Download the first four issues of BORDERS GROUP BANKRUPTCY NEWS for FREE at http://bankrupt.com/borders/
National law firm Lowenstein Sandler has been appointed to represent the official unsecured creditors committee for Borders Group. Bruce S. Nathan and Bruce Buechler, members of Lowenstein Sandlers' Bankruptcy, Financial Reorganization & Creditors' Rights Group, are leading the team.
Pursuant to Section 1102 of the Bankruptcy Code, Tracy Hope
Davis, the United States Trustee for Region 2, appointed on
February 24, 2011, seven creditors to serve as members of the
Official Committee of Unsecured Creditors in the Chapter 11 cases
of Borders Group, Inc. and its debtor affiliates.
The Committee members consist of publishers and landlords of
Borders Group:
(1) Penguin Group (USA) Inc.
Attn: Alexander Gigante
Sr. VP Legal Affairs/Corporate Counsel
375 Hudson Street
New York, NY 10014
Tel: (212) 366-2959
Fax: (212) 366-2867
(2) HarperCollins Publishers, LLC
Attn: John Shrearer
Vice President, Credit
100 Keystone Industrial Park
Scranton, Pennsylvania 18512
Tel: (570) 941-1244
Fax: (570) 941-1590
(3) Random House, Inc.
Attn: William C. Sinnott
Vice President, Credit & Disbursements
400 Hahn Road
Westminster, Maryland 21157
Tel: (410) 386-7480
Fax: (410) 386-7439
(4) The Perseus Books Group
Attn: Charles Gallagher
Chief Financial Officer
387 Park Avenue - 12th Floor
New York, NY 10016
Tel: (212) 340-8133
Fax: (212) 340-8105
(5) Sony Music Entertainment
Attn: Susan S. Danz
Vice President of Credit & Collections
210 Clay Avenue
Lyndhurst, New Jersey 07071
Tel: (201) 777-3643
(6) GGP Limited Partnership
Attn: Julie Minnick Bowden
National Bankruptcy Manager
110 North Wacker Drive
Chicago, Illinois 60606
Tel: (312) 960-2707
Fax: (312) 442-6374
(7) Simon Property Group
Attn: Ronald M. Tucker
Vice President/Bankruptcy Counsel
225 W. Washington Street
Indianapolis, Indiana 46204
Tel: (317) 263-2346
Fax: (317) 263-7901
Penguin Putnam Inc. is the Debtors' largest unsecured creditor
with a $41,118,914 claim. Random House has a $33,461,062 claim
against the Debtors. Harper Collins follows Random House in the
largest unsecured creditors list with a claim of $25,793,451.
Perseus holds a $7,776,292 claim against the Debtors and Sony
Music a $4,273,824 claim.
GGP LP and Simon Property are landlords to various Borders
stores. GGP previously disclosed that it is the landlord to more
than 30 Borders-owned stores, which represent 5% of Borders'
total store count.
About Borders Group
Borders Group is a leading operator of book, music and movie
superstores and mall-based bookstores. At Jan. 29, 2011, the
Debtors operated 642 stores, under the Borders, Waldenbooks,
Borders Express and Borders Outlet names, as well as Borders-
branded airport stores in the United States, of which 639 stores
are located in the United States and 3 in Puerto Rico. Two of
Borders' flagship stores (along with other less prominent stores)
are located in Manhattan. In addition, the Debtors operate a
proprietary e-commerce Web site, http://www.Borders.com/ ,
launched in May 2008, which includes both in-store and online e-
commerce components. As of Feb. 11, 2011, Borders employed a
total of 6,100 full-time employees, 11,400 part-time employees,
and approximately 600 contingent employees.
Borders Group Inc. and its affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in
Manhattan on Feb. 16, 2011.
David M. Friedman, Esq., David S. Rosner. Esq, Andrew K. Glenn,
Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres &
Friedman LLP, in New York, serve as counsel to the Debtors.
Jefferies & Company's Inc. is the financial advisor. DJM Property
Management is the lease and real estate services provider. AP
Services LLC is the interim management and restructuring services
provider. The Garden City Group, Inc., is the claims and notice
agent.
Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein
LLP, serve as counsel to the DIP Agents.
The Debtor disclosed $1.28 billion in assets and $1.29 billion in
liabilities as of Dec. 25, 2010
Borders Group has sought approval to sell merchandise and owned
furniture, fixtures and equipment located at approximately 200 of
their stores and, at Borders' option, up to 75 of 136 potential
other stores, through store closing sales.
Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by Borders Group Inc., the United States' second
largest bookstore chain. (http://bankrupt.com/newsstand/ or
215/945-7000)
Sunday, February 27, 2011
STATE INSULATION: Files for Chapter 11 Due to Mesothelioma Claims
For a 30-day trial of the TCR, CLICK
The TCR reported Friday that State Insulation Corporation filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-15110) in Trenton, New Jersey, on Feb. 23 to reorganize and provide for payment of its asbestos and other liabilities and preserve its business for the benefit of all creditors and other stakeholders.
State Insulation is a distributor of insulation products and accessories for the installation of insulation. It has never manufactured any products. The Debtor employs 24 people and its sales are focused in New York, New Jersey, Pennsylvania and certain foreign markets. The Debtor delivers the products it sells using its own fleet of trucks and by common carriers, including shipping product overseas via steamship.
The Debtor estimated assets and debts of $1 million to $10 million as of the Chapter 11 filing.
"During 2008, the Debtor grew to approximately $24 million in sales, however, due to the downturn in the world economy, the Debtor's sales for 2010 are forecast to be $14 million. The Debtors do not anticipate returning to the revenue levels of 2008 in the near future as the economy recovers from the recession of 2009," relates George Lionikis, Jr., chief executive officer of State Insulation.
The Debtor owes $500,000 under a secured loan provided by I&G, an entity owned by its CEO, George Lionikis, Sr.
From its formation through 1977, the Debtor distributed many different insulation products, a small percentage of which contained asbestos as an ingredient. Hundreds of asbestos suits were filed against the Debtor in the 80s and 90s but the Debtor was able to have many cases dismissed as a result of the Debtor's production of evidence demonstrating it had not sold asbestos containing products to the claimant's employers or jobsite. There are still currently approximately 90 asbestos-related actions against the Debtor pending. At the rate the asbestos claims were being filed against and being settled by the Debtor and its insurance carrier, it appeared that the Debtor would be able to address all of the claims through (a) the insurance currently in place (approximately $1.3 million remains) and (b) after exhaustion of the insurance proceeds, with cash flow from operations, Mr. Lionikis relates.
"However, in recent years, there has been an increase in the number of mesothelioma claims, which often result in larger settlements than other asbestos-related claims. Up until 2009, with over 5000 claims either settled or dismissed, the Debtor had only paid a handful of settlements in excess of $100,000, but in 2009 the Debtor had to settle a single claim for $525,000. As of the Petition Date, there are a number of mesothelioma cases that are scheduled for trial or likely to be in the near future," Mr. Lionikis explains.
"While there are fewer and fewer defendants as time passes, the claims are now much larger and the Debtor will be unable to sustain the defense of the remaining and anticipated claims out of the remaining insurance or cash flow, particularly in light of the decline in the Debtor's operating revenues that began in 2009 and is expected to continue for the foreseeable future."
The TCR reported Friday that State Insulation Corporation filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-15110) in Trenton, New Jersey, on Feb. 23 to reorganize and provide for payment of its asbestos and other liabilities and preserve its business for the benefit of all creditors and other stakeholders.
State Insulation is a distributor of insulation products and accessories for the installation of insulation. It has never manufactured any products. The Debtor employs 24 people and its sales are focused in New York, New Jersey, Pennsylvania and certain foreign markets. The Debtor delivers the products it sells using its own fleet of trucks and by common carriers, including shipping product overseas via steamship.
The Debtor estimated assets and debts of $1 million to $10 million as of the Chapter 11 filing.
"During 2008, the Debtor grew to approximately $24 million in sales, however, due to the downturn in the world economy, the Debtor's sales for 2010 are forecast to be $14 million. The Debtors do not anticipate returning to the revenue levels of 2008 in the near future as the economy recovers from the recession of 2009," relates George Lionikis, Jr., chief executive officer of State Insulation.
The Debtor owes $500,000 under a secured loan provided by I&G, an entity owned by its CEO, George Lionikis, Sr.
From its formation through 1977, the Debtor distributed many different insulation products, a small percentage of which contained asbestos as an ingredient. Hundreds of asbestos suits were filed against the Debtor in the 80s and 90s but the Debtor was able to have many cases dismissed as a result of the Debtor's production of evidence demonstrating it had not sold asbestos containing products to the claimant's employers or jobsite. There are still currently approximately 90 asbestos-related actions against the Debtor pending. At the rate the asbestos claims were being filed against and being settled by the Debtor and its insurance carrier, it appeared that the Debtor would be able to address all of the claims through (a) the insurance currently in place (approximately $1.3 million remains) and (b) after exhaustion of the insurance proceeds, with cash flow from operations, Mr. Lionikis relates.
"However, in recent years, there has been an increase in the number of mesothelioma claims, which often result in larger settlements than other asbestos-related claims. Up until 2009, with over 5000 claims either settled or dismissed, the Debtor had only paid a handful of settlements in excess of $100,000, but in 2009 the Debtor had to settle a single claim for $525,000. As of the Petition Date, there are a number of mesothelioma cases that are scheduled for trial or likely to be in the near future," Mr. Lionikis explains.
"While there are fewer and fewer defendants as time passes, the claims are now much larger and the Debtor will be unable to sustain the defense of the remaining and anticipated claims out of the remaining insurance or cash flow, particularly in light of the decline in the Debtor's operating revenues that began in 2009 and is expected to continue for the foreseeable future."
Sunday, February 20, 2011
Beard Group Corporate Restructuring Review For January 2011
Beard Group, Inc, which co-publishes the Troubled Company Reporter and
the Troubled Company Prospector, discusses recent trends and
developments in corporate bankruptcies in this audio presentation.
TCR and TCP editors report the past month's largest chapter 11
bankruptcy filings; anticipated large chapter 11 bankruptcies in the
near-term, a quick review of major pending disputes in chapter 11
bankruptcy cases, reminders about debtors whose emergence from
bankruptcy has been delayed; information you're unlikely to find
elsewhere about new publicly traded securities being issued by
bankrupt companies.
If you'd like to receive the Troubled Company Reporter for 30-days at
no cost -- and with no strings attached -- call Nancy Frasier or
Charlie Covell at (240) 629-3300 or visit
bankrupt-[dot]-com-[slash]-free-trial and we'll add you to the
distribution list.
the Troubled Company Prospector, discusses recent trends and
developments in corporate bankruptcies in this audio presentation.
TCR and TCP editors report the past month's largest chapter 11
bankruptcy filings; anticipated large chapter 11 bankruptcies in the
near-term, a quick review of major pending disputes in chapter 11
bankruptcy cases, reminders about debtors whose emergence from
bankruptcy has been delayed; information you're unlikely to find
elsewhere about new publicly traded securities being issued by
bankrupt companies.
If you'd like to receive the Troubled Company Reporter for 30-days at
no cost -- and with no strings attached -- call Nancy Frasier or
Charlie Covell at (240) 629-3300 or visit
bankrupt-[dot]-com-[slash]-free-trial and we'll add you to the
distribution list.
Friday, February 18, 2011
BORDERS GROUP Bankruptcy News, Issue No. 2
=================================================================
BORDERS GROUP BANKRUPTCY NEWS Issue Number 2
-----------------------------------------------------------------
Copyright 2011 (ISSN XXXX-XXXX) February 18, 2011
-----------------------------------------------------------------
Bankruptcy Creditors' Service, Inc. 215-945-7000 FAX 215-945-7001
-----------------------------------------------------------------
BORDERS GROUP BANKRUPTCY NEWS is published by Bankruptcy
Creditors' Service, Inc., 572 Fernwood Lane, Fairless Hills,
Pennsylvania 19030, on an ad hoc basis (generally every 10 to 20
days) as significant activity occurs in the Debtors' cases. New
issues are prepared by Michille Deiparine, Ivy B. Magdadaro and
Peter A. Chapman, Editors. Subscription rate is US$45 per issue.
Any re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
=================================================================
IN THIS ISSUE
-------------
[00012] BORDERS GETS COURT NOD TO LIQUIDATE 200+ STORES
[00013] BORDERS STORE CLOSING SALES TO COMMENCE ON FEB. 19
[00014] BORDERS GETS INTERIM ACCESS TO $400-MIL. IN DIP FINANCING
[00015] DEBTORS' MOTION TO OBTAIN $505-MIL. IN DIP FINANCING
[00016] DEBTORS' MOTION FOR AUTHORITY TO USE CASH COLLATERAL
[00017] DEBTORS' MOTION TO USE EXISTING CASH MANAGEMENT SYSTEM
[00018] DEBTOR'S MOTION TO MAINTAIN EXISTING BANK ACCOUNTS
[00019] DEBTORS' MOTION TO CONTINUE USING BUSINESS FORMS
[00020] DEBTORS' MOTION TO CONTINUE USE OF CORPORATE CREDIT CARDS
[00021] DEBTOR'S MOTION TO EXTEND TIME TO COMPLY WITH SEC. 345
[00022] DEBTOR'S MOTION TO CONTINUE INTERCOMPANY TRANSACTIONS
[00023] DEBTORS' MOTION TO HONOR PREPETITION EMPLOYEE OBLIGATIONS
[00024] DEBTORS' MOTION TO HONOR PREPETITION VENDOR OBLIGATIONS
[00025] DEBTORS' MOTION TO HONOR PREPETITION CUSTOMER PROGRAMS
[00026] DEBTORS' MOTION TO PAY PREPETITION TAXES
[00027] BORDERS' BANKRUPTCY FILING TRIGGERS PAYMENT OBLIGATIONS
[00028] BORDERS RECEIVES NOTICE OF STOCK DELISTING FROM NYSE
[00029] BORDERS' BANKRUPTCY MAY THWART BILL ACKMAN'S MERGER PLANS
[00030] MALL OWNERS SEEK TO APPEAR IN BORDERS' BANKRUPTCY CASE
KEY DATE CALENDAR
-----------------
02/16/11 Voluntary Chapter 11 Petition Date
03/18/11 Deadline to Provide Utilities with Adequate Assurance
04/05/11 Deadline to File Schedules of Assets and Liabilities
04/05/11 Deadline to File Statement of Financial Affairs
04/05/11 Deadline to File Lists of Contracts and Leases
05/17/11 Deadline to Remove Actions Pursuant to F.R.B.P. 9027
06/16/11 Expiration of Debtors' Exclusive Plan Proposal Period
06/16/11 Deadline to Make Decisions About Lease Dispositions
08/15/11 Expiration of Debtors' Exclusive Solicitation Period
02/15/13 Deadline for Debtors' Commencement of Avoidance Actions
Organizational Meeting to Form Creditors' Committees
First Meeting of Creditors under 11 USC Sec. 341
Bar Date for filing Proofs of Claim
-----------------------------------------------------------------
[00012] BORDERS GETS COURT NOD TO LIQUIDATE 200+ STORES
-----------------------------------------------------------------
[00013] BORDERS STORE CLOSING SALES TO COMMENCE ON FEB. 19
-----------------------------------------------------------------
See prior related entry at [00007] (Borders Group to Close 200+
Stores Under Bankruptcy).
Chief Judge Arthur Gonzalez of the U.S. Bankruptcy Court for the
Southern District of New York has approved Borders Group Inc.'s
previously-disclosed strategic Store Reduction Program to
facilitate its reorganization and repositioning. READ FULL STORY
-----------------------------------------------------------------
[00014] BORDERS GETS INTERIM ACCESS TO $400-MIL. IN DIP FINANCING
-----------------------------------------------------------------
[00015] DEBTORS' MOTION TO OBTAIN $505-MIL. IN DIP FINANCING
-----------------------------------------------------------------
Judge Arthur J. Gonzales of the U.S. Bankruptcy Court for the
Southern District of New York has granted Borders Group, Inc. and
its debtor affiliates interim access to approximately $400
million of a proposed $505 million debtor-in-possession financing
facility led by GE Capital, Restructuring Finance. READ FULL STORY
-----------------------------------------------------------------
[00016] DEBTORS' MOTION FOR AUTHORITY TO USE CASH COLLATERAL
-----------------------------------------------------------------
See prior related entry at [00015] (Debtors' Motion to Obtain
$505-Mil. in DIP Financing.)
The Debtors have sought and obtained a Court order allowing them
to use of their Cash Collateral on an interim basis, in
accordance with a prepared budget. READ FULL STORY
-----------------------------------------------------------------
[00017] DEBTORS' MOTION TO USE EXISTING CASH MANAGEMENT SYSTEM
-----------------------------------------------------------------
In the ordinary course of business, the Debtors use a cash
management system, which is similar to those utilized by other
large retail companies that operate in numerous locations and
across multiple distribution channels, to efficiently collect,
transfer, and disburse funds generated by their business
operations. READ FULL STORY
-----------------------------------------------------------------
[00018] DEBTOR'S MOTION TO MAINTAIN EXISTING BANK ACCOUNTS
-----------------------------------------------------------------
In connection with their Cash Management System, the Debtors
maintained about 135 bank accounts, a schedule of which is
available for free at:
http://bankrupt.com/misc/Borders_BankAccounts.pdfREAD FULL STORY
-----------------------------------------------------------------
[00019] DEBTORS' MOTION TO CONTINUE USING BUSINESS FORMS
-----------------------------------------------------------------
The Debtors sought and obtained an interim order from the Court
allowing it to continue using their correspondence and business
forms, including, but not limited to, purchase orders, multi-copy
checks, letterhead, envelopes, promotional materials, and other
business forms, substantially in the forms existing immediately
before the Petition Date, without reference to their status as
debtors-in-possession. READ FULL STORY
-----------------------------------------------------------------
[00020] DEBTORS' MOTION TO CONTINUE USE OF CORPORATE CREDIT CARDS
-----------------------------------------------------------------
In the ordinary course of business, the Debtors customarily pay
for a variety of their expenses, including employees' business-
related expenses incurred in performing their employment
obligations and small accounts payable at the individual store
level with company credit cards. READ FULL STORY
----------------------------------------------------------------
[00021] DEBTOR'S MOTION TO EXTEND TIME TO COMPLY WITH SEC. 345
-----------------------------------------------------------------
Section 345 of the Bankruptcy Code governs a debtor's deposit and
investment of cash during a Chapter 11 case and authorizes
deposits or investments of money "as will yield the maximum
reasonable net return on such money, taking into account the
safety of such deposit or investment." READ FULL STORY
-----------------------------------------------------------------
[00022] DEBTOR'S MOTION TO CONTINUE INTERCOMPANY TRANSACTIONS
-----------------------------------------------------------------
The Debtors sought and obtained the Court's authority, on an
interim basis, to continue to honor and make payments with
respect to intercompany transactions in their existing cash
management system. READ FULL STORY
-----------------------------------------------------------------
[00023] DEBTORS' MOTION TO HONOR PREPETITION EMPLOYEE OBLIGATIONS
-----------------------------------------------------------------
The Debtors employ about 18,100 employees, of whom 6,100 are
full-time employees, 11,400 are part-time employees, and 600 are
contingent employees who are required to work one shift per month
and usually do so at special events. About 16,340 employees are
paid on an hourly basis and 1,760 employees are paid a fixed
salary. READ FULL STORY
-----------------------------------------------------------------
[00024] DEBTORS' MOTION TO HONOR PREPETITION VENDOR OBLIGATIONS
-----------------------------------------------------------------
An integral component of the Debtors' retail operations is the
efficient flow of inventory to their distribution centers, stores
and customers. Accordingly, the Debtors rely heavily on numerous
common carriers, movers, shippers, warehousemen, customs brokers
and certain other third-party vendors and service providers to
ship, transport, store, move through customs and deliver
inventory through established distribution networks. READ FULL STORY
-----------------------------------------------------------------
[00025] DEBTORS' MOTION TO HONOR PREPETITION CUSTOMER PROGRAMS
-----------------------------------------------------------------
The Debtors engage in certain marketing and sales practices that
are generally targeted to develop and sustain positive
reputations for their stores and merchandise in the marketplace;
and designed to attract new customers to their stores and to
enhance store loyalty and sales among their existing customer
base. READ FULL STORY
-----------------------------------------------------------------
[00026] DEBTORS' MOTION TO PAY PREPETITION TAXES
-----------------------------------------------------------------
In the ordinary course of business, the Debtors incur taxes and
assessments that can be classified as (i) Sales and Use Taxes;
(ii) Import Taxes; (iii) Franchise and Income Taxes; (iv) Real
and Personal Property Taxes; and (v) Business License
Assessments, Annual Report Taxes and other charges and
assessments. READ FULL STORY
-----------------------------------------------------------------
[00027] BORDERS' BANKRUPTCY FILING TRIGGERS PAYMENT OBLIGATIONS
-----------------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission, Borders Group, Inc. acknowledged that the filing of
its Chapter 11 petition constituted an event of default under its
pre-bankruptcy Credit Agreement and Term Loan Agreement with
certain lenders. READ FULL STORY
-----------------------------------------------------------------
[00028] BORDERS RECEIVES NOTICE OF STOCK DELISTING FROM NYSE
-----------------------------------------------------------------
Borders Group, Inc. informed the U.S. Securities and Exchange
Commission that it received a notice on February 16, 2011, that
the New York Stock Exchange, Inc. had determined that the listing
of the Company's common stock should be suspended immediately as
a result of the bankruptcy filing of the Company and certain of
its affiliates. READ FULL STORY
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[00029] BORDERS' BANKRUPTCY MAY THWART BILL ACKMAN'S MERGER PLANS
-----------------------------------------------------------------
Borders Group, Inc.'s Chapter 11 filing on February 16, 2011, may
be a major obstacle to William Ackman's vision to merge the
bankrupt bookstore company with Barnes & Noble Inc., according to
analystsREAD FULL STORY
-----------------------------------------------------------------
[00030] MALL OWNERS SEEK TO APPEAR IN BORDERS' BANKRUPTCY CASE
-----------------------------------------------------------------
Simon Property Group, Inc. and GGP Limited Partnership, as direct
and indirect owner of landlord or managing agent for certain
malls of General Growth Properties, Inc., filed separate notices
of appearance and requests for copies of all notices and
pleadings in Borders Group, Inc.'s Chapter 11 case. READ FULL STORY
BORDERS GROUP BANKRUPTCY NEWS Issue Number 2
-----------------------------------------------------------------
Copyright 2011 (ISSN XXXX-XXXX) February 18, 2011
-----------------------------------------------------------------
Bankruptcy Creditors' Service, Inc. 215-945-7000 FAX 215-945-7001
-----------------------------------------------------------------
BORDERS GROUP BANKRUPTCY NEWS is published by Bankruptcy
Creditors' Service, Inc., 572 Fernwood Lane, Fairless Hills,
Pennsylvania 19030, on an ad hoc basis (generally every 10 to 20
days) as significant activity occurs in the Debtors' cases. New
issues are prepared by Michille Deiparine, Ivy B. Magdadaro and
Peter A. Chapman, Editors. Subscription rate is US$45 per issue.
Any re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
=================================================================
IN THIS ISSUE
-------------
[00012] BORDERS GETS COURT NOD TO LIQUIDATE 200+ STORES
[00013] BORDERS STORE CLOSING SALES TO COMMENCE ON FEB. 19
[00014] BORDERS GETS INTERIM ACCESS TO $400-MIL. IN DIP FINANCING
[00015] DEBTORS' MOTION TO OBTAIN $505-MIL. IN DIP FINANCING
[00016] DEBTORS' MOTION FOR AUTHORITY TO USE CASH COLLATERAL
[00017] DEBTORS' MOTION TO USE EXISTING CASH MANAGEMENT SYSTEM
[00018] DEBTOR'S MOTION TO MAINTAIN EXISTING BANK ACCOUNTS
[00019] DEBTORS' MOTION TO CONTINUE USING BUSINESS FORMS
[00020] DEBTORS' MOTION TO CONTINUE USE OF CORPORATE CREDIT CARDS
[00021] DEBTOR'S MOTION TO EXTEND TIME TO COMPLY WITH SEC. 345
[00022] DEBTOR'S MOTION TO CONTINUE INTERCOMPANY TRANSACTIONS
[00023] DEBTORS' MOTION TO HONOR PREPETITION EMPLOYEE OBLIGATIONS
[00024] DEBTORS' MOTION TO HONOR PREPETITION VENDOR OBLIGATIONS
[00025] DEBTORS' MOTION TO HONOR PREPETITION CUSTOMER PROGRAMS
[00026] DEBTORS' MOTION TO PAY PREPETITION TAXES
[00027] BORDERS' BANKRUPTCY FILING TRIGGERS PAYMENT OBLIGATIONS
[00028] BORDERS RECEIVES NOTICE OF STOCK DELISTING FROM NYSE
[00029] BORDERS' BANKRUPTCY MAY THWART BILL ACKMAN'S MERGER PLANS
[00030] MALL OWNERS SEEK TO APPEAR IN BORDERS' BANKRUPTCY CASE
KEY DATE CALENDAR
-----------------
02/16/11 Voluntary Chapter 11 Petition Date
03/18/11 Deadline to Provide Utilities with Adequate Assurance
04/05/11 Deadline to File Schedules of Assets and Liabilities
04/05/11 Deadline to File Statement of Financial Affairs
04/05/11 Deadline to File Lists of Contracts and Leases
05/17/11 Deadline to Remove Actions Pursuant to F.R.B.P. 9027
06/16/11 Expiration of Debtors' Exclusive Plan Proposal Period
06/16/11 Deadline to Make Decisions About Lease Dispositions
08/15/11 Expiration of Debtors' Exclusive Solicitation Period
02/15/13 Deadline for Debtors' Commencement of Avoidance Actions
-----------------------------------------------------------------
[00012] BORDERS GETS COURT NOD TO LIQUIDATE 200+ STORES
-----------------------------------------------------------------
[00013] BORDERS STORE CLOSING SALES TO COMMENCE ON FEB. 19
-----------------------------------------------------------------
See prior related entry at [00007] (Borders Group to Close 200+
Stores Under Bankruptcy).
Chief Judge Arthur Gonzalez of the U.S. Bankruptcy Court for the
Southern District of New York has approved Borders Group Inc.'s
previously-disclosed strategic Store Reduction Program to
facilitate its reorganization and repositioning. READ FULL STORY
-----------------------------------------------------------------
[00014] BORDERS GETS INTERIM ACCESS TO $400-MIL. IN DIP FINANCING
-----------------------------------------------------------------
[00015] DEBTORS' MOTION TO OBTAIN $505-MIL. IN DIP FINANCING
-----------------------------------------------------------------
Judge Arthur J. Gonzales of the U.S. Bankruptcy Court for the
Southern District of New York has granted Borders Group, Inc. and
its debtor affiliates interim access to approximately $400
million of a proposed $505 million debtor-in-possession financing
facility led by GE Capital, Restructuring Finance. READ FULL STORY
-----------------------------------------------------------------
[00016] DEBTORS' MOTION FOR AUTHORITY TO USE CASH COLLATERAL
-----------------------------------------------------------------
See prior related entry at [00015] (Debtors' Motion to Obtain
$505-Mil. in DIP Financing.)
The Debtors have sought and obtained a Court order allowing them
to use of their Cash Collateral on an interim basis, in
accordance with a prepared budget. READ FULL STORY
-----------------------------------------------------------------
[00017] DEBTORS' MOTION TO USE EXISTING CASH MANAGEMENT SYSTEM
-----------------------------------------------------------------
In the ordinary course of business, the Debtors use a cash
management system, which is similar to those utilized by other
large retail companies that operate in numerous locations and
across multiple distribution channels, to efficiently collect,
transfer, and disburse funds generated by their business
operations. READ FULL STORY
-----------------------------------------------------------------
[00018] DEBTOR'S MOTION TO MAINTAIN EXISTING BANK ACCOUNTS
-----------------------------------------------------------------
In connection with their Cash Management System, the Debtors
maintained about 135 bank accounts, a schedule of which is
available for free at:
http://bankrupt.com/misc/Borders_BankAccounts.pdfREAD FULL STORY
-----------------------------------------------------------------
[00019] DEBTORS' MOTION TO CONTINUE USING BUSINESS FORMS
-----------------------------------------------------------------
The Debtors sought and obtained an interim order from the Court
allowing it to continue using their correspondence and business
forms, including, but not limited to, purchase orders, multi-copy
checks, letterhead, envelopes, promotional materials, and other
business forms, substantially in the forms existing immediately
before the Petition Date, without reference to their status as
debtors-in-possession. READ FULL STORY
-----------------------------------------------------------------
[00020] DEBTORS' MOTION TO CONTINUE USE OF CORPORATE CREDIT CARDS
-----------------------------------------------------------------
In the ordinary course of business, the Debtors customarily pay
for a variety of their expenses, including employees' business-
related expenses incurred in performing their employment
obligations and small accounts payable at the individual store
level with company credit cards. READ FULL STORY
----------------------------------------------------------------
[00021] DEBTOR'S MOTION TO EXTEND TIME TO COMPLY WITH SEC. 345
-----------------------------------------------------------------
Section 345 of the Bankruptcy Code governs a debtor's deposit and
investment of cash during a Chapter 11 case and authorizes
deposits or investments of money "as will yield the maximum
reasonable net return on such money, taking into account the
safety of such deposit or investment." READ FULL STORY
-----------------------------------------------------------------
[00022] DEBTOR'S MOTION TO CONTINUE INTERCOMPANY TRANSACTIONS
-----------------------------------------------------------------
The Debtors sought and obtained the Court's authority, on an
interim basis, to continue to honor and make payments with
respect to intercompany transactions in their existing cash
management system. READ FULL STORY
-----------------------------------------------------------------
[00023] DEBTORS' MOTION TO HONOR PREPETITION EMPLOYEE OBLIGATIONS
-----------------------------------------------------------------
The Debtors employ about 18,100 employees, of whom 6,100 are
full-time employees, 11,400 are part-time employees, and 600 are
contingent employees who are required to work one shift per month
and usually do so at special events. About 16,340 employees are
paid on an hourly basis and 1,760 employees are paid a fixed
salary. READ FULL STORY
-----------------------------------------------------------------
[00024] DEBTORS' MOTION TO HONOR PREPETITION VENDOR OBLIGATIONS
-----------------------------------------------------------------
An integral component of the Debtors' retail operations is the
efficient flow of inventory to their distribution centers, stores
and customers. Accordingly, the Debtors rely heavily on numerous
common carriers, movers, shippers, warehousemen, customs brokers
and certain other third-party vendors and service providers to
ship, transport, store, move through customs and deliver
inventory through established distribution networks. READ FULL STORY
-----------------------------------------------------------------
[00025] DEBTORS' MOTION TO HONOR PREPETITION CUSTOMER PROGRAMS
-----------------------------------------------------------------
The Debtors engage in certain marketing and sales practices that
are generally targeted to develop and sustain positive
reputations for their stores and merchandise in the marketplace;
and designed to attract new customers to their stores and to
enhance store loyalty and sales among their existing customer
base. READ FULL STORY
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[00026] DEBTORS' MOTION TO PAY PREPETITION TAXES
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In the ordinary course of business, the Debtors incur taxes and
assessments that can be classified as (i) Sales and Use Taxes;
(ii) Import Taxes; (iii) Franchise and Income Taxes; (iv) Real
and Personal Property Taxes; and (v) Business License
Assessments, Annual Report Taxes and other charges and
assessments. READ FULL STORY
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[00027] BORDERS' BANKRUPTCY FILING TRIGGERS PAYMENT OBLIGATIONS
-----------------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission, Borders Group, Inc. acknowledged that the filing of
its Chapter 11 petition constituted an event of default under its
pre-bankruptcy Credit Agreement and Term Loan Agreement with
certain lenders. READ FULL STORY
-----------------------------------------------------------------
[00028] BORDERS RECEIVES NOTICE OF STOCK DELISTING FROM NYSE
-----------------------------------------------------------------
Borders Group, Inc. informed the U.S. Securities and Exchange
Commission that it received a notice on February 16, 2011, that
the New York Stock Exchange, Inc. had determined that the listing
of the Company's common stock should be suspended immediately as
a result of the bankruptcy filing of the Company and certain of
its affiliates. READ FULL STORY
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[00029] BORDERS' BANKRUPTCY MAY THWART BILL ACKMAN'S MERGER PLANS
-----------------------------------------------------------------
Borders Group, Inc.'s Chapter 11 filing on February 16, 2011, may
be a major obstacle to William Ackman's vision to merge the
bankrupt bookstore company with Barnes & Noble Inc., according to
analystsREAD FULL STORY
-----------------------------------------------------------------
[00030] MALL OWNERS SEEK TO APPEAR IN BORDERS' BANKRUPTCY CASE
-----------------------------------------------------------------
Simon Property Group, Inc. and GGP Limited Partnership, as direct
and indirect owner of landlord or managing agent for certain
malls of General Growth Properties, Inc., filed separate notices
of appearance and requests for copies of all notices and
pleadings in Borders Group, Inc.'s Chapter 11 case. READ FULL STORY
OCEAN PLACE: Resort Files for Chapter 11 in New Jersey
(Troubled Company Reporter - Feb. 18, 2011)
The TCR reports that Ocean Place Development LLC, owner of the Ocean Place Resort & Spa in Long Branch, New Jersey, filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-14295) on Feb. 15, 2011.
William R. Dixon, JR., vice-president of TLC New Jersey Corp., a Delaware corporation, manager of the Debtor, relates that the Debtor has generated positive earnings from operations every year since its acquisition of the resort in 2000. Like many similar properties, the economic declines from 2007 through April 2010 severely harmed revenues and the net operating income from the property. However, since April 2010, revenues have begun to recover and "trailing 12 months" net operating income of the property has more than doubled. Net operating income of the property for 2010 was $3,546,729.
In connection with city of Long Branch's long-term plan to establish itself as a premier resort destination, the Debtor signed a Redevelopment Agreement with the city in August 2007, promising to add 60 new hotel rooms, 200 condo-hotel units and increase square footage of the property to 1,496,163 square feet. The redevelopment would make Ocean Place Resort "the centerpiece of the entire Long Branch Oceanfront Redevelopment and the largest oceanfront resort and conference center on the New Jersey shore between New York City and Atlantic City," Mr. Dixon said.
Dispute with Lender
The Debtor owes $56,606,400 pursuant to two promissory notes held by AFP-104 Corp, secured by the Debtors' resort property. The Debtor also has unsecured debts totaling $60 million.
The secured notes matured and became due on Jan. 9, 2008. The lender refused to grant an extension at maturity of the secured loans and immediately imposed late payment penalties and the default rate of interest, approximately doubling the required debt service payments.
From inception of the secured loans, operating expenses for the property under the terms of the loan documentation have been paid from a "lockbox" under the control of the Lender and its loan servicer.
"Within the last several weeks, the Lender has refused to approve the payment of property and liability insurance premiums from the lockbox for coverage placed by the Debtor beginning on December 1, 2010, which leaves the property and the Debtor severely exposed to loss from possible property damage and liabilities incurred in operating the business," Mr. Dixon said.
According to Mr. Dixon, prior and subsequent to the date of maturity of the secured loans, OPD solicited a full refinance of the secured obligations from over 100 prospective lenders without success due to the withdrawal of virtually the entire lending community from the business of making commercial loans triggered by the global financial meltdown and economic chaos.
Accordingly, the Debtor sought Chapter 11 protection.
"There is substantial value to the existing hotel and resort including the modest value-added improvements which could be made to the property prior to consideration of the value of major redevelopment opportunities," Mr. Dixon said.
First Day Motions
The Debtor has filed "first day" motions aimed at maintaining existing operations at the property and full employment of its employee base in a manner such that "resort guests will generally be unaware of any operational changes or any change in conditions due to the contemplated financial reorganization of the Debtor."
The first day motions include proposals to use cash collateral, maintain existing bank accounts, and pay wages owed to employees.
About Ocean Place Development
Ocean Place Development owns the Ocean Place Resort & Spa, a resort property is located on the Atlantic beachfront in Long Branch, New Jersey, just 55 miles south of New York City and
82 miles north of Atlantic City.
The existing resort is sited on 17-acres featuring approximately 1,000 feet of ocean frontage and is improved with a 254-room hotel that includes 40,000 square feet of meeting space, three restaurants, a bar/lounge, a full-service spa, and numerous resort
amenities.
West Paces Hotel Group LLC is the resort's managing agent.
The number of people employed full time at the Debtor's property ranges, depending on the season, between approximately 95 and 340.
The TCR reports that Ocean Place Development LLC, owner of the Ocean Place Resort & Spa in Long Branch, New Jersey, filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-14295) on Feb. 15, 2011.
William R. Dixon, JR., vice-president of TLC New Jersey Corp., a Delaware corporation, manager of the Debtor, relates that the Debtor has generated positive earnings from operations every year since its acquisition of the resort in 2000. Like many similar properties, the economic declines from 2007 through April 2010 severely harmed revenues and the net operating income from the property. However, since April 2010, revenues have begun to recover and "trailing 12 months" net operating income of the property has more than doubled. Net operating income of the property for 2010 was $3,546,729.
In connection with city of Long Branch's long-term plan to establish itself as a premier resort destination, the Debtor signed a Redevelopment Agreement with the city in August 2007, promising to add 60 new hotel rooms, 200 condo-hotel units and increase square footage of the property to 1,496,163 square feet. The redevelopment would make Ocean Place Resort "the centerpiece of the entire Long Branch Oceanfront Redevelopment and the largest oceanfront resort and conference center on the New Jersey shore between New York City and Atlantic City," Mr. Dixon said.
Dispute with Lender
The Debtor owes $56,606,400 pursuant to two promissory notes held by AFP-104 Corp, secured by the Debtors' resort property. The Debtor also has unsecured debts totaling $60 million.
The secured notes matured and became due on Jan. 9, 2008. The lender refused to grant an extension at maturity of the secured loans and immediately imposed late payment penalties and the default rate of interest, approximately doubling the required debt service payments.
From inception of the secured loans, operating expenses for the property under the terms of the loan documentation have been paid from a "lockbox" under the control of the Lender and its loan servicer.
"Within the last several weeks, the Lender has refused to approve the payment of property and liability insurance premiums from the lockbox for coverage placed by the Debtor beginning on December 1, 2010, which leaves the property and the Debtor severely exposed to loss from possible property damage and liabilities incurred in operating the business," Mr. Dixon said.
According to Mr. Dixon, prior and subsequent to the date of maturity of the secured loans, OPD solicited a full refinance of the secured obligations from over 100 prospective lenders without success due to the withdrawal of virtually the entire lending community from the business of making commercial loans triggered by the global financial meltdown and economic chaos.
Accordingly, the Debtor sought Chapter 11 protection.
"There is substantial value to the existing hotel and resort including the modest value-added improvements which could be made to the property prior to consideration of the value of major redevelopment opportunities," Mr. Dixon said.
First Day Motions
The Debtor has filed "first day" motions aimed at maintaining existing operations at the property and full employment of its employee base in a manner such that "resort guests will generally be unaware of any operational changes or any change in conditions due to the contemplated financial reorganization of the Debtor."
The first day motions include proposals to use cash collateral, maintain existing bank accounts, and pay wages owed to employees.
About Ocean Place Development
Ocean Place Development owns the Ocean Place Resort & Spa, a resort property is located on the Atlantic beachfront in Long Branch, New Jersey, just 55 miles south of New York City and
82 miles north of Atlantic City.
The existing resort is sited on 17-acres featuring approximately 1,000 feet of ocean frontage and is improved with a 254-room hotel that includes 40,000 square feet of meeting space, three restaurants, a bar/lounge, a full-service spa, and numerous resort
amenities.
West Paces Hotel Group LLC is the resort's managing agent.
The number of people employed full time at the Debtor's property ranges, depending on the season, between approximately 95 and 340.
CONSTAR INT'L: Has $10-Mil. L/C Facility from Wells Fargo
Constar International Inc. and its units seek authority from the U.S. Bankruptcy Court for the District of Delaware to obtain a postpetition letter of credit facility in the amount of $10,000,000 from Wells Fargo Capital Finance, LLC.
Jamie L. Edmonson, Esq., at Bayard, P.A., said in a court filing that the continuing availability of letters of credit to guarantee, where necessary, Debtors' obligations to its vendors and suppliers is critical to Debtors' operations. However, according to Mr. Edmonson, by entering into a the L/C facility agreement, the Debtors are not taking new debt, they are simply replacing one prepetition letter credit facility that was provided by General Electric Capital Corp.
While the Debtors' revolving credit facility with GE Capital -- of which $29.4 million was outstanding as of the bankruptcy filing -- was refinanced and paid shortly with the DIP facility provided by noteholders that are supporting the pre-negotiated plan, the Debtors kept in place those undrawn letters of credit outstanding under the prepetition credit facility. The first of the prepetition L/Cs will shortly mature and GECC is unwilling to reissue the L/Cs when they mature.
Wells Fargo -- who the Debtors intend will serve as their exit financier -- is willing to step in and replace GE Capital as the provider of letters of credit. Accordingly, Debtors now seek to
replace the letter of credit facility under the Prepetition Facility with a letter of credit facility provided by Wells Fargo.
The Debtors will pay to Wells Fargo on the first business day of each calendar month the rate of 1% percent per annum on the aggregate face amount of all LCs outstanding.
Pre-Negotiated Chapter 11 Plan
Constar International filed for Chapter 11 in January with a Chapter 11 plan negotiated with 75% of holders of senior secured floating rate notes.
The restructuring plan calls for, among other things, a reduction
of the Company's current debt level of $220 million by roughly
$135 million to $150 million, with a significant corresponding
reduction in cash interest.
The Restructuring Support Agreement can be terminated by noteholders if the Debtors failed to obtain confirmation of the Chapter 11 plan by May (130 days after the Chapter 11 filing).
As of the Petition Date, the Debtors had outstanding debt in the
aggregate principal amount of roughly $251 million, consisting
primarily of roughly (a) $29.4 million under their senior
secured credit facility, including accrued and unpaid interest,
and (b) $221.4 million in secured floating rate notes due 2012
(including accrued interest).
Pursuant to the proposed Plan of Reorganization, Noteholders will
convert 100% of the face amount of the current notes into new term
debt in the face amount of US$70 million and convertible preferred
stock of US$30 million, and will become the majority owners of the
new common stock. Under the proposed plan, the Company's general
unsecured claims will be converted to equity, and the current
equity will be cancelled. The Company anticipates that the
restructuring will be completed by late spring of 2011, subject to
court approval.
A copy of the Pre-Arranged Plan is available for free at:
http://bankrupt.com/misc/Constar_Disc_Statement_2011.pdf
A copy of the disclosure statement explaining the Plan is available for free at:
http://bankrupt.com/misc/Constar_Prearranged_Plan_2011.pdf
About Constar International
Philadelphia, Pennsylvania-based Constar International Inc. --
http://www.constar.net/ -- produces and supplies polyethylene
terephthalate plastic containers for food and beverages.
Constar filed for Chapter 11 protection in December 2008 (Bankr.
D. Del. Lead Case No. 08-13432), with a pre-negotiated Chapter 11
plan. The plan, which reduced Constar's debt load by roughly
$175 million, became effective on May 29, 2009. Attorneys at
Bayard P.A., and Wilmer Cutler Pickering Hale and Dorr LLP
represented the Debtor in the case.
Due to operating losses caused by a significant decline in demand
for its products from Pepsi-Cola Advertising and Marketing Inc.
and other customers, Constar and its affiliates returned to
Chapter 11 on January 11, 2011 (Bankr. D. Del. Case No. 11-10109),
with a Chapter 11 plan negotiated with holders of 75% of the
holders of $220 million in senior secured floating-rate notes.
Andrew Goldman, Esq., and Dennis Jenkins, Esq., at Wilmer Cutler
Pickering Hale and Dorr LLP, serve as the Debtors' general
bankruptcy counsel. Jamie Lynne Edmonson, Esq., and Neil B.
Glassman, Esq., at Bayard, P.A., serve as co-counsel to the
Debtors. PricewaterhouseCoopers serves as the Debtors'
independent auditors and accountants. Kurtzman Carson Consultants
LLC serves as the Debtors' claims agent.
Patrick J. Nash Jr., Esq., and Paul Wierbicki, Esq., at Kirkland &
Ellis LLP, serve as counsel to the noteholders that have signed
that plan support agreement.
The Debtors disclosed $418 million in total assets and
$414 million in total debts as of Sept. 30, 2010.
============================================
For a FREE 30-day trial of the TCR, CLICK
Jamie L. Edmonson, Esq., at Bayard, P.A., said in a court filing that the continuing availability of letters of credit to guarantee, where necessary, Debtors' obligations to its vendors and suppliers is critical to Debtors' operations. However, according to Mr. Edmonson, by entering into a the L/C facility agreement, the Debtors are not taking new debt, they are simply replacing one prepetition letter credit facility that was provided by General Electric Capital Corp.
While the Debtors' revolving credit facility with GE Capital -- of which $29.4 million was outstanding as of the bankruptcy filing -- was refinanced and paid shortly with the DIP facility provided by noteholders that are supporting the pre-negotiated plan, the Debtors kept in place those undrawn letters of credit outstanding under the prepetition credit facility. The first of the prepetition L/Cs will shortly mature and GECC is unwilling to reissue the L/Cs when they mature.
Wells Fargo -- who the Debtors intend will serve as their exit financier -- is willing to step in and replace GE Capital as the provider of letters of credit. Accordingly, Debtors now seek to
replace the letter of credit facility under the Prepetition Facility with a letter of credit facility provided by Wells Fargo.
The Debtors will pay to Wells Fargo on the first business day of each calendar month the rate of 1% percent per annum on the aggregate face amount of all LCs outstanding.
Pre-Negotiated Chapter 11 Plan
Constar International filed for Chapter 11 in January with a Chapter 11 plan negotiated with 75% of holders of senior secured floating rate notes.
The restructuring plan calls for, among other things, a reduction
of the Company's current debt level of $220 million by roughly
$135 million to $150 million, with a significant corresponding
reduction in cash interest.
The Restructuring Support Agreement can be terminated by noteholders if the Debtors failed to obtain confirmation of the Chapter 11 plan by May (130 days after the Chapter 11 filing).
As of the Petition Date, the Debtors had outstanding debt in the
aggregate principal amount of roughly $251 million, consisting
primarily of roughly (a) $29.4 million under their senior
secured credit facility, including accrued and unpaid interest,
and (b) $221.4 million in secured floating rate notes due 2012
(including accrued interest).
Pursuant to the proposed Plan of Reorganization, Noteholders will
convert 100% of the face amount of the current notes into new term
debt in the face amount of US$70 million and convertible preferred
stock of US$30 million, and will become the majority owners of the
new common stock. Under the proposed plan, the Company's general
unsecured claims will be converted to equity, and the current
equity will be cancelled. The Company anticipates that the
restructuring will be completed by late spring of 2011, subject to
court approval.
A copy of the Pre-Arranged Plan is available for free at:
http://bankrupt.com/misc/Constar_Disc_Statement_2011.pdf
A copy of the disclosure statement explaining the Plan is available for free at:
http://bankrupt.com/misc/Constar_Prearranged_Plan_2011.pdf
About Constar International
Philadelphia, Pennsylvania-based Constar International Inc. --
http://www.constar.net/ -- produces and supplies polyethylene
terephthalate plastic containers for food and beverages.
Constar filed for Chapter 11 protection in December 2008 (Bankr.
D. Del. Lead Case No. 08-13432), with a pre-negotiated Chapter 11
plan. The plan, which reduced Constar's debt load by roughly
$175 million, became effective on May 29, 2009. Attorneys at
Bayard P.A., and Wilmer Cutler Pickering Hale and Dorr LLP
represented the Debtor in the case.
Due to operating losses caused by a significant decline in demand
for its products from Pepsi-Cola Advertising and Marketing Inc.
and other customers, Constar and its affiliates returned to
Chapter 11 on January 11, 2011 (Bankr. D. Del. Case No. 11-10109),
with a Chapter 11 plan negotiated with holders of 75% of the
holders of $220 million in senior secured floating-rate notes.
Andrew Goldman, Esq., and Dennis Jenkins, Esq., at Wilmer Cutler
Pickering Hale and Dorr LLP, serve as the Debtors' general
bankruptcy counsel. Jamie Lynne Edmonson, Esq., and Neil B.
Glassman, Esq., at Bayard, P.A., serve as co-counsel to the
Debtors. PricewaterhouseCoopers serves as the Debtors'
independent auditors and accountants. Kurtzman Carson Consultants
LLC serves as the Debtors' claims agent.
Patrick J. Nash Jr., Esq., and Paul Wierbicki, Esq., at Kirkland &
Ellis LLP, serve as counsel to the noteholders that have signed
that plan support agreement.
The Debtors disclosed $418 million in total assets and
$414 million in total debts as of Sept. 30, 2010.
============================================
For a FREE 30-day trial of the TCR, CLICK
Thursday, February 17, 2011
BORDERS GROUP Bankruptcy News, Issue No. 1
BCSI reports on latest events arising in the chapter 11 cases commenced by BORDERS GROUP
FAIRLESS HILLS, Pa. -- Feb. 17, 2011 -- Bankruptcy Creditors' Service, Inc., published Issue No. 1 of BORDERS GROUP BANKRUPTCY NEWS today. The 24-page newsletter contains stories with these headlines:
[00000] HOW TO SUBSCRIBE TO BORDERS GROUP BANKRUPTCY NEWS
[00001] BACKGROUND & DESCRIPTION OF BORDERS GROUP INC.
[00002] COMPANY'S PRESS RELEASE CONCERNING CHAPTER 11 FILING
[00003] COMPANY'S BALANCE SHEET AS OF OCTOBER 30, 2010
[00004] BORDERS GROUP'S CHAPTER 11 DATABASE
[00005] LIST OF DEBTORS' 30 LARGEST UNSECURED CREDITORS
[00006] LIST OF DEBTORS' SECURED CLAIM HOLDERS
[00007] BORDERS GROUP TO CLOSE 200+ STORES UNDER BANKRUPTCY
[00008] DEBTORS' MOTION FOR JOINT ADMINISTRATION OF CASES
[00009] DEBTORS' MOTION TO EXTEND DEADLINE TO FILE SCHEDULES
[00010] AGREE REALTY'S STATEMENT ON BORDERS' BANKRUPTCY FILING
[00011] BOOKSELLERS GROUP COMMENTS ON BORDERS' BANKRUPTCY FILING
A copy of today's newsletter is available FREE OF CHARGE at
BANKRUPT.COM/BORDERS
FAIRLESS HILLS, Pa. -- Feb. 17, 2011 -- Bankruptcy Creditors' Service, Inc., published Issue No. 1 of BORDERS GROUP BANKRUPTCY NEWS today. The 24-page newsletter contains stories with these headlines:
[00000] HOW TO SUBSCRIBE TO BORDERS GROUP BANKRUPTCY NEWS
[00001] BACKGROUND & DESCRIPTION OF BORDERS GROUP INC.
[00002] COMPANY'S PRESS RELEASE CONCERNING CHAPTER 11 FILING
[00003] COMPANY'S BALANCE SHEET AS OF OCTOBER 30, 2010
[00004] BORDERS GROUP'S CHAPTER 11 DATABASE
[00005] LIST OF DEBTORS' 30 LARGEST UNSECURED CREDITORS
[00006] LIST OF DEBTORS' SECURED CLAIM HOLDERS
[00007] BORDERS GROUP TO CLOSE 200+ STORES UNDER BANKRUPTCY
[00008] DEBTORS' MOTION FOR JOINT ADMINISTRATION OF CASES
[00009] DEBTORS' MOTION TO EXTEND DEADLINE TO FILE SCHEDULES
[00010] AGREE REALTY'S STATEMENT ON BORDERS' BANKRUPTCY FILING
[00011] BOOKSELLERS GROUP COMMENTS ON BORDERS' BANKRUPTCY FILING
A copy of today's newsletter is available FREE OF CHARGE at
BANKRUPT.COM/BORDERS
Wednesday, February 16, 2011
BORDERS GROUP: Road to Chapter 11 Filing
Get the first four issues of BORDERS GROUP BANKRUPTCY NEWS for FREE at BANKRUPT.COM/BORDERS
Borders Group, Inc.
101 Phoenix Drive
Ann Arbor, Michigan 48108
Tel No. 734-477-1100
Fax No. 734-477-4538
http://www.borders.com/
Borders Group, Inc., through its subsidiaries, engages in the
operation of book, music and movie superstores, as well as mall-
based bookstores. The Company is noted to be the second largest
traditional book seller in the U.S., second to Barnes & Noble
Inc.
At January 29, 2011, Borders Group operated 642 bookstores under
the Borders, Waldenbooks, Borders Express, and Borders Outlet
names, as well as Borders-branded airport stores, including 639
in the United States and 3 in Puerto Rico. Two of Borders'
flagship stores are located in Manhattan. The Company also
operates a proprietary e-commerce Web site http://www.Borders.com
which was launched in May 2008.
Borders rely on its vendors, including book publishers and music
and video distributors, for goods to maintain its business.
Moreover, about 90% of Borders' superstores feature a cafe under
the "Seattle's Best" tradename.
Founded in 1971, the Company is headquartered in Ann Arbor,
Michigan. As of February 11, 2011, Borders employed a total of
approximately 6,100 full-time employees, approximately 11,400
part-time employees, and approximately 600 contingent employees
throughout the U.S. Borders employees are not subject to any
collective bargaining agreements.
The Company listed assets totaling $1,275,430,500 and debts
totaling $1,293,112,600 as of December 25, 2010.
On February 16, 2011, the Company and seven of its affiliates
sought bankruptcy protection. In its Chapter 11 petition, the
Company said it aims to pursue an operational and financial
restructuring; to restore and revitalize its business as the
second largest chain of bookstores in the U.S.; and to save
thousands of jobs. It also seeks to regain access to capital for
everyday operations and to shed about 200 stores it cannot afford
to keep.
Corporate Structure
Borders Group, Inc. owns 100% of the equity interests in Borders,
Inc. and BGP (UK) Ltd. Borders, Inc. owns 100% of the equity
interests in Borders Properties, Inc., Borders Direct, LLC,
Borders Online, Inc., Borders Online LLC and Borders
International Services Inc.
A chart presenting Borders' corporate structure is available for
free at http://bankrupt.com/misc/Borders_OrgnztnalChrt.pdf
The Company started out as a used books store in Michigan founded
by brothers Tom and Louis Borders in 1971. The Borders brothers
sold the bookstore chain in 1992 to Kmart. Kmart at that time
already owned the Waldenbooks mall bookstore chain. Three years
later, Kmart spun off Borders Group Inc.
Entities who own 10% or more of the equity interests of Borders
Group, Inc., are:
% of Equity
Entity Ownership
------ -----------
Pershing Square Capital Management, L.P. 31.3%
LeBow Gamma Limited Partnership 15.4%
BGI common stock is publicly traded on the New York Stock
Exchange under ticker symbol BGP. As of February 8, 2011,
Borders had 72,042,189 shares of common stock outstanding. The
Company had 2,413 holders of its common stock.
Trading of Borders' shares closed at 23 cents on February 15,
according to data from Yahoo Finance.
Capital Structure
Borders' significant sources of liquidity are funds generated
from operating activities, borrowings under credit agreements,
and credit provided by its vendors.
Borders has an existing restated revolver credit facility of up
to $970.5 million with Bank of America, N.A. and certain other
lenders; and a $90 million term loan agreement with GA Capital
LLC and certain other lenders. Both loan facilities were
executed on March 31, 2010.
The Revolver Facility is divided into an existing tranche
maturing on July 31, 2011, and an extended tranche maturing on
March 31, 2014. The Term Loan Facility is comprised of an $80
million tranche, which will mature on March 31, 2014, and a $10
million tranche.
As of February 16, 2011, about $196 million was outstanding under
the Revolver Facility, while about $48 million is outstanding
under the $80 million Term Loan tranche. No amounts are
outstanding under the $10 million Term Loan tranche.
The Loan Facilities are secured by a first priority security
interest in certain inventory, accounts receivable, cash and
other properties of the borrowers, and a second priority security
interest in other collateral of the borrowers.
Prior to December 2010, Borders relied on unsecured vendor credit
to finance about 44% of its inventory. As of February 16, 2011,
Borders owe about $303 million to vendors for inventory.
ROAD TO BANKRUPTCY
Borders Chief Financial Officer Scott Henry relates that a
variety of external economic and competitive factors have led to
a substantial decline in Borders' profitability and liquidity.
The U.S. book retailing industry has experienced little or no
growth in recent years, Mr. Henry notes. Moreover, he avers,
Web-based retailing has continued to increase in market share as
a distribution method for book, music and movie merchandise; and
the Internet has enabled changes in the formats of many of the
product categories Borders offer. Borders' results of operation,
he adds, are also dependent on discretionary spending by
consumers, which has deteriorated significantly over the last
several years. In effect, the Company reported losses in
operations in the past several quarters.
Amidst this scenario, by December 2010, Borders took several
actions to improve liquidity including discussions with potential
lenders for replacement financing through at least the beginning
of 2012, pursuit of potential asset sales, cost reduction and
sales generating initiatives.
Borders started withholding vendor payments in December 2010, and
sought to restructure vendor obligations in an effort to improve
liquidity. In January 2011, Borders increased the holdback of
vendor payments and began to withhold payments to landlords as
well. With Borders' support and funding, (1) many of the vendors
retained the law firm of Lowenstein Sandler PC as counsel and
Alvarez & Marsal as their financial advisor to negotiate with
Borders; and (ii) a group of major landlords retained the law
firm of Kelley Drye & Warren LLP as counsel and A&M as their
financial advisor to assist with the negotiations.
By January 27, 2011, Borders got a tentative commitment for a
$550 million credit facility from GE Capital. The commitment
required syndication of $175 million of the total commitment and
required the Company to raise an additional $125 million of
junior capital. The Company, however, failed to obtain the
necessary financing on an out-of-court basis and, thus, turned
its attention to sourcing a debtor-in-possession financing.
Financial advisor Jefferies & Company Inc. was commissioned by
Borders to obtain proposals of a debtor-in-possession financing.
After engaging in active discussions, Borders, GE Capital and GA
Capital were able to agree on the terms of a $505 million DIP
Loan, whose terms are noted in a term sheet dated February 14,
2011.
Shortly thereafter, on February 16, Borders and its affiliates
filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court
for the Southern District of New York.
The Company attached to its bankruptcy petition schedules on a
list of its operating premises, its substantial assets,
litigations it is a party to, and the identity of its senior
management. A copy of the Schedules is available for free at:
http://bankrupt.com/misc/Borders_1stDaySchedules.pdf
Simultaneous with its bankruptcy filing, Borders said it will
undertake the elimination of certain of its unprofitable stores.
The Company has begun discussions with experienced liquidators
and has begun a bidding process, which culminated with the
selection of a stalking horse bidder.
Restructuring Goals
Borders believes that the bankruptcy proceedings are the best
avenue to restructure its debts and eliminate burdensome costs.
The Company avers that its post-bankruptcy operational strategy
will focus on five key areas:
(1) continuing the expansion and enhancement of the Borders
Rewards Plus Program,
(2) strengthening the company's position as a purveyor of
content by aggressively growing Borders.com and eBook
market share;
(3) expanding the company's overall retail mix to improve
profitability and offset the digital effect;
(4) aggressively reducing costs across the business; and
(5) making strategic investments in IT to improve customer
experience.
DIP Financing
Tiffany Kary at Bloomberg News notes in a February 17 report that
Judge Arthur Gonzalez has granted Borders interim access to at
least $400 million of the proposed $505 million financing
facility from lenders led by GE Capital. Judge Gonzales,
according to Bloomberg, first demanded that a budget for Borders'
intended use of the loan be filed with the Court.
In court filings, Borders said that it needs the additional
financing to pay current and ongoing operating expenses.
As of press time, the Court has not ruled on Borders' request for
permission to commence closing sales for 200+ of its
underperforming stores, Bloomberg relays.
Post-Bankruptcy Payments & Obligations
Within the 30-day period after their bankruptcy filing, the
Debtors estimate these payments to be paid to their employees,
executives and consultants:
Payments to Employees $20,514,995
Payments to Officers $850,662
Payments to Financial &
Business Consultants $0
The Debtors also estimate these cash receipts and disbursements
for the 30-day period after their bankruptcy filing:
Cash Receipts $230,000,000
Cash Disbursements $138,000,000
Net Cash Gain $92,400,000
Unpaid Obligations $135,500,000
Unpaid Receivables $173,000,000
Winners & Losers in the Borders Bankruptcy
Borders' bankruptcy filing comes a month after the Company
revealed that it was exploring the possibility of a restructuring
process under Chapter 11.
Mae Anderson of The Associated Press relates that entities that
stand to gain from the Borders bankruptcy are Barnes & Noble,
Amazon.com, and Books-A-Million.
AP notes that Credit Suisse analyst Gary Balter said the
announced Borders store closings could tip up Barnes & Noble's
sales by 6%, and if Borders goes out of business entirely, that
can translate to a 26% increase in Barnes & Noble sales.
Consumers who don't head to Barnes & Noble will likely head to
Amazon.com, Forrester Research analyst Sucharita Mulpuru said,
according to AP. Alabama-based Books-A-Million, the third
largest U.S. bookstore chain, might also get its share of the
market as a result of Borders' tumble into Chapter 11.
Among those who stand to lose in the Borders bankruptcy are the
Company's employees, stockholders and publishers, AP points out.
The report relays that 6,000 Borders workers are expected to lose
their jobs while the Company strives to restructure. AP adds
that investor William Ackman and Borders CEO Bennett Lebow, each
with about a 15% stake in the Company, also stand to see their
investments vanish. Publishers already felt the crunch when
Borders ceased vendor payments in December. Earlier, publisher
John Wiley & Sons Inc. disclosed it recorded $9 million in bad
debt because of non-payment by Borders, AP cites. With Borders
set to close 200+ stores, publishers will lose more retail space
to feature their products.
Borders Group, Inc.
101 Phoenix Drive
Ann Arbor, Michigan 48108
Tel No. 734-477-1100
Fax No. 734-477-4538
http://www.borders.com/
Borders Group, Inc., through its subsidiaries, engages in the
operation of book, music and movie superstores, as well as mall-
based bookstores. The Company is noted to be the second largest
traditional book seller in the U.S., second to Barnes & Noble
Inc.
At January 29, 2011, Borders Group operated 642 bookstores under
the Borders, Waldenbooks, Borders Express, and Borders Outlet
names, as well as Borders-branded airport stores, including 639
in the United States and 3 in Puerto Rico. Two of Borders'
flagship stores are located in Manhattan. The Company also
operates a proprietary e-commerce Web site http://www.Borders.com
which was launched in May 2008.
Borders rely on its vendors, including book publishers and music
and video distributors, for goods to maintain its business.
Moreover, about 90% of Borders' superstores feature a cafe under
the "Seattle's Best" tradename.
Founded in 1971, the Company is headquartered in Ann Arbor,
Michigan. As of February 11, 2011, Borders employed a total of
approximately 6,100 full-time employees, approximately 11,400
part-time employees, and approximately 600 contingent employees
throughout the U.S. Borders employees are not subject to any
collective bargaining agreements.
The Company listed assets totaling $1,275,430,500 and debts
totaling $1,293,112,600 as of December 25, 2010.
On February 16, 2011, the Company and seven of its affiliates
sought bankruptcy protection. In its Chapter 11 petition, the
Company said it aims to pursue an operational and financial
restructuring; to restore and revitalize its business as the
second largest chain of bookstores in the U.S.; and to save
thousands of jobs. It also seeks to regain access to capital for
everyday operations and to shed about 200 stores it cannot afford
to keep.
Corporate Structure
Borders Group, Inc. owns 100% of the equity interests in Borders,
Inc. and BGP (UK) Ltd. Borders, Inc. owns 100% of the equity
interests in Borders Properties, Inc., Borders Direct, LLC,
Borders Online, Inc., Borders Online LLC and Borders
International Services Inc.
A chart presenting Borders' corporate structure is available for
free at http://bankrupt.com/misc/Borders_OrgnztnalChrt.pdf
The Company started out as a used books store in Michigan founded
by brothers Tom and Louis Borders in 1971. The Borders brothers
sold the bookstore chain in 1992 to Kmart. Kmart at that time
already owned the Waldenbooks mall bookstore chain. Three years
later, Kmart spun off Borders Group Inc.
Entities who own 10% or more of the equity interests of Borders
Group, Inc., are:
% of Equity
Entity Ownership
------ -----------
Pershing Square Capital Management, L.P. 31.3%
LeBow Gamma Limited Partnership 15.4%
BGI common stock is publicly traded on the New York Stock
Exchange under ticker symbol BGP. As of February 8, 2011,
Borders had 72,042,189 shares of common stock outstanding. The
Company had 2,413 holders of its common stock.
Trading of Borders' shares closed at 23 cents on February 15,
according to data from Yahoo Finance.
Capital Structure
Borders' significant sources of liquidity are funds generated
from operating activities, borrowings under credit agreements,
and credit provided by its vendors.
Borders has an existing restated revolver credit facility of up
to $970.5 million with Bank of America, N.A. and certain other
lenders; and a $90 million term loan agreement with GA Capital
LLC and certain other lenders. Both loan facilities were
executed on March 31, 2010.
The Revolver Facility is divided into an existing tranche
maturing on July 31, 2011, and an extended tranche maturing on
March 31, 2014. The Term Loan Facility is comprised of an $80
million tranche, which will mature on March 31, 2014, and a $10
million tranche.
As of February 16, 2011, about $196 million was outstanding under
the Revolver Facility, while about $48 million is outstanding
under the $80 million Term Loan tranche. No amounts are
outstanding under the $10 million Term Loan tranche.
The Loan Facilities are secured by a first priority security
interest in certain inventory, accounts receivable, cash and
other properties of the borrowers, and a second priority security
interest in other collateral of the borrowers.
Prior to December 2010, Borders relied on unsecured vendor credit
to finance about 44% of its inventory. As of February 16, 2011,
Borders owe about $303 million to vendors for inventory.
ROAD TO BANKRUPTCY
Borders Chief Financial Officer Scott Henry relates that a
variety of external economic and competitive factors have led to
a substantial decline in Borders' profitability and liquidity.
The U.S. book retailing industry has experienced little or no
growth in recent years, Mr. Henry notes. Moreover, he avers,
Web-based retailing has continued to increase in market share as
a distribution method for book, music and movie merchandise; and
the Internet has enabled changes in the formats of many of the
product categories Borders offer. Borders' results of operation,
he adds, are also dependent on discretionary spending by
consumers, which has deteriorated significantly over the last
several years. In effect, the Company reported losses in
operations in the past several quarters.
Amidst this scenario, by December 2010, Borders took several
actions to improve liquidity including discussions with potential
lenders for replacement financing through at least the beginning
of 2012, pursuit of potential asset sales, cost reduction and
sales generating initiatives.
Borders started withholding vendor payments in December 2010, and
sought to restructure vendor obligations in an effort to improve
liquidity. In January 2011, Borders increased the holdback of
vendor payments and began to withhold payments to landlords as
well. With Borders' support and funding, (1) many of the vendors
retained the law firm of Lowenstein Sandler PC as counsel and
Alvarez & Marsal as their financial advisor to negotiate with
Borders; and (ii) a group of major landlords retained the law
firm of Kelley Drye & Warren LLP as counsel and A&M as their
financial advisor to assist with the negotiations.
By January 27, 2011, Borders got a tentative commitment for a
$550 million credit facility from GE Capital. The commitment
required syndication of $175 million of the total commitment and
required the Company to raise an additional $125 million of
junior capital. The Company, however, failed to obtain the
necessary financing on an out-of-court basis and, thus, turned
its attention to sourcing a debtor-in-possession financing.
Financial advisor Jefferies & Company Inc. was commissioned by
Borders to obtain proposals of a debtor-in-possession financing.
After engaging in active discussions, Borders, GE Capital and GA
Capital were able to agree on the terms of a $505 million DIP
Loan, whose terms are noted in a term sheet dated February 14,
2011.
Shortly thereafter, on February 16, Borders and its affiliates
filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court
for the Southern District of New York.
The Company attached to its bankruptcy petition schedules on a
list of its operating premises, its substantial assets,
litigations it is a party to, and the identity of its senior
management. A copy of the Schedules is available for free at:
http://bankrupt.com/misc/Borders_1stDaySchedules.pdf
Simultaneous with its bankruptcy filing, Borders said it will
undertake the elimination of certain of its unprofitable stores.
The Company has begun discussions with experienced liquidators
and has begun a bidding process, which culminated with the
selection of a stalking horse bidder.
Restructuring Goals
Borders believes that the bankruptcy proceedings are the best
avenue to restructure its debts and eliminate burdensome costs.
The Company avers that its post-bankruptcy operational strategy
will focus on five key areas:
(1) continuing the expansion and enhancement of the Borders
Rewards Plus Program,
(2) strengthening the company's position as a purveyor of
content by aggressively growing Borders.com and eBook
market share;
(3) expanding the company's overall retail mix to improve
profitability and offset the digital effect;
(4) aggressively reducing costs across the business; and
(5) making strategic investments in IT to improve customer
experience.
DIP Financing
Tiffany Kary at Bloomberg News notes in a February 17 report that
Judge Arthur Gonzalez has granted Borders interim access to at
least $400 million of the proposed $505 million financing
facility from lenders led by GE Capital. Judge Gonzales,
according to Bloomberg, first demanded that a budget for Borders'
intended use of the loan be filed with the Court.
In court filings, Borders said that it needs the additional
financing to pay current and ongoing operating expenses.
As of press time, the Court has not ruled on Borders' request for
permission to commence closing sales for 200+ of its
underperforming stores, Bloomberg relays.
Post-Bankruptcy Payments & Obligations
Within the 30-day period after their bankruptcy filing, the
Debtors estimate these payments to be paid to their employees,
executives and consultants:
Payments to Employees $20,514,995
Payments to Officers $850,662
Payments to Financial &
Business Consultants $0
The Debtors also estimate these cash receipts and disbursements
for the 30-day period after their bankruptcy filing:
Cash Receipts $230,000,000
Cash Disbursements $138,000,000
Net Cash Gain $92,400,000
Unpaid Obligations $135,500,000
Unpaid Receivables $173,000,000
Winners & Losers in the Borders Bankruptcy
Borders' bankruptcy filing comes a month after the Company
revealed that it was exploring the possibility of a restructuring
process under Chapter 11.
Mae Anderson of The Associated Press relates that entities that
stand to gain from the Borders bankruptcy are Barnes & Noble,
Amazon.com, and Books-A-Million.
AP notes that Credit Suisse analyst Gary Balter said the
announced Borders store closings could tip up Barnes & Noble's
sales by 6%, and if Borders goes out of business entirely, that
can translate to a 26% increase in Barnes & Noble sales.
Consumers who don't head to Barnes & Noble will likely head to
Amazon.com, Forrester Research analyst Sucharita Mulpuru said,
according to AP. Alabama-based Books-A-Million, the third
largest U.S. bookstore chain, might also get its share of the
market as a result of Borders' tumble into Chapter 11.
Among those who stand to lose in the Borders bankruptcy are the
Company's employees, stockholders and publishers, AP points out.
The report relays that 6,000 Borders workers are expected to lose
their jobs while the Company strives to restructure. AP adds
that investor William Ackman and Borders CEO Bennett Lebow, each
with about a 15% stake in the Company, also stand to see their
investments vanish. Publishers already felt the crunch when
Borders ceased vendor payments in December. Earlier, publisher
John Wiley & Sons Inc. disclosed it recorded $9 million in bad
debt because of non-payment by Borders, AP cites. With Borders
set to close 200+ stores, publishers will lose more retail space
to feature their products.
BORDERS GROUP: Files for Chapter 11 in Manhattan
BORDERS GROUP BANKRUPTCY NEWS reports that Borders Group Inc. and
its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y.
Case No. Lead Case No. 11-10614) in Manhattan on Feb. 16, 2011.
"It has become increasingly clear that in light of the environment
of curtailed customer spending, our ongoing discussions with
publishers and other vendor related parties, and the company's
lack of liquidity, Borders Group does not have the capital
resources it needs to be a viable competitor and which are
essential for it to move forward with its business strategy to
reposition itself successfully for the long term," Mike Edwards,
Borders Group President, said in a press release announcing the
Chapter 11 filing.
Borders said that it has received commitments for $505 million in
debtor-in-possession financing led by GE Capital, Restructuring
Finance.
Borders said that it is serving customers in the normal course,
including honoring its Borders Rewards program, gift cards and
other customer programs.
Borders, however, said it has identified certain underperforming
stores -- equivalent to approximately 30% of the company's
national store network -- that are expected to close in the next
several weeks. A list of the 200 closing stores is available at
no charge at http://bankrupt.com/misc/Borders_ClosingStores.pdf
Borders emphasized that the closings were a reflection of economic
conditions, cost structures and viability of locations, among
other factors, and not on the dedication and productivity of the
workforce in these stores.
Financials
For the fiscal year ended Jan. 29, 2011, Borders recorded net
sales of approximately $2.3 billion. As of Dec. 25, 2010, the
Debtors had incurred net year-to-date losses of approximately
$168.2 million.
Borders had total assets of $1.28 billion and total debts of
$1.29 billion as of Dec. 25, 2010.
A total of $196.05 million is outstanding under a prepetition
revolver from lenders, led by Bank of America, N.A., as
administrative agent. and $48.6 million under a prepetition term
loan from lenders led by G.A. Capital, as admin. agent. The
prepetition revolver and term loan are secured by substantially
all of Borders' assets, excluding real estate holdings.
Borders Group submitted a consolidated list of 30 largest
unsecured creditors. The list is available for no charge at:
http://bankrupt.com/misc/Borders_ListofCreditors.pdf
Pershing Square Capital Management, L.P., LeBow Gamma Limited
Partnership, UBS AG, and Bennett S. LeBow each owns or controls
with the power to vote 5% or more of the voting securities of the
Debtor. As of Feb. 8, a total of 72,042,189 shares were
outstanding with 2,413 holders of these shares.
Store Closing Sales
Borders Group has submitted to the Bankruptcy Court an emergency
motion for approval to sell merchandise and owned furniture,
fixtures and equipment located at approximately 200 of their
stores and, at Borders' option, up to 75 of 136 potential other
stores, through store closing sales.
According to Holly Felder Etlin, managing director of AP Services
LLC, the 200 underperforming stores identified by Borders are
operating at a significant loss and represent a drain on Borders'
liquidity. Each week the 200 stores remain open causes Borders to
suffer approximately $2 million of losses. Border has ceased
supplying the closing stores.
Before filing for bankruptcy, Borders Group, on Feb. 3, 2011,
through their then advisors at FTI Consulting, Inc., began
contacting the nation's largest liquidation firms to gauge
interest in a process to solicit bids for store closing sales.
Two groups -- (1) Great American Group LLC and Gordon Brothers
Retail Partners LLC and (2) Hilco Merchant Resources, LLC, Tiger
Capital, and SB Capital Group -- participated in bidding for a
stalking horse position. Following a 3-day bidding, on Feb. 13,
the Hilco Group emerged as the party with the higher and better
bid. Compared to the GB Group's bid, the Hilco Group's bid
provides a guaranty percentage that is 2% higher, which equates to
almost $4 million more in proceeds for the Debtors.
The Hilco Group's bid would pay the Debtors (i) a guaranteed
amount of 73% of the cost value of all merchandise located at the
Closing Stores and which Borders estimate will bring at least $131
million and as much as $148 million into the estates, plus (ii) a
50% share of any proceeds received during the SCSs after a 5% fee
and recovery of expenses.
Borders Group is seeking the Bankruptcy Court's approval to
conduct an auction to select a liquidator where the Hilco Group is
the stalking horse bidder. Hilco Group will receive a $1,000,000
break-up fee if it is outbid at the bankruptcy auction.
Professionals Involved in Case
The professionals tapped by the Debtors for the restructuring are:
Debtors'
Legal Counsel: David M. Friedman, Esq.
David S. Rosner. Esq
Andrew K. Glenn, Esq.
Jeffrey R. Gleit, Esq.
KASOWITZ, BENSON, TORRES & FRIEDMAN LLP
1633 Broadway
New York, New York 10019
Telephone: (212) 506-1700
Facsimile: (212) 506-1800
E-mail: DFriedman@kasowitz.com
DRosner@kasowitz.com
AGlenn@kasowitz.com
JGleit@kasowitz.com
Debtors'
Financial
Advisors: JEFFERIES & COMPANY'S INC.
Debtors'
Lease and
Real Estate
Services
Provider: DJM PROPERTY MANAGEMENT
Debtors'
Interim
Management and
Restructuring
Services
Provider: AP SERVICES LLC
The Debtors'
Claims and
Notice Agent: THE GARDEN CITY GROUP, INC.
P.O. Box 9690
Dublin, Ohio 43017-4990
Professionals identified by Borders as notice parties are:
Counsel for
the DIP Agents: MORGAN, LEWIS & BOCKIUS LLP
Wendy Walker, Esq.
Sandra Vrejan, Esq.
Counsel for GA Capital,
Agent Under the
Prepetition term
Loan: RIEMER & BRAUNSTEIN LLP
Donald E. Rothman, Esq.
COUNSEL FOR GA CAPITAL LLC
Attorneys for
Group of
Major
Landlords: James S. Carr, Esq.
Robert L. LeHane, Esq.
Benjamin D. Feder, Esq.
KELLEY DRYE & WARREN LLP
101 Park Avenue
New York, New York 10178
Tel: (212) 808-7800
Fax: (212) 808-7897
Attorneys for
Publishers: Kenneth A. Rosen, Esq.
Bruce D. Buechler, Esq.
Bruce S. Nathan, Esq.
Paul Kizel, Esq.
LOWENSTEIN SANDLER PC
1251 Avenue of the Americas
New York, New York 10020
Tel: (212) 262-6700
Fax: (212) 262-7402
Financial
Advisor
to Publishers: ALVAREZ & MARSAL
Attorneys for
General Growth
Properties Inc.: Brad Eric Scheler, Esq.
FRIED, FRANK, HARRIS, SHRIVER & JACOBSON LLP
Attorneys for
Bank of
America, N.A.,
Agent for
Prepetition
Revolving
Lenders: Julia Frost-Davies, Esq.
Andrew Gallo, Esq.
BINGHAM MCCUTCHEN LLP
About Borders Group
Borders Group is a leading operator of book, music and movie
superstores and mall-based bookstores. At Jan. 29, 2011, the
Debtors operated 642 stores, under the Borders, Waldenbooks,
Borders Express and Borders Outlet names, as well as Borders-
branded airport stores in the United States, of which 639 stores
are located in the United States and 3 in Puerto Rico. Two of
Borders' flagship stores (along with other less prominent stores)
are located in Manhattan. In addition, the Debtors operate a
proprietary e-commerce web site, http://www.Borders.com/, launched
in May 2008, which includes both in-store and online e-commerce
components.
As of Feb. 11, 2011, Borders employed a total of 6,100 full-time
employees, 11,400 part-time employees, and approximately 600
contingent employees (who are required to work one shift per
month, and usually do so at special events), all of whom are
located in the United States and Puerto Rico. Borders' employees
are not subject to any collective bargaining agreements.
=================================================================
BORDERS GROUP BANKRUPTCY NEWS covers the bookstore chain's journey
into Chapter 11 as the Ann Arbor-based bookseller attempts to
restructure its operations. From the first FREE four issues of
BORDERS GROUP BANKRUPTCY NEWS, a $180 value being given away for
free.
To receive BORDERS GROUP BANKRUPTCY NEWS, please complete the form
below and return it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
572 Fernwood Lane
Fairless Hills, PA 19030
Telephone (215) 945-7000
Fax (215) 945-7001
E-mail: peter@bankrupt.com
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an
ad hoc basis as significant activity occurs (generally every 10
to 20 days) in the Debtor's cases. The subscription rate is
US$45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
and pay for their own subscriptions. Subscriptions may be
canceled at any time without further obligation.
We have published similar newsletters tracking
billion-dollar insolvency proceedings since 1990, starting
with Federated Department Stores. Currently, we provide
similar coverage about most billion-dollar corporate
restrucutring proceedings.
We also co-publish the TROUBLED COMPANY REPORTER, tracking
more than 3,000 experiencing financial distress or
restructuring their balance sheets in a judicial proceeding.
You can request a free 30-day trial subscription to the
TROUBLED COMPANY REPORTER at http://bankrupt.com/freetrial/.
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(Distribution to multiple professionals at the
same firm is provided at no additional cost.)
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an ad
hoc basis as significant activity occurs (generally every 10 to 20
days) in the Debtors' cases. The subscription rate is US$45 per
issue. Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y.
Case No. Lead Case No. 11-10614) in Manhattan on Feb. 16, 2011.
"It has become increasingly clear that in light of the environment
of curtailed customer spending, our ongoing discussions with
publishers and other vendor related parties, and the company's
lack of liquidity, Borders Group does not have the capital
resources it needs to be a viable competitor and which are
essential for it to move forward with its business strategy to
reposition itself successfully for the long term," Mike Edwards,
Borders Group President, said in a press release announcing the
Chapter 11 filing.
Borders said that it has received commitments for $505 million in
debtor-in-possession financing led by GE Capital, Restructuring
Finance.
Borders said that it is serving customers in the normal course,
including honoring its Borders Rewards program, gift cards and
other customer programs.
Borders, however, said it has identified certain underperforming
stores -- equivalent to approximately 30% of the company's
national store network -- that are expected to close in the next
several weeks. A list of the 200 closing stores is available at
no charge at http://bankrupt.com/misc/Borders_ClosingStores.pdf
Borders emphasized that the closings were a reflection of economic
conditions, cost structures and viability of locations, among
other factors, and not on the dedication and productivity of the
workforce in these stores.
Financials
For the fiscal year ended Jan. 29, 2011, Borders recorded net
sales of approximately $2.3 billion. As of Dec. 25, 2010, the
Debtors had incurred net year-to-date losses of approximately
$168.2 million.
Borders had total assets of $1.28 billion and total debts of
$1.29 billion as of Dec. 25, 2010.
A total of $196.05 million is outstanding under a prepetition
revolver from lenders, led by Bank of America, N.A., as
administrative agent. and $48.6 million under a prepetition term
loan from lenders led by G.A. Capital, as admin. agent. The
prepetition revolver and term loan are secured by substantially
all of Borders' assets, excluding real estate holdings.
Borders Group submitted a consolidated list of 30 largest
unsecured creditors. The list is available for no charge at:
http://bankrupt.com/misc/Borders_ListofCreditors.pdf
Pershing Square Capital Management, L.P., LeBow Gamma Limited
Partnership, UBS AG, and Bennett S. LeBow each owns or controls
with the power to vote 5% or more of the voting securities of the
Debtor. As of Feb. 8, a total of 72,042,189 shares were
outstanding with 2,413 holders of these shares.
Store Closing Sales
Borders Group has submitted to the Bankruptcy Court an emergency
motion for approval to sell merchandise and owned furniture,
fixtures and equipment located at approximately 200 of their
stores and, at Borders' option, up to 75 of 136 potential other
stores, through store closing sales.
According to Holly Felder Etlin, managing director of AP Services
LLC, the 200 underperforming stores identified by Borders are
operating at a significant loss and represent a drain on Borders'
liquidity. Each week the 200 stores remain open causes Borders to
suffer approximately $2 million of losses. Border has ceased
supplying the closing stores.
Before filing for bankruptcy, Borders Group, on Feb. 3, 2011,
through their then advisors at FTI Consulting, Inc., began
contacting the nation's largest liquidation firms to gauge
interest in a process to solicit bids for store closing sales.
Two groups -- (1) Great American Group LLC and Gordon Brothers
Retail Partners LLC and (2) Hilco Merchant Resources, LLC, Tiger
Capital, and SB Capital Group -- participated in bidding for a
stalking horse position. Following a 3-day bidding, on Feb. 13,
the Hilco Group emerged as the party with the higher and better
bid. Compared to the GB Group's bid, the Hilco Group's bid
provides a guaranty percentage that is 2% higher, which equates to
almost $4 million more in proceeds for the Debtors.
The Hilco Group's bid would pay the Debtors (i) a guaranteed
amount of 73% of the cost value of all merchandise located at the
Closing Stores and which Borders estimate will bring at least $131
million and as much as $148 million into the estates, plus (ii) a
50% share of any proceeds received during the SCSs after a 5% fee
and recovery of expenses.
Borders Group is seeking the Bankruptcy Court's approval to
conduct an auction to select a liquidator where the Hilco Group is
the stalking horse bidder. Hilco Group will receive a $1,000,000
break-up fee if it is outbid at the bankruptcy auction.
Professionals Involved in Case
The professionals tapped by the Debtors for the restructuring are:
Debtors'
Legal Counsel: David M. Friedman, Esq.
David S. Rosner. Esq
Andrew K. Glenn, Esq.
Jeffrey R. Gleit, Esq.
KASOWITZ, BENSON, TORRES & FRIEDMAN LLP
1633 Broadway
New York, New York 10019
Telephone: (212) 506-1700
Facsimile: (212) 506-1800
E-mail: DFriedman@kasowitz.com
DRosner@kasowitz.com
AGlenn@kasowitz.com
JGleit@kasowitz.com
Debtors'
Financial
Advisors: JEFFERIES & COMPANY'S INC.
Debtors'
Lease and
Real Estate
Services
Provider: DJM PROPERTY MANAGEMENT
Debtors'
Interim
Management and
Restructuring
Services
Provider: AP SERVICES LLC
The Debtors'
Claims and
Notice Agent: THE GARDEN CITY GROUP, INC.
P.O. Box 9690
Dublin, Ohio 43017-4990
Professionals identified by Borders as notice parties are:
Counsel for
the DIP Agents: MORGAN, LEWIS & BOCKIUS LLP
Wendy Walker, Esq.
Sandra Vrejan, Esq.
Counsel for GA Capital,
Agent Under the
Prepetition term
Loan: RIEMER & BRAUNSTEIN LLP
Donald E. Rothman, Esq.
COUNSEL FOR GA CAPITAL LLC
Attorneys for
Group of
Major
Landlords: James S. Carr, Esq.
Robert L. LeHane, Esq.
Benjamin D. Feder, Esq.
KELLEY DRYE & WARREN LLP
101 Park Avenue
New York, New York 10178
Tel: (212) 808-7800
Fax: (212) 808-7897
Attorneys for
Publishers: Kenneth A. Rosen, Esq.
Bruce D. Buechler, Esq.
Bruce S. Nathan, Esq.
Paul Kizel, Esq.
LOWENSTEIN SANDLER PC
1251 Avenue of the Americas
New York, New York 10020
Tel: (212) 262-6700
Fax: (212) 262-7402
Financial
Advisor
to Publishers: ALVAREZ & MARSAL
Attorneys for
General Growth
Properties Inc.: Brad Eric Scheler, Esq.
FRIED, FRANK, HARRIS, SHRIVER & JACOBSON LLP
Attorneys for
Bank of
America, N.A.,
Agent for
Prepetition
Revolving
Lenders: Julia Frost-Davies, Esq.
Andrew Gallo, Esq.
BINGHAM MCCUTCHEN LLP
About Borders Group
Borders Group is a leading operator of book, music and movie
superstores and mall-based bookstores. At Jan. 29, 2011, the
Debtors operated 642 stores, under the Borders, Waldenbooks,
Borders Express and Borders Outlet names, as well as Borders-
branded airport stores in the United States, of which 639 stores
are located in the United States and 3 in Puerto Rico. Two of
Borders' flagship stores (along with other less prominent stores)
are located in Manhattan. In addition, the Debtors operate a
proprietary e-commerce web site, http://www.Borders.com/, launched
in May 2008, which includes both in-store and online e-commerce
components.
As of Feb. 11, 2011, Borders employed a total of 6,100 full-time
employees, 11,400 part-time employees, and approximately 600
contingent employees (who are required to work one shift per
month, and usually do so at special events), all of whom are
located in the United States and Puerto Rico. Borders' employees
are not subject to any collective bargaining agreements.
=================================================================
BORDERS GROUP BANKRUPTCY NEWS covers the bookstore chain's journey
into Chapter 11 as the Ann Arbor-based bookseller attempts to
restructure its operations. From the first FREE four issues of
BORDERS GROUP BANKRUPTCY NEWS, a $180 value being given away for
free.
To receive BORDERS GROUP BANKRUPTCY NEWS, please complete the form
below and return it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
572 Fernwood Lane
Fairless Hills, PA 19030
Telephone (215) 945-7000
Fax (215) 945-7001
E-mail: peter@bankrupt.com
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an
ad hoc basis as significant activity occurs (generally every 10
to 20 days) in the Debtor's cases. The subscription rate is
US$45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
and pay for their own subscriptions. Subscriptions may be
canceled at any time without further obligation.
We have published similar newsletters tracking
billion-dollar insolvency proceedings since 1990, starting
with Federated Department Stores. Currently, we provide
similar coverage about most billion-dollar corporate
restrucutring proceedings.
We also co-publish the TROUBLED COMPANY REPORTER, tracking
more than 3,000 experiencing financial distress or
restructuring their balance sheets in a judicial proceeding.
You can request a free 30-day trial subscription to the
TROUBLED COMPANY REPORTER at http://bankrupt.com/freetrial/.
=================================================================
[ ] YES! Please enter my personal subscription to
BORDERS GROUP BANKRUPTCY NEWS at US$45 per
issue until I tell you to cancel my subscription.
Name:
----------------------------------------------
Firm:
----------------------------------------------
Address:
----------------------------------------------
----------------------------------------------
Phone:
----------------------------------------------
Fax:
----------------------------------------------
E-Mail:
----------------------------------------------
(Distribution to multiple professionals at the
same firm is provided at no additional cost.)
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an ad
hoc basis as significant activity occurs (generally every 10 to 20
days) in the Debtors' cases. The subscription rate is US$45 per
issue. Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
BORDERS GROUP: FAQs for Investors About Chapter 11
Borders Group Releases FAQs for Investors about Borders' Reorganization:
What value will Borders' common stock have in the future? Is it now worthless?
That will be determined under a Plan of reorganization that is approved by the Court. At this time it is premature to speculate on the specifics of Borders capital structure under an approved Plan of Reorganization.
How can I buy or sell shares in Borders?
Borders common stock ceased trading on the New York Stock Exchange as of the close of the Market on February 15, 2011. Market makers not affiliated with Borders may continue limited trading on the Over-the-Counter Bulletin Board (OTCBB) and/or the Pink Sheets even while Borders is involved in the Chapter 11 proceeding. Borders will not be involved in continuing or supporting trading on the OTCBB or the Pink Sheets. You should contact your broker for further information.
Will Borders continue to issue quarterly financial results? Hold quarterly investor conference calls?
Borders expects to begin submitting monthly operating reports to the Bankruptcy Court and also plans to file copies of these reports with the Securities and Exchange Commission and post the reports on the Investor Relations section of Borders.com. The company currently does not plan to continue to file quarterly and annual reports with the Securities and Exchange Commission. It is unlikely that we will continue to hold quarterly conference calls during the reorganization proceedings.
Is a shareholder entitled to file a claim with the court for the value paid for shares?
No.
Who at Borders can shareholders speak with regarding the future of their investment and whether to hold or sell?
Shareholders should consult with their own professional investment advisor to assess their personal investment situation.
Where can investors go for more information?
Key court filings and other information related to Borders Chapter 11 proceedings will be available at www.bordersreorganization.com. You may also send an inquiry by e-mail to gtomasze@bordersgroupinc.com or mdavis4@bordersgroupinc.com.
=================================================================
BORDERS GROUP BANKRUPTCY NEWS covers the bookstore chain's journey
into Chapter 11 as the Ann Arbor-based bookseller attempts to
restructure its operations. From the first FREE four issues of BORDERS GROUP BANKRUPTCY NEWS, a $180 value being given away for free.
To receive BORDERS GROUP BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
572 Fernwood Lane
Fairless Hills, PA 19030
Telephone (215) 945-7000
Fax (215) 945-7001
E-mail: peter@bankrupt.com
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an
ad hoc basis as significant activity occurs (generally every 10
to 20 days) in the Debtor's cases. The subscription rate is
US$45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
and pay for their own subscriptions. Subscriptions may be
canceled at any time without further obligation.
We have published similar newsletters tracking
billion-dollar insolvency proceedings since 1990, starting
with Federated Department Stores. Currently, we provide
similar coverage about most billion-dollar corporate
restrucutring proceedings.
We also co-publish the TROUBLED COMPANY REPORTER, tracking
more than 3,000 experiencing financial distress or
restructuring their balance sheets in a judicial proceeding.
You can request a free 30-day trial subscription to the
TROUBLED COMPANY REPORTER at http://bankrupt.com/freetrial/.
=================================================================
[ ] YES! Please enter my personal subscription to
BORDERS GROUP BANKRUPTCY NEWS at US$45 per
issue until I tell you to cancel my subscription.
Name:
----------------------------------------------
Firm:
----------------------------------------------
Address:
----------------------------------------------
----------------------------------------------
Phone:
----------------------------------------------
Fax:
----------------------------------------------
E-Mail:
----------------------------------------------
(Distribution to multiple professionals at the
same firm is provided at no additional cost.)
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an ad
hoc basis as significant activity occurs (generally every 10 to 20
days) in the Debtors' cases. The subscription rate is US$45 per
issue. Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
What value will Borders' common stock have in the future? Is it now worthless?
That will be determined under a Plan of reorganization that is approved by the Court. At this time it is premature to speculate on the specifics of Borders capital structure under an approved Plan of Reorganization.
How can I buy or sell shares in Borders?
Borders common stock ceased trading on the New York Stock Exchange as of the close of the Market on February 15, 2011. Market makers not affiliated with Borders may continue limited trading on the Over-the-Counter Bulletin Board (OTCBB) and/or the Pink Sheets even while Borders is involved in the Chapter 11 proceeding. Borders will not be involved in continuing or supporting trading on the OTCBB or the Pink Sheets. You should contact your broker for further information.
Will Borders continue to issue quarterly financial results? Hold quarterly investor conference calls?
Borders expects to begin submitting monthly operating reports to the Bankruptcy Court and also plans to file copies of these reports with the Securities and Exchange Commission and post the reports on the Investor Relations section of Borders.com. The company currently does not plan to continue to file quarterly and annual reports with the Securities and Exchange Commission. It is unlikely that we will continue to hold quarterly conference calls during the reorganization proceedings.
Is a shareholder entitled to file a claim with the court for the value paid for shares?
No.
Who at Borders can shareholders speak with regarding the future of their investment and whether to hold or sell?
Shareholders should consult with their own professional investment advisor to assess their personal investment situation.
Where can investors go for more information?
Key court filings and other information related to Borders Chapter 11 proceedings will be available at www.bordersreorganization.com. You may also send an inquiry by e-mail to gtomasze@bordersgroupinc.com or mdavis4@bordersgroupinc.com.
=================================================================
BORDERS GROUP BANKRUPTCY NEWS covers the bookstore chain's journey
into Chapter 11 as the Ann Arbor-based bookseller attempts to
restructure its operations. From the first FREE four issues of BORDERS GROUP BANKRUPTCY NEWS, a $180 value being given away for free.
To receive BORDERS GROUP BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
572 Fernwood Lane
Fairless Hills, PA 19030
Telephone (215) 945-7000
Fax (215) 945-7001
E-mail: peter@bankrupt.com
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an
ad hoc basis as significant activity occurs (generally every 10
to 20 days) in the Debtor's cases. The subscription rate is
US$45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
and pay for their own subscriptions. Subscriptions may be
canceled at any time without further obligation.
We have published similar newsletters tracking
billion-dollar insolvency proceedings since 1990, starting
with Federated Department Stores. Currently, we provide
similar coverage about most billion-dollar corporate
restrucutring proceedings.
We also co-publish the TROUBLED COMPANY REPORTER, tracking
more than 3,000 experiencing financial distress or
restructuring their balance sheets in a judicial proceeding.
You can request a free 30-day trial subscription to the
TROUBLED COMPANY REPORTER at http://bankrupt.com/freetrial/.
=================================================================
[ ] YES! Please enter my personal subscription to
BORDERS GROUP BANKRUPTCY NEWS at US$45 per
issue until I tell you to cancel my subscription.
Name:
----------------------------------------------
Firm:
----------------------------------------------
Address:
----------------------------------------------
----------------------------------------------
Phone:
----------------------------------------------
Fax:
----------------------------------------------
E-Mail:
----------------------------------------------
(Distribution to multiple professionals at the
same firm is provided at no additional cost.)
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an ad
hoc basis as significant activity occurs (generally every 10 to 20
days) in the Debtors' cases. The subscription rate is US$45 per
issue. Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
BANKRUPT BORDERS CEO's Letter to Customers
BORDERS CEO's Letter to Customers:
February 16, 2011
Dear Valued Customers:
For generations, Borders stores have been beacons of enlightenment and education, where readers young and old can explore their passions and find that special book that speaks to them personally. As Borders moves forward, our commitment to you is to be a best-in-class book seller — whether in our stores or on
Borders.com — where you can purchase books and other related products that stimulate, and in turn, satisfy your reading interests.
However, in light of the ongoing impact of the difficult economy of the past few years and the rapidly changing retailing environment for books and related products, it is essential that Borders restructure itself so it can be viable and reposition its business to be successful over the long term. We determined that the best path for Borders to have the ability to achieve this reorganization is through the Chapter 11 process, which Borders commenced February 16. Among our goals under this process are: putting in place a sound financial structure, enhancing Borders’ technology to better benefit our customers, continuing to make
available a highly attractive Borders Rewards program, and introducing new and exciting products related
to our book offerings — all while providing you great customer service .
Throughout this process, we want you to know that:
* Borders stores are open for business. Borders pioneered the in-store experience, providing customers with a vast assortment of books in a warm and relaxing environment — and we intend
to build on this. Our stores will continue to be community gathering places where families can gather to enjoy enriching events including author readings and signings, book clubs as well as kids’ storytime and parties.
* Borders.com is operating as usual. We are fulfilling online orders as customers choose from
among millions of books, music, movies as well as other entertainment items.
* Our Borders Rewards programs, including Borders Rewards Plus, remain in effect. Customers can continue to earn and redeem their Rewards in stores and on Borders.com and they’ll also continue receiving coupons. As always, we are honoring gift cards, which can be redeemed in stores and online at Borders.com.
* Borders will continue to maintain its strong national presence. Our nationwide network of stores is foundational to the Borders brand. Borders, however, will be closing underperforming
stores within our network over the next several weeks. Should your local store be affected, please visit Borders.com to find another Borders store near you, or to purchase from our vast selection of
books and other merchandise on-line.
We are committed to Borders being the destination of choice for our customers across the country for years to come. Thank you for your support and continued loyalty.
Sincerely,
Mike Edwards
President and CEO, Borders, Inc.
=================================================================
BORDERS GROUP BANKRUPTCY NEWS covers the bookstore chain's journey
into Chapter 11 as the Ann Arbor-based bookseller attempts to
restructure its operations. From the first FREE four issues of BORDERS GROUP BANKRUPTCY NEWS, a $180 value being given away for free.
To receive BORDERS GROUP BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
572 Fernwood Lane
Fairless Hills, PA 19030
Telephone (215) 945-7000
Fax (215) 945-7001
E-mail: peter@bankrupt.com
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an
ad hoc basis as significant activity occurs (generally every 10
to 20 days) in the Debtor's cases. The subscription rate is
US$45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
and pay for their own subscriptions. Subscriptions may be
canceled at any time without further obligation.
We have published similar newsletters tracking
billion-dollar insolvency proceedings since 1990, starting
with Federated Department Stores. Currently, we provide
similar coverage about most billion-dollar corporate
restrucutring proceedings.
We also co-publish the TROUBLED COMPANY REPORTER, tracking
more than 3,000 experiencing financial distress or
restructuring their balance sheets in a judicial proceeding.
You can request a free 30-day trial subscription to the
TROUBLED COMPANY REPORTER at http://bankrupt.com/freetrial/.
=================================================================
[ ] YES! Please enter my personal subscription to
BORDERS GROUP BANKRUPTCY NEWS at US$45 per
issue until I tell you to cancel my subscription.
Name:
----------------------------------------------
Firm:
----------------------------------------------
Address:
----------------------------------------------
----------------------------------------------
Phone:
----------------------------------------------
Fax:
----------------------------------------------
E-Mail:
----------------------------------------------
(Distribution to multiple professionals at the
same firm is provided at no additional cost.)
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an ad
hoc basis as significant activity occurs (generally every 10 to 20
days) in the Debtors' cases. The subscription rate is US$45 per
issue. Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
February 16, 2011
Dear Valued Customers:
For generations, Borders stores have been beacons of enlightenment and education, where readers young and old can explore their passions and find that special book that speaks to them personally. As Borders moves forward, our commitment to you is to be a best-in-class book seller — whether in our stores or on
Borders.com — where you can purchase books and other related products that stimulate, and in turn, satisfy your reading interests.
However, in light of the ongoing impact of the difficult economy of the past few years and the rapidly changing retailing environment for books and related products, it is essential that Borders restructure itself so it can be viable and reposition its business to be successful over the long term. We determined that the best path for Borders to have the ability to achieve this reorganization is through the Chapter 11 process, which Borders commenced February 16. Among our goals under this process are: putting in place a sound financial structure, enhancing Borders’ technology to better benefit our customers, continuing to make
available a highly attractive Borders Rewards program, and introducing new and exciting products related
to our book offerings — all while providing you great customer service .
Throughout this process, we want you to know that:
* Borders stores are open for business. Borders pioneered the in-store experience, providing customers with a vast assortment of books in a warm and relaxing environment — and we intend
to build on this. Our stores will continue to be community gathering places where families can gather to enjoy enriching events including author readings and signings, book clubs as well as kids’ storytime and parties.
* Borders.com is operating as usual. We are fulfilling online orders as customers choose from
among millions of books, music, movies as well as other entertainment items.
* Our Borders Rewards programs, including Borders Rewards Plus, remain in effect. Customers can continue to earn and redeem their Rewards in stores and on Borders.com and they’ll also continue receiving coupons. As always, we are honoring gift cards, which can be redeemed in stores and online at Borders.com.
* Borders will continue to maintain its strong national presence. Our nationwide network of stores is foundational to the Borders brand. Borders, however, will be closing underperforming
stores within our network over the next several weeks. Should your local store be affected, please visit Borders.com to find another Borders store near you, or to purchase from our vast selection of
books and other merchandise on-line.
We are committed to Borders being the destination of choice for our customers across the country for years to come. Thank you for your support and continued loyalty.
Sincerely,
Mike Edwards
President and CEO, Borders, Inc.
=================================================================
BORDERS GROUP BANKRUPTCY NEWS covers the bookstore chain's journey
into Chapter 11 as the Ann Arbor-based bookseller attempts to
restructure its operations. From the first FREE four issues of BORDERS GROUP BANKRUPTCY NEWS, a $180 value being given away for free.
To receive BORDERS GROUP BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
572 Fernwood Lane
Fairless Hills, PA 19030
Telephone (215) 945-7000
Fax (215) 945-7001
E-mail: peter@bankrupt.com
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an
ad hoc basis as significant activity occurs (generally every 10
to 20 days) in the Debtor's cases. The subscription rate is
US$45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
and pay for their own subscriptions. Subscriptions may be
canceled at any time without further obligation.
We have published similar newsletters tracking
billion-dollar insolvency proceedings since 1990, starting
with Federated Department Stores. Currently, we provide
similar coverage about most billion-dollar corporate
restrucutring proceedings.
We also co-publish the TROUBLED COMPANY REPORTER, tracking
more than 3,000 experiencing financial distress or
restructuring their balance sheets in a judicial proceeding.
You can request a free 30-day trial subscription to the
TROUBLED COMPANY REPORTER at http://bankrupt.com/freetrial/.
=================================================================
[ ] YES! Please enter my personal subscription to
BORDERS GROUP BANKRUPTCY NEWS at US$45 per
issue until I tell you to cancel my subscription.
Name:
----------------------------------------------
Firm:
----------------------------------------------
Address:
----------------------------------------------
----------------------------------------------
Phone:
----------------------------------------------
Fax:
----------------------------------------------
E-Mail:
----------------------------------------------
(Distribution to multiple professionals at the
same firm is provided at no additional cost.)
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an ad
hoc basis as significant activity occurs (generally every 10 to 20
days) in the Debtors' cases. The subscription rate is US$45 per
issue. Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Borders Group's FAQs for Customers about Reorganization
Borders Group Released FAQs for Customers about Borders' Reorganization:
Why did Borders file for chapter 11?
Chapter 11 provides Borders with the best route to have the opportunity to reorganize and, in turn, reposition the Company to be successful for the long-term. Under chapter 11, Borders has the opportunity to put in place a proper infusion of capital in order to operate its business while it seeks to reorganize.
Is Borders going out of business?
No – Borders is not going out of business. We are continuing normal business operations. We are in the process of repositioning Borders to be the absolute destination of choice for shoppers who wish to purchase books and related products whether in the store or online.
Will the filing affect the selection of books and other goods and services that Borders offers?
We do not expect this to be the case.
I understand you are closing stores nationwide – is this true?
Borders will continue to maintain its strong national presence. Our nationwide network of stores is foundational to the Borders brand. Borders, however, will be closing underperforming stores within our network over the next several weeks. Should your local store be affected, please visit Borders.com to find another Borders store near you, or to purchase from our vast selection of books and other merchandise online.
Will I be told if my local store is closing?
Yes, customers will be notified of closing stores in their general area.
Where can I find another store in my area?
Visit Borders.com, click on the Store Locator tab at the top of the page, and search by zip code or city.
What’s the impact on Borders Gift Cards? Are they still valid?
Customers can redeem their Borders’s gift cards as usual in all stores and Borders.com. They can also purchase gift cards online and in many stores nationwide. Note: customers can redeem but not buy gift cards in closing stores.
Is my Borders Rewards Plus membership still valid?
Yes, our Borders Rewards programs, including Borders Rewards Plus, are still in effect. Participating customers will continue to earn Rewards, which they may redeem in all stores and online at Borders.com. They may also sign up for the Rewards program online and in most stores. Note: customers cannot sign up for the Rewards program in closing stores.
Can I still order books and eBooks from Borders.com?
Yes! Borders.com is up and running and will be significantly improved in the coming weeks to enhance our customers’ online shopping experience.
Will the filing impact my eBook library?
No, the filing has no impact on your eBook library.
=================================================================
BORDERS GROUP BANKRUPTCY NEWS covers the bookstore chain's journey
into Chapter 11 as the Ann Arbor-based bookseller attempts to
restructure its operations. From the first FREE four issues of BORDERS GROUP BANKRUPTCY NEWS, a $180 value being given away for free.
To receive BORDERS GROUP BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
572 Fernwood Lane
Fairless Hills, PA 19030
Telephone (215) 945-7000
Fax (215) 945-7001
E-mail: peter@bankrupt.com
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an
ad hoc basis as significant activity occurs (generally every 10
to 20 days) in the Debtor's cases. The subscription rate is
US$45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
and pay for their own subscriptions. Subscriptions may be
canceled at any time without further obligation.
We have published similar newsletters tracking
billion-dollar insolvency proceedings since 1990, starting
with Federated Department Stores. Currently, we provide
similar coverage about most billion-dollar corporate
restrucutring proceedings.
We also co-publish the TROUBLED COMPANY REPORTER, tracking
more than 3,000 experiencing financial distress or
restructuring their balance sheets in a judicial proceeding.
You can request a free 30-day trial subscription to the
TROUBLED COMPANY REPORTER at http://bankrupt.com/freetrial/.
=================================================================
[ ] YES! Please enter my personal subscription to
BORDERS GROUP BANKRUPTCY NEWS at US$45 per
issue until I tell you to cancel my subscription.
Name:
----------------------------------------------
Firm:
----------------------------------------------
Address:
----------------------------------------------
----------------------------------------------
Phone:
----------------------------------------------
Fax:
----------------------------------------------
E-Mail:
----------------------------------------------
(Distribution to multiple professionals at the
same firm is provided at no additional cost.)
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an ad
hoc basis as significant activity occurs (generally every 10 to 20
days) in the Debtors' cases. The subscription rate is US$45 per
issue. Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Why did Borders file for chapter 11?
Chapter 11 provides Borders with the best route to have the opportunity to reorganize and, in turn, reposition the Company to be successful for the long-term. Under chapter 11, Borders has the opportunity to put in place a proper infusion of capital in order to operate its business while it seeks to reorganize.
Is Borders going out of business?
No – Borders is not going out of business. We are continuing normal business operations. We are in the process of repositioning Borders to be the absolute destination of choice for shoppers who wish to purchase books and related products whether in the store or online.
Will the filing affect the selection of books and other goods and services that Borders offers?
We do not expect this to be the case.
I understand you are closing stores nationwide – is this true?
Borders will continue to maintain its strong national presence. Our nationwide network of stores is foundational to the Borders brand. Borders, however, will be closing underperforming stores within our network over the next several weeks. Should your local store be affected, please visit Borders.com to find another Borders store near you, or to purchase from our vast selection of books and other merchandise online.
Will I be told if my local store is closing?
Yes, customers will be notified of closing stores in their general area.
Where can I find another store in my area?
Visit Borders.com, click on the Store Locator tab at the top of the page, and search by zip code or city.
What’s the impact on Borders Gift Cards? Are they still valid?
Customers can redeem their Borders’s gift cards as usual in all stores and Borders.com. They can also purchase gift cards online and in many stores nationwide. Note: customers can redeem but not buy gift cards in closing stores.
Is my Borders Rewards Plus membership still valid?
Yes, our Borders Rewards programs, including Borders Rewards Plus, are still in effect. Participating customers will continue to earn Rewards, which they may redeem in all stores and online at Borders.com. They may also sign up for the Rewards program online and in most stores. Note: customers cannot sign up for the Rewards program in closing stores.
Can I still order books and eBooks from Borders.com?
Yes! Borders.com is up and running and will be significantly improved in the coming weeks to enhance our customers’ online shopping experience.
Will the filing impact my eBook library?
No, the filing has no impact on your eBook library.
=================================================================
BORDERS GROUP BANKRUPTCY NEWS covers the bookstore chain's journey
into Chapter 11 as the Ann Arbor-based bookseller attempts to
restructure its operations. From the first FREE four issues of BORDERS GROUP BANKRUPTCY NEWS, a $180 value being given away for free.
To receive BORDERS GROUP BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
572 Fernwood Lane
Fairless Hills, PA 19030
Telephone (215) 945-7000
Fax (215) 945-7001
E-mail: peter@bankrupt.com
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an
ad hoc basis as significant activity occurs (generally every 10
to 20 days) in the Debtor's cases. The subscription rate is
US$45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
and pay for their own subscriptions. Subscriptions may be
canceled at any time without further obligation.
We have published similar newsletters tracking
billion-dollar insolvency proceedings since 1990, starting
with Federated Department Stores. Currently, we provide
similar coverage about most billion-dollar corporate
restrucutring proceedings.
We also co-publish the TROUBLED COMPANY REPORTER, tracking
more than 3,000 experiencing financial distress or
restructuring their balance sheets in a judicial proceeding.
You can request a free 30-day trial subscription to the
TROUBLED COMPANY REPORTER at http://bankrupt.com/freetrial/.
=================================================================
[ ] YES! Please enter my personal subscription to
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BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an ad
hoc basis as significant activity occurs (generally every 10 to 20
days) in the Debtors' cases. The subscription rate is US$45 per
issue. Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Borders Group Bankruptcy News: First Four Issues Free
How will Borders Group persuade its creditors to be on the same page for the book retailer's restructuring? Find out the details and more from BORDERS GROUP BANKRUPTCY NEWS.
Download the first four issues of BORDERS GROUP BANKRUPTCY NEWS for FREE at http://bankrupt.com/borders/
BORDERS GROUP BANKRUPTCY NEWS covers the bookstore chain's journey
into Chapter 11 as the Ann Arbor-based bookseller attempts to
restructure its operations. From the first four issues of BORDERS
GROUP BANKRUPTCY NEWS, a $180 value being given away for free:
* find out who the specialty retailer's largest unsecured creditors
are and how much they are owed;
* read the details of the bookstore's debtor-in-possession
financing, how much they need to pay at what dates during the
Chapter 11 process, what events will get them in trouble with
their lenders, etc.;
* learn about Borders' cash management system, its compensation
policies, its customer programs, its critical vendors, etc.;
* scrutinize the services to be rendered and fees that will be
charged by Borders' Chapter 11 professionals -- lawyers,
accountants, financial advisors, claims agent, others; and
* get an overview of the events and strategies employed as the
bookseller struggles to get its bearing during the first few
days into Chapter 11.
To receive future editions of BORDERS GROUP BANKRUPTCY NEWS:
(A) complete and return the subscription form included
in Issue No. 1 for an on-going paid subscription; or
(B) purchase single issues at http://bankrupt.com/newsstand/
using a major credit card.
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an
ad hoc basis as significant activity occurs (generally every 10
to 20 days) in the Debtor's cases. The subscription rate is
US$45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
and pay for their own subscriptions. Subscriptions may be
canceled at any time without further obligation.
To continue receiving BORDERS GROUP BANKRUPTCY NEWS, please
complete the subscription form included in Issue No. 1 and return
it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
572 Fernwood Lane
Fairless Hills, PA 19030
Telephone (215) 945-7000
E-mail: peter@bankrupt.com
We have published similar newsletters tracking
billion-dollar insolvency proceedings since 1990, starting
with Federated Department Stores. Currently, we provide
similar coverage about most billion-dollar corporate
restrucutring proceedings.
We also co-publish the TROUBLED COMPANY REPORTER, tracking
more than 3,000 experiencing financial distress or
restructuring their balance sheets in a judicial proceeding.
You can request a free 30-day trial subscription to the
TROUBLED COMPANY REPORTER at http://bankrupt.com/freetrial/.
Download the first four issues of BORDERS GROUP BANKRUPTCY NEWS for FREE at http://bankrupt.com/borders/
BORDERS GROUP BANKRUPTCY NEWS covers the bookstore chain's journey
into Chapter 11 as the Ann Arbor-based bookseller attempts to
restructure its operations. From the first four issues of BORDERS
GROUP BANKRUPTCY NEWS, a $180 value being given away for free:
* find out who the specialty retailer's largest unsecured creditors
are and how much they are owed;
* read the details of the bookstore's debtor-in-possession
financing, how much they need to pay at what dates during the
Chapter 11 process, what events will get them in trouble with
their lenders, etc.;
* learn about Borders' cash management system, its compensation
policies, its customer programs, its critical vendors, etc.;
* scrutinize the services to be rendered and fees that will be
charged by Borders' Chapter 11 professionals -- lawyers,
accountants, financial advisors, claims agent, others; and
* get an overview of the events and strategies employed as the
bookseller struggles to get its bearing during the first few
days into Chapter 11.
To receive future editions of BORDERS GROUP BANKRUPTCY NEWS:
(A) complete and return the subscription form included
in Issue No. 1 for an on-going paid subscription; or
(B) purchase single issues at http://bankrupt.com/newsstand/
using a major credit card.
BORDERS GROUP BANKRUPTCY NEWS is distributed to paying
subscribers by electronic mail. New issues are published on an
ad hoc basis as significant activity occurs (generally every 10
to 20 days) in the Debtor's cases. The subscription rate is
US$45 per issue.
Newsletters are delivered via e-mail; invoices, transmitted
following publication of each newsletter issue, arrive by fax.
Re-mailing of BORDERS GROUP BANKRUPTCY NEWS is prohibited.
Distribution to multiple individuals at the same firm is provided
at no additional charge; folks outside of your firm should set-up
and pay for their own subscriptions. Subscriptions may be
canceled at any time without further obligation.
To continue receiving BORDERS GROUP BANKRUPTCY NEWS, please
complete the subscription form included in Issue No. 1 and return
it by fax or e-mail to:
Bankruptcy Creditors' Service, Inc.
572 Fernwood Lane
Fairless Hills, PA 19030
Telephone (215) 945-7000
E-mail: peter@bankrupt.com
We have published similar newsletters tracking
billion-dollar insolvency proceedings since 1990, starting
with Federated Department Stores. Currently, we provide
similar coverage about most billion-dollar corporate
restrucutring proceedings.
We also co-publish the TROUBLED COMPANY REPORTER, tracking
more than 3,000 experiencing financial distress or
restructuring their balance sheets in a judicial proceeding.
You can request a free 30-day trial subscription to the
TROUBLED COMPANY REPORTER at http://bankrupt.com/freetrial/.
BORDERS GROUP: Chapter 11 Is Next Chapter for Borders
"It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers and other vendor related parties, and the company's lack of liquidity, Borders Group does not have the capital resources it needs to be a viable competitor and which are essential for it to move forward with its business strategy to reposition itself successfully for the long term. To position Borders to remedy this condition, Borders Group, with the authorization of its board of directors, has filed a petition for reorganization relief under Chapter 11 of the Bankruptcy Code. This decisive action will give Borders the opportunity to achieve a proper infusion of capital in order to have the opportunity to have the time to reorganize in order to reposition itself to be a successful business for the long term," said Mike Edwards, Borders Group President.
"In this regard, operating under Chapter 11, Borders has received commitments for $505 million in Debtor-in-Possession (DIP) financing led by GE Capital, Restructuring Finance. This financing should enable Borders to meet its obligations going forward so that our stores continue to be competitive for customers in terms of goods, services and the shopping experience. It also affords Borders the opportunity to move forward in implementing the appropriate business strategy designed to reposition Borders to be a potentially vibrant, national retailer of books and other products," Mr. Edwards emphasized.
The company said that it is serving customers in the normal course, including honoring its Borders Rewards program, gift cards and other customer programs. Additionally, the company expects to make employee payroll and continue its benefits programs for its employees.
Borders said that it has many strengths upon which to build a solid plan of reorganization and implement a new business model for Borders to address the changing needs of the American reader. "For decades, Borders has been a beacon of engagement - a highly frequented destination for consumers and a significant venue for authors and vendors to showcase new books and merchandise. We have the ability, based on our brick and mortar presence nationally; the on-line capabilities we have in place; the loyalty of, and access to, our customers; and the products and services we offer to be an important and easy access destination of exploration and purchase for readers across the country," commented Mr. Edwards.
The company noted that, among other initiatives and subject to court approval, Borders plans to undertake a strategic Store Reduction Program to facilitate reorganization and its repositioning. Borders has identified certain underperforming stores -- equivalent to approximately 30 percent of the company's national store network -- that are expected to close in the next several weeks. At the same time, the company noted that a major strength of Borders is its national presence, and its extensive network of remaining stores as well as Borders.com, will continue to run in normal course. The company emphasized that the closings were a reflection of economic conditions, cost structures and viability of locations, among other factors, and not on the dedication and productivity of the workforce in these stores.
"We are confident that, with the protection afforded under Chapter 11 and with the support of employees, publishers, suppliers and creditors, and the reading public, a successful reorganization can be achieved enabling Borders to emerge from the process as a stronger and more vibrant book seller," concluded Mr. Edwards.
"We are very pleased to be able to make this commitment to Borders as support for their plan to re-organize the company," said Tim Tobin, Managing Director, Retail Restructuring, GE Capital, Restructuring Finance.
The Chapter 11 petition for relief was filed in the U.S. Bankruptcy Court, Southern District of New York. Completion of the company's DIP financing arrangements is subject to approval of the Bankruptcy Court and the satisfaction of certain conditions provided in the financing commitments received by the company from the lenders providing such financing.
Additional information about the reorganization is available at http://www.bordersreorganization.com/ or by telephone at (877) 906-7675.
About Borders Group, Inc.
Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP) is a leading specialty retailer of books as well as other educational and entertainment items. Online shopping is offered through borders.com. Find author interviews and vibrant discussions of the products we and our customers are passionate about online at facebook.com/borders, twitter.com/borders and youtube.com/bordersmedia. For more information about the company, visit borders.com/media.
"In this regard, operating under Chapter 11, Borders has received commitments for $505 million in Debtor-in-Possession (DIP) financing led by GE Capital, Restructuring Finance. This financing should enable Borders to meet its obligations going forward so that our stores continue to be competitive for customers in terms of goods, services and the shopping experience. It also affords Borders the opportunity to move forward in implementing the appropriate business strategy designed to reposition Borders to be a potentially vibrant, national retailer of books and other products," Mr. Edwards emphasized.
The company said that it is serving customers in the normal course, including honoring its Borders Rewards program, gift cards and other customer programs. Additionally, the company expects to make employee payroll and continue its benefits programs for its employees.
Borders said that it has many strengths upon which to build a solid plan of reorganization and implement a new business model for Borders to address the changing needs of the American reader. "For decades, Borders has been a beacon of engagement - a highly frequented destination for consumers and a significant venue for authors and vendors to showcase new books and merchandise. We have the ability, based on our brick and mortar presence nationally; the on-line capabilities we have in place; the loyalty of, and access to, our customers; and the products and services we offer to be an important and easy access destination of exploration and purchase for readers across the country," commented Mr. Edwards.
The company noted that, among other initiatives and subject to court approval, Borders plans to undertake a strategic Store Reduction Program to facilitate reorganization and its repositioning. Borders has identified certain underperforming stores -- equivalent to approximately 30 percent of the company's national store network -- that are expected to close in the next several weeks. At the same time, the company noted that a major strength of Borders is its national presence, and its extensive network of remaining stores as well as Borders.com, will continue to run in normal course. The company emphasized that the closings were a reflection of economic conditions, cost structures and viability of locations, among other factors, and not on the dedication and productivity of the workforce in these stores.
"We are confident that, with the protection afforded under Chapter 11 and with the support of employees, publishers, suppliers and creditors, and the reading public, a successful reorganization can be achieved enabling Borders to emerge from the process as a stronger and more vibrant book seller," concluded Mr. Edwards.
"We are very pleased to be able to make this commitment to Borders as support for their plan to re-organize the company," said Tim Tobin, Managing Director, Retail Restructuring, GE Capital, Restructuring Finance.
The Chapter 11 petition for relief was filed in the U.S. Bankruptcy Court, Southern District of New York. Completion of the company's DIP financing arrangements is subject to approval of the Bankruptcy Court and the satisfaction of certain conditions provided in the financing commitments received by the company from the lenders providing such financing.
Additional information about the reorganization is available at http://www.bordersreorganization.com/ or by telephone at (877) 906-7675.
About Borders Group, Inc.
Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP) is a leading specialty retailer of books as well as other educational and entertainment items. Online shopping is offered through borders.com. Find author interviews and vibrant discussions of the products we and our customers are passionate about online at facebook.com/borders, twitter.com/borders and youtube.com/bordersmedia. For more information about the company, visit borders.com/media.
Tuesday, February 15, 2011
FRASER PAPERS: Implements Plan of Arrangement
The TCR reports that Fraser Papers Inc. and its subsidiaries disclosed that the Amended Plan of Arrangement and Compromise, which was approved by its creditors on February 8, 2011, has been approved by the courts overseeing the Company's creditor protection proceedings.
At a hearing on February 10, 2011, the Ontario Superior Court of Justice, which is overseeing the proceedings under the Companies' Creditor Arrangement Act ("CCAA") in Canada, issued orders (the "Canadian Orders") sanctioning the Plan and approving the transaction under which the Company has agreed to sell its subsidiaries in the U.S. to the Plan Sponsor, Brookfield Asset Management (the "Transaction").
At a hearing on February 11, 2011, the U.S. Bankruptcy Court for the District of Delaware, which is overseeing the proceedings under Chapter 15 of the U.S. Bankruptcy Code, issued a recognition order recognizing the Canadian Orders, sanctioning the Plan and approving the Transaction.
Following the approvals by the Canadian Court and the US Court, the Company began working diligently to complete the Transaction and implement the Plan on February 15, 2011. As part of the implementation of the Plan, the Company distributed approximately $44 million in unsecured notes issued by Twin Rivers Paper Company Inc. ("Twin Rivers") and a 49% common equity interest in Twin Rivers to Fraser Papers' creditors.
Fraser Papers Inc. continues under creditor protection while it finalizes its restructuring activities including settling unresolved claims, completing the sale of certain assets and distributing all residual cash to creditors after paying the remaining costs of the proceedings. Fraser Papers expects to complete these activities before its stay period expires on May 2, 2011.
About Fraser Papers
Fraser Papers -- http://www.fraserpapers.com/ -- is an integrated
specialty paper company that produces a broad range of specialty
packaging and printing papers. The Company has operations in New
Brunswick, Maine, New Hampshire and Quebec.
On June 18, 2009, citing continued operating losses, weak markets
for pulp and lumber, impending debt repayments and significant
pension funding obligations, the Company and its subsidiaries
filed for protection under the Companies Creditors Arrangement Act
(Ont. Super. Ct. J. Ct. File No. CV-09-8241-00CL) in Toronto and
Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
09-12123). Fraser is represented by Michael Barrack, Esq.,
Robert I. Thornton, Esq., and D.J. Miller, Esq., at
ThorntonGroutFinnigan LLP, in Toronto, and Derek C. Abbott, Esq.,
at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Del.
At a hearing on February 10, 2011, the Ontario Superior Court of Justice, which is overseeing the proceedings under the Companies' Creditor Arrangement Act ("CCAA") in Canada, issued orders (the "Canadian Orders") sanctioning the Plan and approving the transaction under which the Company has agreed to sell its subsidiaries in the U.S. to the Plan Sponsor, Brookfield Asset Management (the "Transaction").
At a hearing on February 11, 2011, the U.S. Bankruptcy Court for the District of Delaware, which is overseeing the proceedings under Chapter 15 of the U.S. Bankruptcy Code, issued a recognition order recognizing the Canadian Orders, sanctioning the Plan and approving the Transaction.
Following the approvals by the Canadian Court and the US Court, the Company began working diligently to complete the Transaction and implement the Plan on February 15, 2011. As part of the implementation of the Plan, the Company distributed approximately $44 million in unsecured notes issued by Twin Rivers Paper Company Inc. ("Twin Rivers") and a 49% common equity interest in Twin Rivers to Fraser Papers' creditors.
Fraser Papers Inc. continues under creditor protection while it finalizes its restructuring activities including settling unresolved claims, completing the sale of certain assets and distributing all residual cash to creditors after paying the remaining costs of the proceedings. Fraser Papers expects to complete these activities before its stay period expires on May 2, 2011.
About Fraser Papers
Fraser Papers -- http://www.fraserpapers.com/ -- is an integrated
specialty paper company that produces a broad range of specialty
packaging and printing papers. The Company has operations in New
Brunswick, Maine, New Hampshire and Quebec.
On June 18, 2009, citing continued operating losses, weak markets
for pulp and lumber, impending debt repayments and significant
pension funding obligations, the Company and its subsidiaries
filed for protection under the Companies Creditors Arrangement Act
(Ont. Super. Ct. J. Ct. File No. CV-09-8241-00CL) in Toronto and
Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
09-12123). Fraser is represented by Michael Barrack, Esq.,
Robert I. Thornton, Esq., and D.J. Miller, Esq., at
ThorntonGroutFinnigan LLP, in Toronto, and Derek C. Abbott, Esq.,
at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Del.
NORTHGATE PROPERTIES: Files for Chapter 11 in Reno
The TCR reports that Reno, Nevada-based Northgate Properties Inc. filed a Chapter 11 petition in its hometown (Bankr. D. Nev. Case No. 11-5-451) in, estimating assets of $10 million to $50 million and debts of up to $10 million. Attorneys at Darby law Practice, Ltd., represent the Debtor.
NORTHGATE PROPERTIES: Files for Chapter 11 in Reno
The TCR reports that Reno, Nevada-based Northgate Properties Inc. filed a Chapter 11 petition in its hometown (Bankr. D. Nev. Case No. 11-5-451) in, estimating assets of $10 million to $50 million and debts of up to $10 million. Attorneys at Darby law Practice, Ltd., represent the Debtor.
DONG-IN DEVELOPMENT: Files for Chapter 11 in Chicago
The TCR reports that Barrington, Illinois-based Dong-In Development USA LLC filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 11-05508) in Chicago, estimating assets of $10 million to $50 million and debts of up to $10 million. Attorneys at MC Law Group 135 represent the Debtor.
CARTER'S GROVE: Files for Chapter 11 in San Francisco
The TCR reports that Carter's Grove, LLC, filed a Chapter 11 petition (Bankr. N.D. Calif. Case No. 11-30554), estimating assets and debts of $10 million to $50 million. Attorneys at Pachulski, Stang, Ziehl, and Jones LLP represent the Debtor.
Monday, February 14, 2011
Troubled Company Reporter - Feb. 15, 2011
For a 30-day trial of the TCR , please CLICK
ACCENTIA BIOPHARMACEUTICALS: Posts $7.5-Mil. Net Loss in Q1
ACTIVECARE INC: Posts $1.7 Million Net Loss in Fiscal Q1
ADVANCED DISINFECTION: Files for Chapter 7 Liquidation
ADVANTA CORP: Court Confirms Chapter 11 Plan
AEOLUS PHARMACEUTICALS: Preferred Stock Hiked to 1.6MM Shares
AGRISOLAR SOLUTIONS: Posts $6,500 Net Loss in Dec. 31 Quarter
AKSM HOLDINGS: Judge Approves Sale to ViWinTech & Brown
AMERICAL APPAREL: 2009 Financials Now Labeled as 'Unaudited'
AMERICAN APPAREL: John Luttrell Does Not Own Any Securities
AMERICAN CAMSHAFT: $3.12MM Payments to Gerdau Not Preferential
ANCHOR BANCORP: Incurs $12.18 Million Net Loss in Dec. 31 Qtr.
ARCHIBALD ONTARIO: Case Summary & 9 Largest Unsecured Creditors
ARYX THERAPEUTICS: K. Leonard Resigns From Board of Directors
ASARCO LLC: Case vs. Barclays Transferred to Judge Hanen
ASARCO LLC: Court OKs Marten Law Group's $1.7 Mil. Fees
ASHLEY SMITH: Case Summary & 9 Largest Unsecured Creditors
AUBURN EXPRESS: Case Summary & Largest Unsecured Creditor
AW FINANCIAL: Case Summary & 3 Largest Unsecured Creditors
BAKERS FOOTWEAR: Sales Hike to $58.2MM in 13 Weeks Ended Jan. 29
BAL BAY: Case Summary & 2 Largest Unsecured Creditors
BEAVERDAM LAND: Case Summary & 5 Largest Unsecured Creditors
BF BOLTHOUSE: Moody's Gives Negative Outlook on 7x Leverage
BION ENVIRONMENTAL: Posts $3.1 Million Net Loss in Dec. 31 Quarter
BIOVEST INTERNATIONAL: Incurs $11.7MM Loss in Dec. 31 Quarter
BLOCKBUSTER INC: Diamondback Equity Stake Down to 0%
BLOCKBUSTER INC: Goldman Sachs Units Report 0.1% Equity Stake
BLOCKBUSTER INC: M.A.M., et al., Report 5.77% Equity Stake
BLOCKBUSTER INC: U.S. Trustee Closes Sec. 341 Meeting
BORCHERT LLC: Case Summary & 19 Largest Unsecured Creditors
BROWN MEDIA: BizWest Acquires Three Business Newspapers
BRUNSCHWIG & FILS: Kravet-Led Auction on March 7
CALIFORNIA COASTAL: To Present Plan for Confirmation Tomorrow
CALIFORNIA COASTAL: Gets Court's Permission to Sell Homes
CANO PETROLEUM: Trapeze Group's Equity Stake Down to 1.1%
CASCADE BANCORP: Green Equity Discloses 24.4% Equity Stake
CASCADE BANCORP: Two Directors Do Not Own Any Securities
CASCADE BANCORP: Wilbur Ross Has 24.4% Equity Stake
CASTLE HORIZON: Court Denies First Citizens' Bid to Dismiss Case
CC MEDIA: Incurs $62.67 Million Net Loss in Fourth Quarter
CEDAR FAIR: Moody's Assigns 'Ba2' Rating to $1.18 Bil. Loan
CENTRAL PACIFIC FINANCIAL: Posts $251 Million Net Loss in 2010
CHARLES LETT: Impaireds Can Appeal Without Objecting to Plan
CHEMTURA CORP: Judge Approves Mediation Over Pool Filter Claims
CHRISTENSEN REALTY: Files Amended Plan of Reorganization
CJH PETS: Case Summary & 14 Largest Unsecured Creditors
CLAIRE'S STORES: Bank Debt Trades at 2% Off in Secondary Market
CLEAR CHANNEL: Bank Debt Trades at 8% Off in Secondary Market
CLEAR CHANNEL: Intends to Amend Senior Credit Facilities
CLEAR CHANNEL: To Offer $750MM Priority Guarantee Notes Due 2021
CLEAR CHANNEL: Moody's Assigns 'Caa2' Corporate Family Rating
CLEAR CHANNEL OUTDOOR: Incurs $87.52 Million Net Loss in 2010
CLEARWIRE CORP: F. Ianna Won't Seek Re-Election as Board Member
CLEARWIRE CORP: Stockholders Approve Amendments to Equity Plan
CLEARWIRE CORP: To Swap Employee Stock Options With New RSUs
CLOVERLEAF ENTERPRISES: Wins Formal Approval to Sell to Penn
CMB III: Files Proposed Plan of Reorganization
COMPOSITE TECHNOLOGY: Posts $3.2MM Net Loss in December 31 Quarter
CONGRESS SAND: Files Proposed Plan of Reorganization
CRC HEALTH: Moody's Puts 'B1' Rating on Senior Secured Bank Loan
CREDIT-BASED ASSET: Files Liquidating Chapter 11 Plan
CRYOPORT INC: Closes First Round of Private Placement for $4.4MM
CRYSTALLEX INT'L: Mine Contract in Venezuela Terminated
DEEL LLC: Plan Outline Hearing Scheduled for March 21
DELPHI CORP: Investigators Probe GM Funding of New Pensions
DELTA AIR: Pays $313 Million in Profit Sharing to Employees
DENNY HECKER: Sentenced to 10 Years, Fined $31 Million
DENNY'S CORPORATION: Keeley Asset Discloses 9.0% Equity Stake
DIAMOND RANCH: Reports $20,500 Net Income in Dec. 31 Quarter
DIPAK DESAI: Nevada Mutual Renews Motion for Ch. 7 Liquidation
DIPAK DESAI: Terms of Creditors Committee's Proposed Plan
DONALD LINDSEY: Case Summary & 20 Largest Unsecured Creditors
DOWLING COLLEGE: S&P Downgrades Long-Term Debt Rating to 'BB'
DS WATERS: Placed by S&P on Watch Negative due to Refinancing Risk
ENERGY XXI: Fitch Assigns 'B/RR4' Rating to $250 Mil. Notes
ENERGY XXI: Moody's Assigns 'Caa1' Rating to $250 Mil. Notes
ENERGY XXI: S&P Assigns 'B' Senior Rating to $250 Mil. Notes
ESCALON MEDICAL: Posts $1.0 Million Loss in Dec. 31 Quarter
FIRST FOLIAGE: Sells Assets to Costa Farms for $22 Million
FIRSTFED FINANCIAL: Plan Set for March 29 Confirmation
FORD MOTOR: Note Redemption Won't Affect Moody's 'Ba2' Rating
FORUM HEALTH: Debtor & Committee Have Competing Ch. 11 Plans
FREESCALE SEMICONDUCTOR: To Raise Up to $1.15 Billion in IPO
G-I HOLDINGS: Asbestos Property Damage Claim Was Time-Barred
GENERAL MOTORS: Investigators Probe Funding of New Delphi Pensions
GENERAL MOTORS: Treasury Could Exit From New GM Next Year
GREENBRIER COS: Keeley Discloses 8.9% Equity Stake
GREENSHIFT CORP: CEO Hopeful to Make Additional Progress in 2011
GUITAR CENTER: Bank Debt Trades at 2% Off in Secondary Market
GUNNALLEN FINANCIAL: M.D. Fla. Rejects Non-Debtor Releases
HAWKER BEECHCRAFT: Bank Debt Trades at 10% Off in Secondary Market
HARD ROCK HOTEL: NRFC Agrees to Forbear Until Feb. 28
HERCULES OFFSHORE: Debt Trades at 1.5% Off in Secondary Market
HOMER CITY: Fitch Downgrades Ratings on $830 Mil. Bonds to 'BB'
HUNTINGTON INGALLS: Moody's Keeps 'Ba2' Corp. Family Rating
IA GLOBAL: RXR Cross Border Discloses 5.0% Equity Stake
IMAGEWARE SYSTEMS: Bruce Toll Discloses 27.39% Equity Stake
INDEPENDENCE TAX: Dec. 31 Balance Sheet Upside-Down by $5.1-Mil.
INDEPENDENCE TAX II: Dec. 31 Balance Sheet Upside-Down by $44.9MM
INDEPENDENCE TAX III: Dec. 31 Balance Sheet Upside-Down by $27.9MM
INDEPENDENCE TAX IV: Dec. 31 Balance Sheet Upside-Down by $14.1MM
INDYMAC BANCORP: SEC Charges Former Executives With Fraud
INTERDENT INC: S&P Withdraws 'CCC' Corporate Credit Rating
INTERNATIONAL RECTIFIER: Fitch Affirms 'BB' Issuer Default Rating
INTELSAT SA: 2010 Capital Expenditures Total $932 Million
INTERTAPE POLYMER: Rutabaga Capital Discloses 3.86% Equity Stake
IRVING TANNING: Tasman Closes Purchase After Residents' Nod
JAMES HOWARD WINSLOW: Court Denies Bid for Chapter 11 Trustee
JAVO BEVERAGE: Plan Outline Hearing Set for March 16
JETBLUE AIRWAYS: Amends 2009 10-K for Trueblue Adjustments
JETBLUE AIRWAYS: Amends 2010 Q1 Report for TrueBlue Adjustment
JETBLUE AIRWAYS: Amends 2010 Q2 Report for TrueBlue Adjustment
JETBLUE AIRWAYS: Amends 2010 Q3 Report for TrueBlue Adjustment
J.F.S. INTERNATIONAL: Case Summary & Creditors List
K-V PHARMA: Filing of 10-Q for Dec. 31 Quarter Delayed
KNOLOGY INC: Proposed Refinancing Won't Affect Moody's 'B1' Rating
KOALTY TIME: Case Summary & 20 Largest Unsecured Creditors
KOBRA PETROLEUM: Case Summary & 8 Largest Unsecured Creditors
KRATOS DEFENSE: Herley Deal Won't Affect Moody's 'B3' Rating
L. FITZGERALD LESTER: Voluntary Chapter 11 Case Summary
LAS VEGAS SANDS: Moody's Upgrades Corporate Family Rating to 'Ba3'
LDK SOLAR: Offering RMB-Denominated US$-Settled Notes
LE-NATURE'S INC: Former CEO Accused of Selling Ill-Gotten Jewels
LEVEL GLOBAL: Insider Trading Probe Prompts Wind Down
LIBBEY INC: BlackRock Holds 7.47% Equity Stake
LIONCREST TOWERS: Files Plan; Wells Fargo to Be Paid Over 5 Years
LODGENET INTERACTIVE: BlackRock Discloses 6.19% Equity Stake
LONESOME PINE: Seeks Monetary Damages from Beuna Vista et al.
LSM HOTEL: Court Declines to Halt Toreador State Court Litigation
MARGAUX ORO: Asks Court's Nod to Use Wells Fargo's Cash Collateral
MARKWEST ENERGY: Fitch Assigns 'BB' Rating to $300 Mil. Notes
MESA AIR: Court OKs Settlement of GE Electric Aircraft Claims
MESA AIR: Reaches Settlement With Fokker Services
MESA AIR: Resolves Dispute With AAR Corp. on Cure Amounts
MIRANT CORP: Dist. Ct. Says Ga. Law Applies to Commerzbank Suit
MOMENTIVE PERFORMANCE: S&P Assigns 'B' Rating to $1 Bil. Loans
MONEY TREE: Posts $4.1 Million Net Loss in Dec. 25 Quarter
MONEYGRAM INT'L: BlackRock Discloses 5.76% Equity Stake
MORGANS HOTEL: Two Mezzanine Units Reach Forbearance Agreement
MPG TRUST: BlackRock Discloses 6.56% Equity Stake
NAVISTAR INT'L: BlackRock Discloses 7.97% Equity Stake
NORTEL NETWORKS: Ericsson Offers EU Remedies on $65MM Nortel Deal
NPS PHARMACEUTICALS: BlackRock Discloses 7.46% Equity Stake
OCTOBER TRUST: Case Summary & 2 Largest Unsecured Creditors
ONE SMART: Case Summary & 20 Largest Unsecured Creditors
ORGANICA BIOTECH: Three Firms Under Chapter 11
ORLEANS HOMEBUILDERS: Emerges From Ch 11 With $160MM in Financing
OTC HOLDINGS: Oriental Trading Emerges from Chapter 11
PACIFIC CAPITAL: Moody's Upgrades Long-Term Issuer Rating to 'B2'
PASTEURIZED EGGS: Inventor & Asset Buyer Debate Patent Claims
PHYSICIAN ONCOLOGY: Moody's Assigns 'B2' Corporate Family Rating
PLAYBOY ENTERPRISES: Moody's Assigns 'B2' Rating to $195 Mil. Loan
PLY GEM HOLDINGS: Expects $215MM to 222MM in Sales for Q4
POINT BLANK: Automatic Stay Applies to Qui Tam Action
POINT BLANK: Slows Disclosure, Seeks More Exclusivity
PRECISION ENGINEERED: Moody's Puts 'B1' Rating on $190 Mil. Notes
PRIME GROUP: Sells Biz to Five Mile; Inks Debt Refinancing Deal
PRIMUS TELECOMMUNICATIONS: Moody's Raises Corp. Family Rating
PROVIDENT FUNDING: S&P Assigns 'B' Rating to $200 Mil. Notes
QA3 FINANCIAL: Case Summary & 20 Largest Unsecured Creditors
QUEENS BALLPARK: Moody's Affirms 'Ba1' Rating, Gives Neg. Outlook
QUEPASA CORP: Files Copy of Securities Purchase Agreement
QUEPASA CORP: Incurs $6.65 Million Net Loss in Fiscal 2010
QUEPASA CORP: John Abbott Discloses 15.3% Equity Stake
QUEPASA CORP: Michael Matte Discloses 11.3% Equity Stake
RACE POINT: S&P Assigns 'BB' Rating to $275 Mil. Senior Loan
RADIO ONE: Moody's Corrects Press Release on Credit Loan Ratings
RANCHER ENERGY: Form 10-Q Filing for Dec. 31 Quarter Delayed
RCLC INC: Hearing on Plan Outline Set for March 10
REGAL ENTERTAINMENT: Fitch Puts 'B-/RR6' Rating on $100 Mil. Notes
REGAL ENTERTAINMENT: Moody's Puts 'B3' Rating on $100 Mil. Notes
REGAL ENTERTAINMENT: S&P Assigns 'BB-' Rating to New Loan
RLAND PROPERTIES: Sent 15 Shopping Centers to Chapter 11
RUGGED BEAR: Hires K&L Gates as Counsel Despite Conflict
RUGGED BEAR: Hires Gordon Brothers for Store Closures
SABERTOOTH LLC: Bankr. Ct. Can't Review Confessed Judgment
SANFORD ASSOCIATES: Case Summary & 5 Largest Unsecured Creditors
SEAHAWK DRILLING: Asks for Court's Nod to Obtain DIP Financing
SEAHAWK DRILLING: Taps Fulbright & Jaworski as Gen. Bankr. Counsel
SEAHAWK DRILLING: Wants to Sell Substantially All of Assets
SECUREALERT INC: Inks GPS Monitoring Contract in Mexico
SHALAN ENTERPRISES: Can Sell Las Vegas Property for $290,000
SMITHFIELD FOODS: Moody's Upgrades Corporate Family Rating to 'B1'
SOLAR ENERTECH: Reports $5 Million Net Income in Dec. 31 Quarter
SOUTH EDGE: Appeals Chapter 11 Ruling and Trustee Appointment
SPICEWOOD DEVELOPMENT: Essentially No Equity Left in Ch. 11 Estate
SPITZER INDUSTRIES: Moody's Assigns 'B2' Corporate Family Rating
SPITZER INDUSTRIES: S&P Assigns 'B' Corporate Credit Rating
SUNCAL COS: Seeks to Halt Exit Plans for Projects Backed by Lehman
SYNTERRA 3020: Can Use Inland Mortgage's Cash Until February 28
TANGLEWOOD FARMS: Court Denies Bid for Chapter 11 Trustee
TAYLOR BEAN: Troutman Seeks to Nix Ex-Chairman's Info Demand
TAYLOR BEAN: Again Selling Georgia Office Building
TBS INTERNATIONAL: Joseph Royce Discloses 36.7% Equity Stake
TC GLOBAL: December 26 Balance Sheet Upside-Down by $6.8 Million
TEAM FINANCE: Moody's Upgrades Corporate Family Rating to 'Ba3'
TOUSA INC: District Judge Voids Fraudulent Transfer Judgement
TRIBUNE CO: Bank Debt Trades at 26% Off in Secondary Market
TRIBUNE CO: Court Junks Aurelius, et al., Pleas for Documents
TRIBUNE CO: New York Tax Dept. Objects to Competing Plans
TRIBUNE CO: Parties File Plan & LBO-Related Discovery Requests
TRICO MARINE: Receives Court Nod of Noteholders Settlement
TRONOX INC: Emerges From Chapter 11
TWO DETROIT: Case Summary & 20 Largest Unsecured Creditors
ULTIMATE ACQUISITION: Employee Files Class Action Over Firings
ULTIMATE ACQUISITION: Wins Court's OK to Liquidate 46 Stores
UNION CARBIDE: Moody's Raises Rating on 6.79% Bonds From 'Ba2'
WALLACE TERRACE: Voluntary Chapter 11 Case Summary
WASHINGTON MUTUAL: Disclosure Hearing Set for March 21
WASHINGTON MUTUAL: Files Motion to Return Rights Offering Payments
WASHINGTON MUTUAL: Insurer Seeks Quick Win in $4.5M Coverage Row
WATERFORD GAMING: Supplemental Bonds Won't Affect Moody's Rating
WORD WORLD: Voluntary Chapter 11 Case Summary
W.R. GRACE: BNSF Seeks Reconsideration of Deal Objection Denial
W.R. GRACE: Wins Nod to Amend 2010 L/C Facility Agreement
W.R. GRACE: Wins Nod to Extend Credit Agreement With ART
YRC WORLDWIDE: Fitch Affirms 'CC' Issuer Default Rating
* Great American Group Introduces Quarterly Auctions
* Large Companies With Insolvent Balance Sheets
ACCENTIA BIOPHARMACEUTICALS: Posts $7.5-Mil. Net Loss in Q1
ACTIVECARE INC: Posts $1.7 Million Net Loss in Fiscal Q1
ADVANCED DISINFECTION: Files for Chapter 7 Liquidation
ADVANTA CORP: Court Confirms Chapter 11 Plan
AEOLUS PHARMACEUTICALS: Preferred Stock Hiked to 1.6MM Shares
AGRISOLAR SOLUTIONS: Posts $6,500 Net Loss in Dec. 31 Quarter
AKSM HOLDINGS: Judge Approves Sale to ViWinTech & Brown
AMERICAL APPAREL: 2009 Financials Now Labeled as 'Unaudited'
AMERICAN APPAREL: John Luttrell Does Not Own Any Securities
AMERICAN CAMSHAFT: $3.12MM Payments to Gerdau Not Preferential
ANCHOR BANCORP: Incurs $12.18 Million Net Loss in Dec. 31 Qtr.
ARCHIBALD ONTARIO: Case Summary & 9 Largest Unsecured Creditors
ARYX THERAPEUTICS: K. Leonard Resigns From Board of Directors
ASARCO LLC: Case vs. Barclays Transferred to Judge Hanen
ASARCO LLC: Court OKs Marten Law Group's $1.7 Mil. Fees
ASHLEY SMITH: Case Summary & 9 Largest Unsecured Creditors
AUBURN EXPRESS: Case Summary & Largest Unsecured Creditor
AW FINANCIAL: Case Summary & 3 Largest Unsecured Creditors
BAKERS FOOTWEAR: Sales Hike to $58.2MM in 13 Weeks Ended Jan. 29
BAL BAY: Case Summary & 2 Largest Unsecured Creditors
BEAVERDAM LAND: Case Summary & 5 Largest Unsecured Creditors
BF BOLTHOUSE: Moody's Gives Negative Outlook on 7x Leverage
BION ENVIRONMENTAL: Posts $3.1 Million Net Loss in Dec. 31 Quarter
BIOVEST INTERNATIONAL: Incurs $11.7MM Loss in Dec. 31 Quarter
BLOCKBUSTER INC: Diamondback Equity Stake Down to 0%
BLOCKBUSTER INC: Goldman Sachs Units Report 0.1% Equity Stake
BLOCKBUSTER INC: M.A.M., et al., Report 5.77% Equity Stake
BLOCKBUSTER INC: U.S. Trustee Closes Sec. 341 Meeting
BORCHERT LLC: Case Summary & 19 Largest Unsecured Creditors
BROWN MEDIA: BizWest Acquires Three Business Newspapers
BRUNSCHWIG & FILS: Kravet-Led Auction on March 7
CALIFORNIA COASTAL: To Present Plan for Confirmation Tomorrow
CALIFORNIA COASTAL: Gets Court's Permission to Sell Homes
CANO PETROLEUM: Trapeze Group's Equity Stake Down to 1.1%
CASCADE BANCORP: Green Equity Discloses 24.4% Equity Stake
CASCADE BANCORP: Two Directors Do Not Own Any Securities
CASCADE BANCORP: Wilbur Ross Has 24.4% Equity Stake
CASTLE HORIZON: Court Denies First Citizens' Bid to Dismiss Case
CC MEDIA: Incurs $62.67 Million Net Loss in Fourth Quarter
CEDAR FAIR: Moody's Assigns 'Ba2' Rating to $1.18 Bil. Loan
CENTRAL PACIFIC FINANCIAL: Posts $251 Million Net Loss in 2010
CHARLES LETT: Impaireds Can Appeal Without Objecting to Plan
CHEMTURA CORP: Judge Approves Mediation Over Pool Filter Claims
CHRISTENSEN REALTY: Files Amended Plan of Reorganization
CJH PETS: Case Summary & 14 Largest Unsecured Creditors
CLAIRE'S STORES: Bank Debt Trades at 2% Off in Secondary Market
CLEAR CHANNEL: Bank Debt Trades at 8% Off in Secondary Market
CLEAR CHANNEL: Intends to Amend Senior Credit Facilities
CLEAR CHANNEL: To Offer $750MM Priority Guarantee Notes Due 2021
CLEAR CHANNEL: Moody's Assigns 'Caa2' Corporate Family Rating
CLEAR CHANNEL OUTDOOR: Incurs $87.52 Million Net Loss in 2010
CLEARWIRE CORP: F. Ianna Won't Seek Re-Election as Board Member
CLEARWIRE CORP: Stockholders Approve Amendments to Equity Plan
CLEARWIRE CORP: To Swap Employee Stock Options With New RSUs
CLOVERLEAF ENTERPRISES: Wins Formal Approval to Sell to Penn
CMB III: Files Proposed Plan of Reorganization
COMPOSITE TECHNOLOGY: Posts $3.2MM Net Loss in December 31 Quarter
CONGRESS SAND: Files Proposed Plan of Reorganization
CRC HEALTH: Moody's Puts 'B1' Rating on Senior Secured Bank Loan
CREDIT-BASED ASSET: Files Liquidating Chapter 11 Plan
CRYOPORT INC: Closes First Round of Private Placement for $4.4MM
CRYSTALLEX INT'L: Mine Contract in Venezuela Terminated
DEEL LLC: Plan Outline Hearing Scheduled for March 21
DELPHI CORP: Investigators Probe GM Funding of New Pensions
DELTA AIR: Pays $313 Million in Profit Sharing to Employees
DENNY HECKER: Sentenced to 10 Years, Fined $31 Million
DENNY'S CORPORATION: Keeley Asset Discloses 9.0% Equity Stake
DIAMOND RANCH: Reports $20,500 Net Income in Dec. 31 Quarter
DIPAK DESAI: Nevada Mutual Renews Motion for Ch. 7 Liquidation
DIPAK DESAI: Terms of Creditors Committee's Proposed Plan
DONALD LINDSEY: Case Summary & 20 Largest Unsecured Creditors
DOWLING COLLEGE: S&P Downgrades Long-Term Debt Rating to 'BB'
DS WATERS: Placed by S&P on Watch Negative due to Refinancing Risk
ENERGY XXI: Fitch Assigns 'B/RR4' Rating to $250 Mil. Notes
ENERGY XXI: Moody's Assigns 'Caa1' Rating to $250 Mil. Notes
ENERGY XXI: S&P Assigns 'B' Senior Rating to $250 Mil. Notes
ESCALON MEDICAL: Posts $1.0 Million Loss in Dec. 31 Quarter
FIRST FOLIAGE: Sells Assets to Costa Farms for $22 Million
FIRSTFED FINANCIAL: Plan Set for March 29 Confirmation
FORD MOTOR: Note Redemption Won't Affect Moody's 'Ba2' Rating
FORUM HEALTH: Debtor & Committee Have Competing Ch. 11 Plans
FREESCALE SEMICONDUCTOR: To Raise Up to $1.15 Billion in IPO
G-I HOLDINGS: Asbestos Property Damage Claim Was Time-Barred
GENERAL MOTORS: Investigators Probe Funding of New Delphi Pensions
GENERAL MOTORS: Treasury Could Exit From New GM Next Year
GREENBRIER COS: Keeley Discloses 8.9% Equity Stake
GREENSHIFT CORP: CEO Hopeful to Make Additional Progress in 2011
GUITAR CENTER: Bank Debt Trades at 2% Off in Secondary Market
GUNNALLEN FINANCIAL: M.D. Fla. Rejects Non-Debtor Releases
HAWKER BEECHCRAFT: Bank Debt Trades at 10% Off in Secondary Market
HARD ROCK HOTEL: NRFC Agrees to Forbear Until Feb. 28
HERCULES OFFSHORE: Debt Trades at 1.5% Off in Secondary Market
HOMER CITY: Fitch Downgrades Ratings on $830 Mil. Bonds to 'BB'
HUNTINGTON INGALLS: Moody's Keeps 'Ba2' Corp. Family Rating
IA GLOBAL: RXR Cross Border Discloses 5.0% Equity Stake
IMAGEWARE SYSTEMS: Bruce Toll Discloses 27.39% Equity Stake
INDEPENDENCE TAX: Dec. 31 Balance Sheet Upside-Down by $5.1-Mil.
INDEPENDENCE TAX II: Dec. 31 Balance Sheet Upside-Down by $44.9MM
INDEPENDENCE TAX III: Dec. 31 Balance Sheet Upside-Down by $27.9MM
INDEPENDENCE TAX IV: Dec. 31 Balance Sheet Upside-Down by $14.1MM
INDYMAC BANCORP: SEC Charges Former Executives With Fraud
INTERDENT INC: S&P Withdraws 'CCC' Corporate Credit Rating
INTERNATIONAL RECTIFIER: Fitch Affirms 'BB' Issuer Default Rating
INTELSAT SA: 2010 Capital Expenditures Total $932 Million
INTERTAPE POLYMER: Rutabaga Capital Discloses 3.86% Equity Stake
IRVING TANNING: Tasman Closes Purchase After Residents' Nod
JAMES HOWARD WINSLOW: Court Denies Bid for Chapter 11 Trustee
JAVO BEVERAGE: Plan Outline Hearing Set for March 16
JETBLUE AIRWAYS: Amends 2009 10-K for Trueblue Adjustments
JETBLUE AIRWAYS: Amends 2010 Q1 Report for TrueBlue Adjustment
JETBLUE AIRWAYS: Amends 2010 Q2 Report for TrueBlue Adjustment
JETBLUE AIRWAYS: Amends 2010 Q3 Report for TrueBlue Adjustment
J.F.S. INTERNATIONAL: Case Summary & Creditors List
K-V PHARMA: Filing of 10-Q for Dec. 31 Quarter Delayed
KNOLOGY INC: Proposed Refinancing Won't Affect Moody's 'B1' Rating
KOALTY TIME: Case Summary & 20 Largest Unsecured Creditors
KOBRA PETROLEUM: Case Summary & 8 Largest Unsecured Creditors
KRATOS DEFENSE: Herley Deal Won't Affect Moody's 'B3' Rating
L. FITZGERALD LESTER: Voluntary Chapter 11 Case Summary
LAS VEGAS SANDS: Moody's Upgrades Corporate Family Rating to 'Ba3'
LDK SOLAR: Offering RMB-Denominated US$-Settled Notes
LE-NATURE'S INC: Former CEO Accused of Selling Ill-Gotten Jewels
LEVEL GLOBAL: Insider Trading Probe Prompts Wind Down
LIBBEY INC: BlackRock Holds 7.47% Equity Stake
LIONCREST TOWERS: Files Plan; Wells Fargo to Be Paid Over 5 Years
LODGENET INTERACTIVE: BlackRock Discloses 6.19% Equity Stake
LONESOME PINE: Seeks Monetary Damages from Beuna Vista et al.
LSM HOTEL: Court Declines to Halt Toreador State Court Litigation
MARGAUX ORO: Asks Court's Nod to Use Wells Fargo's Cash Collateral
MARKWEST ENERGY: Fitch Assigns 'BB' Rating to $300 Mil. Notes
MESA AIR: Court OKs Settlement of GE Electric Aircraft Claims
MESA AIR: Reaches Settlement With Fokker Services
MESA AIR: Resolves Dispute With AAR Corp. on Cure Amounts
MIRANT CORP: Dist. Ct. Says Ga. Law Applies to Commerzbank Suit
MOMENTIVE PERFORMANCE: S&P Assigns 'B' Rating to $1 Bil. Loans
MONEY TREE: Posts $4.1 Million Net Loss in Dec. 25 Quarter
MONEYGRAM INT'L: BlackRock Discloses 5.76% Equity Stake
MORGANS HOTEL: Two Mezzanine Units Reach Forbearance Agreement
MPG TRUST: BlackRock Discloses 6.56% Equity Stake
NAVISTAR INT'L: BlackRock Discloses 7.97% Equity Stake
NORTEL NETWORKS: Ericsson Offers EU Remedies on $65MM Nortel Deal
NPS PHARMACEUTICALS: BlackRock Discloses 7.46% Equity Stake
OCTOBER TRUST: Case Summary & 2 Largest Unsecured Creditors
ONE SMART: Case Summary & 20 Largest Unsecured Creditors
ORGANICA BIOTECH: Three Firms Under Chapter 11
ORLEANS HOMEBUILDERS: Emerges From Ch 11 With $160MM in Financing
OTC HOLDINGS: Oriental Trading Emerges from Chapter 11
PACIFIC CAPITAL: Moody's Upgrades Long-Term Issuer Rating to 'B2'
PASTEURIZED EGGS: Inventor & Asset Buyer Debate Patent Claims
PHYSICIAN ONCOLOGY: Moody's Assigns 'B2' Corporate Family Rating
PLAYBOY ENTERPRISES: Moody's Assigns 'B2' Rating to $195 Mil. Loan
PLY GEM HOLDINGS: Expects $215MM to 222MM in Sales for Q4
POINT BLANK: Automatic Stay Applies to Qui Tam Action
POINT BLANK: Slows Disclosure, Seeks More Exclusivity
PRECISION ENGINEERED: Moody's Puts 'B1' Rating on $190 Mil. Notes
PRIME GROUP: Sells Biz to Five Mile; Inks Debt Refinancing Deal
PRIMUS TELECOMMUNICATIONS: Moody's Raises Corp. Family Rating
PROVIDENT FUNDING: S&P Assigns 'B' Rating to $200 Mil. Notes
QA3 FINANCIAL: Case Summary & 20 Largest Unsecured Creditors
QUEENS BALLPARK: Moody's Affirms 'Ba1' Rating, Gives Neg. Outlook
QUEPASA CORP: Files Copy of Securities Purchase Agreement
QUEPASA CORP: Incurs $6.65 Million Net Loss in Fiscal 2010
QUEPASA CORP: John Abbott Discloses 15.3% Equity Stake
QUEPASA CORP: Michael Matte Discloses 11.3% Equity Stake
RACE POINT: S&P Assigns 'BB' Rating to $275 Mil. Senior Loan
RADIO ONE: Moody's Corrects Press Release on Credit Loan Ratings
RANCHER ENERGY: Form 10-Q Filing for Dec. 31 Quarter Delayed
RCLC INC: Hearing on Plan Outline Set for March 10
REGAL ENTERTAINMENT: Fitch Puts 'B-/RR6' Rating on $100 Mil. Notes
REGAL ENTERTAINMENT: Moody's Puts 'B3' Rating on $100 Mil. Notes
REGAL ENTERTAINMENT: S&P Assigns 'BB-' Rating to New Loan
RLAND PROPERTIES: Sent 15 Shopping Centers to Chapter 11
RUGGED BEAR: Hires K&L Gates as Counsel Despite Conflict
RUGGED BEAR: Hires Gordon Brothers for Store Closures
SABERTOOTH LLC: Bankr. Ct. Can't Review Confessed Judgment
SANFORD ASSOCIATES: Case Summary & 5 Largest Unsecured Creditors
SEAHAWK DRILLING: Asks for Court's Nod to Obtain DIP Financing
SEAHAWK DRILLING: Taps Fulbright & Jaworski as Gen. Bankr. Counsel
SEAHAWK DRILLING: Wants to Sell Substantially All of Assets
SECUREALERT INC: Inks GPS Monitoring Contract in Mexico
SHALAN ENTERPRISES: Can Sell Las Vegas Property for $290,000
SMITHFIELD FOODS: Moody's Upgrades Corporate Family Rating to 'B1'
SOLAR ENERTECH: Reports $5 Million Net Income in Dec. 31 Quarter
SOUTH EDGE: Appeals Chapter 11 Ruling and Trustee Appointment
SPICEWOOD DEVELOPMENT: Essentially No Equity Left in Ch. 11 Estate
SPITZER INDUSTRIES: Moody's Assigns 'B2' Corporate Family Rating
SPITZER INDUSTRIES: S&P Assigns 'B' Corporate Credit Rating
SUNCAL COS: Seeks to Halt Exit Plans for Projects Backed by Lehman
SYNTERRA 3020: Can Use Inland Mortgage's Cash Until February 28
TANGLEWOOD FARMS: Court Denies Bid for Chapter 11 Trustee
TAYLOR BEAN: Troutman Seeks to Nix Ex-Chairman's Info Demand
TAYLOR BEAN: Again Selling Georgia Office Building
TBS INTERNATIONAL: Joseph Royce Discloses 36.7% Equity Stake
TC GLOBAL: December 26 Balance Sheet Upside-Down by $6.8 Million
TEAM FINANCE: Moody's Upgrades Corporate Family Rating to 'Ba3'
TOUSA INC: District Judge Voids Fraudulent Transfer Judgement
TRIBUNE CO: Bank Debt Trades at 26% Off in Secondary Market
TRIBUNE CO: Court Junks Aurelius, et al., Pleas for Documents
TRIBUNE CO: New York Tax Dept. Objects to Competing Plans
TRIBUNE CO: Parties File Plan & LBO-Related Discovery Requests
TRICO MARINE: Receives Court Nod of Noteholders Settlement
TRONOX INC: Emerges From Chapter 11
TWO DETROIT: Case Summary & 20 Largest Unsecured Creditors
ULTIMATE ACQUISITION: Employee Files Class Action Over Firings
ULTIMATE ACQUISITION: Wins Court's OK to Liquidate 46 Stores
UNION CARBIDE: Moody's Raises Rating on 6.79% Bonds From 'Ba2'
WALLACE TERRACE: Voluntary Chapter 11 Case Summary
WASHINGTON MUTUAL: Disclosure Hearing Set for March 21
WASHINGTON MUTUAL: Files Motion to Return Rights Offering Payments
WASHINGTON MUTUAL: Insurer Seeks Quick Win in $4.5M Coverage Row
WATERFORD GAMING: Supplemental Bonds Won't Affect Moody's Rating
WORD WORLD: Voluntary Chapter 11 Case Summary
W.R. GRACE: BNSF Seeks Reconsideration of Deal Objection Denial
W.R. GRACE: Wins Nod to Amend 2010 L/C Facility Agreement
W.R. GRACE: Wins Nod to Extend Credit Agreement With ART
YRC WORLDWIDE: Fitch Affirms 'CC' Issuer Default Rating
* Great American Group Introduces Quarterly Auctions
* Large Companies With Insolvent Balance Sheets
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