Fisher Capital Management: Government Bond Markets Global Outlook Fisher Capital Management Seoul

Government Bond Markets Global Outlook Fisher Capital Management Seoul - Conditions in the government bond markets have remained very difficult over the past month, and there have been further falls in some of the minor markets, especially in the euro-zone, because of continuing fears about sovereign debt defaults. The agreement reached by the member countries of the euro-zone to combine with the

IMF to provide any necessary support to enable Greece to refinance its maturing debts and avoid a default has had a poor response in the markets; but at least Greece has been able to make further bond issues; and the gilt edged market has coped fairly well so far with a disappointing Budget statement that has left any real attempt to resolve the serious UK debt problems until after the general election. But the sudden weakness in the world bond markets after a series of disappointing auctions has once again increased the tensions.

Our position remains unchanged; any existing exposure to bonds should be further reduced in favor of US & Euro equities.

Fisher Capital Management Seoul, South Korea - The global economic recovery is developing slowly, and so short-term interest rates

are likely to remain at low levels for a considerable period. It is also possible that

the “fudged” agreement amongst member countries of the euro-zone will provide

an opportunity for the introduction of the necessary austerity measures; and that

a new government will finally begin to address the debt problems in the UK. But

the risks in the situation are still increasing, sovereign debt defaults may still occur,

and the single currency system in the euro-zone may not be sustainable in its present

form. Higher bond yields therefore appear unavoidable; prospects for all the bond

markets are unattractive.

Developments in the bond market over the past month have clearly illustrated the

need for caution. The US economy continues to recover. The Fed has left shortterm

interest rates unchanged, and has indicated that they will remain “at exceptionally

low levels for an extended period”. This tended to enhance the “safe haven” status

of the US equity market for most of the past month, as conditions continued to

deteriorate in other bond markets.

Fisher Capital Management Seoul, South Korea - Most of the available evidence supports the view that the economic recovery is

continuing, but only at a slow pace. The unemployment rate remains close to 10%,

and the housing sector is still depressed, with both new housing starts and sales of

existing homes weakened still further by adverse weather conditions. However

retail sales are holding up fairly well, and manufacturers are beginning to increase

capital expenditures and inventories, and so there is a general expectation that

growth in the first quarter will be around a 2% annualized rate.

Fisher Capital Management Seoul, South Korea - The Fed has confirmed that its buying programmed for mortgage-backed securities

has ended, and that it may be moving slowly towards re-selling some of these

securities; but it seems to be in no hurry, and so both the economic background,

and the position of the central bank, remain broadly supportive.

The situation facing investors in the mainland European bond markets is more

serious. The economic background is improving, with the weaker euro providing

considerable support in export markets, and so the area continues to move out of

recession. But progress is slow, and so the European Central Bank is maintaining

very low short-term interest rates, and providing support. However the massive

fiscal deficits are threatening to overwhelm the bond markets and to lead to sovereign

debt defaults, and so investors have continued to switch from the bonds of the

weaker countries into those of the stronger countries, and have widened the yield

spreads across the markets. The latest Greek bond auctions have received only a

very moderate response, and there is considerable uncertainty whether even the

markets of the stronger countries are adequately discounting the risks in the situation.

Fisher Capital Management Seoul, South Korea - The available evidence on the performance of the euro-zone economy is mixed,

but slightly more encouraging. The weakness in domestic demand is continuing,

and retail sales volumes are disappointing in most member countries; but the

manufacturing sector, especially in Germany, is much more buoyant, with exports

providing most of the momentum. The latest Ifo index of business sentiment in

Germany is sharply higher, and other countries are also sharing in the improvement.

Analysts are therefore forecasting growth around the 0.5% level in the first quarter

of the year.

Fisher Capital Management: Government Bond Markets Global Outlook Part2

Fisher Capital Management: Government Bond Markets Global Outlook Part 2 - Our position remains unchanged; any existing exposure to bonds should be further reduced in favor of US & Euro equities.

The European Central Bank appears to share this view, although it has warned that the recovery “is likely to remain uneven”, and has kept short-term rates at very low levels. The bond markets have therefore continued to receive considerable support from the economic background and the actions of the central bank.

Fisher Capital Management Seoul, South Korea: However, these factors have been much less important than the fears about the debt problems in Greece and in other weaker members of the euro-zone. After considerable

prevarication, due primarily to strong German opposition to a bail-out; an agreement

has been reached amongst the member countries that, in conjunction with the IMF,

they will provide support for Greece if this becomes necessary to prevent a default

on its sovereign debts.

But the details of the agreement are very vague, and there is certainly no guarantee

that the country can carry out its promises to introduce significant reductions in

spending levels to reduce the size of its debts. The agreement has helped the country

to issue a further ¤5 billion bond; but it was forced to offer an interest rate of 5.9%

on a seven-year bond, 325 basis points above the equivalent German bund, and

that issue has subsequently moved to a substantial discount. Conditions have also

been made worse by the downgrade in Portugal’s credit rating, and so the pressures

on the bond markets are continuing.

Fisher Capital Management Seoul, South Korea: The gilt edged market has coped fairly well so far with the latest weakness in the

bond market, an inadequate response in the latest Budget to the debt problems in

the UK, and a warning from the Fitch rating agency that the government’s timetable

for reducing the fiscal deficit was “frankly too slow”, and that the country’s

credit rating was at risk. The economic recovery remains very slow, and the Bank

of England is holding short-term interest rates close to zero, so the market is

receiving some support; but in all the circumstances it is perhaps surprising that

it has managed to perform so well.

Fisher Capital Management Seoul, South Korea: The economic background in the UK remains depressed, but is slowly improving.

Retail sales bounced back strongly; the public sector continued its recruitment

programmed; and there has been a pickup in activity in both the manufacturing and

service sectors of the economy.

It was not surprising therefore that the Bank of England kept short-term interest

rates unchanged at the latest meeting of its Monetary Policy Committee and even

suggested that it would be prepared to reactivate its quantitative easing programmed

if this proved to be necessary. But this may not be enough to sustain gilt edged

prices at current levels.

Fisher Capital Management Seoul, South Korea: The latest Budget statement is forecasting a slightly lower fiscal deficit of £167 billion in the 2009/10 fiscal year, and a halving of the deficit by 2013/14; but there

is considerable skepticism in the markets about the growth assumptions underlying

the figures, and about the willingness of the politicians to address the real problems

involved in reducing the deficit. If there is no credible plan to achieve this reduction,

the country may well lose its AAA credit rating. Prospects have therefore become

even more uncertain, and a move to higher yield levels seems unavoidable.

Fisher Capital Management Seoul, South Korea: The Japanese bond market is slightly weaker over the past month. It is likely that this year, for the first time, bond issuance may provide greater support for the fiscal

deficit than tax revenues. This has already led to a downgrade on Japanese public

debt by Standard and Poor’s, and with new bond issuance this year estimated to

reach ¥44,300 billion, and to reach ¥55,300 billion by 2013, further downgrades

seem likely. Japanese institutional investors are used to financing massive deficits,

but it seems unlikely that deficits of this size can be adequately financed at present

yield levels. Prospects for the Japanese market therefore remain unattractive.

Fisher Capital Management- Financial Market August 2010

Fisher Capital Management- Financial Markets: Sentiment in the financial markets has improved

over the past month. The global economic recovery is continuing,

so far there have been no sovereign debt defaults, and there has

been a modest recovery in the euro. Investors and traders therefore

appear to have concluded that the gloom was overdone.

But there has been evidence of a worsening situation in Spain, and

the decision by the Chinese authorities to adopt a “more flexible”

towards renminbi has also raised some concerns about the growth

prospects for the Chinese economy.

Fisher Capital Management- Equity Markets: All the major equity markets, and the emerging

markets, have improved over the past month. Wall Street has outperformed

markets elsewhere because of some welcome economic

data; there have been strong gains in most of the mainland European

markets as the sovereign debt crisis has appeared to ease; the UK

market has welcomed the measures by the new coalition government

to address the problems of the huge UK fiscal deficit; and the

Japanese market has also moved slightly higher. Corporate results

have been satisfactory; and this has helped to improve sentiment

amongst investors.

Government Bond Markets have had another unusual month. The

sovereign debt crisis might have been expected to lead to a general

weakness in bond markets; but the main effect has been to produce

aggressive switching for the “weaker” markets to the “stronger”

ones, and a further widening of the yield curve.

As a result the major markets are unchanged or only slightly lower

at a time when the “weaker” markets, especially in Southern Europe,

have continued their sharp declines. Slow economic growth and

low short-term interest rates are continuing to provide support.

Currencies: The improvement in sentiment in the markets has led

to a movement of funds out of the “safe havens” of the dollar and

the yen into commodity-related currencies and “riskier” assets.

Both the dollar and the yen are therefore slightly weaker over the

month; and this movement has also eased some of the pressure on

the euro, and allowed it to recover.

Sterling has also improved as the markets have welcomed the

measures introduced by the new UK government to reduce the

fiscal deficit.

Fisher Capital Management- Shrt-Term Interest Rates: There have been no changes in shortterm

interest rates over the past month in the major financial

markets.

Fisher Capital Management- Commodity markets: have produced a mixed performance over the

past month, with some weakness in base metal prices, but strong

gains in the prices of cocoa, coffee, oil and precious metals.

Fisher Capital Management Headlines: Lehman, Tribune, Fisher Island, Quigley, AAI: Bankruptcy - Businessweek

(This report contains items about companies both in bankruptcy and not in bankruptcy. Adds Fisher Island and Quigley in Updates, Aryx in Filing Possible and Shearer’s in Downgrade.)

March 23 (Bloomberg) -- The business of trading claims against bankrupt companies will virtually vanish if Lehman Brothers Holdings Inc. confirms a Chapter 11 plan this year.

Lehman and its brokerage unit were responsible for almost $38.7 billion in traded claims during the past year, according to data compiled from court records by SecondMarket Inc. The companies in second and third places each had traded claims amounting to 2 percent of Lehman’s total.

Those companies, old General Motors Corp. and Mesa Air Group Inc., had claim trades of less than $800 million apiece in the period, according to New York-based SecondMarket, which describes itself as the largest secondary market for illiquid assets.

In the past few months, the trend has been toward larger dollar amounts and fewer trades, not surprising given the declining numbers of major Chapter 11 filings.

In February, $3.47 billion of claims changed hands in 524 transfers, compared with $2.55 billion in face amount on 636 trades in January. Lehman’s $2.72 billion in deals accounted for 78 percent of February’s total. Mesa followed with $551 million in face amount.

The number of reported trades in February was the fewest since June 2009, SecondMarket said. The 45 companies with traded claims were the fewest in two years.

Updates

Aurelius May File LBO Suits to Beat Statute of Limitations

Aurelius Capital Management LP plugged what it saw as a loophole in the ability to file lawsuits if the bankruptcy judge doesn’t sign a confirmation order approving the reorganization plan proposed by Tribune Co. by June.

Aurelius, one of the proponents of a competing plan, contends it automatically had the right this year to file lawsuits against shareholders who sold their stock in the 2007 leveraged buyout. Tribune lost the right to recover $8.2 billion in stock-redemption payments by failing to file suits in December as the two-year window for the bankrupt company closed, Aurelius said.

Aurelius took the position that Tribune’s failure to sue abandoned the claims, allowing creditors to sue in their own right.

At a hearing yesterday, the bankruptcy judge said he would allow the creditors to file suit to ensure their claims aren’t lost when the four-year statute of limitations runs out in June. The lawsuits still can’t go ahead until completion of the confirmation trial over Tribune’s plan, the judge said.

Other protective lawsuits, filed late last year by the creditors’ committee, are similarly on hold pending the outcome of the confirmation fight.

At yesterday’s hearing, the bankruptcy judge authorized insurance companies to pay defense costs in various lawsuits arising from the LBO. Tribune said it has $200 million in so- called directors’ and officers’ liability insurance coverage.

The bankruptcy judge held two weeks of trial to decide whether to confirm the Tribune plan or the competing Aurelius proposal. The trial will resume April 11. The judge warned the warring parties that he may confirm neither plan and appoint a Chapter 11 trustee instead.

Aurelius is the largest holder of debt predating the 2007 leveraged buyout. Three indenture trustees are also proponents of the competing plan, under which lawsuits would continue after plan confirmation to recover damages from alleged fraudulent transfers that occurred along with the LBO.

The company’s plan is co-sponsored by the official creditors’ committee and senior lenders Oaktree Capital Management LP, Angelo Gordon & Co. and JPMorgan Chase & Co. Tribune’s plan would largely impose settlements over claims arising from the LBO.

Tribune is the second-largest newspaper publisher in the U.S. It listed $13 billion in debt for borrowed money and assets of $7.6 billion in the Chapter 11 reorganization begun in December 2008. It owns the Chicago Tribune, Los Angeles Times, six other newspapers and 23 television stations.

The case is In re Tribune Co., 08-13141, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Control of Fisher Island Disputed in Court Filing

The involuntary Chapter 11 petition filed March 17 against a developer on Fisher Island, Florida, was a “last ditch effort to maintain” claims to ownership, according to a bankruptcy court filing yesterday by lawyers who said they represent the actual owners.

A different law firm, saying it represents the company, filed papers on March 21 consenting to being in Chapter 11. The firm claiming to represent the true owners contends that the six creditors who filed the involuntary petition aren’t “actual creditors.”

A lawsuit is already pending in Florida state court to decide who properly is in control of the company. The state- court judge was scheduled to hold a March 29 hearing on a motion for summary judgment to decide the issue. Should the motion fail, a trial is set for June, according to yesterday’s bankruptcy court filing.

The pleading yesterday asks the bankruptcy judge in Miami to invalidate the consent to being in Chapter 11 and allow the state court action to proceed and decide who controls the company.

There are $100 million in legitimate claims for borrowed money and AIG Annuity Insurance Co. is one of the lenders, according to the filing.

The creditors who filed the involuntary petition said they are collectively owed $32.4 million. They also seek the appointment of a Chapter 11 trustee.

The first-filed case is In re Fisher Island Investments Inc., 11-17047, U.S. Bankruptcy Court, Southern District of Florida (Miami).

Pfizer, Asbestos Claimants Have New Plan for Quigley

Quigley Co., a non-operating subsidiary of Pfizer Inc., announced this week that a final settlement was reached between Pfizer and an ad hoc committee representing 40,000 asbestos claimants who claim they were injured by Quigley products.

The bankruptcy court in Manhattan scheduled a hearing on April 5 to consider approval of the so-called plan support agreement between Pfizer and the committee.

The settlement avoids holding a hearing in April on the committee’s motion to dismiss the Quigley reorganization that began in September 2004. The motion came in response to a ruling by the bankruptcy judge in September refusing to confirm Quigley’s reorganization plan.

The judge determined that the plan was filed in bad faith and wasn’t feasible. Objectors argued that Quigley’s bankruptcy was being used improperly to shield Pfizer from liability.

Even though Quigley’s plan was accepted by the required majorities of creditors, the bankruptcy judge found that improper incentives were given to some creditors to obtain their “yes” votes. Through the plan, including contributions from Pfizer, $757 million would have been distributed, the disclosure statement said.

Pfizer and the ad hoc committee agreed on a revised Chapter 11 plan. The new disclosure statement is yet to be filed. The new plan cures the defects the judge identified in September, according to court papers.

Before the plan can be implemented, creditors and asbestos claimants must vote after the judge approves a new disclosure statement. To read Bloomberg coverage, click here.

Quigley filed under Chapter 11 to deal with 500,000 asbestos claims.

The case is In re Quigley Co., 04-15739, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

Paulson Fixes Loopholes in Lehman-Bankhaus Agreement

Paulson & Co. was among the group of creditors that found a loophole in a proposed agreement under which Lehman Brothers Holdings Inc. would pay $957 million to the German insolvency administrator for Lehman Brothers Bankhaus AG for notes in the face amount of $1.54 billion.

Paulson objected privately to Lehman, saying the German administrator could earn almost $100 million if certain unanticipated events were to occur. The loophole was fixed, Paulson said in a court filing.

The hearing for approval of the note-purchase agreement is tomorrow. For Bloomberg coverage, click here. For details on the agreement with the administrator, click here for the March 3 Bloomberg bankruptcy report.

A June 28 hearing is scheduled for approval of disclosure statements explaining the competing Chapter 11 plans. Paulson has a plan on file proposing substantive consolidation to compete with Lehman’s plan. Lehman is seeking a confirmation hearing on Nov. 17 for approval of one of two plans.

The Lehman holding company filed under Chapter 11 in New York on Sept. 15, 2008, and sold office buildings and the North American investment-banking business to Barclays Plc one week later. The Lehman brokerage operations went into liquidation on Sept. 19, 2008.

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

Boeing Says Alabama Aircraft Owes $8 Million Secured

If Boeing Co. is correct and has $8 million in claims against Alabama Aircraft Industries Inc., the Alabama-based aircraft-repair facility may not be able to reorganize.

Boeing, based in Chicago, said in court papers last week that it subcontracted heavy maintenance on U.S. Air Force tankers to AAI. Boeing says AAI was late in completing work in “many instances” and was half a year behind in some.

Boeing wants the bankruptcy court in Wilmington, Delaware, to give it protection for the progress payments it is required to make to AAI for the four tankers still being repaired. Contending its rights of setoff and recoupment give it the status of a secured creditor, Boeing wants a first lien on payments it made after bankruptcy and a subordinate lien on AAI’s other assets.

The dispute with Boeing is scheduled for an accelerated hearing tomorrow in bankruptcy court.

AAI has a motion pending to terminate the existing collective-bargaining agreement with the United Auto Workers union. Without contract and pension relief, AAI says the business isn’t feasible.

Previously known as Pemco Aeroplex Inc., AAI provides scheduled maintenance for U.S. military aircraft. The company operates under a long-term lease at the Birmingham International Airport in Alabama, chiefly maintaining and repairing transport, tanker and patrol aircraft.

Pension Benefit Guaranty Corp. was listed as having the largest unsecured claim at $68.5 million. A fund affiliated with Tennenbaum Capital Partners LLC is owed $2.5 million on a note. Assets were on the books for more than $32 million in September, according to a court paper.

The case is In re Alabama Aircraft Industries Inc., 11- 10452, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Former Fuddruckers Owner Set for June 9 Confirmation

The former owner of the Fuddruckers restaurant chain received approval on March 21 for the disclosure statement explaining the liquidating Chapter 11 plan. The confirmation hearing for approval of the plan is scheduled for June 9.

The bankruptcy judge authorized the creditors’ committee to file two lawsuits seeking to recharacterize claims as equity or to subordinate them to the claims to other creditors.

The committee is attacking three claims for $28.9 million filed by Brosna International LLC. Michael Cannon is the other target on account of two claims seeking more than $5 million.

Restaurant operator Luby’s Inc. bought the Fuddruckers restaurant chain in July for $63 million. The Fuddruckers chain then changed its name from Magic Brands LLC to Deel LLC and filed a liquidating Chapter 11 plan in January. For details of the plan, click here for the Jan. 20 Bloomberg bankruptcy report.

After closing stores, Austin, Texas-based Magic Brands had 62 company-owned Fuddruckers locations operating in 11 states. It also owned the Koo Koo Roo restaurant brand, with three sites in California. Assets were less than $10 million while debt was less than $50 million, according to the petition.

The Koo Koo Roo stores were in bankruptcy a second time.

There were 135 Fuddruckers restaurants in 32 states owned by franchisees that weren’t in the bankruptcy.

The case is In re Deel LLC, 10-11310, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Nancy Rapoport to Be Station Casinos Fee Examiner

Nancy B. Rapoport, a law professor at the University of Nevada, Las Vegas, was named this week to serve as the fee examiner in the reorganization of Station Casinos Inc.

The company’s Chapter 11 plan was approved by a confirmation order in August in U.S. Bankruptcy Court in Reno, Nevada. The hearing for final approval of professional fees won’t be held for several months, Rapoport said in an e-mail.

Rapoport previously served as the court’s expert in evaluating the fees in the reorganizations of Pilgrim’s Pride Corp. and Mirant Corp. Rapoport is an expert on ethical issues in bankruptcy cases.

For details of the Station Casinos plan, click here for the July 29 Bloomberg bankruptcy report.

Station Casinos filed under Chapter 11 in July 2009, with 13 properties in Las Vegas plus five joint ventures. It also operated casinos for American Indian tribes. Station’s debt resulted from a leveraged buyout in November 2007 by Feritta Colony Partners LLC.

The case is In Re Station Casinos Inc., 09-52477, U.S. Bankruptcy Court, District of Nevada (Reno).

Constar Reports Losses in Second Reorganization

Constar International Inc., a manufacturer of blow-molded plastic beverage containers, filed operating reports for the first two months of the second Chapter 11 reorganization in two years.

For the last 20 days in January following the Chapter 11 filing, the net loss was $35.8 million, largely because of $30.6 million in “reorganization items.” Sales for Jan. 11 through Jan. 31 were $20.1 million.

In February, the net loss was $2.6 million on sales of $27.2 million. Operating losses were $1.5 million in February and $1.6 million in January.

Constar’s disclosure statement was approved in February. The confirmation hearing for approval of the plan is set for April 25.

The prepackaged plan calls for holders of 75 percent of the $220 million in senior secured floating-rate notes that survived the prior bankruptcy to convert their debt into a new $70 million term loan and $30 million of convertible preferred stock.

In the first reorganization, $175 million of 11 percent subordinated notes were exchanged for all of the new stock. The stock given out last time is being extinguished this time. For details of the new plan, click here for the Jan. 12 Bloomberg bankruptcy report.

The Sept. 30 balance sheet for Philadelphia-based Constar listed assets of $325 million and liabilities of $321 million. The new petition said assets are $418 million with debt of $414 million.

The new case is In re Constar International Inc., 11-10109, U.S. Bankruptcy Court, District of Delaware (Wilmington). The prior reorganization was In re Constar International Inc., 08- 13432, in the same court.

Filing Possible

Aryx Therapeutics Gives Up for Lack of FDA Approval

Aryx Therapeutics Inc. said it will make an “orderly disposition of assets” or possibly file for Chapter 7 liquidation following the delay in regulatory approval for Stage 3 testing of a drug for gastrointestinal disorders.

Aryx, based in Fremont, California, said earlier this month that new funding fell through after the announcement of the testing delay. The company decided at the time to wind down operations for lack of funding.

Lighthouse Capital Partners V LP, the secured lender, declared a default and is demanding to take possession of the assets.

Aryx’s balance sheet showed assets of $6 million and liabilities of $13.7 million on Sept. 30. The company is yet to generate revenue.

New Filing

Puerto Rico Hospital Files Chapter 11 to Keep Lights On

San Juan Bautista Medical Center Corp., the owner of a 375- bed teaching hospital in Caguas, Puerto Rico, filed for Chapter 11 protection on March 18 in Old San Juan to stop the power company from shutting off electric service.

Disputes with Puerto Rico Energy & Power Authority date back to 2002, according to court papers. On average, 85 beds are occupied each day.

The hospital operates in conjunction with the medical school named Escuela de Medecina San Juan Bautista. The medical school isn’t in bankruptcy.

Debt exceeds $10 million, according to the petition.

The case is In re San Juan Bautista Medical Center Corp., 11-02270, U.S. Bankruptcy Court, District of Puerto Rico (Old San Juan).

Bankruptcy Podcast

New York Times-Madoff, Blockbuster, Tribune: Bankruptcy Audio

The Bloomberg bankruptcy podcast opens with a discussion of why The New York Times may turn the liquidation of Bernard L. Madoff Investment Securities Inc. into a test case on whether court pleadings can be kept secret. Disputes between the Madoff trustee and New York Mets owner Fred Wilpon are also analyzed. We ask whether suppliers of Blockbuster Inc. will pursue an investigation to learn when the company realized it could no longer pay for goods supplied after bankruptcy. Bloomberg Law’s Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle conclude by wondering whether Tribune Co. will become a case where the bankruptcy judge refuses to approve a so-called cramdown settlement. To listen, click here.

Downgrade

Mistral’s Snack-Food Maker Shearer Lowered to B- by S&P

Snack-food producer Shearer’s Foods Inc. sustained a one- notch downgrade when Standard & Poor’s lowered the corporate and senior secured ratings to B- yesterday.

S&P said headroom under loan covenants will be “very tight” for the quarter ending this month. S&P predicts that bank lenders won’t recover more than 70 percent in the event of payment default.

Following the Snack Alliance acquisition one year ago, S&P said earnings before interest, taxes, depreciation and amortization are 21 percent below budget. The acquisition increased revenue by more than 75 percent, S&P said.

Shearer’s, based in Brewster, Ohio, is the largest kettle chip producer in the U.S. It was acquired in January 2008 by Mistral Equity Partners.

Advance Sheets

Refusing to Settle Not Contempt of Mediation Order

Although a bankruptcy court can force someone to mediate, it can’t hold a party in contempt for failing to settle, U.S. District Judge William Pauley III held on March 18 in reversing a ruling by U.S. Bankruptcy Judge Cecelia Morris.

Wells Fargo Bank NA was ordered to mediate. There was an impasse soon after mediation began. Following a report by the mediator to the court, the bankruptcy judge conducted a hearing and eventually held the bank and its lawyer in contempt for failing to mediate in good faith.

In reversing, Pauley began his analysis by saying that “mediation is typically a voluntary process.” He then said the trial court can neither “force a party to settle” nor “coerce a party into making an offer to settle.”

The bank was “within its rights to enter the mediation with the position it would not make a settlement offer,” Pauley said. He said the bank also had the right to decide in advance that it wasn’t liable. Practically speaking, Pauley said an order to mediate “will not change the mind of a party who believes that settlement is not in their best interest.”

Although the trial court can investigate whether a party didn’t mediate in good faith, Pauley ruled that the confidentiality requirement surrounding mediation precludes the court “from inquiring into the level of a party’s participation.”

The case is In re A.T. Reynolds & Sons Inc., 10-2917, U.S. District Court, Southern District of New York (Manhattan).

--With assistance from Linda Sandler and Tiffany Kary in New York and Dawn McCarty and Michael Bathon in Wilmington, Delaware. Editors: Stephen Farr, Peter Blumberg
To contact the reporter on this story: Bill Rochelle in New York at wrochelle@bloomberg.net
To contact the editor responsible for this story: David Rovella at drovella@bloomberg.net

Fisher Capital Management Headlines: New Commercial Boilers Presented - Triad Boiler Room Systems by Fisher Capital

 Easy to Clean - To maintain boiler efficiency, heating surfaces must be kept clean and free of combustion by-products. All TRIAD heating surfaces, especially the firetubes, are easy to access.

FOR IMMEDIATE RELEASE

New Holland, Pennsylvania, United States of America (Free-Press-Release.com) March 14, 2011 --
Fisher Capital on Boiler Room Equipment, Inc: Triad Boiler Systems creates distinctively tough small-footprint hot water boilers, steam boilers, and radiant heating systems.

All of our boilers use 12 gauge firetubes in compact vessels that suit through very small doorways! Inputs range up to 2,000,000 BTU's. Create a highly efficient system with millions of BTU's by sequencing a string of these modular vessels.

TRIAD's commercial boilers and industrial grade Hot Water Heating, Domestic Hot Water, and Steam boilers are used in a wide variety of applications. Our commercial boilers are used at schools, universities, apartments, hospitals, office buildings, retirement communities, and churches. Industrial uses have included bakeries, smelting operations, food processing, quenching systems, and various heating applications for manufacturing. Triads’ modular boilers and radiant heating systems can be natural gas fired, oil fired, or dual fuel fired. For simplicity of operation and maintenance, all controls on our boilers are well known, off-the-shelf products. There area no proprietary parts on these boilers! This simplicity of operation is part of our philosophy, and an important reason why our customers return to us again and again.

TRIAD has been manufacturing high-quality boilers since 1926, and developed the modular boiler concept with primary/secondary piping, receiving a patent for it in 1967. We put this experience, knowledge, and expertise into every boiler.

We believe in quality - it is the overriding characteristic driving our company. This is why we manufacture extremely rugged, well-designed hot water and steam boilers that can provide decades of dependable service. We welcome your inquiries.
Benefits of Modularity
TRIAD's elegantly simple design maintains consistent water volume where heat is required.

• Boilers are activated sequentially, drawing water from the main loop into the next hot water boiler until the heating need is meet.
• firing boilers remaining isolated, so no heated water circulates through cold boilers.
• During most of the year the unfired boilers provide additional backup.
• Outdoor temperatures and loop water temperatures are constantly monitored.
Fisher Capital on Boiler Room Equipment, Inc: The efficiency of this design is most apparent during warmer months, when a conventional hydronic heating or steam boiler could still be operating at full capacity.

Primary-Secondary Piping - TRIAD integrates modularity with a single pipe primary-secondary system. TRIAD was the first company to employ a Primary-Secondary concept. It operates with two loops, (i) the primary loop, or building main loop, and (ii) smaller secondary loops off of each hot water boiler, which supply heated water to the primary loop.

Upon a call for heat, the boiler pump begins pushing the return water into the boiler and out through the secondary loop, supplying this hot water up into the primary loop (the main header), where it mixes with the cooler return water from the main loop of the building.
• Supply and return water are blended, avoiding the need for expensive and unreliable mixing valves commonly used in two pipe systems.
• The secondary loop isolates each hot water boiler, resulting in a very efficient system that minimizes thermal shock.
Control Panel

TRIAD Boilers can be sequenced by the use of our control panel that provides many attractive features:
• Temperature set-back when less heat is required, such as nights and weekends.
• Adjustments for latent heat, to take advantage of hot boiler water that retains heat after the burner shuts down.
• Outdoor reset based on atmospheric temperatures.
• Monitoring of return water temperatures to maintain accurate heating output.
It is also very easy to sequence our boilers using the panel of any other major manufacturer.

Packaged Product - Fisher Capital on Boiler Room Equipment, Inc: All TRIAD hot water boilers and steam boilers are fully assembled, packaged products, which offer several advantages over boilers that must be assembled at the jobsite
• Onsite labor costs are minimized.
• Quality control is higher at the factory than at the jobsite
• The ease of installation of a packaged boiler allows for quicker start up.
Benefits of Steel Boilers

Easy to Clean - To maintain boiler efficiency, heating surfaces must be kept clean and free of combustion by-products. All TRIAD heating surfaces, especially the firetubes, are easy to access. It is impossible to clean all the heating surfaces of a cast iron boiler, and what can be reached is difficult to clean.

TRIAD also makes it easy to maintain clean water surfaces. The cleaning of the interior of a cast iron boiler is a major undertaking, and even then only the vertical surfaces can be cleaned. The inability to clean the horizontal surfaces can have a significant impact on operating efficiency. 

Fisher Capital Management Headlines: Fisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010-IIII

Fisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010 Fisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010 - India is in a sweet spot. The central government budget which set the tone for reducing fiscal deficit and an unexpected increase in the policy rate to rein in inflation has convinced the markets and economists that India is on its way to having a robust economic growth. Industrial output also continued to grow at a fast pace in January as companies produced more cars and cement. In the fiscal year 2011 that ends in March 2011, GDP growth of 8. 5% is achievable. Long-term predictions for the southwest monsoons are expected to be normal, giving a boost to agricultural production and domestic demand. Fisher Capital Management Seoul Korea- Inflation in India has been surging, driven by a low base and high food prices as the weakest monsoon rains in 37 years last year hurt farm output. Inflation running at 8. 5% may have peaked and it is exFisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010 Fisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010 - India is in a sweet spot. The central government budget which set the tone for reducing fiscal deficit and an unexpected increase in the policy rate to rein in inflation has convinced the markets and economists that India is on its way to having a robust economic growth. Industrial output also continued to grow at a fast pace in January as companies produced more cars and cement. In the fiscal year 2011 that ends in March 2011, GDP growth of 8. 5% is achievable. Long-term predictions for the southwest monsoons are expected to be normal, giving a boost to agricultural production and domestic demand. Fisher Capital Management Seoul Korea- Inflation in India has been surging, driven by a low base and high food prices as the weakest monsoon rains in 37 years last year hurt farm output. Inflation running at 8. 5% may have peaked and it is exFisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010 Fisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010 - India is in a sweet spot. The central government budget which set the tone for reducing fiscal deficit and an unexpected increase in the policy rate to rein in inflation has convinced the markets and economists that India is on its way to having a robust economic growth. Industrial output also continued to grow at a fast pace in January as companies produced more cars and cement. In the fiscal year 2011 that ends in March 2011, GDP growth of 8. 5% is achievable. Long-term predictions for the southwest monsoons are expected to be normal, giving a boost to agricultural production and domestic demand. Fisher Capital Management Seoul Korea- Inflation in India has been surging, driven by a low base and high food prices as the weakest monsoon rains in 37 years last year hurt farm output. Inflation running at 8. 5% may have peaked and it is ex