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Syms, Lee, Beacon, Lehman, Viceroy, NewPage: Bankruptcy

23.05.12

(This statement contains items about companies both in bankruptcy and not in bankruptcy. Adds Lee Enterprises in Prepack Coming, Lehman and Viceroy Look to in Updates, Briefly Noted section and November bankruptcy filings in Statistics.)

Dec. 5 (Bloomberg) -- Liquidating retailers Syms Corp. and subsidiary Filene's Basement LLC are background up procedures to auction store leases. The companies' primary bankruptcy lawyers, Skadden Arps Slate Meagher & Flom LLP, disclosed that the constant has represented many creditors.

Skadden filed papers last week seeking pompous approval to represent Syms. In the process Skadden must disclose all connections it has with Syms and its creditors.

In totalling to representing Chairman Marcy Syms in estate- planning matters, New York-based Skadden currently represents or has represented five secured creditors, seven factors, several landlords, three members of the pompous creditors' committee, and more than half of the 20 unsecured creditors with the largest claims.

There will be a hearing in bankruptcy court on Dec. 28 to gauge approval of the Skadden engagement. To qualify, Skadden must demonstrate that it has no conflict of interest and is “even-handed.” Skadden says it has represented no creditors in matters involving Syms.

Syms began present-out-of-business sales at all stores in mid-November. The sales are to be finished by the end of December.

In papers filed in bankruptcy court last week, Syms wants the review to approve procedures where anyone intending to buy the lease for a vacated store must submit an provide by Dec. 20, in advance of an auction on Dec. 22. A hearing to approve lease sales would take site Dec. 28.

The hearing to approve lease-sale procedures is set for Dec. 14.

The 15 stores that Syms owns are to be sold after the GOB sales.

Secaucus, New Jersey-based Syms purchased Filene's through a bankruptcy auction in June 2009 in what was Filene's alternate venture in Chapter 11. At the outset of Chapter 11, there were 25 Syms stores and 21 Filene's locations. Assets were listed for $236 million, including official estate on the books for $97.7 million. Liabilities are $94 million, including $31.1 million owing on a revolving honour with Bank of America NA as agent. In addition, there are $11.1 million in letters of accept outstanding on the revolver.

The case is In re Filene's Basement LLC, 11-13511, U.S. Bankruptcy Court, Partition of Delaware (Wilmington).

Prepack Coming

St. Louis Post Dispatch Holder to Prepack by Dec. 12

Lee Enterprises Inc., the owner of the St. Louis Post- Dispatch and 47 other continually newspapers, said it will file a prepackaged Chapter 11 reorganization by Dec. 12 to redo and extend the maturity of the remaining $138 million in 9.05 percent first-lien notes due April 2012.

The loan documents be lacking unanimous approval to modify the notes. Since holders of 6 percent of the notes didn't go along, bankruptcy will be cast-off to complete the restructuring, Lee said in a statement on Dec. 2.

Lee reached agreement in September to tone down the remaining $835 million in first-lien term loan and revolving credit that also matures in April. The modified financing is to tabulate a $689.5 million term loan, a $40 million revolving credit not expected to be pinched initially, and a $175 million term loan.

The loan modification required refinancing the maturing $138 million in what are referred to as Pulitzer notes. Attribution markets wouldn't permit refinancing, according to the statement.

Consequently, Lee agreed to swap the existing notes for new responsibility to carry an initial 10.55 percent interest rate that will increase annually. The new notes are to have a director balance of $126.4 million.

The transactions are expected to dilute existing domestic by 13 percent. Lee aims to be in and out of Chapter 11 within 60 days.

Lee, based in Davenport, Iowa, acquired Pulitzer Inc. in 2005 to acquisition control of the Post-Dispatch. In addition to 48 daily newspapers, Lee has 300 specialty publications and interests in four other dailies.

Lee closed on Dec. 2 at 53 cents, down 1 cent in New York Banal Exchange composite trading.

Updates

Beacon Power Allowing All Employees to Wager on Sale

Beacon Power Corp., a developer of flywheel technology to aggregate electric energy, is proposing a bonus program for all employees where the workers are as tenable to lose as they are to win.

If approved by the bankruptcy court in Delaware at a Dec. 15 hearing, any hand can defer up to 25 percent of income. The workers have already been given a 20 percent remuneration reduction.

For all of the workers who agree to participate, the aggregate deferral can't exceed $100,000. If the topic is sold for enough to repay the cash collateral of the U.S. Energy Department used during bankruptcy, the workers will draw a bonus up to 100 percent of the deferred salary.

Beacon has power to use the Dash Department's $3 million in cash on condition that the assets be sold not later than Jan. 25.

There will be a hearing in bankruptcy court on Dec. 15 for blessing of auction and sale procedures. The proposed schedule calls for initial indications of interest by Jan. 9, followed by formal bids on Jan. 23, the auction on Jan. 25, and a hearing to approve the mark-down on Jan. 30.

The sale schedule was negotiated after the U.S. Energy Department objected to the use of cash in which it was claiming a care interest.

The government was saying that Beacon's plant was losing $1 million a month in spondulix.

Tyngsboro, Massachusetts-based Beacon filed for Chapter 11 defence on Oct. 30 in Delaware, listing assets of $72 million and debt totaling $47 million, including $39.1 million owing on the regime-guaranteed loan. Beacon built a $69 million facility with 20-megawatts of balancing post in Stephentown, New York, funded mostly by the Energy Department loan.

Beacon reported a $17 million net negative cash flow death for the first half of 2011 on revenue of $970,000. Operating expenses totaled $11.5 million.

The carton is In re Beacon Power Corp., 11-13450, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Lehman Brokerage Trustee Aims for Beforehand 2012 Distribution

The trustee liquidating Lehman Brothers Inc., the brokerage subsidiary of Lehman Brothers Holdings Inc., filed papers last week to break up the $23.7 billion in cash and securities he's holding between the general estate and a endowment going only to customers, known as the fund of customer property.

The proposed allocation, to be the bound by of a Jan. 25 hearing, is intended to lay the groundwork for what James W. Giddens, the Lehman stockjobber's trustee, said in his papers will be a distribution in early 2012.

The trustee's papers show that $18.3 billion will be earmarked for customers alone, if the critic approves. If the trustee wins his appeals of a July judgment ending the legal remedy with Barclays Plc, there would be another $3.5 billion for customers and $4.4 billion for the general demesne.

The property now in Giddens's control consists of $12.7 billion in securities and $11 billion in loot. Of the total, the trustee says the “great bulk” is present for distribution. He anticipates $1 billion in future recoveries. The amount already in hand includes $3 billion held in at one's fingertips pending the outcome of the trustee's lawsuit with Barclays.

For a rundown on what the trustee and Barclays each won in July arising from Barclays's object of the Lehman broker in September 2008, click here for the July 25 Bloomberg bankruptcy communiqu.

The Lehman holding company will hold a confirmation hearing tomorrow for endorsement of the Chapter 11 plan. About $65 billion is projected for eventual parcelling to creditors who voted overwhelmingly in favor of the reorganization proposal.

The Lehman holding institution filed under Chapter 11 in New York on Sept. 15, 2008, and sold branch buildings and the North American investment-banking business to Barclays one week later. The remnants of the Lehman brokerage operations went into liquidation on Sept. 19, 2008, in the same court, with a trustee appointed under the Securities Investor Bulwark Act.

The Lehman holding company Chapter 11 case is In re Lehman Brothers Holdings Inc., 08-13555, while the liquidation annals under the Securities Investor Protection Act for the brokerage operation is Securities Investor Shield Corp. v. Lehman Brothers Inc., 08-01420, both in U.S. Bankruptcy Court, Southern Quarter of New York (Manhattan).

Viceroy Anguilla Resort's Chapter 11 Occasion Dismissed

The Chapter 11 reorganization of the Viceroy Anguilla Resort & Residences on Anguilla in the British West Indies was dismissed on Dec. 2 by the U.S. Bankruptcy Court in Delaware as a consequence of the moderate's refusal in September to confirm the proposed reorganization plan.

Along with dismissal, U.S. Bankruptcy Jurist Peter Walsh sided with the secured lender and ruled that professionals in the event weren't entitled to payment of unpaid fees. Walsh ruled that professionals had already been paid all except $21,800 from the so-called carveout intended to envelop fees if the plan weren't confirmed.

Source: BusinessWeek

Indiana Community Bancorp Reports Operating Results (10-Q)

23.05.12

Highlight of Responsibility Operations: The provision for loan losses increased $12.4 million to $14.1 million for the board ended September 30, 2011, compared to $1.6 million for the quarter ended September 30, 2010. Net indict offs were $13.3 million for the current quarter compared to $1.3 million for the third thirteen weeks of 2010. The charge offs related primarily to nine commercial customers with downright balances prior to the charge offs of approximately $32.7 million and which accounted for $11.9 million of the $13.3 million of responsibility offs in the third quarter of 2011. Among those nine relationships, the Company experienced deterioration cognate to three large investment real estate customers during the third quarter. These three customers accounted for $18.5 million of the loan balances and $8.1 million of the direction offs for the quarter. The Company recorded an additional charge off related to one investment honest estate customer totaling $1.3 million on balances of $5.6 million based on recently negotiated sales. In supplement, the Company charged off previously recognized specific reserves totaling $2.5 million affiliated to five commercial customers with balances totaling $8.6 million. Substantially all command offs for the quarter related to loans in the Indianapolis area.

Total non interest proceeds increased $1.8 million or 22.0% to $9.9 million for the nine months ended September 30, 2011. As esteemed in the quarterly discussion the primary reason for the increase in non interest income is the $2.1 million upward on securities sales recorded as part of the repositioning strategy involving the sale of nearly $71.0 million of securities. The securities sale resulted in a $1.9 million growing year over year in gain on securities. Miscellaneous income increased $136,000 due to negligible increases in fee income of $33,000 and dividend income on FHLB stock of $28,000, as well as a $44,000 negative cash flow death on sale of assets that occurred in 2010. Categories that experienced decreases in fees file service fees on deposit accounts of $316,000 or 6.6% and a decrease in improvement of the sale of loans of $98,000 or 7.3%. The decrease in service fees on deposits was driven by a net reduction in overdraft benefit fees of $397,000 or 14.5%. In the current challenging economy customers have developed more true-blue spending habits, thereby avoiding overdraft fees. The decrease in gain on transaction marked down of loans reflects the $6.1 million decrease in loan originations for sale in the two comparative year to woman periods. While residential mortgage rates remain at historically low levels, the past two years have seen multiple refinancing periods when customers who were practised to refinance their homes did so. This past refinancing activity has reduced the potential number of customers interested in refinancing their homes.

Performing commercial TDR loans at September 30, 2011 consist of two commercial heartfelt estate loans totaling $2.3 million that are interest only; three commercial real wealth loans totaling $489,000 that are amortizing and one $2.6 million amortizing commercial installment loan. One of the interest only TDRs is a note for $1.3 million. Current sell flow projections for this borrower do not support an amortizing payment on this note. The note was restructured to permit the borrower to improve performance in what is an improving environment for the industry. This note is collateralized by a New Zealand pub property and matures December 31, 2011, at which time the global cash go and financial position of the borrower will be reevaluated. The second interest only is a TDR note for $935,000. This note is cross collateralized with other notes to the same borrower and is secured by six commercial properties. These properties consist of four retail belt centers as well as single tenant retail buildings and office complex. Appraisals were obtained on four of the six properties in September of 2009. The four appraisals obtained were discounted 20% to lay down for estimated selling costs of the properties and to reflect the age of the appraisals. As part of the restructuring function two additional properties were obtained as collateral that had appraisals performed in February 2008. Comparing the 2008 appraisals to updated appraisals for like properties the Company determined a 25% discount was appropriate due to the age of the appraisals. Based on this tidings the Company completed an analysis which showed excess collateral value of roughly $1.1 million and a loan to value ratio of 63%. Therefore no reserve was established for this borrower. The $2.6 million TDR consists of an amortizing commercial installment loan. This TDR loan is secured by facility equipment which is necessary for the operations of the business. An independent evaluation of the equipment was not obtained. Due to the hugely specialized purpose of the equipment, the value of the equipment utilized for the valuation of collateral for this loan was 50% of price. In addition, a cash deposit account in the amount of $750,000 is pledged and also secures the probity. The borrower s operating losses have been funded by a real estate investment commit (REIT) specializing in providing capital to hospitals. The REIT has invested in dissoluteness of $30 million to cover the operating losses of the hospital. The REIT recently signed on a unconfined doctor group with the hospital. With the addition of the doctor group it is anticipated that the health centre will reach a profitable status and positive cash flow position, although there can be no pledge as to that. In addition, there is a personal guarantor of the credit with a strong liquidity position, historically piquant cash flow and personal net worth of approximately $13 million. Based on payment engagement and a discounted cash flow analysis the Company was able to release a formerly established $280,000 specific reserve. The Company anticipates this credit will range to performing status in the fourth quarter, although there can be no guarantee of this. The Company does not habitually forgive principal or interest on restructured loans. However, when a loan is restructured, income and principal are principally received on a delayed basis as compared to the original repayment schedule. The Coterie generally receives more interest than originally scheduled, as the loan remains outstanding for longer periods of period, sometimes with higher average balances than originally scheduled. The average yield on modified commercial loans was 6.43%, compared to 5.48% earned on the unbroken commercial loan portfolio in the third quarter of 2011.

Total assets as of September 30, 2011, were $964.7 million, a fall off of $78.6 million or 7.5% from December 31, 2010, total assets of $1.04 billion. As mentioned in days, the Company completed a repositioning strategy prepaying $55.0 million in FHLB advances with funds from protection sales. The decision to execute the balance sheet repositioning strategies was triggered by the uncompromising movements in the market over the last several months and most notably during the early part of August. As a result of the merchandise volatility, the Company had a large unrealized gain in the securities portfolio. As crop and preservation of capital is a key strategy for the Company, it was determined that realizing a portion of the safe keeping gains thereby converting these amounts to permanent capital was prudent. In conjunction with the securities transactions, the Retinue reviewed its remaining wholesale funding. The currently structured variable place Federal Home Loan Bank advances had a total cost of approximately 2.05%, which in many cases was symmetrical to or higher than the reinvestment rate on many of the security classes utilized by the Company. Portfolio loans decreased $39.6 million from December 31, 2011. Commercial and commercial earnest estate loans have decreased $33.8 million in 2011. Net commercial and commercial mortgage loan order offs of $15.4 million, driven partially by the problem asset divestiture scenario, accounted for 45.7% of the decreased balance in this loan segment. Additionally commercial lending labour has been slow during 2011 driven primarily by limited new business expansion combined with highly-strung competition for high quality commercial relationships. Seconds and home justice loan balances have declined $4.1 million partially due to customers taking use of the low rates and refinancing these loans into first mortgages. The Company currently sells the immense majority of residential first mortgages it originates in the secondary market. Certificates of deposits decreased $35.9 million year to appointment as the Company does not negotiate rates for single service certificate of down payment customers. Higher rate public fund interest checking decreased $19.4 million while retail interest checking increased $8.4 million resulting in a net fall off in interest checking of $10.7 million. Demand deposits and savings and money sell accounts have increased $21.3 million, $6.5 million and $11.7 million, singly. This increase in transaction account balances is a reflection of the Company s current marketing and sales activities nave on transaction accounts aimed at attracting new customers and expanding relationships with existing customers.

Historically, the Body has maintained its liquid assets at a level believed adequate to meet requirements of ordinary daily activities, repayment of maturing debt and potential deposit outflows. Gelt flow projections are regularly reviewed and updated to assure that adequate liquidity is maintained. Scratch for these purposes is generated through the sale or maturity of investment securities and loan sales and repayments, and may be generated through increases in deposits. Loan payments are a to some degree stable source of funds, while deposit flows are influenced significantly by the horizontal

Source: GuruFocus.com