convincing
evidence that the circumstances require postponement or deferral
of the intended action of the employment of a trustee. The
appointment of a third party trustee is a means of independently
determining these decisions for the benefit of all creditors and
parties in interest and will assist in determining whether the
optimum market value can be achieved in the near future or whether
an immediate sale would be appropriate under the circumstances.
The Bankers' Bank of Kansas, N.A. also objected to the Debtor's
motion insofar as it seeks to rescind or stay the appointment of a
special trustee that is to be appointed pursuant to the settlement
agreement. BBOK does not at this time take the position that the
trustee, once appointed, should immediately sell the property.
The question should be preserved until after the trustee has been
appointed and investigated sale potentials.
By separate motion, BBOK said it will identify the Special Trustee
to be appointed for the purpose of asset management sale of the
Apartment Complex, pursuant to the settlement agreement. Pursuant
to the settlement agreement, TICC should be terminated as asset
manager.
Kaw Valley Bank also filed a response to the Debtor's motion. Kaw
Valley Bank requests that the Debtor's Motion to Rescind be heard
as contemplated by the Settlement Agreement, that the Court enter
an order which is designed to result in a prompt sale of the
Quinton Point Apartments for an appropriate price, minimize
expenses and delay, that the interests of all creditors be
considered in interpreting the Settlement Agreement, and for such
other and further relief as is just and equitable.
Attorneys for Debtor can be reached at:
Todd A. Luckmane, Esq.
Kathryn E. Sheedy, Esq.
STUMBO HANSON, LLP
2887 S.W. MacVicar Ave.
Topeka, KS 66611
Tel: (785) 267-3410
Fax: 267-9516
E-mail: todd@stumbolaw.com
kathryn@stumbolaw.com
Attorneys for Kaw Valley Bank can be reached at:
Patricia E. Hamilton, Esq.
Bradley R. Finkeldei, Esq.
917 S.W. Topeka Boulevard
Topeka, KS 66612
Tel: (785) 408-8000
Fax: (785) 408-8003
Attorney for The University National Bank can be reached at:
Edward J. Nazar, Esq.
245 North Waco, Suite 402
Wichita, KS 67202-1117
Tel: 316-262-8361
Fax: 316-263-0610
E-mail: ebn1@redmondnazar.com
Attorneys Bankers' Bank of Kansas, N.A. for can be reached at:
Scott M. Hill, Esq.
Arthur S. Chalmers, Esq.
HITE FANNING & HONEYMAN, LLP
100 North Broadway, Suite 950
Wichita, KS 67202
Tel: (316) 265-7741
Fax: (316) 267-7803
E-mail: chalmers@hitefanning.com
hill@hitefanning.com
About Bluejay Properties
Based in Junction City, Kansas, Bluejay Properties, LLC, doing
business as Quinton Point, filed a bare-bones Chapter 11 petition
(Bankr. D. Kan. Case No. 12-22680) in Kansas City on Sept. 28,
2012. Bankruptcy Judge Robert D. Berger presides over the case.
Todd A. Luckman, Esq., and Kathryn E. Sheedy, Esq., at Stumbo
Hanson LLP, in Topeka.
The Debtor owns the Quinton Point Apartment Complex in Kansas City
valued at $17 million. The Debtor scheduled liabilities of
$13,112,325. The petition was signed by Michael L. Thomas of TICC
Prop., managing member.
Bankers' Bank of Kansas, owed approximately $13.08 million, is
represented by Arthur S. Chalmers of Hite, Fanning & Honeyman,
LLP. The University National Bank, owed approximately
$1.2 million, is represented by Edward J. Nazar of Redmond &
Nazar, L.L.P., and Todd Thompson of Thompson Ramsdell & Qualseth,
P.A.
BOISE PAPER: S&P Raises CCR From 'BB', Removed From CreditWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its corporate
credit rating on Boise Paper Holdings LLC to 'BBB' (the same as
Packaging Corp. of America) from 'BB'. Concurrently, S&P removed
the corporate credit rating on Boise Paper from CreditWatch with
positive implications, where they were placed on Sept. 16, 2013.
S&P subsequently withdrew the corporate credit rating on the
company and the issue-level and recovery ratings on the company's
senior secured and unsecured debt.
"The rating actions follow Packaging Corp. of America's completed
acquisition of Boise Paper on Oct. 25, 2013. Boise Paper's credit
agreement was terminated at the close of the acquisition. A
notice of full redemption was delivered to all holders of Boise
Paper's senior notes, which are to be fully redeemed," said
Standard & Poor's credit analyst Tobias Crabtree.
BUILDING #19: Seeks Authority to Use Cash Collateral
----------------------------------------------------
Building #19, Inc., and its debtor affiliates seek authority from
the U.S. Bankruptcy Court for the District of Massachusetts
(Eastern Division) to use cash collateral to continue their
operations while they conduct the sale of their 10 discount
stores.
Subject to the Carve Out, the Debtors' prepetition secured
creditors will be granted replacement liens that: (A) are limited
to the same types of postpetition property of the estate against
which the Secured Creditors held liens as of the Petition Date;
(B) maintain the same priority, validity and enforceability as the
Secured Creditors' prepetition liens; (C) will be recognized only
to the extent of the diminution in value of the Secured Creditors'
prepetition collateral after the Petition Date resulting from the
Debtor's use of the Cash Collateral during the bankruptcy case;
and (D) will not attach to any causes of action under Chapter 5 of
the Bankruptcy Code or any proceeds of those causes of action.
The Secured Creditors have agreed to a carveout from their
respective collateral or the proceeds of any collateral for: (a)
for any quarterly or other fees payable to the U.S. Trustee; (b)
the allowed fees and expenses incurred by any trustee appointed by
the Court, not to exceed $10,000 in the aggregate; (c) the allowed
fees and expenses incurred by professionals and agents retained by
the Debtor, prorated among those professionals after taking in to
account any prepetition or other retainers then on account; and
(d) the allowed fees and expenses incurred by professionals and
agents retained by any statutory committee, in an aggregate amount
not to exceed $25,000, prorated among those professionals.
Building #19, Inc., and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code on Nov. 1, 2013 (Case No. 13-
16429, Bankr. D.Mass.). Donald Ethan Jeffery, Esq., and Harold B.
Murphy, Esq., at MURPHY & KING, PROFESSIONAL CORPORATION, in
Boston, Massachusetts, serve as the Debtors' bankruptcy counsel.
BUILDING #19: To Conduct Going Out of Business Sales
----------------------------------------------------
Building #19, Inc., and its debtor affiliates seek authority from
the U.S. Bankruptcy Court for the District of Massachusetts
(Eastern Division) to conduct going out of business sales free and
clear of liens.
Building #19 operates a chain of 10 discount stores located in
Massachusetts, New Hampshire and Rhode Island, selling a wide
variety of goods, including food, furniture, giftware, house
wares, clothing, shoes, domestics and mattresses. The other
Debtors operate departments within Building 19's retail stores and
pay Building 19 a license fee to conduct those operations. The
Debtors acquire their inventory from purchases of surplus, salvage
goods, overstocks, closeouts and irregulars, and are therefore
able to offer the goods to consumers at substantially discounted
prices.
The Debtors have determined that the liquidation of their assets
in an orderly fashion is in the best interest of their respective
bankruptcy estates. Each of the Debtors' primary asset is its
inventory. Conducting so-called "going out of business" sales at
the Debtors' current retail locations will permit the sale of the
Debtors' respective inventory at the highest value in the shortest
period of time, and will maximize the value of the Debtors'
inventory for their creditors, according to D. Ethan Jeffery,
Esq., at Murphy & King, A Professional Corporation, in Boston,
Massachusetts. Time is required in order to prepare advertising,
manage personnel and take the other steps necessary to conduct an
efficient and successful GOB Sale. Delays in the commencement of
the GOB will increase the costs of doing the GOB Sale and reduce
the amount ultimately available for creditors.
In connection with the going out sales, the Debtors seek authority
to enter into an agreement with Gordon Brothers Retail Partners,
LLC, to provide consulting services with respect to the
liquidation of the Debtors' assets.
The Debtors will pay to Gordon Brothers a "Consulting Fee" as one
of the following:
Aggregate Gross Proceeds Consulting Fee
------------------------ --------------
Below $2,250,000 0.75% of Aggregate Gross Proceeds
$2,250,000-$2,499,999 1.00% of Aggregate Gross Proceeds
$2,500,000-$2,759,999 1.25% of Aggregate Gross Proceeds
$2,750,000-$2,999,999 1.50% of Aggregate Gross Proceeds
$3,000,000 and Above 1.75% of Aggregate Gross Proceeds
In addition, the Debtors will pay Gordon Brothers the sum of 50%
of the savings between the actual expenses incurred for the Gordon
Brothers Controlled Expenses and the budgeted amount for the
Gordon Brothers Controlled Expenses.
Building #19, Inc., and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code on Nov. 1, 2013 (Case No. 13-
16429, Bankr. D.Mass.). Donald Ethan Jeffery, Esq., and Harold B.
Murphy, Esq., at MURPHY & KING, PROFESSIONAL CORPORATION, in
Boston, Massachusetts, serve as the Debtors' bankruptcy counsel.
CASA CASUARINA: Wants Plan Filing Period Extended Until Dec. 28
---------------------------------------------------------------
Casa Casuarina, LLC, asks the U.S. Bankruptcy Court for the
Southern District of Florida to extend its exclusive periods to
file and obtain acceptances of a plan to 180 and 240 days,
respectively, after the Petition Date, citing, among others:
1. The deadline to file proofs of claim is set for shortly
after the expiration of the Debtor's exclusive period.
2. In the short time this case has been pending, the Debtor has
negotiated a resolution to the appointment of a trustee, settled a
dispute with a major creditor, and marketed and sold an extremely
high-profile asset. Obviously, it is clear that the Debtor has
made progress toward reorganization.
3. The Debtor has satisfied, and will continue to satisfy, each
of its post-petition obligations in the ordinary course.
4. Given the net proceeds generated by the sale, the Debtor's
prospect for reorganization is strong.
5. As noted in its schedules, many of the potential claims
remain unresolved. The extension of the exclusivity period will
enable the Debtor to make adequate disclosures necessary in the
negotiation and solicitation of the Plan.
The hearing to consider the motion is scheduled for Nov. 6, 2013,
at 10:30 a.m.
About Casa Casuarina
Casa Casuarina, LLC, owner of Gianni Versace's former South Beach
mansion on Ocean Drive in Miami Beach, Florida, filed a Chapter 11
petition (Bankr. S.D. Fla. Case No. 13-25645) in Miami on July 1,
2013. Peter Loftin signed the petition as manager. Judge Laurel
M. Isicoff presides over the case. The Debtor estimated assets of
at least $50 million and debts of at least $10 million. Joe M.
Grant, Esq., at Marwill Socarras Grant, P.L., serves as the
Debtor's counsel.
Until his Ponzi scheme fell apart in 2009, Scott Rothstein had
controlled the company that owned the property. Herbert Stettin
is the Chapter 11 trustee for Rothstein's law firm Rothstein
Rosenfeldt Adler PA, which has been in Chapter 11 liquidation
since November 2009.
Before Casa Casuarina filed for bankruptcy, Mr. Stettin had
reached agreement to settle his claim to partial ownership.
In its schedules, the Debtor disclosed $79,005,976.66 in total
assets and $32,506,799.29 in total liabilities as of the Petition
Date.
CELL THERAPEUTICS: Incurs $22.4 Million Net Loss in 3rd Quarter
---------------------------------------------------------------
Cell Therapeutics, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss attributable to common shareholders of $22.44 million
on $362,000 of total revenues for the three months ended Sept. 30,
2013, as compared with a net loss attributable to common
shareholders of $20.20 million on $0 of total revenues for the
same period a year ago.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss attributable to common shareholders of $59.83 million on
$1.79 million of total revenues as compared with a net loss
attributable to common shareholders of $96.24 million on $0 of
total revenues for the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $47.23
million in total assets, $33.39 million in total liabilities,
$13.46 million in common stock purchase warrants, and $387,000 in
total shareholders' equity.
As of Sept. 30, 2013, CTI's cash and cash equivalents totaled
$27.2 million.
Going Concern/Bankruptcy Warning
The Company's independent registered public accounting firm
included an explanatory paragraph in its reports on the Company's
consolidated financial statements for each of the years ended
Dec. 31, 2007, through Dec. 31, 2011, regarding their substantial
doubt as to the Company's ability to continue as a going concern.
Although the Company's independent registered public accounting
firm removed this going concern explanatory paragraph in its
report on the Company's Dec. 31, 2012, consolidated financial
statements, the Company expects to continue to need to raise
additional financing to fund its operations and satisfy
obligations as they become due. The inclusion of a going concern
explanatory paragraph in future years may negatively impact the
trading price of the Company's common stock and make it more
difficult, time consuming or expensive to obtain necessary
financing, and the Company cannot guarantee that it will not
receive such an explanatory paragraph in the future.
"We have acquired or licensed intellectual property from third
parties, including patent applications relating to intellectual
property for pacritinib, PIXUVRI, tosedostat, and brostallicin.
We have also licensed the intellectual property for our drug
delivery technology relating to Opaxio which uses polymers that
are linked to drugs, known as polymer-drug conjugates. Some of
our product development programs depend on our ability to maintain
rights under these licenses. Each licensor has the power to
terminate its agreement with us if we fail to meet our obligations
under these licenses. We may not be able to meet our obligations
under these licenses. If we default under any license agreement,
we may lose our right to market and sell any products based on the
licensed technology and may be forced to cease operations,
liquidate our assets and possibly seek bankruptcy protection.
Bankruptcy may result in the termination of agreements pursuant to
which we license certain intellectual property rights."
A copy of the Form 10-Q is available for free at:
http://is.gd/kga5N9
About Cell Therapeutics
Headquartered in Seattle, Washington, Cell Therapeutics, Inc.
(NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is
a biopharmaceutical company committed to developing an integrated
portfolio of oncology products aimed at making cancer more
treatable.
CENGAGE LEARNING: Can Hire Ocean Tomo as Valuation Consultants
--------------------------------------------------------------
Cengage Learning et al., sought and obtained permission from the
U.S. Bankruptcy Court to employ Ocean Tomo, LLC, as intellectual
property valuation consultants.
Stamford, Connecticut-based Cengage Learning --
http://www.cengage.com/-- provides innovative teaching, learning
and research solutions for the academic, professional and library
markets worldwide. Cengage Learning's brands include
Brooks/Cole, Course Technology, Delmar, Gale, Heinle, South
Western and Wadsworth, among others. Apax Partners LLP bought
Cengage in 2007 from Thomson Reuters Corp. in a $7.75 billion
transaction. The acquisition was funded in part with $5.6 billion
in new debt financing.
Cengage Learning Inc. filed a petition for Chapter 11
reorganization (Bankr. E.D.N.Y. Case No. 13-bk-44106) on July 2,
2013, in Brooklyn, New York, after signing an agreement where
holders of $2 billion in first-lien debt agree to support a
reorganization plan. The plan will eliminate more than $4 billion
of $5.8 billion in debt.
First-lien lenders who signed the so-called plan-support agreement
include funds affiliated with BlackRock Inc., Franklin Mutual
Adviser LLC, KKR & Co. and Oaktree Capital Management LP. Second-
lien creditors and holders of unsecured notes aren't part of the
agreement.
The Debtors have tapped Kirkland & Ellis LLP as counsel, Lazard
Freres & CO. LLC as financial advisor, Alvarez & Marsal North
America, LLC, as restructuring advisor, and Donlin, Recano &
Company, Inc., as claims and notice agent.
The Debtors filed a Joint Plan of Reorganization and Disclosure
Statement dated Oct. 3, 2013, which provides that the Debtors took
extreme care to advance and protect the interest of unsecured
creditors -- including seeking to protect four primary sources of
potential recoveries for unsecured creditors and providing them
with appropriate time to conduct diligence, and discuss their
conclusions on, among other things, the value of those sources of
potential recoveries.
CENTRAL COVENTRY FIRE DISTRICT: Judge Cracks Down on Taxpayers
--------------------------------------------------------------
The Providence Journal reports that Superior Court Judge Brian P.
Stern will require delinquent taxpayers of the cash-strapped
Central Coventry Fire District in Rhode Island to appear in court
and explain why they haven't paid.
The district, which has been in receivership, a form of
bankruptcy, since October 2012, is owed about $600,000 in back
taxes, according to Providence Journal.
The report notes that Judge Stern ordered the court-appointed
special master for the district, Richard Land, to prepare a list
of taxpayers who have not paid. Judge Stern, the report relates,
said he will then order them to appear in court and explain why.
"I don't care whether it's in this court or in the hallway," Stern
said, the report notes.
There are about 7,000 taxpayers in the district.
The report discloses that after hearing expert testimony about the
impact of closing the fire district, Judge Stern declined to order
immediate liquidation.
The report relates hat voters approved a $5.6 million budget for
fiscal year 2013-2014, but that budget is unlikely to fund the
district for the entire year. Under those circumstances, the
seven-member board of directors unanimously voted to have the
court liquidates the district, the report adds.
CHEMTURA CORP: Posts $44-Mil. Net Loss in Third Quarter
-------------------------------------------------------
Chemtura Corporation on Nov. 4 announced financial results for the
third quarter ended September 30, 2013. The Company also filed
with the Securities and Exchange Commission our Quarterly Report
on Form 10-Q for the quarter ended September 30, 2013. For the
third quarter of 2013, Chemtura reported net sales of $569 million
and a net loss from continuing operations attributable to Chemtura
on a GAAP basis of $44 million, or $0.45 per share. Net earnings
from continuing operations attributable to Chemtura on a managed
basis were $10 million, or $0.10 per share.
"With the agreement to sell our Consumer Products business, this
quarter we have adopted discontinued operations treatment for this
business," commented Craig A. Rogerson, Chairman, President and
CEO of Chemtura. "In conjunction with our results for the third
quarter of 2013, we have provided investors with our recent
historical quarterly results recast to reflect the adoption of
discontinued operations. While muted in the near term by the
weaker demand conditions for our Industrial Engineered Products
segment, the divestiture of our Consumer Products business over
time will expand Chemtura's percentage margins and lift our growth
rates to assist us in meeting our financial and strategic
performance goals. In the interim, the actions we took to
eliminate stranded costs associated with the sale of our
Antioxidants business contemplated this transaction, giving us a
head start. We will eliminate the remaining stranded costs
associated with the Consumer Products business upon the closing of
the transaction."
"With the liquidity being generated by our portfolio management
actions, we are very focused on capital allocation," continued
Mr. Rogerson. "In the third quarter, we repurchased approximately
2.2 million shares under our share repurchase program at a cost of
$50 million, using a portion of the proceeds from the Antioxidant
sale to return value to shareholders. Following the closing of
the Consumer Products transaction, we will pay down debt to
maintain our leverage excluding Consumer Products and increase the
size of our share repurchase program. Meanwhile, in 2014, with
both capital spending and pension plan contributions trending
lower, we will be focused on improving free cash flow."
"As discussed in our third quarter outlook, this was a tough
quarter for our Industrial Engineered Products segment," commented
Mr. Rogerson. "Unit volume in the quarter was relatively stable
sequentially with some growth from insulation foam applications
offset by lower electronic volumes as we elected to hold prices.
The profitability of the segment deteriorated sequentially through
the impact of lower utilization of manufacturing capacity, higher
input costs, cumulative effects on pricing and the requirement to
establish a reserve against some slower moving electronics
inventory. Industrial Performance Products saw comparable
conditions to last quarter, but had to absorb the cost of the
start-up of their new plants in China and the Netherlands. They
ended up falling short of fully offsetting these additional costs.
Chemtura AgroSolutions put up another strong quarter, with
Adjusted EBITDA up 17% year-on-year."
Outlook
"Recast for the discontinued operations treatment of the Consumer
Products business, managed basis operating income in the fourth
quarter of 2012 was $28 million," observed Mr. Rogerson. "It is
our goal to exceed this performance level, before any costs we
incur in our process of exploring the sale of Chemtura
AgroSolutions. Although the performance of Chemtura AgroSolutions
will be seasonally lower in the fourth quarter than in the third
quarter, we anticipate that they, as well as Industrial
Performance Products, will deliver year-on-year improvement.
Corporate expense will be lower than a year ago. Industrial
Engineered Products is expected to improve over its performance in
the third quarter of 2013 but is unlikely to reach the operating
income it delivered in the fourth quarter of 2012."
Mr. Rogerson concluded, "Demand conditions for Industrial
Engineered Products have now been relatively stable for two
quarters. While a sudden upturn in demand is less likely in the
fourth quarter, we will benefit from actions to take out cost and
better utilize our manufacturing assets. We announced increases
in certain selling prices for brominated flame retardants in the
latter part of the third quarter which have held in some
electronic applications but pricing for insulation foam
applications remains depressed. The net effect of these actions
should be a positive turn in the performance trend for this
segment."
Non-Operating Activities Reflected in the Third Quarter Financial
Results
-- In September 2013, the Company's Board of Directors approved
the sale of our Consumer Products segment subject to the
completion of definitive transaction documents and in October
2013, the Company entered into a stock purchase agreement to sell
its Consumer Products business, including dedicated manufacturing
plants in the U.S. and South Africa, to KIK Custom Products Inc.
for $315 million subject to certain customary pre- and post-
closing adjustments, primarily for working capital and assumed
pension liabilities. The transaction is subject to customary
closing conditions and regulatory approvals and is targeted to
close on December 31, 2013.
-- The assets and liabilities of the Consumer Products segment
have been presented as assets and liabilities held for sale.
Additionally, the Company determined that discontinued operations
treatment applied and earnings and direct costs associated with
the Consumer Products segment have been presented as earnings
(loss) from discontinued operations, net of tax in the tables
attached to this release for the current and comparative periods.
On November 4, 2013, the Company also filed an 8-K attaching
comparable information for its historical annual periods for the
years ended December 2009, 2010, 2011 and 2012 and for the
quarterly periods in the years ended December 31, 2011 and 2012,
the quarterly period ended March 31, 2013, and the quarterly and
six month periods ended
June 30, 2013.
-- Certain functional and other expenses that are managed
company-wide are allocated to the Company's segments. The portion
of such costs allocated to the Consumer Products segment do not
transfer directly to the buyer under the transaction and will be
subject to a process of elimination after the sale. As such, in
historic periods these costs are shown as part of continuing
operations in the corporate segment and not included under
earnings (loss) from discontinued operations, net of tax. These
costs approximate $5 million and $4 million for the quarters ended
September 30, 2013 and 2012, respectively and $10 million and $9
million for the nine months ended September 30, 2013 and 2012,
respectively. Additionally, the Company's Corporate segment
included $3 million for the quarters ended September 30, 2013 and
2012 and $8 million for the nine months ended September 30, 2013
and 2012 of amortization expense related directly to its Consumer
Products segment which has now been included in earnings (loss)
from discontinued operations, net of tax in its Consolidated
Statement of Operations.
-- In July 2013, the Company undertook a registered public
offering of $450 million of 5.75% Senior Notes due 2021. The
proceeds were primarily utilized to completed the purchase of $354
million of the Company's 7.875% Senior Notes due 2018 that had
been tendered in a concurrent tender offer and consent
solicitation. As a result of this transaction, the Company
recorded a loss on early extinguishment of debt of $50 million in
the quarter ended September 30, 2013. Additionally, with the
remaining proceeds and cash on hand the Company made a prepayment
on the Company's senior secured term loan facility due 2016 of
$100 million in the third quarter of 2013. These refinancing
actions will reduce annual interest expense by approximately $8
million.
-- In October 2013, the Company's Board decided to explore the
sale of its agrochemicals business, Chemtura AgroSolutions. There
is no definitive timetable for the sale process and there can be
no assurance that the process will result in a sale of the
Chemtura AgroSolutions business. Therefore, as of September 30,
2013, the Company did not meet the criteria to report the assets
and liabilities associated with this segment as assets held for
sale and therefore, the earnings and direct costs of this segment
remain as part of the Company's continuing operations.
-- In October 2013, the Company entered into an amendment to its
Term Loan. The amendment to the Term Loan, among other things,
(i) reduces the interest rate and LIBOR floor on the term loans
outstanding under the Term Loan agreement, (ii) provides for a 1%
prepayment premium if the term loans are refinanced with certain
specified refinancing debt within 6 months, (iii) introduces
scheduled quarterly amortization of the term loans in the amount
of 1% annually, and (iv) permits additional flexibility for under
certain of the Company's operating covenants (including but not
limited to additional flexibility for debt, investments,
restricted payments and dispositions) in the Term Loan agreement.
The Amendment became effective on October 30, 2013. The amendment
will further reduce annual interest expense by approximately $6
million.
Third Quarter 2013 Business Segment Highlights
-- Industrial Performance Products' net sales increased $23
million or 11% as a result of a $21 million increase in sales
volume, a $1 million year-over-year increase in selling prices and
$1 million from favorable foreign currency translation. Operating
income on a managed basis decreased $2 million or 7% in the third
quarter of 2013 to $26 million. Operating income on a GAAP basis
of $24 million included $2 million for the accelerated recognition
of asset retirement obligations. Sales volume improvements in the
Company's petroleum additives and certain synthetic lubricant
products due to a higher demand than a year ago offset some
decline in urethane product sales volume which continues to be
affected by weak demand in mining and electronic applications
across all regions. The benefit of the increased sales volumes
was diluted by product mix coupled with some raw material
increases. The Company recorded $2 million of unabsorbed costs
related to the initial start-up of the Company's new Nantong,
China and Ankerweg, Netherlands facilities. Operating income also
reflected increases in the Company's selling, general and
administrative costs and research and development costs offset by
the favorable effects of foreign currency translation.
-- Industrial Engineered Products' net sales decreased $5
million or 2% reflecting $14 million in lower selling prices,
partly offset by an $8 million increase in sales volumes and $1
million from favorable foreign currency translation. Operating
income decreased $29 million from the third quarter of 2012 to $1
million. Lower net sales and operating income reflected lower
selling prices and weaker sales volumes year-over-year for the
Company's brominated products used in the insulation foam and
electronic applications as a result of lower overall end-market
demand. Some of this weakness was offset by stronger demand from
clear brine fluids used in off-shore gas production and other
industrial applications coupled with an increase in volume of
organometallic tin-based products and products used as components
of polyolefin polymerization catalysts as well as favorable
selling prices for the tin-based products. Operating income was
unfavorably impacted by an increase in manufacturing costs and
unfavorable manufacturing variances of $6 million and a charge of
$6 million for the quarter related to excess inventory resulting
from the prolonged reduction in electronics volume and $3 million
increase in SGA&R and other costs.
-- Chemtura AgroSolutions' net sales increased $5 million or 4%
resulting from $6 million in higher selling prices and $3 million
in higher sales volume partly offset by $4 million of unfavorable
foreign currency translation. Operating income increased $3
million reflecting the higher selling prices, $2 million in lower
manufacturing costs and $2 million in lower raw material costs,
offset in part by $2 million in unfavorable foreign currency
translation, $1 million from product mix changes, and a $2 million
increase in other costs. The Company experienced strong market
demand for insecticides and seed treatment products, particularly
in Latin America. North America sales volumes declined from the
same quarter in 2012 reflecting the relative timing of orders in
2013, having shifted from the third quarter to the second quarter.
Sales volume in Europe benefited from strong weed pressure
increasing demand for herbicides and adjuvants. Operating income
also benefited from favorable manufacturing variances due to the
higher sales volumes.
-- Corporate expenses for the third quarter of 2013 on a GAAP
basis decreased to $19 million compared with $28 million in 2012.
Corporate expenses included amortization expense related to
intangible assets and depreciation expense of $4 million and $5
million for the third quarters of 2013 and 2012, respectively, and
non-cash stock compensation expense of $2 million for the third
quarters of 2013 and 2012. The decrease was primarily due to
lower accrued expense for employee incentive plan and the sale of
a non-operating site, offset by project costs associated with the
Company's initiative to explore the sale of Chemtura
AgroSolutions, increased workers compensation expense and an
increase in the Company's environmental reserves at its El Dorado,
Arkansas facility. Stranded costs related to the Antioxidant
business were eliminated during the first half of 2013 such that
there was no expense in the third quarter of 2013 but were $3
million for the third quarter of 2012. Stranded costs related to
the Consumer Products segment were $5 million and $4 million for
the third quarters of 2013 and 2012, respectively. Additionally,
the Company's Corporate segment included $3 million and $4 million
for the third quarters of 2013 and 2012, respectively, of
amortization expense related directly to its Antioxidant business
and Consumer Products segment which has now been included in
earnings (loss) on discontinued operations, net of tax.
-- The Consumer Products segment is being reported as a
discontinued operation for the current and prior periods.
Third Quarter 2013 Results - GAAP
-- Consolidated net sales of $569 million for the third quarter
of 2013 were $23 million or 4% higher than 2012 driven by higher
volume of $32 million, offset by lower selling prices of $7
million and unfavorable foreign currency translation of $2
million.
-- Gross profit for the third quarter of 2013 was $121 million,
a decrease of $27 million compared with the third quarter of 2012.
Gross profit as a percentage of net sales decreased to 21% as
compared with 27% in the same quarter of 2012. Gross profit was
impacted by $6 million in unfavorable manufacturing costs and
variances, $7 million in lower selling prices and variances, a
charge of $6 million related to an increase in the Company's
excess inventory reserve due to the prolonged reduction in
electronics demand for its brominated products and a $8 million
increase in other costs.
-- Operating income for the third quarter of 2013 decreased $23
million to $27 million compared with $50 million for the third
quarter of 2012. The decrease was primarily due to the $27
million decrease in gross profit and a $1 million increase in
other costs, partly offset by $3 million in lower SGA&R costs and
a $2 million decrease in depreciation and amortization expense.
-- Included in the computation of operating income for the
third quarters of 2013 and 2012 was $3 million and $2 million,
respectively, of stock-based compensation expense. Stock-based
compensation expense for continuing operations is expected to be
approximately $14 million for 2013.
-- Interest expense was $14 million during the third quarter of
2013 which was $3 million lower than 2012, primarily due to higher
capitalized interest expense in 2013 and fees associated with the
securitization program which was suspended in 2012.
-- Loss on the early extinguishment of debt of $50 million in
the third quarter of 2013 included $42 million for the difference
between the principal amount of the 2018 Senior Notes tendered and
the sum of the tender offer consideration and consent payments and
$8 million for the write-off of unamortized capitalized financing
costs and original issuance discount with respect to the 2018
Senior Notes purchased under the tender offer.
-- Other expense, net of $4 million in the third quarter of
2013 was slightly lower than the third quarter of 2012.
-- Reorganization items, net was $1 million in the third
quarter of 2012 which is comprised primarily of professional fees
directly associated with the Chapter 11 reorganization.
-- The income tax expense in the third quarter of 2013 was $3
million compared with $5 million in the third quarter of 2012.
-- Net loss from continuing operations attributable to Chemtura
for the third quarter of 2013 was $44 million, or $0.45 per
diluted share, compared with net earnings from continuing
operations attributable to Chemtura of $22 million, or $0.22 per
diluted share for the third quarter of 2012.
-- Earnings from discontinued operations, net of tax
attributable to Chemtura for the third quarter of 2013 was $7
million, or $0.07 per diluted share compared with a loss from
discontinued operations, net of tax attributable to Chemtura for
the third quarter of 2012 of $13 million, or $0.13 per diluted
share. Discontinued operations includes the Antioxidant and
Consumer Products businesses.
-- Loss on sale of discontinued operations, net of tax
attributable to Chemtura for the third quarter of 2013, was $3
million, or $0.03 per diluted share, which represents the
Antioxidant business.
Third Quarter 2013 Results - Managed Basis
-- On a managed basis, third quarter 2013 gross profit was $121
million, as compared with $148 million in the same period last
year. Gross profit as a percentage of net sales decreased to 21%
as compared with 27% in the same quarter of 2012. The decrease in
gross profit was primarily due to unfavorable manufacturing costs
and variances, lower selling prices and the increase of $6 million
in the Company's excess inventory reserve related to the prolonged
reduction in electronics demand for its brominated products.
-- On a managed basis, third quarter 2013 operating income was
$33 million as compared with $51 million in the same period last
year. The decrease in operating income primarily reflected the
decrease in gross profit, partially offset by lower SGA&R costs
and lower depreciation and amortization expense.
-- Adjusted EBITDA in the third quarter of 2013 was $59 million
as compared with $79 million in the third quarter of 2012 (see the
tables attached to this earnings release for a reconciliation of
the computation of Adjusted EBITDA). The decrease in Adjusted
EBITDA was principally driven by lower gross profit offset in part
by lower SGA&R costs. Adjusted EBITDA for the last twelve months
decreased from $313 million at December 31, 2012 to $273 million
at September 30, 2013. Adjusted EBITDA excludes the Antioxidant
and Consumer Products businesses which are classified as
discontinued operations.
-- Net earnings from continuing operations before income taxes
on a managed basis in the third quarters of 2013 and 2012 were $15
million and $29 million, respectively, and exclude pre-tax GAAP
adjustments of $56 million and $2 million, respectively. These
adjustments are primarily related to the loss on early
extinguishment of debt, facility closures, severance and related
costs, accelerated recognition of asset retirement obligations and
accelerated depreciation of property, plant and equipment.
-- Chemtura has chosen to apply an estimated tax rate to the
Company's managed basis pre-tax income to simplify for investors
the comparison of underlying operating performance. In 2012, the
Company applied an estimated managed basis tax rate of 28%
reflecting the expected performance of its core operations in
2012. With a projected shift in relative profitability to the
U.S. from international operations, in 2013, the Company is
applying an estimated managed basis tax rate of 31%. The
estimated managed basis tax rate reflects (i) the impact of the
adjustments made in the preparation of pre-tax managed basis
income; (ii) the exclusion of the benefit or charge arising from
the creation or release of valuation allowances on U.S. income;
(iii) the utilization of foreign tax credits generated in the
current year; and (iv) the conclusion that the Company will
indefinitely re-invest the majority of the earnings of the
Company's foreign subsidiaries in its international operations.
The Company will continue to monitor its estimated managed basis
tax rate and may modify it based on changes in the composition of
its taxable income and in tax rates around the world.
Cash Flows Details - GAAP
-- Net cash provided by operating activities for the third
quarter of 2013 was $136 million as compared with $129 million for
the third quarter of 2012.
-- Capital expenditures for the third quarter of 2013 were $37
million compared with $36 million in the third quarter of 2012,
reflecting investments to support organic growth initiatives
including building the Company's Nantong multi-purpose plant in
China.
-- Cash income taxes paid (net of refunds) in the third quarter
of 2013 and 2012 were $7 million.
-- On May 9, 2013, the Board authorized an increase in the
Company's share repurchase program by $41 million to $141 million
and extended the program through March 31, 2014. During the third
quarter of 2013, the Company repurchased 2.2 million shares at a
cost of $50 million. As of September 30, 2013, the remaining
authorization under the program was approximately $50 million.
-- The Company's total debt was $894 million as of September
30, 2013 and as of June 30, 2013. Cash and cash equivalents from
continuing operations increased to $311 million as of September
30, 2013 compared with $306 million as of June 30, 2013.
-- Total debt less cash and cash equivalents of $583 million as
of September 30, 2013 decreased $5 million compared with total
debt less cash and cash equivalents of $588 million as of June 30,
2013.
About Chemtura Corp.
Based in Middlebury, Connecticut, Chemtura Corporation --
http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a
global manufacturer and marketer of specialty chemicals, crop
protection products, and pool, spa and home care products.
Chemtura Corporation and 26 of its U.S. affiliates filed voluntary
petitions for relief under Chapter 11 (Bankr. S.D.N.Y. Case No.
09-11233) on March 18, 2009. The Debtors disclosed total assets
of $3.06 billion and total debts of $1.02 billion as of the
Chapter 11 filing.
M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York,
served as bankruptcy counsel for the Debtors. Wolfblock LLP was
the Debtors' special counsel. The Debtors' auditors and
accountant were KPMG LLP; their investment bankers are Lazard
Freres & Co.; their strategic communications advisors were Joele
Frank, Wilkinson Brimmer Katcher; their business advisors were
Alvarez & Marsal LLC and Ray Dombrowski served as their chief
restructuring officer; and their claims and noticing agent was
Kurtzman Carson Consultants LLC.
The Official Committee of Equity Security Holders tapped
Jay Goffman, Esq., and David Turetsky, Esq., at Skadden Arps Slate
Meagher & Flom LLP, in New York, as counsel. the Official
Committee of Unsecured Creditors retained Daniel H. Golden, Esq.,
Philip C. Dublin, Esq., and Meredith A. Lahaie, Esq., at Akin Gump
Strauss Hauer & Feld LLP, in New York, as counsel.
Chemtura completed its financial restructuring and emerged from
protection under Chapter 11 in November 2010. In connection with
the emergence, reorganized Chemtura is now listed on the New York
Stock Exchange under the ticker "CHMT".
CHINA NATURAL: Seeks 'Exclusivity' Until Feb. 4
-----------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that China Natural Gas Inc., the operator of a pipeline in
China, said it has worked out a pending settlement of claims with
the U.S. Securities and Exchange Commission and retained a chief
restructuring officer.
The SEC settlement and the CRO together justify a three-month
extension of its exclusive right to propose a reorganization plan,
the company said in papers filed last week. If the bankruptcy
court in New York approves at a hearing on Nov. 13, exclusivity
will be pushed to Feb. 4.
About China Natural
Headquartered in Xi'an, Shaanxi Province, P.R.C., China Natural
Gas, Inc., was incorporated in the State of Delaware on March 31,
1999. The Company through its wholly owned subsidiaries and
variable interest entity, Xi'an Xilan Natural Gas Co., Ltd., and
subsidiaries of its VIE, which are located in Hong Kong, Shaanxi
Province, Henan Province and Hubei Province in the People's
Republic of China ("PRC"), engages in sales and distribution of
natural gas and gasoline to commercial, industrial and residential
customers through fueling stations and pipelines, construction of
pipeline networks, installation of natural gas fittings and parts
for end-users, and conversions of gasoline-fueled vehicles to
hybrid (natural gas/gasoline) powered vehicles at 0ptmobile
conversion sites.
On Feb. 8, 2013, an involuntary petition for bankruptcy was filed
against the Company by three of the Company's creditors, Abax
Lotus Ltd., Abax Nai Xin A Ltd., and Lake Street Fund LP (Bankr.
S.D.N.Y. Case No. 13-10419). The Petitioners claimed that they
have debts totaling $42,218,956.88 as a result of the Company's
failure to make payments on the 5% Guaranteed Senior Notes issued
in 2008. Adam P. Strochak, Esq., at Weil, Gotshal & Manges, LLP,
in Washington, D.C., represents the Petitioners as counsel.
China Natural Gas, Inc., sought dismissal of the involuntary
petition but in July 2013, it consented to the entry of an
order for relief under Chapter 11 of the U.S. Code.
The last regulatory filing listed assets as of June 30 of $29.5
million and liabilities totaling $82.5 million.
CITY NATIONAL: Fitch Rates $100MM Non-Cumulative Pref. Stock 'BB'
-----------------------------------------------------------------
Fitch Ratings assigns a 'BB' rating to City National Corporations
$100 million non-cumulative perpetual preferred issuance. The
coupon is set at 6.75% for 10 years. After 10 years, the issue is
callable. If the issue is not called, it converts to a floating
rate of LIBOR plus 4.052%
Key Rating Drivers -Subordinated Debt And Other Hybrid Securities:
City National Corporation's preferred stock is rated five notches
below its viability rating in accordance with Fitch Ratings
criteria 'Assessing and Rating Bank Subordinated and Hybrid
Securities' dated Dec. 5, 2012. This reflects the loss-absorbing
nature of the preferred stock as well as its non-cumulative or
deferral feature.
Rating Sensitivities - Subordinated Debt And Other Hybrid
Securities:
City National Corporation's preferred stock rating is sensitive to
changes to the company's viability rating. Any change to the
viability rating will impact the preferred stock rating.
The rating actions are as follows:
City National Corporation
-- Non-cumulative preferred at 'BB'
CLINICA REAL: Wants Plan Filing Period Extended Until March 13
--------------------------------------------------------------
Clinical Real, LLC, asks the U.S. Bankruptcy Court for the
District of Arizona to further extend its exclusive periods to
file and obtain acceptances of a plan until March 13, 2014, and
May 12, 2014, respectively.
The Debtor explains:
"The primary factor leading to the filing of the Chapter 11
petition was a lawsuit filed by State Farm Mutual Automobile
Insurance Company and State Farm Fire & Casualty Co. in which both
the Debtor and its principal, Keith M. Stone, were named
defendants, alleging fraudulent business practices and a pattern
of racketeering activity ("State Farm Litigation"). The Debtor
vigorously disputes these claims.
"State Farm filed a Motion to Dismiss or in the Alternative
Abstain, or Relief from the Automatic Stay which the Court denied
in part and granted in part (Dkt. No. 70). The Court denied the
dismissal of the case and abstention. The Court did grant relief
from the automatic stay to allow the State Farm Litigation to
continue in State Court.
"The State Court initially set the trial for Sept. 3, 2013, ending
in mid-October. In light of the same the Debtor filed an initial
Motion on Dec. 19, 2012 (Dkt. No. 92) and requested an exclusivity
extension through 30 days after the resolution of trial which the
Court granted on Feb. 20, 2013 (Dkt. No. 121). The grounds for
this initial Motion were that if exclusivity period is not
extended, State Farm will possess the ability to pursue a Plan
dramatically adverse to the Debtor prior to the litigation being
fully adjudicated. If judgment is entered in favor of the Debtor,
but State Farm submitted a Plan and obtained confirmation prior to
the adjudication of the litigation, irreparable harm and injury
would occur to the Debtor and estate.
"The State Court subsequently continued the trial from Sept. 3,
2013, to Feb. 3, 2014, ending April 1, 2014. In light of this
development the Debtor makes this motion to extend exclusivity
pursuant to 11 U.S.C. Section 1121(d) through March 13, 2014, the
18 month limit allowable under 11 U.S.C. Section 1121(d)(1). The
requested extension for the initial 120 day plan filing deadline
is to March 13, 2014, and the requested extension for the 180 plan
acceptance deadline is to May 12, 2014.
"Even though the March 13 date is still prior to the resolution of
the trial, it is close enough to preclude, as a practical matter,
the prejudice caused to the Debtor and the estate by a State Farm
plan being filed well ahead of the trial result."
For these same reasons, Keith Michael Stone has requested a second
enlargement of his exclusive period to file a plan from Nov. 1,
2013, to March 13, 2014. Keith Michael Stone's Chapter 11 case is
jointly administered with that of Clinica Real, LLC, under Case
No. 12-20451. The source of income for Mr. Stone is his
chiropractic and pain management practice, Clinica Real, LLC.
About Clinica Real
Clinica Real, LLC, dba Clinica Real Rehabilitation & Chiropractic,
filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 12-20451) in
Phoenix, Arizona, on Sept. 13, 2012. Clinica Real, doing business
as Clinica Real Rehabilitation & Chiropractic, disclosed
$10.5 million in assets and $29.8 million in liabilities.
The Debtor has no real property. Its largest asset is an
unliquidated claim against State Farm Mutual Automobile Insurance
Co. and State Farm Fire & Casualty Co., which the Debtor valued at
$9.75 million. Most of the claims against the Debtor are
unsecured. State Farm has an unsecured claim of $29 million,
which the Debtor says is disputed.
Judge Sarah Sharer Curley presides over the case. Mark J. Giunta,
Esq., serves as the Debtor's counsel. The petition was signed by
Keith M. Stone, member.
The U.S. Trustee has not appointed an official committee.
Keith Michael Stone filed a separate Chapter 11 petition (Bankr.
D. Ariz. Case No. 12-20452) on Sept. 13, 2012. Mr. Stone is
represented by Cindy L. Greene, Esq., at Carmichael & Powell,
P.C., in Phoenix, Arizona.
The cases are jointly administered under Case No. 12-20451.
COMSTOCK MINING: Posts $4.52-Mil. Net Loss in Sept. 30 Quarter
--------------------------------------------------------------
Comstock Mining Inc. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting a net loss
of $4.52 million on $6.82 of total revenues for the three months
ended Sept. 30, 2013, compared to a net loss of $8.99 million on
$182,792 of total revenues for the same period last year.
The Company's balance sheet at Sept. 30, 2013, showed $46.49
million in total assets, $24.79 million in total liabilities, and
stockholders' equity of $21.71 million.
A copy of the Form 10-Q is available at:
http://is.gd/WUhVQB
About Comstock Mining
Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based,
gold and silver mining company with extensive, contiguous property
in the historic Comstock district. The Company began acquiring
properties in the Comstock in 2003. Since then, the Company has
consolidated a substantial portion of the Comstock district,
secured permits, built an infrastructure and brought the
exploration project into test mining production. The Company
continues acquiring additional properties in the Comstock
district, expanding its footprint and creating opportunities for
exploration and mining. The goal of the Company's strategic plan
is to deliver stockholder value by validating qualified resources
(measured and indicated) and reserves (probable and proven) of
3,250,000 gold equivalent ounces by 2013, and commencing
commercial mining and processing operations by 2011, with annual
production rates of 20,000 gold equivalent ounces.
Comstock Mining incurred a net loss of $30.76 million in 2012, a
net loss of $11.60 million in 2011 and a net loss of
$60.32 million in 2010. As of June 30, 2013, the Company had
$38.45 million in total assets, $21.52 million in total
liabilities and $16.93 million in total stockholders' equity.
COSTA BONITA: Has Until Dec. 24 to File Amended Plan
----------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico has
granted Costa Bonita Beach Resort, Inc., an extension of sixty
(60) days, or until Dec. 24, 2013, to file an Amended Disclosure
Statement and Amended Plan of Reorganization in its Chapter 11
case.
In papers filed with the Court on Oct. 25, 2013, the Debtor said:
"This week Debtor and DF Servicing LLC's representatives met and
undertook settlement conversations directed to resolve and
simplify the controversies between them. An extension of time of
sixty (60) days for the filing of Debtor's Amended Plan and
Disclosure Statement will promote the aforesaid goal."
About Costa Bonita
Costa Bonita Beach Resort, Inc., owns 50 apartments at the Costa
Bonita Beach Resort in Culebra, Puerto Rico. It filed a
bankruptcy petition under Chapter 11 of the Bankruptcy Code for
the first time (Bankr. D.P.R. Case No. 09-00699) on Feb. 3, 2009.
During this case, the Court entered an Opinion and Order finding
that the Debtor satisfied all three (3) prongs of the Single Asset
Real Estate, and, as such is a SARE case subject to 11 U.S.C. Sec.
362(d)(3). The Court also entered an Order modifying the automatic
stay to allow creditor DEV, S.E., to continue in state court
proceedings for the removal of the illegal easement and the
restoration of DEV, S.E.'s land to its original condition by the
Debtor. The first bankruptcy petition was dismissed on May 10,
2011 on the grounds that the Debtor failed to comply with an April
21, 2011 Order and the Debtor's failure to maintain adequate
insurance. The case was subsequently closed on Oct. 11, 2011.
Costa Bonita Beach Resort filed a second bankruptcy petition
(Bankr. D.P.R. Case No. 12-00778) on Feb. 2, 2012, in Old San
Juan, Puerto Rico. In the 2012 petition, the Debtor said assets
are worth $15.1 million with debt totaling $14.2 million,
including secured debt of $7.8 million. The apartments are valued
at $9.6 million while a restaurant and some commercial spaces at
the resort are valued at $3.67 million. The apartments serve as
collateral for the $7.8 million while the commercial property is
unencumbered.
Bankruptcy Judge Enrique S. Lamoutte presides over the 2012 case.
Charles Alfred Cuprill, Esq., serves as counsel in the 2012 case.
The petition was signed by Carlos Escribano Miro, president.
CONQUEST SANTA FE: Files Motion for Dismissal of Chapter 11 Case
----------------------------------------------------------------
Conquest Santa Fe, L.L.C., asks the U.S. Bankruptcy Court for the
District of Arizona to dismiss its Chapter 11 case.
The Debtor explains: "The Debtor and its secured lender, LPP
Mortgage Ltd., have filed a Joint Motion to Approve Settlement
Agreement and for Stay Relief [Docket No. 96], which seeks the
Court's approval of a Settlement Agreement between the Debtor and
LPP. If the Settlement Agreement is approved by this Court, after
notice and hearing, LPP will be provided with stay relief, thereby
allowing LPP to proceed with the pending foreclosure of all of the
Debtor's real and personal property and to obtain a receiver for
the Hotel. Once the receiver is appointed or the foreclosure
occurs, the Debtor will no longer have any assets remaining in its
possession or in the Estate, leaving the Debtor with no ability or
reason to reorganize under Chapter 11."
According to the Debtor, it has paid or will pay all allowed
administrative claims including the United States Trustee's fees,
but excluding professional fees and insider claims. "Once the
settlement with LPP is approved and authorized by the Court and
once the receiver is appointed or the foreclosure occurs, there
will be no possibility of a successful reorganization by the
Debtor."
The Debtor there is no cause for the Court to convert its case to
a liquidation case under Chapter 7. "Due to the valid and
perfected liens in favor of LPP and the substantial sums due LPP,
there will be no remaining assets for administration by a Chapter
7 Trustee, once the settlement with LPP is approved and
implemented. Also, based on an investigation by counsel for the
Debtor, the Estate possesses no avoidance actions (pursuant to
Sections 547 and 548) which would justify or support conversion of
this case, rather than its dismissal. All payments made prior to
filing of this bankruptcy case were made in the ordinary course of
business. Insiders were never paid salaries or distributions. The
only payment made to a related entity was for reimbursement of
expenses and for construction services related to building the
Hotel."
The hearing on the Motion is set for Nov. 12, 2013, at 11:00 a.m.
About Conquest Santa Fe
Conquest Santa Fe, LLC, filed a Chapter 11 petition (Bankr. D.
Ariz. Case No. 12-24937) in Tucson, Arizona, Nov. 16, 2012,
estimating at least $10 million in assets and liabilities.
Judge Eileen W. Hollowell presides over the case. Lowell E.
Rothschild, Esq., Scott H. Gan, Esq., and Frederick J. Petersen,
Esq., at Mesch, Clark & Rothschild, P.C., in Tucson, Arizona,
serve as counsel to the Debtor.
The Debtor owns and operates the 92-room Hyatt Place Hotel on
Cerillos Road in Santa Fe, New Mexico, which opened for business
on May 25, 2010.
The Debtor filed its First Amended Chapter 11 Plan and Disclosure
Statement on May 20, 2013.
CONQUEST SANTA FE: Can Access LPP Cash Collateral Until Dec. 31
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona, in a
stipulated sixth interim order dated Oct. 25, 2013, authorized
Conquest Santa Fe, L.L.C., to use cash collateral of LPP Mortgage
Ltd. until Dec. 31, 2013, pursuant to a budget.
As adequate protection, Lender is granted a continuing, valid, and
perfected Replacement Liens in all property of the same kind and
character of the Collateral (as described in the Loan Documents)
acquired and owned by the Debtor in Possession on and/or
after the Petition Date, including, but not limited to, any
accounts and Cash Collateral, or the proceeds thereof.
A copy of the sixth interim cash collateral order is available at:
http://bankrupt.com/misc/conquestsantafe.doc103.pdf
About Conquest Santa Fe
Conquest Santa Fe, LLC, filed a Chapter 11 petition (Bankr. D.
Ariz. Case No. 12-24937) in Tucson, Arizona, Nov. 16, 2012,
estimating at least $10 million in assets and liabilities.
Judge Eileen W. Hollowell presides over the case. Lowell E.
Rothschild, Esq., Scott H. Gan, Esq., and Frederick J. Petersen,
Esq., at Mesch, Clark & Rothschild, P.C., in Tucson, Arizona,
serve as counsel to the Debtor.
The Debtor owns and operates the 92-room Hyatt Place Hotel on
Cerillos Road in Santa Fe, New Mexico, which opened for business
on May 25, 2010.
The Debtor filed its First Amended Chapter 11 Plan and Disclosure
Statement on May 20, 2013.
CROSBY WORLDWIDE: S&P Assigns B CCR & Rates $595MM Secured Debt B
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned U.S. lifting and
rigging applications provider Crosby Worldwide Ltd. a corporate
credit rating of 'B'. The outlook is stable.
At the same time, S&P assigned Crosby US Acquisition Corp.'s
$595 million first-lien senior secured credit facilities its 'B'
issue-level rating, with a recovery rating of '3', indicating its
expectation for meaningful (50%-70%) recovery in the event of a
payment default. The facilities consist of a $530 million first-
lien term loan and a $65 million revolver.
In addition, S&P assigned Crosby US Acquisition Corp.'s
$120 million second-lien term loan its 'CCC+' issue-level rating,
with a recovery rating of '6', indicating its expectation for
negligible (0%-10%) recovery in the event of a payment default.
The ratings on Crosby Worldwide Ltd. reflect S&P's view of the
company's "highly leveraged" financial risk profile and its "weak"
business risk profile. S&P's assessment of the financial risk
profile as highly leveraged reflects the company's pro forma
leverage of slightly more than 6x. The weak business risk profile
reflects the company's narrow scope of operations and competitive
and cyclical end markets. S&P assess the company's management and
governance as "fair." Crosby Worldwide Ltd. comprises the Crosby
Group and Acco Material Handling Solutions. The company
manufactures highly engineered equipment used in lifting, rigging,
and material handling applications, including shackles, blocks,
sheaves, hooks, swivels, hoists, and monorails. Crosby's end
markets include oil and gas, industrial, nonresidential
construction, infrastructure, and mining.
Crosby's brands are positioned as premium brands within the
lifting and rigging hardware market. S&P expects the company's
customers to continue to exhibit some brand loyalty and to remain
less price-sensitive due to the high cost of failure associated
with lifting and rigging accessory products, and because of the
training that the company provides directly to end users. The
company remains exposed to volatile raw material costs
(predominantly steel), which can pressure margins. S&P believes
Crosby will be able to pass on most raw material inflation to the
customer, although there could be a time lag between material and
price inflation. Still, S&P expects the company to sustain good
EBITDA margins in the mid-20% area.
CROWN HOLDINGS: Moody's Puts Ba1 CFR on Review for Downgrade
------------------------------------------------------------
Moody's Investors Service placed the Ba1 corporate family and
other instrument ratings of Crown Holdings, Inc. on review for
downgrade.
Ratings Rationale:
The review follows Crown's announcement that it had entered into
an agreement to acquire Mivisa Envases, SAU, a Spanish
manufacturer of two- and three-piece food cans and ends, from
certain investment funds managed by affiliates of The Blackstone
Group L.P., N+1 Mercapital and management, in a cash transaction
valued at EUR1.2 billion ($1.62 billion). The acquisition, which
is subject to review by the European Commission and other
competition authorities, is expected to close during 2014. Debt
financing has been fully committed in support of the transaction
from Citigroup Global Markets Inc.
Proforma for the transaction and excluding expected synergies of
approximately $34 million, Crown's debt to EBITDA is over 5.0
times. The company should generate proforma free cash flow of over
$500 million, but management has not yet decided if it will be
directed toward debt reduction. Moreover, projected benefits from
the ongoing restructuring will not bring the company's credit
metrics within the rating category without additional debt
reduction over the horizon.
Crown will issue $1.7 billion in new debt to fund the transaction.
The new debt is expected to be primarily secured, but the company
may ultimately issue a mix of secured and unsecured bonds.
Mivisa is based in Murcia, Spain and is the largest food can
producer in both the Iberian Peninsula and Morocco. The company
primarily serves the vegetable, fruit, fish, and meat segments.
Mivisa currently operates ten manufacturing facilities, including
six in Spain and one in Morocco. Sales and EBITDA for the audited
fiscal year ended June 30, 2013 were EUR555 million and EUR133
million respectively.
The extent of the potential downgrade of the corporate family
rating, if any, will likely be one notch. However, certain
instrument ratings could be downgraded one notch even if the
corporate family rating remains the same depending upon the final
capital structure. Moody's review will focus on the final capital
structure, potential additional synergies, the integration plan,
and the company's commitment to dedicating free cash flow to debt
reduction.
Moody's placed the following ratings on review for downgrade:
Crown Holdings, Inc.
-- Corporate family rating, Ba1
-- Probability of default rating, Ba1-PD
Crown Americas, LLC
-- $450 million US Revolving Credit Facility due 6/15/2015, Baa1
(LGD 1, 6%)
-- $550 million senior secured Term Loan A due 6/9/2016 ($221
million outstanding), Baa1 (LGD 1, 6%)
-- $700 million senior unsecured notes due 2/1/2021, Ba2 (LGD 4,
64%)
-- $1,000 million senior unsecured notes due 1/15/2023, Ba2 (LGD
4, 64%)
Crown Cork & Seal Company, Inc.
-- $63.5 million senior unsecured notes due 12/15/2096, Ba3 (LGD
6, 97%)
-- $350 million senior unsecured notes due 12/15/2026, Ba3 (LGD
6, 97%)
Crown European Holdings S.A.
-- $700 million European revolving credit facility due 6/15/2015,
Baa1 (LGD 1, 6%)
-- EUR274 million senior secured Term Loan A due 6/09/2016
(EUR110 million outstanding), Baa1 (LGD 1, 6%)
-- EUR500 million 7.125% senior unsecured notes due 8/15/2018,
Baa3 (LGD 2, 21%)
Crown Metal Packaging Canada L.P.
-- $50 million Canadian revolving credit facility due 6/15/2015,
Baa1 (LGD 1, 6%)
DEE ALLEN RANDALL: Trustee Wins Confirmation of Plan
----------------------------------------------------
Gil A. Miller, Chapter 11 trustee of the substantively
consolidated Chapter 11 estates of Dee Allen Randall, and other
affiliated debtors, has won confirmation of the Chapter 11 plan
for the Debtors despite opposition by Union Central Life Insurance
Company.
Judge Joel T. Marker confirmed the Chapter 11 Trustee's
Liquidating Plan of Reorganization dated Sept. 9, 2013, after
finding that all of the applicable requirements for confirmation
set forth in 11 U.S.C. Sec. 1129 and all other legal requirements
have been satisfied concerning the Plan.
Union Central conveyed objections to the Trustee's proposal to
create a post-confirmation "Personal Actions Trust", which will
(i) pursue claims against "facilitators" of the "Randall
Enterprise Ponzi Scheme," and (ii) will allow -- but will not
require -- victims to assign their causes of action to the trust.
The Trustee proposes to hire the Estate's lawyers to prosecute
these claims, under a contingent fee arrangement.
Union Central pointed out that the proposal provides for the
Estate's lawyers concurrently to represent both the Estate and a
single class of the Estate's creditors. Thus, according to Union
Central, the Plan should not be approved because it does not
comply with Section 327(a), 1104(d) and 101(14) of the Bankruptcy
Code.
The Trustee responded that because Sections 327(a) and 1104(d)
only deal with the retention and employment of trustees and
professionals for the estate, and because there will be no estate
if the Plan is confirmed, the Plan cannot possibly violate those
sections of the Bankruptcy Code.
The Trustee averred that his litigation strategy will provide
definite benefits to most, if not all, of the victims. As of
11:30 a.m. on October 24, 2013, the Trustee had received 352
ballots concerning the Plan, 350 of which were cast by Class 17
Victims and 2 of which were cast by Class 16(A) creditors. Of the
350 Class 17 Victim ballots, 346 voted in favor of the Plan, and
only four voted against it. Further, of the 346 Victim ballots
voting in favor of the Plan, only three expressly declined to
assign their Victim Causes of Action to the PAT. Ten additional
Victim ballots voted in favor of the Plan but failed to indicate
whether they would or would not assign their Victim Causes of
Action to the PAT.
A copy of the Plan Confirmation Order is available for free at:
http://bankrupt.com/misc/Dee_Allen_Plan_Order.pdf
About Dee Allen Randall
Dee Allen Randall in Kaysville, Utah, filed for Chapter 11
bankruptcy (Bankr. D. Utah Case No. 10-37546) on Dec. 20, 2010, to
forestall creditors while he reorganized his finances. His
companies include Horizon Mortgage & Investment, Horizon Financial
& Insurance Group and Horizon Auto Funding. Judge Joel T. Marker
presides over the bankruptcy case. In his petition, Mr. Randall
estimated $10 million to $50 million in assets and $1 million to
$10 million in debts.
Mr. Randall claims he was conducting a "legal Ponzi scheme," but
authorities are investigating him for possible violations of the
law in an operation that took in $65 million from 700 or so
investors.
Gil A. Miller was appointed as Chapter 11 trustee for Mr.
Randall's bankruptcy estate.
On Oct. 12, 2011, Mr. Miller placed Mr. Randall's corporate
entities -- Horizon Auto Funding, LLC, Independent Commercial
Lending LLC, Horizon Financial Center I LLC, Horizon Mortgage and
Investment Inc. and Horizon Financial & Insurance Group Inc. -- in
bankruptcy by filing separate Chapter 11 petitions (Bankr. D. Utah
Case Nos. 11-34826, 11-34830, 11-34831, 11-34833 and 11-34834).
Judge Joel T. Marker presides over the 2010 and 2011 cases.
Michael R. Johnson, Esq., Brent D. Wride, Esq., and David H.
Leigh, Esq., at Ray Quinney & Nebeker P.C., serve as counsel to
the Chapter 11 Trustee. The cases are substantively consolidated
under Case No. 10-37546. Reid Collins & Tsai LLP represents the
Chapter 11 Trustee as special litigation counsel. Fabian &
Clendenin represents the Chapter 11 Trustee as special counsel.
Union Central is represented by:
PARSONS BEHLE & LATIMER
J. Thomas Beckett, Esq.
201 South Main Street, Suite 1800
Salt Lake City, UT 84111
Telephone: 801-532-1234
Facsimile: 801-536-6111
E-mail: TBeckett@parsonsbehle.com
DETROIT, MI: Judge May Not Rule Soon on Constitution
----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Detroit's right under the Michigan and U.S.
constitutions to cut retirement benefits for municipal workers has
been a key question in the trial over the city's eligibility for
bankruptcy. Whether the judge actually rules on the constitutional
issues at this stage has yet to be decided.
According to the report, workers and their unions have argued that
state and federal law bar Detroit from using a Chapter 9 municipal
bankruptcy to override a provision in the Michigan state
constitution that they interpret as making their pensions
sacrosanct.
The U.S. Justice Department last month filed papers arguing that
constitutional questions on pensions aren't yet ripe for
consideration in bankruptcy court, the report related. The
official committee for retirees filed papers of its own last week
explaining why it thinks the judge must decide at the outset
whether pensions can be touched.
The Justice Department argued that the U.S. Constitution only
allows courts to rule when there is a "case or controversy." The
mere possibility of a dispute in the future isn't enough, the
government said.
The official retirees' committee countered that Detroit's
emergency financial manager, Kevyn Orr, "repeatedly asserted"
pension obligations must be cut along with other debt. The
committee interpreted Orr's testimony at trial on Oct. 28 as
meaning he intends to follow through.
The U.S. said that with mediation already under way, pensions may
wind up unmodified. Consequently, the dispute isn't yet
sufficiently concrete, in the government's opinion, for
constitutional rulings.
The government went another step, arguing that the official
committee isn't yet eligible to be heard in court on the question
because there's no debt-adjustment plan on file proposing to
reduce pensions.
U.S. Bankruptcy Judge Steven Rhodes still may need to decide at
least some constitutional issues right away because a union
contends that the present formulation of Chapter 9 violates the
federal Constitution.
It remains to be seen whether Judge Rhodes takes the next step and
rules on whether Detroit can modify pensions in the face of the
state constitution and whether an attempt to override the Michigan
constitution would violate the U.S. Constitution.
The trial on eligibility is scheduled to continue Nov. 4, with
more testimony from Orr. The workers and unions have said they
will call 15 witnesses to lay the factual groundwork for barring
Detroit from municipal bankruptcy.
Detroit began the country's largest-ever Chapter 9 municipal
bankruptcy in July with $18 billion in debt. That includes $5.85
billion in special revenue obligations, $6.4 billion in post-
employment benefits, $3.5 billion for under-funded 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.
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.
DRYSHIPS INC: Posts $63.9-Mil. Net Loss in Third Quarter
--------------------------------------------------------
DryShips Inc., an international provider of marine transportation
services for drybulk and petroleum cargoes, and through its
majority owned subsidiary, Ocean Rig UDW Inc., or Ocean Rig, of
offshore deepwater drilling services, on Nov. 4 announced its
unaudited financial and operating results for the third quarter
ended September 30, 2013.
Third Quarter 2013 Financial Highlights
-- For the third quarter of 2013, the Company reported a
net loss of $63.9 million, or $0.17 basic and diluted loss per
share.
Included in the third quarter 2013 results are:
- Non-cash write offs and breakage costs associated
with the full repayment of Ocean Rig's $800.0 million secured term
loan agreement and the two $495.0 million senior secured credit
facilities totaling $61.1million or $0.16 per share.
Excluding the above item, the Company's net results
would have amounted to a net loss of $27.6 million, or $0.07 per
share. (1)
-- The Company reported Adjusted EBITDA of $183.6 million
for the third quarter of 2013, as compared to $141.0 million for
the third quarter of 2012. (2)
Recent Highlights
-- On November 4, 2013, the Ocean Rig Mylos, commenced
drilling operations under the three year contract with Repsol
Sinopec Brazil S.A.
-- On October 30, 2013, the Company signed a Firm Summary
of Terms and Conditions with HSH Nordbank, as Agent, for an
amendment of certain terms under the Company's $628.8 million
Senior and Junior loan agreements dated March 31, 2006, as
amended. Under the terms of this agreement, the lending syndicate
led by HSH has agreed to apply the currently-pledged restricted
cash of $55 million against the next five quarterly installments.
In addition the lending syndicate has agreed to relax various
financial covenants up till the end of 2014. This agreement is
subject to definitive documentation which we expect to complete by
the end of November 2013.
-- The Company's subsidiary, Ocean Rig, achieved 98.4%
average fleet wide operating performance for the third quarter of
2013.
-- The deliveries of the new buildings Ocean Rig Skyros
and Ocean Rig Athena are rescheduled for January 2014 and February
2014 respectively, due to the late delivery of third party and
sub-supplier equipment.
-- On October 29, 2013, Ocean Rig agreed with a major oil
company to extend for 60 days the expiration of the previously
announced Letter of Award for the Company's ultra deepwater
drillship Ocean Rig Skyros.
-- On October 4, 2013, the Company entered into a sales
agreement with Evercore Group L.L.C., in connection with an at-
the-market offering for up to $200 million of the Company's common
shares. During October 2013, 5,891,234 common shares were issued
and sold at an average share price of $3.51 per share pursuant to
the at-the-market offering, resulting in net proceeds of $20.2
million, after deducting commissions.
George Economou, Chairman and Chief Executive Officer of the
Company, commented: "We are pleased to announce the recently-
signed agreement with the banking syndicate led by HSH. Earlier
this year, we accelerated our discussions with our lenders to
lower our upcoming debt service requirements and concluded an
agreement with a lender to, among other things, defer certain
principal installments until maturity. This new agreement allows
us to use $55 million of restricted cash on our balance sheet to
prepay scheduled principal installments, thereby reducing our
capital costs during 2014 by $55 million. Furthermore, this new
agreement has certain other beneficial clauses including the
relaxation of certain financial covenants. This transaction
highlights the high degree of trust shown in us by financial
institutions who I believe are now starting to recognize borrowers
that have navigated the market downturn.
"We are satisfied with the interim results of our at-the-market
equity offering, which was designed to be funded on an
opportunistic basis. Accordingly, we have sold approximately 5.9
million shares at an average price of $3.51 per share resulting in
net proceeds of approximately $20.2 million. Going forward we
intend to continue to fund this on an opportunistic basis.
"The drybulk market continues its recovery lately in the larger
asset classes and as a result, asset prices across the board are
rising. We are cautiously optimistic, expecting a sustainable
recovery in 2014 and beyond and believe DryShips is well
positioned to take advantage of the ensuing recovery in charter
rates in the drybulk and tanker sectors. As far as the offshore
drilling outlook is concerned, we are pleased with Ocean Rig's
solid results for the quarter. As the largest shareholder in
Ocean Rig, we believe it is optimally positioned in the ultra-
deepwater drilling market and we continue to be positive about the
prospects for Ocean Rig, whose contract backlog currently stands
at approximately $5.8 billion."
Financial Review: 2013 Third Quarter
The Company recorded a net loss of $63.9 million, or $0.17 basic
and diluted loss per share, for the three-month period ended
September 30, 2013 as compared to a net loss of $51.3 million, or
$0.13 basic and diluted loss per share, for the three-month period
ended September 30, 2012. Adjusted EBITDA was $183.6 million for
the third quarter of 2013, as compared to $141.0 million for the
same period in 2012.(3)
For the drybulk carrier segment, net voyage revenues (voyage
revenues minus voyage expenses) amounted to $37.4 million for the
three-month period ended September 30, 2013, as compared to $41.1
million for the three-month period ended September 30, 2012. For
the tanker segment, net voyage revenues amounted to $14.5 million
for the three-month period ended September 30, 2013, as compared
to $9.0 million for the same period in 2012. For the offshore
drilling segment, revenues from drilling contracts increased by
$42.8 million to $328.5 million for the three-month period ended
September 30, 2013, as compared to $285.7 million for the same
period in 2012.
Total vessels', drilling rigs' and drillships' operating expenses
and total depreciation and amortization decreased to $155.6
million and increased to $92.4 million, respectively, for the
three-month period ended September 30, 2013, from $181.1 million
and $84.6 million, respectively, for the three-month period ended
September 30, 2012. Total general and administrative expenses
increased to $54.1 million in the third quarter of 2013, from
$35.3 million during the comparative period in 2012.
Interest and finance costs, net of interest income, amounted to
$131.0 million for the three-month period ended September 30,
2013, compared to $51.9 million for the three-month period ended
September 30, 2012.
(1) The net result is adjusted for the minority interests of
40.56% not owned by Dryships Inc. common stockholders. (2)
Adjusted EBITDA is a non-GAAP measure; please see later in this
press release for reconciliation to net income. (3) Adjusted
EBITDA is a non-GAAP measure; please see later in this press
release for a reconciliation to net income.
About DryShips Inc.
Headquartered in Athens, Greece, DryShips Inc. (NASDAQ: DRYS) is
an owner of drybulk carriers and tankers that operate worldwide.
Through its majority owned subsidiary, Ocean Rig UDW Inc.,
DryShips owns and operates 10 offshore ultra deepwater drilling
units, comprising of 2 ultra deepwater semisubmersible drilling
rigs and 8 ultra deepwater drillships, 3 of which remain to be
delivered to Ocean Rig during 2013 and 1 is scheduled for
delivery during 2015. DryShips owns a fleet of 46 drybulk
carriers (including newbuildings), comprising of 12 Capesize, 28
Panamax, 2 Supramax and 4 Very Large Ore Carriers (VLOC) with a
combined deadweight tonnage of about 5.1 million tons, and 10
tankers, comprising 4 Suezmax and 6 Aframax, with a combined
deadweight tonnage of over 1.3 million tons.
The Company reported a net loss of US$288.6 million on
US$1.210 billion of revenues in 2012, compared with a net loss of
US$47.3 million on US$1.078 billion of revenues in 2011.
The Company's balance sheet at Dec. 31, 2012, showed
US$8.878 billion in total assets, US$5.010 billion in total
liabilities, and shareholders' equity of US$3.868 billion.
Going Concern Doubt
Ernst & Young (Hellas), in Athens, Greece, expressed substantial
doubt about DryShips Inc.'s ability to continue as a going
concern, citing the Company's working capital deficit of
US$670 million at Dec. 31, 2012, and in addition, the non-
compliance by the shipping segment with certain covenants of its
loan agreements with banks.
As of Dec. 31, 2012, the shipping segment was not in compliance
with certain loan-to-value ratios contained in certain of its
loan agreements. In addition, as of Dec. 31, 2012, the shipping
segment was in breach of certain financial covenants, mainly the
interest coverage ratio, contained in the Company's loan
agreements relating to US$769,098,000 of the Company's debt. As
a result of this non-compliance and of the cross default
provisions contained in all bank loan agreements of the shipping
segment and in accordance with guidance related to the
classification of obligations that are callable by the creditor,
the Company has classified all of its shipping segment's bank
loans in breach amounting to US$941,339,000 as current at
Dec. 31, 2012.
EDGMONT GOLF CLUB: Can Use Cash Collateral Until Dec. 8
-------------------------------------------------------
Judge Stephen Raslavich of the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania authorized Edgmont Golf Club,
Inc., and Edgmont Country Club to use cash collateral during the
period from the Petition Date through Dec. 8, 2013.
As adequate protection for any interest in cash collateral used by
the Debtors, PNC Bank N.A., is granted postpetition replacement
liens upon, and security interests in, the Debtors' postpetition
Cash Collateral to the extent that the Debtors diminished the Cash
Collateral.
A further hearing to consider whether the Debtors' use of cash
collateral can be extended beyond Dec. 8, 2013, will be held on
Dec. 4, 2013, at 1:30 p.m.
A full-text copy of the Interim Cash Collateral Order with budget
is available at http://bankrupt.com/misc/EDGMONTcashcolord1031.pdf
About Edgmont Golf Club
Edgmont Golf Club sought protection under Chapter 11 of the
Bankruptcy Code on Oct. 28, 2013 (Bankr. E.D.Pa. Case No. 13-
19358). The case is before Judge Stephen Raslavich.
Aris J. Karalis, Esq., and Robert W. Seitzer, Esq., at Maschmeyer
Karalis P.C., in Philadelphia, Pennsylvania, serve as counsel.
The Debtor disclosed estimated assets ranging from $10 million to
$50 million and liabilities ranging from $1 million to
$10 million. The petition was signed by Peter Mariani, chief
financial officer.
Affiliate Edgmont Country Club simultaneously sought Chapter 11
protection (Case No. 13-bk-19359).
EDISON MISSION: Chevron Asks Judge to Reconsider Ruling
-------------------------------------------------------
Patrick Fitzgerald, writing for Daily Bankruptcy Review, reported
that Chevron Corp. wants a bankruptcy judge to revisit his
decision allowing Edison Mission to keep its share of a natural-
gas joint venture involving the two companies now that Edison has
a deal to sell its assets to NRG Energy Inc. for $2.6 billion.
According to the report, in a filing on Oct. 30 in U.S. Bankruptcy
Court in Chicago, lawyers for the oil company asked Judge
Jacqueline P. Cox to re-open the case record before granting final
approval to Edison Mission's bid to legally "assume," or retain,
its stake in the lucrative natural-gas deal.
The sale to NRG "fundamentally alters" some of the key premises
underlying Edison Mission's bid to assume the contract and
"debunks" its argument that it didn't intend to transfer their
contract to a third party, the report related.
Chevron, which sued Edison Mission shortly after its bankruptcy
filing to remove its partner from the deal, also said a newly
discovered document establishes Edison Mission is the "parent" of
two subsidiaries involved in the Chevron partnership, the report
further related.
That distinction is key to Chevron's argument that Edison
Mission's filing for bankruptcy constituted a default under their
deal, the report said.
About Edison Mission
Santa Ana, California-based Edison Mission Energy is a holding
company whose subsidiaries and affiliates are engaged in the
business of developing, acquiring, owning or leasing, operating
and selling energy and capacity from independent power production
facilities. EME also engages in hedging and energy trading
activities in power markets through its subsidiary Edison Mission
Marketing & Trading, Inc.
EME was formed in 1986 and is an indirect subsidiary of Edison
International. Edison International also owns Southern California
Edison Company, one of the largest electric utilities in the
United States.
EME and its affiliates sought Chapter 11 protection (Bankr. N.D.
Ill. Lead Case No. 12-49219) on Dec. 17, 2012.
EME has reached an agreement with the holders of a majority of
EME's $3.7 billion of outstanding public indebtedness and its
parent company, Edison International EIX, that, pursuant to a plan
of reorganization and pending court approval, would transition
Edison International's equity interest to EME's creditors, retire
existing public debt and enhance EME's access to liquidity.
The Company's balance sheet at Sept. 30, 2012, showed
$8.17 billion in total assets, $6.68 billion in total liabilities
and $1.48 billion in total equity.
In its schedules, Edison Mission Energy disclosed total assets of
assets of $5,721,559,170 and total liabilities of $6,202,215,094
as of the Petition Date.
The Debtors other than Camino Energy Company are represented by
David R. Seligman, Esq., at Kirkland & Ellis LLP; and James H.M.
Sprayragen, Esq., at Kirkland & Ellis LLP. Counsel to Debtor
Camino Energy Company is David A. Agay, Esq., at McDonald Hopkins
LLC.
Perella Weinberg Partners is acting as the Debtors' financial
advisor and McKinsey & Company Recovery and Transformation
Services is acting as restructuring advisor. GCG, Inc., is the
claims and notice agent.
An official committee of unsecured creditors has been appointed in
the case and is represented by Ira S. Dizengoff, Esq., Stephen M.
Baldini, Esq., Arik Preis, Esq., and Robert J. Boller, Esq., at
Akin Gump Strauss Hauer & Feld LLP in New York; James Savin, Esq.,
and Kevin M. Eide, Esq., at Akin Gump Strauss Hauer & Feld LLP in
Washington, DC; and David M. Neff, Esq., and Brian Audette, Esq.,
at Perkins Coie LLP. The Committee also has tapped Blackstone
Advisory Partners as investment banker and FTI Consulting as
financial advisor.
EME said it doesn't plan to emerge from Chapter 11 until
December 2014 to receive benefits from a tax-sharing agreement
with parent Edison International Inc.
ENERGY FUTURE: Interest Payment Buys Time to Restructure
--------------------------------------------------------
Nick Brown and Bill Cheung, writing for Reuters, reported that
Energy Future Holdings made an interest payment of about
$270 million to subordinated bondholders on Nov. 1, setting the
stage for a few more months of restructuring talks that are likely
to come to a head early next year.
According to the report, the Texas power generator has been
negotiating for months with creditors to restructure its $40
billion in debt ahead of an expected bankruptcy filing.
Nov. 1 was expected to be a deadline in those talks, with senior
lenders hoping the company would skip the payment to subordinated
bondholders and file for Chapter 11 instead, the report related.
But the company made the payment on schedule, EFH spokesman Allan
Koenig said, two days after a source close to the matter told
Reuters the company was leaning toward paying it.
The company also said in a filing with the U.S. Securities &
Exchange Commission that talks with creditors have for the time
being broken off, the report further related.
Lawyers and financial advisers representing the creditors are
still engaged in negotiations with the company, and the company
expects talks with creditors to resume, saying in the filing it
would "continue to explore all available restructuring
alternatives," the report added.
About Energy Future Holdings, fka TXU Corp.
Energy Future Holdings Corp., formerly known as TXU Corp., is a
privately held diversified energy holding company with a portfolio
of competitive and regulated energy businesses in Texas. Oncor,
an 80 percent-owned entity within the EFH group, is the largest
regulated transmission and distribution utility in Texas.
The Company delivers electricity to roughly three million delivery
points in and around Dallas-Fort Worth. EFH Corp. was created in
October 2007 in a $45 billion leverage buyout of Texas power
company TXU in a deal led by private-equity companies Kohlberg
Kravis Roberts & Co. and TPG Inc.
Restructuring Talks With Creditors
In April 2013, Energy Future Holdings Corp., Energy Future
Competitive Holdings Company, Texas Competitive Electric Holdings
Company LLC, and Energy Future Intermediate Holding Company LLC
confirmed in a regulatory filing that they are in restructuring
talks with certain unaffiliated holders of first lien senior
secured claims concerning the Companies' capital structure.
The Companies expect to continue to explore all available
restructuring alternatives to facilitate the creation of
sustainable capital structures for the Companies and to otherwise
attempt to address the Creditors' concerns with the Restructuring
Proposal and Sponsor Proposal.
The Companies have retained Kirkland & Ellis LLP and Evercore
Partners to advise the Companies with respect to the potential
changes to the Companies' capital structure and to assist in the
evaluation and implementation of other potential restructuring
options.
The Creditors have retained Paul, Weiss, Rifkind, Wharton &
Garrison LLP and Millstein & Co., L.P. to advise the Creditors and
to assist in the Creditors' evaluation of potential restructuring
options involving the Companies.
According to a Wall Street Journal report, people familiar with
the matter said Apollo Global Management LLC, Oaktree Capital
Management, Centerbridge Partners and GSO Capital Partners, the
credit arm of buyout firm Blackstone Group LP, all hold large
chunks of Energy Future Holdings' senior debt. Many of these
firms belong to a group being advised by Jim Millstein, a
restructuring expert who helped the U.S. government revamp
American International Group Inc.
According to the Journal, people familiar with Apollo's thinking
said Apollo recently enlisted investment bank Moelis & Co. for
additional advice to ensure it gets as much attention as possible
on the case given its large debt holdings.
ENNIS COMMERCIAL: May Hire Terence Long as Manager
--------------------------------------------------
Ennis Commercial Properties, LLC, sought and obtained approval
from the U.S. Bankruptcy Court to employ Terence Long as manager
for the estate.
Porterville, California-based Ennis Commercial Properties, LLC's
business consists of acquiring raw land and building commercial
developments. The Company then either operates or sells the
commercial buildings comprising the commercial development.
ECP is owned by Ben Ennis, Brian Ennis and Pamela Ennis, in equal
shares. On Sept. 20, 2010, Pam Ennis and Brian Ennis transferred
all of their ownership interests in ECP to Ben Ennis. ECP filed
for Chapter 11 bankruptcy protection (Bankr. E.D. Calif. Case No.
10-12709) on March 16, 2010.
Peter L. Fear, Esq., and Gabriel J. Waddell, Esq., at the Law
Offices of Peter L. Fear, in Fresno, Calif., represent ECP as
counsel. No creditors committee has been formed in the case.
In its schedules, the Debtor disclosed $40,878,319 in assets and
$43,922,485 in liabilities.
Ben Ennis filed a voluntary petition under Chapter 11 (Bankr. E.D.
Calif. Case No. 10-62315) on Oct. 25, 2010.
On May 25, 2011, Terence Long was appointed as Chapter 11 Trustee
in the Benn Ennis bankruptcy. Consequently, the Chapter 11
Trustee stands in the shoes of Ben Ennis, and holds all of the
membership interests in ECP and controls it accordingly. Justin
D. Harris, Esq., at Motschiedler, Michaelides, Wishon, Brewer &
Ryan, LLP, in Fresno, represents the Chapter 11 Trustee as
counsel.
ESHNAM HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Eshnam Hospitality, Inc.
P.O. box 947
Cameron, TX 76520
Case No.: 13-12033
Chapter 11 Petition Date: November 3, 2013
Court: United States Bankruptcy Court
Western District of Texas (Austin)
Judge: Hon. Tony M. Davis
Debtor's Counsel: Eric A. Liepins, Esq.
12770 Coit Road, Suite 1100
Dallas, TX 75251
Tel: (972) 991-5591
Fax: 972-991-5788
Email: eric@ealpc.com
Total Assets: $6.02 million
Total Liabilities: $7.11 million
The petition was signed by Dr. Tariq Mahmood, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/txwb13-12033.pdf
EWGS INTERMEDIARY: Chapter 11 Petition Filed
--------------------------------------------
BankruptcyData reported that privately-held EWGS Intermediary and
Edwin Watts Golf Shops filed for Chapter 11 protection (Bankr. D.
Del. Lead Case No. 13-12876).
The Company, which operates as an integrated, multi-channel
retailer, offering brand name golf equipment, apparel and
accessories, is represented by Domenic E. Pacitti of Klehr
Harrison Harvey Branzburg.
According to documents filed with the Court, "The golf industry is
significantly correlated to weather and consumer spending. The
industry experienced particularly good weather in 2012, however,
the weather in 2013 has been significantly off, which has in turn
negatively impacted revenue. Consumer spending continues to
recover from the financial crisis, but remains lower than prior
periods. These factors have negatively impacted the golf industry
as a whole."
EWGS Intermediary further cites "increased competitor intrusion
into their market," "lackluster product launches" and "lower golf
participation as a whole."
The Company indicates total assets greater than $100 million on
its Chapter 11 petition.
FILTRATION GROUP: Moody's Assigns B2 CFR & Rates 1st Lien Debt B1
-----------------------------------------------------------------
Moody's Investors Service assigned a B2 Corporate Family Rating
(CFR) and a B2-PD Probability of Default Rating to Filtration
Group Corp. Moody's also assigned B1 ratings to the proposed first
lien revolving credit facility and term loan, and a Caa1 rating to
the proposed second lien term loan. Proceeds will be combined with
new equity to refinance outstanding Filtration Group debt and fund
the purchase of Porex Holdings. The rating outlook is stable.
Ratings:
Corporate Family: assigned B2
Probability of Default: assigned B2-PD
$75 million first lien revolving credit: assigned B1/LGD 3-33%
$565 million first lien term loan: assigned B1/LGD 3-33%
$235 million second lien term loan: assigned Caa1/LGD 5-83%
Rating outlook: Stable
Ratings Rationale:
The B2 CFR is driven by the Filtration Group's elevated initial
leverage (pro forma adjusted debt/EBITDA of approximately 6.5x),
modest scale (just over $700 million revenue), interest coverage
(1.9x EBITA to interest), and cash flow (about 9% funds from
operations to adjusted debt). Filtration has been very acquisitive
since 2010, completing or coming to terms on more than 10
acquisitions, leading to annual revenue rising from just over $100
million in 2010 to over $700 million for 2013 on a pro-forma
basis. Many of the recently acquired businesses generate higher
margins than the legacy businesses. The high margins of acquired
businesses and cost cutting measures should enable the company to
generate Moody's-adjusted EBITDA margins over 19%. Filtration's
brands command leading market positions in their niches, and the
company's products serve a wide range of industries and filtration
applications. The revenue base is well diversified with over 40%
of sales generated outside the US. Moody's observes demand for
filtration products has grown at a faster pace than overall GDP to
reflect environmental benefits and increased regulation in many
industries. The estimated 80% of total revenue driven by
replacement demand explains why unit demand declined less than for
most industries during the recent recession.
The stable outlook reflects the expectation for revenue to grow
modestly faster than GDP over the next 18 months, for free cash
flow to be applied to either reduce debt or for revenue bolstering
acquisitions, and for fairly stable operating margins.
Sustained leverage over 6.5x, free cash flow to debt below 5%, or
EBITDA margins in the low teens percent could lead to downward
rating activity. Leverage close to 4.0x and funds from operations
to debt over 15% could lead to upward rating activity.
Liquidity is good with the company's plan to have the $75 million
revolver undrawn upon closing, and Moody's expectation for the
company to generate consistent free cash flow (due to low capex
requirements). In addition there is ample headroom under the
revolver's covenant provisions. Debt amortization on the planned
term loan is modest while about $50 million of seller notes mature
by the end of 2015. If needed, additional cash and liquidity could
be generated through the sale or pledging of Filtration's large
non-US asset base. Approximately 40% of the company's revenue is
generated outside the US and these international assets are not
pledged to the bank group.
Chicago, IL-headquartered Filtration Group Corporation is a
rapidly expanding filtration company with manufacturing and
marketing operations in five continents (not South America).
Revenue, pro-forma for the acquisitions, is just over $700 million
for the twelve months ending September 2013. Filtration Group is
majority owned by funds affiliated with Madison Capital Partners,
as well as Madison employees and Filtration's management.
FINJAN HOLDINGS: Amends 21.5 Million Shares Resale Prospectus
-------------------------------------------------------------
Finjan Holdings, Inc., amended its registration statement on Form
S-1 relating to the resale or other disposition from time to time
by BCPI I, L.P., Israel Seed IV, L.P., HarbourVest International
Private Equity Partners IV Direct Fund L.P., et al., of up to
21,556,447 shares of the common stock, par value $0.0001 per
share, of Finjan Holdings. The Company will not receive any
proceeds from the sale of shares held by the selling stockholders.
The Company's common stock is quoted on the OTC Bulletin Board and
OTC Markets - OTCQB tier under the symbol "FNJN." The Company
effected a 1-for-12 reverse stock split of its common stock, and
the Company's common stock commenced trading on a post-split
basis, on Aug. 22, 2013. On Oct. 28, 2013, the last reported
closing bid price for the Company's common stock as reported on
the OTCQB tier of the OTC Markets was $5.15 per share.
A copy of the Form S-1/A is available for free at:
http://is.gd/fRjORJ
About Finjan
Finjan, formerly known as Converted Organics, is a leading online
security and technology company which owns a portfolio of patents,
related to software that proactively detects malicious code and
thereby protects end-users from identity and data theft, spyware,
malware, phishing, trojans and other online threats. Founded in
1997, Finjan is one of the first companies to develop and patent
technology and software that is capable of detecting previously
unknown and emerging threats on a real-time, behavior-based basis,
in contrast to signature-based methods of intercepting only known
threats to computers, which were previously standard in the online
security industry.
Converted Organics disclosed a net loss of $8.42 million in 2012,
as compared with a net loss of $17.98 million in 2011. The
Company's balance sheet at June 30, 2013, showed $31.84 million in
total assets, $1.16 million in total liabilities and $30.67
million total stockholders' equity.
Moody, Famiglietti & Andronico, LLP, in Tewksbury, Massachusetts,
issued a "going concern" qualification on the consolidated
financial statements for the year ended Dec. 31, 2012, citing
recurring losses and negative cash flows from operations and an
accumulated deficit that raises substantial doubt about the
Company's ability to continue as a going concern.
FIRST CONNECTICUT: Plan Filing Period Extended Until Nov. 13
------------------------------------------------------------
Upon the motion of First Connecticut Holding Group, LLC IV,
seeking a Bridge Order extending the exclusive period in which to
file and seek a confirmation of a Plan of Reorganization in its
Chapter 11 case until the Court's hearing on its Motion on short
notice seeking an order extending exclusivity, the U.S. Bankruptcy
Court for the District of New Jersey entered, Oct. 28, 2013, a
bridge order extending the Debtor's exclusive period to file and
obtain acceptances of a plan until Nov. 13, 2013, and Jan. 16,
2014, respectively.
Motion to Extend Exclusivity Until Jan. 31
On Oct. 25, 2013, the Debtor filed a motion to extend its
exclusive periods to file and obtain acceptances of a plan until
Jan. 31, 2014, and March 31, 2014, respectively.
According to the Debtor there remains at least one continuing
obstacle to both preparation and implementation of a confirmable
and Chapter 11 Plan of Reorganization. "That obstacle is the
doubt about ownership of FCHG IV and Liberty Harbor created by the
claims of James and Cynthia Licata, the bankruptcy trustees for
James Licata and his main operating company and four west coast
lenders who asserted a mortgage lien on all the real estate owned
by FCHG IV.
The Debtor explains:
"The Debtor believes it will be in a position within a reasonable
period of time to file a confirmable Chapter 11 Plan of
Reorganization. However, there remains at least one continuing
obstacle to both preparation and implementation of a Plan for the
Debtor. That obstacle is the doubt about ownership of FCHG IV and
Liberty Harbor created by the claims of James and Cynthia Licata,
the bankruptcy trustees for James Licata and his main operating
company and four west coast lenders who asserted a mortgage lien
on all the real estate owned by FCHG IV.
"The ownership dispute has been the subject of the State Court
Litigation, and other related litigation in the State Court, from
1999 until February 2013 when, following the FCHG IV Chapter 11
petition, it was removed to the District Court.
"The ability to restructure the loans on the Debtor's property
will comprise the "building blocks" of the Debtor's Plan of
Reorganization. Unfortunately, the ownership dispute in the State
Court Litigation will not be resolved before trial, scheduled to
commence Sept. 30, 2013. Therefore, additional time is necessary
for the Debtors to formulate and negotiate a Plan of
Reorganization.
"In the short period of time that the Debtors have been the
subject of these Chapter 11 proceedings, the Debtors have
accomplished a great deal. Several significant matters, including
a motion for use of cash collateral and fending off third-party
attempts to obstruct the Debtor's operations, have dominated the
Debtor's time and energy to date.
"The Debtors are current with Monthly Reports and all other
obligations which have accrued since the Chapter 11 filing, with
the exception of accrued professional fees.
"This Chapter 11 Case is only three months old.
"The only unresolved contingency is the Debtor's inability to
secure a title policy. However, the Debtor is exploring other
funding options that presumably would not be impeded by such
issues."
About First Connecticut Holding
First Connecticut Holding Group, L.L.C. IV filed a Chapter 11
petition (Bankr. D.N.J. Case No. 13-13090) on Feb. 15, 2013, in
Newark, New Jersey. Lorraine Mocco signed the petition as
managing member. The Debtor's scheduled assets were $12,287,218
and scheduled liabilities were $68,655,579. Judge Donald H.
Steckroth presides over the case.
FIRST DATA: Offering $1 Billion of Senior Subordinated Notes
------------------------------------------------------------
First Data Corporation disclosed that it intends to offer $500
million aggregate principal amount of senior subordinated notes
due 2021, subject to market conditions. Subsequently, on Oct. 30,
2013, the Company increased the offering size of the notes to an
aggregate principal amount of $1 billion. The notes will be issued
at par.
The Company intends to use the net proceeds from the offering of
the notes, together with cash on hand, to (i) redeem $1 billion
aggregate principal amount of its 11.25 Percent Senior
Subordinated Notes due 2016 and (ii) pay related fees and
expenses.
On Oct. 30, 2013, the Company exercised its right under the
indenture governing the 11.25 Percent Subordinated Notes to
optionally redeem $1 billion aggregate principal amount of its
11.25 Percent Subordinated Notes. The 11.25 Percent Subordinated
Notes are currently redeemable at a price of 100.000 percent of
the aggregate principal amount thereof plus accrued and unpaid
interest.
The Notes have not been registered under the Securities Act of
1933, as amended, and, unless so registered, may not be offered or
sold in the United States absent registration or an applicable
exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and other
applicable securities laws.
About First Data
Based in Atlanta, Georgia, First Data Corporation provides
commerce and payment solutions for financial institutions,
merchants, and other organizations worldwide.
The Company's balance sheet at Sept. 30, 2013, showed $36.84
billion in total assets, $34.97 billion in total liabilities,
$67.9 million in redeemable noncontrolling interest, and
$1.79 billion in total equity.
* * *
The Company's carries a 'B3' corporate family rating, with a
stable outlook, from Moody's Investors Service, a 'B' corporate
credit rating, with stable outlook, from Standard & Poor's, and
a 'B' long-term issuer default rating from Fitch Ratings.
FLORIDA GAMING: Has Court's Final Nod to Use Cash Collateral
------------------------------------------------------------
In a regulatory Form 8-K filing dated Oct. 29, 2013, Florida
Gaming Corporation discloses that on Oct. 23, 2013, the U.S.
Bankruptcy Court for the Southern District of Florida authorized
the Company and Florida Gaming Centers to use cash collateral on a
final basis.
Pursuant to that authorization, the Companies are permitted to
operate in the ordinary course of business during the pendency of
their Chapter 11 proceedings. The Debtors have also agreed to
commence an 11 U.S.C. Section 363 sale process that would
culminate in the sale of the Florida Gaming Centers assets in or
about March 2014. Additionally, the Companies agreed to the entry
of an order allowing the previously appointed state court
receiver, David Jonas, to continue to serve as an excused receiver
pursuant to Section 543(d) of the Bankruptcy Code.
About Florida Gaming
Florida Gaming Centers Inc. filed for Chapter 11 bankruptcy
(Bankr. S.D. Fla. Case No. 13-29597) in Miami on Aug. 19, 2013.
Florida Gaming Centers operates a casino and jai-alai frontons in
Miami. The Company disclosed debt of $138.3 million and assets of
$180 million in its petition.
Its parent, Florida Gaming Corp. (FGMG:US), and two other
affiliates also sought court protection.
Florida Gaming previously negotiated a sale of virtually all its
assets to casino operator Silvermark LLC for $115 million in cash
and $14 million in assumed liabilities. A provision in the
financing agreement required Florida Gaming to make an additional
payment to the lender -- ABC Funding -- if the assets are sold to
third party. Jefferies LLC was hired to determine that amount,
about $26.8 million, and valued the company at more than $180
million.
Luis Salazar, Esq., Esq., at Salazar Jackson in Miami, represents
Florida Gaming.
ABC Funding, LLC, as Administrative Agent for a consortium of
prepetition lenders, and the prepetition lenders are represented
by Dennis Twomey, Esq., and Andrew F. O'Neill, Esq., at SIDLEY
AUSTIN LLP, in Chicago, Illinois; and Drew M. Dillworth, Esq., and
Marissa D. Kelley, Esq., at STEARNS WEAVER MILLER WEISSLER
ALHADEFF & SITTERSON, P.A., in Miami, Florida. The Prepetition
Lenders are Summit Partners Subordinated Debt Fund IV-A, L.P.,
Summit Partners Subordinated Debt Fund IV-B, L.P., JPMorgan Chase
Bank, N.A., Locust Street Funding LLC, Canyon Value Realization
Fund, L.P., Canyon Value Realization Master Fund, L.P., Canyon
Distressed Opportunity Master Fund, L.P., and Canyon-GRF Master
Fund II, L.P.
FREESCALE SEMICONDUCTOR: Fitch Rates $960MM Sr. Sec. Notes 'CCC+'
-----------------------------------------------------------------
Fitch Ratings assigns a rating of 'CCC+/RR3' to Freescale
Semiconductor, Inc.'s private placement of $960 million 6% senior
secured notes due 2022. The ratings assume the final loan
documents will be substantially similar to the company's other
secured notes documents. The Rating Outlook is Stable.
Freescale privately placed $960 million of 6% senior secured notes
due 2022. The company will use net proceeds from the private
placement to redeem $884 million of all outstanding 9-1/4% senior
secured due 2018 and to pay the related redemption premium and
fees. The company also will pay for a portion of related expenses
with cash on hand.
The refinancing extends senior secured debt maturities to 2022
from 2018 and reduces interest expense to 6% from 9-1/4%.
Covenants related to the 6% senior secured notes are substantially
similar to Freescale's other existing senior secured debt.
The ratings and Outlook continue to reflect Freescale's weak free
cash flow (FCF) and tepid revenue growth. Cumulative FCF since
being taken private six years ago has been minimal after stripping
out non-recurring cash flows. FCF for 2013 will likely fall short
of Fitch's expectations of more than $100 million but be flat from
2012 levels (adjusted for proceeds from business interruption and
inventory insurance recoveries).
However, this senior secured notes refinancing transaction reduces
cash interest expense and, in conjunction with the expectation for
low single digit revenue growth and restructuring driven profit
margin expansion beyond the near term, should goose FCF
generation. Deferred intellectual property (IP) revenue from IP
licensing, which is part of Freescale's revenue growth
acceleration strategy, will add volatile and non-recurring cash
flows.
Macroeconomic concerns continue to weigh on revenue growth
prospects across the semiconductor industry and Freescale is no
exception. Seasonally strong consumer demand and continued growth
in industrial and networking markets drove revenue growth in the
recently ended third quarter. Nonetheless, long term demand within
Freescale's key embedded and automotive end markets remains
fundamentally sound.
Meanwhile, Fitch expects profitability to benefit from past
restructuring initiatives. Facility closures related to 2008-2009
restructuring initiatives will reduce costs by $120 million once
fully realized. The company's 2012 focus product group
reorganization will yield an additional $35 million to $40 million
of annual cost savings.
Fitch's estimated operating EBITDA margin increased to more than
22% for the third quarter, on track with Fitch's expectations.
Year-to-date (YTD) operating EBITDA is up 4.6% from the comparable
2012 period, versus 3.9% YTD revenue growth, driven by operating
leverage and lower costs from restructuring.
Credit protection measures should strengthen from lower interest
expense but remain cyclical. Pro forma for the senior secured
notes redemption, Fitch estimates total leverage (total debt to
operating EBITDA) for the LTM ended Sept. 30, 2013 was
approximately just under 8 times (x), flat from the comparable
year ago period. Interest coverage (operating EBITDA to gross
interest expense) was flat from the year ago period at
approximately 1.5x but should increase to just under 1.7x, pro
forma for the secured notes redemption.
Ratings Sensitivities:
Debt reduction from FCF resulting in total leverage approaching
5.5x could result in positive rating actions. This will require
continued positive revenue growth.
Conversely, negative rating actions could occur if Freescale uses
significant FCF over a multi-year period. Fitch believes this
would be the result of a weakened competitive position, due to
lost market share or product commoditization.
Key Rating Drivers:
The ratings are supported by Freescale's:
-- Leading share positions in microcontrollers and embedded
processing markets, particularly automotive. These markets are
characterized by longer product lifecycles;
-- Increasing electronics penetration in automobiles and
industrial and medical applications, as well as consumer
electronics growth and solid long-term networking
infrastructure investment requirements over the longer term;
-- Low capital intensity from the company's 'asset-light'
manufacturing strategy.
Ratings concerns center on Freescale's:
-- Revenue growth challenges, given a combination of difficulty
displacing incumbent embedded suppliers, macroeconomic
headwinds, and structurally lower revenues from the wind down
of the company's cellular business over the past several years;
-- Limited ability to organically reduce debt, given minimal FCF
in recent years;
-- Significant debt levels and interest expense.
Fitch believes Freescale's liquidity was sufficient as of Sept.
30, 2013 and consisted of: i) approximately $700 million of cash
and equivalents, $179 million of which was held in the U.S.; and
ii) approximately $400 million (net of $25 million of letters of
credit) of remaining availability under the $425 million senior
secured RCF due July 1, 2016.
Pro forma for the private placement and senior secured notes
redemptions, total debt was approximately $7.1 billion as of Sept.
30, 2013 and consisted of:
-- $348 million of senior secured term loans due 2016;
-- $2.4 billion of senior secured term loans due 2020;
-- $792 million of senior secured term loans due 2021;
-- $500 million of senior secured notes due 2021;
-- $960 million of senior secured notes due 2022;
-- $57 million of senior unsecured notes due 2014;
-- $1.2 billion of senior unsecured notes due 2020;
-- $264 million of senior subordinated notes due 2016.
With the full redemption of the senior secured notes due 2018,
Freescale eliminates the potential acceleration of the $2.4
billion term loan maturing in 2020 in September 2017.
The Recovery Ratings (RR) for Freescale reflect Fitch's recovery
expectations under a distressed scenario, as well as Fitch's
belief that Freescale's enterprise value, and hence recovery rates
for its creditors, will be maximized as a going concern rather
than liquidation scenario.
In deriving a distressed enterprise value, Fitch assumes post-
reorganization operating EBITDA of $714 million. Fitch applies a
5x distressed EBITDA multiple to reach a reorganization enterprise
value of approximately $3.6 billion.
As is standard with Fitch's recovery analysis, the revolver is
assumed to be fully drawn and cash balances fully depleted to
reflect a stress event. After reducing the amount available in
reorganization for administrative claims by 10%, Fitch estimates
the senior secured debt would recover 51% - 70%, equating to 'RR3'
Recovery Ratings.
The senior unsecured and senior subordinated debt tranches would
recover 0% - 10%, equating to 'RR6' Recovery Ratings and reflect
Fitch's belief that minimal if any value would be available for
unsecured noteholders.
Fitch assigns the following ratings:
'CCC+/RR3' to $940 million of 6% senior secured notes due 2022;
'CCC+/RR3' to $800 million senior secured term loan due 2021.
Fitch currently rates Freescale as follows:
-- Issuer Default Rating 'CCC';
-- Senior secured bank revolving credit facility (RCF)
'CCC+/RR3';
-- Senior secured term loans 'CCC+/RR3';
-- Senior secured notes 'CCC+/RR3';
-- Senior unsecured notes 'CC/RR6';
-- Senior subordinated notes 'CC/RR6'.
FREESEAS INC: Issues 4 Million Add'l Settlement Shares to Crede
---------------------------------------------------------------
FreeSeas Inc. issued and delivered to Crede 4,046,662 settlement
shares pursuant to the terms of the Exchange Agreement approved by
the Supreme Court of the State of New York on Oct. 9, 2013, in the
matter entitled Crede CG III, Ltd. v. FreeSeas Inc., Case No.
653328/2013.
The total number of shares of Common Stock to be issued to Crede
pursuant to the Exchange Agreement will equal the quotient of (i)
$11,850,000 divided by (ii) 78 percent of the volume weighted
average price of the Company's Common Stock, over the 75-
consecutive trading day period immediately following the first
trading day after the Court approved the Order, rounded up to the
nearest whole share. About 5,059,717 of the Settlement Shares
were issued and delivered to Crede on Oct. 10, 2013, and an
aggregate of 18,420,862 Settlement Shares were issued and
delivered to Crede between Oct. 11, 2013, and Oct. 23, 2013.
A copy of the Form 6-K is available for free at:
http://is.gd/S5XgKp
Annual Meeting on November 14
The 2013 Annual Meeting of Shareholders of FreeSeas will be held
on Nov. 14, 2013, at the principal executive offices of FreeSeas
Inc. at 10, Eleftheriou Venizelou Street (Panepistimiou Ave.) 106
71, Athens, Greece, at 17:00 Greek time/10:00 am Eastern Standard
Time. The purposes of the Annual Meeting are:
1. To elect 2 directors of the Company to serve until the 2016
Annual Meeting of Shareholders;
2. To consider and vote upon a proposal to ratify the
appointment of RBSM LLP, as the Company's independent
registered public accounting firm for the fiscal year ending
Dec. 31, 2013;
3. To grant discretionary authority to the Company's board of
directors to (A) amend the Amended and Restated Articles of
Incorporation of the Company to effect one or more
consolidations of the issued and outstanding shares of
common stock, pursuant to which the shares of common stock
would be combined and reclassified into one share of common
stock at a ratio within the range from 1-for-2 up to 1-for-5
and (B) determine whether to arrange for the disposition of
fractional interests by shareholder entitled thereto, to pay
in cash the fair value of fractions of a share of common
stock as of the time when those entitled to receive those
fractions are determined, or to entitle shareholder to
receive from the Company's transfer agent, in lieu of any
fractional share, the number of shares of common stock
rounded up to the next whole number, provided that, (X) that
the Company will not effect Reverse Stock Splits that, in
the aggregate, exceeds 1-for-10, and (Y) any Reverse Stock
Split is completed no later than the first anniversary of
the date of the Annual Meeting; and
4. To transact such other business as may properly come before
the Annual Meeting and any adjournments or postponements
thereof.
The Company's Board of Directors has fixed the close of business
on Oct. 18, 2013, as the record date for determining those
shareholders entitled to notice of, and to vote at, the Annual
Meeting.
About FreeSeas Inc.
Headquartered in Athens, Greece, FreeSeas Inc., formerly known as
Adventure Holdings S.A., was incorporated in the Marshall Islands
on April 23, 2004, for the purpose of being the ultimate holding
company of ship-owning companies. The management of FreeSeas'
vessels is performed by Free Bulkers S.A., a Marshall Islands
company that is controlled by Ion G. Varouxakis, the Company's
Chairman, President and CEO, and one of the Company's principal
shareholders.
The Company's fleet consists of six Handysize vessels and one
Handymax vessel that carry a variety of drybulk commodities,
including iron ore, grain and coal, which are referred to as
"major bulks," as well as bauxite, phosphate, fertilizers, steel
products, cement, sugar and rice, or "minor bulks." As of
Oct. 12, 2012, the aggregate dwt of the Company's operational
fleet is approximately 197,200 dwt and the average age of its
fleet is 15 years.
Freeseas disclosed a net loss of US$30.88 million in 2012, a net
loss of US$88.19 million in 2011, and a net loss of US$21.82
million in 2010. The Company's balance sheet at Dec. 31, 2012,
showed US$114.35 million in total assets, $106.55 million in
total liabilities and US$7.80 million in total shareholders'
equity.
RBSM LLP, in New York, 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
incurred recurring operating losses and has a working capital
deficiency. In addition, the Company has failed to meet
scheduled payment obligations under its loan facilities and has
not complied with certain covenants included in its loan
agreements. It has also failed to make required payments to
Deutsche Bank Nederland as agreed to in its Sept. 7, 2012,
amended and restated facility agreement and received notices of
default from First Business Bank. Furthermore, the vast majority
of the Company's assets are considered to be highly illiquid and
if the Company were forced to liquidate, the amount realized by
the Company could be substantially lower that the carrying value
of these assets. These conditions, among others, raise
substantial doubt about the Company's ability to continue as a
going concern.
FRIENDFINDER NETWORKS: Second Amended Plan Filed
------------------------------------------------
BankruptcyData reported that FriendFinder Networks filed with the
U.S. Bankruptcy Court a Second Amended Joint Plan of
Reorganization and related Disclosure Statement.
According to the Disclosure Statement, "The Debtors engaged in
extensive negotiations with the Consenting First Lien Noteholders,
the Consenting Second Lien Noteholders, and the Holders of the
Cash Pay Second Lien Notes regarding the terms of the Plan. The
Plan provides for the recapitalization of the Company by
exchanging Allowed First Lien Noteholder Claims and Allowed First
Lien Guaranty Claims for a combination of New First Lien Notes and
Cash and exchanging Allowed Second Lien Noteholder Claims and
Allowed Second Lien Guaranty Claims for 100% of the New Common
Stock of FFN and in certain circumstances, an additional Cash
Distribution. The Plan provides that Allowed Administrative
Claims, Allowed Priority Tax Claims, Allowed Priority Claims and
Other Secured Claims shall be paid in full or otherwise
unimpaired. The Plan further provides that Allowed General
Unsecured Claims shall receive payment in full in Cash on the
Effective Date, or as soon as is reasonably practicable, or to the
extent applicable, have their Claims reinstated by the Reorganized
Debtors and paid in the ordinary course of business. The Plan
further provides that Intercompany Claims and Interests shall
either be (i) reinstated, in full or in part, and treated in the
ordinary course of business or (ii) cancelled and discharged. To
the extent an Intercompany Claim and/or Intercompany Interest is
cancelled or discharged, Holders of Intercompany Claims and
Intercompany Interests shall not receive or retain any property on
account of such claims and interests. The Plan does not provide
for any recovery to Securities Litigation Claims or to Existing
FFN Equity Interests, as such, both are deemed to reject the
Plan."
The Court scheduled a December 16, 2013 hearing to consider the
Plan.
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.
FURNITURE BRANDS: Can Employ KPMG as Auditors and Tax Consultants
-----------------------------------------------------------------
Furniture Brands International, Inc. and its debtor-affiliates
sought and obtained permission from the U.S. Bankruptcy Court for
the District of Delaware to employ KPMG LLP as auditors and tax
consultants, nunc pro tunc to Sept. 9, 2013.
The Debtors require KPMG to provide:
A. Audit Related Services:
(a) performing an audit of the Debtors' consolidated
financial statements as of Dec. 28, 2013, and Dec. 29,
2012, the related consolidated statements of
operations, shareholders' equity, comprehensive loss
and cash flows for each of the years in the three-year
period ended Dec. 28, 2013, and the related notes to
financial statements in accordance with the standards
of the Public Company Accounting Oversight Board
(United States);
(b) issuing a written report on the Debtors' consolidated
financial statements;
(c) if applicable, reviewing the condensed consolidated
balance sheets of the Debtors and the related condensed
consolidated statements of operations, shareholders'
equity, comprehensive income (loss), and cash flows for
the quarterly and year-to-date periods then ended,
which are to be included in the quarterly reports
proposed to be filed FBN under the Securities Exchange
Act of 1934;
(d) if applicable, reviewing the selected quarterly
financial data specified by item 302 of Regulation S-K,
which is required to be included in the annual report
proposed to be filed by FBN under the Securities
Exchange Act of 1934;
(e) if applicable, performing procedures as required by the
standards of the PCAOB, including, but not limited to,
reading information incorporated by reference in the
registration statements and performing subsequent event
procedures;
(f) if applicable, performing services in connection with a
comfort letter, if requested by the Debtors;
(g) reporting to the Debtors' audit committee KPMG's
findings prior to the issuance of KPMG's audit report
as defined in more detail within the audit engagement
letter; and
(h) determining that the Debtors' audit committee has been
informed of:
* the initial selection of, or the reasons for any
change in, significant accounting policies of their
application during the period under audit,
* the methods used by management to account for
significant unusual transactions,
* the effect of significant accounting policies in
controversial or emerging areas for which there is a
lack of authoritative guidance or consensus, and
* KPMG's communication to management of all internal
control deficiencies identified during the audit and
not previously communicated in writing by KPMG.
B. Tax Consulting Related Services:
(a) performing an ownership change analysis from
Jan. 1, 2013 through the date the Debtors emerge from
bankruptcy in connection with Section 382 of the
Internal Revenue Code of 1986, as amended. This
Section 382 ownership change analysis will be a roll
forward of the analysis previously completed through
Dec. 31, 2012;
(b) performing an analysis of the Debtors' Section 382
issues arising in connection with the Chapter 11 cases;
(c) performing an analysis of "NUBIG/NUBIL" tax matters and
Notice 2003-65 as applied to the Chapter 11 cases;
(d) performing an analysis of the availability and benefits
of Section 382 (1)(5) of the IRC;
(e) determining the tax impact of the Debtors' asset
dispositions including computations of any gain/loss
realized;
(f) performing an analysis of tax implications of
bankruptcy restructuring alternatives including the
impact of the bankruptcy restructuring on the Debtors'
tax attributes;
(g) performing a calculation of any discharge of
indebtedness income realized;
(h) performing a computation of the Debtors' basis in the
stock of its subsidiaries and assets, as necessary and
as requested by the Debtors; and
(i) performing a determination with respect to the
deductibility of expenses incurred in connection with
the Debtors' debt restructuring.
In addition, KPMG will provide other consulting, advice, research,
planning, and analysis regarding audit and tax consulting as may
be necessary, desirable or requested from time to time.
KPMG will be paid at these discounted hourly rates:
Audit Services
--------------
Partners $375-$500
Senior Managers $300-$450
Managers $250-$350
Senior Associates $210-$275
Associates $115
Tax Consulting Services
-----------------------
Partners $660
Managing Directors $600
Senior Managers $585
Managers $510
Senior Associates $375
Associates $240
KPMG will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Kenneth G. Grapperhaus, partner of KPMG, 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.
About Furniture Brands
Furniture Brands International (NYSE:FBN) --
http://www.furniturebrands.com-- engages in the designing,
manufacturing, sourcing and retailing home furnishings. Furniture
Brands markets products through a wide range of channels,
including company owned Thomasville retail stores and through
interior designers, multi-line/ independent retailers and mass
merchant stores. Furniture Brands serves its customers through
some of the best known and most respected brands in the furniture
industry, including Thomasville, Broyhill, Lane, Drexel Heritage,
Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and
LaBarge.
On Sept. 9, 2013, Furniture Brands International, Inc. and 18
affiliated companies sought Chapter 11 protection (Bankr. D. Del.
Lead Case No. 13-12329).
Attorneys at Paul Hastings LLP and Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Debtors. Alvarez and Marsal
North America, LLC, is the restructuring advisors. Miller
Buckfire & Co., LLC is the investment Banker. Epiq Systems Inc.
dba Epiq Bankruptcy Solutions is the claims and notice agent.
Furniture Brands' balance sheet at June 29, 2013, showed $546.73
million in total assets against $550.13 million in total
liabilities.
The company has an official creditor's committee with seven
members. The creditors' panel includes the Pension Benefit
Guaranty Corp., Milberg Factors Inc. and five suppliers.
FURNITURE BRANDS: May Hire PwC as Accounting and Tax Advisors
-------------------------------------------------------------
Furniture Brands International, Inc. and its debtor-affiliates
sought and obtained permission from the U.S. Bankruptcy Court for
the District of Delaware to employ PricewaterhouseCoopers LLP as
independent accounting and tax advisor, nunc pro tunc to Sept. 9,
2013.
Under the terms and conditions set forth in the statement of work
between Furniture Brand and PwC (the "Interco SoW"), the services
to be performed under Interco SoW include, but are not limited to:
-- providing analyses and advice relating to intercompany
contracts and pricing policies for entities involved in
certain intercompany transactions; and
-- preparing transfer pricing analysis reports for intercompany
transactions concerning:
(a) Furniture Brand (U.S. Report);
(b) P.T. Maitland-Smith Indonesia (Indonesia Report);
(c) Maitland-Smith Cebu, Inc., and Maitland-Smith Regional
Operating Headquarters (Cebu Report); and
(d) Furniture Brands (Hangzhou) Ltd. (China Report).
The services to be performed under the Income Tax SoW include, but
are not limited to:
-- preparing the Debtors' U.S. Corporate Income Tax Return,
Form 1120, for the fiscal years ending Dec. 29, 2012,
Dec. 28, 2013 and Jan. 3, 2015; and
-- preparing state and local corporate income tax returns and
franchise tax returns for the same periods described above.
The services to be performed under the Accounting SoW include, but
are not limited to, preparing the Debtors' financial statement tax
provisions and related balance sheet accounts for the periods
ending Mar. 31, 2013, June 30, 2013, Sept. 30, 2013 and Dec. 28,
2013.
The Debtors agreed to pay PwC under the following Fee and Expense
Structure:
Services Provided Estimated Fees
----------------- --------------
Interco SoW $70,000 fixed fee
Accounting SoW $62,500 fixed fee
Income Tax SoW $98,500 fixed fee
PwC has previously completed its work with respect to the China
Report. Accordingly, the $70,000 is a fixed fee under the Interco
SoW for work solely relating to completing the U.S. Report, the
Indonesia Report and the Cebu Report.
The total fixed fee under the Accounting SoW is $125,000. The
Debtors have already paid half this amount for services rendered
pre-petition. PwC solely seeks compensation for preparing the
Debtors' financial statement tax provisions and related balance
sheet accounts for the periods ending Sept. 30, 2013 and Dec. 28,
2013, in the amount of $62,500.
The total fixed fee under the Income Tax SoW is $175,000 per year.
The Debtors have already paid $77,000 of the fixed fee prepetition
for the tax compliance services associated with the Dec. 31, 2012
tax return. Accordingly, PwC solely seeks compensation for the
completion of the 2012 tax compliance services, in the amount of
$98,000. Given the anticipated length of the Debtors' cases, PwC
also may seek $175,000 for work performed for each subsequent tax
year.
The PwC professionals providing the services in the Statement of
Work will consult with internal PwC bankruptcy retention and
billing advisors (PwC Retention Advisors), whose services will
include, but not limited to:
-- assistance with preparation of the bankruptcy retention
documents;
-- assistance with the disinterestedness disclosures; and
-- preparation of interim and final fee applications.
Due to the specialized nature of these services, and consistency
between bankruptcy venues, specific billing rates have been
established for this PwC Retention Advisors. The PwC Retention
Advisors will be paid at these hourly rates:
Partner $795
Director $550
Manager $400
Senior Associate $290
Associate $225
Paraprofessional $150
PwC will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Brian Sprick, partner of PwC, 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.
About Furniture Brands
Furniture Brands International (NYSE:FBN) --
http://www.furniturebrands.com-- engages in the designing,
manufacturing, sourcing and retailing home furnishings. Furniture
Brands markets products through a wide range of channels,
including company owned Thomasville retail stores and through
interior designers, multi-line/ independent retailers and mass
merchant stores. Furniture Brands serves its customers through
some of the best known and most respected brands in the furniture
industry, including Thomasville, Broyhill, Lane, Drexel Heritage,
Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and
LaBarge.
On Sept. 9, 2013, Furniture Brands International, Inc. and 18
affiliated companies sought Chapter 11 protection (Bankr. D. Del.
Lead Case No. 13-12329).
Attorneys at Paul Hastings LLP and Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Debtors. Alvarez and Marsal
North America, LLC, is the restructuring advisors. Miller
Buckfire & Co., LLC is the investment Banker. Epiq Systems Inc.
dba Epiq Bankruptcy Solutions is the claims and notice agent.
Furniture Brands' balance sheet at June 29, 2013, showed $546.73
million in total assets against $550.13 million in total
liabilities.
The company has an official creditor's committee with seven
members. The creditors' panel includes the Pension Benefit
Guaranty Corp., Milberg Factors Inc. and five suppliers.
GRAND CENTREVILLE: Can Employ Tavenner & Beran as Counsel
---------------------------------------------------------
Grand Centreville LLC sought and obtained court authority to hire
Tavenner & Beran, PLC, as counsel to represent the Debtor in all
aspects of its Chapter 11 case.
As counsel, Tavern & Beran is anticipated to render these legal
services:
-- advise the Debtor of its rights, power and duties as debtor-
in-possession continuing to operate under Chapter 11;
-- prepare on behalf of the Debtor all necessary applications,
motions and other documents, and review all financial and
other reports to be filed in the Chapter 11 case;
-- advise the Debtor with respect to financing agreements, debt
and cash collateral orders and related transactions;
-- advise the Debtor on its ability to initiate actions to
collect and recover property for the benefit of its estate;
-- counsel the Debtor in connection with the formulation and
negotiation of a plan of reorganization and related
documents;
-- assist in reviewing and resolving claims asserted against the
Debtor's estate; and
-- provide general corporate, litigation and other non-
bankruptcy services for the Debtor.
Tavenner & Beran professionals expected to provide services to the
Debtor are:
Lynn L. Tavenner, partner $385/hour
Paula S. Beran, partner $375/hour
David L. Leadbeater, paralegal $105/hour
The Debtor believes Tavenner & Beran is a "disinterested person,"
as defined under Section 101(14) of the Bankruptcy Code.
About Grand Centreville
Grand Centreville, LLC, filed a Chapter 11 petition (Bankr. E.D.
Va. Case No. 13-13590) on Aug. 2, 2013. The petition was signed
by Michael L. Schuett, principal of Black Creek Consulting Ltd.,
the receiver. Judge Robert G. Mayer presides over the case.
Paula S. Beran, Esq., and Lynn L. Tavenner, Esq., at Tavenner &
Beran, PLC, in Richmond, Va., represents the Debtor as counsel.
In its schedules, the Debtor disclosed $40,550,045.74 in assets
and $26,247,602.00 in liabilities as of the petition date.
GRAND CENTREVILLE: Mendelson & Mendelson Okayed as Accountant
-------------------------------------------------------------
Grand Centreville, LLC sought and obtained authority from the U.S.
Bankruptcy Court for the Eastern District of Virginia to employ
Mendelson & Mendelson CPA P.C. as accountant in its Chapter 11
case.
The Debtor, through Black Creek Consulting, Ltd., a receiver
appointed by the Court in an order dated June 3, 2013, is
continuing in possession of the Debtor's properties and is
operating and managing its business, as a Debtor-in-Possession,
pursuant to Sections 1107 and 1108 of the Bankruptcy Code.
Mendelson has served as the Receiver's accountant since its
appointment.
Mendelson's professionals will be paid for its services on an
hourly basis in accordance with their ordinary and customary
hourly rates. The name, position, and hourly rates of the
Petition Date, of the professional currently expected to have
primary responsibility for providing services to the Debtor is:
Louis B. Ruebelmann $325.00 Certified Public Accountant
Certified in Financial
Forensics
The firm will also be reimbursed for actual and necessary out-of-
pocket expenses.
Mr. Ruebelmann, a Principal of Mendelson, assures the Court
that his firm is a "disinterested person," as that term is defined
in Section 101(14) of the Bankruptcy Code and as required by
Section 327(a) and/or Section 327 (e) of the Bankruptcy Code.
About Grand Centreville
Grand Centreville, LLC, filed a Chapter 11 petition (Bankr. E.D.
Va. Case No. 13-13590) on Aug. 2, 2013. The petition was signed
by Michael L. Schuett, principal of Black Creek Consulting Ltd.,
the receiver. Judge Robert G. Mayer presides over the case.
Paula S. Beran, Esq., and Lynn L. Tavenner, Esq., at Tavenner &
Beran, PLC, in Richmond, Va., represents the Debtor as counsel.
In its schedules, the Debtor disclosed $40,550,045.74 in assets
and $26,247,602.00 in liabilities as of the petition date.
GRAND CENTREVILLE: Can Employ Walther as Special Counsel
--------------------------------------------------------
Grand Centreville, LLC sought and obtained authority from the U.S.
Bankruptcy Court for the Eastern District of Virginia to employ
Lizabeth Lee Walther, Esq., as special counsel in its Chapter 11
case.
The Debtor, through Black Creek Consulting, Ltd., a receiver
appointed by the Court in an order dated June 3, 2013, is
continuing in possession of its properties and is operating and
managing its business, as a Debtor-in-Possession, pursuant to
Sections 1107 and 1108 of the Bankruptcy Code.
Since June 17, 2013, Ms. Walther has served as counsel to the
Receiver assisting with general corporate, litigation and
landlord-tenant matters. The Receiver anticipates Ms. Walther
will continue to render legal services for the benefit of the
Debtor as needed throughout the course of the Chapter 11 case
similar to the services rendered before the Petition Date to the
Receiver, as well as additional services related to Debtor's
lender relationship.
Ms. Walther will be paid based on her hourly rate and reimbursed
for her actual and necessary out-of-pocket expenses. Her hourly
rate as of the Petition Date is $320.
The Debtor assures the Court that Ms. Walther is a "disinterested
person," as that term is defined in Section 101(14) of the
Bankruptcy Code and as required by Section 327(a) and/or Section
327(e) of the Bankruptcy Code.
About Grand Centreville
Grand Centreville, LLC, filed a Chapter 11 petition (Bankr. E.D.
Va. Case No. 13-13590) on Aug. 2, 2013. The petition was signed
by Michael L. Schuett, principal of Black Creek Consulting Ltd.,
the receiver. Judge Robert G. Mayer presides over the case.
Paula S. Beran, Esq., and Lynn L. Tavenner, Esq., at Tavenner &
Beran, PLC, in Richmond, Va., represents the Debtor as counsel.
In its schedules, the Debtor disclosed $40,550,045.74 in assets
and $26,247,602.00 in liabilities as of the petition date.
GREEN FIELD ENERGY: S&P Cuts & Withdraws Secured Debt Rtng to 'D'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its ratings on
U.S.-based oilfield services company Green Field Energy Services
Inc.'s senior secured debt to 'D' from 'CC', indicating a default
on the company's $250 million senior notes. Following the
downgrade, S&P withdrew all its ratings on Green Field at the
company's request.
The downgrade follows Green Field's Oct. 28 announcement that it
has filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy
Code. The company continues to review possible financial
solutions to address its liquidity needs. S&P lowered the
corporate credit rating on the company to 'D' on Sept. 4, 2013,
following the company's failure to make payments on its credit
facility with Shell Western Exploration and Production Inc.
(Shell).
"We expect the company's senior secured debt to receive 30% to 50%
recovery -- at the low end of the range--at emergence, which is
consistent with our '4' recovery rating. Our analysis assumes that
the liens on the senior secured notes would be treated as
subordinated to the liens supporting Shell's credit facility,"
said Standard & Poor's credit analyst Paul Harvey.
The note holders could benefit from incremental value if the Shell
credit facility claims are not treated as senior to the claims on
the notes in bankruptcy. S&P's analysis also reflects a debtor in
possession (DIP) facility, with up to $15 million in priority
claims at emergence. Higher DIP claims could adversely affect
recovery prospects.
GREEN FIELD ENERGY: Has Interim Authority to Obtain $15MM DIP Loan
------------------------------------------------------------------
Judge Kevin Gross of the U.S. Bankruptcy Court for the District of
Delaware gave Green Field Energy Services, Inc. et al., interim
authority to borrow money up to an aggregate face amount of
$15,000,000 from BG Credit Partners LLC and ICON Capital LLC.
The final hearing to consider approval of the Debtors' request to
tap $30,000,000 in postpetition financing scheduled for Nov. 26,
2013, at 10:00 a.m. Objections are due no later than Nov. 18.
A full-text copy of the Interim DIP Order is available for free at
http://bankrupt.com/misc/GREENFIELDdipord1029.pdf
About Green Field Energy
Green Field is an independent oilfield services company that
provides a wide range of services to oil and natural gas drilling
and production companies to help develop and enhance the
production of hydrocarbons. The Company's services include
hydraulic fracturing, cementing, coiled tubing, pressure pumping,
acidizing and other pumping services.
Green Field Energy and two affiliates filed Chapter 11 petitions
in Delaware on Oct. 27, 2013, after defaulting on an $80 million
credit provided by an affiliate of Royal Dutch Shell Plc (Case No.
13-bk-12783, Bankr. D. Del.).
The Debtors are represented by Michael R. Nestor, Esq., and Kara
Hammon Coyle, Esq., at Young Conaway Stargatt & Taylor, LLP, in
Wilmington, Delaware; and Josef S. Athanas, Esq., Caroline A.
Reckler, Esq., Sarah E. Barr, Esq., and Matthew L. Warren, Esq.,
at Latham & Watkins LLP, in Chicago, Illinois.
The Debtors' investment banker is Carl Marks Advisory Group LLC.
Thomas E. Hill, from Alvarez & Marsal North America, LLC, serves
as the Debtors' chief restructuring officer.
BG Credit Partners LLC and ICON Capital LLC are providing $30
million in DIP Loans to the Debtors. The DIP Lenders are
represented by David B. Kurzweil, Esq. -- kurzweild@gtlaw.com --
at Greenberg Traurig LLP, in Atlanta, Georgia.
GREEN FIELD ENERGY: Hires Prime Clerk as Claims & Noticing Agent
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Green Field Energy Services, Inc., et al., to appoint Prime Clerk
LLC as claims and noticing agent.
About Green Field Energy
Green Field is an independent oilfield services company that
provides a wide range of services to oil and natural gas drilling
and production companies to help develop and enhance the
production of hydrocarbons. The Company's services include
hydraulic fracturing, cementing, coiled tubing, pressure pumping,
acidizing and other pumping services.
Green Field Energy and two affiliates filed Chapter 11 petitions
in Delaware on Oct. 27, 2013, after defaulting on an $80 million
credit provided by an affiliate of Royal Dutch Shell Plc (Case No.
13-bk-12783, Bankr. D. Del.).
The Debtors are represented by Michael R. Nestor, Esq., and Kara
Hammon Coyle, Esq., at Young Conaway Stargatt & Taylor, LLP, in
Wilmington, Delaware; and Josef S. Athanas, Esq., Caroline A.
Reckler, Esq., Sarah E. Barr, Esq., and Matthew L. Warren, Esq.,
at Latham & Watkins LLP, in Chicago, Illinois.
The Debtors' investment banker is Carl Marks Advisory Group LLC.
Thomas E. Hill, from Alvarez & Marsal North America, LLC, serves
as the Debtors' chief restructuring officer.
BG Credit Partners LLC and ICON Capital LLC are providing $30
million in DIP Loans to the Debtors. The DIP Lenders are
represented by David B. Kurzweil, Esq., at Greenberg Traurig LLP,
in Atlanta, Georgia.
GREEN FIELD ENERGY: Has Interim Authority to Pay Critical Vendors
-----------------------------------------------------------------
Green Field Energy Services, Inc., et al., sought and obtained
interim authority from the U.S. Bankruptcy Court for the District
of Delaware to pay prepetition fixed, liquidated and undisputed
claims of critical suppliers of goods and services, with whom the
Debtors continue to do business and whose goods and services are
essential to the Debtors' operations.
The final hearing to consider approval of the motion will be held
on Nov. 26, 2013, at 10:00 a.m.
About Green Field Energy
Green Field is an independent oilfield services company that
provides a wide range of services to oil and natural gas drilling
and production companies to help develop and enhance the
production of hydrocarbons. The Company's services include
hydraulic fracturing, cementing, coiled tubing, pressure pumping,
acidizing and other pumping services.
Green Field Energy and two affiliates filed Chapter 11 petitions
in Delaware on Oct. 27, 2013, after defaulting on an $80 million
credit provided by an affiliate of Royal Dutch Shell Plc (Case No.
13-bk-12783, Bankr. D. Del.).
The Debtors are represented by Michael R. Nestor, Esq., and Kara
Hammon Coyle, Esq., at Young Conaway Stargatt & Taylor, LLP, in
Wilmington, Delaware; and Josef S. Athanas, Esq., Caroline A.
Reckler, Esq., Sarah E. Barr, Esq., and Matthew L. Warren, Esq.,
at Latham & Watkins LLP, in Chicago, Illinois.
The Debtors' investment banker is Carl Marks Advisory Group LLC.
Thomas E. Hill, from Alvarez & Marsal North America, LLC, serves
as the Debtors' chief restructuring officer.
BG Credit Partners LLC and ICON Capital LLC are providing $30
million in DIP Loans to the Debtors. The DIP Lenders are
represented by David B. Kurzweil, Esq., at Greenberg Traurig LLP,
in Atlanta, Georgia.
GREEN FIELD ENERGY: Section 341(a) Meeting Set on December 5
------------------------------------------------------------
A meeting of creditors in the bankruptcy case of Green Field
Energy Services, Inc., will be held on Dec. 5, 2013, at 10:30 am,
at J. Caleb Boggs Federal Building, 844 King Street, Wilmington,
DE, 19801, 5th Floor, Room 5209.
This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
meeting of creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
About Green Field Energy
Green Field is an independent oilfield services company that
provides a wide range of services to oil and natural gas drilling
and production companies to help develop and enhance the
production of hydrocarbons. The Company's services include
hydraulic fracturing, cementing, coiled tubing, pressure pumping,
acidizing and other pumping services.
Green Field Energy and two affiliates filed Chapter 11 petitions
in Delaware on Oct. 27, 2013, after defaulting on an $80 million
credit provided by an affiliate of Royal Dutch Shell Plc (Case No.
13-bk-12783, Bankr. D. Del.).
The Debtors are represented by Michael R. Nestor, Esq., and Kara
Hammon Coyle, Esq., at Young Conaway Stargatt & Taylor, LLP, in
Wilmington, Delaware; and Josef S. Athanas, Esq., Caroline A.
Reckler, Esq., Sarah E. Barr, Esq., and Matthew L. Warren, Esq.,
at Latham & Watkins LLP, in Chicago, Illinois.
The Debtors' investment banker is Carl Marks Advisory Group LLC.
Thomas E. Hill, from Alvarez & Marsal North America, LLC, serves
as the Debtors' chief restructuring officer.
GREEN INNOVATIONS: Has $2.28-Mil. Net Loss in Sept. 30 Quarter
--------------------------------------------------------------
Green Innovations Ltd. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting a net loss
of $2.28 million on $748,238 of revenues for the three months
ended Sept. 30, 2013, compared to a net loss of $73,334 for the
same period last year.
The Company's balance sheet at Sept. 30, 2013, showed $4.1 million
in total assets, $1.36 million in total liabilities, and
stockholders' equity of $1.18 million.
A copy of the Form 10-Q is available at:
http://is.gd/Jb4J3S
About Green Innvations
Cape Coral, Fla.-based Green Innovations Ltd. (OTC QB: GNIN) (OTC
BB: GNIN) was formed to develop an Internet social website that
catered to wine lovers. In August 2012, with the acquisition of
Green Hygienics, Inc., the Company changed its operations to the
business of importing and distributing bamboo-based hygienic
products. The prior operations of the Company have been abandoned
effective with the acquisition of Green Hygienics.
INSTITUTO MEDICO: Wilma Vasquez Hospital Owner in Chapter 11
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the owner of the Wilma N. Vasquez hospital and
nursing home filed a petition for Chapter 11 protection.
According to the report, the hospital, located in Vega Baja,
Puerto Rico, has 130 beds. The nursing home has 20.
Court papers were inconsistent about the amount of claims and
debt, the report related. One showed assets of $20.8 million and
debt totaling $19.2 million, including $10.7 million in secured
claims.
Instituto Medico del Norte, Inc., aka Centro Medico Wilma N.
Vazquez, aka Hospital Wilma N. Vazquez Skill Nursing Facility of
Centro Medico Wilma N. Vazquez, sought protection under Chapter 11
of the Bankruptcy Code on Oct. 30, 2013 (Case No. 13-08961, Bankr.
D.P.R.). The case is assigned to Judge Mildred Caban Flores.
The Debtor is represented by Fausto David Godreau Zayas, Esq. --
dgodreau@LBRGlaw.com -- and Rafael A Gonzalez Valiente, Esq. --
rgonzalez@lbrglaw.com -- at LATIMER BIAGGI RACHID & GODREAU, in
San Juan, Puerto Rico.
IRISH BANK: Nov. 6 Hearing on Recognition of Foreign Proceeding
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware will
convene a hearing on Nov. 6, 2013, at 10:00 a.m., to consider
Irish Bank Resolution Corporation's verified petition under
Chapter 15 for Recognition of a foreign proceeding.
As reported in the Troubled Company Reporter on Oct. 18, 2013,
Kieran Wallace and Eamon Richardson, a foreign representatives or
special liquidators, sought recognition of the foreign proceeding
pursuant to Sections 105(a) and 1519 of the Bankruptcy Code.
About Irish Bank Resolution
Irish Bank Resolution Corp., the liquidation vehicle for what was
once one of Ireland's largest banks, filed a Chapter 15 petition
(Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect
U.S. assets of the former Anglo Irish Bank Corp. from being
seized by creditors. Irish Bank Resolution sought assistance
from the U.S. court in liquidating Anglo Irish Bank Corp. and
Irish Nationwide Building Society. The two banks failed and were
merged into IBRC in July 2011. IBRC is tasked with winding them
down and liquidating their assets. In February, when Irish
lawmakers adopted the Irish Bank Resolution Corp., IBRC was
placed into a special liquidation in the Irish High Court to
complete liquidation and distribution of the two banks' assets.
IBRC's principal asset as of June 2012 was a loan portfolio
valued at some EUR25 billion (US$33.5 billion). About 70 percent
of the loans were to Irish borrowers. Some 5 percent of the
portfolio was under U.S. law, according to a court filing. Total
liabilities in June 2012 were about EUR50 billion, according
to a court filing.
Most assets in the U.S. have been sold already. IBRC is involved
in lawsuits in the U.S.
The IRBC liquidators want the U.S. bankruptcy judge to rule that
Ireland is home to the so-called foreign main bankruptcy
proceeding. If the judge agrees and determines that IBRC
otherwise qualifies, creditor actions in the U.S. will halt
automatically.
JAGUAR FINANCIAL: Reviews TSX Listing Compliance Requirements
-------------------------------------------------------------
Jaguar Financial Corporation on Nov. 4 disclosed that, as a result
of the Company's market value of listed securities being less than
$3.0 million for 30 consecutive trading days, the TSX has provided
notice to the Company that it is reviewing the Company's
compliance with the minimum listing requirements of the TSX. The
Company has been granted 120 days to comply with all of the TSX
requirements for continued listing. If the Company cannot
demonstrate that it meets all TSX requirements set out in Part VII
of The Toronto Stock Exchange Company Manual on or before
February 25, 2014, the Company's securities will be delisted 30
days from such date.
If unable to maintain its listing on the TSX, JFC will look to
list its securities on another Canadian based stock exchange.
About Jaguar Financial Corporation
Jaguar is a Canadian merchant bank that generally invests in
undervalued, overlooked and underappreciated public companies
where Jaguar determines that one or more changes could be made to
create shareholder value.
JEFFERSON COUNTY, AL: Judge Delays Confirmation Hearing to Nov. 20
------------------------------------------------------------------
Katy Stech, writing for Daily Bankruptcy Review, reported that a
federal judge pushed back what could be the final major hearing
for Jefferson County, Ala.'s, bankruptcy case after county leaders
squeezed another $300 million in breaks from sewer bondholders,
salvaging the deal that's meant to get the county out of Chapter 9
by the end of the year.
According to the report, with his court order signed Oct. 31,
Judge Thomas Bennett rescheduled the county's confirmation hearing
for Nov. 20, giving county leaders more time to finalize a fresh
debt repayment deal that gave them even bigger breaks on the $3.1
billion the county borrowed to fix its aging sewer system. The
hearing is meant to give Judge Bennett a chance to look over
voting results on the plan, which have mostly approved of it, and
give critics an opportunity to raise last-minute objections.
The hearing's eight-day delay also allows Wall Street bankers more
time to market about $1.7 billion in municipal bond debt, which
the county has promised to repay over decades after emerging from
the second-largest municipal bankruptcy in U.S. history, the
report said. County officials and others are looking for buyers
for those bonds.
County leaders negotiated more cuts from sewer bond holders like
J.P. Morgan Chase & Co., hedge funds, bond insurers and other
groups after county leaders said that a settlement from spring
would no longer work in the weaker municipal bond market, the
report further related.
Municipal bond interest rates have risen significantly since the
earlier deal was announced in June, the report said. The broader
bond market began selling off in May amid worries that the Federal
Reserve could start to cut back on its bond-buying program. The
move in the $3.7 trillion municipal market was exacerbated over
the summer, after Detroit filed its record bankruptcy and worries
surfaced about Puerto Rico's finances.
About Jefferson County
Jefferson County has its seat in Birmingham, Alabama. It has a
population of 660,000.
Jefferson County filed a bankruptcy petition under Chapter 9
(Bankr. N.D. Ala. Case No. 11-05736) on Nov. 9, 2011, after an
agreement among elected officials and investors to refinance
$3.1 billion in sewer bonds fell apart.
John S. Young Jr. LLC was appointed as receiver by Alabama Circuit
Court Judge Albert Johnson in September 2010.
Jefferson County's bankruptcy represents the largest municipal
debt adjustment of all time. The county said that long-term debt
is $4.23 billion, including about $3.1 billion in defaulted sewer
bonds where the debt holders can look only to the sewer system for
payment.
The county said it would use the bankruptcy court to put a value
on the sewer system, in the process fixing the amount bondholders
should be paid through Chapter 9.
Judge Thomas B. Bennett presides over the Chapter 9 case. Lawyers
at Bradley Arant Boult Cummings LLP and Klee, Tuchin, Bogdanoff &
Stern LLP, led by Kenneth Klee, represent the Debtor as counsel.
Kurtzman Carson Consultants LLC serves as claims and noticing
agent. Jefferson estimated more than $1 billion in assets. The
petition was signed by David Carrington, president.
The bankruptcy judge in January 2012 ruled that the state court-
appointed receiver for the sewer system largely lost control as a
result of the bankruptcy. Before deciding whether Jefferson County
is eligible for Chapter 9, the bankruptcy judge will allow the
Alabama Supreme Court to decide whether sewer warrants are the
equivalent of "funding or refunding bonds" required under state
law before a municipality can be in bankruptcy.
U.S. District Judge Thomas B. Bennett ruled in March 2012 that
Jefferson County is eligible under state law to pursue a debt
restructuring under Chapter 9. Holders of more than $3 billion in
defaulted sewer debt had challenged the county's right to be in
Chapter 9.
In June 2013, the county reached settlement with holders of
78 percent of the $3.1 billion in sewer debt at the core of the
county's financial problems. The bondholders will be paid
$1.84 billion through a refinancing, according to a term sheet.
The settlement calls for JPMorgan Chase & Co., the owner of
$1.22 billion in bonds, to make the largest concessions so other
bondholder will recover more.
On June 30, 2013, Jefferson County filed a Chapter 9 plan of debt
adjustment. Pursuant to the Plan, sewer bondholders will receive
65 percent in cash. If they elect to waive claims against
JPMorgan and bond insurers, they receive 80 percent in cash.
Bondholders supporting the plan already agreed to waive claims and
receive the larger recovery. Existing sewer bonds will be
canceled in exchange for payments under the plan. The county will
fund plan distributions by selling new sewer bonds calculated to
generate $1.96 billion to cover the $1.84 billion earmarked for
existing sewer bondholders. JPMorgan has agreed to waive $842
million of the sewer debt and a $657 million swap debt, resulting
in an 88 percent overall write off by JPMorgan. To finance the
new sewer bonds, there will be 7.4 percent in rate increases for
sewer customers in each of the first four years. In later years,
rate increases will be 3.5 percent.
LAGUNA BRISAS: Proposes to Auction Best Western Hotel
-----------------------------------------------------
Laguna Brisas, LLC, doing business as Best Western Laguna Brisas
Spa Hotel, asks the U.S. Bankruptcy Court for the Central District
of California to approve the bidding procedures to govern the sale
of its real property assets located at 1600 S. Coast Highway in
Laguna Beach, California.
The hotel is wholly owned by its two managing members, Dae In
"Andy" Kim and his wife Jane Kim.
According to the Debtor, the sale is part of a global settlement
with the creditors with liens against its hotel.
To provide certainty to all potential purchasers, the Debtor has
formulated sales procedures with input from CBRE, Inc. and the
secured parties, especially CWCapital Asset Management LLC, solely
in its capacity as special servicer.
The Court will convene a hearing on Nov. 8, 2013, at 11 a.m., on
the Debtor's sale motion.
A copy of the sale motion is available for free at
http://bankrupt.com/misc/LAGUNABRISAS_sale.pdf
About Laguna Brisas
Laguna Beach, California-based Laguna Brisas LLC, doing business
as Best Western Laguna Brisas Spa Hotel, is owned by A&J Mutual,
LLC, which is owned and operated by Dae In "Andy" Kim and his wife
Jane. The Company owns a Best Western Plus Hotel and Spa in
Laguna Beach, California.
The Company filed for Chapter 11 protection (Bankr. C.D. Cal.
Case No. 12-12599) on Feb. 29, 2012. Bankruptcy Judge Mark S.
Wallace presides over the case.
The Debtor filed the Chapter 11 petition to stop foreclosure sale
of the first priority trust deed holder, Wells Fargo Bank. The
hotel has been in possession of and operated by a receiver, Bryon
Chapman of Rim Hospitality, since Oct. 3, 2011.
Johnny Kim, Esq. -- no relation to the Debtor's insider, "Andy"
Kim -- represents the Debtor as special counsel.
The Debtor disclosed $15,097,815 in assets and $13,982,664 in
liabilities. The petition was signed by Dae In "Andy" Kim,
managing member.
The Debtor has filed a Plan to be funded from income the Debtor
receives from the operation of the Hotel. The management of the
Debtor will continue to be Andy Kim, as it was prior to the
appointment of the Receiver. By the effective date of the Plan,
the Receiver will turn over the Debtor's assets to the Debtor.
The Debtor, through the management company, Matrix Hospital Group
LLC, will act as the disbursing agent for the purpose of making
the distributions provided for under the Plan.
Creditor Wells Fargo Bank, N.A., is represented by Hamid R.
Rafatjoo, Esq., at Venable LLP, as counsel.
LEVEL 3: Incurs $21 Million Net Loss in Third Quarter
-----------------------------------------------------
Level 3 Communications, Inc., reported a net loss of $21 million
on $1.56 billion of revenue for the three months ended Sept. 30,
2013, as compared with a net loss of $166 million on $1.59 billion
of revenue for the same period during the prior year.
The Company's balance sheet at Sept. 30, 2013, showed $12.85
billion in total assets, $11.70 billion in total liabilities and
$1.14 billion in total stockholders' equity.
As of Sept. 30, 2013, the company had cash and cash equivalents of
approximately $507 million.
"We had another solid quarter, with continued growth in enterprise
Core Network Services revenue," said Jeff Storey, president and
CEO of Level 3. "Our secure and reliable solutions are helping
our customers manage the complexities of their IT environments.
These customer-focused solutions are driving demand for our
services and we see the continued opportunity to grow market
share."
A copy of the press release is available for free at:
http://is.gd/p9Pz8h
About Level 3 Communications
Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc., is a publicly traded international communications company
with one of the world's largest communications and Internet
backbones.
* * *
In October 2012, Fitch Ratings affirmed the 'B' Issuer Default
Ratings (IDRs) assigned to Level 3. LVLT's ratings recognize, in
part, the de-leveraging of the company's balance sheet resulting
from its acquisition of Global Crossing Limited (GLBC).
As reported by the TCR on June 5, 2013, Standard & Poor's Ratings
Services raised its corporate credit rating on Broomfield, Colo.-
based global telecommunications provider Level 3 Communications
Inc. to 'B' from 'B-'. "The upgrade reflects improved debt
leverage, initially from the acquisition of the lower-leveraged
Global Crossing in October 2011, and subsequently from realization
of the bulk of what the company expects to eventually be $300
million of annual operating synergies," said Standard & Poor's
credit analyst Richard Siderman.
LEVI STRAUSS: S&P Raises CCR to 'BB-' on Improved Profitability
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on San Francisco-based Levi Strauss & Co. to 'BB-' from
'B+'. The outlook is stable.
S&P also raised its rating on all of the company's senior
unsecured debt to 'BB-' from 'B+'. The recovery ratings remain
unchanged at '4', indicating S&P's expectation for average (30% to
50%) recovery for noteholders in the event of a payment default.
"The one notch upgrade reflects our view that Levi's could sustain
its improved profitability and credit metrics," said Standard &
Poor's credit analyst Linda Phelps.
Standard & Poor's estimates that Levi Strauss' EBITDA margins have
improved, largely a result of lower year-over-year cotton costs in
the first half of 2013 and elimination of the drag from the
Denizen brand in Asia. Also, credit metrics for the 12 months
ended Aug. 25, 2013, have improved with meaningful growth in
EBITDA and lower debt levels.
LIC CROWN: Court Sets Nov. 25 as Claims Bar Date
------------------------------------------------
The deadline to file proofs of debt in the bankruptcy case of
LIC Crown Mezz Borrower LLC et al. is set for Nov. 25 2013.
LIC Crown Mezz Borrower LLC and its two affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Case No.
13-13304, Bankr. S.D.N.Y.) on Oct. 10, 2013. The Debtors' Chief
Restructuring Officer is Steven A. Carlson.
LIGHTSQUARED INC: Sues GPS Makers, Industry Over Spectrum Issues
----------------------------------------------------------------
Joseph Checkler, writing for Daily Bankruptcy Review, reported
that LightSquared Inc. on Nov. 1 filed a lawsuit against Global
Positioning System makers and industry groups, saying their
failure to disclose that LightSquared's network could cause GPS
problems drove the company into bankruptcy.
According to the report, in a complaint filed with U.S. Bankruptcy
Court in Manhattan, LightSquared said Deere & Co., Garmin
International Inc. and Trimble Navigation Ltd., as well as two GPS
industry groups, caused "untold damage" to the company after it
spent billions of dollars to build up its network.
"The Defendants engaged in a calculated effort to block the
deployment of a new wireless broadband network that would serve
millions of underserved consumers at lower prices while increasing
competition and innovation in the wireless industry," LightSquared
said in the filing, the report related. The company wants a jury
trial in U.S. Bankruptcy Court.
Representatives from Deere, Garmin and Trimble didn't immediately
respond to requests for comment, the report said. A spokesman for
the two industry groups named in the complaint, the U.S. GPS
Industry Council and the Coalition to Save Our GPS, didn't
immediately respond to a request for comment.
Philip Falcone's Harbinger Capital Partners, which owns
LightSquared, in August filed a suit against the same parties, in
U.S. District Court in Manhattan, seeking $1.9 billion in damages,
the report recalled. In the suit, Harbinger said it worked for
years to resolve any potential GPS conflicts for devices using its
spectrum, but the device makers and GPS groups hid that their
devices were also using the LightSquared network. They all denied
wrongdoing or did not respond to requests for comment on the
Harbinger suit.
About LightSquared Inc.
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, to resolve regulatory issues that have prevented it
from building its coast-to-coast integrated satellite 4G wireless
network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties.
Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to
the Debtors. Alvarez & Marsal North America, LLC, is the
financial advisor. Kurtzman Carson Consultants LLC serves as
claims and notice agent.
LIGHTSQUARED INC: Sues GPS Makers, Industry Groups Over GPS Issues
------------------------------------------------------------------
LightSquared Inc. sued Deere & Company and two other
manufacturers, saying their failure to disclose that its network
could cause global positioning system problems pushed the company
into bankruptcy.
LightSquared said the GPS makers, which also include Garmin
International Inc. and Trimble Navigation Ltd., led the company to
believe its network would not interfere with their GPS receivers
once its "out-of-band-emissions" problems are solved.
According to the company, it has invested billions of dollars in
its wireless network for over 10 years, believing that any
problems related to GPS had actually been resolved, and that the
GPS operations would not delay approval by the Federal
Communications Commission of its network.
The manufacturers' broken promises "prevented the timely launch of
a nationwide wireless broadband network, caused LightSquared to
lose investments and contracts worth billions of dollars, and
deprived the public of much needed broadband spectrum," the
company said in a 65-page complaint filed on Nov. 1 with the U.S.
Bankruptcy Court in Manhattan.
LightSquared said the case is about how the three GPS makers
"waited until those billions were invested in the necessary
network infrastructure before then breaking their prior promises,"
causing "untold damage" to the wireless spectrum company.
The complaint, which also names the U.S. GPS Industry Council and
the Coalition to Save Our GPS as defendants, alleges breach of
contract, negligent misrepresentation and other claims.
The case is LightSquared Inc., LightSquared LP and LightSquared
Subsidiary LLC vs. Deere & Company, Garmin International Inc.,
Trimble Navigation Limited, The U.S. GPS Industry Council, and
The Coalition to Save Our GPS, U.S. Bankruptcy Court, Southern
District of New York, Case No. 13-01670.
About LightSquared Inc.
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, to resolve regulatory issues that have prevented it
from building its coast-to-coast integrated satellite 4G wireless
network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties.
Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to
the Debtors. Alvarez & Marsal North America, LLC, is the
financial advisor. Kurtzman Carson Consultants LLC serves as
claims and notice agent.
MACCO PROPERTIES: NV Brooks Objects to Case Dismissal Bid
---------------------------------------------------------
Debtor NV Brooks Apartments, LLC, by and through Michael E. Deeba,
Trustee of Macco Properties, Inc., owner/member/manager of Debtor,
objects to the Motion for Voluntary Dismissal of Jointly
Administered Bankruptcy Cases, filed by Lew S. McGinnis and
Jennifer Price on September 26, 2013.
On September 10, 2013, the United States Trustee filed a Motion to
Convert the Macco Properties, Inc. bankruptcy case and the NV
Brooks Apartments LLC bankruptcy case to cases under Chapter 7 of
the Bankruptcy Code.
The Trustee of Macco Properties said it would be in the best
interests of creditors and the bankruptcy estates to allow these
cases to be converted to Chapter 7, and thus provide for the
orderly and continuing liquidation of the remaining assets, which
include a bad faith insurance action in the NV Brooks Apartments,
LLC case, and the distribution of estate funds in these bankruptcy
cases as provided for under the U.S. Bankruptcy Code. Currently
there are not sufficient assets in the NV Brooks Apartments, LLC
case to pay off creditors of that estate in full.
The Trustee of Macco Properties is currently preparing to commence
litigation against First Specialty Insurance Corporation for
failure to pay damage claims of the estate. If this action is
successful, it should result in sufficient funds to pay the
creditors of NV Brooks Apartments, LLC in full.
Additionally, Macco Properties, Inc. has been sued by First
Specialty Insurance Corporation in the County of New York, State
of New York. Macco Properties, Inc. is in the process of
responding to this lawsuit. Additionally, Macco Properties, Inc.
and NV Brooks Apartments, LLC, intend to pursue an action against
First Specialty Insurance Corporation for the violation of the
automatic stay in these bankruptcy cases.
NV Brooks Apartments, LLC requests that the Court (1) deny the
motion to dismiss filed by McGinnis and Price, (2) permit these
cases to be converted to Chapter 7 as requested in the motion of
the UST, and (3) award such other and further relief as is just
and equitable.
The Official Unsecured Creditors' Committee also objects to the
dismissal of this case, which would put prior management back in
control, under any set of facts or circumstances. The parties
have witnessed what happens when Ms. Price and Mr. McGinnis are in
control of Macco Properties, Inc. or this and other bankruptcy
estates. The Committee supports the conversion of this case to
one under Chapter 7 as in the best interest of the creditors and
to allow a partial distribution to unsecured creditors. Any
proposal or plan by the Movants to condition dismissal on payment
of the unsecured creditors would be fraught with the repeated
delays experienced with the Movants in every stage of this case,
including the global transaction, every closing and the disclosure
statement for a plan of reorganization. In this case, there only
remain unsecured creditors and administrative professional claims.
The funds on hand appear sufficient to fully pay all unsecured and
administrative creditors in full, with an excess remaining to
return to the equity holder.
The Committee asserts that a conversion to Chapter 7 is in the
best interests of creditors primarily to allow a partial
distribution to be made to the unsecured creditors promptly
following conversion.
The Committee requests the Court to enter an Order denying the
Motion to Dismiss and converting the case to one under Chapter 7,
and either (1) direct the Chapter 7 Trustee to, promptly following
conversion and appointment, seek Court approval under 11 U.S.C.
Sec. 726 to make a partial distribution of 90% to unsecured
creditors; or (2) continue the existence of the Committee during
the Chapter 7 until such time as a partial distribution of 90% has
been made to unsecured creditors, and for such other and further
relief as the Court deems just and equitable.
Attorney for Debtor NV Brooks can be reached at:
Kevin M. Coffey, Esq.
HARRIS & COFFEY, PLLC
435 N. Walker, Suite 202
Oklahoma City, OK 73102
Tel: 405/235-1497
Fax: 405/606-7446
E-mail: kevin@harrisandcoffey.com
Attorney for the panel can be reached at:
Ruston C. Welch, Esq.
WELCH LAW FIRM, P.C.
4101 Perimeter Center Drive, Suite 360
Oklahoma City, OK 73112-2309
Tel: (405) 236-5222
Fax: (405) 231-5222
E-mail: rwelch@welchlawpc.com
About Macco Properties
Oklahoma City, Oklahoma-based Macco Properties, Inc., is a
property management company that is the sole or controlling member
and/or manager of numerous multi-family residential rental units
in Oklahoma City, Oklahoma, Wichita, Kansas, and Dallas, Texas,
and several and commercial business properties in Oklahoma City,
Oklahoma, and Holbrook, Arizona.
Macco Properties filed for Chapter 11 bankruptcy protection
(Bankr. W.D. Okla. Case No. 10-16682) on Nov. 2, 2010. The Debtor
disclosed $50,823,581 in total assets, and $4,323,034 in total
liabilities.
Affiliated entities also sought bankruptcy protection: NV Brooks
Apartments, LLC (10-16503); JU Villa Del Mar Apartments, LLC and
(10-16842); and SEP Riverpark Plaza, LLC (10-16832). SEP
Riverpark Plaza owns or controls The Riverpark Apartments, a
multi-family apartment complex located in Wichita, Kansas.
Receivership Services Corp., a division of the Martens Cos.,
serves as property manager for the six Wichita apartment complexes
caught up in the bankruptcy of Macco Properties of Oklahoma City.
On May 31, 2011, an Order was entered appointing Michael E. Deeba
as the Chapter 11 Trustee for Macco Properties. He is represented
by Christopher T. Stein, of counsel to the firm of Bellingham &
Loyd, P.C. Grubb & Ellis/Martens Commercial Group LLC acts as
the Chapter 11 Trustee's exclusive listing broker/realtor for
properties.
The Official Unsecured Creditors' Committee is represented by
Ruston C. Welch, at Welch Law Firm, P.C., in Oklahoma City.
In August 2013, the Bankruptcy Court signed off on an agreed order
dismissing the Chapter 11 cases of SEP Riverpark Plaza and JU
Villa Del Mar Apartments.
MAXCOM TELECOMUNICACIONES: CEO Ferrandiz Quits; Anaya Takes Over
----------------------------------------------------------------
Maxcom Telecomunicaciones, S.A.B. de C.V. announced the
resignation of Mr. Rene Sergio Sagastuy Ferrandiz to his position
of Chief Executive Officer of the Company.
Maxcom later disclosed that its Board of Directors has appointed
Mr. Enrique Ibarra Anaya as its new Chief Executive Officer.
Mr. Ibarra holds a degree in Civil Engineering from the
Universidad Nacional Autonoma de Mexico (UNAM or National
Autonomous University of Mexico) and Masters and Ph.D. degrees
from Carnegie Mellon University.
During his professional career, Mr. Ibarra has served in high
management positions in financial and telecommunication companies,
such as Ixe Grupo Financiero and Pegaso PCS (Telefonica Movistar
Mexico); companies where he served as Director of Systems and
Telecommunications.
During the last 8 years, Mr. Ibarra was Chief Executive Officer of
Bursatec, S.A. de C.V., a subsidiary of Grupo Bolsa Mexicana de
Valores, as well as Deputy General Director of Technology of the
Bolsa Mexicana de Valores, where he was in charge of the
installation and operation of the new electronic trading system,
known as MoNeT, that substantially increased the processing
capabilities of the trading platform of the Mexican stock
exchange, and which latency (speed) is similar to the best trading
systems of the world.
Being the telecommunication sector very closely related with the
information technology, in a world where the technology is
constantly evolving and is a central element of competitiveness,
the integration of Mr. Ibarra will be crucial to strengthen the
technological evolution of Maxcom, allowing the Company to expand
its business aiming at the highest levels of quality of service
delivered to the client.
About Maxcom
Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory. Maxcom launched commercial
operations in May 1999 and is currently offering local, long
distance, data, value-added, paid TV and IP-based services on a
full basis in greater metropolitan Mexico City, Puebla, Tehuacan,
San Luis, and Queretaro, and on a selected basis in several cities
in Mexico.
In June 2013, Maxcom didn't make an $11 million interest payment
on the notes.
Maxcom sought bankruptcy protection (Bankr. D. Del. Case No.
13-11839) in Wilmington, Delaware, on July 23, 2013.
Maxcom listed $11.1 billion in assets and $402.3 million in debt.
The company had assets valued at 4.98 billion pesos ($394 million)
in the quarter ended March 31, according to an April 26 regulatory
filing. The company reached a restructuring agreement with
Ventura Capital, a group holding about $86 million, or 48.7
percent, of the senior notes and about 44 percent of its equity
holders, court papers show.
The Company has engaged Lazard Freres & Co. LLC and its alliance
partner Alfaro, Davila y Rios, S.C., as its financial advisor and
Kirkland & Ellis LLP and Santamarina y Steta, S.C. as its U.S. and
Mexican legal advisors in connection with its restructuring
proceedings and potential Chapter 11 case. The Ad Hoc Group has
retained Cleary Gottlieb Steen & Hamilton LLP and Cervantes Sainz,
S.C., as its U.S. and Mexican legal advisors. Ventura has
retained VACE Partners as its financial advisor, and Paul Hastings
LLP and Jones Day as its U.S. and Mexican legal advisors,
respectively.
In September 2013, the U.S. bankruptcy court entered an order
confirming the Company's prepackaged Chapter 11 plan of
reorganization. Confirmation of the Plan was fully-consensual:
the only class of creditors entitled to vote overwhelmingly voted
in favor of the Plan and no party objected to confirmation of the
Plan. The Plan was declared effective in October 2013.
MAXCOM TELECOMUNICACIONES: Posts Ps.91-Mil. Net Loss in 3Q13
------------------------------------------------------------
Maxcom Telecomunicaciones, S.A.B. de C.V. (NYSE: MXT) (BMV: MAXCOM
CPO), one of the leading integrated telecommunications companies
in Mexico, disclosed on Oct. 28, 2013, its unaudited financial and
operating results for the quarter ended Sept. 30, 2013.
The Company reported a net loss during 3Q13 of Ps.91 million, in
comparison to the net income of Ps.65 million reported in the same
period of 2012.
Total revenues for the three months ended Sept. 30, 2013, were
Ps.642 million, an increase of 13% over revenue of Ps.566 million
recorded in the same period of last year.
"Residential revenues represented 34% of the total during 3Q13,
compared with 45% in 3Q12. Revenues in the residential business
segment reached Ps.220 million, representing 14% less
(Ps.37 million) in comparison to Ps.257 million recorded in 3Q12.
The decrease in the residential revenues mainly derived from the
termination of a contract linked to the MVNO operation.
"RPU (average revenue per unit) for the residential business for
3Q13 was Ps.149 which is 16% less than the Ps.177 recorded in
3Q12.
"Residential RGU per customer stayed almost flat in 1.8 in 3Q13,
with respect at the same quarter of 2012.
"Commercial revenues represented 27% of the total during 3Q13,
compared to 29% registered in 3Q12. Revenues in the Commercial
Business reached Ps.174 million, an increase of 7% in comparison
to Ps.163 million recorded in 3Q12.
"The 7% or Ps.11 million increase in revenues during 3Q13 is
mainly explained by an increase of data charges in Ps.19 million,
partially offset by Ps.8 million less revenue coming from voice
services.
"ARPU of the commercial business for 3Q13 reached Ps.760 which is
less than the Ps.796 recorded in 3Q12, and it explains because the
growth of RGUs (r11.6%) not was proportional at the revenue
(r6.6%).
"In addition, RGU per commercial increased 27% to reach 26.5 in
3Q13 compared to 20.9 in 3Q12.
"Public Telephony represented 6% of total revenue generated during
3Q13. Revenues in this business unit totaled Ps.39 million, a
decrease of 7% when compared to Ps.42 million in 3Q12. The
decrease in revenues is attributed to a reduction in network
usage, as well as a minor number of telephones in operation.
"In 3Q13, wholesale revenues increased 105% to reach
Ps.205 million, in comparison to the Ps.100 million registered
during the same period in the previous year. The growth in this
business unit was due to the increase in the international traffic
terminated in our network.
"Other revenues contributed marginally and reached Ps.4 million,
the same Ps.4 million registered in 3Q12.
"EBITDA for 3Q13 was Ps.188 million, above the Ps.176 million
registered in the same period of last year. EBITDA Margin was 29%
during the period, slightly under of the 31% of last year.
"The Company recorded an operating loss for 3Q13 of Ps.5 million,
in the same quarter last year the company achieved operating
income of Ps.5 million. Depreciation charges during the quarter
were Ps.155 million, increasing Ps.12 million against the
Ps.143 million of the 3Q12."
Comprehensive cost of financing was Ps.85 million during the
quarter, a Ps.146 million decrease when compared to Ps.61 million
comprehensive income in the same period of 2012.
Balance Sheet
As of Sept. 30, 2013, the Company had total assets of
Ps.4,923,306 million, total liabilities of Ps.3,007,661 million,
and shareholders' equity of Ps.1,915,645 million.
In comparison, as of Sept. 30, 2012, the Company had total assets
of Ps.5,311,268, total liabilities of Ps.3,108,823, and
shareholders' equity of Ps.2,202,445.
A copy of the press release is available for free at:
http://is.gd/iyO4mK
About Maxcom
Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory. Maxcom launched commercial
operations in May 1999 and is currently offering local, long
distance, data, value-added, paid TV and IP-based services on a
full basis in greater metropolitan Mexico City, Puebla, Tehuacan,
San Luis, and Queretaro, and on a selected basis in several cities
in Mexico.
In June 2013, Maxcom didn't make an $11 million interest payment
on the notes.
Maxcom sought bankruptcy protection (Bankr. D. Del. Case No.
13-11839) in Wilmington, Delaware, on July 23, 2013.
Maxcom listed $11.1 billion in assets and $402.3 million in debt.
The company had assets valued at 4.98 billion pesos ($394 million)
in the quarter ended March 31, according to an April 26 regulatory
filing. The company reached a restructuring agreement with
Ventura Capital, a group holding about $86 million, or 48.7
percent, of the senior notes and about 44 percent of its equity
holders, court papers show.
The Company has engaged Lazard Freres & Co. LLC and its alliance
partner Alfaro, Davila y Rios, S.C., as its financial advisor and
Kirkland & Ellis LLP and Santamarina y Steta, S.C. as its U.S. and
Mexican legal advisors in connection with its restructuring
proceedings and potential Chapter 11 case. The Ad Hoc Group has
retained Cleary Gottlieb Steen & Hamilton LLP and Cervantes Sainz,
S.C., as its U.S. and Mexican legal advisors. Ventura has
retained VACE Partners as its financial advisor, and Paul Hastings
LLP and Jones Day as its U.S. and Mexican legal advisors,
respectively.
In September 2013, the U.S. bankruptcy court entered an order
confirming the Company's prepackaged Chapter 11 plan of
reorganization. Confirmation of the Plan was fully-consensual:
the only class of creditors entitled to vote overwhelmingly voted
in favor of the Plan and no party objected to confirmation of the
Plan. The Plan was declared effective in October 2013.
MAXCOM TELECOMUNICACIONES: 52.21% of Shares Subscribed and Paid
---------------------------------------------------------------
Maxcom Telecomunicaciones, S.A.B. de C.V. (NYSE: MXT, BMV:
MAXCOM.CPO) announced Friday that in connection with the capital
increase approved by the Shareholders Meeting dated Oct. 2, 2013,
as of Oct. 30, 2013, date in which the exercise of the preemptive
rights expire, the total shares subscribed and paid were
1,619,700,750, representing approximately 52.21% of the total
shares issued, therefore, the Company received as of this date,
$1,565,710,731.96 Pesos. Of the total shares duly subscribed,
943,470,906 Series "A" shares equivalent to $912,610,628.25 Pesos,
were subscribed and paid by the public investors.
Pursuant to the resolutions approved by the Shareholders Meeting,
the Chairman of the Board of Maxcom will offer to a third party,
the unsubscribed shares in the same price of $0.96666667 Pesos per
share. In its time, the Company will inform the market the final
results of the capital increase.
The above mentioned, together with the consummation of the
recapitalization process and the reorganization of his debt under
Chapter 11 of the United States Code (Bankruptcy Code) concluded
on Oct. 11, 2013, put the Company with a solid financial position
and will permit Maxcom to realize all the necessary investments to
growth the business with a high quality costumer services.
About Maxcom
Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory. Maxcom launched commercial
operations in May 1999 and is currently offering local, long
distance, data, value-added, paid TV and IP-based services on a
full basis in greater metropolitan Mexico City, Puebla, Tehuacan,
San Luis, and Queretaro, and on a selected basis in several cities
in Mexico.
In June 2013, Maxcom didn't make an $11 million interest payment
on the notes.
Maxcom sought bankruptcy protection (Bankr. D. Del. Case No.
13-11839) in Wilmington, Delaware, on July 23, 2013.
Maxcom listed $11.1 billion in assets and $402.3 million in debt.
The company had assets valued at 4.98 billion pesos ($394 million)
in the quarter ended March 31, according to an April 26 regulatory
filing. The company reached a restructuring agreement with
Ventura Capital, a group holding about $86 million, or 48.7
percent, of the senior notes and about 44 percent of its equity
holders, court papers show.
The Company has engaged Lazard Freres & Co. LLC and its alliance
partner Alfaro, Davila y Rios, S.C., as its financial advisor and
Kirkland & Ellis LLP and Santamarina y Steta, S.C. as its U.S. and
Mexican legal advisors in connection with its restructuring
proceedings and potential Chapter 11 case. The Ad Hoc Group has
retained Cleary Gottlieb Steen & Hamilton LLP and Cervantes Sainz,
S.C., as its U.S. and Mexican legal advisors. Ventura has
retained VACE Partners as its financial advisor, and Paul Hastings
LLP and Jones Day as its U.S. and Mexican legal advisors,
respectively.
In September 2013, the U.S. bankruptcy court entered an order
confirming the Company's prepackaged Chapter 11 plan of
reorganization. Confirmation of the Plan was fully-consensual:
the only class of creditors entitled to vote overwhelmingly voted
in favor of the Plan and no party objected to confirmation of the
Plan. The Plan was declared effective in October 2013.
MCS AMS: S&P Assigns 'B' CCR & Rates Sr. Secured Facilities 'B'
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'B' corporate credit
rating to Plano, Texas-based MCS AMS Sub-Holdings LLC. The
outlook is stable.
At the same time, S&P assigned a 'B' issue rating to MCS AMS Sub-
Holdings' senior secured credit facilities, which include a
$20 million revolver due 2018 and a $340 million term loan due
2019. The recovery rating is '3', which indicates S&P's
expectation of a meaningful recovery (50% to 70%) for creditors in
the event of a payment default or bankruptcy.
"The ratings on MCS AMS reflect our assessment of the company's
narrow business focus within a niche industry and customer
concentration," said Standard & Poor's credit analyst Michael
Audino. "The ratings also reflect our view that the company has
weak credit ratios, and our view its financial policy will be
aggressive, although liquidity will remain adequate."
The stable outlook reflects Standard & Poor's view that MCS AMS
should be able to maintain credit measures near current pro forma
levels over the next year, despite weak conditions in the mortgage
field services industry. "We believe the company's good market
position, ability to win new business from new and existing
customers, and cost savings opportunities will partially offset
the industry conditions," said Mr. Audino.
MEDICAL SPECIALTIES: S&P Gives 'B' CCR & Rates New $170MM Debt 'B'
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned alternate site
infusion therapy solutions provider Medical Specialties
Distributors LLC a 'B' corporate credit rating. The outlook is
stable.
At the same time, S&P assigned the company's proposed $170 million
first-lien credit facility its 'B' issue-level rating, with a
recovery rating of '3', indicating its expectation for meaningful
(50%-70%) recovery in the event of a payment default. The
facility consists of a $30 million revolver and $140 million term
loan.
"Our rating on Medical Specialties Distributors (MSD) reflects the
company's "highly leveraged" financial risk profile (based on our
criteria), with adjusted pro forma leverage of 5.4x and our
expectation that leverage will remain over 5x for the next year.
The rating also reflects funds from operations (FFO) to total debt
of 11.5%. The rating also reflects our assessment of the
company's business risk profile as "weak," based on the company's
small size, narrow business focus, small addressable market, and
competition from large pharmaceutical wholesalers in certain
business segments. We believe these factors are only partially
offset by the company's leading market position in the direct-to-
provider home infusion supplies distribution space. MSD is a
distributor of home infusion therapy supplies that performs
distribution services under its Home Infusion Therapy (HIT),
Patient Home Direct(PHD), and oncology segments, while providing
home infusion medical equipment rentals and maintenance services
under its biomedical services segment," S&P said.
MEDICURE INC: Incurs C$502,000 Net Loss in First Quarter 2014
-------------------------------------------------------------
Medicure Inc. reported a net loss of C$502,402 on C$747,018 of net
product sales for the three months ended Aug. 31, 2013, as
compared with a net loss of C$296,744 on C$667,438 of net product
sales for the same period during the prior year.
The Company's balance sheet at Aug. 31, 2013, showed C$3.27
million in total assets, C$8.07 million in total liabilities and a
C$4.80 million total deficiency.
At Aug. 31, 2013, the Company had cash totalling $12,000 compared
to $127,000 as of May 31, 2013. The decrease in cash is primarily
due to the increased net loss. Cash flows used in operating
activities for the three month ended Aug. 31, 2013, were $114,000,
compared to $686,000 for the three months ended Aug. 31, 2012.
"There is substantial doubt about the appropriateness of the use
of the going concern assumption because the Company has
experienced operating losses from incorporation and has
accumulated a deficit of $126,379,758 as at August 31, 2013 and a
working capital deficiency of $1,128,962. Management has forecast
that contractual commitments and debt service obligations will
exceed the Company's net cash flows and working capital during
fiscal 2014. The Company's future operations are dependent upon
its ability to grow sales of AGGRASTAT(R), to develop and/or
acquire new products, and/or secure additional capital, which may
not be available under favourable terms or at all, and/or
renegotiate the terms of its contractual commitments. If the
Company is unable to grow sales or raise additional capital,
management will consider other strategies including further cost
curtailments, delays of research and development activities, asset
divestures and/or monetization of certain intangibles. Effective
August 1, 2013, the Company renegotiated its long-term debt and
received an additional two year deferral of principal repayments.
Under the renegotiated terms, the loan continues to be interest
only with principal repayments now beginning on August 1, 2015 and
the loan matures on July 1, 2018," the Company said in the
regulatory filing.
A copy of the Form 6-K is available for free at:
http://is.gd/QvTkhY
About Medicure Inc.
Based in Winnipeg, Manitoba, Canada, Medicure Inc. (TSX/NEX:
MPH.H) -- http://www.medicure.com/-- is a biopharmaceutical
company engaged in the research, development and commercialization
of human therapeutics. The Company has rights to the commercial
product, AGGRASTAT(R) Injection (tirofiban hydrochloride) in the
United States and its territories (Puerto Rico, U.S. Virgin
Islands, and Guam). AGGRASTAT(R), a glycoprotein GP IIb/IIIa
receptor antagonist, is used for the treatment of acute coronary
syndrome (ACS) including unstable angina, which is characterized
by chest pain when one is at rest, and non-Q-wave myocardial
infarction.
Medicure Inc. incurred a net loss of C$2.57 million on C$2.60
million of net product sales for the year ended May 31, 2013, as
compared with net income of C$23.38 million on C$4.79 million of
net product sales during the prior fiscal year.
Ernst & Young, LLP, in Winnipeg, Canada, issued a "going concern"
qualification on the consolidated financial statements for the
year ended May 31, 2013. The independent auditors noted that
Medicure Inc. has experienced losses and has accumulated a deficit
of $125,877,356 since incorporation and a working capital
deficiency of $2,065,539 as at May 31, 2013 that raises
substantial doubt about its ability to continue as a going
concern.
MF GLOBAL: Suing JC Flowers Over Dividends Paid Before Collapse
---------------------------------------------------------------
Joseph Checkler, writing for Daily Bankruptcy Review, reported
that MF Global Holdings Ltd. is going after $20 million in
dividends it paid to private equity firm J.C. Flowers & Co. and
other shareholders in the year leading up to its bankruptcy, which
was filed two years ago on Oct. 31.
According to the report, in a lawsuit filed on Oct. 30 with U.S.
Bankruptcy Court in Manhattan, MF Global said it paid $16.1
million in dividends to J.C. Flowers and $3.9 million to another
group of preferred stockholders from November 2010 all the way up
to August 2011, less than three months before the firm collapsed
into bankruptcy.
MF Global says that money belongs to its estate, thanks to a
provision of the Bankruptcy Code that allows a company to claw
back money it paid out in the year before its bankruptcy filing if
its financial condition was perilous, the report related.
Along with J.C. Flowers, MF Global named yet-to-be-identified
shareholders, John Doe No. 1 through John Doe No. 25, as
recipients of the dividends, the report added. A spokesman for
J.C. Flowers didn't immediately respond to a request for comment.
J.C. Flowers began investing in MF Global in 2008, including
taking a dividend-yielding stake in the company through MF
Global's July 2008 preferred stock offering, the report further
related. The firm collected a total of $39.6 million in
dividends, according to a 2011 Wall Street Journal article, but
marked to zero the rest of its investment when MF Global
collapsed. Now, the company is going after some of those dividends
as part of its effort to regain more money for other creditors.
About MF Global
New York-based MF Global -- http://www.mfglobal.com/-- was one of
the world's leading brokers of commodities and listed derivatives.
MF Global provides access to more than 70 exchanges around the
world. The firm also was one of 22 primary dealers authorized to
trade U.S. government securities with the Federal Reserve Bank of
New York. MF Global's roots go back nearly 230 years to a sugar
brokerage on the banks of the Thames River in London.
On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance
USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y.
Case Nos. 11-15059 and 11-5058), after a planned sale to
Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF
Global had $41,046,594,000 in total assets and $39,683,915,000 in
total liabilities.
On Nov. 7, 2011, the United States Trustee appointed the statutory
creditors' committee in the Debtors' cases. At the behest of the
Statutory Creditor's Committee, the Court directed the U.S.
Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the
Bankruptcy Court entered an order approving the appointment of
Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC,
as Chapter 11 trustee.
On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services
LLC and MF Global FX Clear LLC filed voluntary Chapter 11
petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and
11-15810). On Dec. 27, the Court entered an order installing Mr.
Freeh as Chapter 11 Trustee of the New Debtors.
On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary
Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr.
Freeh also was installed as its Chapter 11 Trustee.
Judge Honorable Martin Glenn presides over the Chapter 11 case.
J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric
Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve
as bankruptcy counsel. The Garden City Group, Inc., serves as
claims and noticing agent. The petition was signed by Bradley I.
Abelow, Executive Vice President and Chief Executive Officer of MF
Global Finance USA Inc.
The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan
LLP, as investigative counsel; (ii) FTI Consulting Inc., as
restructuring advisors; (iii) Morrison & Foerster LLP, as
bankruptcy counsel; and (iv) Pepper Hamilton as special counsel.
The Official Committee of Unsecured Creditors has retained
Capstone Advisory Group LLC as financial advisor, while lawyers at
Proskauer Rose LLP serve as counsel.
The Securities Investor Protection Corporation commenced
liquidation proceedings against MF Global Inc. to protect
customers. James W. Giddens was appointed as trustee pursuant to
the Securities Investor Protection Act. He is a partner at Hughes
Hubbard & Reed LLP in New York.
Jon Corzine, the former New Jersey governor and co-CEO of
Goldman Sachs Group Inc., stepped down as chairman and chief
executive officer of MF Global just days after the bankruptcy
filing.
In April 2013, the Bankruptcy Court approved MF Global Holdings'
plan to liquidate its assets. Bloomberg News reported that the
court-approved disclosure statement initially told
creditors with $1.134 billion in unsecured claims against the
parent holding company why they could expect a recovery of 13.4%
to 39.1% from the plan. As a consequence of a settlement with
JPMorgan, supplemental materials informed unsecured creditors
their recovery was reduced to the range of 11.4% to 34.4%. Bank
lenders will have the same recovery on their $1.174 billion claim
against the holding company. As a consequence of the settlement,
the predicted recovery became 18% to 41.5% for holders of $1.19
billion in unsecured claims against the finance subsidiary,
one of the companies under the umbrella of the holding company
trustee. Previously, the predicted recovery was 14.7% to 34% on
bank lenders' claims against the finance subsidiary.
MONTANA ELECTRIC: Four Co-op Members File Amended Plan Outline
--------------------------------------------------------------
Four cooperative members in Debtor Southern Montana Electric
Generation and Transmission Cooperative, Inc. prepared a First
Amended Disclosure Statement in support of the Members' Plan of
Liquidation for the Debtor.
Drafted by Beartooth Electric Cooperative, Inc., Fergus Electric
Cooperative, Inc., Mid-Yellowstone Electric Cooperative, Inc. and
Tongue River Electric Cooperative, Inc. and their counsel, the
Disclosure Statement is submitted as a supplement to the
Disclosure Statement of the Chapter 11 Trustee, Lee A. Freeman's,
Third Amended Plan of Reorganization, as approved by the
Bankruptcy Court on Oct. 1, 2013.
The Members' Plan provides for:
* the prompt and complete liquidation and dissolution of the
Debtor;
* sale, distribution or surrender of the Debtor's assets;
* substantial distributions to secured creditors commensurate
with their collateral;
* a distribution to unsecured creditors that is equal to if not
greater than what they would receive if the Debtor were to be
liquidated in Chapter 7; and
* for the Members to transition to new power suppliers during a
limited transition period following confirmation.
The other key elements of the Members' Plan are that (1) the
Debtor will appoint a Liquidating Agent to manage the Debtor's
liquidation; (2) Highwood Generating Station and other collateral
is surrendered to the primary secured creditors, Prudential and
Modern Woodmen; (3) the Members? All-Requirements Contracts with
Debtor are rejected and terminated; and, (4) the Debtor?s power
contract with Western Area Power Administration is assigned in
agreed allocated shares to the participating Members.
The Members' Disclosure Statement further provide that Claim and
interests in Classes 2 (Prudential and Modern Woodmen), 3 (First
Interstate Bank Loans), 4 (CFC), 5 (Construction Lien Claims), 6
(General Unsecured Claims), 7 (Convenience Claims), 8 (Member
Patronage Capital and similar Claims), and 9 (Member Interests)
are impaired under the Members? Plan and Claims and Interests in
such Classes will receive distributions under the Plan to the
extent not otherwise waived. Holders of Claims in Class 1
(Priority Non-Tax Claims) are unimpaired by the Plan.
The Members reveal that none of them believe that "stability can
be found in any reorganization of the Debtor, as none of the
Members believe that a reorganized Debtor could stay together long
term." Moreover, the Members identify in the Disclosure Statement
the reasons for believing the Trustee Plan is not feasible.
Under their Plan, the Members waive any claims against the Debtor
and any rights to distributions from the liquidation of the
Debtor. Immediate liquidation qill also stop that $1.5 to $2
million that is being paid each month as adequate protection to
the Noteholders, for the Noteholders' professionals, and for the
Trustee's expenses and the expenses of the Trustee's
professionals.
James Winchell, a certified public accountant in Billings,
Montana, will act as Liquidating Agent under the Plan.
The Members' Disclosure Statement, dated Oct. 18, 2013, is
available for free at:
http://bankrupt.com/misc/SMElectric_DSOct18.PDF
Counsel for Tongue River Electric Cooperative, Inc., is:
GUTHALS, HUNNES & REUSS, P.C.
Jeffery A. Hunnes, Esq.
P.O. Box 1977
Billings, MT 59103-1977
Tel No: 406-245-3071
Fax No: 406-245-3074
E-Mail: jhunnes@ghrlawfirm.com
Counsel for Mid-Yellowstone Electric Cooperative, Inc., is:
Gary Ryder, Esq.
P O Box 72
Hysham MT 59038
Tel No: (406) 342-5546
Fax No: (406) 342-5626
Email: garyryder@rangeweb.net
Counsel for Fergus Electric Cooperative, Inc., are:
LAW OFFICE OF JOHN P. PAUL, PLLC
John Paul, Esq.
PO Box 533
Great Falls MT 59403
Tel No: (406) 761-4422
Fax No: (406) 761-2009
Email: johnpaul@qwestoffice.net
-- and --
GOETZ, BALDWIN & GEDDES, P.C.
Robert K. Baldwin, Esq.
Trent M. Gardner, Esq.
35 North Grand
P.O. Box 6580
Bozeman, MT 59771-6580
Tel No: (406) 587-0618
Fax No: (406) 587-5144
Email: rbaldwin@goetzlawfirm.com
tgardner@goetzlawfirm.com
Counsel for Beartooth Electric Cooperative, Inc., is:
FELT, MARTIN, FRAZIER & WELDON, P.C.
Laurence R. Martin, Esq.
Martin S. Smith, Esq.
208 North Broadway, Suite 313
P.O. Box 2558
Billings, Montana 59103
Tel No: (406) 248-7646
Fax No: (406) 248-5485
Email: msmith@feltmartinlaw.com
lmartin@feltmartinlaw.com
About Southern Montana Electric
Based in Billings, Montana, Southern Montana Electric Generation
and Transmission Cooperative, Inc., was formed to serve five other
electric cooperatives. The city of Great Falls later joined as
the sixth member. Including the city, the co-op serves a
population of 122,000. In addition to Great Falls, the service
area includes suburbs of Billings, Montana.
Southern Montana filed for Chapter 11 bankruptcy (Bankr. D.
Mont. Case No. 11-62031) on Oct. 21, 2011. Southern Montana
estimated assets of $100 million to $500 million and estimated
debts of $100 million to $500 million. Timothy Gregori signed the
petition as general manager.
Malcolm H. Goodrich, Esq., at Goodrich Law Firm, P.C., in
Billings, Montana, serves as the Debtor's counsel.
After filing for reorganization in October, the co-op agreed to a
request for appointment of a Chapter 11 trustee. Lee A. Freeman
was appointed as the Chapter 11 trustee in December 2011. He is
represented by Joseph V. Womack, Esq., at Waller & Womack, and
John Cardinal Parks, Esq., Bart B. Burnett, Esq., Robert M.
Horowitz, Esq., and Kevin S. Neiman, Esq., at Horowitz & Burnett,
P.C.
Harold V. Dye, Esq., at Dye & Moe, P.L.L.P., in Missoula, Montana,
represents the Unsecured Creditors' Committee as counsel.
N.M. MOODY: Case Summary & 6 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: N.M. Moody, LLC
P.O. Box 947
Lindsay, TX 76250
Case No.: 13-42664
Chapter 11 Petition Date: November 3, 2013
Court: United States Bankruptcy Court
Eastern District of Texas (Sherman)
Debtor's Counsel: Eric A. Liepins, Esq.
12770 Coit Road, Suite 1100
Dallas, TX 75251
Tel: (972) 991-5591
Email: eric@ealpc.com
Total Assets: $6.50 million
Total Liabilities: $6.95 million
The petition was signed by Dr. Tarqi Mahmood, sole member.
A list of the Debtor's six largest unsecured creditors is
available for free at http://bankrupt.com/misc/txeb13-42664.pdf
N.P.S. INC.: Dayton Parking Lots in Receivership
------------------------------------------------
The Dayton Business Journal reports that five downtown Dayton,
Ohio parking lots could soon go into foreclosure.
Court records revealed that N.P.S. Inc. and A.O.F. Real Estate,
two downtown parking companies which were both backed by Paul
Hutchins, owner of Parking Management Inc., defaulted on a $5.5
million loan from Commerce Bank in Missouri, dated October of
2008, according to Dayton Business Journal.
The report notes that the following parking lots were mortgaged
and the owners have defaulted, and the lots could be foreclosed
upon and sold:
-- 239 N. Ludlow St.
-- West First Street
-- 25-29 W. Fifth St.
-- 28-38 S. Jefferson St.
-- 1140 National Road
-- 324-326 W. First St.
The report notes that many companies that have left downtown
Dayton have listed more convenient parking in the suburbs as one
of the reasons they moved, even though downtown has more than
15,000 public parking spaces.
The report relates that all of the parking lots in default, except
the Park-N-Go lot at 1140 National Road in Vandalia, are in
downtown Dayton. The downtown lots make up more than 700 parking
spaces, the report discloses.
Mr. Hutchins, the report notes, is now on the hook for more than
$4.6 million, which is the remaining balance on the original loan.
The lawsuit and foreclosure process are ongoing.
In May, Art Hollencamp was appointed as receiver for all of the
parking lots, in charge of collecting and processing payments, the
report discloses.
In a response to a dispute between Hutchins and Hollencamp,
Hutchins said downtown?s economy led to the default, the report
relates.
"The reason the subject properties are not producing cash flow?is
due to the lack of sufficient downtown parking customers
consistent with the depressed downtown Dayton office market and
the hollowing out of tenants and business activity in the downtown
Dayton central business district," Hutchins wrote in the statement
obtained by Dayton Business Journal.
NEWPARK RESOURCES: S&P Raises CCR & Sr. Unsec. Ratings to 'B+'
--------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its corporate
credit and senior unsecured ratings on oilfield services provider
Newpark Resources Inc. to 'B+' from 'B'. The outlook is stable.
The upgrade reflects S&P's expectation for continued strong
financial performance and liquidity, which should help offset the
inherent volatility of the oilfield services industry, which S&P
views as heightened by Newpark's limited scale of operations and
focus on the North American market. S&P expects debt leverage to
remain about 2x or less and funds from operations (FFO) to debt to
be more than 45% under most market conditions. Furthermore, S&P
expects the company's continued international expansion and growth
in its high margin mat and integrated services segment to support
improving scale, as well as geographic and product diversity.
Nevertheless, ratings will continue to reflect Newpark's limited
scale of operations and diversity relative to its similarly rated
peers, and severely limit the potential for further ratings
improvement over the next 12 to 18 months.
"The stable outlook reflects our expectation that Newpark's credit
measures will remain strong for the rating category, with debt to
EBITDA of 1x to 2x," said Standard & Poor's credit analyst Paul
Harvey.
S&P could downgrade the company if Newpark's debt to EBITDA
increased to more than 4x for a sustained period, which would
correspond to an annual EBITDA of $55 million to $60 million.
This would most likely occur from a severe drop in U.S. drilling
activity, due to lower oil and natural gas prices.
S&P views an upgrade as unlikely within the next 12 months due to
the company's small scale, limited product diversity, and low
margins relative to peers.
NETFLIX INC: S&P Revises Outlook to Stable & Affirms 'BB-' CCR
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
Netflix Inc. to stable from negative. The 'BB-' corporate credit
rating on Netflix is affirmed.
"Our outlook revision reflects the company's good subscriber
growth trends and our expectation for continuing solid subscriber
growth in 2014," said Standard & Poor's credit analyst Andy Liu.
Discretionary cash flow will likely be negative in 2013 as a
result of upfront costs related to original programming, and it's
likely that it will be negative in 2014 as a result of Netflix
entering a major new international market. However, S&P believes
the discretionary cash flow deficit in 2014 should not
significantly pressure liquidity. Netflix's investment in
original programming has been the primary cause of discretionary
cash flow deficits as it requires more upfront payments. Although
several of Netflix's original shows have received very positive
reviews and appear popular with subscribers, the return on
investment in originals can still be highly volatile. This
strategy, concurrent with rapidly growing library content
commitments and international expansion, raises business and
financial risk, and will likely consume liquidity at least over
the near term. S&P currently believes the company will be able to
handle increased funding needs.
The rating outlook is stable. Good subscriber growth trends and
boost to revenue and profitability support our view that Netflix
can continue its pace of original programming investments and
enter new markets without a material negative effect on credit
metrics.
While Netflix's original series have achieved some success, S&P
still views original programming as more risky than licensed
content. S&P could lower the rating if Netflix experiences a
precipitous decline in subscriber growth such that programming
investments (original and licensed) significantly outpace
subscriber growth. Under such scenario, the company will likely
be incurring more significant discretionary cash flow deficits and
using up a meaningful portion of its liquidity. S&P could also
lower the rating if the company begins to report markedly
increased losses in key international startups.
It is unlikely that S&P will raise the rating over the
intermediate term. S&P could consider an upgrade if the company
achieves robust subscriber growth, success in international
markets, some stabilization of competition (especially with regard
to content licensing and new entrants), a significant improvement
in profitability to greater than a 10% EBITDA margin, and a viable
path to positive discretionary cash flow.
NEW WOOD CORPORATION: Port of Grays Harbor Looks to Buy Facility
----------------------------------------------------------------
KBKW News reports that Port of Grays Harbor looks to acquire
the mothballed NewWood Corporation facility at the Satsop Business
Park in Elma, Washington, out of receivership.
Manager at the Satsop Business Park Alissa Shay said" we will be
recommending to the Port commissioners that the Port of Grays
Harbor purchase the assets of the New Wood Corporation from the
receiver, we are also proposing that we sign a letter of intent
with a company to operate the facility," according to KBKW News.
The report notes that the building turns wood waste and recycled
plastic into a composite wood, and has yet to see a fruitful
market despite efforts by Office Max, Boise Cascade and the
previous owners, at full steam the mill employs as many as 150.
Mr. Shay, the report notes, said it's all a bit complicated and
will be explained in detail at a special meeting.
NII HOLDINGS: S&P Puts 'B-' CCR on CreditWatch with Negative
------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its ratings,
including the 'B-' corporate credit rating, on Reston, Va.-based
wireless carrier NII Holdings Inc. on CreditWatch with negative
implications. The CreditWatch placement means that S&P could
lower or affirm the ratings after it completes its review.
"The CreditWatch listing follows the company's release of its 2013
third quarter operating and financial results, which were
substantially below our expectations," said Standard & Poor's
credit analyst Allyn Arden.
During the quarter, total revenue and EBITDA fell 22% and 78%,
respectively, year over year, due to subscriber losses in the
Mexico market, investments related to the company's network
upgrade, weaker foreign currency rates, and lower average revenue
per subscriber (ARPU) in all of its markets. The shutdown of
Sprint Corp.'s iDEN network is having a significant adverse impact
on company results in Mexico since NII's 3G network experienced
some loading issues, which resulted in substantially heightened
churn and net subscriber losses of 284,000. Due to all of these
factors, the company indicated that EBITDA could be at least
$200 million lower in 2013 than its previous guidance, which will
result in leverage rising above S&P's previous expectations.
S&P plans to resolve the CreditWatch placement within the next few
weeks. S&P's evaluation will focus on the company's cash flow and
liquidity position. A downgrade, if any, is unlikely to exceed
one notch, depending on S&P's view of NII's projected covenant
cushion under its various facilities and the company's longer-term
liquidity position.
NORTH TEXAS BANCSHARES: Creditors Rip Plan to Sell Dallas Bank
--------------------------------------------------------------
Law360 reported that the collateral manager for a group of
unsecured creditors of North Texas Bancshares Inc. on Nov. 1
blasted the bank holding company's plan to auction its interests
in Park Cities Bank as a "sham" that will just enrich insiders
while leaving unsecured creditors out in the cold.
According to the report, in a motion filed in Delaware bankruptcy
court, Cohen & Company Financial Management LLC -- collateral
manager for a group of Alesco funds owed $9 million under junior
subordinated debentures issued as trust preferred securities --
argued against NTBI's plan.
North Texas Bancshares of Delaware, Inc. (Case No. 13-12699) and
North Texas Bancshares, Inc. (Case No. 13-12700) sought protection
under Chapter 11 of the Bankruptcy Code on Oct. 16, 2013, before
the United States Bankruptcy Court for the District of Delaware.
The jointly administered cases are before Judge Kevin Gross.
The Debtors' are represented by Tobey M. Daluz, Esq., Leslie C.
Heilman, Esq., and Matthew Summers, Esq., at BALLARD SPAHR LLP, in
Wilmington, Delaware. The Debtors' special counsel is Bracewell &
Giuliani LLP. Commerce Street Capital, LLC, serves as the
Debtors' financial advisors.
NOVOGEN LIMITED: Grant Thornton Raises Going Concern Doubt
----------------------------------------------------------
Novogen Limited filed with the U.S. Securities and Exchange
Commission on Oct. 31, 2013, its annual report on Form 20-F for
the fiscal year ended June 30, 2013.
Grant Thornton Audit Pty. Ltd. expressed substantial doubt about
the Company's ability to continue as a going concern, citing the
company's dependence upon deriving sufficient cash from investors
and future revenues.
The Company reported a net income of A$3.18 million on A$1.11
million of revenues in for the year ended June 30, 2013, compared
with a net loss of A$1.63 million in 2012.
The Company's balance sheet at June 30, 2013, showed A$5.75
million in total assets, A$1.71 million in total liabilities, and
stockholders' equity of A$4.04 million.
A copy of the Form 20-F is available at:
http://is.gd/eM5Bu7
About Novogen
Based in Horsby, Australia, Novogen Limited, a public company
limited by shares, was incorporated in March 1994 under the
jurisdiction of the laws of New South Wales, Australia.
The Company is a pharmaceutical company which has been involved in
the discovery, development, manufacture and marketing of products
based on the emerging field of isoflavonoid technology. The
Company's product development program, which it conducts through
its subsidiary MEI Pharma, Inc. ("MEI"), embraces a novel range of
pharmaceuticals based on the field of isoflavonoid technology and
on compounds known as isoflavones.
OHC/PARK MANOR: Texas Senior Living Apartment Owner Files in Waco
-----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the owner of the Park Manor Apartments for senior
citizens in Sherman, Texas, filed for Chapter 11 protection on
Oct. 31 in Waco.
According to the report, the project was financed with $10.4
million in tax-free bonds issued through the Texas Department of
Housing and Community Affairs.
The owner said the project is worth less than the bonds. The
petition listed assets as being worth less than $10 million
with debt exceeding $10 million.
The case is OHC/Park Manor Ltd., 13-bk-60964, U.S. Bankruptcy
Court, Western District of Texas (Waco).
OSX BRAZIL: Says Bankruptcy Isn't Out Of the Cards
--------------------------------------------------
Paulo Trevisani, writing for Daily Bankruptcy Review, reported
that OSX Brasil SA, a supplier of equipment and service to oil
firms, said on Oct. 31 it may file for bankruptcy if management so
decides.
According to the report, the announcement on a regulatory filing
was made in response to local press reports that the company was
about to file for bankruptcy protection in the next few days, in
the heels of its sister company OGX Petroleo e Participacoes SA.
OGX filed for bankruptcy on Oct. 30 as the conglomerate built by
Brazilian entrepreneur Eike Batista has fallen on hard times, the
report related.
Both OGX and OSX are controlled by Mr. Batista, the report added.
"The company could exercise its legal right to judicial recovery
in case its management sees this measure as the most adequate to
preserve continuity of its business and [protection of] OSX's and
its stakeholders interests," OSX said in the filing, the report
further related.
OSX also said it is regularly in talks with parties it didn't
identify, "seeking to advance its restructuring initiatives."
OSX Brasil SA is a shipbuilder controlled by billionaire Eike
Batista.
ORECK CORPORATION: Plan Filing Period Extended Until Dec. 2
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Tennessee has
extended Oreck Corporation, et al.'s exclusive periods to file and
obtain acceptances of a plan until Dec. 2, 2013, and Jan. 31,
2014, respectively.
As reported in the TCR on Sept. 9, 2013, the Debtors and the
Official Committee of Unsecured Creditors specify that they need
additional time to negotiate with parties-in-interest in order to
formulate a confirmable plan and have sufficient time to file and
solicit acceptances of the Plan.
About Oreck Corp.
Oreck Corporation and eight affiliates sought Chapter 11
protection (Bankr. M.D. Tenn. Lead Case No. 13-04006) in
Nashville, Tennessee, on May 6, 2013, with plans to sell the
business as a going concern.
Oreck has been in the business of manufacturing, marketing and
selling vacuum cleaners and related products since the late 1960s.
The corporate offices are located in Nashville, and the
manufacturing and call center is located in Cookeville, Tennessee.
Oreck has 70 employees in Nashville, 250 employees at its plant in
Cookeville and 325 employees operating 96 company-owned and
managed retail stores. The Debtor disclosed $18,013,249 in assets
and $14,932,841 plus an unknown amount in liabilities as of the
Chapter 11 filing.
William L. Norton III, Esq., and Alexandra E. Dugan, Esq., at
Bradley Arant Boult Cummings LLP, serve as counsel to the Debtor.
BMC Group Inc. is the claims and notice agent. Sawaya Segalas &
Co., LLC serves as financial advisor.
The U.S. Trustee appointed six creditors to the Official Committee
of Unsecured Creditors. Daniel H. Puryear, Esq., at Puryear Law
Group, and Sharon L. Levine, Esq., and Kenneth A. Rosen, Esq., at
Lowenstein Sandler LLP represent the Committee. The Committee
tapped to retain Gavin/Solmonese LLC as its financial advisor.
In July 2013, Royal Appliance Mfg. Co. (RAM), a subsidiary of the
TTI Group, finalized the purchase of Oreck Corp.'s assets. The
Bankruptcy Court approved the sale on July 16, 2013.
Royal, the maker of Dirt Devil floor-care products, won the
auction for Oreck Corp. The second-place bidder was the Oreck
family, which sold the business in a $272 million transaction in
2003. The Oreck family made the first bid at auction at
$21.9 million, including $14.5 million cash.
The terms of Royal's winning bid weren't disclosed publicly,
according to a Bloomberg News report. Royal was acquired in 2003
by Hong Kong-based Techtronic Industries Co., the maker of Hoover
vacuum cleaners.
ORMET CORP: Ohio Regulator Says AEP Must Supply Power to Facility
-----------------------------------------------------------------
Stephanie Gleason, writing for DBR Small Cap, reported that Ormet
Corp. received a ruling from the Ohio utility regulator that will
keep the power turned on at its aluminum smelter in Hannibal,
Ohio, which was slated to go black on Nov. 1, preventing arsenic
and cyanide from leaking into the groundwater.
According to the report, the Public Utilities Commission of Ohio,
or PUCO, approved Ormet's request to allow it to prepay weekly for
the minimal amount of electricity drawn by its shuttered smelter,
according to the PUCO order, even though Ormet hasn't paid its
electricity bill for previous months.
"AEP Ohio is, therefore, directed to provide electric service to
Ormet throughout the remainder of Ormet's bankruptcy proceeding,
subject to Ormet's payment for such service, at the applicable
tariff rate, weekly in advance," Ohio's utility commissioners
said, calling Ormet's request "for the purposes of complying with
the U.S. EPA's consent decree" reasonable, the report related.
American Electric Power Co., which supplies electricity to Ormet,
had said Ormet's promise to pay weekly going forward had no
bearing on the fact that it was owed $7.3 million for September
and close to $40 million total, the report further related. It
was demanding payment of $1.4 million, the undisputed portion of
its September bill, to keep the power on.
During a hearing at the U.S. Bankruptcy Court in Wilmington, Del.,
AEP said it could turn the power off on Nov. 1, causing a stir
among the U.S. Environmental Protection Agency officials.
About Ormet Corp.
Aluminum producer Ormet Corporation, along with affiliates, filed
for Chapter 11 protection (Bankr. D. Del. Case No. 13-10334) on
Feb. 25, 2013, with a deal to sell the business to a portfolio
company owned by private investment funds managed by Wayzata
Investment Partners LLC.
Headquartered in Wheeling, West Virginia, Ormet --
http://www.ormet.com/-- is a fully integrated aluminum
manufacturer, providing primary metal, extrusion and thixotropic
billet, foil and flat rolled sheet and other products.
Ormet disclosed assets of $406.8 million and liabilities totaling
$416 million. Secured debt of about $180 million includes $139.5
million on a secured term loan and $39.3 million on a revolving
credit.
Affiliates that separately filed Chapter 11 petitions are Ormet
Primary Aluminum Corporation; Ormet Aluminum Mill Products
Corporation; Specialty Blanks Holding Corporation; and Ormet
Railroad Corporation.
Ormet emerged from a prior bankruptcy in April 2005. Lender
Wayzata Investment Partners LLC is among existing owners. Others
are UBS Willow Fund LLC and Fidelity Leverage Company Stock Fund.
In the 2013 case, Ormet is represented in the case by Morris,
Nichols, Arsht & Tunnell LLP's Erin R. Fay, Esq., Robert J.
Dehney, Esq., Daniel B. Butz, Esq.; and Dinsmore & Shohl LLP's Kim
Martin Lewis, Esq., Patrick D. Burns, Esq. Kurtzman Carson
Consultants is the claims and notice agent. Evercore's Lloyd
Sprung and Paul Billyard serve as investment bankers to the
Debtor.
An official committee of unsecured creditors was appointed in the
case in March 2013. The Committee is represented by Rafael X.
Zahralddin, Esq., Shelley A. Kinsella, Esq., and Jonathan M.
Stemerman, Esq., at Elliott Greenleaf; and Sharon Levine, Esq., S.
Jason Teele, Esq., and Cassandra M. Porter, Esq., at Lowenstein
Sandler LLP.
PATRIOT COAL: Aims to Secure $576MM Bankruptcy-Exit Loan
--------------------------------------------------------
Jacqueline Palank, writing for Daily Bankruptcy Review, reported
that Patriot Coal Corp. on Oct. 30 said it has reached preliminary
deals to secure $576 million in bankruptcy-exit financing.
According to the report, in papers filed with the U.S. Bankruptcy
Court in St. Louis, Patriot requested permission to hire Barclays
Bank PLC and Deutsche Bank AG to arrange and syndicate the
financing, which would help fund Patriot's exit from Chapter 11
protection.
The financing comes on the heels of two other crucial sources of
funding for Patriot's reorganization plans: a $250 million rights
offering, which hedge fund Knighthead Capital Management LLC has
agreed to backstop, and a $310 million settlement with Peabody
Energy Corp., the report related.
"Exit financing is the last essential component for the debtors'
plan and ultimate successful emergence from these Chapter 11
cases," Patriot said in court papers, the report further related.
The exit-financing package, which will later be subject to court
approval, would consist of a $250 million term loan, $125 million
asset-based revolving credit facility and $201 million letter of
credit facility, the report added.
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP serves as lead restructuring counsel.
Bryan Cave LLP serves as local counsel to the Debtors. Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The U.S. Trustee appointed a seven-member creditors committee.
Kramer Levin Naftalis & Frankel LLP serves as its counsel.
Houlihan Lokey Capital, Inc., serves as its financial advisor and
investment banker. Epiq Bankruptcy Solutions, LLC, serves as its
information agent.
On Nov. 27, 2012, the New York bankruptcy judge moved Patriot's
bankruptcy case to St. Louis. The order formally sending the
reorganization to Missouri was signed December 19 by the
bankruptcy judge. The New York Judge in a Jan. 23, 2013 order
denied motions to transfer the venue to the U.S. Bankruptcy Court
for the Southern District of West Virginia.
Patriot Coal Corp., et al., filed with the U.S. Bankruptcy Court
for the Eastern District of Missouri a First Amended Joint Chapter
11 Plan of Reorganization and an explanatory disclosure statement
on Oct. 9, 2013.
PATRIOT COAL: Barclays, Deutsche Bank to Fund Chapter 11 Plan
-------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Patriot Coal Corp. rounded up the final piece of
financing it needs to emerge from a Chapter 11 reorganization
begun 16 months ago.
According to the report, Barclays Bank Plc and Deutsche Bank AG's
New York branch and an affiliate agreed to syndicate $375 million
in loans and a $201 million letter-of-credit facility. The senior
secured loans will consist of a $250 million term loan and a $125
million revolving credit.
The loans are to be approved when the U.S. Bankruptcy Court in St.
Louis conducts a confirmation hearing on the reorganization plan,
the report related. Meanwhile, Patriot is arranging a hearing on
Nov. 6 to seek approval of the engagement agreement with the
lenders and pay their fees.
Patriot filed a revised reorganization plan a week ago and set up
a Nov. 6 hearing for approval of disclosure materials before
creditors are permitted to vote on the plan. The new plan results
from settlements among the unsecured creditors' committee, the
mine workers' union, former parent Peabody Energy Corp. and Arch
Coal Inc.
Part of the plan funding comes from $250 million in two rights
offerings in which Knighthead Capital Management LLC is providing
a backstop by agreeing to buy securities not taken by other
creditors.
Patriot's $200 million in 3.25 percent senior convertible notes
due 2013 last traded on Oct. 18 for 7 cents on the dollar,
according to Trace, the bond-price reporting system of the
Financial Industry Regulatory Authority. The $250 million in 8.25
percent senior unsecured notes due 2018 traded at 3:11 p.m. on
Nov. 1 for 45.25 cents on the dollar.
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP serves as lead restructuring counsel.
Bryan Cave LLP serves as local counsel to the Debtors. Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The U.S. Trustee appointed a seven-member creditors committee.
Kramer Levin Naftalis & Frankel LLP serves as its counsel.
Houlihan Lokey Capital, Inc., serves as its financial advisor and
investment banker. Epiq Bankruptcy Solutions, LLC, serves as its
information agent.
On Nov. 27, 2012, the New York bankruptcy judge moved Patriot's
bankruptcy case to St. Louis. The order formally sending the
reorganization to Missouri was signed December 19 by the
bankruptcy judge. The New York Judge in a Jan. 23, 2013 order
denied motions to transfer the venue to the U.S. Bankruptcy Court
for the Southern District of West Virginia.
Patriot Coal Corp., et al., filed with the U.S. Bankruptcy Court
for the Eastern District of Missouri a First Amended Joint Chapter
11 Plan of Reorganization and an explanatory disclosure statement
on Oct. 9, 2013.
PATRIOT COAL: Files Motions to Assume Leases Or Executory Contract
------------------------------------------------------------------
On Oct. 29, 2013, Patriot Coal Corporation, et al., filed with the
U.S. Bankruptcy Court for the Eastern District of Missouri motions
for the entry of orders:
1) authorizing assumption of unexpired lease and approving
settlement of claims of Caterpillar Financing Services
Corporation;
2) authorizing assumption of executory contract and approving
settlement of claim of Michelin North America, Inc.;
3) authorizing assumption of certain unexpired leases and
guaranty and approving settlement of claims of BancorpSouth
Equipment Finance;
4) authorizing assumption of certain unexpired leases and
guaranty and approving settlement of claims of CapitalSource Bank;
and
5) authorizing assumption of certain unexpired leases and
guaranty and approving settlement of claims of General Electric
Capital Corporation.
The hearing on the motions is scheduled for Nov. 19, 2013, at
10:00 a.m.
Copies of the Motions are available at:
http://bankrupt.com/misc/patriotcoal.doc4892.pdf
http://bankrupt.com/misc/patriotcoal.doc4893.pdf
http://bankrupt.com/misc/patriotcoal.doc4894.pdf
http://bankrupt.com/misc/patriotcoal.doc4895.pdf
http://bankrupt.com/misc/patriotcoal.doc4896.pdf
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP serves as lead restructuring counsel.
Bryan Cave LLP serves as local counsel to the Debtors. Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The U.S. Trustee appointed a seven-member creditors committee.
Kramer Levin Naftalis & Frankel LLP serves as its counsel.
Houlihan Lokey Capital, Inc., serves as its financial advisor and
investment banker. Epiq Bankruptcy Solutions, LLC, serves as its
information agent.
On Nov. 27, 2012, the New York bankruptcy judge moved Patriot's
bankruptcy case to St. Louis. The order formally sending the
reorganization to Missouri was signed December 19 by the
bankruptcy judge. The New York Judge in a Jan. 23, 2013 order
denied motions to transfer the venue to the U.S. Bankruptcy Court
for the Southern District of West Virginia.
Patriot Coal Corp., et al., filed with the U.S. Bankruptcy Court
for the Eastern District of Missouri a First Amended Joint Chapter
11 Plan of Reorganization and an explanatory disclosure statement
on Oct. 9, 2013.
Patriot Coal Corp. et al., filed on Oct. 27, 2013, a new plan
which incorporates agreements that the Creve Coeur-based coal
producer reached with the unsecured creditors committee as well as
with the United Mine Workers of America.
PATRIOT COAL: Alpha Natural Files Limited Objection to Disclosures
------------------------------------------------------------------
Alpha Natural Resources, Inc., and certain of its subsidiary filed
a limited objection to debtors Patriot Coal Corporation, et al.'s
motion to approve the Disclosure Statement for the Debtors' First
Amended Joint Plan of Reorganization dated Oct. 9, 2013.
Alpha explains: "The Disclosure Statement must be clarified to
provide meaningful disclosure on the treatment of certain
executory contracts and unexpired leases that are the subject of
an Adversary Proceeding between the Debtors and Alpha subsidiaries
Boone East Development Company ("Boone"), Performance Coal
Company, and New River Energy Corporation (collectively, the
"Alpha Entities"). That Adversary Proceeding concerns the
Debtors' ability to independently assume a lease without assuming
a suite of other agreements of even date addressing the same real
property and related transactions. While the Disclosure Statement
explains that such Alpha Agreements are carved out from the
automatic rejection otherwise provided for in the Plan, it does
not explain their treatment relative to the Court's determination
of the Adversary Proceeding. While the Debtors have sought to
assume the Boone Lease, there will not be a final determination on
the integration of the Boone Lease with the other Alpha Agreements
until after confirmation. As such, the Disclosure Statement must
clarify that, in the event of a final determination that the Boone
Lease is so integrated, the Debtors' decision to assume the Boone
Lease applies with equal force to the integrated Alpha Agreements.
If instead, the Debtors intend to preserve an option, based on the
outcome of the Adversary Proceeding, to somehow reverse course and
reject the Boone Lease post-confirmation, the Plan is contrary to
the plain requirements of Section 365(d) and in this limited
respect, is non-confirmable on its face.
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP serves as lead restructuring counsel.
Bryan Cave LLP serves as local counsel to the Debtors. Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The U.S. Trustee appointed a seven-member creditors committee.
Kramer Levin Naftalis & Frankel LLP serves as its counsel.
Houlihan Lokey Capital, Inc., serves as its financial advisor and
investment banker. Epiq Bankruptcy Solutions, LLC, serves as its
information agent.
On Nov. 27, 2012, the New York bankruptcy judge moved Patriot's
bankruptcy case to St. Louis. The order formally sending the
reorganization to Missouri was signed December 19 by the
bankruptcy judge. The New York Judge in a Jan. 23, 2013 order
denied motions to transfer the venue to the U.S. Bankruptcy Court
for the Southern District of West Virginia.
Patriot Coal Corp., et al., filed with the U.S. Bankruptcy Court
for the Eastern District of Missouri a First Amended Joint Chapter
11 Plan of Reorganization and an explanatory disclosure statement
on Oct. 9, 2013.
Patriot Coal Corp. et al., filed on Oct. 27, 2013, a new plan
which incorporates agreements that the Creve Coeur-based coal
producer reached with the unsecured creditors committee as well as
with the United Mine Workers of America.
PATRIOT COAL: Asks Court's OK to Enter Into Exit Financing Papers
-----------------------------------------------------------------
Patriot Coal Corporation, et al., ask the U.S. Bankruptcy Court
for the Eastern District of Missouri for authorization, in
connection with their efforts to obtain exit financing, to:
(a) enter into (i) a Facilities Engagement Letter with Barclays
Bank PLC, Deutsche Bank AG New York Branch ("DBNY") and Deutsche
Bank Securities Inc. ("DBSI" and together with DBNY, "DB", DB
together with Barclays, the "Facilities Parties"), (ii) a
Facilities Fee Letter with the Facilities Parties (the "Facilities
Fee Letter" and together with the Facilities Engagement Letter,
the "Facilities Engagement Documents"), (iii) an engagement letter
(the "L/C Engagement Letter" and together with the Facilities
Engagement Letter, the "Engagement Letters") with Barclays
(Barclays, in its capacity as an engagement party under the L/C
Engagement Letter and its other capacities described therein,
together with the Facilities Parties, the "Engagement Parties")
and (iv) a fee letter with Barclays (the "L/C Fee Letter" and
together with the Facilities Fee Letter, the "Fee Letters" and
collectively with the Facilities Engagement Documents and the L/C
Engagement Letter, the "Engagement Documents");
(b) incur and pay associated fees and expenses in connection
with the Engagement Documents; and
(c) furnish related indemnities.
The Debtors explain:
"1. As more fully set forth in the Disclosure Statement for the
Debtors' Second Amended Joint Plan of Reorganization under Chapter
11 of the Bankruptcy Code, [ECF No. 4870], the Debtors have made
substantial progress toward emergence from Chapter 11. In
addition to the Debtors' successful restructuring efforts over the
past fifteen months since the Petition Date, in the past two
months, the Debtors have secured junior financing through
committed rights offerings backstopped by Knighthead Capital
Management LLC, solely on behalf of certain funds and accounts it
manages and/or advises, and reached two global settlements with
Peabody Energy Corporation and the United Mine Workers of America
and Arch Coal, Inc., respectively. The rights offerings will
provide the Debtors with $250 million of capital, and the
settlements with Peabody and the UMWA and Arch will provide the
Debtors with over $175 million in incremental liquidity and
value. Moreover, as a result of the rights offerings and the
settlement with Peabody, the UMWA Voluntary Employee Benefit
Association is expected to receive more than $400 million in cash
over the next four years, all of which will facilitate the
Debtors' satisfaction of certain conditions required by the
Debtors' labor agreements with the UMWA, which are expected to
provide the Debtors with labor stability and critically needed
savings of approximately $130 million annually over the next five
years. In addition, the foregoing transactions provide for post
emergence liquidity of at least $275 million.
"2. The Debtors are now well-positioned to complete the last
critical step of their restructuring plan: securing senior exit
financing in order to fund the Debtors' obligations under
the Debtors' Second Amended Joint Plan of Reorganization under
Chapter 11 of the Bankruptcy Code [ECF No. 4869] (as may be
amended or modified from time to time, the "Plan") and provide
sufficient working capital to the reorganized Debtors upon
emergence from Chapter 11. Indeed, during the past few weeks, the
Debtors, with the assistance of their investment banker,
Blackstone Advisory Partners, L.P., have engaged in an extensive
process to obtain exit financing proposals from various financial
institutions. After reviewing several proposals and negotiating
with the parties, the Debtors have selected the Engagement Parties
to structure, arrange and, as applicable, syndicate: (a) an exit
senior secured Term Loan Facility in an aggregate principal amount
of $250,000,000; (b) an exit senior secured asset-based revolving
credit facility in an aggregate principal amount of $125,000,000
(the "ABL Facility"); and (c) a letter of credit facility in an
aggregate amount not to exceed $201,000,000 (the "L/C Facility"
and, together with the Term Loan Facility and the ABL Facility,
the "Exit Facilities").
3. The Debtors will request approval of the Exit Facilities in
connection with confirmation of the Plan. Nevertheless, given the
significant efforts that will need to be expended prior to
confirmation in connection with the arrangement and syndication
process, the Engagement Parties have requested that the Debtors
seek immediate Court approval of the Debtors' entry into the
Engagement Documents.
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP serves as lead restructuring counsel.
Bryan Cave LLP serves as local counsel to the Debtors. Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The U.S. Trustee appointed a seven-member creditors committee.
Kramer Levin Naftalis & Frankel LLP serves as its counsel.
Houlihan Lokey Capital, Inc., serves as its financial advisor and
investment banker. Epiq Bankruptcy Solutions, LLC, serves as its
information agent.
On Nov. 27, 2012, the New York bankruptcy judge moved Patriot's
bankruptcy case to St. Louis. The order formally sending the
reorganization to Missouri was signed December 19 by the
bankruptcy judge. The New York Judge in a Jan. 23, 2013 order
denied motions to transfer the venue to the U.S. Bankruptcy Court
for the Southern District of West Virginia.
Patriot Coal Corp., et al., filed with the U.S. Bankruptcy Court
for the Eastern District of Missouri a First Amended Joint Chapter
11 Plan of Reorganization and an explanatory disclosure statement
on Oct. 9, 2013.
Patriot Coal Corp. et al., filed on Oct. 27, 2013, a new plan
which incorporates agreements that the Creve Coeur-based coal
producer reached with the unsecured creditors committee as well as
with the United Mine Workers of America.
POLYMER GROUP: S&P Affirms 'B' CCR and Removes It From CreditWatch
------------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed all its
ratings on Polymer Group Inc., including its 'B' corporate credit
rating. S&P removed the ratings from CreditWatch where it had
placed them with negative implications on Aug. 21, 2013, upon
announcement of Polymer Group's offer to acquire Fiberweb. The
outlook is negative.
The affirmation indicates S&P's expectation that the Fiberweb
acquisition, which will increase Polymer Group's revenues by more
than 35%, will modestly improve its business risk profile by
broadening its product offering into niche applications such as
pool filtration and dryer sheets and increasing its position
within housewrap. The transaction should reduce Polymer Group's
reliance on hygiene markets, which have become increasingly
commoditized and in which pricing power has eroded in some regions
and product categories. It should also offer opportunities for
EBITDA margin improvement through synergies, which S&P believes
will be significant. Nevertheless, industry overcapacity and
volatile raw material costs are likely to pose continuing
challenges.
"We would lower the ratings if Polymer Group has difficulty
integrating the large Fiberweb acquisition or fails to achieve the
substantial synergies that we expect, if this causes debt to pro
forma EBITDA to remain above 6x. We would also lower the ratings
if leverage stays above 6x because of other operating problems, an
inability to pass on raw material cost increases, higher-than-
expected capital spending, or another acquisition in the near
term," said Standard & Poor's credit analyst Cynthia Werneth.
Less-than-adequate liquidity would also result in a downgrade. On
the other hand, S&P could revise the outlook to stable if
integration of the acquired operations goes smoothly, market and
operating trends are favorable, prospects are good that the
company can achieve and maintain leverage below 6x, and liquidity
remains adequate.
PORTER BANCORP: Incurs $168,000 Net Loss in Third Quarter
---------------------------------------------------------
Porter Bancorp, Inc., reported a net loss available to common
shareholders of $168,000 on $7.84 million of net interest income
for the three months ended Sept. 30, 2013, as compared with a net
loss available to common shareholders of $26.94 million on $10.13
million of net interest income for the same period during the
prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss available to common shareholders of $2.35 million on
$24.49 million of net interest income as compared with a net loss
available to common shareholders of $26.43 million on $32.38
million of net interest income for the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $1.03
billion in total assets, $1 billion in total liabilities and
$37.11 million in stockholders' equity.
At Sept. 30, 2013, PBI Bank's Tier 1 leverage ratio was 6.40%
compared with 6.08% at June 30, 2013, and its Total risk-based
capital ratio was 11.04% at Sept. 30, 2013, compared with 10.60%
at June 30, 2013, which are below the minimums of 9.0% and 12.0%
required by the Bank's Consent Order. At Sept. 30, 2013, Porter
Bancorp's leverage ratio was 5.15% compared with 4.91% at June 30,
2013, and its Total risk-based capital ratio was 10.78% compared
with 10.46% at June 30, 2013.
"We are continuing our efforts to strengthen our capital levels
and comply with the Consent Order," the Company said in a press
release. "Management and the Board of Directors are evaluating
appropriate strategies for increasing the Company's capital in
order to meet the capital requirements of our Consent Order.
These include, among other things, a possible public offering or
private placement of common stock to new and existing
shareholders. As previously announced, we have engaged a
financial advisor to assist our Board in this evaluation."
A copy of the press release is available for free at:
http://is.gd/PzEnmx
About Porter Bancorp
Porter Bancorp, Inc., is a bank holding company headquartered in
Louisville, Kentucky. Through its wholly-owned subsidiary PBI
Bank, the Company operates 18 full-service banking offices in
12 counties in Kentucky.
Crowe Horwath, LLP, in Louisville, Kentucky, 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 incurred substantial losses in 2012, 2011 and
2010, largely as a result of asset impairments. In addition, the
Company's bank subsidiary is not in compliance with a regulatory
enforcement order issued by its primary federal regulator
requiring, among other things, increased minimum regulatory
capital ratios. Additional significant asset impairments or
continued failure to comply with the regulatory enforcement order
may result in additional adverse regulatory action. These events
raise substantial doubt about the Company's ability to continue as
a going concern.
QUANTUM FUEL: Seamans Capital Held 7.2% Equity Stake at Oct. 30
---------------------------------------------------------------
In an amended Schedule 13G filed with the U.S. Securities and
Exchange Commission, Seamans Capital Management, LLC, disclosed
that as of Oct. 30, 2013, it beneficially owned 1,156,500 shares
of common stock of Quantum Fuel Systems Technologies, Inc.,
representing 7.2 percent of the shares outstanding. Seamans
Capital previously disclosed beneficial ownership of 6.5 percent
equity stake as of Oct. 24, 2013. A copy of the regulatory filing
is available for free at http://is.gd/QYn13Z
About Quantum Fuel
Lake Forest, Cal.-based Quantum Fuel Systems Technologies
Worldwide, Inc. (Nasdaq: QTWW) develops and produces advanced
vehicle propulsion systems, fuel storage technologies, and
alternative fuel vehicles. Quantum's portfolio of technologies
includes electronic and software controls, hybrid electric drive
systems, natural gas and hydrogen storage and metering systems and
other alternative fuel technologies and solutions that enable fuel
efficient, low emission, natural gas, hybrid, plug-in hybrid
electric and fuel cell vehicles.
Quantum Fuel disclosed a net loss attributable to stockholders of
$30.91 million in 2012 and a net loss attributable to common
stockholders of $38.49 million in 2011. The Company's balance
sheet at March 31, 2013, showed $58.40 million in total assets,
$49.77 million in total liabilities and $8.62 million in total
stockholders' equity.
Haskell & White LLP, in Irvine, California, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2012. The independent auditors noted
that the Company does not have sufficient existing sources of
liquidity to operate its business and service its debt obligations
for a period of at least twelve months. These conditions, along
with the Company's working capital deficit and recurring operating
losses, raise substantial doubt about the Company's ability to
continue as a going concern.
RECEPTOS INC: Reports $15.56-Mil. Net Loss in Q3 Ended Sept. 30
---------------------------------------------------------------
Receptos, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting a net loss
of $15.56 million on $1.14 million of revenues for the three
months ended Sept. 30, 2013, compared to a net loss of $6 million
on $1.79 million of revenues for the same period last year.
The Company's balance sheet at Sept. 30, 2013, showed $82.1
million in total assets, $17.4 million in total liabilities, and
stockholders' equity of $64.7 million.
A copy of the Form 10-Q is available at:
http://is.gd/D5hUZ4
About Receptos
San Diego, Calif.-based Receptos, Inc., is a biopharmaceutical
company focused on discovering, developing and commercializing
innovative therapeutics in immune disorders.
RHYTHM & BLUES: Dec. 13 Combined Hearing on Liquidating Plan
------------------------------------------------------------
On Oct. 22, 2013, the U.S. Bankruptcy Court for the Central
District of California entered an amended order setting a combined
hearing on the approval of the Disclosure Statement and
confirmation of the Joint Chapter 11 Plan of Liquidation filed by
AWTR Liquidation, Inc., f/k/a Rhythm and Hues, Inc., and the
Official Committee of Unsecured Creditors dated Sept. 24, 2013.
The combined hearing will be held on Dec. 13, 2013, at Courtroom
1545, Edward F. Roybal Fed. Bldg., at 255 E. Temple Street, in Los
Angeles, California.
The Court set these deadlines:
-- Nov. 27, 2013, is the deadline for (a) ballots to be
received, including by email or facsimile delivery (at the
address, email or fax number listed in the ballot), and (b)
objections to be served and filed with the Bankruptcy Court,
either electronically or at the Clerk's Office, U.S. Bankruptcy
Court at 255 E. Temple Street, 9th Floor, Los Angeles, CA 90012.
-- Dec. 9, 2013, is the deadline for Debtor to serve and file
responses to any objections to the Plan or to the Disclosure
Statement, and to file a proof of service of the Voting
Package.
-- Dec. 9, 2013, is the deadline for Debtor to file a ballot
summary per Local Bankruptcy Rule 3018-1, as well as any
declarations in support of confirmation of the Plan.
As reported in the TCR on Oct. 3, 2013, under the Plan, all
holders of claims against the Debtors, excluding administrative
claims, ordinary course administrative claims, professional fee
claims, U.S. Trustee Fees, and priority claims, are impaired and
are entitled to vote. Holders of general unsecured claims will
each become a holder of a liquidation trust interest and will
receive from the Liquidation Trust a Pro Rata share of the
Liquidation Net Proceeds based on the amount of the Liquidation
Trust Interest to the extent provided in the Plan.
A full-text copy of the Disclosure Statement, dated Sept. 24,
2013, is available at http://bankrupt.com/misc/RHYTHMds0924.pdf
About Rhythm and Hues
Rhythm and Hues, Inc., aka Rhythm and Hues Studios Inc., filed its
Chapter 11 petition (Bankr. C.D. Cal. Case No. 13-13775) in Los
Angeles on Feb. 13, 2013, estimating assets ranging from $10
million to $50 million and liabilities ranging from $50 million to
$100 million. Judge Neil W. Bason oversees the case. Brian L.
Davidoff, Esq., C. John M Melissinos, Esq., and Claire E. Shin,
Esq., at Greenberg Glusker, serve as the Debtor's counsel.
Houlihan Lokey Capital Inc., serves as investment banker.
The petition was signed by John Patrick Hughes, president and CFO.
The Debtor was one of the world's leading producers of visual
effects ("VFX") and computer-generated ("CG") animation for the
entertainment industry. The Debtor contributed to more than 150
feature films and received numerous industry awards and accolades
for its work, including Academy Awards (Best Visual Effects) for
Babe and The Golden Compass, an Academy Award nomination for
The Chronicles of Narnia, and Technical Achievement Academy Awards
in 1994, 1998, 2008, and 2010. In February 2013, the Debtor won
an Academy Award for the special effects it created for the film
Life of Pi.
Key clients Universal City Studios LLC and Twentieth Century Fox,
a division of Twentieth Century Fox Film Corporation, provided DIP
financing. They are represented by Jones Day's Richard L. Wynne,
Esq., and Lori Sinanyan, Esq.
The Official Committee of Unsecured Creditors tapped Stutman,
Treister & Glatt Professional Corporation as its counsel.
At the end of March 2013, the Debtor sold the business to 34x118
Holdings Inc., an affiliate of competitor Prana Studios Inc. The
buyer agreed to pay $1.2 million cash, take over payment of the
loan financing the Chapter 11 effort, pay defaults on contracts
going along with the sale, and assume liabilities to employees for
as much as $5 million. On May 24, 2013, the Debtor obtained Court
permission to change its corporate name to AWTR Liquidation, Inc.
SEMGROUP LP: Sides With Barclays in Trustee's $143MM Fee Appeal
---------------------------------------------------------------
Law360 reported that the U.S. Securities and Exchange Commission
on Oct. 31 urged the Second Circuit not to revive a $143 million
suit brought by creditors of formerly bankrupt petroleum company
SemGroup LP against Barclays Bank PLC, arguing that doing so would
undo key safe-harbor protections in the Bankruptcy Code.
According to the report, SemGroup's litigation trustee, Bettina
Whyte, appealed her case to the panel in July -- arguing that she
had the right to claw back a $143 million transfer entered before
SemGroup went bankrupt.
The appellate case is Whyte v. Barclays Bank PLC, Case No. 13-2653
(2d. Cir.).
About SemGroup, L.P.
SemGroup, L.P. -- http://www.semgrouplp.com/-- is a midstream
service company that provides diversified services for end users
and consumers of crude oil, natural gas, natural gas liquids and
refined products. Services include purchasing, selling,
processing, transporting, terminalling and storing energy.
SemGroup serves customers in the United States, Canada, Mexico and
Wales.
SemGroup L.P. and its debtor-affiliates filed for Chapter 11
protection (Bankr. D. Del. Case No. 08-11525) on July 22, 2008.
John H. Knight, Esq., L. Katherine Good, Esq. and Mark
D. Collins, Esq., at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq., and Sherri L. Toub, Esq., at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq., and Sylvia A.
Mayer, Esq., at Weil Gotshal & Manges LLP, represented the Debtors
in their restructuring efforts. Kurtzman Carson Consultants
L.L.C. served as the Debtors' claims agent. The Blackstone Group
L.P. and A.P. Services LLC acted as the Debtors' financial
advisors.
Margot B. Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye
Scholer LLP; and Laurie Selber Silverstein, Esq., at Potter
Anderson & Corroon LLP, represented the Debtors' prepetition
lenders.
SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude
Company, sought protection under the Companies' Creditors
Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc.,
is the appointed monitor of SemCanada Crude Company and its
affiliates' reorganization proceedings before the Canadian
Companies' Creditors Arrangement Act.
SemGroup LP won confirmation from the Bankruptcy Court of its
Fourth Amended Plan of Reorganization on Oct. 28, 2008. The
Plan, which distributed more than $2.5 billion in value to
stakeholders, was declared effective on Nov. 30, 2008.
As part of the Plan, the Reorganized Debtors entered into two new
credit facilities aggregating $625 million in financing; entered
into a $300 million Second Lien Term Facility; created a new
corporate structure, including issuing shares of common stock and
warrants; and distributed approximately $500 million of cash and
approximately $1 billion in value of new common stock and warrants
to thousands of creditors in accordance with the Plan.
SPIN HOLDCO: S&P Affirms 'B' Corp. Credit Rating; Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed all of its ratings on
Plainview, N.Y.-based Spin Holdco Inc. (doing business as CSC
ServiceWorks), including its 'B' corporate credit rating and 'B+'
first-lien debt rating. The outlook is stable.
The recovery rating on the first-lien debt (which includes the
existing $75 million revolving credit facility and upsized
$1.255 billion term loan) remains unchanged at '2', indicating
S&P's expectation that lenders could expect substantial (70% to
90%) recovery in the event of a payment default. The ratings are
subject to change and assume the transaction closes on
substantially the terms presented to S&P. Total debt outstanding
pro forma for the proposed transaction is about $1.6 billion.
"We believe Spin Holdco's market position and technology
capabilities will improve as a result of the acquisition, and that
the combined company should realize synergies and improve credit
measures over the next 12 to 24 months," said Standard & Poor's
credit analyst Jerry Phelan. "However, the reduced cushion under
the revolving credit facility's springing financial covenant
affects our liquidity assessment."
The ratings on Spin Holdco reflect Standard & Poor's view of the
company's financial sponsor's demonstrated aggressive acquisition
appetite and usage of debt, notwithstanding its sizable equity and
second-lien term loan investments in the company. S&P could lower
the ratings if the springing financial covenant is in effect and
it projects covenant cushion will be sustained in the mid-single-
digit area or lower, or if credit ratios deteriorate meaningfully,
including leverage around 7x. Although less likely, S&P could
raise the ratings if it forecasts financial covenant cushion in
excess of 15% and if it believes credit ratios will be sustained
at levels more consistent with an "aggressive" financial risk
profile, including maintaining leverage below 5x.
STRATUM HOLDINGS: Posts $51K Net Loss in Q3 Ended Sept. 30
----------------------------------------------------------
Stratum Holdings, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, disclosing
a net loss of $51,346 on $610,351 of total revenues for the three
months ended Sept. 30, 2013, compared with a net loss of $173,480
on $709,669 of total revenues for the same period last year.
The Company's balance sheet at Sept. 30, 2013, showed $6.84
million in total assets, $5.39 million in total liabilities and
total stockholders' equity of $1.45 million
A copy of the Form 10-Q is available at:
http://is.gd/jfgZh5
About Stratum Holdings
Houston-based Stratum Holdings, Inc., is a holding company whose
operations are presently focused on the domestic Exploration &
Production business. In that business, the Company's wholly-owned
subsidiaries, CYMRI, L.L.C., and Triumph Energy, Inc., maintain
working interests in approximately 45 to 50 producing oil and gas
wells in Texas and Louisiana, with net production of approximately
700 MCF equivalent per day.
TLO LLC: Files Liquidating Plan With Auction Set for Nov. 20
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that TLO LLC, a provider of risk-mitigation services,
filed a proposed liquidating Chapter 11 plan on Oct. 31 as
exclusive plan-filing rights were expiring.
According to the report, the company already arranged an auction
on Nov. 20 to determine whether a $105 million cash offer from
TransUnion Holding Co. is the best offer for the business. The
sale-approval hearing will take place two days later in West Palm
Beach, Florida. In a statement, the company said it expects
several bidders.
The plan in substance provides for distributing assets according
to priorities laid out in bankruptcy law, with unsecured creditors
taking what's left after secured creditors and those with
priorities are fully paid. Boca Raton, Florida-based TLO's
stockholders will receive a dividend if creditors are fully paid.
The bulk of the assets for distribution will represent proceeds of
the sale and recoveries from a $40 million policy on the life of
founder Hank Asher, who died this year before the bankruptcy. The
policy and the claim against the insurance company aren't being
sold. The insurance company has contended it's not obligated to
pay the death benefit.
The disclosure statement explaining the plan doesn't project the
percentage recovery by secured and unsecured creditors.
TLO filed for Chapter 11 protection in May. The bankruptcy is
being financed with a $5 million secured loan supplied by the
deceased founder's daughters.
TLO listed assets of $46.6 million and debt totaling $109.9
million, including $93.4 million in secured claims.
The principal lender, Technology Investors Inc., was owed $89
million at the outset of bankruptcy. TII is owned by Asher's
estate. On behalf of the lender, Asher's daughters made a
settlement that will carve out $1 million from secured lenders'
recoveries as an initial distribution for unsecured creditors.
There is $4.6 million secured by computer equipment.
About TLO LLC
TLO LLC, a provider of risk-mitigation services, filed a petition
for Chapter 11 reorganization (Bankr. S.D. Fla. Case No.
13-bk20853) on May 9, 2013, in West Palm Beach, Florida, near the
company's headquarters in Boca Raton. The petition was signed by
E. Desiree Asher as CEO.
Judge Paul G. Hyman, Jr., presides over the case. Robert C. Furr,
Esq., and Alvin S. Goldstein, Esq., at Furr & Cohen, serve as the
Debtor's counsel. Bayshore Partners, LLC is the Debtor's
investment banker. Thomas Santoro and GlassRatner Advisory &
Capital Group, LLC are the Debtor's financial advisors.
Paul J. Battista, Esq., and Mariaelena Gayo-Guitian, Esq., at
Genovese, Joblove & Battista, P.A., represent the Official
Committee of Unsecured Creditors as counsel.
The Debtor disclosed assets of $46.6 million and liabilities of
$109.9 million, including $93.4 million in secured claims. The
principal lender is Technology Investors Inc., owed $89 million.
TII is owned by the estate of Hank Asher, the company's primary
owner who died this year. There is $4.6 million secured by
computer equipment.
TMT GROUP: Accused of Iranian Oil Trafficking by Ch. 11 Creditor
----------------------------------------------------------------
Law360 reported that one of TMT Group's largest creditors told a
Texas bankruptcy judge on Nov. 1 that the company is putting its
entire fleet at risk by secretly trafficking oil exports from
Iran, saying the court should throw out TMT's Chapter 11 case or
appoint a trustee to protect the ships.
According to the report, Cathay United Bank Co. Ltd. said in a
brief filed late Nov. 1 that after TMT filed for bankruptcy in the
U.S., one of its ships known as the M/V B Whale quietly
rendezvoused with an Iranian tanker.
About TMT Group
Known in the industry as TMT Group, TMT USA Shipmanagement LLC and
its affiliates own 17 vessels. Vessels range in size from
approximately 27,000 dead weight tons (dwt) to approximately
320,000 dwt.
TMT USA and 22 affiliates, including C. Ladybug Corporation,
sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13-
33740) in Houston, Texas, on June 20, 2013 after lenders seized
seven vessels.
TMT has tapped attorneys from Bracewell & Giuliani LLP and
AlixPartners as financial advisors.
On a consolidated basis, the Debtors have $1.52 billion in assets
and $1.46 billion in liabilities.
TMT already filed a lawsuit in U.S. bankruptcy court aimed at
forcing creditors to release the vessels so they can return to
generating income.
TNP STRATEGIC: Dec. 23 Class Action Lead Plaintiff Deadline Set
---------------------------------------------------------------
The law firm of Lieff Cabraser Heimann & Bernstein, LLP on
Nov. 1 disclosed that investors have until December 23, 2013 to
move for appointment as lead plaintiff in securities class action
litigation brought on behalf of investors who purchased or
otherwise acquired the common shares of TNP Strategic Retail
Trust, Inc. between September 23, 2010 and February 7, 2013, in or
traceable to the Company's initial public offering ("IPO").
If you purchased or otherwise acquired the common shares of TNP
during the Offering Period, you may move the Court for appointment
as lead plaintiff by no later than December 23, 2013. A lead
plaintiff is a representative party who acts on behalf of other
class members in directing the litigation. Your share of any
recovery in the action will not be affected by your decision of
whether to seek appointment as lead plaintiff. You may retain
Lieff Cabraser, or other attorneys, as your counsel in the action.
TNP investors who wish to learn more about the action and how to
seek appointment as lead plaintiff should click here or contact
Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the TNP Securities Class Litigation
The complaint alleges that the Company, its affiliates Thompson
National Properties, LLC, TNP Strategic Retail Advisor, LLC, and
TNP Securities, LLC, and certain of the Company's current or
former officers and directors violated Sections 11, 12(a)(2),
and/or 15 of the Securities Act of 1933. The complaint alleges,
among other things, that the offering materials provided to
investors in the IPO contained material misrepresentations and
omissions about the financial health of the Company and its
affiliates, as well as about the performance of earlier real
estate programs sponsored by the Company's affiliates.
TNP disclosed on January 16, 2013 that it had defaulted both on a
$29 million loan that its CEO and Chairman had personally and
unconditionally guaranteed, and on its $45 million revolving
credit facility.
On August 28, 2013, the Company announced that a board-level
"Special Committee" had been formed a year earlier, during the
Offering Period, "for the protection of shareholders" after one of
the Company's affiliates was found to be paying fees to itself
that had not been earned. The Company also announced that its
affiliates had defaulted on certain corporate debt obligations and
had sustained significant losses. In the wake of these
disclosures, the TNP replaced its CEO and Chairman and terminated
its relationship with its affiliates. The Company also disclosed
that the Financial Industry Regulatory Authority ("FINRA") had
brought an action against TNP's CEO and Chairman and TNP
Securities for misleading investors in earlier real estate
programs touted in the Company's IPO offering materials.
About Lieff Cabraser
With offices in San Francisco, New York, and Nashville, Lieff
Cabraser Heimann & Bernstein, LLP -- http://www.lieffcabraser.com
-- is a nationally recognized law firm committed to advancing the
rights of investors and promoting corporate responsibility. Each
year since 2003, the National Law Journal has selected Lieff
Cabraser as one of the top plaintiffs' law firms in the nation.
About TNP
TNP -- http://www.tnpre.com-- is a real estate advisory company,
specializing in acquisitions for high net worth investors and
their joint venture partners, along with 3rd party property
management, asset management and receivership advisory services.
Headquartered in Costa Mesa, California, TNP was founded in April
2008 and has three regional offices. As of August 16, 2013, TNP
manages a portfolio of 106 commercial properties, in 24 states,
totaling approximately 11.02 million square feet, on behalf of
over 6,000 investor/owners/lenders with an overall purchase value
of $1.2 billion.
About TNP Strategic
TNP Strategic Retail Trust, Inc., was formed on Sept. 18, 2008, as
a Maryland corporation. The Company believes it qualifies as a
real estate investment trust under the Internal Revenue Code of
1986, as amended, and has elected REIT status beginning with the
taxable year ended Dec. 31, 2009, the year in which the Company
began material operations. The Company was initially capitalized
by the sale of 22,222 shares of common stock for $200,000 to
Thompson National Properties, LLC, on Oct. 16, 2008.
TNP Strategic's balance sheet at Sept. 30, 2012, showed $272.33
million in total assets, $197.98 million in total liabilities and
$74.34 million in total equity.
The Company reported a net loss of $11.63 million for the nine
months ended Sept. 30, 2012, compared with a net loss of
$4.39 million for the same period a year ago.
UNIQUE BROADBAND: Court Grants Leave for Appeal of Disputed Claims
------------------------------------------------------------------
Further to the company Unique Broadband Systems, Inc.'s press
release dated May 22, 2013 where it was disclosed that certain,
but not all, of the claims of Jolian Investments Limited and Mr.
Gerald McGoey were disallowed in connection with the Company's
ongoing CCAA proceedings, Unique Broadband Systems, Inc. on Nov. 4
disclosed that the Honourable Mr. Justice Doherty of the Ontario
Court of Appeal released an Endorsement dated October 31, 2013,
granting leave to the Company to appeal the Judgment of the
Honourable Madam Justice Mesbur in which she found that Jolian was
entitled to an "enhanced severance" payment as a result of the
termination of its contract with UBS.
The Company is proceeding with filing the required notice of
appeal and perfecting the appeal.
About Unique Broadband Systems, Inc.
Unique Broadband Systems, Inc. -- http://www.uniquebroadband.com/
-- is a Canadian-based company with holdings in Look
Communications and a continuing business interest with Unique
Broadband Systems Ltd.
UNITED CONTINENTAL: Moody's Rates $300MM Sr. Secured Notes 'B2'
---------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to the $300 million
of new senior unsecured notes due December 1, 2020 to be issued by
United Continental Holdings, Inc. ("UAL"). United Airlines, Inc.
will guarantee the Notes on an unsecured basis. The Corporate
Family rating of UAL is B2. The rating outlook is stable.
Ratings Rationale:
The B2 Corporate Family rating considers UAL's good liquidity,
leading market position and credit metrics that remain somewhat
weak relative to the cross-industry medians for the B2 rating
category. The ratings anticipate that UAL will sustain good
liquidity notwithstanding expected negative free cash flow
generation in at least the next two years because of higher
capital expenditures for new aircraft and other capital
investments while it pursues stronger traffic performance and
yields. Moody's believes that UAL is likely to experience
continuing pressure on operating cash flow in upcoming quarters
because of increasing competitive pressure in its Pacific
operations as Asian carriers add capacity within Asia as well as
across the Pacific while global economic growth remains lackluster
and the yen remains weak. However, UAL will carefully manage
capacity to limit any such pressure.
The stable outlook reflects Moody's anticipation of about steady
traffic and operating performance in upcoming quarters as the
company focuses on completing the integration of its work groups
under unified labor contracts. The large cash balance provides
sufficient cushion to fund upcoming debt maturities and other
potential calls on cash in the event cash flow from operations was
to unexpectedly decline. The stable outlook also anticipates
ongoing capacity discipline by UAL, as well as its US peers and
continued vigilance by UAL in controlling non-fuel costs; each of
which should help mitigate pressure on earnings during periods of
declining passenger counts.
Upwards pressure on the ratings could occur if the company is able
to improve its unit revenues and demonstrate the ability to limit
growth in non-fuel unit costs such that a positive trend of
operating profit and operating cash flow can be sustained.
Stronger credit metrics such as Funds from operations + interest
to interest of about 3.0 times, Debt to EBITDA of below 5.5 times
and or Free Cash Flow to Debt of at least 4% could also positively
pressure the ratings. The ratings could face downwards pressure if
the company is unable to maintain its EBIT margin above 5% while
its cost of jet fuel surpassed $3.40 per gallon or if aggregate
liquidity including cash and availability on revolving credit
facilities was sustained below $4.0 billion. Sustained negative
free cash flow generation, Debt to EBITDA of more than 7.0 times
or Funds from operations + interest to interest of below 2.0 times
could also lead to a negative rating action.
United Continental Holdings, Inc. (NYSE: UAL) is the holding
company for United Airlines, Inc. United Airlines and its regional
operation, United Express, offer approximately 5,300 daily
departures to 360 destinations. In 2012, United and United Express
carried more passenger traffic than any other airline in the world
and operated nearly two million flights carrying 140 million
customers.
UNITED CONTINENTAL: S&P Rates $300MM Sr. Unsec. Notes Due 2020 'B'
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' issue rating
to United Continental Holdings Inc.'s (B/Stable/--) $300 million
senior unsecured notes due 2020. S&P also assigned a '4' recovery
rating, indicating its expectation of average (30%-50%) recovery
in a default scenario.
The notes are guaranteed by the company's main operating
subsidiary, United Airlines Inc. (B/Stable/--), which was formed
earlier in 2013 from the merger of United Air Lines Inc. and
Continental Airlines Inc. Absent the guarantee, S&P would rate
the notes two notches below our corporate credit rating on United
Continental because of structural subordination. However, because
of the guarantees, we rate them at the level of United Airlines'
senior unsecured debt.
Chicago-based United Continental is the largest U.S. airline, and
the world's largest based on traffic. S&P's corporate credit
rating reflects the company's substantial market position and
expected synergies from the 2010 merger of UAL Corp. and
Continental Airlines Inc., as well as the company's heavy debt and
lease burden. S&P characterizes United Continental's business
position as "weak," its financial profile as "highly leveraged,"
and its liquidity as "adequate" under its criteria.
The rating outlook is stable. S&P don't expect to change its
corporate credit rating over the next several quarters, but S&P
could raise the rating over the longer term as the company
captures merger synergy benefits.
RATINGS LIST
United Continental Holdings Inc.
Corporate Credit Rating B/Stable/--
Ratings Assigned
United Continental Holdings Inc.
Senior Unsecured
$300 mil notes due 2020 B
Recovery Rating 4
UNIVERSAL AMERICAN: A.M. Best Affirms 'bb' Issuer Credit Rating
----------------------------------------------------------------
A.M. Best Co. has affirmed the issuer credit rating (ICR) of "bb"
of Universal American Corp. (Universal American) (White Plains,
NY) [NYSE: UAM].
Concurrently, A.M. Best has affirmed the financial strength rating
(FSR) of B++ (Good) and ICRs of "bbb" of American Progressive Life
& Health Insurance Company of New York (American Progressive)
(White Plains, NY) and The Pyramid Life Insurance Company (Pyramid
Life) (Overland Park, KS).
A.M. Best has also affirmed the FSR of B+ (Good) and ICRs of "bbb-
" of American Pioneer Life Insurance Company (American Pioneer)
(Lake Mary, FL), Constitution Life Insurance Company (Constitution
Life), Marquette National Life Insurance Company (Marquette
National), Union Bankers Insurance Company (Union Bankers) and
SelectCare of Texas, Inc. (SelectCare). The outlook for
SelectCare's ratings has been revised to stable from positive.
Additionally, A.M. Best has upgraded the FSR to B+ (Good) from B
(Fair) and ICR to "bbb-" from "bb+" of Today's Options of
Oklahoma, Inc. (Today's Options) (Oklahoma City, OK). Unless
otherwise specified, the outlook for all ratings is stable. The
insurance companies mentioned above are subsidiaries of Universal
American and are domiciled in Houston, TX, unless otherwise
specified.
The affirmation for Universal American and its subsidiaries on a
consolidated basis reflects recent stabilization of premium
revenue levels, generally favorable underwriting results, low
financial leverage and good liquidity. Although Universal
American's premium revenue level is materially lower than historic
levels due to multiple factors (the company is now focused on
Medicare Advantage business in core markets), moderate growth in
these markets is being seen. Overall underwriting results for the
company have remained favorable over the last three years,
although margins have declined. Net losses through June 30, 2013
were mainly driven by a goodwill impairment related to the
acquisition of APS Healthcare. Additionally, Universal American's
debt-to-capital ratio was 15.9% at June 30, 2013, which is
considered low as compared to its peers. Universal American has a
good level of liquidity from parent company cash, dividends from
subsidiaries as well as an untapped $75 million revolving credit
agreement.
Offsetting rating factors include Universal American's reduced
level of premium revenue, increased business concentration risk
and significant dividends taken from insurance subsidiaries. The
company's premium revenue has declined significantly over the last
two years mainly due to the sale of its Medicare Part D business,
a decline in Medicare Advantage new sales and retention in 2012,
as well as the company's discontinuation of marketing of its
Medicare supplement products. Universal American's insurance
business is now heavily concentrated in Medicare Advantage in
specific core markets. Additionally, Universal American has
upstreamed extraordinary dividends, which could pressure the risk-
adjusted capitalization of its insurance entities as dividends are
the primary source of parent company cash flows.
The rating affirmations for American Progressive and Pyramid Life
reflect their role as core subsidiaries of Universal American. On
a consolidated basis, these entities continue to generate over
half of the organization's revenue and service almost three-fifths
of its Medicare Advantage enrollment. Operating results for these
entities have consistently been positive, and margins have shown
improvement. Risk-adjusted capitalization for these companies has
moderated somewhat due to dividends to the parent, but they have
been mostly offset by favorable net income and a decline in
business and insurance risk. These entities are anticipated to
continue to contribute favorably to the overall operating earnings
of Universal American.
The rating affirmations for American Pioneer, Constitution Life,
Marquette National, Union Bankers and SelectCare recognize their
contribution to the overall business profile of the organization
through product and rate flexibility as well as overall favorable
operating earnings and good levels of risk-adjusted
capitalization. A.M. Best notes that these entities are not
currently marketing new Medicare supplement policies; however,
SelectCare is actively marketing Medicare Advantage products.
The upgrading of the ratings for Today's Options reflects the
company's improved operating results, increased level of risk-
adjusted capital and continued support by Universal American.
Going forward, positive rating actions could occur if Universal
American generates profitable premium growth while maintaining
strong capitalization in its insurance subsidiaries and
diversification of product, market segment or geography. Negative
rating actions could occur if Universal American reports
significant operating losses in its core Medicare Advantage
business, experiences a drastic decline in risk-adjusted
capitalization at its insurance subsidiaries or is unable to
maintain enrollment and premium growth in Medicare Advantage
business in its core markets.
US AIRWAYS: Pilots Lose ERISA Appeal in DC Circuit
--------------------------------------------------
Law360 reported that the D.C. Circuit on Nov. 1 rejected an appeal
brought by former US Airways pilots alleging the Pension Benefit
Guaranty Corp. had illegally cut their benefits short after the
airliner went bankrupt in 2002, finding the pilots had supported
only five of their nine claims, and that those five claims fell
short.
According to the report, the appeals court upheld a district
court's granting of summary judgment to the PBGC on the five
counts not forfeited, writing that the pilots had failed to
provide relevant arguments to support their claims.
The appeal is Thomas Davis, et al v. PBGC, Case No. 12-5274 (D.C.
App.).
US Airways, along with US Airways Shuttle and US Airways Express,
operates nearly 3,200 flights per day and serves more than 200
communities in the U.S., Canada, Mexico, Europe, the Middle East,
the Caribbean, Central and South America.
American Airlines, headquartered in Fort Worth, Texas, serves more
than 260 airports in more than 50 countries and territories.
American's fleet of nearly 900 aircraft flies more than 3,500
daily flights worldwide from hubs in Chicago, Dallas/Fort Worth,
Los Angeles, Miami and New York.
VELTI INC: U.S. Unit Files for Bankruptcy Protection in Delaware
----------------------------------------------------------------
Dawn McCarty, writing for Bloomberg News, reported that Velti
Inc., a provider of technology for marketing on mobile devices,
filed for bankruptcy protection (Bankr. D. Del. Case No. 13-12878)
to arrange a sale of its U.S. businesses.
According to the report, the company, with operations in San
Francisco, plans to auction some assets with an affiliate of GSO
Capital Partners, the credit division of Blackstone Group LP,
acting as the initial, or "stalking-horse," bidder, Tom Becker, a
spokesman for Velti, said in an e-mail.
Velti, a U.S. unit of Velti Plc, listed assets of $10 million to
$50 million and debt of $50 million to $100 million in Chapter 11
documents filed in Delaware on Nov. 4, the report related.
"This is a great partner for us," Velti Chief Executive Officer
Alex Moukas said about GSO in a phone interview before the filing,
the report further related. "They have proven to be very
supportive both in terms as a buyer of parts of our business but
also as a lender of the remaining of our business that is not sold
to them."
Although the business lines of Air2Web India unit and Velti's U.K.
operations, including Mobile Interactive Group Ltd., are included
in the proposed sale, those entities aren't included in the
bankruptcy and are continuing normal operations, Moukas said, the
report cited.
GSO has agreed to provide as much as $25 million in debtor-in-
possession financing, including $10 million in cash, to support
the businesses included in the proposed sale, he said, the report
added.
WASHINGTON MUTUAL: J.P. Morgan, U.S. Still Fighting Over Wording
----------------------------------------------------------------
Dan Fitzpatrick and Ryan Tracy, writing for Daily Bankruptcy
Review, reported that in the frenzied final hours before J.P.
Morgan Chase & Co. acquired the banking operations of failed
thrift Washington Mutual Inc., the bank?s lawyers tangled with
regulators over the wording of the 39-page purchase agreement.
According to the report, five years later, J.P. Morgan and the
Federal Deposit Insurance Corp. are still fighting over the
meaning of those words.
The question of who bears responsibility for Washington Mutual?s
legal liabilities is taking on increasing urgency as J.P. Morgan
negotiates a pact with the Justice Department that would end
probes of soured mortgage bonds issued by J.P. Morgan and
Washington Mutual during the housing boom, the report related.
The Justice Department is trying to insert language into the
settlement stipulating that none of the costs the bank pays
regarding Washington Mutual will be passed to the FDIC, said
people close to the talks, the report added. J.P. Morgan wants
the ability to recover costs associated with Washington Mutual
from the FDIC receivership that liquidated the thrift in 2008.
The settlement talks are at risk of falling apart over this and
other disagreements, said people close to the talks, the report
further related.
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- was the holding company for Washington
Mutual Bank as well as numerous non-bank subsidiaries.
Washington Mutual Bank was taken over on September 25, 2008, by
U.S. government regulators. The next day, WaMu and its affiliate,
WMI Investment Corp., filed separate petitions for Chapter 11
relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu
owns 100% of the equity in WMI Investment.
WATERSCAPE RESORT: Contractor Calls Discovery Motion 'Harassment'
-----------------------------------------------------------------
Law360 reported that contractor Pavarini McGovern LLC on Nov. 1
asked a New York bankruptcy judge to dismiss a discovery motion
filed by Waterscape Resort LLC in an ongoing contract dispute over
the building of the Cassa NY Hotel, on the grounds that the motion
is redundant and constitutes harassment.
According to the report, Waterscape, the reorganized developer of
New York's Cassa NY Hotel, filed a motion Oct. 23 requesting that
Pavarini produce more than six years of documents and the
deposition of its witnesses, pursuant to Bankruptcy Rule 2004.
About Waterscape Resort
Waterscape Resort LLC, aka Cassa NY Hotel and Residences, filed
for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No.
11-11593) on April 5, 2011. Waterscape acquired property
consisting of three contiguous buildings at 66, 68 and 70 West
45th Street in Manhattan, for the sum of $20 million, and
developed the property into a 45-storey condominium project
including a luxury hotel, a restaurant and luxury residential
apartments. The purchase was financed with a $17 million
acquisition loan and mortgage from U.S. Bank Association. The
Cassa NY Hotel and Residences features 165 hotel rooms, and above
the hotel units, 57 residences.
Brett D. Goodman, Esq., and Lee William Stremba, Esq., at Troutman
Sanders LLP, represented the Debtor as bankruptcy counsel.
Holland & Knight LLP served as its special litigation counsel.
The Debtor disclosed $214,285,027 in assets and $158,756,481 in
liabilities as of the Chapter 11 filing.
Schiff Hardin LLP served as counsel to a 3-member Official
Committee of Unsecured Creditors.
U.S. Bankruptcy Judge Stuart Bernstein confirmed Waterscape's
reorganization plan in July 2011, which calls for repaying much of
the company's debt with proceeds from the $128 million sale of the
hotel section of the development. The Plan was filed May 6, 2011.
WKI HOLDING: S&P Lowers Rating on Sr. Sec. Credit Facility to 'B'
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its issue-level rating
to Rosemont, Ill.-based WKI Holding Co. Inc.'s (World Kitchen's)
senior secured credit facility to 'B' from 'B+'. The company is
adding $62 million to its original $190 million term loan due
2019. The additional senior debt lowers the recovery prospects
for the senior secured facility. Accordingly, S&P has revised the
recovery rating to '3' from '2', reflecting its expectations for
meaningful (50% to 70%) recovery in the event of a payment
default. World Kitchen has indicated that it will use proceeds
from the proposed term loan add-on to fund a $54 million dividend
to its owners.
The senior secured facility also includes a $90 million revolving
bank facility due 2018. As of Sept. 30, 2013, World Kitchen had
about $374 million of adjusted debt outstanding.
The 'B' corporate credit rating on World Kitchen reflects S&P's
opinion that the company's financial risk profile will remain
"highly leveraged" and its business risk profile will continue to
be "vulnerable." Key credit factors in S&P's assessment of World
Kitchen's business risk profile include its narrow business focus,
participation in the highly competitive and fragmented kitchenware
industry (which has low barriers to entry in some categories), and
a narrow product focus. We believe the company's products are also
vulnerable to changes in consumer tastes and cutbacks in
discretionary spending.
S&P's view of the company's financial risk profile is based on its
significant debt burden and aggressive financial policy. Credit
protection measures will weaken following the issuance of the
proposed term loan add-on. For the 12 months ended Sept. 30,
2013, S&P estimates pro forma total debt to adjusted EBITDA will
be high at 5.6x, as compared with 4.8x excluding the term loan
add-on. S&P estimates the ratio of pro forma funds from
operations (FFO) to total debt will decline to about 11% for the
12 months ended Sept. 30, 2013, from about 13% excluding the term
loan add-on. S&P expects credit measures will improve modestly
over the next year as the company applies free cash flow towards
debt reduction. These credit measures are in line with S&P's
"highly leveraged" indicative ratios of leverage over 5x and FFO
to total debt below 12%.
Ratings List
WKI Holding Co. Inc.
Corporate credit rating B/Stable/--
Issue Rating Lowered; Recovery Rating Revised
To From
Snapware Corp.
World Kitchen LLC
Senior secured B B+
Recovery rating 3 2
* SAC Nears Insider Trading Guilty Plea, but Cases Aren't Shut
--------------------------------------------------------------
Ben Protess and Peter Lattman, writing for The New York Times'
DealBook reported that the criminal case against the hedge fund
SAC Capital Advisors has reached a conclusion, people briefed on
the matter said, with the government expected to announce Nov. 4
that SAC will plead guilty to insider trading charges and pay a
fine of roughly $1.2 billion. But the plea deal will hardly
remove SAC and its owner, the billionaire money manager Steven A.
Cohen, from the legal spotlight.
For one thing, the people said, the agreement does not resolve a
separate civil lawsuit that the Securities and Exchange Commission
brought against Mr. Cohen in July, accusing him of failing to
supervise his employees, the report related. Six former SAC
traders have pleaded guilty to insider trading crimes.
The firm and Mr. Cohen will also remain under scrutiny during the
coming criminal trials of two other employees, one whose case
begins in federal court in Manhattan this month, the report
further related. The trials of the employees, Michael S.
Steinberg and Mathew Martoma, are expected to provide the first
detailed witness testimony about the inner workings of SAC and Mr.
Cohen's role in the trades at the center of those cases.
And while Mr. Cohen has not been charged criminally or even
accused of insider trading, the people briefed on the matter said,
federal authorities continue to view him and other SAC employees
as targets of the continuing insider trading investigation, the
report said.
* WaMu Receivership Obstacle in JPM and Justice Dept. Talks
-----------------------------------------------------------
The New Zealand Herald reports that negotiations between the
United States Justice Department and JPMorgan have hit a stumbling
block that has put the talks at risk.
JPMorgan tentatively agreed to pay US$13 billion ($16 billion) to
settle allegations surrounding the low quality of mortgage-backed
securities it sold in the run-up to the 2008 financial crisis,
according to The New Zealand Herald.
The report notes that one of the unresolved issues in the talks is
that JPMorgan says it should be able to seek money from a
receivership involving Washington Mutual, a failed savings and
loan association that JPMorgan bought in 2008, said an unnamed
source.
The report relates that the receivership is overseen by Federal
Deposit Insurance (FDIC), the independent agency created by
Congress to maintain stability in the banking system. The FDIC's
position is that JPMorgan is responsible for any liabilities
regarding the acquisition of Washington Mutual, the report
discloses.
The report notes that the the unnamed source said the two sides
also disagree over whether the bank can face criminal charges. The
tentative US$13 billion deal only covers civil issues.
In a proposal, the bank said it wanted to limit any possible
criminal exposure to a single ongoing criminal investigation in
California, the report relates.
A government agency that oversees mortgage finance companies
Fannie Mae and Freddie Mac announced that JPMorgan had agreed to
pay US$4 billion of the US$13 billion involved in the tentative
settlement, the report notes. The US$4 billion resolves claims
that the bank misled Fannie and Freddie about risky mortgage
securities it sold to them before the housing market collapsed,
the report notes.
Fannie and Freddie were rescued in a taxpayer bailout in 2008 as
they sank under the weight of mortgage losses, the report adds.
* Atlantic City Casino Values Drop
----------------------------------
Laura Kusisto and Heather Haddon, writing for The Wall Street
Journal, reported that Atlantic City faces a new hurdle in its
struggle to revive its declining gambling industry: Its 13 casinos
say their properties collectively are worth billions of dollars
less than they were just a few years ago, and they want lower
taxes to reflect that shift.
According to the report, in the latest and largest blow, a New
Jersey tax court ruled last month that the city owes the Borgata
Hotel Casino & Spa a roughly $50 million refund on its property
taxes for 2009 and 2010. That number represents 20% of the city's
annual revenue, according to Moody's Investors Services.
Judge Patrick DeAlmeida, who presides over the Tax Court of New
Jersey, said the overall climate for Atlantic City's casinos has
crumbled since neighboring states have opened their own gaming
facilities, the report related.
"The gaming market had been reset and the economic prospects for
Atlantic City's casino-hotels dimmed for the foreseeable future,"
he wrote in the Oct. 18 ruling, the report said.
Gov. Chris Christie staked considerable political capital on
reviving Atlantic City since he took office in 2010, the report
further related. But more than halfway into his five-year plan to
help Atlantic City, the casinos have had long stretches of
declining revenue, and now the city's finances hang in the balance
as well.
* Ch. 11 Pros Argue for More CROs, Strong Creditor Groups
---------------------------------------------------------
Law360 reported that chief restructuring officers should be
awarded greater leniency under the U.S. Bankruptcy Code and the
practices of unsecured creditors committees should not be altered,
bankruptcy experts told a commission looking into potential areas
to reform under Chapter 11 on Oct. 31.
According to the report, at a panel discussion before the American
Bankruptcy Institute's Commission to Study the Reform of Chapter
11, people involved in and retired from the corporate bankruptcy
community offered their insights into what, if anything, in the
Bankruptcy Code should be changed.
* Akerman Gets Best Law Firm Tier 1 Ranking in Bankruptcy Practice
------------------------------------------------------------------
Akerman LLP, a law firm serving clients across the Americas, on
Nov. 1 disclosed that U.S. News- Best Lawyers has recognized the
firm among the 2014 "Best Law Firms" in the United States. For
the second consecutive year, the publication ranked 30 of the
firm's practice areas nationally, recognizing the work of
Akerman's Corporate, M&A, Financial Services, Real Estate, and
Litigation teams among others. The firm increased its National
Tier 1 rankings to eight practice areas including, Corporate Law,
International Trade and Finance Law, Real Estate Law, Construction
Law, and four areas of Litigation: Banking & Finance, Bankruptcy,
Construction, and Real Estate. In addition, Akerman received a
record 72 Tier 1 Metropolitan Area rankings in local markets
across the nation.
The Best Law Firm rankings follow the recently released list of
The Best Lawyers in America. The firm achieved record results
with 134 Akerman lawyers in 56 practice areas from 15 of its
offices named to The Best Lawyers in America 2014 list.
The U.S. News - Best Lawyers rankings are the result of client and
lawyer feedback derived from 4.3 million evaluations from across
the United States. A full listing of the Akerman practices
included in the 2014 U.S. News - Best Lawyers national and
metropolitan rankings is found below:
National Tier 1 Rankings:
Construction Law
Corporate Law
International Trade and Finance Law
Litigation - Banking & Finance
Litigation - Bankruptcy
Litigation - Construction
Litigation - Real Estate
Real Estate Law
National Tier 2 Rankings:
Commercial Litigation
Employment Law - Management
Health Care Law
International Arbitration - Commercial
Leveraged Buyouts and Private Equity Law
Litigation - Labor & Employment
Mergers & Acquisitions Law
Private Funds/Hedge Funds Law
Securities/Capital Markets Law
Securities Regulation
Tax Law
Trusts & Estates Law
Venture Capital Law
National Tier 3 Rankings:
Antitrust Law
Appellate Practice
Bankruptcy and Creditor Debtor Rights/Insolvency and
Reorganization Law
Employee Benefits (ERISA) Law
Franchise Law
Insurance Law
Labor Law - Management
Litigation - Antitrust
Litigation - Intellectual Property
Metropolitan Tier 1 Rankings:
Colorado: Biotechnology Law, Patent Law
Fort Myers: Trusts & Estates Law
Jacksonville: Bankruptcy and Creditor Debtor Rights/Insolvency and
Reorganization Law, Commercial Litigation, Health Care Law,
Litigation - Banking & Finance, Litigation - Land Use & Zoning,
Litigation - Real Estate, Litigation - Tax, Securitization and
Structured Finance Law
Madison: Construction Law
Miami: Appellate Law, Bankruptcy and Creditor Debtor
Rights/Insolvency and Reorganization Law, Commercial Litigation,
Corporate Governance Law, Corporate Law, Criminal Defense: Non-
White-Collar, Criminal Defense: White-Collar, Employment Law -
Management, Health Care Law, Insurance Law, Leveraged Buyouts and
Private Equity Law, Litigation - Antitrust, Litigation -
Bankruptcy, Litigation - Labor & Employment, Litigation - Land Use
& Zoning, Litigation - Real Estate, Litigation - Trusts & Estates,
Mergers & Acquisitions Law, Private Funds/Hedge Funds Law, Real
Estate Law, Securities/Capital Markets Law, Securities Regulation,
Tax Law, Trusts & Estates Law, Venture Capital Law
New York: International Trade and Finance Law
Orlando: Appellate Practice, Banking and Finance Law, Commercial
Litigation, Construction Law, Environmental Law, Land Use & Zoning
Law, Litigation - Banking & Finance, Litigation - Bankruptcy,
Litigation - Intellectual Property, Litigation - Land Use &
Zoning, Litigation - Real Estate, Real Estate Law, Tax Law, Trusts
& Estates Law
Tallahassee: Appellate Practice, Health Care Law, Insurance Law
Tampa: Appellate Practice, Commercial Litigation, Corporate Law,
Employment Law - Management, Health Care Law, Litigation - Banking
& Finance, Litigation - Construction, Litigation - Intellectual
Property, Litigation - Labor & Employment, Securities Regulation,
Trusts & Estates Law
Washington, D.C.: Construction Law, Litigation - Bankruptcy,
Litigation - Construction
West Palm Beach: Commercial Litigation, Litigation - Intellectual
Property, Real Estate Law
Metropolitan Tier 2 Rankings:
Jacksonville: Corporate Law, Litigation - Trusts & Estates,
Product Liability Litigation - Defendants, Public Finance Law, Tax
Law
Miami: Antitrust Law, Employee Benefits (ERISA) Law, Family Law,
International Arbitration - Commercial, Labor Law - Management,
Litigation - Banking & Finance, Litigation - Tax
New York: Real Estate Law
Orlando: Bankruptcy and Creditor Debtor Rights/Insolvency and
Reorganization Law, Employee Benefits (ERISA) Law, Financial
Services Regulation Law, Litigation - Construction, Litigation -
Trusts & Estates
Tallahassee: Environmental Law, Litigation - Environmental
Tampa: Banking and Finance Law, Bankruptcy and Creditor Debtor
Rights/Insolvency and Reorganization Law, Labor Law - Management,
Litigation - Bankruptcy, Litigation - Real Estate, Non-
Profit/Charities Law, Real Estate Law, Securities/Capital Markets
Law, Tax Law
Washington D.C.: Mediation
West Palm Beach: Litigation - Real Estate
Metropolitan Tier 3 Rankings:
Fort Myers: Commercial Litigation
Miami: Construction Law, Litigation - Securities, Transportation
New York: Corporate Law, Land Use & Zoning Law
Tampa: Litigation - Trusts & Estates, Medical Malpractice Law -
Defendants
Washington, D.C.: Arbitration, Franchise Law
About Akerman LLP
Akerman LLP is a transactions and trial law firm known for its
core strengths in middle market M&A, within the financial services
and real estate industries, and for a diverse Latin America
practice. W ith more than 550 lawyers and government affairs
professionals and a network of 19 offices, it is ranked among the
top 100 law firms in the United States by The National Law Journal
NLJ 350 (2013). Akerman also is ranked among the top 100 law
firms for diversity by MultiCultural Law magazine (2012) and
recognized as the Law Firm of the Year for Diversity - South by
Benchmark Litigation (2012).
* Waller Ranked Among 2014 Best Law Firms in Bankruptcy Practice
----------------------------------------------------------------
Waller has been ranked regionally in 48 practice areas in the 2014
"Best Law Firms" list by U.S. News & World Report and Best
Lawyers(R). Waller -- Nashville's oldest and largest law firm --
has offices in Birmingham, Alabama and Austin, Texas. The firm
has built a national reputation for its work with clients in the
healthcare, real estate, financial services, retail, hospitality
and manufacturing industries.
"We are extremely pleased by our recognition in the 'Best Law
Firms' list," said Waller Chairman John Tishler. "Rankings across
such a wide range of practice areas and in each of our offices
reflect the firm's commitment to helping our clients achieve their
objectives. It's also a reflection of the breadth of our
capabilities and the depth of our team."
Waller's Nashville office was ranked in 44 practice areas,
including Banking and Finance Law; Bankruptcy and Creditor Debtor
Rights / Insolvency and Reorganization Law; Corporate Law;
Healthcare Law; Employment Law - Management; Project Finance Law;
Real Estate Law; Securities / Capital Markets Law; Patent Law;
Mergers & Acquisitions Law; Real Estate Law; Securities / Capital
Markets Law; Tax Law; Trademark Law; and 19 dispute resolution
categories involving arbitration, mediation and litigation.
Waller's Birmingham office was ranked in the areas of Banking and
Finance Law; Commercial Litigation; and Litigation - Banking &
Finance. The firm's Austin office was ranked in the area of
Healthcare Law.
About Waller
With approximately 200 attorneys, Waller --
http://www.wallerlaw.com-- helps clients navigate a diverse range
of complex transactional, regulatory and litigation issues across
myriad industries. Founded in 1905, Waller has client
relationships spanning decades because clients, time and again,
come for the lawyer and stay for the firm(SM
U.S. News - Best Lawyers "Best Law Firms" Firms included in the
2014 "Best Law Firms" list are recognized for professional
excellence with persistently impressive ratings from clients and
peers. Achieving a ranking signals a unique combination of quality
law practice and breadth of legal expertise. The 2014 Edition of
"Best Law Firms" includes rankings in 74 national practice areas
and 120 metropolitan-based practice areas. The U.S. News -- Best
Lawyers "Best Law Firms" rankings, for the fourth consecutive
year, are based on a rigorous evaluation process that includes the
collection of client and lawyer evaluations, peer review from
leading attorneys in their field, and review of additional
information provided by law firms as part of the formal submission
process. Clients and peers were asked to evaluate firms based on
the following criteria: responsiveness, understanding of a
business and its needs, cost-effectiveness, integrity and
civility, as well as whether they would refer a matter to the firm
and/or consider the firm a worthy competitor.
Waller Rankings -- 2014 "Best Law Firms"
Metropolitan Tier 1
NASHVILLE
-- Administrative / Regulatory Law
-- Arbitration
-- Banking and Finance Law
-- Bankruptcy and Creditor Debtor Rights / Insolvency and
Reorganization Law
-- Commercial Litigation
-- Corporate Law
-- Eminent Domain and Condemnation Law
-- Employment Law - Management
-- Family Law
-- Government Relations Practice
-- Healthcare Law
-- Litigation - Banking & Finance
-- Litigation - Bankruptcy
-- Litigation - Construction
-- Litigation - Intellectual Property
-- Litigation - Labor & Employment
-- Litigation - Patent
-- Litigation - Real Estate
-- Litigation - Securities
-- Litigation - Tax
-- Mass Tort Litigation / Class Actions - Defendants
-- Mediation
-- Mergers & Acquisitions Law
-- Patent Law
-- Product Liability Litigation - Defendants
-- Project Finance Law
-- Real Estate Law
-- Securities / Capital Markets Law
-- Tax Law
-- Trademark Law
-- Trusts & Estates Law
Metropolitan Tier 2
BIRMINGHAM
-- Banking and Finance Law
-- Commercial Litigation
-- Litigation - Banking & Finance
NASHVILLE
-- Construction Law
-- Copyright Law
-- Employee Benefits (ERISA) Law
-- Environmental Law
-- Franchise Law
-- Information Technology Law
-- Labor Law - Management
-- Litigation - Antitrust
-- Litigation - ERISA
-- Litigation - First Amendment
-- Litigation - Mergers & Acquisitions
-- Public Finance Law
-- Technology Law
Metropolitan Tier 3
AUSTIN
-- Healthcare Law
* Mintz Levin Gets Best Law Firm Tier 1 Ranking in Bankruptcy Area
------------------------------------------------------------------
In the annual "Best Law Firms" rankings, released on Nov. 1 by
U.S. News & World Report and Best Lawyers, Mintz, Levin, Cohn,
Ferris, Glovsky and Popeo, P.C. has been named a top tier national
firm in eleven practice areas. Additionally, thirty of the firm's
practice areas received a tier one regional ranking. Mintz Levin
continues to increase its national and regional presence in the
rankings.
The U.S. News & World Report and Best Lawyers "Best Law Firms"
rankings are based on a rigorous evaluation process that includes
client and lawyer evaluations, peer review from leading attorneys
in the field, and a review of additional information provided by
law firms as part of the formal submission process. The 2014
edition features over 11,000 law firms ranked nationally in one or
more of 74 major legal practice areas and regionally in one or
more of 120 major legal practice areas.
Mintz Levin's Tier One Rankings for the 2014 edition include:
National
Bankruptcy and Creditor Debtor Rights / Insolvency and
Reorganization Law Biotechnology Law Communications Law Corporate
Law Health Care Law Immigration Law Litigation - Banking & Finance
Litigation - Bankruptcy Public Finance Law Real Estate Law
Technology Law
Metropolitan
Boston Bankruptcy and Creditor Debtor Rights / Insolvency and
Reorganization Law Biotechnology Law Commercial Litigation
Construction Law Corporate Law Criminal Defense: White-Collar
Employee Benefits (ERISA) Law Employment Law - Individuals
Environmental Law Health Care Law Immigration Law Insurance Law
Litigation - Bankruptcy Litigation - Construction Litigation -
Environmental Public Finance Law Securities Regulation Technology
Law
New York City Criminal Defense: White-Collar Health Care Law
Litigation - Banking & Finance Litigation - Bankruptcy Litigation
- Labor & Employment Real Estate Law
San Diego Bankruptcy and Creditor Debtor Rights / Insolvency and
Reorganization Law Litigation - Bankruptcy Venture Capital Law
San Francisco Real Estate Law
Washington, DC Communications Law Education Law
* Thompson Hine Gets First-Tier Rankings in Bankruptcy Area
-----------------------------------------------------------
Thompson Hine LLP on Nov. 1 disclosed that it has repeated its
top-tier placement in the U.S. News - Best Lawyers(R) 2014 Best
Law Firms rankings, earning national and regional recognition.
Firms included on the list of 2014 Best Law Firms are recognized
for professional excellence with persistently impressive ratings
from clients and peers. Achieving a tiered ranking signals a
unique combination of quality law practice and breadth of legal
expertise.
Thompson Hine received 124 rankings, including 66 first-tier
rankings, five of which are national first-tier rankings in the
areas of Corporate Law, International Trade and Finance Law,
Litigation - Construction, Mass Tort/Litigation/Class Actions -
Defendants and Transportation Law. This is the firm's first year
to be included in first-tier rankings for Corporate Law,
International Trade and Finance Law and Litigation - Construction.
The firm also earned high marks in the metropolitan rankings for
Atlanta, Cincinnati, Cleveland, Columbus, Dayton, New York and
Washington, D.C., receiving first-tier rankings in the following
areas: Admiralty & Maritime Law, Antitrust Law, Banking & Finance
Law, Bankruptcy and Creditor Debtor Rights/Insolvency and
Reorganization Law, Commercial Litigation, Construction Law,
Corporate Law, Criminal Defense: White-Collar, Employee Benefits
(ERISA) Law, Employment Law - Management, Environmental Law,
Financial Services Regulation Law, Health Care Law, International
Trade and Finance Law, Leveraged Buyouts and Private Equity Law,
Labor Law - Management, Litigation - Antitrust, Litigation -
Bankruptcy, Litigation - Construction, Litigation - Environmental,
Litigation - ERISA, Litigation - Intellectual Property, Litigation
- Mergers & Acquisitions, Litigation - Real Estate, Litigation -
Securities, Litigation - Tax, Mass Tort Litigation/Class Action
Defendants, Patent Law, Product Liability - Defendants,
Securities/Capital Markets Law, Real Estate Law, Securities
Regulation, Tax Law, Transportation Law, Trusts & Estates Law, and
Venture Capital Law. The regional rankings include all seven of
the firm's office locations.
The national first-tier rankings will be featured in the first
edition of the Best Law Firms legal issue, which will be
distributed to more than 30,000 C-level executives. National and
metropolitan first-tier rankings will be featured in the Best Law
Firms general counsel publication, which will be distributed to
more than 30,000 in-house counsel and in digital format to more
than 60,000 private practice lawyers worldwide. The complete 2014
Best Law Firms rankings can be viewed at
http://bestlawfirms.usnews.com
The report, in its fourth year, is compiled by surveying thousands
of law firm clients and lawyers. Firms are then ranked for their
experience, responsiveness, understanding of a business and its
needs, cost-effectiveness, civility and whether a client or lawyer
would refer business to a firm. The mission of the Best Law Firms
rankings is to help guide referring lawyers and clients who are
seeking corporate legal advice.
Earlier this year, 95 Thompson Hine lawyers were selected by their
peers for inclusion in the 2014 edition of The Best Lawyers in
America. First published in 1983, Best Lawyers is based on a
confidential peer-review survey of the top attorneys in the
nation. This is the third year that U.S. News & World Report has
partnered with Best Lawyers to produce the Best Law Firms
rankings.
About Thompson Hine LLP
Established in 1911, Thompson Hine -- http://www.ThompsonHine.com
is a business law firm dedicated to providing superior client
service. The firm has been recognized for more than ten
consecutive years as one of the top law firms in the country for
client service excellence in The BTI Client Service A-Team: Survey
of Law Firm Client Service Performance, and for six years has
ranked as one of the top 30 law firms in the United States for
client service.
* Butler Snow Gets Best Law Firm Tier 1 Ranking in Bankruptcy Area
------------------------------------------------------------------
U.S. News - Best Lawyers(R) "Best Law Firms" 2014(R) has released
information that Butler Snow LLP has received 54 tier-one
rankings.
Firms included in the 2014 "Best Law Firms" list are recognized
for professional excellence with persistently impressive ratings
from clients and peers. Achieving a ranking signals a unique
combination of quality law practice and breadth of legal
expertise.
"I am proud of Butler Snow's ranking in this U.S. News
publication," said Donald Clark Jr., Chairman, Butler Snow. "We
have a strong commitment to client service throughout the firm,
and we are honored to be recognized by our clients and peers as
leaders in so many practice areas."
The U.S. News - Best Lawyers(R) "Best Law Firms" rankings are
based on the highest number of participating firms and highest
number of client ballots on record. More than 12,000 attorneys
provided more than 330,000 law firm assessments, and almost 7,000
clients provided close to 20,000 evaluations. In addition, to
provide personal insight, a new Law Firm Leaders Survey was
implemented in the decision-making process.
Butler Snow's Tier-One Rankings by metropolitan area are:
Gulfport, Miss.
Banking and Finance Law
Insurance Law
Litigation - Banking & Finance
Personal Injury Litigation - Defendants
Real Estate Law
Memphis, Tenn.
Bankruptcy and Creditor Debtor Rights/ Insolvency and
Reorganization Law
Commercial Litigation
Corporate Law
Employment Law - Management
Health Care Law
Litigation - Banking & Finance
Mergers & Acquisitions Law
Real Estate Law
Nashville, Tenn.
Administrative/Regulatory Law
Employment Law - Management
Financial Services Regulation Law
Government Relations Practice
Insurance Law
Litigation - Bankruptcy
Medical Malpractice Law - Defendants
Personal Injury Litigation - Defendants
Real Estate Law
Jackson (Ridgeland), Miss.
Administrative/ Regulatory Law
Appellate Practice
Banking and Finance Law
Bankruptcy and Creditor Debtor Rights/ Insolvency and
Reorganization Law
Commercial Litigation
Corporate Law
Employee Benefits (ERISA) Law
Employment Law - Management
Environmental Law
Financial Services Regulation Law
Government Relations Practice
Labor Law - Management
Litigation - Antitrust
Litigation - Banking & Finance
Litigation - First Amendment
Litigation - Intellectual Property
Litigation - Labor & Employment
Litigation - Tax
Mass Tort Litigation/ Class Actions - Defendants
Mergers & Acquisitions Law
Natural Resources Law
Personal Injury Litigation - Defendants
Product Liability Litigation - Defendants
Professional Malpractice Law - Defendants
Public Finance Law
Real Estate Law
Tax Law
Trusts & Estates Law
Tupelo (Oxford), Miss.
Products Liability - Defendants
The 2014 "Best Law Firms" list of Tier 1 rankings will be featured
in the "Best Law Firms" standalone publication and distributed
later this month.
Best Lawyers(R) is the oldest and most respected attorney ranking
service in the world. For more than 30 years, Best Lawyers(R) has
assisted those in need of legal services to identify the attorneys
best qualified to represent them in distant jurisdictions or
unfamiliar specialties. Best Lawyers(R) lists are published in
leading local, regional and national publications across the
globe.
About Butler Snow
Butler Snow LLP -- http://www.butlersnow.com-- is a full-service
law firm with more than 250 attorneys representing local,
regional, national and international clients from 15 offices
globally. Ranked as one of America's Top 100 law firms in the BTI
Power Rankings, Butler Snow is recognized as one of the nation's
top law firms for client service. The firm was also named by BTI
on the Short List of Go-To Law Firms and also rated as a Hidden
Gem.
* Sidley Austin Gets Best Law Firms Tier-1 Ranking in Bankruptcy
----------------------------------------------------------------
Sidley Austin LLP on Nov. 1 disclosed that it has, for the fourth
year in a row and each year since the survey's inception, received
more first-tier national rankings than any other U.S. law firm in
the 2014 U.S. News - Best Lawyers(R) "Best Law Firms" survey. A
full listing of its rankings can be viewed online via the U.S.
News - Best Lawyers website -- http://bestlawfirms.usnews.com/
"This year, for the fourth straight year, Sidley has more first-
tier national rankings in the U.S. News - Best Lawyers law firm
rankings than any other U.S. law firm," said Steven Naifeh,
President and Founder, Best Lawyers. "This is quite an
accomplishment, and I wish to congratulate Sidley on its clear
commitment to client service."
In addition to receiving the most first-tier national rankings
again this year, Sidley has also received the U.S. News - Best
Lawyers "Law Firm of the Year" recognition in the Corporate Law
and Private Funds/Hedge Funds Law categories. "Law Firm of the
Year" designations are based on law firms' overall performance in
a given practice area and represent a significant showing in the
2014 U.S. News - Best Lawyers "Best Law Firms" survey research.
"We view our continued success in these rankings as a direct
reflection that our clients recognize and value the high-caliber
service we provide," said Carter Phillips, chair of Sidley's
Executive Committee. "Being recognized for four straight years
with the most first-tier national rankings makes us exceedingly
proud of the relationships we have developed with our clients and
the fact they consistently view us as their trusted advisor."
The 2014 U.S. News - Best Lawyers "Best Law Firms" rankings are
based on a rigorous evaluation process that includes the
collection of client and lawyer evaluations, peer review from
leading attorneys in their field, and review of additional
information provided by law firms as part of the formal submission
process. The 2014 survey had the highest number of participating
firms and highest number of client ballots on record. More than
12,000 attorneys provided more than 330,000 law firm assessments,
and almost 7,000 clients provided close to 20,000 evaluations.
"It is a privilege to have received this prestigious recognition
for the fourth consecutive year," said Charles W. Douglas, co-
chair of Sidley's Management Committee. "This achievement is
closely linked to our ability to attract top-notch lawyers who
share our deep, ongoing commitment to providing clients with
first-class service. We consistently strive to exceed the
expectations of our clients and are very pleased to have been
recognized for this honor based on their input."
U.S. News & World Report is a multi-platform publisher of news and
analysis and Best Lawyers is a leading survey of lawyers
worldwide. The 2014 U.S. News - Best Lawyers "Best Law Firms"
national first-tier rankings will be published in U.S. News &
World Report's Legal Issue and national and metropolitan first-
tier rankings will be featured in the "Best Law Firms" Standalone
Publication, both available later this month.
Sidley received first-tier national rankings in the following 50
practice areas:
-- Antitrust Law
-- Appellate Practice
-- Banking and Finance Law
-- Bankruptcy and Creditor Debtor Rights/Insolvency and
Reorganization Law
-- Biotechnology Law
-- Commercial Litigation
-- Communications Law
-- Corporate Law
-- Derivatives and Futures Law
-- Energy Law
-- Environmental Law
-- Equipment Finance Law
-- FDA Law
-- Health Care Law
-- Immigration Law
-- Insurance Law
-- International Arbitration - Commercial
-- International Arbitration - Governmental
-- International Trade and Finance Law
-- Leveraged Buyouts and Private Equity Law
-- Litigation - Antitrust
-- Litigation - Banking & Finance
-- Litigation - Bankruptcy
-- Litigation - Environmental
-- Litigation - ERISA
-- Litigation - First Amendment
-- Litigation - Intellectual Property
-- Litigation - Labor & Employment
-- Litigation - Mergers & Acquisitions
-- Litigation - Patent
-- Litigation - Regulatory Enforcement (SEC, Telecom, Energy)
-- Litigation - Securities
-- Mass Tort Litigation/Class Actions - Defendants
-- Media Law
-- Mergers & Acquisitions Law
-- Mutual Funds Law
-- Natural Resources Law
-- Patent Law
-- Private Funds/Hedge Funds Law
-- Public Finance Law
-- Railroad Law
-- Real Estate Law
-- Securities/Capital Markets Law
-- Securities Regulation
-- Securitization and Structured Finance Law
-- Tax Law
-- Technology Law
-- Transportation Law
-- Trusts & Estates Law
-- Venture Capital Law
In the survey's regional rankings, the following Sidley offices
received first-tier rankings:
-- Chicago
-- Dallas
-- Houston
-- Los Angeles
-- New York
-- San Francisco
-- Washington, D.C.
With approximately 1,700 lawyers in 19 offices worldwide, Sidley
has built a reputation as a premier legal adviser for global
businesses and financial institutions. For the fourth consecutive
year, and every year since the survey's inception, Sidley received
the most first-tier national rankings of any U.S. law firm in the
2014 U.S. News - Best Lawyers(R) "Best Law Firms" survey. On
Law360's list of Global 20 Firms, Sidley was ranked among the top
law firms "with the greatest global reach and expertise."
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
ABSOLUTE SOFTWRE OU1 GR 126.4 (13.6) (13.3)
ABSOLUTE SOFTWRE ABT CN 126.4 (13.6) (13.3)
ABSOLUTE SOFTWRE ALSWF US 126.4 (13.6) (13.3)
ACCELERON PHARMA 0A3 GR 48.4 (19.9) 6.2
ACCELERON PHARMA XLRN US 48.4 (19.9) 6.2
ADVANCED EMISSIO ADES US 87.0 (42.3) (18.0)
ADVANCED EMISSIO OXQ1 GR 87.0 (42.3) (18.0)
ADVENT SOFTWARE ADVS US 454.9 (133.8) (83.4)
ADVENT SOFTWARE AXQ GR 454.9 (133.8) (83.4)
AIR CANADA-CL A ADH GR 9,238.0 (3,470.0) (452.0)
AIR CANADA-CL A AIDIF US 9,238.0 (3,470.0) (452.0)
AIR CANADA-CL A AC/A CN 9,238.0 (3,470.0) (452.0)
AIR CANADA-CL A ADH TH 9,238.0 (3,470.0) (452.0)
AIR CANADA-CL B ADH1 GR 9,238.0 (3,470.0) (452.0)
AIR CANADA-CL B AC/B CN 9,238.0 (3,470.0) (452.0)
AIR CANADA-CL B AIDEF US 9,238.0 (3,470.0) (452.0)
AIR CANADA-CL B ADH1 TH 9,238.0 (3,470.0) (452.0)
AK STEEL HLDG AKS US 3,766.4 (211.8) 394.9
AK STEEL HLDG AK2 GR 3,766.4 (211.8) 394.9
AK STEEL HLDG AK2 TH 3,766.4 (211.8) 394.9
AK STEEL HLDG AKS* MM 3,766.4 (211.8) 394.9
ALLIANCE HEALTHC AIQ US 528.2 (131.1) 64.8
AMC NETWORKS-A 9AC GR 2,460.3 (680.1) 735.0
AMC NETWORKS-A AMCX US 2,460.3 (680.1) 735.0
AMER AXLE & MFG AYA GR 3,008.7 (101.6) 345.2
AMER AXLE & MFG AXL US 3,008.7 (101.6) 345.2
AMR CORP AAMRQ* MM 26,780.0 (7,922.0) 143.0
AMR CORP ACP GR 26,780.0 (7,922.0) 143.0
AMR CORP AAMRQ US 26,780.0 (7,922.0) 143.0
AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0
ANGIE'S LIST INC ANGI US 109.7 (23.0) (24.2)
ANGIE'S LIST INC 8AL GR 109.7 (23.0) (24.2)
ARRAY BIOPHARMA ARRY US 136.0 (21.9) 70.7
ARRAY BIOPHARMA AR2 TH 136.0 (21.9) 70.7
ARRAY BIOPHARMA AR2 GR 136.0 (21.9) 70.7
AUTOZONE INC AZO US 6,892.1 (1,687.3) (1,680.7)
AUTOZONE INC AZ5 GR 6,892.1 (1,687.3) (1,680.7)
AUTOZONE INC AZ5 TH 6,892.1 (1,687.3) (1,680.7)
BENEFITFOCUS INC BNFT US 54.8 (43.9) (3.6)
BENEFITFOCUS INC BTF GR 54.8 (43.9) (3.6)
BERRY PLASTICS G BP0 GR 5,045.0 (251.0) 550.0
BERRY PLASTICS G BERY US 5,045.0 (251.0) 550.0
BIOCRYST PHARM BO1 GR 39.9 (9.0) 21.6
BIOCRYST PHARM BCRX US 39.9 (9.0) 21.6
BIOCRYST PHARM BO1 TH 39.9 (9.0) 21.6
BOSTON PIZZA R-U BPZZF US 156.7 (108.0) (4.2)
BOSTON PIZZA R-U BPF-U CN 156.7 (108.0) (4.2)
BRP INC/CA-SUB V B15A GR 1,768.0 (496.6) (21.8)
BRP INC/CA-SUB V BRPIF US 1,768.0 (496.6) (21.8)
BRP INC/CA-SUB V DOO CN 1,768.0 (496.6) (21.8)
BURLINGTON STORE BUI GR 2,594.2 (421.3) 139.7
BURLINGTON STORE BURL US 2,594.2 (421.3) 139.7
CABLEVISION SY-A CVY GR 7,588.1 (5,565.5) (14.0)
CABLEVISION SY-A CVC US 7,588.1 (5,565.5) (14.0)
CAESARS ENTERTAI C08 GR 26,096.4 (1,496.8) 626.7
CAESARS ENTERTAI CZR US 26,096.4 (1,496.8) 626.7
CAPMARK FINANCIA CPMK US 20,085.1 (933.1) -
CC MEDIA-A CCMO US 15,296.5 (8,289.2) 1,259.4
CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1)
CENVEO INC CVO US 1,186.2 (503.8) 164.1
CHOICE HOTELS CZH GR 555.7 (484.7) 79.2
CHOICE HOTELS CHH US 555.7 (484.7) 79.2
CIENA CORP CIEN TE 1,727.4 (83.2) 763.4
CIENA CORP CIE1 TH 1,727.4 (83.2) 763.4
CIENA CORP CIE1 GR 1,727.4 (83.2) 763.4
CIENA CORP CIEN US 1,727.4 (83.2) 763.4
COMVERSE INC CNSI US 844.8 (9.4) (6.1)
COMVERSE INC CM1 GR 844.8 (9.4) (6.1)
DIAMOND RESORTS DRII US 1,073.5 (81.3) 682.4
DIAMOND RESORTS D0M GR 1,073.5 (81.3) 682.4
DIRECTV DTV US 20,921.0 (5,688.0) 622.0
DIRECTV DTV CI 20,921.0 (5,688.0) 622.0
DIRECTV DIG1 GR 20,921.0 (5,688.0) 622.0
DOMINO'S PIZZA EZV TH 468.5 (1,322.2) 76.9
DOMINO'S PIZZA EZV GR 468.5 (1,322.2) 76.9
DOMINO'S PIZZA DPZ US 468.5 (1,322.2) 76.9
DUN & BRADSTREET DNB US 1,838.5 (1,188.4) (174.3)
DUN & BRADSTREET DB5 TH 1,838.5 (1,188.4) (174.3)
DUN & BRADSTREET DB5 GR 1,838.5 (1,188.4) (174.3)
DYAX CORP DY8 GR 70.6 (38.8) 41.0
DYAX CORP DYAX US 70.6 (38.8) 41.0
EASTMAN KODAK CO KODK US 3,815.0 (3,153.0) (785.0)
EASTMAN KODAK CO KODN GR 3,815.0 (3,153.0) (785.0)
EVERYWARE GLOBAL EVRY US 340.7 (53.6) 134.8
FAIRPOINT COMMUN FRP US 1,606.4 (400.5) 19.6
FERRELLGAS-LP FEG GR 1,356.0 (86.6) (21.3)
FERRELLGAS-LP FGP US 1,356.0 (86.6) (21.3)
FIFTH & PACIFIC FNP US 846.2 (213.7) (64.6)
FIFTH & PACIFIC LIZ GR 846.2 (213.7) (64.6)
FIREEYE INC FEYE US 139.5 (45.0) (13.1)
FIREEYE INC F9E GR 139.5 (45.0) (13.1)
FOREST OIL CORP FST US 1,913.7 (67.4) (129.4)
FOREST OIL CORP FOL GR 1,913.7 (67.4) (129.4)
FREESCALE SEMICO 1FS TH 3,819.0 (4,526.0) 1,239.0
FREESCALE SEMICO 1FS GR 3,819.0 (4,526.0) 1,239.0
FREESCALE SEMICO FSL US 3,819.0 (4,526.0) 1,239.0
GENCORP INC GY US 1,750.4 (142.6) 111.1
GENCORP INC GCY TH 1,750.4 (142.6) 111.1
GENCORP INC GCY GR 1,750.4 (142.6) 111.1
GLG PARTNERS INC GLG US 400.0 (285.6) 156.9
GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9
GLOBAL BRASS & C 6GB GR 576.5 (37.0) 286.9
GLOBAL BRASS & C BRSS US 576.5 (37.0) 286.9
GOLD RESERVE INC GRZ CN 23.7 (0.1) (17.3)
GOLD RESERVE INC GDRZF US 23.7 (0.1) (17.3)
GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5
HCA HOLDINGS INC 2BH GR 27,934.0 (7,485.0) 1,771.0
HCA HOLDINGS INC 2BH TH 27,934.0 (7,485.0) 1,771.0
HCA HOLDINGS INC HCA US 27,934.0 (7,485.0) 1,771.0
HD SUPPLY HOLDIN 5HD GR 6,587.0 (753.0) 1,281.0
HD SUPPLY HOLDIN HDS US 6,587.0 (753.0) 1,281.0
HOVNANIAN ENT-A HOV US 1,664.1 (467.2) 950.2
HOVNANIAN ENT-A HO3 GR 1,664.1 (467.2) 950.2
HOVNANIAN ENT-B HOVVB US 1,664.1 (467.2) 950.2
HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8)
HUGHES TELEMATIC HUTC US 110.2 (101.6) (113.8)
IMMUNE PHARMACEU IMNP BY 1.0 (16.2) (8.9)
IMMUNE PHARMACEU EPCTSEK EU 1.0 (16.2) (8.9)
IMMUNE PHARMACEU IMNP SS 1.0 (16.2) (8.9)
INFOR US INC LWSN US 6,202.6 (476.4) (417.5)
INSYS THERAPEUTI NPR1 GR 22.2 (63.5) (70.0)
INSYS THERAPEUTI INSY US 22.2 (63.5) (70.0)
IPCS INC IPCS US 559.2 (33.0) 72.1
ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2
JUST ENERGY GROU JE CN 1,505.7 (215.4) (97.4)
JUST ENERGY GROU JE US 1,505.7 (215.4) (97.4)
JUST ENERGY GROU 1JE GR 1,505.7 (215.4) (97.4)
L BRANDS INC LTD TH 6,072.0 (861.0) 613.0
L BRANDS INC LTD US 6,072.0 (861.0) 613.0
L BRANDS INC LTD GR 6,072.0 (861.0) 613.0
LDR HOLDING CORP LDRH US 78.7 (0.6) 9.6
LEE ENTERPRISES LEE US 989.0 (102.6) (11.9)
LIN MEDIA LLC LIN US 1,221.8 (63.5) (97.2)
LIN MEDIA LLC L2M GR 1,221.8 (63.5) (97.2)
LIN MEDIA LLC L2M TH 1,221.8 (63.5) (97.2)
LORILLARD INC LLV TH 3,555.0 (2,042.0) 1,297.0
LORILLARD INC LLV GR 3,555.0 (2,042.0) 1,297.0
LORILLARD INC LO US 3,555.0 (2,042.0) 1,297.0
MACROGENICS INC MGNX US 42.2 (10.9) 9.9
MACROGENICS INC M55 GR 42.2 (10.9) 9.9
MANNKIND CORP MNKD US 212.4 (152.4) (234.6)
MANNKIND CORP NNF1 TH 212.4 (152.4) (234.6)
MANNKIND CORP NNF1 GR 212.4 (152.4) (234.6)
MARRIOTT INTL-A MAQ GR 6,480.0 (1,409.0) (776.0)
MARRIOTT INTL-A MAR US 6,480.0 (1,409.0) (776.0)
MARRIOTT INTL-A MAQ TH 6,480.0 (1,409.0) (776.0)
MARRONE BIO INNO MBII US 25.6 (47.8) (12.8)
MDC PARTNERS-A MDZ/A CN 1,365.7 (40.1) (211.1)
MDC PARTNERS-A MD7A GR 1,365.7 (40.1) (211.1)
MDC PARTNERS-A MDCA US 1,365.7 (40.1) (211.1)
MEDIA GENERAL-A MEG US 749.9 (217.2) 36.8
MERITOR INC MTOR US 2,477.0 (1,059.0) 278.0
MERITOR INC AID1 GR 2,477.0 (1,059.0) 278.0
MONEYGRAM INTERN MGI US 4,923.2 (116.3) 49.2
MORGANS HOTEL GR MHGC US 580.7 (163.7) 9.9
MORGANS HOTEL GR M1U GR 580.7 (163.7) 9.9
MPG OFFICE TRUST MPG US 1,280.0 (437.3) -
NATIONAL CINEMED NCMI US 952.5 (224.6) 128.8
NATIONAL CINEMED XWM GR 952.5 (224.6) 128.8
NAVISTAR INTL IHR TH 8,241.0 (3,933.0) 1,329.0
NAVISTAR INTL NAV US 8,241.0 (3,933.0) 1,329.0
NAVISTAR INTL IHR GR 8,241.0 (3,933.0) 1,329.0
NEKTAR THERAPEUT NKTR US 412.8 (40.5) 144.1
NEKTAR THERAPEUT ITH GR 412.8 (40.5) 144.1
NYMOX PHARMACEUT NY2 TH 1.4 (6.9) (2.7)
NYMOX PHARMACEUT NYMX US 1.4 (6.9) (2.7)
NYMOX PHARMACEUT NY2 GR 1.4 (6.9) (2.7)
OCI PARTNERS LP OCIP US 438.9 (122.9) 72.2
OMEROS CORP OMER US 23.1 (12.3) 10.4
OMEROS CORP 3O8 GR 23.1 (12.3) 10.4
OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0)
OPHTHTECH CORP OPHT US 40.2 (7.3) 34.3
OPHTHTECH CORP O2T GR 40.2 (7.3) 34.3
PALM INC PALM US 1,007.2 (6.2) 141.7
PDL BIOPHARMA IN PDLI US 401.4 (1.3) 46.7
PDL BIOPHARMA IN PDL TH 401.4 (1.3) 46.7
PDL BIOPHARMA IN PDL GR 401.4 (1.3) 46.7
PHILIP MORRIS IN PM1EUR EU 36,795.0 (5,908.0) (2.0)
PHILIP MORRIS IN PM1 TE 36,795.0 (5,908.0) (2.0)
PHILIP MORRIS IN PM FP 36,795.0 (5,908.0) (2.0)
PHILIP MORRIS IN 4I1 TH 36,795.0 (5,908.0) (2.0)
PHILIP MORRIS IN 4I1 GR 36,795.0 (5,908.0) (2.0)
PHILIP MORRIS IN PM1CHF EU 36,795.0 (5,908.0) (2.0)
PHILIP MORRIS IN PMI SW 36,795.0 (5,908.0) (2.0)
PHILIP MORRIS IN PM US 36,795.0 (5,908.0) (2.0)
PHILIP MRS-BDR PHMO34 BZ 36,795.0 (5,908.0) (2.0)
PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9)
PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9)
PLY GEM HOLDINGS PGEM US 1,102.0 (70.2) 194.4
PLY GEM HOLDINGS PG6 GR 1,102.0 (70.2) 194.4
PROTALEX INC PRTX US 2.0 (7.6) (0.5)
PROTECTION ONE PONE US 562.9 (61.8) (7.6)
QUALITY DISTRIBU QLTY US 474.4 (42.0) 99.0
QUINTILES TRANSN Q US 2,842.0 (712.0) 382.8
QUINTILES TRANSN QTS GR 2,842.0 (712.0) 382.8
RE/MAX HOLDINGS RMAX US 238.1 (23.7) 31.5
RE/MAX HOLDINGS 2RM GR 238.1 (23.7) 31.5
REGAL ENTERTAI-A RETA GR 2,608.4 (697.9) (21.2)
REGAL ENTERTAI-A RGC US 2,608.4 (697.9) (21.2)
RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4)
RENTPATH INC PRM US 208.0 (91.7) 3.6
REVLON INC-A RVL1 GR 1,259.4 (619.8) 192.4
REVLON INC-A REV US 1,259.4 (619.8) 192.4
RINGCENTRAL IN-A 3RCA GR 48.5 (20.7) (22.8)
RINGCENTRAL IN-A RNG US 48.5 (20.7) (22.8)
RITE AID CORP RAD US 7,169.0 (2,317.9) 1,943.6
RITE AID CORP RTA GR 7,169.0 (2,317.9) 1,943.6
RURAL/METRO CORP RURL US 303.7 (92.1) 72.4
SALLY BEAUTY HOL SBH US 1,925.8 (294.4) 503.5
SALLY BEAUTY HOL S7V GR 1,925.8 (294.4) 503.5
SILVER SPRING NE 9SI TH 513.9 (88.9) 76.3
SILVER SPRING NE 9SI GR 513.9 (88.9) 76.3
SILVER SPRING NE SSNI US 513.9 (88.9) 76.3
SUNESIS PHARMAC RYIN TH 50.6 (5.8) 15.3
SUNESIS PHARMAC RYIN GR 50.6 (5.8) 15.3
SUNESIS PHARMAC SNSS US 50.6 (5.8) 15.3
SUNGAME CORP SGMZ US 0.2 (2.0) (2.0)
SUPERVALU INC SVU US 4,738.0 (1,031.0) 154.0
SUPERVALU INC SJ1 TH 4,738.0 (1,031.0) 154.0
SUPERVALU INC SJ1 GR 4,738.0 (1,031.0) 154.0
TAUBMAN CENTERS TCO US 3,438.8 (211.5) -
TAUBMAN CENTERS TU8 GR 3,438.8 (211.5) -
THRESHOLD PHARMA NZW1 GR 104.5 (25.2) 80.0
THRESHOLD PHARMA THLD US 104.5 (25.2) 80.0
TOWN SPORTS INTE T3D GR 408.9 (40.4) (3.9)
TOWN SPORTS INTE CLUB US 408.9 (40.4) (3.9)
TROVAGENE INC-U TROVU US 9.6 (2.5) 7.1
ULTRA PETROLEUM UPL US 2,062.9 (441.1) (266.6)
ULTRA PETROLEUM UPM GR 2,062.9 (441.1) (266.6)
UNISYS CORP UIS US 2,237.7 (1,509.9) 411.6
UNISYS CORP UIS1 SW 2,237.7 (1,509.9) 411.6
UNISYS CORP UISCHF EU 2,237.7 (1,509.9) 411.6
UNISYS CORP USY1 GR 2,237.7 (1,509.9) 411.6
UNISYS CORP USY1 TH 2,237.7 (1,509.9) 411.6
UNISYS CORP UISEUR EU 2,237.7 (1,509.9) 411.6
VECTOR GROUP LTD VGR GR 1,121.0 (192.6) 316.7
VECTOR GROUP LTD VGR US 1,121.0 (192.6) 316.7
VENOCO INC VQ US 695.2 (258.7) (39.2)
VERISIGN INC VRS TH 2,330.0 (493.8) 97.7
VERISIGN INC VRS GR 2,330.0 (493.8) 97.7
VERISIGN INC VRSN US 2,330.0 (493.8) 97.7
VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3)
VISKASE COS I VKSC US 334.7 (3.4) 113.5
WEIGHT WATCHERS WW6 GR 1,408.2 (1,509.4) (79.8)
WEIGHT WATCHERS WTW US 1,408.2 (1,509.4) (79.8)
WEST CORP WSTC US 3,480.7 (782.6) 349.0
WEST CORP WT2 GR 3,480.7 (782.6) 349.0
WESTMORELAND COA WLB US 939.8 (280.3) 4.1
WESTMORELAND COA WME GR 939.8 (280.3) 4.1
XERIUM TECHNOLOG XRM US 600.8 (35.1) 123.8
XOMA CORP XOMA US 76.9 (16.9) 46.5
XOMA CORP XOMA GR 76.9 (16.9) 46.5
XOMA CORP XOMA TH 76.9 (16.9) 46.5
*********
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
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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 ***