Bankruptcy Disclosures

Covers selected corporate issues with troubled companies, including

SEC disclosure issues
Director fiduciary issues

Modified SEC Reporting - Bankrupt Companies

Staff Legal Bulletin #2

Summary
Background I
No-action requests for modified Exchange Act reporting II

Disclosure of financial condition II.A
Trading in issuer's securities II.B
Timing of issuer's request II.C

Relief granted IV

While in bankruptcy IV.A
When emerging from bankruptcy IV.B
Not considered current IV.C
Rule 12h-3 available IV.D

Calpine 2005

California utility files Chapter 11

Press release 12.20.05
9^th largest US bankruptcy filing
Crippled by long-term contracts to supply power
at prices below its current operating costs
Follows adverse Delaware court decision

Suit was brought by bondholder trustee
Calpine ordered to repay $312 million

Pre-filing Announcements

NYSE delisting notice 12.05.05

Trades on pink sheets

Bondholder litigation

Company update 12.08.05

Largest US Bankruptcies

1	Worldcom 2002 Assets $103 B Telecom company imploded over accounting scandal Followed years of M&A-driven expansion WorldCom Aftermath
2	Enron 2001 SEC_CODE_REF_0090001192884 Assets $63 B Energy company imploded over accounting scandal Followed years of aggressive expansion
3	Conseco 2002 Assets $61 B Financial company implodes over accounting scandal Followed years of aggressive expansion
4	Texaco 1987 Assets $36 B Oil company crippled by jury verdict Penzoil sued over Texaco interfering with its deal to buy Getty Oil Preliminary Agreements
5	Financial Corp. of America 1988 Assets $34 B Savings & loan collapsed Followed years of M&A-driven expansion Presaged collapse of US S&L industry
6	Refco 2005 Assets $33 B Trading company implodes over accounting scandal
7	Global Crossing 2002 Assets $30 B Tried to build a global telecom network Collapsed when telecom bubble burst
8	Pacific Gas and Electric 2001 Assets $30 B California utility was hit by skyrocketing wholesale electricity costs Barred from passing on costs to consumers
9	Calpine 2005 Assets $27 B California utility crippled by long-term contracts to supply power at prices below its current operating costs
10	UAL Corp 2002 Assets $25 B Has yet to emerge from Chapter 11 Proposed 2000 merger with US Airways was blocked over antitrust concerns Airline Bankruptcies
11	Delta Air Lines 2005 Assets $22 B Fuel price increases were the final straw Nearly all US carriers are in bankruptcy Airline Bankruptcies
12	Adelphia Communications 2002 Assets $21 B Family-controlled cable company imploded over accounting scandal Business split-up in bankruptcy auction Cable subscribers divided between Comcast and Time Warner
13	MCorp 1989 Assets $20 B Bank holding company failed over bad lending by many of its subsidiary banks Filed for bankruptcy to pursue claims against Federal Reserve Board over way bank failures were handled
14	Mirant 2003 Assets $19 B Atlanta-based power producer and energy trader
15	Delphi 2005 Assets $17 B Auto parts supplier was spun-off from GM in 1999

Related Topics

Airline Bankruptcies

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