04-10-2009, 07:46 AM
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 -->)
Wednesday
April 8, 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 13 Filing
As in a Chapter 7 bankruptcy filing, in a Chapter 13 filing a trustee takes control in overseeing the case, but in Chapter 13, in contrast to a Chapter 7 case, the trustee doesn’t take possession of the bankrupt estate’s property. A 341 meeting of creditors takes place within forty days of the bankruptcy filing, when the debtor reports on the financial condition of the company. A reorganization plan must be filed quickly, within only about fifteen days of the bankruptcy petition, and the debtor must start making payments on claims within thirty days of the filing of the reorganization plan.
The Business Professional’s
Q&A Corner
YESTERDAY’S QUESTION: Explain what a “liquidating reorganization†is.
ANSWER: A “liquidating reorganization†is an informal term for a Chapter 11 proceeding when the company is essentially liquidated through one or more asset sales.
QUESTION: Explain Article 2 of the Uniform Commercial Code.
ANSWER NEXT ISSUE
Today's Headlines:
Anheuser-Busch InBev seeks to sell its Czech brewery unit...
Applied Micro Circuits Corp. sells its 3ware business to LSI Corp....
Blockbuster Inc.’s auditors issue a “going concern†warning...
Energy Future Holdings Corp. has some debt downgraded by Moody’s Investors Service...
Fairview Health Services’ 2008 operating income plunges...
International Speedway Corp.’s net income sinks in the first quarter...
Isilon Systems Inc. warns of a loss and announces job cuts...
MediaNews Group Inc. to delay payments...
Payless ShoeSource Inc. is sued by Adidas AG...
Royal Bank of Scotland wants to cut as many as 9,000 jobs...
Sprint Nextel Corp.’s outlook is lowered by Standard & Poor’s...
SupportStaff Inc. to sell its Enterprise business to Consona Corp....
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.)
ABM Group 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 09-32095. For more information contact the court at 800-886-9008.
Added Incentives Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-32105. For more information contact the court at 800-745-4459.
Albert Lindley Lee Memorial Hospital filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of New York. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-30845. For more information contact the court at 800-776-9578.
All American Plazas Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed liabilities of between $1 million and $100 million but no assets were listed in the filing. The case number is 09-11809. For further information contact the court in Manhattan, N.Y. at 212-668-2870
Auto Integrity Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Wisconsin. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-24290. For more information contact the court at 877-781-7277.
Brady & Horne Co. Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Western District of Tennessee. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-11398. For more information contact the court at 888-381-4961.
B2 International Corp. filed Chapter 11 in the U.S. Bankruptcy Court in Delaware. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-11180. For further information contact the court in Wilmington, De. at 302-252-2900.
Capitol Homes Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Tennessee. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-03858. For more information contact the court at 615-736-5584.
Corpus Christi Associates LP was hit with an involuntary Chapter 11 bankruptcy petition. The filing, in the U.S. Bankruptcy Court for the Southern District of New York, was under case number is 09-11773. No schedules were listed. For further information contact the court in Manhattan, N.Y. at 212-668-2870.
CU Fleet LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Wisconsin. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-24327. For more information contact the court at 877-781-7277.
Harrelson Utilities Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of North Carolina. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-02815. For more information contact the court at 919-234-7655.
Hope 7 Monroe Street LP filed Chapter 11 in the U.S. Bankruptcy Court in Washington, D.C. The firm listed assets of less than $100,000 and liabilities of between $1 million and $100 million. The case number is 09-00273. For more information contact the court at 202-273-0048.
Knight Industries I LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Illinois. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-12219. Also filing for bankruptcy protection was Knight-Celotex LLC, under case number 09-12200. For more information contact the court at 888-232-6814.
Loco Realty Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-11789. For further information contact the U.S. Bankruptcy Court in Manhattan, N.Y. at 212-668-2870.
Louisiana Venture Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-11197. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2900.
Nashville Jet Charters Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Tennessee. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-03876. For more information contact the court at 615-736-5584.
Park At Aspen Lake II LP, an office-building owner in Austin, Tx., filed Chapter 11, hoping to reorganize and continue operating. The firm says it has liabilities of between about $10 million and $50 million.
Red Top Mountain Road LC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Georgia. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-41371. For more information contact the court at 800-510-8284.
Richards Conditioning Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-22525. For further information contact the court in Manhattan, N.Y. at 212-668-2870.
Ritz Camera Centers Inc., the Beltsville, Md.-based photo-shop chain, intends to shutter more than 300 stores in a move that will liquidate more than $50 million in retail inventory.
Saab Automobile AB, which filed for bankruptcy protection two months ago, says that it has more than twenty suitors lined up and expressed hope that a buyout can be worked out by the end of June. Saab, a Swedish unit of General Motors Corp., told the bankruptcy court that it needs $1 billion to continue production at its primary facility in Sweden.
WMI 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 09-16530. For more information contact the court at 213-894-4111.
DISTRESSED / RAPIDLY-EXPANDING COMPANIES
&
OTHER COMPANY NEWS
Alliant Techsystems Inc., a privately-held defense and aerospace company, acquired Eagle Industries Unlimited Inc., a privately-held Fenton, Mo. manufacturer of nylon equipment for the military and law-enforcement sectors, for an undisclosed amount. Alliant will gain $80 million in sales by acquiring Eagle.
American River Transportation Co., a unit of Illinois-based Archer Daniels Midland Co., paid a fine of $3 million for an alleged dumping violation after the company and two employees pleaded guilty to charges of illegally discharging oil into the Mississippi River.
AnchorBank of Madison, Wi., which is trying to save $1 million annually, is closing three of its branches by the end of this summer. The bank had $4.7 billion in assets as of 12/31.
Anderen Financial Inc. in Palm Harbor, Fl. is in a definitive agreement to be acquired by First Commercial Bank Inc., an Orlando, Fl. unit of FCB Florida Bancorporation, in a stock swap. The combined company will have $850 million in assets.
Anheuser-Busch InBev., the Belgian-based beer giant, is reportedly in talks to sell its Pivovary Staropramen beer unit in the Czech Republic to Heineken, the big Dutch brewer. The Czech operations are estimated to be valued at between about $250 million and $300 million. Anheuser-Busch InBev is selling some assets to raise cash to repay debt connected to the more than $50 billion merger between Anheuser-Busch of the U.S. and InBev.
Applied Micro Circuits Corp., Sunnyvale, Ca., is selling its 3ware storage-adapter operations to LSI Corp. of Milpitas, Ca. in a $20 million cash deal. The sale, which should close within the next month, allows Applied Micro to focus on developing submicron integrated circuits.
Atlantic 599 Investments in Pompano Beach, Fl. lost a foreclosure judgment in favor of Florida Capital Bank, and four of its gas stations in Broward and Palm Beach Counties will go up for public auction.
Bank of America Corp., the giant North Carolina firm which obtained $45 billion in federal assistance under the government’s Troubled Asset Relief Program, is now paying more than $710 million in dividends to the government.
Betts USA, a unit of Betts Holdings Ltd. of the U.K., is shutting down a facility in Florence, Oh. by the end of June, resulting in the loss of 114 jobs.
Blockbuster Inc.’s auditors, in a financial filing by the chain of video-rental stores, expressed substantial doubt about its ability to continue as a going concern. PricewaterhouseCoopers LLP said that the Dallas, Tx.-based company might have insufficient cash and could land in bankruptcy. Blockbuster has been taking steps to reduce spending and conserve cash.
Boeing Co., Chicago, Il., said that its helicopter and support-services center in Mesa, Az. won a $9.5 million contract to supply support services for Kuwait’s air force.
CardioNet Inc., a Conshohocken, Pa. wireless medical technology company, is expanding with a deal to acquire Minnesota-based Biotel Inc. for $14 million. The acquisition will help CardioNet expand its arrhythmia monitoring operations.
Caterpillar Inc., the Peoria, Il. maker of heavy equipment, is teaming up with Navistar International Corp., the Warrenville, Il. manufacturer of trucks and diesel engines, to set up a partnership that will focus on the offshore production of Caterpillar trucks that will be sold through Caterpillar’s dealers in the U.S.
Chattem Inc., the Tennessee-based maker of personal-care products, over-the-counter drugs and other consumer goods, reported its first quarter net income increased to $19.6 million, up 32% from the year-earlier period when results were dampened by a charge related to a product recall. Revenue in the recent quarter fell 4%–to $116 million.
Delta Air Lines Inc., Atlanta, Ga., reported that its international traffic for March fell 15%, with its Pacific flights down 16% and Latin American traffic slumping 17%.
Eden Bioscience Corp., a Woodinville, Wa. agribiotech company, announced that its shareholders will vote to dissolve the firm next month.
Energy Future Holdings Corp., a privately-held Dallas, Tx. energy firm, had some of its debt downgraded by Moody’s Investors Service, which expressed concern about the company’s ability to pay its creditors. Energy Future has consolidated debt of about $37 billion.
Fairview Health Services, a Minneapolis, Mn. nonprofit operator of hospitals and clinics, reported that its 2008 operating income fell by more than half–to $20.8 million, although revenue was up 10%–to $2.6 billion. The year’s results were hurt by acquisitions, a drop in its investment portfolio, lower patient volume and increased nonpaying patients.
FedEx Corp., the Memphis, Tn. package delivery firm which employs more than 290,000 worldwide, confirmed that it is reducing its workforce by 1,000 jobs, including 500 in the Memphis area.
Fisker Automotive Inc. has garnered $85 million more in venture capital, which it will use to rev up production of its battery-powered Karman vehicle. Fisker, Irvine, Ca., is showing the car at the New York Auto Show this week and hopes to sell 15,000 Karmans next year. The Karman is evidently not aimed at the masses since it’s priced at just under $88,000.
Ford Motor Co. reached a deal with investors, who will swap $9.9 billion of the carmaker’s debt for cash and stock, amounting to a 28% reduction in Ford’s overall debt. Ford, which is faring better than its two ailing domestic rivals, pleased investors, who pumped up its shares 16% on the news, but some analysts continue to worry about the likelihood that weak operating results will continue through the rest of the year, which could put pressure on the company’s liquidity.
Frozen Food Express Industries Inc., a Dallas, Tx. temperature-controlled trucking company which has reduced its payroll by 150 nondriver workers over the past four months, expects both earnings and revenue in the first quarter to be below last year’s results. The company has also suspended its 401(K) contributions and consolidated certain operations as part of its overall restructuring efforts. While cutting costs, Frozen Food Express insists that its finances are strong.
Giant Eagle, the supermarket operator, purchased Mosso’s Pharmacy in Latrobe, Pa. for an undisclosed amount.
Henderson Properties, a real-estate company in Charlotte, N.C., expanded by purchasing On Call Property Management, a homeowners’ management company in Charlotte, for an undisclosed amount.
Hicks Sports Group, which owns the Dallas Stars and the Texas Rangers sports teams, will not make certain interest payments on more than $500 million of its bank loans. Hicks’s owner, Tom Hicks, cited a business dispute with lenders.
Hillsborough County Water Resources Services, a Florida organization which is trying to reduce its budget by more than $5 million, is cutting its workforce by seventeen jobs.
Hutchinson Technology Inc., the Hutchinson, Mn. firm which recently reported that one of its largest suppliers, Seagate Technology, intends on phasing out certain of its business with Hutchinson, warned its second quarter sales could be below analysts’ expectations. The company expects to make its second quarter statement available on 4/28.
Hyperdynamics Corp., a Sugar Land, Tx. exploration and production company, is selling its 85% working stake in certain producing properties in Louisiana to Louisiana-based Rabb Resources Ltd. for an undisclosed amount.
International Speedway Corp., the racetrack operator, reported its first quarter net income sank 31%–to $25 million, on a 14% decline in revenue–to $166 million, below analysts’ expectations. The firm also reduced its earnings guidance for the fiscal year.
Isilon Systems Inc.’s shares took a dive after the Seattle, Wa. computer-storage firm projected a greater-than-anticipated loss for its first quarter and said that it will slash its payroll by 10%, amounting to the loss of about thirty jobs. Isilon, which provides clustered storage systems, will take an inventory writedown charge of $3.8 million for the first quarter, which will result in a loss for the period.
JBHM Architects, Tupelo. Ms., shut down its office in Memphis, Tn.
Journal Communications Inc., the Milwaukee, Wi.-based newspaper publisher, filed to sell up to $400 million in securities through a shelf registration, though it didn’t detail what kinds of securities might be sold.
Legacy Services LP’s shares surged almost 30% in recent trading after it received a buyout offer from Apollo Management for $14 a share. Legacy is a Midland, Tx. oil and natural-gas partnership.
Maritz Inc., the privately-held St. Louis, Mo. travel and information firm, is reducing its workforce by 260 employees as part of its efforts to reduce costs. The cuts amount to 8% of the overall payroll of the $1.5 billion firm.
Mars Inc., the maker of Snickers bars and M&Ms, will shut down its remaining Ethel’s Chocolate Lounge stores in the Chicago, Il. area. Eight locations in Las Vegas, Nv. will stay open and Ethel’s will continue operating its Web business.
MediaNews Group Inc., the Denver, Co. newspaper publisher, told its lenders and bondholders that it will delay payments on some debt as it restructures its finances. MediaNews, which is trying to hold on to cash, insists that it’s on top of its debt and that there’s no risk it will file for bankruptcy protection. Three years ago the company borrowed $350 million to buy four newspapers.
Nationwide Mutual Insurance Co., Columbus, Oh., announced the elimination of 480 information-technology positions. Nationwide, which lost $340 million in fiscal 2008, has cut 3,000 jobs over the past two years.
Payless ShoeSource Inc., a Topeka, Ks. shoe retailer, is being sued for patent infringement by German footwear maker Adidas AG and its Canadian unit, which are charging Payless with illegally using Adidas’s three-stripe logo. Adidas’s unit in the U.S., Adidas America Inc. of Portland, Or., was earlier awarded more than $300 million in a similar case, although that award was later reduced to $65 million and the case is still under appeal. Payless is a unit of Collective Brands Inc.
Provident Camera Shop in Cincinnati, Oh. is closing down its operations after eight decades in business.
Regency Healthcare Group, Brentwood, Tn., arranged a $25 million senior secured credit facility through Healthcare Financial Services, a unit of GE Capital.
Royal Bank of Scotland, which following a bailout is now majority-controlled by the British government, is looking to cut up to 9,000 jobs at its operations around the world over the next two years. The bank is hoping to reduce annual expenses by $3.7 billion.
Shire Pharmaceuticals Group PLC, the $3 billion British drug company, is closing its Owings Mills, Md. facility–affecting 260 workers. The move, over the next three years, is designed to guide the company to investing its resources in purchasing smaller drug firms while also establishing licensing agreements as it begins to outsource some of its manufacturing.
SLM Corp., best known as Sallie Mae, will bring 2,000 jobs to the U.S. over the next year and a half as it moves some call-center operations and other activities back from abroad. The move is part of a strategy for cutting $300 million from expenses over the next twelve months.
Socket Mobile Inc., a Newark, Ca. firm which laid off nearly a dozen workers at the end of last year, released two of its top executives as part of its restructuring efforts. The company reported record revenue last year of $27 million and whittled its loss to $2 million, down from $3.3 million in the prior year. Socket is a mobile device maker which focuses on manufacturing PDAs for healthcare professionals.
Sprint Nextel Corp.’s outlook was revised downward by Standard & Poor’s from stable to negative due to worries about its declining subscriber base. However, all other ratings were affirmed by S&P. Sprint, Overland Park, Ks., faced $22 billion in debt as of the end of last year and lost 4.1 million contract customers in 2008, leaving it now with about 49 million subscribers.
SumTotal Systems Inc. has reportedly received a cash offer to be bought out by Vista Equity Partners of Mountain View, Ca. for $3.25 a share. Vista’s offer to buy out the remaining 87% of SumTotal that it doesn’t own is valued at $103 million. SumTotal produces enterprise software.
Sun Microsystems Inc.’s collapsed merger deal with International Business Machines Corp. puts more pressure on Sun CEO Jonathan Schwartz to come up with Plan B. Investors pummeled Sun’s stock after merger talks fell when Sun’s board rejected a reduced IBM offer. While Mr. Schwartz reportedly opposed the board’s decision to jilt IBM, the onus is on him to revive Sun, which has lost money in three of its last four quarters. If no other suitors step forward, the company may opt to overhaul top executives and management, including Mr. Schwartz.
SupportStaff Inc.’s shares bumped up 13% on two bits of news. The Redwood City, Ca. support-automation software company said that it reached an agreement to sell its Enterprise operations to Consona Corp., a privately-held Indianapolis, In. customer services software company, in a $20 million cash transaction. Also, SupportStaff upped its revenue guidance for the first quarter.
Swain Ski & Snowboard Center in Swain, N.Y. outside Buffalo, is closing down its resort and said that if it can’t find a buyer it will sell its assets.
Textron Inc.’s shares took off on speculation that the Providence, R.I. aerospace and defense manufacturer could be a takeover target.
Time Warner Inc., in another move to sever ties with its AOL unit, asked entities that hold more than $12 billion of its bonds to alter covenants that place limits on Time Warner’s flexibility to get rid of AOL’s assets. That announcement was made as Tim Armstrong, a former Google Inc. executive with corporate credibility, was brought on board as AOL’s CEO. Some observers feel that the online unit could be set loose within the next several months. It’s thought that as an independent company AOL could be valued at about $2.4 billion.
Times Union, one of the largest daily newspapers in the Albany, N.Y. area, has seen the Newspaper Guild of Albany vote to accept the paper’s contract-buyout offer. Employees of the paper have until 4/15 to accept the deal. Last month, the Times announced it needed to reduce its operational costs by 20%. The company is hoping that as many as seventy employees accept the offer.
United Airlines, Chicago, Il., reported that its traffic for March slumped more than 13% from the year-earlier month–to 9.6 billion revenue passenger miles.
USAA Capital Corp., a provider of insurance, banking, investment and other services, issued $95 million in senior notes, hoping to use proceeds for general corporate purposes. The notes are backed up by the Federal Deposit Insurance Corp.
UST Inc. of Stamford, Ct. and its U.S. Smokeless Tobacco Co. Brands Inc. unit, announced sixty layoffs at a facility in Longwood, Fl.
(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 -->)
Wednesday
April 8, 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 13 Filing
As in a Chapter 7 bankruptcy filing, in a Chapter 13 filing a trustee takes control in overseeing the case, but in Chapter 13, in contrast to a Chapter 7 case, the trustee doesn’t take possession of the bankrupt estate’s property. A 341 meeting of creditors takes place within forty days of the bankruptcy filing, when the debtor reports on the financial condition of the company. A reorganization plan must be filed quickly, within only about fifteen days of the bankruptcy petition, and the debtor must start making payments on claims within thirty days of the filing of the reorganization plan.
The Business Professional’s
Q&A Corner
YESTERDAY’S QUESTION: Explain what a “liquidating reorganization†is.
ANSWER: A “liquidating reorganization†is an informal term for a Chapter 11 proceeding when the company is essentially liquidated through one or more asset sales.
QUESTION: Explain Article 2 of the Uniform Commercial Code.
ANSWER NEXT ISSUE
Today's Headlines:
Anheuser-Busch InBev seeks to sell its Czech brewery unit...
Applied Micro Circuits Corp. sells its 3ware business to LSI Corp....
Blockbuster Inc.’s auditors issue a “going concern†warning...
Energy Future Holdings Corp. has some debt downgraded by Moody’s Investors Service...
Fairview Health Services’ 2008 operating income plunges...
International Speedway Corp.’s net income sinks in the first quarter...
Isilon Systems Inc. warns of a loss and announces job cuts...
MediaNews Group Inc. to delay payments...
Payless ShoeSource Inc. is sued by Adidas AG...
Royal Bank of Scotland wants to cut as many as 9,000 jobs...
Sprint Nextel Corp.’s outlook is lowered by Standard & Poor’s...
SupportStaff Inc. to sell its Enterprise business to Consona Corp....
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.)
ABM Group 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 09-32095. For more information contact the court at 800-886-9008.
Added Incentives Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-32105. For more information contact the court at 800-745-4459.
Albert Lindley Lee Memorial Hospital filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of New York. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-30845. For more information contact the court at 800-776-9578.
All American Plazas Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed liabilities of between $1 million and $100 million but no assets were listed in the filing. The case number is 09-11809. For further information contact the court in Manhattan, N.Y. at 212-668-2870
Auto Integrity Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Wisconsin. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-24290. For more information contact the court at 877-781-7277.
Brady & Horne Co. Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Western District of Tennessee. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-11398. For more information contact the court at 888-381-4961.
B2 International Corp. filed Chapter 11 in the U.S. Bankruptcy Court in Delaware. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-11180. For further information contact the court in Wilmington, De. at 302-252-2900.
Capitol Homes Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Tennessee. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-03858. For more information contact the court at 615-736-5584.
Corpus Christi Associates LP was hit with an involuntary Chapter 11 bankruptcy petition. The filing, in the U.S. Bankruptcy Court for the Southern District of New York, was under case number is 09-11773. No schedules were listed. For further information contact the court in Manhattan, N.Y. at 212-668-2870.
CU Fleet LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Wisconsin. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-24327. For more information contact the court at 877-781-7277.
Harrelson Utilities Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of North Carolina. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-02815. For more information contact the court at 919-234-7655.
Hope 7 Monroe Street LP filed Chapter 11 in the U.S. Bankruptcy Court in Washington, D.C. The firm listed assets of less than $100,000 and liabilities of between $1 million and $100 million. The case number is 09-00273. For more information contact the court at 202-273-0048.
Knight Industries I LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Illinois. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-12219. Also filing for bankruptcy protection was Knight-Celotex LLC, under case number 09-12200. For more information contact the court at 888-232-6814.
Loco Realty Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-11789. For further information contact the U.S. Bankruptcy Court in Manhattan, N.Y. at 212-668-2870.
Louisiana Venture Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-11197. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2900.
Nashville Jet Charters Inc. filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Tennessee. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-03876. For more information contact the court at 615-736-5584.
Park At Aspen Lake II LP, an office-building owner in Austin, Tx., filed Chapter 11, hoping to reorganize and continue operating. The firm says it has liabilities of between about $10 million and $50 million.
Red Top Mountain Road LC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Georgia. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-41371. For more information contact the court at 800-510-8284.
Richards Conditioning Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-22525. For further information contact the court in Manhattan, N.Y. at 212-668-2870.
Ritz Camera Centers Inc., the Beltsville, Md.-based photo-shop chain, intends to shutter more than 300 stores in a move that will liquidate more than $50 million in retail inventory.
Saab Automobile AB, which filed for bankruptcy protection two months ago, says that it has more than twenty suitors lined up and expressed hope that a buyout can be worked out by the end of June. Saab, a Swedish unit of General Motors Corp., told the bankruptcy court that it needs $1 billion to continue production at its primary facility in Sweden.
WMI 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 09-16530. For more information contact the court at 213-894-4111.
DISTRESSED / RAPIDLY-EXPANDING COMPANIES
&
OTHER COMPANY NEWS
Alliant Techsystems Inc., a privately-held defense and aerospace company, acquired Eagle Industries Unlimited Inc., a privately-held Fenton, Mo. manufacturer of nylon equipment for the military and law-enforcement sectors, for an undisclosed amount. Alliant will gain $80 million in sales by acquiring Eagle.
American River Transportation Co., a unit of Illinois-based Archer Daniels Midland Co., paid a fine of $3 million for an alleged dumping violation after the company and two employees pleaded guilty to charges of illegally discharging oil into the Mississippi River.
AnchorBank of Madison, Wi., which is trying to save $1 million annually, is closing three of its branches by the end of this summer. The bank had $4.7 billion in assets as of 12/31.
Anderen Financial Inc. in Palm Harbor, Fl. is in a definitive agreement to be acquired by First Commercial Bank Inc., an Orlando, Fl. unit of FCB Florida Bancorporation, in a stock swap. The combined company will have $850 million in assets.
Anheuser-Busch InBev., the Belgian-based beer giant, is reportedly in talks to sell its Pivovary Staropramen beer unit in the Czech Republic to Heineken, the big Dutch brewer. The Czech operations are estimated to be valued at between about $250 million and $300 million. Anheuser-Busch InBev is selling some assets to raise cash to repay debt connected to the more than $50 billion merger between Anheuser-Busch of the U.S. and InBev.
Applied Micro Circuits Corp., Sunnyvale, Ca., is selling its 3ware storage-adapter operations to LSI Corp. of Milpitas, Ca. in a $20 million cash deal. The sale, which should close within the next month, allows Applied Micro to focus on developing submicron integrated circuits.
Atlantic 599 Investments in Pompano Beach, Fl. lost a foreclosure judgment in favor of Florida Capital Bank, and four of its gas stations in Broward and Palm Beach Counties will go up for public auction.
Bank of America Corp., the giant North Carolina firm which obtained $45 billion in federal assistance under the government’s Troubled Asset Relief Program, is now paying more than $710 million in dividends to the government.
Betts USA, a unit of Betts Holdings Ltd. of the U.K., is shutting down a facility in Florence, Oh. by the end of June, resulting in the loss of 114 jobs.
Blockbuster Inc.’s auditors, in a financial filing by the chain of video-rental stores, expressed substantial doubt about its ability to continue as a going concern. PricewaterhouseCoopers LLP said that the Dallas, Tx.-based company might have insufficient cash and could land in bankruptcy. Blockbuster has been taking steps to reduce spending and conserve cash.
Boeing Co., Chicago, Il., said that its helicopter and support-services center in Mesa, Az. won a $9.5 million contract to supply support services for Kuwait’s air force.
CardioNet Inc., a Conshohocken, Pa. wireless medical technology company, is expanding with a deal to acquire Minnesota-based Biotel Inc. for $14 million. The acquisition will help CardioNet expand its arrhythmia monitoring operations.
Caterpillar Inc., the Peoria, Il. maker of heavy equipment, is teaming up with Navistar International Corp., the Warrenville, Il. manufacturer of trucks and diesel engines, to set up a partnership that will focus on the offshore production of Caterpillar trucks that will be sold through Caterpillar’s dealers in the U.S.
Chattem Inc., the Tennessee-based maker of personal-care products, over-the-counter drugs and other consumer goods, reported its first quarter net income increased to $19.6 million, up 32% from the year-earlier period when results were dampened by a charge related to a product recall. Revenue in the recent quarter fell 4%–to $116 million.
Delta Air Lines Inc., Atlanta, Ga., reported that its international traffic for March fell 15%, with its Pacific flights down 16% and Latin American traffic slumping 17%.
Eden Bioscience Corp., a Woodinville, Wa. agribiotech company, announced that its shareholders will vote to dissolve the firm next month.
Energy Future Holdings Corp., a privately-held Dallas, Tx. energy firm, had some of its debt downgraded by Moody’s Investors Service, which expressed concern about the company’s ability to pay its creditors. Energy Future has consolidated debt of about $37 billion.
Fairview Health Services, a Minneapolis, Mn. nonprofit operator of hospitals and clinics, reported that its 2008 operating income fell by more than half–to $20.8 million, although revenue was up 10%–to $2.6 billion. The year’s results were hurt by acquisitions, a drop in its investment portfolio, lower patient volume and increased nonpaying patients.
FedEx Corp., the Memphis, Tn. package delivery firm which employs more than 290,000 worldwide, confirmed that it is reducing its workforce by 1,000 jobs, including 500 in the Memphis area.
Fisker Automotive Inc. has garnered $85 million more in venture capital, which it will use to rev up production of its battery-powered Karman vehicle. Fisker, Irvine, Ca., is showing the car at the New York Auto Show this week and hopes to sell 15,000 Karmans next year. The Karman is evidently not aimed at the masses since it’s priced at just under $88,000.
Ford Motor Co. reached a deal with investors, who will swap $9.9 billion of the carmaker’s debt for cash and stock, amounting to a 28% reduction in Ford’s overall debt. Ford, which is faring better than its two ailing domestic rivals, pleased investors, who pumped up its shares 16% on the news, but some analysts continue to worry about the likelihood that weak operating results will continue through the rest of the year, which could put pressure on the company’s liquidity.
Frozen Food Express Industries Inc., a Dallas, Tx. temperature-controlled trucking company which has reduced its payroll by 150 nondriver workers over the past four months, expects both earnings and revenue in the first quarter to be below last year’s results. The company has also suspended its 401(K) contributions and consolidated certain operations as part of its overall restructuring efforts. While cutting costs, Frozen Food Express insists that its finances are strong.
Giant Eagle, the supermarket operator, purchased Mosso’s Pharmacy in Latrobe, Pa. for an undisclosed amount.
Henderson Properties, a real-estate company in Charlotte, N.C., expanded by purchasing On Call Property Management, a homeowners’ management company in Charlotte, for an undisclosed amount.
Hicks Sports Group, which owns the Dallas Stars and the Texas Rangers sports teams, will not make certain interest payments on more than $500 million of its bank loans. Hicks’s owner, Tom Hicks, cited a business dispute with lenders.
Hillsborough County Water Resources Services, a Florida organization which is trying to reduce its budget by more than $5 million, is cutting its workforce by seventeen jobs.
Hutchinson Technology Inc., the Hutchinson, Mn. firm which recently reported that one of its largest suppliers, Seagate Technology, intends on phasing out certain of its business with Hutchinson, warned its second quarter sales could be below analysts’ expectations. The company expects to make its second quarter statement available on 4/28.
Hyperdynamics Corp., a Sugar Land, Tx. exploration and production company, is selling its 85% working stake in certain producing properties in Louisiana to Louisiana-based Rabb Resources Ltd. for an undisclosed amount.
International Speedway Corp., the racetrack operator, reported its first quarter net income sank 31%–to $25 million, on a 14% decline in revenue–to $166 million, below analysts’ expectations. The firm also reduced its earnings guidance for the fiscal year.
Isilon Systems Inc.’s shares took a dive after the Seattle, Wa. computer-storage firm projected a greater-than-anticipated loss for its first quarter and said that it will slash its payroll by 10%, amounting to the loss of about thirty jobs. Isilon, which provides clustered storage systems, will take an inventory writedown charge of $3.8 million for the first quarter, which will result in a loss for the period.
JBHM Architects, Tupelo. Ms., shut down its office in Memphis, Tn.
Journal Communications Inc., the Milwaukee, Wi.-based newspaper publisher, filed to sell up to $400 million in securities through a shelf registration, though it didn’t detail what kinds of securities might be sold.
Legacy Services LP’s shares surged almost 30% in recent trading after it received a buyout offer from Apollo Management for $14 a share. Legacy is a Midland, Tx. oil and natural-gas partnership.
Maritz Inc., the privately-held St. Louis, Mo. travel and information firm, is reducing its workforce by 260 employees as part of its efforts to reduce costs. The cuts amount to 8% of the overall payroll of the $1.5 billion firm.
Mars Inc., the maker of Snickers bars and M&Ms, will shut down its remaining Ethel’s Chocolate Lounge stores in the Chicago, Il. area. Eight locations in Las Vegas, Nv. will stay open and Ethel’s will continue operating its Web business.
MediaNews Group Inc., the Denver, Co. newspaper publisher, told its lenders and bondholders that it will delay payments on some debt as it restructures its finances. MediaNews, which is trying to hold on to cash, insists that it’s on top of its debt and that there’s no risk it will file for bankruptcy protection. Three years ago the company borrowed $350 million to buy four newspapers.
Nationwide Mutual Insurance Co., Columbus, Oh., announced the elimination of 480 information-technology positions. Nationwide, which lost $340 million in fiscal 2008, has cut 3,000 jobs over the past two years.
Payless ShoeSource Inc., a Topeka, Ks. shoe retailer, is being sued for patent infringement by German footwear maker Adidas AG and its Canadian unit, which are charging Payless with illegally using Adidas’s three-stripe logo. Adidas’s unit in the U.S., Adidas America Inc. of Portland, Or., was earlier awarded more than $300 million in a similar case, although that award was later reduced to $65 million and the case is still under appeal. Payless is a unit of Collective Brands Inc.
Provident Camera Shop in Cincinnati, Oh. is closing down its operations after eight decades in business.
Regency Healthcare Group, Brentwood, Tn., arranged a $25 million senior secured credit facility through Healthcare Financial Services, a unit of GE Capital.
Royal Bank of Scotland, which following a bailout is now majority-controlled by the British government, is looking to cut up to 9,000 jobs at its operations around the world over the next two years. The bank is hoping to reduce annual expenses by $3.7 billion.
Shire Pharmaceuticals Group PLC, the $3 billion British drug company, is closing its Owings Mills, Md. facility–affecting 260 workers. The move, over the next three years, is designed to guide the company to investing its resources in purchasing smaller drug firms while also establishing licensing agreements as it begins to outsource some of its manufacturing.
SLM Corp., best known as Sallie Mae, will bring 2,000 jobs to the U.S. over the next year and a half as it moves some call-center operations and other activities back from abroad. The move is part of a strategy for cutting $300 million from expenses over the next twelve months.
Socket Mobile Inc., a Newark, Ca. firm which laid off nearly a dozen workers at the end of last year, released two of its top executives as part of its restructuring efforts. The company reported record revenue last year of $27 million and whittled its loss to $2 million, down from $3.3 million in the prior year. Socket is a mobile device maker which focuses on manufacturing PDAs for healthcare professionals.
Sprint Nextel Corp.’s outlook was revised downward by Standard & Poor’s from stable to negative due to worries about its declining subscriber base. However, all other ratings were affirmed by S&P. Sprint, Overland Park, Ks., faced $22 billion in debt as of the end of last year and lost 4.1 million contract customers in 2008, leaving it now with about 49 million subscribers.
SumTotal Systems Inc. has reportedly received a cash offer to be bought out by Vista Equity Partners of Mountain View, Ca. for $3.25 a share. Vista’s offer to buy out the remaining 87% of SumTotal that it doesn’t own is valued at $103 million. SumTotal produces enterprise software.
Sun Microsystems Inc.’s collapsed merger deal with International Business Machines Corp. puts more pressure on Sun CEO Jonathan Schwartz to come up with Plan B. Investors pummeled Sun’s stock after merger talks fell when Sun’s board rejected a reduced IBM offer. While Mr. Schwartz reportedly opposed the board’s decision to jilt IBM, the onus is on him to revive Sun, which has lost money in three of its last four quarters. If no other suitors step forward, the company may opt to overhaul top executives and management, including Mr. Schwartz.
SupportStaff Inc.’s shares bumped up 13% on two bits of news. The Redwood City, Ca. support-automation software company said that it reached an agreement to sell its Enterprise operations to Consona Corp., a privately-held Indianapolis, In. customer services software company, in a $20 million cash transaction. Also, SupportStaff upped its revenue guidance for the first quarter.
Swain Ski & Snowboard Center in Swain, N.Y. outside Buffalo, is closing down its resort and said that if it can’t find a buyer it will sell its assets.
Textron Inc.’s shares took off on speculation that the Providence, R.I. aerospace and defense manufacturer could be a takeover target.
Time Warner Inc., in another move to sever ties with its AOL unit, asked entities that hold more than $12 billion of its bonds to alter covenants that place limits on Time Warner’s flexibility to get rid of AOL’s assets. That announcement was made as Tim Armstrong, a former Google Inc. executive with corporate credibility, was brought on board as AOL’s CEO. Some observers feel that the online unit could be set loose within the next several months. It’s thought that as an independent company AOL could be valued at about $2.4 billion.
Times Union, one of the largest daily newspapers in the Albany, N.Y. area, has seen the Newspaper Guild of Albany vote to accept the paper’s contract-buyout offer. Employees of the paper have until 4/15 to accept the deal. Last month, the Times announced it needed to reduce its operational costs by 20%. The company is hoping that as many as seventy employees accept the offer.
United Airlines, Chicago, Il., reported that its traffic for March slumped more than 13% from the year-earlier month–to 9.6 billion revenue passenger miles.
USAA Capital Corp., a provider of insurance, banking, investment and other services, issued $95 million in senior notes, hoping to use proceeds for general corporate purposes. The notes are backed up by the Federal Deposit Insurance Corp.
UST Inc. of Stamford, Ct. and its U.S. Smokeless Tobacco Co. Brands Inc. unit, announced sixty layoffs at a facility in Longwood, Fl.