CREDITOR’S EDGE

(WEEKLY SUMMARY OF FINANCIALLY-CHALLENGED U.S. COMPANIES & OTHER COMPANY NEWS)

Issue of September 28, 2009

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At Press Time AutoZone Inc., the Memphis, Tn. firm which is one of the largest retailer and distributors of auto replacement parts in the nation, reported its fourth quarter net income declined 3%–to $236 million, on a slight sales increase–to $2.2 billion. For the year the company reported net sales increased nearly 5%–to $6.8 billion. Net income for the year increase 2.5%–to $657 million. Crusader Energy asked for approval from the U.S. Bankruptcy Court for certain solicitation procedures and other matters. The company reportedly entered into a stock-purchase agreement with SandRidge Energy valued at $230 million. Rite Aid Corp., the Harrisburg, Pa. drugstore chain which has been closing stores as part of its efforts to reduce expenses, reported a second quarter loss of $116 million, down from a loss of $222 million for the same period one year earlier. This was the company’s ninth straight quarterly loss. Revenue declined just under 3%–to $6.3 billion. Rite Aid now expects to report a fiscal loss of between 48 cents and 74 cents per share on sales of just over $26 billion. Steelcase Inc., the Grand Rapids, Mi. office furniture maker, reported break-even results for its second quarter compared with income of $31 million for the same period last year. Revenue declined 35%–to $578 million, less than the $600 million the company previously forecast.

The Economic Outlook The Federal Housing Finance Agency reported that home prices in the U.S. increased 0.3% in July, after increasing 0.1% the prior month.

The Conference Board reported its index of leading economic indicators increased 0.6% in August, this after increasing 0.9% in July. August represents the fifth consecutive monthly increase.

Notes for Business Executives A Brief Look at Some of the Schedules Used in a Chapter 11 Filing as it

Relates to Secured and Unsecured Claims There are many schedules used in a bankruptcy case. As an example, schedule D, in a Chapter 11 bankruptcy case, identifies the secured claims, even if they are only partially secured. In the case of partially secured claims, Schedule D must also identify the amount of the “deficiency” claim if it exists. Although the deficiency claim is a general unsecured claim, the debtor should not identify the deficiency claim on Schedule F too, which would be redundant. Often, a debtor has no basis to calculate the amount of the deficiency claim because the value of the underlying asset hasn’t been determined. In such cases, the entry is marked “unliquidated” to reflect the uncertainty of the secured claim. Also, if the debtor is party to a secured financing arrangement but treated as a lease for reporting purposes under GAAP, the liability can be reflected on Schedule D and the related real property assets can be identified on Schedule A. Regarding the value of collateral securing claims on Schedule D, before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), debtors had to state the market value of the asset. Like Schedule A, the word “market” was deleted from the column that requires the debtor to state the value of the collateral to ensure that there are no inferences concerning the applicable valuation standard.

BANKRUPTCY NEWS Action Motors Corporation, Danbury, Ct., filed Chapter 11 in the U.S. Bankruptcy Court in Connecticut. The firm listed assets of less than $100,000 and liabilities of between $1 million and $10 million. The filing was under case number 09-51891. For more information contact the court at 800-800-5113. ADS Logistics, a Chesterton, In. trucking and logistics operator, filed Chapter 11 in the U.S. Bankruptcy Court in Delaware listing assets of between $10 million and $50 million and liabilities of between $50 million and $100 million. For more information call the court at 302-252-2560.

Allied Primary Home Care Services Inc., San Antonio, Tx., filed Chapter 11 in the U.S. Bankruptcy Court for the Western District of Texas. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $10 million. The filing was under case number 09-53641. For more information contact the court at 888-436-7477. Alternative Distribution Systems Inc. has seen the U.S. Bankruptcy Court in Delaware set an auction date of 10/9 regarding the purchase of certain assets. A sale hearing has been set for 10/14. For more information call the attorney for the debtor, Norman Pernick, at 302-652-3131. American Electrical Services of Tampa Bay Inc., Tampa, Fl., filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida. The firm listed assets of less than $100,000 and liabilities of between $1 million and $10 million. The filing was under case number 09-21321. For more information contact the court at 866-879-1286. Big Muddy Services Inc., Vernon, Il., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Illinois. The firm listed assets of less than $100,000 and liabilities of between $1 million and $10 million. The filing was under case number 09-41569. For more information contact the court at 800-726-5622. BNP Oil & Gas Properties Ltd., Corpus Christi, Tx., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The firm listed assets and liabilities of between $50 million and $100 million each. The filing was under case number 09-20612. For more information contact the court at 800-745-4459. Brocade Communications Systems Inc., the San Jose, Ca. provider of data center network solutions which has been integrating its Foundry Networks purchase over the last year while continuing to develop its partnership with computer giant IBM Corp., expects sales for its current fiscal year, ending 10/30, to reach $2 billion–slightly higher than it previously projected. The firm also raised it sales projections for fiscal 2010–to nearly $2.5 billion. Analysts were projecting revenue next year of no more than $2.2 billion. Broken Wing Enterprises L.L.C., Clive, Ia., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Iowa. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $10 million. The filing was under case number 09-04598. For more information contact the court at 888-219-5534. Capital Funding and Consulting LLC, Glen Allen, Va., filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 09-36086. For more information contact the court at 800-326-5859.

Central Valley Food Services Inc., Roseville, Ca., filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of California. The firm listed assets of less than $100,000 and liabilities of between $10 million and $50 million. The filing was under case number 09-18993. For more information contact the court at 916-930-4400. Charter Communications Inc. should receive a ruling on its reorganization plan from the U.S. Bankruptcy Court on 9/30. Billionaire Paul Allen had hoped to restructure the cable company’s debt so as to maintain control, but it’s now thought that Mr. Allen, the co-founder of Microsoft Corp., could end up losing control of Charter. The company earlier filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Manhattan, N.Y. hoping to slash its $22 billion debtload by $8 billion. CIB Marine Bancshares, which recently filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Wisconsin and which is continuing to look for a strategic partner, listed assets of $105 million. The case number of the filing is 09-33318. For more information contact the court at 877-781-7277. Circuit City Stores Inc., along with its unsecured creditors committee, has filed its First Amended Joint Plan of Liquidation with the U.S. Bankruptcy Court. Under the plan there are eighteen legal entities that are being liquidated, with all assets and liabilities of the subsidiaries merged with those of Circuit City. Concho Business Soutions Inc., Mesquite, Tx., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 09-36248. For more information contact the court at 800-886-9008. Crusader Energy Group Inc. has seen SandRidge Energy Inc., an Oklahoma City, Ok. oil and gas firm, agree to purchase Crusader for $230 million once it completes its reorganization plan. Crusader’s unsecured and secured creditors are allegedly supporting the purchase. For more information contact Kevin White at 405-429-5515. Cygnus Business Media, the Fort Atkinson, Wi. trade publisher which filed a prepackaged plan of reorganization the beginning of last month, has emerged from Chapter 11. Under the plan, secured debt is restructured by converting it into equity while unsecured creditors are to be paid-in-full. Dattatraya Inc., Bay City, Mi., filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Michigan. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 09-23408. For more information contact the court at 877-422-3066. Dolce Vita Restaurant Inc., Sanibel, Fl., filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida. The firm listed assets and liabilities of between $1

million and $10 million each. The filing was under case number 09-21370. For more information contact the court at 866-879-1286. Doll & Doll Motor Company, Columbus, Ga., filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Georgia. The firm listed assets and liabilities of between $1 million and $100 million each. The filing was under case number 09-41138. For more information contact the court at 800-211-3015. Domin-8 Enterprise Solutions Inc., Mason, Oh., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Ohio. The firm listed assets and liabilities of between $1 million and $100 million each. The filing was under case number 09-35789. For more information contact the court at 800-726-1004. Earthwise Technologies Inc., Yelm, Wa., filed Chapter 11 in the U.S. Bankruptcy Court Western District of Washington. The firm listed assets of between $1 million and $10 million and liabilities of between $10 million and $50 million. The filing was under case number 09-46902. For more information contact the court at 888-409-4662. Energy Partners Ltd., the bankrupt New Orleans, La. oil and gas exploration firm, has seen the U.S. Bankruptcy Court confirm is Second Amended Joint Plan of Reorganization for it and certain of its subsidiaries. Equipment Finders of Tennessee Inc., Nashville, Tn., filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Tennessee, listing liabilities of between $10 million and $50 million. For more information contact the court at 615-736-5584. Fontainebleau Las Vegas, the bankrupt casino and resort development, is reportedly in talks to sell itself to Penn National Gaming Inc., a Wyomissing, Pa.-based operator of casinos and racetracks in the U.S. and Canada. The casino’s owners did say that they were in talks with an unidentified party but it has also been reported that Fontainebleau is negotiating with other suitors as well. It’s expected that even if a buyer assumed Fontainebleau’s $1.6 billion in debt it would also have to pump in another $1.5 billion to help complete the project. Freedom Communications Inc. asked for permission from the U.S. Bankruptcy Court to hire a broker to look into a possible sale of its East Valley Tribune newspaper in Arizona and several other of its publications in the area. Freedom, Irvine, Ca., recently worked out a deal with creditors to restructure $770 million in debt. When it filed Chapter 11, Freedom, with more than 100 publications and eight television stations, said it has enough cash to fund day-to-day operations. Gerryland Investments Inc., Stockton, Ca., filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of California. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 09-40289. For more information contact the court at 916-930-4400.

Great White Transportation LLC, Grand Prairie, Tx., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. The firm listed assets of between $1 million and $10 million and liabilities of between $50 million and $100 million. The filing was under case number 09-45788. For more information contact the court at 800-886-9008. Hayes Lemmerez International has seen the U.S. Bankruptcy Court approve its motion regarding bidding and auction procedures related to the sale of certain of its assets. A 10/21 auction date has been scheduled by the court. Huber Construction Company, Monticello, Mn., filed Chapter 11 in the U.S. Bankruptcy Court in Minnesota. The firm listed assets of less than $100,000 and liabilities of between $1 million and $10 million. The filing was under case number 09-46242. For more information contact the court at 800-959-9002. Indalex Holdings Finance Inc., the giant aluminum extruding firm which filed Chapter 11 last March along with four affiliated firms in the U.S. Bankruptcy Court in Delaware, has seen its unsecured creditors committee file a motion with the court to convert the case to a Chapter 7. For more information call the court at 302-252-2560. Irwin Financial has filed Chapter 7 in the U.S. Bankruptcy Court in the Southern District of Indiana. The case number is 09-13852. J & W Development LLC, Naples, Fl., filed Chapter 11 in the U.S. Bankruptcy Court for the Western District of North Carolina. The firm listed assets and liabilities of between $1 million and $10 million. The filing was under case number 09-20196. For more information contact the court at 800-884-9868. Kirk Corp., a 30-year-old Streamwood, Il. homebuilder, has seen the U.S. Bankruptcy Court reject the company’s reorganization plan, resulting in the firm having to liquidate its operations. Lakewatch LLC, Moneta, Va., filed Chapter 11 in the U.S. Bankruptcy Court for the Western District of Virginia. The firm listed assets and liabilities of between $10 million and $50 million each. The filing was under case number 09-72402. For more information contact the court at 888-409-4662. Lear Corp., the Southfield, Mi. maker of automotive components, filed its amended joint reorganization plan and disclosure statement with the U.S. Bankruptcy Court. The plan has the support of its unsecured creditors’ committee and prepetition credit lenders’ group. Leslie-Fox Inc., Lynnwood, Wa., filed Chapter 11 in the U.S. Bankruptcy Court for the Western District of Washington. The firm listed assets and liabilities of between $1

million and $10 million each. The filing was under case number 09-19700. For more information contact the court at 888-409-4662. Long Island Coping & Printing Corp., New Hyde, N.Y., filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of New York. The firm listed assets of less than $100,000 and liabilities of between $1 million and $10 million each. The filing was under case number 09-48148. For more information contact the court at 800-252-2537. Marina Dental Corporation, Marina Del Rey, Ca., filed Chapter 11 in the U.S. Bankruptcy Court for the Central District of California. The firm listed assets of less than $1 million and liabilities of between $1 million and $100 million. The filing was under case number 09-35107. For more information contact the court at 866–522-6053. Mark IV Industries Inc., the privately-held Amherst, N.Y. manufacturer of engineered systems and components for vehicles, transportation infrastructure and equipment which employs more than 4,000 workers in sixteen countries, has seen the U.S. Bankruptcy Court for the Southern District of New York confirm its plan of reorganization. Under the plan, the company expects to reduce it debt to nearly $400 million from $1.2 billion. Mark IV expects to emerge from bankruptcy before the end of October. Millennium Leather LLC, Teaneck, N.J., filed Chapter 11 in the U.S. Bankruptcy Court in New Jersey. The firm listed assets of less than $1 million and liabilities of between $1 million and $100 million. The filing was under case number 09-34534. For more information contact the court at 877-239-2547. Nutritional Sourcing, which earlier received confirmation for its joint liquidating plan, has now seen the Chapter 11 plan become effective. Pilgrim’s Pride Corp., the Pittsburg, Tx. poultry company, filed a joint reorganization plan and disclosure statement, along with six of its subsidiaries, calling for common shares to be purchased by a unit of JBS SA, a big Brazilian meat company, for $800 million in cash. For more information contact the U.S. Bankruptcy Court for the Northern District of Texas at 800-886-9008. Pinnacle Site Contractors LLC, Bourne, Ma., filed Chapter 11 in the U.S. Bankruptcy Court in Massachusetts. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $10 million. The filing was under case number 09-18973. For more information contact the court at 888-201-3572. Progressive Baptist Church Inc., Temple Hills, Md., filed Chapter 11 in the U.S. Bankruptcy Court in Maryland. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 09-27819. For more information contact the court at 800-829-0145.

Protostar Ltd. has seen the U.S. Bankruptcy Court in Delaware set 10/14 as the final date to file proof of claims. For more information on this case and its entities call the attorney for the debtor, Matthew Barr, at 212-530-5000. R.D.B. Trucking LLC, Hazard, Ky., filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Kentucky. The firm listed assets of less than $100,000 and liabilities of between $1 million and $100 million. The filing was under case number 09-61448. For more information contact the court at 800-998-8650. Rainbow Park Dairy Inc., Canon City, Co., filed Chapter 11 in the U.S. Bankruptcy Court in Colorado. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $10 million. The filing was under case number 09-29684. For more information contact the court at 720-904-7419. School Street District LLC, Palatine, Il., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Illinois. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 09-34897. For more information contact the court at 888-232-6814. Seamans Investments LLC, Chandler, Az., filed Chapter 11 in the U.S. Bankruptcy Court in Arizona. The firm listed assets of less than $1 million and liabilities of between $1 million and $100 million each. The filing was under case number 09-23046. For more information contact the court at 800-556-9230. Selah Investment Group Inc., a Tucson, Az. operator of seven Midas franchises which is saddled with nearly $2.5 million in debt tied to franchise fees and which has seen sales decline more than 20%, has filed for Chapter 11 protection. SemGroup said that it reached an agreement in principle with its producers’ committee on terms of a reorganization plan. A hearing is set for 9/24. Silicon Graphics Inc. filed its joint reorganization plan and disclosure statement with the U.S. Bankruptcy Court. Star Tribune Holdings Corp., the publisher of Minneapolis, Mn.’s Star Tribune newspaper, received approval from the U.S. Bankruptcy Court for its reorganization plan. The plan, backed by creditors, calls for senior lenders to take control of the publisher. The creditors, including Credit Suisse Group, will get most of the reorganized firm’s shares and a $100 million secured note and will receive between about 30% and 37% of their $392 million in claims. The newspaper company, which listed assets and liabilities of $493 million and $661 million in its July bankruptcy filing, could emerge from Chapter 11 by the end of the month. T2 Realty LLC, Johnson City, N.Y., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of New York. The firm listed assets and liabilities of between $1

million and $100 million each. The filing was under case number 09-62620. For more information contact the court at 800-206-1952. TCS Systems Inc., Louisville, Tn., filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Tennessee. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 09-35230. For more information contact the court at 800-767-1512. United Science Industries Inc., Vernon, Il., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Illinois. The firm listed assets of less than $100,000 and liabilities of between $10 million and $50 million. The filing was under case number 09-41563. For more information contact the court at 800-726-5622. Young Broadcasting Capital Corp., New York, N.Y., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets of between $100 million and $500 million and liabilities of between $1 million and $100 million each. The filing was under case number 09-15606. For more information contact the court at 866-232-1268.

COMPUTERS / ELECTRONICS

American Semiconductor Corp. of Devens, Ma. is expanding overseas. The company has opened a subsidiary, AMSC Korea, in South Korea as part of its efforts to increase its exposure in the Korean energy market. Analysts International Corp., an Edina, Mn. information-technology company, got a warning from Nasdaq that its stock could be delisted because of failing to maintain listing requirements. The company now has until March 15 to regain compliance. Benchmark Electronics Inc., Angleton, Tx., will shut down a facility in Beaverton, Or. by the end of the year, which will result in the loss of all 183 jobs at the site. In fiscal 2008, Benchmark lost $136 million on revenue of $2.6 billion. Buffalo Niagara Enterprise in New York could face reduced funding from the Amherst Industrial Development Agency as a result of the weak economy. EF Johnson Technologies Inc., Irving, Tx., was warned by the Nasdaq Stock Market that its common shares have fallen below minimum listing requirements and that it has until next March to regain compliance. Electro Scientific Industries, a maker of laser systems for electronics manufacturers, extended a salary-reduction initiative for its executives as it tries to improve results. In

its first quarter, Electro Scientific lost $5.5 million, twice its loss in the year-earlier period, on a 65% slide in revenue–to $22.6 million. GSI Group Inc., a Bedford, Ma. developer of laser technologies, has received another delisting notice from Nasdaq for failing to meet its $1 per share minimum stock price for at least thirty days. This is the company’s third such notice this year. Intel Corp., the giant Santa Clara, Ca. chip maker, has seen the European Union Commission state it has evidence that supports its claim that the California firm offered special deals to keep customers from doing business with its competitor, Advanced Micro Devices Inc. The EU is trying to justify its $1.4 billion antitrust fine against Intel, which states the EU’s case relies on speculation and ignores certain evidence. Interactive Supercomputing Inc., a Waltham, Ma. maker of high-performance computing systems, has been purchased by Microsoft Inc. for an undisclosed amount. Microsoft expects to integrate ISC into its New England Research & Development facility in Cambridge, Ma. Intest Corp., a Cherry Hill, N.J. company that supplies semiconductor test equipment, was warned by the Nasdaq Stock Market that its shares have fallen below minimum listing requirements and that it has 180 days to regain compliance. Palm Inc., despite recent success in launching a new Pre smartphone, reported a widened first quarter loss of $165 million, four times its loss in the year-earlier period. Not including extra items, Palm lost $13.6 million. Revenue slumped to $68 million, down from $367 million in the year-earlier period, but when deferred revenue is accounted for the recent revenue figure came in at $361 million. Also, Palm lowered sales projections for the current quarter to no more than $270 million, below what Wall Street had expected. The dampened projections raised some doubts about whether the Sunnyvale, Ca. smartphone manufacturer will be able to maintain sales momentum for its new products. Perot Systems Corp., which is being sought by Dell Inc. in a $3.9 billion deal, has seen Pennsylvania attorney, Howard Smith, initiate an investigation into Perot’s board of directors over possible breach of the board’s fiduciary responsibilities. For more information call 215-638-4847. Progress Software Corp. of Bedford, Ma. reported its third quarter earnings declined 55%–to $5.5 million, on a nearly 6% revenue decline–to $119 million. The company now expects earnings for the year to reach no more than $1.74 per share, down from the $1.81 it previously reported. Fiscal revenue is expected to be no more than $490 million. It should be noted that operating margins declined from 14% to 7.5% as a result of acquisition expenses and higher overhead costs.

Red Hat Inc., the Raleigh, N.C. firm which is one of the world’s leading open source technology solutions providers, reported third quarter net income of $29 million, up from income of $21 million for the same period one year earlier. Revenue increased to $184 million from $164 million in the year-earlier period. Sun Microsystems Inc., which is being sought by Oracle Corp. In a $7 billion deal, has seen Oracle’s CEO state that Sun is losing $100 million monthly. The disclosure was made as Oracle expresses its concern with what it perceives as delays by European regulators over approving its purchase of Sun.

RETAILERS, RESTAURANTS, MANUFACTURERS OF

CONSUMER PRODUCTS Anheuser-Busch InBev may have a buyer for its theme parks. The world’s largest brewer has been looking to unload its parks, operated under its Busch Entertainment unit, in order to reduce the $45 billion in debt it accumulated when Anheuser-Busch and InBev merged last year in a $52 billion deal. Now, the New York investment firm, BlackStone Group LP, is looking into the possibility of taking the parks off the brewer’s hands. The theme parks, which include SeaWorld and Busch Gardens, could bring in more than $4 billion from a sale. Bakers Footwear Group Inc., after failing to maintain minimum listing requirements for the Nasdaq Global Market, must now switch its shares to be traded on the Nasdaq Capital Market. In its second quarter, Bakers lost $1.7 million on sales of $43.7 million. Comstock Homebuilding Cos. Inc., Reston, Va., worked out a deal with Guggenheim Corporate Funding LLC that amends an existing forbearance agreement related to a project in Fairfax, Va. The financing deal should improve Comstock’s cash flow so it can use money for working capital. ConAgra Foods Inc., the Omaha, Ne. firm which recently increased its fiscal earnings forecast to nearly $1.70 per share–up from previously projected earnings of no more than $1.66, reported its first quarter operating profit jumped more than 20%–to $391 million. Dress Barn Inc.’s shares slid more than 5% in recent trading after the Suffern, N.Y. women's apparel retailer projected earnings that fell short of projections on Wall Street. Fisker Automotive Inc., an Irvine, Ca. hybrid car manufacturer, has received more than $525 million in loans from the Department of Energy. The monies will be used to

complete the development of its plug-in hybrid vehicle, Karma, as well as for developing its next generation of plug-in vehicles. General Motors Co., wanting to operate as efficiently as possible, is redistributing its production. Naming the Fairfax Assembly plant in Kansas City as the exclusive producer of its Malibu vehicle, GM is already adding a third shift to the KC facility. GM’s Orion, Mi. plant, which previously built the Malibu, is retooling to produce smaller vehicles for the 2011 selling season. General Mills Inc., the Minneapolis, Mn. consumer foods manufacturer, increased the earnings forecast for its fiscal year as net income for its first quarter increased to $420 million from $278 million for the same period one year earlier. Revenue increased slightly–to $3.5 billion. The company now forecasts as much as $4.45 per share for its fiscal year. Glazer’s Distributors, the 100-year-old Dallas, Tx. wine and spirits firm which has been attempting to merge with Southern Wine & Spirits of America Inc. for the last year, has terminated those efforts stating the transaction had become to complex. Hanesbrands Inc.’s shares shot up 7.5% in recent trading after the Winston-Salem, N.C. textile maker announced that it will no longer manufacture its own yarn and will instead outsource yarn production. Hanesbrands will also trim its payroll by 175 jobs, including 150 workers at a facility it’s closing in Sanford, N.C. Most of the yarn business will be sold to Parkdale Mills Inc. of Gastonia, N.C., which will supply most of Hanesbrands’ yarns in the Western Hemisphere. The realignment could add $100 million to Hanesbrands’ balance sheet within six months of a sale, which is expected to close in the fourth quarter. Harry & David Holdings Inc., a privately-held Medford, Or. fruit and gift retailer, reported a fourth quarter loss of $16.5 million on revenue of $54.4 million, down from $57.3 million in the year-earlier quarter. For the full year, ended in June, the firm lost $20 million, down from a profit of $4.3 million a year ago. Fiscal store sales slid almost 9%–to $490 million, while same-store sales fell almost 11%. Also, Harry & David said that its cash and equivalents sank to $15.4 million, down from $55.8 million a year ago, although it still has a $124 million credit line and it remains in compliance with its debt covenants. Herman Miller Inc.’s shares skidded almost 9% in recent trading after the Zeeland, Mi. manufacturer of office furniture reported that profit in its recent quarter plunged 75% on a drop in sales. H.J. Heinz Co., the Pittsburgh, Pa. food company, wrapped up the sale of its Kabobs hors d’oeuvres operations, resulting in a pretax loss of $15 million for discontinued operations.

Kohl’s Department Stores continues its expansion efforts. The Wisconsin retailer, which operates 1,060 stores nationwide and which has opened 56 stores so far this year, is opening 37 outlets, in six states, in a 9/30 grand opening. The new outlets are expected to create more than 5,100 jobs. Lennar Corp., the Miami, Fl. homebuilder, reported a widened third quarter loss of $172 million, nearly double its loss in the year-earlier period. The recent results included extra writedowns and tax adjustments. Revenue slumped 35%–to $721 million. While customer orders are still down from a year ago, orders have increased in recent months. Lowe’s Cos., the giant home improvement retail chain, is scaling back its number of store openings through 2014 to no more than 45 stores annually–a significant cutback from the 120 stores opened last year. The company’s five year plan assumes annual sales increases averaging at least 4% MarineMax Inc., the Clearwater, Fl. boat retailer which operates 62 dealerships nationwide, closed on its $2.7 million sale of common stock--proceeds of which will be used for general corporate purposes, including possibly reducing its debt exposure. Mattel Inc., the El Segundo, Ca. maker of toys, will trim upwards of eighty positions from its payroll, including twenty at its Fisher-Price business in East Aurora, N.Y. Last fall Mattel trimmed seventy Fisher-Price jobs. Men's Wearhouse Inc., a Houston, Tx. retailer of men's apparel, will shut down a distribution center in West Chester, Pa. in November, which will result in the loss of more than 100 jobs. Neff Motivation, a Greenville, Oh. custom maker of jackets, ribbons, medals and other products, plans to close a facility in Marysville, Oh. by yearend. The move will result in the loss of almost ninety jobs. Penske Automotive Group, which is close to purchasing GM’s Saturn brand and its more than 335 dealerships, has now seen its Penske Logistics unit lay off three hundred employees at its facility in Spring Hill, Tn. Pier 1 Imports Inc., the Fort Worth, Tx.-based specialty retailer of household goods, reported a narrowed second quarter net loss of $16 million, down from a $30 million net loss in the year-earlier period. Revenue slumped 10%–to $287 million, including a 7.6% slide in same-store sales. Ricciardi’s Deli and Italian Imports in Schenectady, N.Y., which recently closed its doors, could possibly open soon under a new owner.

Roth Carpet & Floors in North Hills, Pa. will shut down operations after more than seven decades in business and liquidate its inventory. Sally Beauty Supply Holdings Inc., the Denton, Tx. firm which reported earnings of $32 million in its most recent quarter on sales of $673 million, is expanding its operations. The company is entering the Puerto Rican market by purchasing beauty products distributor Belleza Concept International Inc. for an undisclosed amount. It should be noted that Sally Beauty paid down $30 million in long-term debt during its most recent quarter. Scholastic Corp., the New York publisher, reported its first quarter loss narrowed to $23 million from a loss of $49 million for the same period one year earlier. Revenue increased 14%–to $316 million. Educational publishing revenue increased 29% while revenue at its children’s book unit increased 25%. Smashburger Master LLC, the Denver, Co. hamburger chain, continues its expansion efforts. A new agreement with Dallas, Tx. based franchise company, PhaseNext Hospitality, will result in Smashburger restaurants being opened in a number of U.S. airports. Sonic Automotive Inc., a Charlotte, N.C.-based chain of auto dealerships, hopes to net about $240 million from a public offering of common shares as well as convertible senior notes. Proceeds of the offering will be used to repay debt. Troy Food & Beverage Inc., the Troy, N.Y. restaurant chain that owes back taxes to the state and which has seen revenues decline nearly 25% at some of its restaurants, has closed its outlets.

INDUSTRIAL MANUFACTURERS, NATURAL RESOURCES

AND ENERGY FIRMS American Axle & Manufacturing Holdings Inc., the Detroit, Mi.-based maker of auto parts, arranged $210 million in financial support from General Motors Co., its chief customer, as well as a separate deal with some banks that could keep it out of bankruptcy court. The money from GM includes $110 million in payments related to costs connected to GM’s bankruptcy reorganization in the spring as well as a $100 million loan. American Axle also renegotiated a term loan and credit facility with its banks, including J.P. Morgan Chase & Co. of Manhattan, N.Y. and Bank of America Corp. of Charlotte, N.C. The car-parts maker also projected a consolidated profit for the third quarter on sales of $400 million.

ATP Oil & Gas Corp., the Houston, Tx. firm which is in the midst of a debt reduction program and which is selling more than 5 million shares of stock to the public, is also selling a pipeline operation in the Gulf of Mexico to an affiliate of ArcLight Capital Partners of Boston, Ma. in a transaction valued at $78 million. BioFuel Energy Corp, a Denver, Co. refiner of corn ethanol, got a warning from Nasdaq that its stock could be delisted because of failing to maintain listing requirements. The company now has 180 days to regain compliance. Buckhorn Inc., a unit of Myers Industries Inc. of Akron, Oh., is closing its Shelbyville, Ky. plant by 12/31, affecting nearly 90 jobs. The move is part of Myers’ efforts to consolidate production facilities and reduce operating costs. Caterpillar, the 80-year-old heavy equipment manufacturer, saw its share price decline nearly 2% after reporting global machinery sales through retailers declined 48% for the three months ended in August, compared with the same period one year earlier. Chevron Corp., the San Ramon, Ca. energy firm which is a defendant in a multibillion dollar lawsuit in Ecuador, is suing the Ecuadorian government under international trade law. The suit, which is basically a request for arbitration through a process established by the United Nations, is a result of what Chevron feels could be an adverse ruling by the Ecuadorian court. Chevron believes there is real evidence to suggest a possible bribery scheme involving the judge overseeing the case. Clarcor Inc., a Franklin, Tn. maker of air filtration systems for vehicles and planes, reported its earnings for the third quarter fell more than 17%–to $21.3 million. Revenue declined almost 17%–to $230 million. Delta Petroleum Corp., the Denver, Co. oil and gas exploration firm which earlier in the year reduced it workforce, saw its stock price decline 45% after reporting that six of its test wells in Washington has, so far, flowed only water. Goodrich Petroleum saw its shares decline 6% as the Houston, Tx. firm reported it would sell $150 million in senior notes. Headwaters Inc.’s shares tumbled 11% in recent trading after the South Jordan, Ut.-based energy and construction supplier announced it will sell nearly ten million shares at a significant discount in conjunction with a plan to repay some loans. Integrys Energy Group Inc., Chicago, Il., wrapped up the sale of its natural-gas and electric-power-contract portfolio in Canada to a Canadian unit of Shell Energy North America Inc. in a streamlining move that will reduce its capital requirements. Integrys, whose operations include Wisconsin Public Power Corp., also sold off a natural-gas-storage contract to a unit of TransCanada Corp.

ITW Shippers Products in Mount Pleasant, Tn. has laid off 59 jobs as part of its efforts to reduce costs. Jerrick Inc., a Tempe, Az. designer and maker of filter connectors for the military and aerospace markets, has been acquired by Carlisle Cos. Inc., the Charlotte, N.C. manufacturer of roofing materials, aerospace gear, power-transmission equipment and other products, for an undisclosed amount. Jerrick has annual sales of $20 million. Lousiana-Pacific Corp., the Nashville, Tn. manufacturer of engineered wood building materials, is making a public offering of 18 million shares of common stock. The proceeds will be used to reduce certain senior notes and for general corporate purposes. Mueller Water Products Inc., the Atlanta, Ga. manufacturer of flow control products for water treatment facilities, has closed on a stock sale that netted the firm $166 million. Proceeds will be used to repay debt under its credit agreement. Oclaro Inc., a San Jose, Ca. provider of optical components and subsystems, raised its first quarter revenue projections to between $82 million and $87 million. The company previously projected a revenue in the range of $76 million to $84 million. Petrohawk Energy Corp., Houston, Tx., is selling its assets in the Permian Basin area of Texas and New Mexico to an unnamed buyer for $376 million. The deal will allow Petrohawk to strengthen development in other areas. SoBran Inc., a Dayton, Oh. defense contractor, won a multimillion-dollar contract to provide biomedical research for the Walter Reed Army Institute of Research/Naval Medical Research Center. SoBran last year reported revenue of $54 million. Solar Energy Initiatives Co., a Ponte Vedra Beach, Fl. firm that helps municipalities build solar parks, is continuing to expand. Already with contracts valued at more than $800 million, the company recently was awarded another contract to sell solar energy in the Northeast. Texas Industries Inc., the Houston, Tx. cement firm, reported first quarter earnings of $1.7 million, down from $10.7 million for the same period one year earlier. Revenue declined 29%–to $184 million. Wausau Paper Corp., a Mosinee, Wi. paper maker, will consolidate its specialty-products operations with its printing and writing unit into a single business, as of early next year.

SERVICES

FIRMS Abigail Adams National Bancorp, Washington, D.C., expects to be acquired by Premier Financial of Huntington, W.V. by the end of this month. Advanta Corp., a Philadelphia, Pa.-based provider of business credit-card services, was warned by Nasdaq about its low stock price. Aiful Corp., Japan’s third largest consumer lending institution which expects to report a fiscal loss as a result of more than $2.6 billion in write-downs, also expects to reduce its payroll by nearly 2,000 employees, more than 40% of its workforce. The write-down is a result of refunding excessive interest payments to borrowers. Airbus, the plane-making unit of European Aeronautic Defence & Space Co., warned that it may have to trim production next year amid pressure on its finances and the tight credit markets. Despite some optimism that the sagging airline sector may soon be bottoming out, air traffic continues declining, with one trade group saying that the world’s carriers could lost $11 billion this year and another $4 billion next year, which will likely continue pinching business for aircraft manufacturers like Airbus. Alter Group, a Chicago, Il. real-estate development company, is making an undisclosed investment in The New Republic, the Beltway political magazine. AltiGen Communications Inc., a San Jose, Ca. provider of Microsoft-based Voice over Internet Protocol systems, got a warning from Nasdaq that its stock could be delisted because of failing to maintain listing requirements. The company now has until March 14 to boost its stock price and regain compliance. Ambassadors International Inc., which is moving its headquarters from Seattle, Wa. to California, is selling its Queen of the West paddleboat to Blue Spruce LLC, an affiliate of American Cruise Lines, for an undisclosed amount. America’s Capital Partners in Miami, Fl. sold a real-estate portfolio of twenty-two buildings to Eola Capital Inc., a privately-held Orlando firm, for about $1.1 billion. AMR Corp., the parent of American Airlines which less than two weeks ago obtained $2.9 billion in financing, reported it expects to raise funds by selling $250 million in convertible notes and more than 28 million shares. The company, which reported its second quarter revenue declined more than 20%, is rumored to be interested in purchasing a stake in Japan Airlines Corp. Arlington Development Center in Memphis, Tn., which laid off more than forty workers last year and which has been the focus of a class action lawsuit, has laid off its remaining fifty five employees.

Atlantic American Corp., an insurance holding company in Atlanta, Ga., got a warning from Nasdaq that its stock could be delisted because of failing to maintain listing requirements. The company now has until next March 15 to regain compliance. Bank of America Corp., Charlotte, N.C., announced plans to shut down a check-processing facility in St. Louis, Mo., resulting in the loss of more than fifty jobs. Blockbuster Inc., the Dallas, Tx.-based chain of video-rental stores, will offer $675 million in senior secured notes, planning to use proceeds to pay off its debt. Blockbuster lost nearly $40 million in its second quarter, although that was an improvement over a $45 million loss a year ago. Boston Private Financial Holdings Inc. sold off its Gibraltar Private Bank unit in Coral Gables, Fl. to an investment group that includes Gibraltar’s founder. The $93 million sale gets rid of $50 million of Boston Private’s nonperforming assets and removes more than $90 million in problem loans. Boston Private acquired Gibraltar, which has been losing money, four years ago for $245 million. BV Financial Inc., the parent company of Vanguard Federal Savings Bank in Florida, announced plans to remove its stock from trading and go private. Carlyle Group, the U.S.-based private-equity firm, bought up a more than 17% interest in Yashili Group Co., a big Chinese maker of baby formula, for an undisclosed amount. Citigroup Inc., the New York banking giant, expects to present details of a plan to its board next month that will narrow the focus of its branch network in the U.S. to six metropolitan areas, effectively retreating from its previous expansion position. Community Valley Bancorp, Chico, Ca., will cease trading its shares on the Nasdaq exchange and now hopes to be quoted Over The Counter. Community Valley is the parent company of Butte Community Bank. Cowlitz Bancorp., which operates the Cowlitz Bank and Bay Bank in Longview, Wa., has received a notice from Nasdaq that it has not maintained the minimum market value and has until mid-December to regain compliance. The minimum market value is $5 million. CSD Architects, the 62-year-old Baltimore, Md. firm which has been adversely affected by the decline in the commercial real estate market, is closing its doors. CUNA Mutual Group, a Madison, Wi. provider of financial services for cooperatives, credit unions and other companies, is selling the majority interest that it holds in its Cumis Group Ltd. affiliate to Canadian-based Co-operators Life Insurance Co. and Central 1 Credit Union for an undisclosed amount.

Dell Inc., the Austin, Tx. computer firm which is purchasing Perot Systems Corp., has seen Credit Suisse, a credit ratings agency, downgrade Dell to “neutral” from “outperform”, citing uncertainty about Dell’s ability to integrate Perot’s assets into its own. Diego Inc., the Kirkland, Wa. video networking firm, is being purchased by Arris Group Inc. in a transaction valued at $20 million. Diego is owned by Paul Allen, co-founder of Microsoft Corp. Dow Jones & Co. plans to close its 62-year-old, money-losing Far Eastern Review publication. Dow Jones is owned by News Corp., the publisher of the Wall Street Journal. EBay Inc., San Jose, Ca., was fined $118,000 in France, with possible future fines, after it was found liable for selling counterfeit goods through its online marketplace. Enhance Network Communication Inc., a Cupertino, Ca. enterprise security-technology firm, is in an agreement to be purchased by NuMobile Inc. of Cary, N.C. in a swap for $5 million in debt. Facebook, the social media giant whose Beacon marketing program has been the subject of much controversy over the past two years regarding invasion of privacy issues, is closing down the Beacon program. The move is part of a nearly $10 million settlement in a lawsuit filed over the program. A California judge must still approve the terms of the settlement. FedEx Corp., the Memphis, Tn. package-delivery giant, expressed some hope for improved results based on its appraisal that the economy is beginning to stop its downward slide. However, the company warned that near-term results will continue dragging behind last year’s numbers, saying that the current quarter’s profit growth per share could be down as much as 60% from the year-ago period. FedEx recently reported a 53% slide in earnings–to $181 million, on a 20% drop in revenue–to just over $8 billion. FelCor Lodging Trust Inc., Irving, Tx., announced that its FelCor Limited Partnership unit wants to offer senior notes to raise proceeds of as much as $530 million. First State Bank in Red Bud, Il. is reportedly being acquired by First National Bank of Waterloo, Il. for an undisclosed amount. The deal could close in next year’s first quarter. First Niagara Financial Corp., the Buffalo, N.Y. firm which is purchasing Harleysville National Group after the first of the year for $236 million, is selling $400 million in common stock in a public offering, as part of its efforts to further improve its capital

position. Once the Harleysville purchase is completed, First Niagara will have $20 billion in assets. Fladmark Publishing Co., Duluth, Mn., has sold its Cabin Life magazine to Kalmbach Publishing Co. of Waukesha, Wi. for an undisclosed amount. Florentine Opera Co. in Milwaukee, Wi. announced that it ended fiscal 2009 with an internal net loss of more than $100,000, although its endowment has increased recently and it has no long-term debt. Free & Clear Inc., the Seattle, Wa. provider of support systems to government and health agencies, is being sought by Inverness Medical Innovations Inc. of Waltham, Ma. in a transaction valued at $130 million. Gaylord Entertainment Co., the Nashville, Tn. hotel firm, reported it plans to make a public offering of 5 million shares of common stock, using much of the proceeds to purchase or redeem nearly $260 million in certain senior notes. Goldman Sachs Group Inc., Manhattan, N.Y., announced that one of its private-equity funds will invest $250 million in Geely Automobile Holdings Ltd., a Chinese car manufacturer. Geely Automobile, an arm of Geely Holding Group in Hong Kong, could use the money for working capital, which could free up some cash for Geely Holding to make a buyout bid for the Volvo unit of Ford Motor Co. HSW International Inc., Atlanta, Ga., got a warning from Nasdaq that its stock could be delisted because of failing to maintain listing requirements. The company now has until 3/15 regain compliance. Iridium Holding LLC, the Bethesda, Md. mobile communications firm which operates sixty six in-orbit satellites and which is being sought by GHL Acquisition Corp., has seen the latter firms’ shareholders vote to approve the purchase. The transaction is expected to be completed by the end of this month. Irwin Financial Corp.’s Irwin Union Bank FSB in Louisville, Ky. and Irwin Union Bank and Trust Co. in Columbus, In. were shut down by state and federal banking regulators. The Federal Deposit Insurance Corp. was named receiver, with First Financial Bank in Hamilton, Oh. assuming all of the two banks’ deposits. Irwin Financial is headquartered in Columbus, Oh. J.P. Morgan Chase & Co., Manhattan, N.Y., is cutting forty-three jobs at its Treasury and Securities Services operations in Milwaukee, Wi., in conjunction with a relocation of that business. Separately, under a consent order with Missouri’s Secretary of State, the banking firm has returned more than $26 million in frozen auction-rate securities to investors in that state.

Kforce Inc., a Tampa, Fl. staffing firm, has reduced its exposure with lender CIT Group as a result of there being a “significant concern about the financial viability...” of the lender. Effective 9/16, CIT assigned $20 million of its obligations, under a credit facility that is part of an October 2, 2006 credit agreement with a syndicate of banks, to Wachovia Bank, which is also a lender in the credit facility. CIT Group still holds $15 million. It should be noted that there were no changes made to Kforce’s credit agreement and the company incurred no fees as a result of the assignment. Laika Inc., a Portland, Or. animation studio that’s owned by footwear maker Nike Inc., is cutting sixty jobs from its payroll, or about 25% of its workforce, in a restructuring move. Lake Forest Hospital in Lake Forest, Il. is being purchased by the parent company of Northwestern Memorial Hospital in Chicago for an undisclosed amount. Northwestern Memorial HealthCare is one of the wealthiest hospital systems in the nation, with more than $1 billion in cash. Macerich Co., the Santa Monica, Ca. firm which develops, manages and redevelops malls across the U.S., has used $270 million from joint-venture sales as well as operating cash to pay off more than $440 million in notes that come due next year. The company still has $30 million in debt that is set to mature this year. Marriott International Inc., the Bethesda, Md. hotel chain, announced it will cease developing new timeshare projects as part of its efforts to improve its cash flow position. The company expects to take more than $750 million in write-downs as a result. Metavante Technologies Inc., a Brown Deer, Wi. provider of banking and payment technology, has seen the bankruptcy court in New York rule that the company must continue to pay on a contract with Lehman Brothers Special Financial Inc. The dispute involves a Lehman Brothers interest rate swap agreement that Metavante allegedly did not choose to terminate when Lehman filed bankruptcy nearly a year ago. MGM Mirage’s shares surged more than 7% after the Las Vegas, Nv. casino company announced a $350 million private placement of notes, hoping to use proceeds to pay back certain borrowings under its credit lines. New York Times Co., which has been attempting to improve its financial position, has seen Harbinger Capital Partners, which has held a 20% stake in the firm, sell off nearly 4% of its holdings. Times Co. recently agreed to a $250 million loan from Mexican billionaire Carlos Slim as part of those efforts to shore up its financial position. Perot Systems Corp., the Plano, Tx. information-technology company, is in an agreement to be purchased by Dell Inc., the Round Rock, Tx. computer firm, for $3.9 billion in cash. While the acquisition gives Dell a services arm much smaller than some competitors’ IT businesses, it does propel Dell beyond its core PC operations.

Point.360, a Burbank, Ca. company that provides media management services, reported a fourth quarter loss of $12 million, mostly because of $10 million in impairment charges. Revenue declined slightly–to just under $11 million. Pointe Capital Inc., Boca Raton, Fl., has been acquired by Gunn Allen Holdings Inc. of Tampa for an undisclosed amount. Post Properties Inc., the Atlanta, Ga. real estate firm, hopes to raise $42 million through the sale of nearly 3 million shares of common stock. The proceeds will be used to repay $39 million in existing mortgage debt and another $4 million in penalties related to its mortgage debt. ProLogis, the Denver, Co. real estate firm which focuses on owning and managing industrial properties in both North American and overseas, has obtained nearly $200 million in loans that it used to reduce its European debtload. QVC, the West Chester, Pa. shopping network owned by Liberty Media Corp., now anticipates selling $1 billion in notes. This is double what the company previously announced offering. Proceeds from the sale will be used to pay off debts. Reed Elsevier Group PLC, the big London, England-based publisher, plans to start charging subscription fees for Web content that had been free at its Variety trade magazine that covers Hollywood. San Francisco Chronicle announced that another five editorial staffers are being laid off, in the latest of a series of job reductions at the newspaper. Selectica Inc., a San Jose, Ca. provider of contract lifecycle management and sales configuration services, got a warning from Nasdaq that its stock could be delisted because of failing to maintain listing requirements. The company now has until March 15 to boost its stock price and regain compliance. UCBH Holdings Inc., the parent of United Commercial Bank in San Francisco, Ca., is being sued by shareholders for allegedly concealing millions in charge-offs and bad debt. US Airways Group Inc. saw its share price decline 14% as the Tempe, Az. airline announced it would sell 26 million shares of its common stock to Citigroup Inc.–increasing its outstanding shares by at least 20% Vail Resorts Inc., Broomfield, Co., reported a fourth quarter loss of $38 million, an increase from the $11 million loss the company reported for the same period one year earlier. Revenue declined more than 60%, as real estate sales declined by nearly 90%, to $102 million.

Vatterott Educational Centers Inc., the St. Louis, Mo. unit of Wellspring Capital Management which is one of the largest privately-held, post-secondary educational companies in the nation, is being purchased by TA Associates, a Boston, Ma. private equity firm, for an undisclosed amount. Versar Inc., the Springfield, Va. firm which provides firms and government agencies with defense, environmental and infrastructure revitalization services, reported its fiscal earnings declined slightly–to $3.2 million, on a 3% sales decline–to $112 million. The company’s operating income increased slightly–to $5.6 million. Versik Analytics Inc., the Jersey City, N.J. insurance-risk firm which is owned by a group of insurers including AIG and Hartford Financial Services, hopes to raise nearly $1.8 billion in what would be the largest IPO so far this year. Washington Federal Inc., a Seattle, Wa. thrift, hopes to raise about $330 million in net proceeds through a stock offering. Woolbright Development, a manager of shopping centers in Florida, is laying off more than two dozen workers, or 26% of the staff at its Boca Raton headquarters and another office in Orlando. Wynn Macau Ltd., the Macau, China unit of casino company Wynn Resorts Ltd. of Las Vegas, Nv., reported its net profit for the first six months sank 33%–to $117 million. Wynn Resorts recently said it wants to sell a 25% interest in its Macau unit.

HEALTHCARE COMPANIES

Altus Pharmaceuticals Inc. in Boston, Ma. is being delisted from the Nasdaq Stock Market for failing to meet minimum listing requirements. Altus earlier said it would wind down its business, and since its shares will then be associated with a shell company without any operations, Nasdaq can still delist Altus’s shares even if the company regains compliance by next March. BioCryst Pharmaceuticals Inc., Birmingham, Al., will get another $77 million from the United States government to finish up late development of its preamivir flu treatment. GTC Biotherapeutics Inc., a Framingham, Ma. company that develops drugs from animal proteins, received a delisting notice, its third, from the Nasdaq Stock Market because of failing to maintain minimum listing requirements.

Memorial Hermann Southwest Hospital’s suitor, Harris County Hospital District, pulled its letter of intent to acquire the Houston, Tx. company, saying that the deal can’t proceed under currently specified conditions. Norton Healthcare Inc. is ending its remaining business ties with Anthem Blue Cross and Blue Shield in Kentucky, blaming administrative problems and low reimbursement rates. Omeros Corp., a Seattle, Wa. biopharmaceuticals firm, said that it wants to file an initial public offering, hoping to raise as much as $81 million. Omeros specializes in inflammation and central-nervous-system treatments. Pharmacyclics Inc., Sunnyvale, Ca., reported a widened fourth quarter loss of $5.4 million, compared to a $4.6 million loss in the year-earlier period, including extra charges. The firm, which currently holds no long-term debt, sits on about $35 million in cash and equivalents. Rigel Pharmaceuticals Inc., South San Francisco, Ca., priced a public offering of shares that will gross more than $94 million. Scolr Pharma Inc., a Bothell, Wa. pharmaceuticals firm, received notice from the New York Stock Exchange that puts its viability as a company into question because of large ongoing losses. In its second quarter Scolr, which has failed to meet certain stock-listing standards, lost $1.6 million. St. Mary’s Hospital in Leonardtown, Md. has been purchased by MedStar Health of Columbia, Md. for an undisclosed amount. ThermoGenesis Corp., the Rancho Cordova, Ca. firm which reported a fiscal net loss of $8.6 million, an improvement over its $9 million loss the previous year, has received a delisting notice from Nasdaq. The company has until next March to bring its stock price up to the $1 minimum requirement.

CREDITORS' RIGHTS LAST WEEK'S QUESTION: Discuss the “ordinary course of business” defense as it relates to a preference payment in a bankruptcy proceeding. ANSWER: The “ordinary course of business” defense is one many credit professionals often forget to make use of when they receive a letter from a bankruptcy trustee asking them to repay, what the trustee sees as, a preference payment. Preference payments are just that. Payments to a creditor, by a debtor, that is made “not in the ordinary course of doing business”. If you have been providing a debtor the same product/service and under the same terms for some time, and you receive payment for that product/ service 90 days before your debtor files for bankruptcy–remember to use

the “ordinary course of business” defense when rejecting the trustee’s request for repayment. To make use of our consulting services regarding this, or any topic that relates to your debtors, call 847-491-1900 or email stephen@usbj.biz. THIS WEEK'S QUESTION: Discuss the fiduciary duties of a board of directors in the context of a hostile takeover attempt. ANSWER NEXT ISSUE

Special Section On Rapidly Expanding Companies

A.O. Smith Corp., a Milwaukee, Wi. maker of water equipment, is expanding with an agreement to acquire a majority stake in Hong Kong, China-based Tianlong Holding Co. Ltd.’s water-treatment operations. The $77 million deal will give A.O. Smith an 80% stake in a new company that will hold the Tianlong water-equipment assets. AMR Corp.’s shares surged 20% in recent trading on news that the company arranged for $2.9 billion in financing in a move that allays its immediate money worries. Despite predictions that industrywide revenue will sink 15% this year from 2008, AMR, the Texas-based parent company of American Airlines, said that it hopes to increase capacity next year on hopes that the airline sector will improve. The carrier’s financing calls for selling some planes and selling frequent-flier miles to Citigroup Inc. Separately, AMR is trying to woo Japan Airlines Corp. into its marketing alliance to improve its worldwide position, although it will have to battle with competitors such as Delta Air Lines Inc. which are also trying to attract Japan Airlines to their alliances. Anadarko Petroleum Corp.’s shares soared in recent trading after the Texas-based oil company announced a deepwater oil discovery off the coast of Africa. Banco Santander SA, the big Spanish-based bank, announced plans to raise about $7.3 billion through an initial offering of its unit in Brazil. The company will spend most of the proceeds to build 600 branches in Brazil over the next several years. Boscov’s, the Reading, Pa.-based department-store company, emerged from bankruptcy protection after just over a year of reorganizing. The company recently won approval from the U.S. Bankruptcy Court for a plan that calls for its assets to be transferred to a trust to pay off creditors. Boscov’s, which was earlier purchased by the Lakin and Boscov families for more than $275 million, closed ten stores when it filed Chapter 11 last summer, leaving it with thirty-nine locations in the Mid-Atlantic region.

CarMax Inc., the Richmond, Va. automotive retailer citing an increase in July/August sales as a result of the government’s “cash for clunkers” program, reported second quarter net income of $103 million, a record quarter and a sizeable increase from income of $14 million reported for the same period one year earlier. Net sales jumped 13%–to $2.1 billion. Central States Manufacturing, the Arkansas manufacturer of metal building components, is expanding it operations. The company is investing nearly $5 million in a plant in Mount Airy, N.C. that will add more than 40 jobs initially. Charlotte Radiology and Cabarrus Radiologists, both North Carolina firms, are merging their operations. The combined firm will have more than twenty centers while also staffing the radiology departments for Carolinas HealthCare System hospitals. Crown Holdings Inc., the Philadelphia, Pa. maker of consumer packaging products, is investing $60 million, through its Crown Embalagens SA unit in Brazil, to build a new manufacturing plant to keep up with increased demand in the Brazilian market. CST Industries Inc., a Kansas City, Mo. manufacturer of metal storage tanks and covers, expanded by purchasing Temcor Inc., a Newport Beach, Ca. supplier of aluminum domes, for an undisclosed amount. CST acquired Temcor from Solis Capital Partners, a California private-equity firm, while CST itself is a portfolio unit of The Sterling Group of Houston, Tx. DayStar Technologies Inc. of Santa Clara, Ca. is purchasing EPOD Solar Co. in British Columbia in a transaction valued at $300 million. DayStar also reached agreement with an EPOD shareholder on a $2 million bridge loan that will assist the California firm with its R&D operations. Dessin Fournier, a privately-held designer and maker of luxury home furnishings, has spread his business to not only the U.S. but also to sites overseas. The Plainville, Ks. firm now has showrooms in fifteen cities around the U.S. along with international locations in Canada and Russia. Dessin is controlled by businessman Chuck Comeau, who boasts that his firm has been increasing its revenue by an average of 11% a year for the past decade and half. Facet Biotech Corp. in Redwood City, Ca. has seen Biogen Idec Inc. of Cambridge, Ma. launch its $355 million tender offer to purchase the California company. The offer represents a more than 60% premium over Facet’s closing price. Ford Motor Co., Dearborn, Mi., won authorization for a $5.9 billion loan from the Department of Energy to help pay for retooling its factories so that it can manufacture fuel-efficient cars.

Frontier Financial Corp., Everett, Wa., now expects its purchase by SP Acquisition Holdings, a New York asset acquisitions firm, to be completed by 12/31. General Dynamics Information Technology, a Fairfax, Va. unit of contractor General Dynamics Corp. of Falls Church, Va., won a contract valued at $50 million to continue providing services at the Wright-Patterson Air Force Base. General Plastics Welding, an Indianapolis, In. maker of radio-frequency welded products, will double the size of its operations in Indiana so that it can boost production of thermoplastic products. Go Daddy Group Inc., the Scottsdale, Az. Internet services firm, is expanding its operations in the Phoenix, Az. area with the hiring of more than 100 customer care representatives. Goodyear Tire & Rubber Co.’s unionized workers at its Tonawanda, N.Y. Dunlop tire factory gave a tentative okay to a new contract with the Akron, Oh. manufacturer of tires. Graco Inc., the Minneapolis, Mn. manufacturer of fluid-handling systems, is buying back six million of its common shares as part of a continuing share-buyback program. Hospira Inc.’s chairman and CEO, Christopher Begley, upped projections for both sales and earnings for the full year, thanks partly to strong sales at the firm’s injectable-drugs business. The Lake Forest, Il. company is now expecting that sales could increase as much as 7% this year, up from an earlier growth range, over 2008's worldwide sales of $3.6 billion. Juvaris BioTherapeutics Inc., a privately-held biotech company in Burlingame, Ca., reportedly wrapped up $25 million in financing being led by SV Life Sciences. KAOS Worldwide, the Stafford, Tx. apparel firm, has signed another contract with the U.S. Army that, through military distributor ADS Inc., will supply the army with 20,000 items per month. The terms of the five year contract were undisclosed at press time. KAR Holdings Inc., the Indiana-based owner of ADESA, the big car-auction company, announced plans for an initial public offering, hoping to raise $400 million, some of which would be used for paying down its $2.5 billion pile of debt. Lined Valve Co., a Woodland, Wa.-based manufacturer of large valves for water systems, is holding on to steady work despite the recession that has hurt so many other companies. The firm is one of the few custom manufacturers of valves that uses U.S.-made materials and makes its products here. One of its recent projects was to produce a 34-foot-tall valve that’s 11 feet wide and weighs in a 52,000 pounds. The product was made for use in a drainage system in Chicago, Il.

Mednax Inc., Sunrise, Fl., expanded by acquiring Children’s Health Network, a physician group practice that serves eleven hospitals in California, Nevada, Montana and Louisiana, for an undisclosed amount of cash. Mitsubishi Electric Corp. of Japan, working through its Mitsubishi Power Systems Americas Inc. unit, reportedly plans to locate a new manufacturing plant near the Port of Savannah in Georgia. The facility could employ as many as 500 workers. Momentive Performance Materials Inc., a privately-held Colonie, N.Y. maker of adhesives, resins and sealants, said that it wants to add fifty-five jobs to its payroll this fall at its facility in Waterford, N.Y. Nektar Therapeutics, a San Carlos, Ca. drug maker, has signed a licensing deal with pharmaceutical giant, AstraZeneca PLC, whereby the latter firm will gain control of two of Nektar’s drug programs. Initially a $125 million transaction, payments to Nektar could reach more than $700 million if certain milestones are met. Nutrisystems Inc., a Horsham, Pa. maker of diet meals, signed a licensing agreement with Japan-based House Foods International that allows it to expand into the Japanese market. Oshkosh Corp., the Oshkosh, Wi. firm which earlier in the year won a large contract from the Pentagon to manufacturer all-terrain armored trucks, is hiring hundreds of employees to make the vehicles, which are designed to protect America’s soldiers from roadside bombs. Pelco Inc., the Clovis, Ca. unit of Schneider Electric of France, has signed a deal with Cisco Systems Inc. of San Jose, Ca. that will allow the Clovis firm to expand through its work on high-definition Internet protocol security cameras. Quorum Health Resources, the Brentwood, Tn. firm which is the nation’s largest hospital management firm with patient revenue of $7 billion, has formed an alliance with HealthStream Inc., the Nashville, Tn. provider of Internet learning tools for the healthcare industry, in a move that will bring an air of increased efficiency to both firms. As of press time, terms of the alliance were not disclosed. Round Table Pizza Co., the 50-year-old San Francisco, Ca. restaurant chain which operates 500 outlets throughout the western U.S., is expanding overseas. The company, which is planning licensing agreements in India, had reached agreement with a Chinese firm to open 30 outlets in Beijing. Tarragon Consultants Inc., an employee-owned Olathe, Ks. provider of consulting services, expanded its business in the Southeast by acquiring Gallet & Associates Inc. in Birmingham, Al. for an undisclosed amount.

Tessera Technologies Inc., a San Jose, Ca. electronics firm, boosted its guidance for revenue in the third quarter to as much as $66 million, up from an earlier range of between $60 million and $62 million. U.S. Signal, a Grand Rapids, Mi. telecommunications firm, is expanding its fiberoptic network in Ohio by adding 1,000 miles of lines, including the addition of operations at colocation facilities in the Cincinnati area. Zip Inc., the Atlanta, Ga. auto parts maker, has landed a big fish. The company has signed a deal with Advanced Auto Parts Inc. of Roanoke, Va. to sell its products in Advanced’s 3,400 stores.