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Beard Group Corporate Restructuring Review For October 2012

Presented by Beard Group, Inc. P.O. Box 4250 Frederick, MD 21705-4250 Voice: (240) 629-3300 Fax: (240) 629-3360 E-mail: nina@beard.com

An audio recording of this presentation is available at http://bankrupt.com/restructuringreview/

Welcome to the Beard Group Corporate Restructuring Review for October 2012, brought to you by the editors of the Troubled Company Reporter and Troubled Company Prospector.

In this month's Corporate Restructuring Review, we'll discuss five topics:

• first, last month's largest chapter 11 filings and other statistics;

• second, large chapter 11 filings TCR editors anticipate in the near-term;

• third, a quick review of the major pending disputes in chapter 11 cases that we monitor day-by-day;

• fourth, reminders about debtors whose emergence from chapter 11 has been delayed; and

• fifth, information you're unlikely to find elsewhere about new publicly traded securities being issued by chapter 11 debtors.

October 2012 Mega Cases

Now, let's review the largest chapter 11 cases in October

2012.

Danilo Muñoz reports of five bankruptcy filings in October that involved companies with more than $100 million in assets. None of the Chapter 11 mega filings for October exceeded $1 billion in assets.

The five mega cases were a slight increase from September, when three such cases were filed. There were also six mega filings in August and four in July.

For the first ten months of 2012, a total of 56 companies sought creditor protection under Chapter 11 with assets in excess of $100 million. Eleven of those companies reported in excess of $1 billion in assets; five of those billion-dollar cases were lodged in May.

In comparison, there were 63 and 83 mega filings during the first ten months of 2011 and 2010, respectively.

The largest Chapter 11 filing for October was by Vertis Holdings Inc. As of Aug. 31, 2012, Vertis' unaudited consolidated

financial statements reflected assets of roughly $837.8 million and liabilities of roughly $814.0 million.

Vertis provides advertising services in a variety of print media, including newspaper inserts such as magazines and supplements. The Company plans to sell the business to Quad/Graphics, Inc., for $258.5 million, subject to higher and better offers in an auction.

This is Vertis' third bankruptcy trip since 2008. The so-called Chapter 33 filing was made October 10, 2012, with the Bankruptcy Court for the District of Delaware [case number 12-

12821.]

A123 Systems Inc., a maker of electric car batteries, commenced the second largest Chapter 11 bankruptcy in October. A123 designs, develops, manufactures and sells advanced rechargeable lithium-ion batteries and battery systems and provides research and development services to government agencies and commercial customers.

A123 disclosed assets of $459.8 million and liabilities totaling $376 million. A123 and its U.S. affiliates sought Chapter 11 bankruptcy protection on October 16 with the Bankruptcy Court for the District of Delaware [case numbers 12-12859 to 12- 12861], armed with a deal to sell its auto-business assets to Johnson Controls Inc. The transaction with JCI is valued at $125 million, and subject to higher offers at a bankruptcy auction.

A123 is the recipient of a $249 million federal grant from the Obama administration. Pre-bankruptcy, A123 had an agreement to sell an 80% stake to Chinese auto-parts maker Wanxiang Group Corp. U.S. lawmakers, however, were opposed, citing concerns on the transfer of American taxpayer dollars and technology to China.

The third largest Chapter 11 petition was filed by First Place Financial Corp., the holding company of First Place Bank. First Place offers a variety of business and retail banking products, as well as a range of insurance and investment services.

First Place filed a bare-bones Chapter 11 petition on October 28, 2012, with the Bankruptcy Court for the District of Delaware [Case No. 12-12961], with a deal to sell its bank unit to Talmer Bancorp, Inc., absent higher and better offers. First Place declared $175 million in total assets and $65.6 million in total liabilities as of October 26, 2012.

Talmer has agreed to purchase First Place Bank for $45 million in cash. In addition to the purchase price, Talmer is expected to provide more than $200 million in capital to First Place Bank to satisfy regulatory capital requirements, strengthen the Bank's capital structure, and support lending activity.

Another large case was by South Franklin Circle, a nonprofit continuing-care retirement community that owns a 239-unit

retirement community in Bainbridge Township, Ohio.

Franklin Circle filed a Chapter 11 petition with the Bankruptcy Court for the Northern District of Ohio [Case No. 12-17804] together with a prepackaged Chapter 11 plan. South Franklin disclosed total assets of $167.2 million and debt of $166.3 million.

South

South Franklin's bankruptcy plan is designed to reduce secured debt by 40%. The general unsecured claimants and equity holders are unaffected by the Plan. Under the Plan, South Franklin will replace its $106 million secured debt with a new bond and term note of $66.75 million, of which $17.75 million will be subordinated long term debt.

Finally, the fifth largest filing was by HMX Acquisition Corp., designer, manufacturer, licensor, and licensee of men's and women's business and leisure apparel. As of October 12, 2012, HMX had consolidated assets of $153.6 million and total liabilities of $119.5 million.

HMX and its affiliates filed for Chapter 11 protection on October 19, 2012, with the Bankruptcy Court for the Southern District of New York [Lead Case No. 12-14300] before Judge Allan L. Gropper.

HMX has a deal to sell substantially all of its assets to Authentic Brands Group, LLC, subject to higher and better offers. Authentic Brands has agreed to serve as stalking horse bidder in an auction. Authentic Brands has agreed to pay $5.1 million cash to the bankruptcy estate plus the amount to satisfy claims asserted by Salus and Coppley.

South Franklin's prepackaged bankruptcy raised this year's total number of prepackaged or pre-arranged mega cases to 11 -- roughly 20%.

For 2011, 13 of the 82 mega cases involved a prepackaged Chapter 11 plan as of the Petition Date -- or about 16% of the large Chapter 11 filings. For fiscal year 2010, a total of 35 prepacks/pre-arranged cases were filed out of the 106 bankruptcy mega cases -- or about one in every three filings in 2010.

For the first ten months of 2012, the manufacturing industry continues to lead mega filings with ten, followed by finance and information with seven mega filings each, and the real estate industry with six mega filings.

For the first ten months of 2012, the Bankruptcy Court for the Southern District of New York was the most favored venue for

mega filers with 20, followed by the Bankruptcy Court for the District of Delaware with 15 mega filings.

In 2011, the Delaware Bankruptcy Court was the most favored of bankruptcy mega cases with 38 filings, or 46% of the mega cases, followed by the Southern District of New York with 16 filings, or 19% of the mega cases, and by the Northern District of Texas with 4 filings, or 5% of the mega cases. The rest of the bankruptcy mega cases are spread evenly throughout the various bankruptcy courts.

Lehman Brothers Holding Corp. remains the biggest corporate bust in history. Lehman, which filed in 2008, had $639 billion in total assets and $613 billion in total debts at that time of its filing.

For 2011, the largest Chapter 11 filing was filed by MF Global Holdings Ltd. and its affiliates. As of Sept. 30, 2011, MF Global had $41.05 billion in total assets and $39.68 billion in total liabilities.

For 2012, the largest Chapter 11 filing was by Residential Capital LLC, which disclosed $15.68 billion in assets and $15.28 billion in liabilities as of March 31, 2012.

Anticipated Large Chapter 11 Filings

Now, let's turn to the topic of large chapter 11 filings Troubled Company Reporter editors anticipate in the near-term.

Carlo Fernandez identified five companies that may be close to filing for bankruptcy. These are: Evergreen International,

Overseas Shipholding Group, AMF Bowling, LBI Media, and Edison Mission Energy.

(A) Evergreen International

Standard & Poor's Ratings Services recently placed privately held Evergreen International Inc.'s 'CCC' corporate credit rating on CreditWatch with negative implications.

"We have become increasingly concerned about Evergreen's liquidity and its uncertain near-term operating outlook, which could challenge its ability to meet debt service requirements," said Standard & Poor's credit analyst Lisa Jenkins. "Evergreen's operating performance remains weak, reflecting the depressed state of the air cargo market and the company's current reliance on a mostly older fleet of aircraft.

Evergreen was in violation of its interest coverage and leverage covenants at the end of the second quarter for the fiscal year ended February 2013 and is working on getting a waiver from its lenders.

(B) Overseas Shipholding Group

Overseas Shipholding Group Inc., one of the world's largest publicly owned transporters of crude oil and petroleum products, said October 22 that it's evaluating strategic options that include a Chapter 11 bankruptcy filing.

On the same day, Standard & Poor's said the New York- based company is in a liquidity crisis and the risk of default is imminent.

The Company's liquidity constraints in part are due to the $1.5 billion bank credit maturing in February that will be replaced with a $900 million facility. The Company reported a $90.1 million net loss and a $41.5 million operating loss for six months ended June 30 on revenue of $583.7 million. For 2011, revenue of $1.05 billion resulted in a $192.9 million net loss and a $120.1 million operating loss.

The Company operates 112 vessels, of which 67 are owned.

Following the announcement of a potential Chapter 11 filing, Overseas Shipholding Group lost 62% of its value in October 22 trading, closing at an all-time low of $1.23 on the New York Stock Exchange -- and a decrease of 63% in a single day on tremendously high volume. The three-year high was $53.13 on May 3, 2010.

(C) AMF Bowling

Standard & Poor's Ratings Services lowered its corporate rating on AMF Bowling Worldwide Inc. to 'D' from 'CCC' after the U.S. bowling center operator missed interest payment on its credit facilities.

AMF in October confirmed it did not make its most recent interest payment on its senior secured credit facilities. AMF did receive a waiver from its lender group granting a grace period until early November to make the payments.

S&P said it is not confident in AMF's ability to make the interest payment," S&P said.

(D) LBI Media

LBI Media Holdings did not make the interest payment

(about $3.8 million) on its 11% senior discount notes due Oct. 15,

2012.

Standard & Poor's Ratings Services lowered its corporate credit rating on the Burbank, California-based Company to 'D' from 'CC' after the missed payment and the announcement by LBI of its eighth extension of its subpar debt exchange offer for the 8.5% senior subordinated notes due 2017 and 11% senior discount notes due 2013.

If the discount notes interest payment default is not cured by November 14, holders of at least 25% of the outstanding principal amount of the discount notes can accelerate the debt, resulting in a cross-default on the company's other debt. If obligations outstanding under the discount notes are not accelerated, an uncured default by LBI Media Holdings on more than $10 million on indebtedness will constitute an event of default under LBI's existing debt agreements, S&P said.

On July 17, 2012, LBI announced its intent to de-leverage its balance sheet by reducing the outstanding principal amount of debt issued by LBI and LBI Media Holdings. As of October 12, subject to conditions, the Company had offered to exchange below par new second-priority secured springing subordinated notes due 2020 or holding company notes due 2017 for its 8.5% subordinated notes and 11% discount notes.

As of October 25, 2012, noteholders holding only about 26.4% of the principal amount of outstanding senior subordinated notes, and 69.6% of the principal amount of the outstanding senior discount notes not held by LBI Media Holdings (about 81.5% including debt held by the company) had tendered their notes. The subordinate note indenture requires holders of at least 50% in principal amount to consent to an amendment of certain covenants and restrictions, and consent from holders of at least 75% in principal amount to amend the relative rights of subordinated noteholders.

(E) Edison Mission Energy

Edison Mission Energy disclosed in a regulatory filing a net loss of $348 million on $1 billion of operating revenues for the nine months ended September 30, 2012, in comparison with a net loss of $19 million on $1.27 billion of operating revenues for the same period a year ago.

Edison International Chief Executive Officer Ted Craver said during a conference call Nov. 1 that Edison Mission may not make a $97 million bond interest payment on November 15, which would require the unit to file for Chapter 11 bankruptcy protection.

The Company's balance sheet at Sept. 30, 2012, showed $8.17 billion in total assets against $6.68 billion in total liabilities.

Santa Ana, California-based Edison Mission is a holding company whose subsidiaries and affiliates are engaged in the business of developing, acquiring, owning or leasing, operating and selling energy and capacity from independent power production facilities.

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In addition to the challenged companies mentioned in Mr. Fernandez's report, the Troubled Company Reporter provides on- going reporting about more than 3,000 companies experiencing financial distress or restructuring their balance sheets in a judicial proceeding. Stay tuned to learn more about obtaining a trial subscription to the TCR at no cost or obligation.

Major Pending Disputes In Chapter 11 Cases

Next, we'll quickly review major pending disputes in large chapter 11 cases that Troubled Company Reporter editors monitor day-by-day.

(A) Lehman Brothers

Ivy Magdadaro provides updates on the various disputes Lehman Brothers is involved in.

In early October 2012, The Managed Fund Association, a hedge fund advocacy group, filed an amicus curiae brief telling the U.S. Court of Appeals for the Second Circuit that a New York federal court’s ruling in Lehman Brothers Inc.’s bankruptcy will cause a “substantial loss of confidence” in the capital markets and must be overturned.

The hedge fund group, which says it represents the global alternative investment industry, takes issue with U.S. District Judge Katherine B. Forrest’s June 5 ruling largely siding with Barclays PLC in its multi-billion dollar dispute with the liquidation trustee for the remnants of Lehman’s brokerage unit.

James Giddens, the trustee overseeing the liquidation of Lehman broker unit under the U.S. Securities Investor Protection Act of 1970, previously argued before the Second Circuit that there was denial of due process when the North American investment banking business was sold to Barclays one week after Lehman’s bankruptcy filing in September 2008. Mr. Giddens is seeking to overturn Judge Forrest’s ruling, which concluded that the bankruptcy judge was wrong in requiring Barclays to pay $1.5 billion. In addition to reinstating the $1.5 billion judgment in his favor, Mr. Giddens also wants the 2nd Circuit to award him $4 billion in cash representing so-called margin assets.

The Barclays appeal in the court of appeals is Giddens v. Barclays Capital Inc. (In re Lehman Brothers Holdings Inc.), 12- 2328, 2nd U.S. Circuit Court of Appeals (Manhattan). The Barclays appeal in district court is Barclays Capital Inc. v. Giddens (In re Lehman Brothers Inc.), 11-6052, U.S. District Court, Southern District of New York.

(B) Idearc Inc.

Trial began in mid-October 2012 regarding the lawsuit brought by creditors of Idearc Inc. over its 2006 spinoff by its former parent Verizon Communications. In the lawsuit filed in U.S. District Court for the Northern District Texas in Dallas, the Idearc creditors allege Verizon, knowing the directory business was in decline, engineered a deal that transferred $2.4 billion in

cash out of the subsidiary and saddled it with $9 billion in debt. The creditors contend the spinoff, designed to generate $9.5 billion for Verizon, left Idearc with so much debt it was insolvent and destined to collapse. Idearc filed for bankruptcy in Dallas bankruptcy court 28 months after the spinoff.

FTI Consulting director Carlyn Taylor has testified during the trial that Idearc was insolvent by more than $1 billion at its 2006 spinoff, facing worse prospects than were disclosed to investors. She specified that the directory business was sold with more than $9 billion in debt and $400 million in retiree obligations. It was worth $8.15 billion at that time, she said.

However, Verizon attorney Reid Figel has said Idearc wasn’t insolvent at the time of the spinoff and that Wall Street analysts valued the Company from $12.5 billion to $14.5 billion.

Former Verizon CEO Ivan Seidenberg also has defended the Idearc spinoff, saying the business was healthy and stable, and that Verizon wasn’t seeking to unload a dying business.

Debevoise and Plimpton LLP partner Steven Slutzky testified that Verizon disclosed to investors the risks in the directory business at its spinoff, including declining revenue. Debevoise and Plimpton firm handled the regulatory disclosures for the 2006 deal.

Now named SuperMedia Inc, Idearc completed a bankruptcy reorganization that created a trust to bring lawsuits on behalf of creditors with claims of about $6 billion.

Delayed Exits From Chapter 11

Julie Anne Lopez-Toledo reports about three Chapter 11 debtors whose emergence from Chapter 11 has been delayed:

Tribune Co., WR Grace and Quigley.

(A) Tribune Co.

Tribune Co. and its affiliated debtors have sought the Delaware Bankruptcy Court's approval to obtain loans to finance its exit from bankruptcy protection.

The loans consist of a senior secured asset-based revolving credit facility of up to $300 million, and a senior secured term loan facility of up to $1.1 billion.

The $300 million loan will be provided by Bank of America N.A. and other lenders to fund Tribune's operations after the effectiveness of its restructuring plan.

The $1.1 billion loan will be provided by a syndicate of banks and financial institutions arranged by a group led by J.P. Morgan. The $1.1 billion will be used to fund cash distributions to creditors, according to court papers.

The terms of the proposed financing are detailed in two letter agreements.

In connection with the financing, Tribune also asked for court approval to pay certain fees and expenses and furnish indemnities as allowed administrative expenses.

On July 23, 2012, the bankruptcy court confirmed Tribune's restructuring plan, which was jointly proposed by the company, the committee of unsecured creditors, Oaktree Capital Management L.P., Angelo, Gordon & Co. L.P., and JPMorgan Chase Bank N.A.

The restructuring plan contemplates that the company may, in its discretion, enter into a post-effective date facility.

A court hearing to approve the proposed financing was scheduled for November 7. Objections were due October 31.

Tribune filed for bankruptcy four years ago.

(B) W.R. Grace

The fourth quarter of 2013 remains W.R. Grace & Co.'s target to emerge from bankruptcy.

Grace has been in Chapter 11 protection for more than 11 years since it delivered its petition to the U.S. Bankruptcy Court for the District of Delaware on April 2, 2001.

A district court approved its reorganization plan earlier this year, clearing a major hurdle for it to emerge from bankruptcy protection. The plan was reaffirmed in June but eight parties filed notices of appeal before a July 11 deadline.

The eight parties are (1) a group of lenders under the Debtors' prepetition bank credit facilities – the Bank Lenders; (2) claimants injured by exposure to asbestos from the Debtors' operations in Lincoln County, Montana – the Libby Claimants; (3) Garlock Sealing Technologies, LLC; (4) the state of Montana; (5)

Maryland Casualty Company; (6) Her Majesty the Queen in Right of Canada; (7) BNSF Railway Company; and (8) Anderson Memorial Hospital.

However, the Libby Claimants have sought and obtained approval from Judge Buckwalter of their unopposed motion for voluntary dismissal of their appeal with prejudice.

The Libby Claimants' withdrawal of appeal came following a Bankruptcy Court's approval of a settlement among the Debtors, the Official Committee of Asbestos-related Personal Injury Claimants, and the Libby Claimants regarding the transition of the Libby Medical Program to a trust created pursuant to the global settlement arrangement -- the LMP Trust.

In January 2012, Grace entered into a proposed agreement requiring it to turn the Libby Medical Program over to a locally administered trust, and to fund the trust with $19.5 million.

The Libby Medical Program first became effective on April 3,

2000. Grace voluntarily created the Libby Medical Program prior

to, and independent of, their Chapter 11 cases. Since then, Grace voluntarily maintained the Libby Medical Program, through which it provided certain health care benefits related to the treatment of asbestos-related conditions to eligible individuals, who enrolled in the program. The program provided that certain individuals would be eligible for coverage, including former Grace employees who worked in its mine operations in Libby, Montana, and certain other individuals, who reside or formerly resided in the area surrounding the mine. Grace disclosed that its estates incur more than $2 million annually in health care expenses for the Libby Medical Program.

On the effective date of the Libby Settlement, all rights and duties whatsoever of Grace and Health Network of America, Inc.,

under the Libby Medical Program will be transferred to the LMP Trustee. Grace, however, will remain responsible for any expenses of the program incurred prior to the effective date.

Libby asbestos victims have until Nov. 20 to enroll in the Libby Medical Plan Trust.

Fred Festa, Grace's Chairman and CEO, disclosed during the Company's earnings call on October 24, 2012 for the third quarter results, that the settlement with the Libby Claimants has been put in the fact, resulting in the withdrawal of three appeals to the plan of reorganization.

There are now five appeals pending before the Third Circuit.

Mr. Festa said Grace is in the middle of the briefing schedule, which will be completed by year-end. Grace expects the court to hear oral arguments in the first quarter 2013. Following that, the Company will await the court's ruling.

(C) Quigley

Pfizer Inc.'s unit Quigley Co. Inc. asked Bankruptcy Judge Stuart M. Bernstein on November 5 to extend the voting deadline on its Chapter 11 plan by two weeks, saying Hurricane Sandy's aftermath has disadvantaged creditors in the Northeast, who have requested more time.

Quigley is asking Judge Bernstein to extend the deadline by which holders of claims against it must vote to accept or reject its fifth amended plan of reorganization from November 16 to 30.

Quigley, in bankruptcy since 2004, filed the sixth version of its plan June 29, and obtained Judge Bernstein's permission to have creditors vote on the draft plan on August 15.

Under the draft plan, Pfizer would contribute assets to a trust to cover claims that Quigley’s past products caused asbestos- related injuries.

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The Troubled Company Reporter provides detailed reporting about every chapter 11 filing nationwide. Stay tuned to learn more about obtaining a trial subscription to the TCR at no cost or obligation.

New Publicly Traded Securities

There were for companies who issued or will issue shares of

new common stock upon emergence pursuant to the plans of reorganization they filed in their Chapter 11 cases in October

2012. These are: NewPage Corp., Dynegy, Broadview Networks,

and Global Aviation Holdings.

(A) NewPage Corp.

NewPage Corporation filed a revised reorganization plan along with an explanatory disclosure statement telling first-lien creditors they will have a 56.6% recovery by receiving all of the new stock in the paper maker in exchange for debt. The plan was

the product of a settlement cobbled together by a bankruptcy judge serving as mediator.

Second-lien noteholders and some unsecured creditors will split $30 million in cash and the first $50 million collected by a litigation trust. The disclosure statement tells holders of $1.06 billion in second-lien debt that their recovery amounts to 6%.

Depending on which election some creditors make, the recovery by holders of $29.3 million in unsecured claims is 5.3%, according to the disclosure statement. Trade suppliers who agree to provide credit in the future will receive 15% on their claims over two years. For holders of $207.8 million in senior subordinated debt, the predicted recovery is 0.2%. After the initial $50 million from the trust, additional distributions will be shared by the first- and second-lien noteholders and some unsecured creditors. NewPage will fund the litigation trust with $40 million in cash and specified lawsuit recoveries. NewPage will also loan the trust $5 million for administrative expenses. The official creditors' committee supports the newly negotiated plan.

NewPage also contemplates signing an exit financing facility in the form of a $500 million secured term debt facility and $400 million asset-based revolving credit facility.

(B) Dynegy

Dynegy's Chapter 11 Plan became effective, and the Company emerged from Chapter 11 protection.

The Company will have approximately $800 million in liquidity in the form of cash (restricted and unrestricted) and letter of credit capacity available to support the Company's post

emergence operations and commercial activities. The common stock and warrants to purchase common stock for the reorganized Company are listed with and began trading on the New York Stock Exchange on October 3, 2012 under the symbols DYN and DYNw, respectively. The reorganized Company will have approximately 100 million shares outstanding.

Under the terms of the confirmed Joint Chapter 11 Plan of Reorganization, in exchange for the elimination of more than $4 billion in debt and other obligations, unsecured creditors are receiving common equity representing a 99% stake in the reorganized Company and $200 million in cash. Legacy stockholders are receiving a 1% stake in the reorganized Company and 5-year warrants to purchase up to 13.5% of the common stock of the reorganized Company (on a fully-diluted basis) to be exercisable at $40 per share. Dynegy expects that it will initiate distributions of stock and cash to creditors and stockholders, according to the terms of the Plan, starting on October 2, 2012.

The reorganized Company will have approximately 15.6 million warrants outstanding (with shares of common stock authorized and reserved for issuance on a one-for-one basis), and approximately 6.1 million shares of common stock authorized and reserved for issuance for distributions to be made under Dynegy's employee incentive plan.

(C) Broadview Networks

The U.S. Bankruptcy Court approved Broadview Networks Holdings' Disclosure Statement and concurrently confirmed its Joint Prepackaged Plan of Reorganization.

The Plan provides for the following terms:

-- Holders of the Senior Secured Notes will receive 97.5% of the new equity and $150 million of new five-year 10.5% senior secured notes;

-- Holders of the existing preferred interests will receive 2.5% of the new equity and two series of eight-year warrants to purchase up to i) 11% of the new common stock and ii) 4% of the new common stock;

-- A new ABL facility with a minimum $25 million commitment will be issued;

-- The ABL facility will be repaid; and

-- Other existing equity interests will be cancelled.

(D) Global Aviation Holdings

The U.S. Bankruptcy Court in Brooklyn, New York, approved the disclosure statement explaining Global Aviation Holdings' Chapter 11 Plan, and the hearing for approval of the plan will take place Nov. 28.

The plan turns 75% ownership over to secured noteholders owed $111.4 million. Unsecured creditors and second-lien noteholders are to receive nothing. In addition to stock, senior secured creditors are slated to receive a new $40 million, five- year second-lien note bearing interest at 3% payable with more notes. The senior creditors will also receive whatever is left after a new $95 million first-lien loan pays off about $91 million in

financing for the reorganization. The projected recovery for secured creditors is 78%, according to the disclosure statement.

The plan implements newly negotiated contracts with pilots, flight attendants and dispatchers designed to save $100 million during the five-year term of the agreements. In exchange, employees' representatives receive the remaining 25% of the new stock, plus warrants for another 15%. Global used the bankruptcy court to shed 17 of the 31 aircraft in the fleet when the bankruptcy began. The plan eliminates $168 million in debt for borrowed money and is supported by holders of 80% of the first-lien notes and all of the lenders for the reorganization, according to the disclosure statement. The new labor agreement doesn't permit more than $95 million in first-lien debt and $40 million of second- lien debt. No more than half of cash flow may be paid to creditors, and there must be a revolving credit of at least $20 million.

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That ends the Beard Group Corporate Restructuring Review for October 2012, brought to you by the editors of the Troubled Company Reporter and Troubled Company Prospector. If you'd like to receive the Troubled Company Reporter for 30-days at no cost -- and with no strings attached -- call Nina Novak at (240) 629-3300 or visit bankrupt-dot-com-slash-free-trial and we'll add you to the distribution list. That telephone number, again, is (240) 629-3300 and that Web site address, again, is bankrupt-dot-com- slash-free-trial.

Tune in to our next monthly Restructuring Review on December 16th. Thank you for listening.