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NII Holdings Agreement Announced


NII Holdings announced that the Company and twelve of its wholly-owned subsidiaries have reached an agreement with their major stakeholders, including their two largest creditors and the official committee of unsecured creditors, on the material terms of a reorganization plan to be implemented via its Chapter 11 filing. According to documents filed with the SEC, the proposed reorganization will result in the following: Conversion of $4.35 billion of the Company's unsecured notes into equity interests in the reorganized Company; $500 million of new capital through a fully backstopped $250 million rights offering of the reorganized Company's stock that will be made available on a pro rata basis to holders of the Company's senior notes and an additional $250 million of exit financing in the form of debt and a global settlement of all claims related to certain complex intercompany and inter-creditor disputes. Steve Shindler, NII Holdings' chief executive officer, comments, "After months of hard work, we are pleased to announce an agreement on the key terms of a reorganization plan that provides a path for the Company to emerge from bankruptcy in a healthy financial position to effectively compete in the wireless marketplace. This deal is an important step in the process and allows us to move forward and present our reorganization plan to the court for its approval." The Company and its major stakeholders have also entered into a restructuring support agreement in which the parties agree to take actions to implement and support the reorganization plan contemplated by the restructuring term sheet. NII Holdings filed with the U.S. Bankruptcy Court a related plan support agreement, which includes a plan term sheet.

Energy Future Holdings Compromise Approval Sought


Energy Future Holdings filed with the U.S. Bankruptcy Court a motion for an order (a) authorizing its entry into and performance under the settlement agreement between certain of the Debtors (Energy Future Holdings, Luminant Generation Company and Big Brown Power Company, collectively, the "Settling Debtors") and Sierra Club, pursuant to Section 363(b) of the Bankruptcy Code and Rule 9019 of the Federal Rules of Bankruptcy Procedures. Under the agreement, "The Settling Debtors have one outstanding cause of action against Sierra Club for $6.45 million (the 'Fee Award'). The Fee Award stems from district court litigation brought against the Settling Debtors by Sierra Club under the Clean Air Act (the 'CAA')....As contemplated by the Settlement Agreement, the Settling Debtors will be relieved from defending against multiple current and threatened lawsuits relating to Sierra Club's environmental and administrative causes of action....The Settling Debtors believe that, due to the inherent uncertainty of litigation, there is a risk that the Settling Debtors will not be able to recover the full $6.45 million amount of the Fee Award and might not prevail on all other threatened and pending litigation." The Court scheduled a December 18, 2014 hearing to consider the agreement, with objections due by December 11, 2014.

Energy Future Holdings Compensation Program Filed


Energy Future Holdings filed with the U.S. Bankruptcy Court a motion to approve its 2015 compensation programs. The motion explains, "Specifically, the Motion seeks the approval for 2015 of (a) discretionary incentive compensation programs that will encourage and reward exceptional performance by all employees and (b) certain retention bonus programs for non-insiders. As with the 2014 programs, the Debtors' senior employees are eligible to earn market-based bonuses if - and only if - the Debtors meet challenging financial and operational targets that will generate substantial value for the Debtors and all of their stakeholders....The Cost of Insider Executive Annual Incentive Plan is $8.0 million at target, payable February/March 2016. The Key Leader Performance Program cost is 4.3 million....The cost of 2015 annual incentive Plan is $56.1 million. The cost of non-insider executive annual incentive Plan is $4.3 million at target. The Key Leader Plan costs $6.3 million....Each employee in the EAIP is eligible to receive an incentive compensation award equal to a target portion of his or her base salary if - and only if - the Debtors meet difficult-to-satisfy performance incentive metrics, which vary by business unit based on the employee's role. The individual performance modifier, which may range from 0% to 150%, is recommended by the applicable business unit's leaders after an extensive performance review and calibration processes across the business units and is ultimately approved by the Debtors' seven-member Strategy & Policy Committee (the 'SPC')....The Debtors also accrue approximately $3 million over the course of the year in a 'presidential pool' that allows the Debtors' Chief Executive Officer to authorize the Debtors to make EAIP and AIP payments to employees in addition to amounts accrued based on the Debtors' performance in accordance with the final individual performance modifiers." The Court scheduled a December 18, 2014 hearing to consider this motion, with objections due by December 11, 2014. Subsequently, the Debtors also sought to file under seal certain portions of commercially-sensitive information set forth this motion.

LDK Solar Systems Plan Confirmed


The U.S. Bankruptcy Court entered an order confirming LDK Solar Systems' Prepackaged Plan of Reorganization. LDK Solar Systems, Inc. operates as a subsidiary of LDK Solar CO., Ltd., which filed for Chapter 15 protection on the same date that LDK Solar Systems and two other U.S. Debtors filed for Chapter 11 protection. In addition to entry of the confirmation order, the Court also entered an order recognizing LDK Solar CO.'s provisional liquidation proceeding in the Grand Court of the Cayman Islands as a foreign main proceeding under Chapter 15 of the U.S. Bankruptcy Code and an additional order recognizing and giving full force and effect in the jurisdiction of the United States to LDK Solar CO.'s Cayman Islands scheme of arrangement. "The U.S. Bankruptcy Court's rulings, which follow favorable rulings from the Grand Court of the Cayman Islands and the High Court of Hong Kong, are the final court approvals necessary for us to execute the various documents with our creditors to consummate the international restructuring of our offshore liabilities. Now with more than US$700 million in our offshore claims judicially approved for restructuring, we can focus our attention on rebuilding LDK Solar's position in the marketplace," stated Xingxue Tong, interim chairman, president and C.E.O. of LDK Solar CO. Privately-held LDK Solar Systems filed for Chapter 11 protection on October 21, 2014, listing more than $500,000 in pre-petition assets.

ALCO Stores GOB Sales Approved


The U.S. Bankruptcy Court issued an order authorizing Tiger Capital Group, SB Capital Group and Great American Group to conduct going out of business sales in each of ALCO Stores' 198 store locations. More than $260 million of inventory, fixtures and equipment will be liquidated during the sale, which begins November 21, 2014. Daniel Kane, managing member of Tiger Capital Group, comments, "In addition to the convenience of being able to shop locally, the chain distinguished itself by emphasizing the kind of friendly, personal service that small-town consumers expect. Unfortunately, many of ALCO's small-town customers were disproportionately impacted by the slow economy. These economic factors ultimately led to the difficult decision to liquidate all of ALCO's assets." ALCO stores, which average 25,000 square feet in size, are located in Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, South Dakota, Texas, Utah, Wisconsin and Wyoming. All stores will maintain their normal business hours during this liquidation sale. In addition to the liquidation of merchandise inventories, fixtures and equipment from all 198 stores, assets from the Company's 352,000-square-foot distribution center in Abilene, KS will also be sold.