04-09-2009, 01:09 PM
CREDITOR’S EDGE
(The Nation’s Oldest Daily Business E-Newspaper)
—The Day’s News in Capsule Form—
A Product of Bastien Financial Publications
(For more information contact us at 847-491-1900
or email <!-- e --><a href="mailto:usbj7@yahoo.com">usbj7@yahoo.com</a><!-- e -->)
Tuesday
April 7, 2009
(This daily e-newspaper is a copyrighted publication for the exclusive use
of the recipient only and is not to be forwarded or copied
in whole or in part for use by any other party.)
Educational Tidbits
For Today's Financial Executive
What to Expect in a Chapter 11 Filing
While a trustee oversees a Chapter 7 bankruptcy filing, in a Chapter 11 situation a debtor becomes the debtor in possession and holds the right to keep the property of the bankrupt estate and continue operating its business. Trustees are not always appointed in Chapter 11 cases and the debtor is required to attend the 341 meeting of creditors within forty days of the bankruptcy filing. For 120 days following the bankruptcy filing, the debtor in possession has the exclusive right to present a reorganization plan for the company, including how to deal with creditors’ claims. Typically creditors with at least two-thirds of the claims’ amount and more than half the claim number must go along with the plan for it to become effective. The debtor usually has about six months from the filing to win acceptance of the reorganization plan from its creditors.
The Business Professional’s
Q&A Corner
YESTERDAY’S QUESTION: Explain the importance of liquidation analysis in a Chapter 11 bankruptcy filing.
ANSWER: When a company files Chapter 11, the creditors’ committee should determine the likely distribution to unsecured creditors from the standpoint of the liquidation of the debtors' business. The committee should update that analysis if the situation changes. Such an analysis should be made even if liquidation is inadvisable and not considered, since the results of the hypothetical liquidation are an essential factor of both the rights and the bargaining power of the unsecured creditors. It should be noted that a reorganization plan can be confirmed only if it promises unsecured creditors at least as much as they would get from a Chapter 7 liquidation.
QUESTION: Explain what a “liquidating reorganization†is.
ANSWER NEXT ISSUE
Today's Headlines:
The Labor Department reported that U.S. companies dumped more than 660,000 jobs in March, bringing the nation’s unemployment rate to 8.5%. That’s the highest rate of joblessness since 1983.
AES Corp. to offer unsecured notes to help pay down debt...
American Woodmark to shutter two production plants...
BSN Medical to close its FLA Orthopedics unit in Florida...
CareFusion Corp. to cut 1,300 jobs...
Innotrac Corp. narrows its fiscal loss...
International Business Machines Corp. drops its buyout bid for Sun Microsystems Inc....
International Paper Co. continues closing and idling plants...
Kohler Co. to cut more than 450 jobs...
Lincoln National Corp.’s debt payments strain its liquidity...
MGM Mirage looks to sell two properties...
New York Times Co. warns its Boston Globe workers that it needs cost concessions...
Textron Inc. is selling its HR Textron unit...
BANKRUPTCY NEWS
(For more information on these (or any) bankrupt firms
call the 800-number in your U.S. Bankruptcy Court Directory
available through Bastien Financial Publications.)
Aztec Land Holdings LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Michigan. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-50129. For more information contact the court at 877-422-3066.
B.R.L. Development Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the Western District of Michigan. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-03996. For more information contact the court at 616-456-2075.
Bloomsouth Flooring Corp., Canton, Ma., filed Chapter 11. The firm listed assets of between $500,000 and $1 million and liabilities of between $1 million and $10 million.
BSW International Inc. filed Chapter 7 in the U.S. Bankruptcy Court in Tulsa, Ok. No assets were listed and liabilities were listed at $5.3 million. The case number is 09-10814.
Central Heating & Air Inc. filed Chapter 7 in the U.S. Bankruptcy Court in Tulsa, Ok. listing assets and liabilities of less than $500,000 each. The case number is 09-10868.
CET Racing LC filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-02434. For more information contact the court at 866-879-1286.
DelSite Inc., an Irving, Tx. drug-development concern, filed Chapter 7 after failing to raise additional funding and will liquidate. Recently the firm’s assets were estimated at between $1 million and $10 million and its liabilities were estimated to be between $10 million and $50 million.
Dink Properties Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Central District of California. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-17655. For more information contact the court at 213-894-4111.
Fleetwood Enterprises Inc. has seen a 5/27 creditors’ meeting scheduled in its Chapter 11 bankruptcy. For more information contact the U.S. Bankruptcy Court in California at 909-774-1150.
Gulf Coast Transport Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-31896. For more information contact the court at 800-866-9008.
Hilton Properties Leasing LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $100 million. The case number is 09-31960. For more information contact the court at 800-886-9008.
InnoVision Health Media, a medical publishing company, was acquired by two private-equity firms and has emerged from Chapter 11 protection. InnoVIsion will continue operating in Boulder, Co.
Lexington Village LP filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Pennsylvania. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-02499. For more information contact the court at 877-440-2699.
Magna Entertainment’s unsecured creditors’ committee objected to the company’s request for postpetition financing and the use of cash collateral, among other matters.
Neshco Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Arkansas. The firm listed assets of less than $100,000 and liabilities of between $1 million and $100 million. The case number is 09-12349. For more information contact the court at 800-891-6741.
Nova Biosource, a biodiesel firm, filed Chapter 11 in the U.S. Bankruptcy Court in Wilmington, De. listing assets of more than $100 million and liabilities of more than $50 million. Nova, which in its first quarter lost $11 million, intends to continue operating.
Payman Car Wash Management Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Central District of California. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-17732. For more information contact the court at 213-894-4111.
Rangeline Properties LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-31921. For more information contact the court at 800-886-9008.
Rockwood Square LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-32078. For more information contact the court at 800-326-5879.
Stockdale Music in California, a company that makes and repairs musical instruments, filed Chapter 7, listing assets and liabilities of between $500,000 and $1 million each.
Top Notch Limousine & Executive Services filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of California. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $100 million. The case number is 09-26096. For more information contact the court at 916-551-2989.
Young Broadcasting received approval from the U.S. Bankruptcy Court for bidding procedures regarding the sale of certain assets.
DISTRESSED / RAPIDLY-EXPANDING COMPANIES
&
OTHER COMPANY NEWS
AES Corp., an Arlington, Va. power supplier, will offer $535 million in unsecured notes in a move to help it pay down its short-term debt, including more than $360 million in debt notes due over the next two years. The firm also extended a deadline for part of a separate $750 million loan that had been scheduled to mature in June of 2010. As of the end of last year, the $16 billion company had $900 million in unrestricted cash and equivalents and $2.8 billion in other investments, cash and debt reserves.
American Airlines, Fort Worth, Tx., reported that its traffic for March fell more than 10%–to 10.3 billion revenue passenger miles.
American Electric Power Inc., Columbus, Oh., reduced its earnings guidance for this year, partly because of being refused the rate of increase that it had asked regulators for. Also, earnings estimates were lowered as the company will sell common shares to raise cash to reduce debt. As a result, AEP will slash its capital spending for 2009. The big power company last year reported earnings of $1.4 billion on revenue of $14.6 billion.
American Woodmark, a Winchester, Va. maker of kitchen and bathroom cabinets, is permanently shutting down two production plants as it cuts back production. The downsizing will result in $17 million in pretax expenses but will also save it $20 million a year.
AT&T Inc. will continue labor negotiations with the Communications Workers of America, a union representing 90,000 of its landline-unit workers. The extension of talks sidesteps a possible strike.
Aushon BioSystems Inc., a Billerica, Ma. firm which recently acquired some assets from Thermo Fisher Scientific Inc., arranged venture-capital financing of $6.5 million. Aushon provides laboratory products and services.
Author Solutions Inc., a so-called self-publishing company, expanded by purchasing Trafford Publishing, a closely-held Canadian competitor, for an undisclosed amount. Only three months ago Author Solutions bought Xlibris, another competitor. Author Solutions, a print-on-demand company, operates under the names AuthorHouse and iUniverse. It is owned by Bertram Capital Management LLC.
Boston Private Financial Holdings Inc., Boston, Ma., sold off its three-fourths interest in Sand Hill Advisors of Palo Alto, Ca. for an undisclosed amount.
BSN Medical of Germany is closing its FLA Orthopedics unit in Miramar, Fl., where it makes braces and other medical equipment, and moving the operation to Mexico. The move affects more than 160 jobs in Florida.
CareFusion Corp., which is being spun off by Cardinal Health Inc. this summer, will cut 1,300 jobs over the next six months, due to declining orders from hospitals. CareFusion, which makes infusion pumps and other medical equipment, will lay off 800 workers and not fill another 500 positions that will likely be open or otherwise vacated as the spinoff takes place. The San Diego, Ca. company last year reported earnings of $662 million on revenue of $4.5 billion, a relatively small part of Cardinal’s overall sales.
Charlotte Eye Ear Nose & Throat Associates added another office in Charlotte, N.C., bringing its number of area locations to fifteen.
Chrysler LLC’s banks are trying to buck pressure from the U.S. government to exchange $5 billion of $6.8 billion in loans for equity in the ailing carmaker. Those banks, including Citigroup Inc., Morgan Stanley, Goldman Sachs Group Inc. and J.P. Morgan Chase & Co., are secured debtholders and as such hold the right to seize control of Chrysler’s assets if it files Chapter 11. Thus, a bankrupt Chrysler is worth more to the lenders than swapped debt. The reluctance of the banks to go along with the government’s request could be a roadblock to Chrysler’s efforts to reorganize out of court and could threaten the company’s efforts to align itself with Fiat SpA by next month.
Continental Automotive Systems, a unit of Germany’s Continental AG, plans to shutter its facility in Elma, N.Y. by the end of this year and has in the meantime put the plant up for sale for an asking price of $9.7 million. The company is shifting work to Asia.
FKI Logistex Inc., a big St. Louis, Mo. automated material handling concern, said that it trimmed its payroll at its operations around the U.S., although it provided few other details.
FMC Technologies Inc., a Houston, Tx. energy technology firm, is selling its interest in Norwegian offshore-technology company Roxar ASA to Emerson Electric Co. of St. Louis, Mo. for an undisclosed amount.
Fried, Frank, Harris, Shriver & Jacobson, a law firm with offices in New York, Washington, D.C. and elsewhere, will cut 100 jobs at its U.S. operations, including forty-one attorneys.
Good Harbor Consulting LLC, an Arlington, Va. provider of strategic-security and safety-risk management services, expanded by acquiring Techmark Security Integration Inc. of Boston, Ma. for an undisclosed amount.
Heartland Payment Systems, a New Jersey-based provider of credit-card-payment processing services, has been sued in class-action litigation over a data breach when a hacker gained access to customer accounts.
Hibbett Sports Inc., Birmingham, Al., has its sights set on opening up to seventy new sporting-goods stores in fiscal 2010. That’s a somewhat slower pace than last year and is tempered by plans to close between twenty and twenty-five locations. Currently Hibbett has almost 750 locations in two dozen states. In its most recent fiscal year, Hibbett had net sales of $564 million, up from $521 million in the prior year.
Hogan & Hartson LLP, Washington, D.C.-based law firm, laid off more than ninety of its legal staffers and will reduce some attorneys’ salaries. Hogan & Hartson has 2,500 employees, with almost half of them lawyers.
Iberiabank Corp., a bank holding company in Tennessee, repurchased $90 million in preferred stock that it had sold to the Treasury Department last fall.
Information Analysis Inc., an unprofitable Fairfax, Va. provider of information technology services, said it is looking into business opportunities such as finding a partner or buyer.
Innotrac Corp., a Duluth, Ga. order processing, fulfillment and call-center company, reported its 2008 net income soared almost fivefold–to $3.3 million, on an 8% revenue increase–to $131 million.
Intelligent Systems Corp., a Norcross, Ga. software and services firm, reported a lowered 2008 loss of $823,000, down from a $2.4 million loss in the prior year. Revenue increased 3%–to $15.8 million. The results included the benefit of a gain from the sale of an operation.
International Paper Co., Memphis, Tn., is idling a mill in Ticonderoga, N.Y. due to the economic slowdown, in a move that affects 600 workers. The wood-products maker is also permanently shutting a cardboard plant in Kansas City, Ks., affecting another 100 workers, and it earlier said it would close a 123-employee Franklin, Va. facility.
International Business Machines Corp., Armonk, N.Y., pulled its $7 billion bid to acquire Sun Microsystems Inc., following news that Sun’s board was apparently lukewarm about a reduced offer. The apparent collapse of the deal raises questions about Sun, which is actually valued at less than what IBM was offering even under the lowered bid. IBM had reduced its offer from $9.55 to $9.40 a share, prompting Sun, the Santa Clara, Ca. maker of high-end computers, to drop out of its exclusive talks with IBM. Sun also blamed issues such as possible antitrust problems in a merger with Big Blue.
IVenture Solutions Inc., a Jacksonville, Fl. information technology and services provider, purchased a crosstown competitor, JP2 Technologies Inc., for an undisclosed amount.
Kansas City Star, a unit of McClatchy Co., will combine several sections of its newspaper in a move to reduce costs.
Kohler Co., a Wisconsin manufacturer of plumbing fixtures, engines and other products, will cut more than 450 jobs at its headquarters in Kohler, Wi., due to a dropoff in sales. Kohler employs more than 6,300 workers in Sheboygan County, Wi.
Lecere Corp., a Rochester, Mn. software firm, wants to raise more than $7 million through a private placement, using proceeds for its business and market strategies. The company makes software for the restaurant and hospitality sectors.
Lincoln National Corp., the Radnor, Pa.-based life insurer, is raising worries among investors as its liquidity comes under pressure. The firm this week is handing out $500 million to pay down debt and faces another $375 million commercial-paper payment due next month. Unfortunately, because of credit ratings downgrades, Lincoln National failed to be approved for assistance from the Treasury Department’s commercial-paper program. As it tries to deal with its debt pressures and a battered portfolio, Lincoln National’s shares are down more than 90% from a high almost two years ago.
MGM Mirage, Las Vegas, Nv., retained Morgan Stanley to help line up possible suitors for two of its strongest cash-flow operations, the MGM Grand Detroit in Michigan and the Beau Rivage casino in Mississippi. MGM is trying to raise cash as payment obligations on its more than $13 billion mountain of debt come due.
New York Times Co., Manhattan, N.Y., told workers at its Boston Globe unit that it will shut down the Massachusetts newspaper unless it can get about $20 million in labor concessions through wage cuts and other measures. The Times is trying to reduce its losses amid the slump in the newspaper sector, but also the Boston Globe has been an ongoing headache for the Times. Sixteen years ago the Times paid $1.1 billion for the Boston Globe, which has plunged in value, according to one analyst, to between $12 million and $20 million.
Old National Bancorp, Evansville, In., bought back all $100 million in preferred shares that it had earlier sold to the Treasury Department.
Petrosearch Energy Corp., a Nevada energy company with offices in Houston, Tx., is merging with Double Eagle Petroleum Co., a natural gas developer in Wyoming, in a $9.3 million stock deal. The combined firm will be 84%-controlled by Double Eagle’s shareholders and will operate under the Double Eagle name.
Pizza Fusion, a Fort Lauderdale, Fl. maker of organic pizzas, signed a franchise agreement with Samir Food Co. Ltd. to set up locations in Saudi Arabia.
Pliant Technology Inc., a Milpitas, Ca. manufacturer of flash drives, won $15 million in another round of venture financing, which it will use to boost production.
Powell Industries Inc., a Houston, Tx. manufacturer of electrical equipment, won a contract to produce an electric power system for the Washington Metropolitan Area Transit Authority in Texas. The contract is worth $46 million.
Pro’s Ranch Markets, Ontario, Ca., is opening an upscale hispanic-oriented grocery store in Mesa, Az., bringing its number of locations in Arizona to five. Pro’s Ranch will hire 400 workers at the new location in Mesa.
Rehabilitation Hospital of the Pacific, an acute-care facility in Hawaii, is closing two of its outpatient clinics on Oahu as it seeks to remain in the black. The move results in the loss of fourteen jobs.
Saba Software Inc., Redwood City, Ca., reported sharply higher net income of $1.3 million for its third quarter, up from about $160,000 a year ago. Revenue fell slightly–to $26 million. Not including extra expenses, income for the period was $3.2 million.
Sysco Corp., the big Houston, Tx. foodservices company, purchased Pallas Foods Ltd., a foodservices distributor in Ireland, for an undisclosed amount. Pallas marks Sysco’s first acquisition of a broadline foodservices operating beyond North America.
Targeted Genetics Corp., a Seattle, Wa. biotech company, reported a fourth quarter net loss of $10.8 million, more than twice its loss in the year-earlier period. Revenue fell by nearly a third–to $2.2 million. The results included nearly $8 million in goodwill impairment charges.
Teradyne Inc., a North Reading, Ma. manufacturer of semiconductor automated testing gear, wants to sell up to $150 million in convertible senior debt to raise money to pay back current obligations.
Textron Inc., the Providence, R.I. manufacturer of aircraft, automotive parts and other products, is selling its HR Textron actuation-systems unit to Woodward Governor Co., a Fort Collins, Co. energy-service control-systems company, in a transaction that will result in an after-tax profit of $265 million for Textron.
Ticketmaster Entertainment Inc. was subpoenaed to present information about how it resells concert tickets. It isn’t clear whether the request, by the U.S.’s Justice Department and Federal Trade Commission, Canada’s Competition Bureau and others, is connected to its proposed merger with Live Nation Inc., which is being reviewed by the antitrust office of the Justice Department. Apparently at issue are events over the winter when Bruce Springsteen fans, trying to buy concert tickets on Ticketmaster’s site, were sent to TicketsNow, where the seat prices were much higher.
Trinity Manufacturing Corp., a Bradenton, Fl. contract manufacturer of cable assemblies and related products, has moved to a larger headquarters location.
Union International Food Co. recalled some black and white pepper products packaged at its Union City, Ca. plant, following more than forty cases of salmonella illness reported.
United Western Bancorp, a unit of United Western of Denver, Co., sold off its remaining interest in Matrix Financial Solutions Inc. in Denver, resulting in a pretax $3.6 million gain.
US Airways Group Inc., Tempe, Az., reported that its traffic for March fell almost 9%–to 4.9 billion revenue passenger miles.
Whataburger Restaurants LP, the Corpus Christi, Tx. firm which has more than 700 restaurants, acquired a corporate site in San Antonio where it will set up a new headquarters. Whataburger has sales in excess of $1 billion.
Willamette Valley Vineyards Inc., a Turner, Or. producer of pinot noir wine, said that 2008 profit fell 55%–to about $709,000, on earnings of $16 million.
(The Nation’s Oldest Daily Business E-Newspaper)
—The Day’s News in Capsule Form—
A Product of Bastien Financial Publications
(For more information contact us at 847-491-1900
or email <!-- e --><a href="mailto:usbj7@yahoo.com">usbj7@yahoo.com</a><!-- e -->)
Tuesday
April 7, 2009
(This daily e-newspaper is a copyrighted publication for the exclusive use
of the recipient only and is not to be forwarded or copied
in whole or in part for use by any other party.)
Educational Tidbits
For Today's Financial Executive
What to Expect in a Chapter 11 Filing
While a trustee oversees a Chapter 7 bankruptcy filing, in a Chapter 11 situation a debtor becomes the debtor in possession and holds the right to keep the property of the bankrupt estate and continue operating its business. Trustees are not always appointed in Chapter 11 cases and the debtor is required to attend the 341 meeting of creditors within forty days of the bankruptcy filing. For 120 days following the bankruptcy filing, the debtor in possession has the exclusive right to present a reorganization plan for the company, including how to deal with creditors’ claims. Typically creditors with at least two-thirds of the claims’ amount and more than half the claim number must go along with the plan for it to become effective. The debtor usually has about six months from the filing to win acceptance of the reorganization plan from its creditors.
The Business Professional’s
Q&A Corner
YESTERDAY’S QUESTION: Explain the importance of liquidation analysis in a Chapter 11 bankruptcy filing.
ANSWER: When a company files Chapter 11, the creditors’ committee should determine the likely distribution to unsecured creditors from the standpoint of the liquidation of the debtors' business. The committee should update that analysis if the situation changes. Such an analysis should be made even if liquidation is inadvisable and not considered, since the results of the hypothetical liquidation are an essential factor of both the rights and the bargaining power of the unsecured creditors. It should be noted that a reorganization plan can be confirmed only if it promises unsecured creditors at least as much as they would get from a Chapter 7 liquidation.
QUESTION: Explain what a “liquidating reorganization†is.
ANSWER NEXT ISSUE
Today's Headlines:
The Labor Department reported that U.S. companies dumped more than 660,000 jobs in March, bringing the nation’s unemployment rate to 8.5%. That’s the highest rate of joblessness since 1983.
AES Corp. to offer unsecured notes to help pay down debt...
American Woodmark to shutter two production plants...
BSN Medical to close its FLA Orthopedics unit in Florida...
CareFusion Corp. to cut 1,300 jobs...
Innotrac Corp. narrows its fiscal loss...
International Business Machines Corp. drops its buyout bid for Sun Microsystems Inc....
International Paper Co. continues closing and idling plants...
Kohler Co. to cut more than 450 jobs...
Lincoln National Corp.’s debt payments strain its liquidity...
MGM Mirage looks to sell two properties...
New York Times Co. warns its Boston Globe workers that it needs cost concessions...
Textron Inc. is selling its HR Textron unit...
BANKRUPTCY NEWS
(For more information on these (or any) bankrupt firms
call the 800-number in your U.S. Bankruptcy Court Directory
available through Bastien Financial Publications.)
Aztec Land Holdings LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Michigan. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-50129. For more information contact the court at 877-422-3066.
B.R.L. Development Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the Western District of Michigan. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-03996. For more information contact the court at 616-456-2075.
Bloomsouth Flooring Corp., Canton, Ma., filed Chapter 11. The firm listed assets of between $500,000 and $1 million and liabilities of between $1 million and $10 million.
BSW International Inc. filed Chapter 7 in the U.S. Bankruptcy Court in Tulsa, Ok. No assets were listed and liabilities were listed at $5.3 million. The case number is 09-10814.
Central Heating & Air Inc. filed Chapter 7 in the U.S. Bankruptcy Court in Tulsa, Ok. listing assets and liabilities of less than $500,000 each. The case number is 09-10868.
CET Racing LC filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-02434. For more information contact the court at 866-879-1286.
DelSite Inc., an Irving, Tx. drug-development concern, filed Chapter 7 after failing to raise additional funding and will liquidate. Recently the firm’s assets were estimated at between $1 million and $10 million and its liabilities were estimated to be between $10 million and $50 million.
Dink Properties Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Central District of California. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-17655. For more information contact the court at 213-894-4111.
Fleetwood Enterprises Inc. has seen a 5/27 creditors’ meeting scheduled in its Chapter 11 bankruptcy. For more information contact the U.S. Bankruptcy Court in California at 909-774-1150.
Gulf Coast Transport Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-31896. For more information contact the court at 800-866-9008.
Hilton Properties Leasing LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $100 million. The case number is 09-31960. For more information contact the court at 800-886-9008.
InnoVision Health Media, a medical publishing company, was acquired by two private-equity firms and has emerged from Chapter 11 protection. InnoVIsion will continue operating in Boulder, Co.
Lexington Village LP filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Pennsylvania. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-02499. For more information contact the court at 877-440-2699.
Magna Entertainment’s unsecured creditors’ committee objected to the company’s request for postpetition financing and the use of cash collateral, among other matters.
Neshco Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Arkansas. The firm listed assets of less than $100,000 and liabilities of between $1 million and $100 million. The case number is 09-12349. For more information contact the court at 800-891-6741.
Nova Biosource, a biodiesel firm, filed Chapter 11 in the U.S. Bankruptcy Court in Wilmington, De. listing assets of more than $100 million and liabilities of more than $50 million. Nova, which in its first quarter lost $11 million, intends to continue operating.
Payman Car Wash Management Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Central District of California. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-17732. For more information contact the court at 213-894-4111.
Rangeline Properties LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-31921. For more information contact the court at 800-886-9008.
Rockwood Square LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-32078. For more information contact the court at 800-326-5879.
Stockdale Music in California, a company that makes and repairs musical instruments, filed Chapter 7, listing assets and liabilities of between $500,000 and $1 million each.
Top Notch Limousine & Executive Services filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of California. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $100 million. The case number is 09-26096. For more information contact the court at 916-551-2989.
Young Broadcasting received approval from the U.S. Bankruptcy Court for bidding procedures regarding the sale of certain assets.
DISTRESSED / RAPIDLY-EXPANDING COMPANIES
&
OTHER COMPANY NEWS
AES Corp., an Arlington, Va. power supplier, will offer $535 million in unsecured notes in a move to help it pay down its short-term debt, including more than $360 million in debt notes due over the next two years. The firm also extended a deadline for part of a separate $750 million loan that had been scheduled to mature in June of 2010. As of the end of last year, the $16 billion company had $900 million in unrestricted cash and equivalents and $2.8 billion in other investments, cash and debt reserves.
American Airlines, Fort Worth, Tx., reported that its traffic for March fell more than 10%–to 10.3 billion revenue passenger miles.
American Electric Power Inc., Columbus, Oh., reduced its earnings guidance for this year, partly because of being refused the rate of increase that it had asked regulators for. Also, earnings estimates were lowered as the company will sell common shares to raise cash to reduce debt. As a result, AEP will slash its capital spending for 2009. The big power company last year reported earnings of $1.4 billion on revenue of $14.6 billion.
American Woodmark, a Winchester, Va. maker of kitchen and bathroom cabinets, is permanently shutting down two production plants as it cuts back production. The downsizing will result in $17 million in pretax expenses but will also save it $20 million a year.
AT&T Inc. will continue labor negotiations with the Communications Workers of America, a union representing 90,000 of its landline-unit workers. The extension of talks sidesteps a possible strike.
Aushon BioSystems Inc., a Billerica, Ma. firm which recently acquired some assets from Thermo Fisher Scientific Inc., arranged venture-capital financing of $6.5 million. Aushon provides laboratory products and services.
Author Solutions Inc., a so-called self-publishing company, expanded by purchasing Trafford Publishing, a closely-held Canadian competitor, for an undisclosed amount. Only three months ago Author Solutions bought Xlibris, another competitor. Author Solutions, a print-on-demand company, operates under the names AuthorHouse and iUniverse. It is owned by Bertram Capital Management LLC.
Boston Private Financial Holdings Inc., Boston, Ma., sold off its three-fourths interest in Sand Hill Advisors of Palo Alto, Ca. for an undisclosed amount.
BSN Medical of Germany is closing its FLA Orthopedics unit in Miramar, Fl., where it makes braces and other medical equipment, and moving the operation to Mexico. The move affects more than 160 jobs in Florida.
CareFusion Corp., which is being spun off by Cardinal Health Inc. this summer, will cut 1,300 jobs over the next six months, due to declining orders from hospitals. CareFusion, which makes infusion pumps and other medical equipment, will lay off 800 workers and not fill another 500 positions that will likely be open or otherwise vacated as the spinoff takes place. The San Diego, Ca. company last year reported earnings of $662 million on revenue of $4.5 billion, a relatively small part of Cardinal’s overall sales.
Charlotte Eye Ear Nose & Throat Associates added another office in Charlotte, N.C., bringing its number of area locations to fifteen.
Chrysler LLC’s banks are trying to buck pressure from the U.S. government to exchange $5 billion of $6.8 billion in loans for equity in the ailing carmaker. Those banks, including Citigroup Inc., Morgan Stanley, Goldman Sachs Group Inc. and J.P. Morgan Chase & Co., are secured debtholders and as such hold the right to seize control of Chrysler’s assets if it files Chapter 11. Thus, a bankrupt Chrysler is worth more to the lenders than swapped debt. The reluctance of the banks to go along with the government’s request could be a roadblock to Chrysler’s efforts to reorganize out of court and could threaten the company’s efforts to align itself with Fiat SpA by next month.
Continental Automotive Systems, a unit of Germany’s Continental AG, plans to shutter its facility in Elma, N.Y. by the end of this year and has in the meantime put the plant up for sale for an asking price of $9.7 million. The company is shifting work to Asia.
FKI Logistex Inc., a big St. Louis, Mo. automated material handling concern, said that it trimmed its payroll at its operations around the U.S., although it provided few other details.
FMC Technologies Inc., a Houston, Tx. energy technology firm, is selling its interest in Norwegian offshore-technology company Roxar ASA to Emerson Electric Co. of St. Louis, Mo. for an undisclosed amount.
Fried, Frank, Harris, Shriver & Jacobson, a law firm with offices in New York, Washington, D.C. and elsewhere, will cut 100 jobs at its U.S. operations, including forty-one attorneys.
Good Harbor Consulting LLC, an Arlington, Va. provider of strategic-security and safety-risk management services, expanded by acquiring Techmark Security Integration Inc. of Boston, Ma. for an undisclosed amount.
Heartland Payment Systems, a New Jersey-based provider of credit-card-payment processing services, has been sued in class-action litigation over a data breach when a hacker gained access to customer accounts.
Hibbett Sports Inc., Birmingham, Al., has its sights set on opening up to seventy new sporting-goods stores in fiscal 2010. That’s a somewhat slower pace than last year and is tempered by plans to close between twenty and twenty-five locations. Currently Hibbett has almost 750 locations in two dozen states. In its most recent fiscal year, Hibbett had net sales of $564 million, up from $521 million in the prior year.
Hogan & Hartson LLP, Washington, D.C.-based law firm, laid off more than ninety of its legal staffers and will reduce some attorneys’ salaries. Hogan & Hartson has 2,500 employees, with almost half of them lawyers.
Iberiabank Corp., a bank holding company in Tennessee, repurchased $90 million in preferred stock that it had sold to the Treasury Department last fall.
Information Analysis Inc., an unprofitable Fairfax, Va. provider of information technology services, said it is looking into business opportunities such as finding a partner or buyer.
Innotrac Corp., a Duluth, Ga. order processing, fulfillment and call-center company, reported its 2008 net income soared almost fivefold–to $3.3 million, on an 8% revenue increase–to $131 million.
Intelligent Systems Corp., a Norcross, Ga. software and services firm, reported a lowered 2008 loss of $823,000, down from a $2.4 million loss in the prior year. Revenue increased 3%–to $15.8 million. The results included the benefit of a gain from the sale of an operation.
International Paper Co., Memphis, Tn., is idling a mill in Ticonderoga, N.Y. due to the economic slowdown, in a move that affects 600 workers. The wood-products maker is also permanently shutting a cardboard plant in Kansas City, Ks., affecting another 100 workers, and it earlier said it would close a 123-employee Franklin, Va. facility.
International Business Machines Corp., Armonk, N.Y., pulled its $7 billion bid to acquire Sun Microsystems Inc., following news that Sun’s board was apparently lukewarm about a reduced offer. The apparent collapse of the deal raises questions about Sun, which is actually valued at less than what IBM was offering even under the lowered bid. IBM had reduced its offer from $9.55 to $9.40 a share, prompting Sun, the Santa Clara, Ca. maker of high-end computers, to drop out of its exclusive talks with IBM. Sun also blamed issues such as possible antitrust problems in a merger with Big Blue.
IVenture Solutions Inc., a Jacksonville, Fl. information technology and services provider, purchased a crosstown competitor, JP2 Technologies Inc., for an undisclosed amount.
Kansas City Star, a unit of McClatchy Co., will combine several sections of its newspaper in a move to reduce costs.
Kohler Co., a Wisconsin manufacturer of plumbing fixtures, engines and other products, will cut more than 450 jobs at its headquarters in Kohler, Wi., due to a dropoff in sales. Kohler employs more than 6,300 workers in Sheboygan County, Wi.
Lecere Corp., a Rochester, Mn. software firm, wants to raise more than $7 million through a private placement, using proceeds for its business and market strategies. The company makes software for the restaurant and hospitality sectors.
Lincoln National Corp., the Radnor, Pa.-based life insurer, is raising worries among investors as its liquidity comes under pressure. The firm this week is handing out $500 million to pay down debt and faces another $375 million commercial-paper payment due next month. Unfortunately, because of credit ratings downgrades, Lincoln National failed to be approved for assistance from the Treasury Department’s commercial-paper program. As it tries to deal with its debt pressures and a battered portfolio, Lincoln National’s shares are down more than 90% from a high almost two years ago.
MGM Mirage, Las Vegas, Nv., retained Morgan Stanley to help line up possible suitors for two of its strongest cash-flow operations, the MGM Grand Detroit in Michigan and the Beau Rivage casino in Mississippi. MGM is trying to raise cash as payment obligations on its more than $13 billion mountain of debt come due.
New York Times Co., Manhattan, N.Y., told workers at its Boston Globe unit that it will shut down the Massachusetts newspaper unless it can get about $20 million in labor concessions through wage cuts and other measures. The Times is trying to reduce its losses amid the slump in the newspaper sector, but also the Boston Globe has been an ongoing headache for the Times. Sixteen years ago the Times paid $1.1 billion for the Boston Globe, which has plunged in value, according to one analyst, to between $12 million and $20 million.
Old National Bancorp, Evansville, In., bought back all $100 million in preferred shares that it had earlier sold to the Treasury Department.
Petrosearch Energy Corp., a Nevada energy company with offices in Houston, Tx., is merging with Double Eagle Petroleum Co., a natural gas developer in Wyoming, in a $9.3 million stock deal. The combined firm will be 84%-controlled by Double Eagle’s shareholders and will operate under the Double Eagle name.
Pizza Fusion, a Fort Lauderdale, Fl. maker of organic pizzas, signed a franchise agreement with Samir Food Co. Ltd. to set up locations in Saudi Arabia.
Pliant Technology Inc., a Milpitas, Ca. manufacturer of flash drives, won $15 million in another round of venture financing, which it will use to boost production.
Powell Industries Inc., a Houston, Tx. manufacturer of electrical equipment, won a contract to produce an electric power system for the Washington Metropolitan Area Transit Authority in Texas. The contract is worth $46 million.
Pro’s Ranch Markets, Ontario, Ca., is opening an upscale hispanic-oriented grocery store in Mesa, Az., bringing its number of locations in Arizona to five. Pro’s Ranch will hire 400 workers at the new location in Mesa.
Rehabilitation Hospital of the Pacific, an acute-care facility in Hawaii, is closing two of its outpatient clinics on Oahu as it seeks to remain in the black. The move results in the loss of fourteen jobs.
Saba Software Inc., Redwood City, Ca., reported sharply higher net income of $1.3 million for its third quarter, up from about $160,000 a year ago. Revenue fell slightly–to $26 million. Not including extra expenses, income for the period was $3.2 million.
Sysco Corp., the big Houston, Tx. foodservices company, purchased Pallas Foods Ltd., a foodservices distributor in Ireland, for an undisclosed amount. Pallas marks Sysco’s first acquisition of a broadline foodservices operating beyond North America.
Targeted Genetics Corp., a Seattle, Wa. biotech company, reported a fourth quarter net loss of $10.8 million, more than twice its loss in the year-earlier period. Revenue fell by nearly a third–to $2.2 million. The results included nearly $8 million in goodwill impairment charges.
Teradyne Inc., a North Reading, Ma. manufacturer of semiconductor automated testing gear, wants to sell up to $150 million in convertible senior debt to raise money to pay back current obligations.
Textron Inc., the Providence, R.I. manufacturer of aircraft, automotive parts and other products, is selling its HR Textron actuation-systems unit to Woodward Governor Co., a Fort Collins, Co. energy-service control-systems company, in a transaction that will result in an after-tax profit of $265 million for Textron.
Ticketmaster Entertainment Inc. was subpoenaed to present information about how it resells concert tickets. It isn’t clear whether the request, by the U.S.’s Justice Department and Federal Trade Commission, Canada’s Competition Bureau and others, is connected to its proposed merger with Live Nation Inc., which is being reviewed by the antitrust office of the Justice Department. Apparently at issue are events over the winter when Bruce Springsteen fans, trying to buy concert tickets on Ticketmaster’s site, were sent to TicketsNow, where the seat prices were much higher.
Trinity Manufacturing Corp., a Bradenton, Fl. contract manufacturer of cable assemblies and related products, has moved to a larger headquarters location.
Union International Food Co. recalled some black and white pepper products packaged at its Union City, Ca. plant, following more than forty cases of salmonella illness reported.
United Western Bancorp, a unit of United Western of Denver, Co., sold off its remaining interest in Matrix Financial Solutions Inc. in Denver, resulting in a pretax $3.6 million gain.
US Airways Group Inc., Tempe, Az., reported that its traffic for March fell almost 9%–to 4.9 billion revenue passenger miles.
Whataburger Restaurants LP, the Corpus Christi, Tx. firm which has more than 700 restaurants, acquired a corporate site in San Antonio where it will set up a new headquarters. Whataburger has sales in excess of $1 billion.
Willamette Valley Vineyards Inc., a Turner, Or. producer of pinot noir wine, said that 2008 profit fell 55%–to about $709,000, on earnings of $16 million.