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/raid1/www/Hosts/bankrupt/TCR_Public/131109.mbx T R O U B L E D C O M P A N Y R E P O R T E R Saturday, November 9, 2013, Vol. 17, No. 311 Headlines AMERICAN AIRLINES: Incurs $75 Million Net Loss in September CODA HOLDINGS: Records $1.07 Million Net Loss in August CODA HOLDINGS: Net Loss Drops to $692,579 in September FAIRMONT GENERAL: Files Initial Monthly Operating Report FRIENDFINDER NETWORKS: Files Initial Monthly Operating Report FRIENDFINDER NETWORKS: Posts $1.86 Million Net Loss at Sept. 30 HOSTESS BRANDS: Ends September with $90.62 Million Cash METRO FUEL: Lists $32,524 Net Loss at September 30 MSD PERFORMANCE: Lists $23,424 Net Income in September NIRVANIX INC: Files Initial Monthly Operating Report RAPID-AMERICAN CORP: Has $3.5 Million Cash Balance in September SAVIENT PHARMACEUTICALS: PROJECTS $6.38MM in Receipts Thru January SPECIALTY PRODUCTS: Posts $1.18 Million Net Loss in September VERTIS HOLDINGS: Reports $883,288 Consolidated Sept. Net Loss * Cross-Border Insolvency & Chapter 11 Webinar Set for Dec. 10 ********* AMERICAN AIRLINES: Incurs $75 Million Net Loss in September ----------------------------------------------------------- AMR Corporation and its subsidiaries, filed with the U.S. Securities and Exchange Commission, their monthly operating report for September 2013. AMR Corp. reported a net loss of $75 million on total operating revenues of $2 billion for September. On September 30, the Debtors had $26.78 billion in total assets, $34.70 billion in total liabilities, and a $7.92 billion total shareholders' deficit. At the beginning of the month, the Debtors had $643 million cash. The Debtors had total cash receipts of $715 million from operating and financing activities and total cash disbursements of $641 million for investing activities. Thus, at month end, the Debtors had $717 million cash. A copy of the September monthly operating report is available for free at the SEC at http://is.gd/2OLq0o About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. AMR's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). CODA HOLDINGS: Records $1.07 Million Net Loss in August ------------------------------------------------------- Adoc Holdings, Inc., formerly Coda Holdings, Inc. and its affiliates, on Oct. 31, 2013, filed its monthly operating report for August 2013. The Debtor reported a net loss of $1.07 million for August. As of Aug. 31, 2013, the Debtor had $21.95 million total assets, $117.36 million total liabilities and $133.96 million total stockholders' deficit. At the beginning of August, the Debtor had $2.26 million in cash while net cash used in operating activities was $1.07 million, resulting in $1.19 million cash at the end of the month. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/CODAHOLDINGS_augmor.pdf About CODA Holdings Los Angeles, California-based CODA Energy -- http://www.codaenergy.com-- made an electric auto that was a commercial failure. The company marketed the Coda Sedan, which sold only 100 copies. It was an electrically powered version of the Hafei Saibao, made in China. After bankruptcy, Los Angeles- based Coda intends to concentrate on making stationery electric- storage systems. CODA Holdings, Inc., Coda Energy LLC and three other affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-11153) on May 1, 2013, to enable the Company to complete a sale, confirm a plan, and emerge from bankruptcy in a stronger position to execute its new business plan. The Company expects the sale process to take 45 days to complete. FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group, is leading a consortium of lenders intending to provide DIP financing to enable the Company's energy storage business to remain fully operational during the restructuring process. The consortium, or its designee, will also as stalking horse bidder to acquire the Company post-bankruptcy. In addition, the Company will seek to monetize value of its existing automotive business assets. CODA disclosed assets of $10 million to $50 million and liabilities of less than $100 million. Coda Automotive Inc., disclosed $24,950,641 in assets and $95,859,413 in liabilities as of the Chapter 11 filing. The Debtors have incurred prepetition a significant amount of secured indebtedness: secured notes of with principal in the amount of $59.1 million; term loans in the principal amount of $12.6 million; and a bridge loan with $665,000 outstanding. FCO and other bridge loan lenders have "enhanced priority" over other secured noteholders that did not participate in the bridge loans, pursuant to the intercreditor agreement. Jeffrey M. Schlerf, Esq., John H. Strock, Esq., and L. John Bird, Esq., at Fox Rothschild LLP are the proposed counsel for the Debtors. CODA's legal advisor in connection with the restructuring is White & Case LLP. Emerald Capital Advisors serves as its chief restructuring officer and restructuring advisor, and Houlihan Lokey serves as its investment banker for the restructuring. Sidley Austin LLP is serving as FCO MA CODA Holdings LLC's legal advisor. Brent T. Robinson, Esq., at Robinson, Anthon & Tribe represents the Debtors in their restructuring efforts. The Committee tapped Brown Rudnick as its counsel and Deloitte Financial Advisory Services LLP as its financial advisor. CODA HOLDINGS: Net Loss Drops to $692,579 in September ------------------------------------------------------ Adoc Holdings, Inc., formerly Coda Holdings, Inc. and its affiliates, on Oct. 31, 2013, filed its monthly operating report for September 2013. The Debtor reported a net loss of $692,579 for September, as compared to a $1.07 million net loss reported in the previous month. As of September 2013, the Debtor had $21.26 million total assets, $117.36 million total liabilities, and $134.65 million total stockholders' deficit. At the beginning of September, the Debtor had $1.19 million in cash while net cash used in operating activities was $692,579 resulting in $496,359 cash at the end of September. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/CODAHOLDINGS_septmor.pdf About CODA Holdings Los Angeles, California-based CODA Energy -- http://www.codaenergy.com-- made an electric auto that was a commercial failure. The company marketed the Coda Sedan, which sold only 100 copies. It was an electrically powered version of the Hafei Saibao, made in China. After bankruptcy, Los Angeles- based Coda intends to concentrate on making stationery electric- storage systems. CODA Holdings, Inc., Coda Energy LLC and three other affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-11153) on May 1, 2013, to enable the Company to complete a sale, confirm a plan, and emerge from bankruptcy in a stronger position to execute its new business plan. The Company expects the sale process to take 45 days to complete. FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group, is leading a consortium of lenders intending to provide DIP financing to enable the Company's energy storage business to remain fully operational during the restructuring process. The consortium, or its designee, will also as stalking horse bidder to acquire the Company post-bankruptcy. In addition, the Company will seek to monetize value of its existing automotive business assets. CODA disclosed assets of $10 million to $50 million and liabilities of less than $100 million. Coda Automotive Inc., disclosed $24,950,641 in assets and $95,859,413 in liabilities as of the Chapter 11 filing. The Debtors have incurred prepetition a significant amount of secured indebtedness: secured notes of with principal in the amount of $59.1 million; term loans in the principal amount of $12.6 million; and a bridge loan with $665,000 outstanding. FCO and other bridge loan lenders have "enhanced priority" over other secured noteholders that did not participate in the bridge loans, pursuant to the intercreditor agreement. Jeffrey M. Schlerf, Esq., John H. Strock, Esq., and L. John Bird, Esq., at Fox Rothschild LLP are the proposed counsel for the Debtors. CODA's legal advisor in connection with the restructuring is White & Case LLP. Emerald Capital Advisors serves as its chief restructuring officer and restructuring advisor, and Houlihan Lokey serves as its investment banker for the restructuring. Sidley Austin LLP is serving as FCO MA CODA Holdings LLC's legal advisor. Brent T. Robinson, Esq., at Robinson, Anthon & Tribe represents the Debtors in their restructuring efforts. The Committee tapped Brown Rudnick as its counsel and Deloitte Financial Advisory Services LLP as its financial advisor. FAIRMONT GENERAL: Files Initial Monthly Operating Report -------------------------------------------------------- Fairmont General Hospital Inc. and its affiliates, on Oct. 31, 2013, filed an initial monthly operating report for the period from Oct. 6, 2013 to March 2, 2014. The Debtor forecasts a total of $37.39 million in total receipts and $38.97 million in total cash disbursements for the cash flow projection period. The Debtor also estimates an ending cash balance of $1.12 million for the 22-week period. A copy of the Initial MOR is available for free at: http://bankrupt.com/misc/FAIRMONTGENERAL_mor2.pdf About Fairmont General Fairmont General Hospital Inc. and Fairmont Physicians, Inc., which operate a 207-bed acute-care facility in Fairmont, West Virginia, sought Chapter 11 bankruptcy protection (Bankr. N.D. W.Va. Case No. 13-01054) on Sept. 3, 2013, listing between $10 million and $50 million in both assets and debts. The fourth-largest employer in Marion County, West Virginia, filed for bankruptcy as it looks to partner with another hospital or health system. The Debtors are represented by Rayford K. Adams, III, Esq., at Spilman Thomas & Battle, PLLC, in Winston-Salem, North Carolina; David R. Croft, Esq., at Spilman Thomas & Battle, PLLC, in Wheeling, West Virginia, and Michael S. Garrison, Esq., at Spilman Thomas & Battle, PLLC, in Morgantown, West Virginia. The Debtors' financial analyst is Gleason & Associates, P.C. The Debtors' claims and noticing agent is Epiq Bankruptcy Solutions. FRIENDFINDER NETWORKS: Files Initial Monthly Operating Report ------------------------------------------------------------- FriendFinder Networks, formerly Penthouse Media Group, filed an initial monthly operating report on Oct. 26, 2013. The Initial MOR includes a cash flow projection for the 12-month period from October 2013 through September 2014. For November 2013, the Debtor forecasts a $24.80 million beginning cash balance, $19.99 million in total receipts and $20.82 million in total disbursements, resulting to a $23.97 million ending cash balance. A copy of the Debtor's Initial MOR and 12-month cash flow forecast is available for free at: http://bankrupt.com/misc/FRIENDFINDERNETWORKS_mor.pdf About FriendFinder Networks FriendFinder Networks (formerly Penthouse Media Group) owns and operates a variety of social networking Web sites, including FriendFinder.com, AdultFriendFinder.com, Amigos.com, and AsiaFriendFinder.com. In total, its Web sites are offered in 12 languages to users in some 170 countries. The company also publishes the venerable adult magazine PENTHOUSE, and produces adult video content and related images. The Company is based in Boca Raton, Florida. FriendFinder Networks reported a net loss of $49.44 million in 2012, a net loss of $31.14 million in 2011, and a net loss of $43.15 million in 2010. FriendFinder Networks and affiliates, including lead debtor PMGI Holdings Inc., sought bankruptcy protection (Bankr. D. Del. Lead Case No. 13-12404) on Sept. 17, 2013, estimating assets of $465.3 million and debt totaling $662 million. The Debtors are represented by Nancy A. Mitchell. Esq., Matthew L. Hinker, Esq., and Paul T. Martin, Esq., at Greenberg Traurig, LLP, in New York, as lead bankruptcy counsel; and Dennis A. Meloro, Esq., in Wilmington, Delaware, as local Delaware counsel. Akerman Senterfitt serves as the Debtors' special and conflicts counsel. The Debtors' financial advisor is SSG Capital Advisors LLC. BMC Group, Inc., is the Debtors' claims and noticing agent. On Sept. 21, 2013, the Debtors filed a plan of reorganization containing details on a reorganization worked out with about 80 percent of first and second-lien lenders before the Sept. 17 Chapter 11 filing. Under the Plan, holders of the $234.3 million in 14 percent first-lien notes will receive accrued interest plus an equal amount in new 14 percent first-lien notes to mature in five years. Excess cash will be used in part to pay down principal on the notes before maturity. Holders of $330.8 million in two issues of second-lien notes are to receive all the new equity. FRIENDFINDER NETWORKS: Posts $1.86 Million Net Loss at Sept. 30 --------------------------------------------------------------- FriendFinder Networks, formerly Penthouse Media Group, and its affiliates, on Oct. 28, 2013, filed a monthly operating report for the period from Sept. 17, 2013 through Sept. 30, 2013. The Debtor's statement of operations showed a net loss from continuing operations of $1.86 million on $9.29 million of net revenues for the month. As of Sept. 30, 2013, the Debtor had $459.68 million in total assets, $668.34 million in total liabilities, and a $208.65 million total shareholders' deficit. At Sept. 17, the Debtor had a beginning book balance of $28.19 million. FriendFinder had total receipts of $18.02 million and total cash disbursements of $20.79 million for the entire month. As a result, the Debtor had $25.43 million cash at the end of the month. A copy of the monthly operating report is available at: http://bankrupt.com/misc/FRIENDFINDERNETWORKS_septmor.pdf 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. HOSTESS BRANDS: Ends September with $90.62 Million Cash ------------------------------------------------------- Old HB, Inc., f/k/a Hostess Brands, Inc., et al., on Oct. 25, 2013, filed an operating report for the period from Aug. 25 to Sept. 21, 2013. The Debtor reported a net loss of $26.45 million for the reporting period. As of Sept. 21, 2013, Hostess Brands had total assets of $317.36 million, total liabilities of $2.73 billion, and total stockholders' deficit of $2.42 billion. The Debtor had $43.85 million in unrestricted cash at the beginning of the reporting period. It had total cash receipts of $56.88 million and total cash disbursements of $10.12 million for the reporting period. At the end of the period, Hostess Brands had total cash of $90.62 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/HOSTESSBRANDS_aug-septmor.pdf About Hostess Brands Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known for iconic brands such as Butternut, Ding Dongs, Dolly Madison, Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride, Twinkies and Wonder. Hostess has 36 bakeries, 565 distribution centers and 570 outlets in 49 states. Hostess filed for Chapter 11 bankruptcy protection early morning on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through 12-22056) in White Plains, New York. Hostess Brands disclosed assets of $982 million and liabilities of $1.43 billion as of the Chapter 11 filing. The bankruptcy filing was made two years after predecessors Interstate Bakeries Corp. and its affiliates emerged from bankruptcy (Bankr. W.D. Mo. Case No. 04-45814). In the new Chapter 11 case, Hostess has hired Jones Day as bankruptcy counsel; Stinson Morrison Hecker LLP as general corporate counsel and conflicts counsel; Perella Weinberg Partners LP as investment bankers, FTI Consulting, Inc. to provide an interim treasurer and additional personnel for the Debtors, and Kurtzman Carson Consultants LLC as administrative agent. Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry Wilson, the head of turnaround and restructuring firm MAEVA Advisors, are representing the Teamsters union. Attorneys for The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union and Bakery & Confectionery Union & Industry International Pension Fund are Jeffrey R. Freund, Esq., at Bredhoff & Kaiser, P.L.L.C.; and Ancela R. Nastasi, Esq., David A. Rosenzweig, Esq., and Camisha L. Simmons, Esq., at Fulbright & Jaworski L.L.P. The official committee of unsecured creditors selected New York law firm Kramer Levin Naftalis & Frankel LLP as its counsel. Tom Mayer and Ken Eckstein head the legal team for the committee. Hostess Brands in mid-November 2012 opted to pursue the orderly wind down of its business and sale of its assets after the Bakery, Confectionery, Tobacco and Grain Millers Union (BCTGM) commenced a nationwide strike. The Debtor failed to reach an agreement with BCTGM on contract changes. Hostess Brands sold its businesses and most of the plants to five different buyers for an aggregate of $860 million. Hostess still has some plants, depots and other facilities the buyers didn't acquire. The bankruptcy estate has changed its name to Old HB Inc. METRO FUEL: Lists $32,524 Net Loss at September 30 -------------------------------------------------- Metro Fuel Oil Corp., et al., on Oct. 21, 2013, filed their monthly operating report for the month ended Sept. 30, 2013. The Debtor posted a net loss of $32,524 for September. As of Sept. 30, 2013, the Debtor had total assets of $17.84 million, total liabilities of $74.28 million, and total stockholders' deficit of $56.44 million. At the beginning of September, Metro Fuel had a beginning book cash balance of $17.56 million. The Debtor had $74,092 cash receipts and cash disbursements of $44,153. As a result, at the end of September, Metro Fuel had an ending book cash balance of $17.59 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/METROFUEL_septmor.pdf About Metro Fuel Metro Fuel Oil Corp., is a family-owned energy company, founded in 1942, that supplies and delivers bioheat, biodiesel, heating oil, central air conditioning units, ultra low sulfur diesel fuel, natural gas and gasoline throughout the New York City metropolitan area and Long Island. Owned by the Pullo family, Metro has 55 delivery trucks and a 10 million-gallon fuel terminal in Brooklyn. Financial problems resulted in part from cost overruns in building an almost-complete biodiesel plant with capacity of producing 110 million gallons a year. Based in Brooklyn, New York, Metro Fuel Oil Corp., fka Newtown Realty Associates, Inc., and several of its affiliates filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Lead Case No. 12-46913) on Sept. 27, 2012. Judge Elizabeth S. Stong presides over the case. Nicole Greenblatt, Esq., at Kirkland & Ellis LLP, represents the Debtor. The Debtor selected Epiq Bankruptcy Solutions LLC as notice and claims agent. Th Debtor tapped Carl Marks Advisory Group LLC as financial advisor and investment banker, Curtis, Mallet-Prevost, Colt & Mosle LLP as co-counsel, AP Services, LLC as crisis managers for the Debtors, and appoint David Johnston as their chief restructuring officer. The petition showed assets of $65.1 million and debt totaling $79.3 million. Liabilities include $58.8 million in secured debt, with $48.3 million owing to banks and $10.5 million on secured industrial development bonds. Metro Terminals Corp., affiliate of Metro Fuel Oil Corp., disclosed $38,613,483 in assets and $71,374,410 in liabilities as of the Chapter 11 filing. The U.S. Trustee appointed seven-member creditors committee. Kelley Drye & Warren LLP represents the Committee. The Committee tapped FTI Consulting, Inc. as its financial advisor. On Feb. 15, 2013, the Bankruptcy Court entered an order approving the sale of substantially all of the assets of the Debtors to United Refining Energy Corp., for base purchase price of $27,000,000, subject to adjustments. MSD PERFORMANCE: Lists $23,424 Net Income in September ------------------------------------------------------ MSD Performance, Inc., and its affiliates, on Oct. 31, 2013, filed a monthly operating report for September 2013. The Debtors' consolidated statement of operations showed a net income from continuing operations of $23,424 on $5.6 million of net revenues for the month. As of Sept. 5, 2013, the Debtors had $55.54 million in total assets, $103.47 million in total liabilities, and a $47.93 million total shareholders' deficit. At September 6, the Debtors had a beginning book balance of $3.81 million. They had total receipts of $7.82 million and total cash disbursements of $6.18 million for the entire month. As a result, the Debtors had $5.45 million cash at the end of the month. A copy of the monthly operating report is available at: http://bankrupt.com/misc/MSDPERFORMANCE_septmor.pdf About MSD Performance MSD Performance, Inc., headquartered in El Paso, Texas, operates in the power sports enthusiast and professional racer markets where the company maintains leading market share positions across all of its product categories under the MSD Ignition(R), Racepak(R) and Powerteq(R) brands. The company's facilities encompass over 220,000 square feet in six buildings, five of which are located across the U.S. and one in Shanghai, China. MSD Performance and its U.S. affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12286) on Sept. 6, 2013. Ron Turcotte signed the petitions as CEO. The Debtors estimated assets of at least $50 million and debts of at least $100 million. The Debtors' restructuring counsel is Jones Day. Their investment banker is SSG Advisors, LLC. The Debtors are also represented by Richards Layton and Finger, as local counsel. Logan & Co. is the claims and notice agent. The Official Committee of Unsecured Creditors appointed in the case retained Blank Rome LLP as counsel, and Carl Marks Advisory Group LLC as financial advisors. NIRVANIX INC: Files Initial Monthly Operating Report ---------------------------------------------------- Nirvanix, Inc., on Oct. 17, 2013, filed an initial monthly operating report disclosing a cash flow projection for the 2-month period from Oct. 1, 2013 through Nov. 30, 2013. The Debtor forecasts $3.98 million in total cash receipts and $2.35 million in total disbursemesnts for the 2-month period. A copy of the Initial MOR and 2-mo. cash flow forecast is available for free at http://bankrupt.com/misc/NIRVANIXINC_mor.pdf About Nirvanix, Inc. Cloud storage company Nirvanix, Inc., based in San Diego, California, sought protection under Chapter 11 of the Bankruptcy Code on Oct. 1, 2013 (Case No. 13-12595, Bankr. D.Del.). The case is assigned to Judge Brendan Linehan Shannon. The Debtor is represented by Norman L. Pernick, Esq., Marion M. Quirk, Esq., and Patrick J. Reilley, Esq., at COLE, SCHOTZ, MEISEL, FORMAN & LEONARD, PA. Cooley LLP serves as the Debtor's special corporate counsel. Arch & Beam Global LLC serves as the Debtor's financial advisor. Epiq Systems Inc. is the Debtor's claims and noticing agent. The Debtor disclosed estimated assets of $10 million to $50 million and estimated debts of $10 million to $50 million. The petition was signed by Debra Chrapaty, CEO. RAPID-AMERICAN CORP: Has $3.5 Million Cash Balance in September --------------------------------------------------------------- Rapid-American Corporation, on Oct. 8, 2013, filed its monthly operating report for the month ended September 2013. As of start of the month, the company had $3.67 million cash. It spent $167,833 in expenses. Thus, for the end of September, the Company had total cash of $3.5 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/RAPIDAMERICAN_septmor.pdf About Rapid-American Corp. Rapid-American Corp. filed for Chapter 11 bankruptcy protection in Manhattan (Bankr. S.D.N.Y. Case No. 13-10687) on March 8, 2013, to deal with debt related to asbestos personal-injury claims. New York-based Rapid-American was formerly a holding company with subsidiaries primarily engaged in retail sales and consumer products and was never engaged in an asbestos business of any kind. Through a series of merger transactions going back more than 45 years, Rapid has nevertheless incurred successor liability for personal injury claims arising from plaintiffs' exposure to asbestos-containing products sold by The Philip Carey Manufacturing Company -- Old Carey -- as that entity existed prior to June 1, 1967. Attorneys at Reed Smith LLP serve as counsel to the Debtor. The Debtor disclosed assets in excess of $4,446,261 and unknown liabilities. The Official Committee of Unsecured Creditors retained Caplin & Drysdale, Chartered, as counsel. Young Conaway Stargatt & Taylor, LLP represents Lawrence Fitzpatrick, the Future Claimants' Representative, as counsel. SAVIENT PHARMACEUTICALS: PROJECTS $6.38MM in Receipts Thru January ------------------------------------------------------------------ Savient Pharmaceuticals, Inc., et al., filed with the U.S. Securities and Exchange Commission an initial monthly operating report. The Initial MOR includes a cash flow projection for the 13-week period covering the week ended Oct. 18, 2013 through the week ended Jan. 10, 2014. The Debtors project cash collections to total $6.38 million for the 13-week period, and disbursements to total $7.67 million for the same period. The disbursements include $3.14 million in payroll costs, $1.62 million in accounts payable-related expenses, and $1.57 million in restructuring costs. The Initial MOR also include a schedule of retainers paid to professionals in 2013. Among the Debtors' bankruptcy professionals are Skadden Arps Slate Meagher & Flom LLP, Arnold & Porter (UK) LLP, and Cole Schotz Meisel Forman & Leonard, P.A. A copy of the Initial MOR is available at the SEC at: http://is.gd/Jw8l8P About Savient Pharmaceuticals Headquartered in Bridgewater, New Jersey, Savient Pharmaceuticals, Inc. -- http://www.savient.com/-- is a specialty biopharmaceutical company focused on developing and commercializing KRYSTEXXA(R) (pegloticase) for the treatment of chronic gout in adult patients refractory to conventional therapy. Savient has exclusively licensed worldwide rights to the technology related to KRYSTEXXA and its uses from Duke University and Mountain View Pharmaceuticals, Inc. The Company and its affiliate, Savient Pharma Holdings, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-12680) on Oct. 14, 2013. The Debtors are represented by Kenneth S. Ziman, Esq., and David M. Turetsky, Esq., at Skadden Arps Slate Meagher & Flom LLP, in New York; and Anthony W. Clark, Esq., at Skadden Arps Slate Meagher & Flom LLP, in Wilmington, Delaware. Cole, Schotz, Meisel, Forman & Leonard P.A., also serves as the Company's conflicts counsel, and Lazard Freres & Co. LLC serves as its financial advisor. U.S. Bank National Association, as Indenture Trustee and Collateral Agent, is represented by Clark T. Whitmore, Esq., at Maslon Edelman Borman & Brand, LLP, in Minneapolis, Minnesota. The Unofficial Committee of Senior Secured Noteholders is represented by Andrew N. Rosenberg, Esq., Elizabeth McColm, Esq., and Jacob A. Adlerstein, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, in New York; and Pauline K. Morgan, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware. SPECIALTY PRODUCTS: Posts $1.18 Million Net Loss in September ------------------------------------------------------------- Specialty Products Holding Corp., on Oct. 28, 2013, filed its monthly operating report for September 2013. The Debtor posted a net loss of $1.18 million for the month. As of September 2013, the Debtor had total assets of $429.36 million, total liabilities of $228.73 million, and total stockholders' equity of $200.63 million. At the beginning of August, the Debtor had $8.98 million in cash. Specialty Products had total cash receipts of $36.78 million and total cash disbursements of $33.53 million for the month. As a result, at the end of September, the Company had total cash of $12.23 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/SPECIALTYPRODUCTS_septmor.pdf About Specialty Products Cleveland, Ohio-based Specialty Products Holdings Corp., aka RPM, Inc., is a wholly owned subsidiary of RPM International Inc. The Company is the holding company parent of Bondex International, Inc., and the direct or indirect parent of certain additional domestic and foreign subsidiaries. The Company claims to be a leading manufacturer, distributor and seller of various specialty chemical product lines, including exterior insulating finishing systems, powder coatings, fluorescent colorants and pigments, cleaning and protection products, fuel additives, wood treatments and coatings and sealants, in both the industrial and consumer markets. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-11780) on May 31, 2010. Gregory M. Gordon, Esq., Dan B. Prieto, Esq., and Robert J. Jud, Esq., at Jones Day, serve as bankruptcy counsel. Daniel J. DeFranceschi, Esq., and Zachary I. Shapiro, Esq., at Richards Layton & Finger, serve as co- counsel. Logan and Company is the Company's claims and notice agent. The Company estimated its assets and debts at $100 million to $500 million. The Company's affiliate, Bondex International, Inc., filed a separate Chapter 11 petition on May 31, 2010 (Case No. 10-11779), estimating its assets and debts at $100 million to $500 million. On May 20, 2013, the Bankruptcy Court entered an order estimating the amount of the Debtors' asbestos liabilities, and a related memorandum opinion in support of the estimation order. The Bankruptcy Court estimated the current and future asbestos claims associated with Bondex International, Inc. and Specialty Products Holding at approximately $1.17 billion. The estimation hearing represents one step in the legal process in helping to determine the amount of potential funding for a 524(g) asbestos trust. VERTIS HOLDINGS: Reports $883,288 Consolidated Sept. Net Loss ------------------------------------------------------------- Vertis Holdings, Inc., et al., filed on Oct. 25, 2013, their monthly operating report for September 2013. The Debtors' consolidated statement of operations reported a $883,288 net loss with zero operating revenues for the month. As of September 30, the Debtors had $91.27 million in total assets, $525.44 in total liabilities, and a $434.17 in total shareholders' deficit. At the beginning of the month, the Debtors had $12.99 million cash. The Debtors had total cash receipts of $371,147 and total cash disbursements of $2.72 million, which include $522,403 in professional fees. Thus, at September 30, the Debtors had $10.65 million cash. A copy of the monthly operating report is available for free at: http://bankrupt.com/misc/VERTIS_HOLDINGS_septmor.pdf About Vertis Holdings Vertis Holdings Inc. -- http://www.thefuturevertis.com/-- provides advertising services in a variety of print media, including newspaper inserts such as magazines and supplements. Vertis and its affiliates (Bankr. D. Del. Lead Case No. 12-12821), returned to Chapter 11 bankruptcy on Oct. 10, 2012, this time to sell the business to Quad/Graphics, Inc., for $258.5 million, subject to higher and better offers in an auction. As of Aug. 31, 2012, the Debtors' unaudited consolidated financial statements reflected assets of approximately $837.8 million and liabilities of approximately $814.0 million. Bankruptcy Judge Christopher Sontchi presides over the 2012 case. Vertis is advised by Perella Weinberg Partners, Alvarez & Marsal, and Cadwalader, Wickersham & Taft LLP. Quad/Graphics is advised by Blackstone Advisory Partners, Arnold & Porter LLP and Foley & Lardner LLP, special counsel for antitrust advice. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Quad/Graphics is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts/circulars, direct mail, books, directories, and commercial and specialty products, including in-store signage. Headquartered in Sussex, Wis. (just west of Milwaukee), the Company has approximately 22,000 full-time equivalent employees working from more than 50 print-production facilities as well as other support locations throughout North America, Latin America and Europe. Vertis first filed for bankruptcy (Bankr. D. Del. Case No. 08- 11460) on July 15, 2008, to complete a merger with American Color Graphics. ACG also commenced separate bankruptcy proceedings. In August 2008, Vertis emerged from bankruptcy, completing the merger. Vertis against filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 10-16170) on Nov. 17, 2010. The Debtor estimated its assets and debts of more than $1 billion. Affiliates also filed separate Chapter 11 petitions -- American Color Graphics, Inc. (Bankr. S.D.N.Y. Case No. 10-16169), Vertis Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10-16170), Vertis, Inc. (Bankr. S.D.N.Y. Case No. 10-16171), ACG Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10- 16172), Webcraft, LLC (Bankr. S.D.N.Y. Case No. 10-16173), and Webcraft Chemicals, LLC (Bankr. S.D.N.Y. Case No. 10-16174). The bankruptcy court approved the prepackaged Chapter 11 plan on Dec. 16, 2010, and Vertis consummated the plan on Dec. 21. The plan reduced Vertis' debt by more than $700 million or 60%. GE Capital Corporation, which serves as DIP Agent and Prepetition Agent, is represented in the 2012 case by lawyers at Winston & Strawn LLP. Morgan Stanley Senior Funding Inc., the agent under the prepetition term loan, and as term loan collateral agent, is represented by lawyers at White & Case LLP, and Milbank Tweed Hadley & McCloy LLP. On Jan. 16, 2013, Quad/Graphics completed the acquisition of Vertis Holdings for a net purchase price of $170 million. This assumes the purchase price of $267 million less the payment of $97 million for current assets that are in excess of normalized working capital requirements. * Cross-Border Insolvency & Chapter 11 Webinar Set for Dec. 10 -------------------------------------------------------------- Five restructuring professionals, including the Honorable Kevin J. Carey, United States Bankruptcy Court, District of Delaware, will define and discuss the complexity of cross-border insolvency and Chapter 15 bankruptcy. Joining Judge Carey will be: -- Thomas J. Salerno, Esq., Partner, Squire Sanders (US) LLP, -- Nava Hazan, Esq., Partner, Squire Sanders (US) LLP, -- Margot MacInnis, Managing Director, KRyS Global (Cayman Islands), and -- Michael Morrison, Partner, KPMG (Bermuda). Ms. Hazan will lead a discussion on how Chapter 15 of the U.S. Bankruptcy Code provides a mechanism for a company in a foreign insolvency to seek injunctive relief against litigation in U.S. courts or U.S. bankruptcy court assistance in the administration and protection of its U.S. assets. The panel will also address the topic of how Chapter 15 can be used as a tool to bind creditors, including creditors in the U.S., to the terms of a plan of reorganization approved by a foreign court. The event faculty will convene on Tuesday, December 10, 2013, at 11:00 a.m., Eastern Time, to share their observations and practice tips during a live 90-minute webinar. Visit http://bankrupt.com/webinars/for more information and to register for the webinar. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2013. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. *** End of Transmission ***