U.S.BUSINESS JOURNAL

(WEEKLY SUMMARY OF FINANCIALLY-CHALLENGED U.S. COMPANIES

& OTHER COMPANY NEWS)

 

 Issue of August 1, 2011

 

 

At Press Time

 

Adperio, a Denver, Co. online digital ad agency, is in a deal to be acquired by Israeli-based Matomy Media Group. The price of the acquisition will be about $30 million, depending on Adperio’s performance over the next four years. Adperio, by some accounts one of the fastest-growing private companies in the U.S., has annual revenue of about $50 million.

 

Broadcom Corp., an Irvine, Ca. maker of a variety of semiconductor chips, reported its net income for the second quarter declined 37%–to $175 million, because of increased costs, but not counting nonrecurring items, the results beat Wall Street expectations. Revenue increased 12%–to $1.8 billion. 

 

Callaway Golf Co., a Carlsbad, Ca. manufacturer of golf equipment, reported a second quarter loss of $63.6 million. While that’s down from net income of $11.5 million in the year-earlier period, the recent loss wasn’t as bad as had been expected. Revenue increased slightly–to $274 million. Looking more toward the future, Callaway, which has been losing money for two years, has initiated a restructuring program that includes trimming its worldwide staff by 7% to save money. Hoping to save $50 million a year through its restructuring, which will result in pretax charges of up to $20

million, Callaway will plow as much as half of that savings into ways to increase demand for its golf products.

 

HCA Holdings Inc.of Nashville, Tn., the U.S.’s biggest operator of for-profit hospitals, reported its second quarter profit sank 22%–to $229 million, citing extra charges for retiring debt as well as a decline in surgeries as patients put off procedures because of the weak economy. Revenue was up 4%–to almost $8.1 billion. HCA’s results disappointed analysts, who pushed down is shares as much as 19% on the news.

 

Kimberly-Clark Corp., the Dallas, Tx.-based manufacturer of diapers, Kleenex and feminine-care products, reported its second quarter earnings slid 18%–to $408 million, or $1.03 a share, although taking out extra items earnings rolled in at $1.18 a share, beating analysts’ projections. Sales were up 8%–to almost $5.3 billion. The company has been beset by weak demand and high costs for raw materials.

 

Office Depot Inc., the Boca Raton, Fl. office-supplies retailer, reported a second quarter loss of $29 million, compared to a $25 million loss in the year-earlier period. The results were impacted by a $12 million charge for shutting down its remaining Canadian locations. Revenue was flat at $2.7 billion. Same-store sales at its more than 1,100 locations slipped 1%.

 

Watson Pharmaceuticals Inc., Parsippany, N.J., reported its second quarter net income sank 25%–to $52.7 million. The results, hurt by rising operating costs, nonetheless surpassed Wall Street expectations. Revenue jumped 24%–to nearly $1.1 billion, bolstered by a 39% increase in its worldwide generics business.

 

 

 

The Economic Outlook

 

The National Association of Realtors reported that sales of existing homes declined 0.8% in June, to a seasonally adjusted annual rate of nearly 4.8 million units.

 

According to the Standard & Poor’s Ratings Services Case-Shiller index of home prices, existing-home prices fell 4.5% in May from the year-earlier month.

 

 

 

Notes for Business Executives

 

A Brief Look at One Aspect of the Automatic Stay

 

When a debtor files for bankruptcy, whether it be under Chapter 7 or 11 and whether it be a voluntary or involuntary filing, “all entities” are automatically and immediately stayed from taking any action or continuing any legal action against the debtor. This includes attempts to collect debt from the debtor by any party.  This also applies to the enforcement of liens against the debtor’s property. This stay also relates to repossession of property. If the creditor had repossessed property prior to the filing of the case but had disposed of it by sales, the creditor could, and the key word here is “could”, be required to make restitution of that asset to the bankruptcy estate.

 

                                 

 

BANKRUPTCY NEWS

 

Ambac Financial Group Inc.agreed to provide additional time for the Wisconsin’s Commissioner of Insurance to complete an analysis of Ambac’s reorganization plan. As a result, a hearing on the disclosure statement in the U.S. Bankruptcy Court has been moved from 8/12 to 9/8 and a hearing to confirm Ambac’s Chapter 11 reorganization plan is now set for 11/8.

 

Barnes Bay Ltd.has seen its Chapter 11 confirmation hearing scheduled for 8/17. For more information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2560 and refer to case number 11-10792.

 

Barzell Industriesfiled its joint liquidation plan and disclosure statement in the U.S. Bankruptcy Court.

 

BG Fuel SystemsandDemon Carburetion, which filed Chapter 7 earlier this year, have been acquired by “a fresh team of race and performance enthusiasts”. The new owners will restart the firms’ manufacturing facilities, rehire staff and work towards production and marketing.

 

Bionol Clearfield LLC, a Clearfield, Pa.ethanol producer, filed Chapter 7. The firm, putting its plants on “hot idle status”, hopes to sell its operations as a functioning ethanol facility within the next four to six months. Bionol ran into financial problems in a contract dispute with a customer buying its ethanol that wanted to pay less than the contracted price. The filing, in the U.S. Bankruptcy Court in Delaware, listed assets of between $50 million and $100 million and liabilities of between $100 million and $500 million. Also filing for bankruptcy protection were two affiliates, Bionol Clearfield Holdco LLC and BioEnergy Holding LLC. For more information contact the court at 302-252-2560 and refer to case number 11-12301.

 

Bondex International Inc., a bankrupt division of RPM International Inc., was denied access to data on compensation that had been paid to an

asbestos victim. Bondex would like that information to estimate future liabilities.

 

Borders Group Inc., Ann Arbor, said that its beginning going-out-of-business sales at its remaining 399 stores, which could result in liquidating more than $700 million of inventory. The bookseller recently received approval from the U.S. Bankruptcy Court  to proceed with its liquidation. The retailer apparently failed in 11th-hour talks to sell a few dozen of its outlets to Books-A-Million Inc. Those stores will now become part of the group of Borders’s nearly 400 locations that are being liquidated.

 

Capmark Financial Group Inc.has seen an 8/19 confirmation hearing scheduled for its Chapter 11 case. For more information contact the U.S. Bankruptcy Court  in Wilmington, De. at 302-252-2560 and refer to case number 09-13684.

 

Chicken Out Inc.filed Chapter 11 in the U.S. Bankruptcy Court in Maryland. The firm listed assets of less than $10 million. The case number of the filing is 11-24557. 

 

Deb Shops Inc., a privately-held Philadelphia, Pa.retailer of women's apparel, won approval from the U.S. Bankruptcy Court to sell its assets at auction on 8/31, with an opening bid of $75 million. Ableco Finance LLC is leading a lending group to swap debt for Deb’s assets. Also, the court, in Wilmington, De., okayed a loan of up to $21.7 million through Ableco to fund operations. The company, with more than 300 stores that target teen girls and young women, listed assets and liabilities of $124 million and $270 million respectively in its Chapter 11 filing. For more information on Deb Shops, which is also known as DSI Holdings, contact the court at 302-252-2560 and refer to case number 11-11941.

 

El Palacio Miami Sports Hotel’s owners, businessman Gerald Ross and his wife, filed Chapter 11. The filing listed assets and liabilities of between $10 million and $50 million each. The hotel itself, in MiamiGardens, Fl., did not enter bankruptcy proceedings.

 

Forum Health Inc.in Youngstown, Oh. won approval from the U.S. Bankruptcy Court for its Chapter 11 reorganization plan.

 

Gage Family Entertainment LLCfiled Chapter 11 in the U.S. Bankruptcy Court for the Western District of Missouri. The filing, under case number 11-61485, listed assets of less than $10 million.

 

Harry & David Holdings Inc., the bankrupt Medford, Or. catalog retailer, filed a supplement to its second amended joint reorganization plan. For more information contact the court in Wilmington, De. at 302-252-2560 and refer to case number 11-10884.

 

HRD Corp.filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The filing, listing assets of less than $10 million, was under case number 11-36020.

 

Jackson Hewitt Tax Service Inc., the bankrupt New Jersey-based tax-preparation company, asked the U.S. Bankruptcy Court to block a possible appeal by creditors on  confirmation of its reorganization plan, which it hopes to win in August. Jackson Hewitt is arguing that any further delay will endanger its chances for emerging and its prospects for a healthy tax season.  For more information contact the U.S. Bankruptcy Court in Delawareat 302-252-2560 and refer to case number 11-11587.

 

Joy’s Pride Inc.in Shelton, Wa., which does business as Sensaria, filed Chapter 7, shortly after it had been placed in receivership. The company, which sells skincare products and related consumer goods, apparently ran into debt problems and an inability to find financing alternatives.

 

Lehman Brothers Holdings Inc.paid out another $27.5 million in various bankruptcy-related fees during June, bringing to more than $1.3 billion in

fees that it has paid to lawyers and other advisers since filing Chapter 11 in the fall of 2008. Also, Lehman has seen an 8/30 hearing scheduled to consider its Chapter 11 disclosure statement. For more information contact the U.S. Bankruptcy Court for the Southern District of New York at 212-668-2780 and refer to case number 08-13555. Separately, the trustee in charge of winding down the defunct investment firm is going after Barclays PLC once again. Barclays earlier lost a multibillion-dollar judgment against it in court but is now appealing that ruling. The trustee in the case is renewing claims against Barclays. 

 

Littleton Apartments LLCfiled Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Colorado. The filing, under case number 11-34564, listed assets of between $10 million and $100 million.

 

The Los Angeles Dodgers’ owner, Frank McCourt, was blocked by the U.S. Bankruptcy Court in his attempt to use its bankruptcy status to get around Major League Baseball rules. Specifically, the court said that the baseball team can’t use a $150 million loan from hedge fund Highbridge Principal Strategies to fund its operations.

 

Medic-1 Clinics Inc.in Virginia, which recently shuttered its last urgent-care facility in the area, filed Chapter 7. The filing, in the U.S. Bankruptcy Court for the Eastern District of Virginia, listed assets and liabilities of about $130,000 and almost $2.6 million respectively.

 

Mt. Vernon Properties LLCfiled Chapter 11 in the U.S. Bankruptcy Court in Maryland, under case number 11-24801. The filing listed assets of between $10 million and $100 million.

 

Nebraska Book Co., a bankrupt Lincoln, Ne.-based chain of college bookstores, won approval from the U.S. Bankruptcy Court to borrow up to $200 million to help fund its operations during reorganization. The money, which follows an earlier $125 million package, will allow the company to buy textbooks and other supplies for the back-to-school season. The company is currently reorganizing, hoping to hand over control in exchange for restructuring $450 million of its parent company’s debt. For more

information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2560 and refer to case number 11-12005.

 

Nexity Financialwon approval from the U.S. Bankruptcy Court to convert its Chapter 11 case to a Chapter 7 liquidation. The firm filed Chapter 11 more than a year ago listing prepetition assets of $947 million.

 

Nortel Networks Inc., the bankrupt Ontario-based manufacturer of telecom gear, asked for permission from the U.S. Bankruptcy Court to hire Eugene Collins as a consulting expert and special Irish counsel.

 

North AdamsRegionalHospitalin North Adams, Ma. was denied designation as a so-called critical access hospital, because it isn’t at least twenty-five miles away from the next-closest hospital. Nonetheless, the federal ruling shouldn’t affect North Adams Regional’s expectations to emerge from Chapter 11 bankruptcy protection. The hospital’s parent company, Northern Berkshire Healthcare, filed Chapter 11 in June.

 

Omega Navigation Enterpriseasked the U.S. Bankruptcy Court for permission to hire Bracewell & Giuliani as attorney.

 

Opti Canada Inc., a bankrupt Canadian oil-sands developer, is reportedly in a deal to be acquired by Cnooc Ltd., the big Chinese-based offshore oil producer, in a $2.1 billion transaction.

 

PeninsulaHospitalin New York City’s Rockaways area, has begun bankruptcy proceedings and will close its doors. Peninsula, a unit of MediSys Health Network, owes its vendors $13 million and its nursing home owes $2 million.

 

Renegade Holdings, Renegade Tobacco and Alternative Brands, three firms that operate in the same facility in Mocksville, N.C., are selling their

assets to CB Holdings, a Raleigh, N.C. tobacco company, for $15.6 million. The sale requires the approval of the U.S. Bankruptcy Court.

 

Sbarro Inc., the bankrupt Melville, N.Y.-based pizza chain, won permission from the U.S. Bankruptcy Court to extend its exclusivity period for filing a reorganization plan until 10/31. For more information on Sbarro contact the court for the Southern District of New York at 212-668-2780 and refer to case number 11-11527.

 

Shasta Lake Resorts LPfiled Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of California. The firm listed assets of between $10 million and $100 million, under case number 11-37221.

 

South Edge LLC, a bankrupt Las Vegas, Nv. real-estate developer involved in the now-stalled Inspirada project, has seen the U.S. Bankruptcy Court allow the trustee in the case to tap into $4 million of a $21.4 million bankruptcy loan that’s being provided by Toll Brothers Inc., KB Home and Beazer HomesUSA, three big homebuilders.

 

USA Springs Inc., a bottled water business in New Hampshire, is awaiting approval from the U.S. Bankruptcy Court  for a loan of $60 million from Malom Group AG, which has offered to pay off USA’s creditors. The loan would pave the way for USA Springs to emerge from bankruptcy protection. The funding from Malom takes the form of structured notes over five years, depending on USA Springs providing up to $1.2 million up front. USA Springs filed Chapter 11 three years ago.

 

Vitaris Rehabilitation LLCfiled Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of New York. The filing, listing assets of less than $10 million, was under case number 11-74988.

 

W.R. Grace Co., the Columbia, Md.-based maker of chemicals which is operating under Chapter 11 protection, reported its second quarter earnings jumped 48%–to $75.5 million. Revenue was up 21%–to $826 million, ahead

of analysts’ expectations. The company added that it has asked the U.S. Bankruptcy Court for approval to emerge from Chapter 11.

 

 

Computers /

Electronics

 

Aerius Photonics LLC, a Ventura, Ca. firm that provides short-wavelength infrared detectors and laser components, has been acquired by Flir Systems Inc., a Portland, Or. maker of thermal-imaging and threat-detection products, in a cash deal valued at $27 million. Aerius provides products for both the commercial and military markets.

 

Apple Inc.has an interesting problem–a mountain of $76.2 billion in cash and not knowing quite what to do with it. The money, which also includes marketable securities, is prompting some investors to call for dividend payouts. Apple, Cupertino, Ca., hasn’t been using its cash for many big acquisitions, although it did recently participate in a $4.5 billion purchase of patents from bankrupt Nortel Networks Inc. But some of the pile of cash could be used to increase its business, as the company has been trying to move more heavily into the expanding Chinese market. Traditionally, most of Apple’s business has been inside the U.S., where it has about half of the smartphone market, in contrast to China, where Apple has less than 12% of the market.

 

Flir Systems Inc., a Portland, Or. maker of infrared cameras and thermal-imaging products, reported its second quarter profit fell to $29.3 million, down from $59.5 million in the year-earlier period. The recent results were affected by litigation expenses. Revenue increased 18%–to $390 million. The firm also reduced its sales and profit guidance for the full year.

 

IGware Inc., a Mountain View, Ca. developer of cloud-computing technology, is in an agreement to be purchased Taiwanese computer maker Acer Inc. in a cash-and-stock transaction valued at $320 million.

 

Inrix Inc., a Kirkland, Wa. traffic information technology company, said that it raised $37 million through a round of venture funding. The funding will help Inrix with its goal of expanding into Chinaand other fast-growing markets outside the U.S. 

 

InterDigital Inc., a King of Prussia, Pa.provider of wireless technology, has reportedly been in preliminary merger negotiations with Google Inc. about a possible sale. InterDigital’s shares shot up recently after it said that it retained Evercore Partners Inc. of New Yorkand British-based Barclays Capital to help it look into strategic alternatives, including the possibility of putting itself up for sale. Through an acquisition, Google would gain valuable wireless technology.

 

Juniper Networks Inc.’s shares lost a fifth of their value in recent trading after the Sunnyvale, Ca. Internet-equipment firm reported sales and profits for the recent quarter that fell shy of analysts’ expectations.

 

Motorola Mobility Holdings Inc., Libertyville, Il., is being urged by investor Carl Icahn to look into options for its patent portfolio to take advantage of recent soaring prices in the patent market. Following a resultant 12% jump in its share value, Motorola Mobility is worth about $7.5 billion, but Mr. Icahn, who controls 11% of Motorola Mobility, is suggesting that by pursuing a sale of the patents the company could be worth $13 billion.

 

PeopleNet, a maker of on-board computing and mobile communications systems with U.S.headquarters in Minnetonka, Mn., is in an agreement to be purchased by Trimble Navigation Ltd. of Sunnyvale, Ca. for an undisclosed amount. 

 

Radiant Systems Inc., an Alpharetta, Ga.maker of hardware and software products for the hospitality sector, has now received a tender offer from Ranger Acquisition Corp., which is bidding $28 a share in cash for the outstanding shares of Radiant. Ranger is a unit of NCR Corp. The offer expires 8/19.

 

Research In Motion Ltd., the Waterloo, Ontario-based BlackBerry maker, warned that it will trim its payroll by 2,000 jobs, or about 10% of its staff, in an effort to reduce costs. The personnel reshuffling also calls for reassigning some management positions. Further information will be provided when the company reports its second quarter results on 9/15.

 

Riverbed Technology Inc.’s shares lost more than a fifth of their value in recent trading after the San Francisco, Ca. manufacturer of network products reported disappointing results for its second quarter.

 

SanDisk Corp., a Milpitas, Ca. maker of flash-memory devices, reported its second quarter net income slipped to $248 million, down from $258 million in the year-earlier. The results, which were hurt by extra items, surpassed Wall Street expectations. Revenue rose to nearly $1.4 billion, up from $1.2 billion a year ago.

 

Seagate Technology PLC’s shares lost almost 17% in recent trading after the Scottsdale, Ca. manufacturer of hard drives reported a 69% plunge in earnings for its fourth quarter on weak gross margins.

 

Silicon Laboratories Inc.’s shares tanked 13% in recent trading after the Austin, Tx. developer of integrated circuits reported a 36% drop in second quarter earnings on weaker margins and lower sales.

 

Stratasys Inc.’s shares lost a quarter of their value in recent trading after the Eden Prairie, Mn. firm reported revenue for its second quarter that was short of analysts’ projections. The firm reported strength at its Fortus prototyping business, where sales were up 67%.

 

Texas Instruments Inc., the Dallas, Tx. manufacturer of semiconductor chips, reported its second quarter net income fell 13%–to $672 million, although the results exceeded Wall Street estimates.  Revenue slipped 1%–to $3.5 billion.

 

TomTomNV, the navigation-systems company, reported a second quarter net loss of $705 million, down from a profit of $49 million in the year-earlier period. The recent results included a nearly $740 million impairment charge. Revenue declined 13%–to about $452 million.

 

Western Digital Corp., an Irvine, Ca. manufacturer of computer storage products, reported its fourth quarter net income sank to $158 million, down sharply from $265 million in the year-earlier period. However, taking out extra items, the results beat expectations on Wall Street. Sales edged up slightly–to $2.4 billion.

 

Xilinx Inc., a San Jose, Ca. manufacturer of programmable semiconductor chips, reported its first quarter net income slipped to $154 million, down from almost $159 million in the year-earlier period. Revenue inched up 3%–to almost $616 million. Operating expenses were up, but Xilinx said that the sales were better than it expected.

 

Volterra Semiconductor Corp.’s shares rose 14% in recent trading after the Fremont, Ca. firm reported better-than-anticipated results in its second quarter.

 

 

Retailers, Restaurants,

Manufacturers of

Consumer Products

 

Agromod Produce Inc., a produce company in McAllen, Tx., is recalling some imported papayas sold under the Blondie, Yaya, Mananita and Tastylicious brand names on worries about salmonella poisoning. Reportedly there have been ten hospitalizations in more than twenty states amid almost 100 reported cases.

 

Altria Group Inc., the big cigarette company, reported its second quarter net profit sank 57%–to $444 million, mostly because of a $627 million charge related to tax issues. Revenue fell almost 6%–to $5.9 billion.

 

Amazon.com Inc., Seattle, Wa., reported its second quarter earnings fell to $191 million, down from $207 million in the year-earlier period. The profit, hurt by heavy spending on expansion moves amid an overall 54% jump in operating costs, nonetheless surpassed Wall Street expectations. Revenue surged to $9.9 billion, up from $6.6 billion in the year-earlier second quarter. The expansion spending includes investments in upgrades of its operations and the addition of fifteen more order-filling centers.

 

Chrysler Group LLCreported a second quarter net loss of $370 million, because of expenses for paying off its debt to the U.S.government which resulted in a $551 million accounting charge. Revenue jumped 30%–to $13.7 billion, with car sales in the U.S.increasing 20%. The Auburn Hills, Mi. carmaker, now majority-controlled by Sergio Marchionne of Italy’s Fiat SpA, predicted it will chalk up a profit of between $200 million and $500 million for the full year, not including debt-repayment costs, on revenue of about $55 billion. Meanwhile, the company is starting up labor talks on a new contract with the United Auto Workers union.

 

Clorox Co.rebuffed, for a second time, investor Carl Icahn’s $10.7 billion buyout offer, saying the bid is inadequate. Clorox, the Oakland, Ca. maker of cleaning items, also said that the bid lacked detail and added that it’s open

to other offers. Mr. Icahn, who owns more than 9% of Clorox, has criticized Clorox’s financial performance and has suggested that if the company doesn’t like his offer it might shop around for a better one.

 

Dave & Busters Entertainment Inc., despite some financial pressures, could get an upgrade from Standard & Poor’s Ratings Services if it completes a planned public offering of as much as $150 million. S&P commented that there’s a 50-50 chance that it might bump up the firm’s rating, perhaps from a B- to B, if the company uses proceeds from the IPO to pare its debt. Dave & Busters, a Dallas, Tx. operator of restaurants, is currently sitting on debt of about $450 million.

 

Dunkin’ Brands Inc.’s shares soared as much as 50% on their first day of trading in its initial public offering, showing that investors are not only interested in Web-company IPOs. Investors apparently have a sweet tooth for the Massachusetts-based donut company, partly because they see growth potential in the firm’s plans to expand westward across the U.S.out of its core market in New England. Dunkin’ Brands, most of whose donut shops are franchised, is reportedly sitting on a significant pile of debt, although the company’s CEO says that the debt level is manageable.

 

Eastman Kodak Co., Rochester, N.Y., reported a widened second quarter loss of $179 million, compared to a $168 million loss in the year-earlier period. Revenue fell 5%–to $1.5 billion. The results, which fell shy of Wall Street estimates, included a sharp jump in sales of consumer inkjet printers, but those sales were more than offset by sagging revenue at Kodak’s digital cameras and film operations. The company added that full-year losses will be in the range of $100 million to $300 million, compared to an earlier estimate that it would lose no more than $200 million and possible would even break even. Operating losses for the year could reach as high as $400 million. Also, Kodak burned through more than $300 in cash during the quarter, partly to cover operating costs and increased material costs. The firm expects to end the fiscal year with a cash balance of $1.6 billion or slightly more.

 

EBay Inc., San Jose, Ca., reported its second quarter net income sank to $283 million, down from $412 million in the year-earlier period, partly because of expenses related to its $2.4 billion acquisition of GSI Commerce Inc. Revenue increased to nearly $2.8 billion, up from $2.2 billion a year ago.

Results were strengthened by robust revenue gains at its PayPal payments unit, where revenue was up 31%–to $1.1 billion. EBay also issued weaker-than-expected earnings guidance for the third quarter.

 

Ford Motor Co.reported its ninth-straight quarterly profit on increased sales, although automotive operating margins slipped a bit on higher material costs. Earnings for the second quarter fell 7%–to $2.4 billion, mostly because of rising prices for raw materials and expenses for developing new products. Sales were up 13%–to $35.5 billion. The Dearborn, Mi. automaker, which is starting up labor talks with the United Auto Workers, added that it further whittled its debt during the quarter, paying down $2.6 billion and reducing its obligations to $14 billion. The company also added $700 million to its cash pile, bringing its cash to $22 billion.

 

Hanesbrands Inc.’s shares lost 9% in recent trading after the Winston-Salem, N.C.apparel maker reported that it will raise prices, for the third time this year, on products like T-shirts and underwear.

 

H.T. Hackney Co., a Knoxville, Tn. logistics grocery distributor, warned that it could cut forty jobs from its staff at its operations in Miami, Fl. after it lost a contract with Walgreen Co. The firm also issued a notice that forty jobs could be lost at its distribution center in Tampa.

 

Lorillard Inc., Greensboro, N.C., is recalling some of its nonmenthol Newportcigarettes, on worries that they may contain bits of plastic.

 

Nash Finch Co., the Minneapolis, Mn. wholesale distributor and supermarket operator, reported its second quarter net profit fell 6%–to $10 million, on a 4.5% slide in sales–to $1.1 billion. Results were affected by extra items and moving part of its food-distribution buying operations to another supplier.

 

Netflix Inc., recently angering subscribers with a hefty price increase on some of its movie-rental packages, issued third quarter revenue guidance

that was less than analysts were expecting. The Los Gatos, Ca. firm conceded that some subscribers may cancel their service in the short term, thus impacting third quarter revenue, but it added that the positive effects of the price hike should show up in the fourth quarter. For its second quarter, Netflix’s profit jumped 55%–to $68 million, on a 52% increase in revenue–to $798 million.

 

NVR Inc., a Reston, Va.homebuilder, reported its second quarter net income slumped to $38.4 million, down sharply from $71.3 million in the year-earlier period. Sales fell 28%–to $696 million.

 

Philip Morris International Inc., with offices in Manhattan, N.Y.and Switzerland, reported its second quarter net income jumped 21%–to $2.4 billion. Revenue, excluding excise taxes, increased 17%–to $8.3 billion.

 

Reynolds American Inc., the Richmond, Va.tobacco company, reported its net income for the second quarter slumped 11%–to $304 million, including $139 million in charges related to litigation. Revenue not including excise taxes inched up 1%–to nearly $2.3 billion.

 

Ruby Tuesday Inc., a Maryville Tn. operator of restaurants and cafeterias, reported its fourth quarter net income sank 34%–to $13.9 million, while revenue rose slightly–to $351 million. The company, suffering from the effects of the weak economy and pressure from competing retailers, reiterated its ongoing goals of boosting same-store sales, reducing costs, improving its margins and maximizing free cash flow.

 

Safeway Inc.’s shares lost more than 9% in recent trading after the California-based supermarket operator reported a slide in margins for its second quarter, despite an increase in earnings that stemmed partly from reducing costs.

 

Seneca Foods Corp., a privately-held Siloam, Ar. processor of private-label foods, signed a memorandum of understanding to merge with Allens Inc., a

Marion, N.Y.firm. Details must be hashed out and a merger would require approval from regulators and shareholders.

 

Sherwin-Williams Co., the Cleveland, Oh. maker of paints and related products, reported second quarter net income of $179 million, down slightly from the year-earlier period. Revenue increased 10%–to almost $2.4 billion. Results were impacted by higher costs for raw materials and weak demand for its products, hence putting pressure on prices it can charge its customers. Sherwin-Williams also warned of weakness for the third quarter.

 

Teavana Holdings Inc., a chain of 180 stores that sell premium loose teas, reported its quarterly net income surge 72%–to $3.3 million, on a 36% jump in sales–to $35 million. Teavana is scheduled for an initial public offering this week.

 

Warner Music Group Corp., the big recorded-music company which is now owned by Access Industries Inc., says it will undertake a plan to reduce costs by between $50 million and $65 million over the next twenty-seven months. The cost savings will stem from restructuring, but Warner also expects that it will also save a lot of money simply by being under private ownership and eliminating the expenses of being a public company.

 

Whirlpool Corp., the BentonHarbor, Mi. appliance manufacturer, will increase prices on its major appliances in its second price hike so far this year, in an attempt to accommodate surging prices for steel, copper and other raw materials. Whirlpool lost $161 million in its second quarter, partly because of charges related to its Brazilian unit. Whirlpool foresees incurring costs for raw materials of upwards of $500 million this year, more than double the figure earlier forecasted. Also, Whirlpool reported a second quarter loss of $161 million, because of a $522 million payment to settle a longstanding legal dispute with a bank in Brazil. Revenue increased 4%–to $4.7 billion, thanks to strength in its markets outside North America. North American sales actually fell 7%.

 

 

Industrial Manufacturers,

Natural Resources

and Energy Firms

 

Badger Meter Inc., the Brown Deer, Wi. manufacturer of water meters, reported its net income slipped more than 2% in the recent quarter–to $7.8 million. However, taking out a gain in the year-ago quarter earnings increased in the recent period. Sales reached more than $75.1 million, a record for the company.

 

Boeing Co., Chicago, Il., reduced projected deliveries of its Dreamliner jets to no more than thirty this year, although it did say that deliveries of the long-delayed planes will begin in the third quarter.

 

C.R. Laurence Co. Inc., Los Angeles, Ca., announced that its U.S. Aluminum unit is now operating after recently acquiring the business from International Aluminum, which earlier filed Chapter 7.

 

Johnson Controls Inc., Milwaukee, Wi., reported third quarter earnings of $357 million. While that was down from $418 million in the year-earlier period, earnings still beat Wall Street expectations. Revenue increased 21%–to $10.4 billion.

 

Kodiak Oil & Gas Corp., Denver, Co., announced that it raised a net $159 million from a share offering. The firm will use proceeds to reduce debt and to fund development and potential acquisitions.

 

Lockheed Martin Corp., the Bethesda, Md.defense contractor, reported its net income in the second quarter fell 10%–to $742 million. The results were

pinched by extra charges for trimming its payroll. The company has said in recent months that it will cut 1,200 jobs at its aeronautics and space-systems operations and another 1,500 positions at its airplane-manufacturing unit. Revenue was up 2%–to more than $11.5 billion and the company upped its guidance for the full year.

 

Nalco Holding Co., which was said to be in talks to merge with Ecolab Inc., is now reportedly in an agreement to be acquired by Ecolab, the St. Paul, Mn. provider of cleaning, sanitizing and infection-control services, for $5.4 billion. Ecolab will also assume about $2.6 billion in Nalco’s debt. Nalco is a big Naperville, Il. manufacturer of chemicals used in the water-treatment, environmental and other companies.

 

Petrohawk Energy Corp., a Houston, Tx. firm with more than a million acres of energy-production property in Texasand Louisiana, officially received a tender offer from North America Holdings II Inc., which is bidding $38.75 a share in cash for the outstanding stock of Petrohawk. North American Holdings is a unit of BHP Billiton Ltd., itself a unit of Anglo-Australian mining giant BHP Billiton Ltd. The offer expires on 8/19.

 

Ultra Clean Holdings Inc.’s shares plunged almost 12% in recent trading after the Hayward, Ca. supplier of subsystems issued a cautious projection for its third quarter, despite strong results in its second quarter.

 

United Technologies Corp,, the Hartford, Ct.heavy-equipment manufacturer, is mulling options for its Rocketdyne rocket-engine unit, including the possibility of selling part of the business, amid uncertainty about the future of the U.S.government’s space program. Rocketdyne is part of United’s Pratt & Whitney engine-manufacturing division, which itself is thinking about making strategic acquisitions or joining partnerships. United bought Rocketdyne six years ago from plane-maker Boeing Co. Recently United Technologies reported a 19% jump in net income–to $1.3 billion–for its second quarter, marking the company’s sixth-straight quarter of double-digit increases in profit. Revenue was up 9%–to $15.1 billion. The results, beating analysts’ expectations, including gains in all six of its main businesses, such as Pratt & Whitney engines and Otis elevators. United Technologies also raised its profit and sales outlook for the full year.

 

USG Corp., the Chicago, Il. maker of gypsum wallboard and other building materials, reported a second quarter net loss of $70 million, slightly better than its $74 million loss in the year-earlier period. Revenue declined slightly–to $761 million. The company’s results have been impacted by the ongoing housing slump.

 

 

Services

Firms

 

Alaska Air Group Inc., Seattle, Wa., reported its second quarter profit plunged 51%–to $28.8 million, partly because of fuel-related losses and other items. Fuel costs alone rose almost 50% from a year ago, although revenue was strong, rising 14%–to $1.1 billion.

 

American International Group Inc., the Manhattan, N.Y.insurer which is considering selling at least part of International Lease Finance Corp. through an initial public offering, tentatively named Bank of America-Merrill Lynch, J.P. Morgan Chase & Co. and Citigroup Inc. to handle the offering. International Lease, which is AIG’s aircraft-leasing business, could have a value of upwards of $10 billion.

 

AMR Corp.’s widened loss for the second quarter stemmed partly from a more than 30% increase in fuel costs, which resulted in the firm shelling out $524 million more for fuel than it did in the year-ago second quarter. AMR, the parent company of American Airlines, lost $286 million for the quarter, compared to an $11 million loss in the year-earlier period. Revenue, however, was strong, rising almost 8%–to $6.1 billion, in line with analysts’ estimates. Looking ahead, AMR, seeking to control costs, announced that it will cancel some flights and discontinue operations at a reservations office in Ireland. And in a strategic cost-cutting move, the Fort Worth, Tx. carrier announced that it placed orders for 460 more-fuel-efficient narrowbody

planes from Boeing Co. and Airbus. Combined, the plane-purchase deals have a value of $38 billion. Some $13 billion of the financing needed is coming directly through Airbus and Boeing, which will cover costs for roughly the first half of the plane deliveries, which will begin in 2013.

 

AT&T Inc.’s attempts to acquire T-Mobile USA has run into further snags, after the Federal Communications Commission extended the process of reviewing the proposed transaction for antitrust implications. One reason for the delay is that AT&T has submitted new economic data that supposedly bolster its arguments about the benefits of the transaction. AT&T earlier agreed to acquire T-Mobile from Germany’s Deutsche Telekom AG for $39 billion.  In addition, the telecom giant reported its second quarter earnings fell 10%–to $3.6 billion. The drop was due to an extra gain in the year-earlier period. Revenue in the recent period was up 2%–to $31.5 billion, although operating margins slipped a bit.

 

Bank of America Corp.isn’t out of the woods yet, but its CEO, Brian Moynihan, recently touted some progress that his company is making. Coming off an $8.8 billion loss for its second quarter, the Charlotte, N.C.banking giant must continue cleaning up its mortgage mess, particularly at its Countrywide Financial Corp. unit in Calabasas, Ca. that it bought three years ago for $2.5 billion but which has caused it $16 billion in losses since the acquisition was completed. Bank of America also has to continue trying to reach various settlements with state and federal officials and faces possible penalties with regard to how it dealt with distressed home-loan borrowers. On the good-news side, bad loans are declining and the company believes that it has the financial wherewithal to deal with its remaining mortgage headaches without having to boost its capital cushion.

 

Central Falls, R.I., said to be teetering toward bankruptcy, is asking its city retirees to concede part of their pensions and benefits, because it can no longer afford to pay for old agreements with police officers, firefighters and others. The city, whose 19,000 residents fill a single square mile, also wants to adjust retirement criteria for city employees, warning that if it doesn’t get concessions the workers will risk losing everything. With an operating deficit of $5 million, Central Fallsjacked up property taxes 20% last year and another 4.5% this year in an attempt to close its budget gap.

 

C&J Energy Services Inc., with an initial public offering to take place this week, might look good to investors, as the Houston, Tx. firm reported first quarter net income of $29.1 million, up from only $2.2 million in the year-earlier period. Revenue surged nearly fourfold–to $127 million. The company specializes in hydraulic fracturing services for unconventional extraction methods of oil and gas.

 

Comcast Corp.’s hopes for getting final approval for taking over the NBCUniversal unit from General Electric Co. look a bit shaky, with a federal judge threatening to hold up court approval. The deal was completed in January after it got the blessing of the Justice Department, but such a merger still requires review by a federal court, and that court is critical of the earlier approval by Justice. Among details, the judge in question is dubious about certain arbitration terms regarding online content that he says are inconsistent with Comcast’s program licensing.

 

DreamWorks Animation SKG Inc.’s shares bumped up almost 5% in recent trading  on news that the Californiamovie studio is in talks to provide streamlining rights to its films to movie-rental company Netflix Inc.

 

Education Sales and Marketing LLC, a Highland Ranch, Co. operator of call centers that handle student enrollment, financial aid and other services, is being acquired by ACD, an outsourcing unit of Xerox Corp., for an undisclosed amount. 

 

E*Trade Financial Corp., which recently agreed to retain Morgan Stanley to help it consider strategic options, has one possibly interested party, with TD Ameritrade Holding Corp.’s directors reportedly discussing the possibility of making a bid to purchase its online-brokerage competitor. E*Trade, Manhattan, N.Y., acceded to looking into strategic options after Citadel LLC, which holds almost 10% of E*Trade, pushed the firm to explore options. E*Trade has a capitalization of about $4.4 billion.

 

FileDen.com, a free file hosting and online storage concern, is being acquired by CX Inc., a cloud storage and data file management company, for

an undisclosed amount. CX is buying FileDen.com from myCloud Holdings Inc., a venture capital investor.

 

Force10 Networks Inc., a San Jose, Ca. provider of data-center and networking services, is in an agreement to be purchased Dell Inc., the Round Rock, Tx. computer maker, for an undisclosed amount. Force10, with operations in sixty countries, has annual sales of about $200 million.

 

Harrisburg, Pa.’s city council rebuffed a financial-recovery plan that had been sponsored by the state of Pennsylvania, despite pressure from the state to accept the plan. The plan’s opponents claim that the plan would leave them holding the bag for more than $300 million in debt payments on a city trash incinerator while basically letting bondholders off the hook. Harrisburg, which started missing its bond payments two years ago, now has about a week to present an alternative plan, with an 8/2 deadline looming.

 

Hulu LLC, the Santa Monica, Ca. video-streaming company, is said to be in preliminary talks to be acquired by Apple Inc., the Cupertino, Ca. iPod maker, which is considering making a bid for the firm. Apple has plenty of financial wherewithal to make a big deal as its sitting on more than $76 billion in cash and investments. Hulu is owned by Walt Disney Co., News Corp.’s Fox Broadcasting, NBCUniversal and buyout firm Providence Equity Partners.

 

Jefferson County, Al., which could vote within days on whether to file for bankruptcy protection, hired Klee, Tuchin, Bogdanoff & Stern LLP, a law firm that represented Orange County, Ca. during its bankruptcy filing. At this point it’s still possible that the county can work out a deal with creditors out of court on more than $3 billion of sewer bonds that got the county into trouble. Bondholders are offering to forgive about $1 billion of the debt and if that happens the county might try to refinance the remainder.

 

NBCUniversal Media LLC, New York, N.Y., which is majority-controlled by cable firm Comcast Corp. of Philadelphia, Pa., offered an exchange of $9.1 billion in notes related to Comcast’s buying a controlling interest in it.

 

New York Times Co.expressed optimism about its digital strategy, saying it gained nearly a quarter of a million paying subscribers for its online editions. Investors liked the news, pushing up the Manhattan, N.Y.newspaper publisher’s shares 2%, even as the firm continued reporting losses and drops in print-ad revenue. For its second quarter the company reported a net loss of $119 million, largely because of a $161 million writedown of the value of its regional newspapers. Total revenue slipped 2%–to $577 million, including a more than 6% slide in revenue from print advertising.

 

Northern Trust Corp., Chicago, Il., said that it’s exploring options that might lead to a restructuring, although it provided no details about what a cost-cutting strategy might entail. The firm also reported that its profit for the second quarter sank 24%–to $152 million, on a 2% slide in revenue–to $945 million. The quarter included $18.8 million in extra costs, after tax, related to acquisition and integration expenses.

 

Robert Half International Inc.’s shares surged 15% in recent trading after the big Menlo Park, Ca. staffing and business consulting company reported that its earnings soared threefold in the second quarter.

 

Royal Bank of Scotland Group PLC, the big British-based banking firm, has started the process of trying to sell its RBS Aviation Capital plane-leasing unit, which analysts believe could bring in about $8 billion. 

 

Six Flags Entertainment Corp., the Grand Prairie, Tx.-based theme park operator, reported a second quarter profit of almost $35 million, thanks to better attendance at its parks and more spending by visitors. In the year-ago quarter the company’s profit was $743 million, but that figure was inflated by special accounting stemming from its emergence from Chapter 11 bankruptcy protection. Revenue increased 5%–to $339 million. Six Flags also made some progress on paring down its net debt during the recent quarter, ending the period with $829 million in debt, down from $896 million in March.

 

SLM Corp., more commonly known as Sallie Mae, reported a second quarter net loss of $6 million, down from a $338 million profit in the year-earlier period. The recent results were hurt by a $414 million derivatives loss. Core earnings, taking out extra items, rose to $260 million, compared to $211 million a year ago. Revenue fell to $868 million, down from $896 million in the year-ago second quarter.

 

Thomson Reuters Corp.is reshuffling certain management, saying that five more executives are departing, including its top business executive for news operations. The shakeup, involving some consolidation, is part of a streamlining effort for the New York, N.Y.financial-data publishing firm.

 

Transatlantic Holdings Inc., Manhattan, N.Y., received a tender offer from Validus Holdings Ltd., which is offering $8 a share in cash and stock to acquire the outstanding stock of Transatlantic. The offer expires on 9/30.

 

Travelers Cos., Manhattan, N.Y., reported a second quarter loss of $364 million, including almost $1.1 billion in disaster losses from bad weather during the spring.

 

Travelzoo Inc.’s shares shed more than a third of their value in recent trading after the shopping-bargain Web company reported disappointing earnings for the second quarter.

 

United Continental Holdings Inc.in Chicago, Il. said that it canceled about two dozen Continental flights because pilots are calling in sick amid what pilot union representatives are calling the slow pace of labor negotiations. Also, the carrier reported its second quarter net income declined 12%–to $538 million, due to a 45% surge in the cost of jet fuel. Revenue increased 10% in the quarter–to $9.8 billion.

 

US Airways Inc., Tempe, Az., reported its second quarter net income sank 67%–to $92 million, largely because of increased jet-fuel costs. Revenue increased more than 10%–to $3.5 billion.

 

Warburg Pincus, Manhattan, N.Y., is aiming for a $12 billion value for its next global fund, which will come to the market soon after Labor Day.

 

Websense Inc.’s shares sank 10% in recent trading after the San Diego, Ca. Internet security firm, while enjoying stronger billings, reported second quarter earnings that came in shy of Wall Street expectations. 

 

Wells Fargo & Co., San Francisco, Ca., agreed to pay $85 million to settle civil charges that its mortgage unit falsified loan paperwork and nudged borrowers toward taking subprime mortgages with higher rates of interest during the housing boom that preceded the mortgage meltdown. Between 3,700 and 10,000 people who signed up on the mortgages between 2004 and 2008 with Wells Fargo Financial, which has since been shut down, could receive compensation. Wells Fargo neither admitted nor denied any wrongdoing. Separately, Wells Fargo said it wants to reduce expenses by $1.5 billion by integrating its operations with those of Wachovia and by following through with an overall cost-reduction program.

 

YRC Worldwide Inc.is wrapping up its restructuring plan that calls for a change in leadership. Chairman and CEO Bill Zollars is stepping down, as planned, now that the restructuring is nearing completion, and a new board of directors will take over. Financially, the restructuring involves net cash proceeds from $100 million in new notes and a $400 million asset-backed loan. Also, the Overland Park, Ks. trucking firm reported a quarterly loss of $38.7 million. While the year-earlier loss was only $9.5 million, that’s because the year-ago results were inflated by an $83 million after-tax benefit. Revenue for the recent quarter rose 12%–to almost $1.3 billion. YRC added that its business will continue recovering through the year, but there are some signs that improvement is already taking place. For example, in the recent quarter the firm reported operating income of $13.7 million, its first positive operating result since 2008.

 

 

Healthcare

Companies

 

AmSurg Corp., a Nashville, Tn. company that buys, develops and operates ambulatory surgery centers in partnership with physician practice groups, reported its second quarter earnings fell 11%–to $11.6 million. Revenue came in at nearly $188 million, slightly above analysts’ estimates.

 

C.R. Bard Inc., a Murray Hill, N.J. manufacturer of medical devices, reported a second quarter loss of $47.8 million, down from a nearly $125 million profit in the year-earlier period. The recent results were weighed down by a $195 million charge related to litigation over its hernia mesh implants. Revenue increased 8%–to $725 million.

 

Dynavax Technologies Corp.’s shares shed 19% in recent trading after the Berkeley, Ca. biopharmaceuticals firm’s hepatitis B vaccine did poorly in a recent study.

 

Eli Lilly & Co., the Indianapolis, In. drug company, reported its second quarter earnings slipped 11%–to $1.2 billion, partly because of a 16% increase in marketing, selling and administrative costs. The results were also hampered by $132 million in restructuring charges related to its plans to cut costs by $1 billion by the end of this year. Revenue was up 9%–to almost $6.3 billion.

 

Emdeon Inc., a Tennessee-based provider of healthcare-related software technology and services, is reportedly in advanced talks to be acquired by Blackstone Group in a $3 billion deal that would include debt assumption. Emdeon, currently capitalized at almost $1.2 billion, faces a debtload of more than $950 million. Hellman & Friedman LLC and General Atlantic LLC together own about two-thirds of Emdeon.

 

Express Scripts Inc., the St. Louis, Mo.-based pharmacy benefits manager, reported its second quarter net income increased 15%–to $334 million, although revenue edged up 1%–to $11.4 billion. The company’s profit gain was helped by a reduction in costs following the integration of an acquisition. Also, Express Scripts just announced a $29 billion merger deal with Medco Health Solutions Inc., a FranklinLakes, N.J. pharmacy benefits manager. For its part, Medco reported its second quarter profit declined 4%–to $325 million. Revenue was up 4%–to $17.1 billion. Medco’s quarterly results were impacted by extra costs related to its acquisition of UnitedBioSource Corp. for $730 million.

 

Healthways Inc., Franklin, Tn., reported its second quarter earnings slumped more than 50% from a year ago–to $5.8 million. Revenue fell to just under $170 million, compared to $175 million in the year-earlier period. Nonetheless, the results were in line with expectations.

 

Icagen Inc., Durham, N.C., is being bought out by Pfizer Inc., the Manhattan, N.Y.drug firm, which said it will buy up the 89% that it doesn’t already own of the pharmaceutical firm for just under $50 million. The two firms, which expect the merger to be completed by the end of the year, have been collaborating on developing drugs.

 

Lincare Holdings Inc., a Clearwater, Fl. provider of at-home oxygen and respiratory services, reported its second quarter profit declined 8%–to $42.8 million, shy of Wall Street expectations. Revenue increased 7%–to $449 million, beating Wall Street estimates.

 

Medco Health Solutions Inc., a FranklinLakes, N.J. pharmacy benefits manager, is in an agreement to be purchased by Express Scripts Inc., the St. Louis, Mo.-based pharmacy benefits manager, in a transaction valued at $29.1 billion. The combined company will have revenue of more than $100 billion and have enormous clout to negotiate deals with drug manufacturer and wholesalers. The merger will likely get tough scrutiny from antitrust officials.

 

Pfizer Inc., Manhattan, N.Y., is reportedly in favor of the strategy of spinning off its animal health operations instead of selling the unit, since a sale could lead to a hefty tax bill, not to mention possible antitrust complications. It could take several months to get ready for spinning off the unit, which some think could be valued at between $12 billion and $15 billion. The firm is also mulling a possible spinoff or sale of its nutritionals business.

 

Proxsys LLC, a Birmingham, Al. provider of cloud-based care coordination services between doctors and hospitals, is in an agreement to be purchased by athenahealth Inc. of Watertown, Ma. in a deal valued at at least $28 million. The deal could involve another $8 million in milestone payments.

 

Questcor Pharmaceuticals Inc.’s shares surged 25% in recent trading after the Union City, Ca. firm reported better-than-anticipated results for its second quarter, bolstered by strong sales of its multiple sclerosis treatment.

 

St. Jude Medical Inc., the big Minnesota-based medical products company, is laying off 450 workers at its Swedish operations and moving the production of its cardiac-rhythm-management products to facilities in Malaysiaand Puerto Rico. The company has faced sliding sales of its cardiac-rhythm devices in the U.S., although overseas sales have been increasing.

 

Valeant Pharmaceuticals International Inc., a Mississauga, Ontario-based drug firm, has reportedly approached MedaABabout possibly making an offer to acquire the Swedish-based maker of specialty drugs, in a bid that could be worth more than $4 billion. Meda, which makes respiratory, cardiology and other drugs, last year had revenue of more than $1.7 billion.

 

Victory Pharma Inc., a San Diego, Ca. specialty pharmaceuticals firm being acquired by the U.S.unit of Japan’s Shionogi Inc., is cutting 179 jobs from its staff after it completes the sale of its marketed products and related assets. The firm’s facility in North Carolinawill close.

 

 

 

 

CREDITORS' RIGHTS

 

LAST WEEK'S QUESTION:What are impaired claims in a bankruptcy proceeding?

            ANSWER: Impaired claims are claims which will have their contractual rights modified or which will be paid less than the full value under a Chapter 11 reorganization.

 

THIS WEEK'S QUESTION:Explain the primary purpose of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005.

            ANSWER NEXT ISSUE