Lawyers say federal government erred in Equitable Building asbestos tests

Criminal charges against Des Moines developer Bob Knapp should be dropped because the federal government failed to follow its own legally mandated testing procedures on material removed from the Equitable Building during its renovation in 2007, court documents say.

Lawyers for Knapp and Russell Coco, the supervisor of the renovation project at the Des Moines landmark building, also contend that the federal government's case has been weakened because the material removed from the building and tested for asbestos by investigators can't be found and likely has been destroyed.

"This is a big deal," William Kutmus, attorney for Knapp, said Tuesday of the motion.

Knapp and Coco were indicted by a federal grand jury in February on 11 counts each of violating the U.S. Clean Air Act for their roles in the renovation of the building.

Both men have pleaded not guilty.

Prosecutors allege that Knapp, 60, and Coco, 50, knowingly had asbestos removed, placed into open Dumpsters and improperly disposed of in a landfill as part of the building was renovated into high-end condominiums. Several floors of the Equitable Building were gutted while still containing excessive levels of asbestos, prosecutors say.

The indictment charges the defendants with conspiracy to violate the Clean Air Act's work-practice standards, intended to prevent releases of asbestos, and with failing to give notice before renovation and demolition.

Each count of the indictment carries a maximum penalty of five years in prison and a fine of $250,000.

But defense lawyers argued in a 15-page brief filed last week that the federal government's case is flawed because investigators failed to use a specific test cited in the criminal statutes to measure asbestos content.

Instead, defense lawyers say, the federal government's case is based on a different test not allowed under the criminal statute.

"There is no evidence to establish whether or not the material removed from the Equitable Building contained a sufficient amount of asbestos to be subject to the regulation under the Clean Air Act," the motion says. "Without such evidence, no violation can be established."

In addition, defense lawyers said that no retesting of the same material can be conducted because discovery has disclosed "in 2009 the laboratory reported that the samples could not be located and most likely were destroyed."

Court document show the testing of the material was conducted by the Hygienic Laboratory at the University of Iowa in 2007. Those tests of floor tiles and insulation around pipes revealed two different types of asbestos in amounts requiring Knapp and Coco to take additional precautionary steps.

Asbestos fibers, even in small amounts, can cause lung illnesses and cancer that sometimes show up several decades after someone inhales the material, according to the National Cancer Institute.

Last year, Iowa's Occupational Safety and Health Bureau fined Oakmoor Management Co. and Equitable LP, two limited partnerships owned by Knapp, for failing to have a trained supervisor to handle the asbestos removal and for failing to properly equip and train workers. Knapp's partnerships were fined $10,175. Jacobson Staffing Co. LC of Des Moines, which also provided workers, was fined $11,250 for similar offenses.

In April, a Polk County judge approved bank foreclosure on the building after Knapp defaulted on $8.9 million in loans on the building. The 19-story building at 604 Locust St. is to be sold at a sheriff's sale.

Bob Knapp's business is not affiliated with Knapp Properties, founded by developer William Knapp.

Prosecutors have until Sept. 20 to respond to the motion. Trial on the charges is scheduled for January.

Mesothelioma Awareness Day To Include Display at New York's Rockefeller Plaza

New York personal injury attorney Joseph W. Belluck says Mesothelioma Awareness Day, scheduled for September 26, serves as a valuable reminder that people continue to die needlessly from asbestos-related disease and that more public education is needed to avoid asbestos exposure.

“Many people incorrectly assume that asbestos is a thing of the past, but in fact, the number of people developing mesothelioma is still on the increase,” said Belluck, a partner in Belluck & Fox, LLP, a New York law firm that focuses on representing victims of mesothelioma. “Unlike some forms of cancer, mesothelioma is an entirely preventable disease, so education and additional research is critical.”

Mesothelioma is a malignant cancer of the lining of the lung and abdomen closely associated with inhaling microscopic asbestos dust. Typically, the symptoms of the disease appear at least 10 years or longer after exposure. About 2,500 to 3,000 Americans die each year of mesothelioma and thousands more die of lung cancer related to asbestos.

This year, Mesothelioma Awareness Day in New York will include a window display during the month of September at 10 Rockefeller Plaza, including a video about the signs and symptoms of mesothelioma, according to the Meso Foundation, a non-profit advocacy group dedicated to finding a cure for mesothelioma. The window display at Rockefeller Plaza is being donated by the pharmaceutical company EHE International, a leader in preventive medicine and early detection of preventable disease.

“People don’t realize how widespread asbestos remains in older buildings and factories or how many occupations the disease affects,” Belluck said. “An estimated 1.3 million construction and general industry workers remain exposed to asbestos. Greater public awareness can help build support for additional research dollars to find ways to identify people who are likely to develop the disease and to detect the disease sooner.”

The United States has limited the use of asbestos since the 1970s but failed to ban asbestos. Yet, a recent analysis by the National Institute of Occupational Safety and Health found that the number of deaths of malignant mesothelioma increased 2,482 in 1999 to 2,705 in 2005, the most recent year of complete data. Researchers expect the incidence of mesothelioma to remain elevated above historical levels until 2050.

About Belluck & Fox, LLP

Belluck & Fox, LLP is a nationally recognized law firm that represents individuals with asbestos and mesothelioma claims, as well as victims of crime, medical malpractice, motorcycle crashes, lead paint and other serious injuries. The firm has won more than $200 million in compensation for its clients and their families. For more information, contact the firm at 877-695-2909 or through the online contact form.

Manhattan Moment: Litigating over the environment makes big bucks for trial lawyers Read more at the San Francisco Examiner.

America's litigation industry--the aggressive class action and mass tort lawyers who we at the Manhattan Institute have dubbed Trial Lawyers, Inc.--are always seeking new products to expand their bottom line. Today's plaintiff bar is taking an old class of tort claims, those involving environmental injury, and abusing the legal process in an effort to impose environmental regulations through judicial fiat.

Lawyers have long profited from "toxic tort" lawsuits. Some such litigation--such as that spurred by exposure to low magnetic fields and chemicals like the herbicide atrazine--is founded on junk science, without solid evidence that supports even a general finding of causation. Other lawsuits target defendants linked to genuine toxins, like asbestos, but wrap multiple bogus suits together with each legitimate one.

The nation's most recent large environmental disaster--the Gulf oil spill flowing from BP's Deepwater Horizon rig--promises a plethora of such vexatious litigation, in addition to genuine claims. Moreover, beyond pursuing traditional toxic tort claims, lawyers are seeking to profit from BP's mishap through attorney-driven class action suits with even higher expected payoffs--including suits filed on behalf of shareholders and pensioners, such as that recently announced by Texas asbestos and Vioxx lawyer Mark Lanier.

The tort kings' shenanigans are unfortunate; there remains an important place in our legal system for environmental litigation.

When parties have been directly harmed by pollution - such as beachfront-property owners injured by BP's spill- the case for tort liability is clear. The common-law tort of nuisance, which emerged in twelfth-century Britain, allows individuals to recover compensation for "real injuries" to their "lands."

But modern lawyers are trying to stretch these ancient causes of action to profit from environmental fears. Front and center in the lawyers' arsenal is a subset of the nuisance tort, "public nuisance."

In pre-regulatory times, public-nuisance suits were used to force municipalities to take actions, such as removing trees from roadways and closing down "houses of ill repute." Public-nuisance law had its place in this earlier era, but as Judge J. Harvie Wilkinson of the U.S. Court of Appeals for the Fourth Circuit recently observed, "[i]f we are to regulate smokestack emissions by the same principles we use to regulate prostitution, obstacles in highways, and bullfights, we will be hard pressed to derive any manageable criteria."

Notwithstanding Judge Wilkinson's objections, plaintiffs' lawyers keep trying to use public-nuisance law to supplant national environmental regulation.

In perhaps the most egregious example, Comer v. Murphy Oil USA, Mississippi asbestos lawyer F. Gerald Maples filed suit against over 100 energy companies on behalf of homeowners injured by 2005's Hurricane Katrina. Mass tort lawyer Russell Jackson called Maples's speculative theory that the energy companies caused global warming, which in turn caused the severe hurricane, "the litigator's equivalent to the game 'Six Degrees of Kevin Bacon.'"

The U.S. Court of Appeals for the Fifth Circuit recently blocked Maples's suit, but other global-warming lawsuits are still percolating in the courts. Foremost among them is a suit led by state attorneys general who cozy up to the plaintiffs' bar, like Richard Blumenthal of Connecticut, now a candidate for Senate.

Fortunately, last week, the Obama administration filed a brief urging the Supreme Court to overturn the lower-court decision that had allowed Blumenthal's suit to proceed. Environmental activists, tort litigators, and their allies in the legal professoriate were predictably displeased: David Doniger of the Natural Resources Defense Council told the press he was "very angry and very disappointed."

These eco-lawyers have no intention of deferring to lawmakers and regulators, and as long as the courts permit them to do so, they will continue to try to regulate the environment through lawsuits. Though we need to preserve the right to obtain legal redress of genuine environmental injuries clearly caused by wrongdoers, legislators should enact serious legal reforms to preclude such speculative litigation that lines lawyers' pockets while undercutting democratic decision-making.

James R. Copland is the director of the Manhattan Institute's Center for Legal Policy and author of the Center's latest Report, Trial Lawyers, Inc. Update: Environment.

Read more at the San Francisco Examiner: http://www.sfexaminer.com/opinion/columns/oped_contributors/Litigating-over-the-environment-makes-big-bucks-for-trial-lawyers-670290-101922263.html#ixzz0ypr6Hr9U

Tronox, Tribune, Circuit City, Centaur, Visteon, U.S. Concrete: Bankruptcy

The official shareholders’ committee for Tronox Inc. will submit a competing reorganization plan today or tomorrow, according to an agreement filed in bankruptcy court on Aug. 30 by the world’s third-largest producer of the white pigment titanium dioxide.

Tronox’s exclusive right to file a plan expired in July, when the company had been in Chapter 11 for 18 months. Tronox agreed that the committee could file its plan and explanatory disclosure statement without a courtroom fight over whether the committee could solicit acceptances of a competing plan before Tronox’s exclusive right to solicit votes expires on Sept. 13.

Court papers don’t explain how the equity holders’ plan will differ from the company’s.

Tronox announced on Aug. 30 that it reached agreement with “all key creditor stakeholders” on the “framework” for an amended reorganization plan giving stock to unsecured creditors. Tronox’s revised plan would give existing shareholders warrants for 5 percent of the new stock, if they vote for the plan. For details of Tronox’s new plan and the prior version, click here to read the Aug. 30 Bloomberg bankruptcy report.

Tronox is yet to file its new plan and accompanying disclosure statement.

The Chapter 11 petition by Tronox in January 2009 listed assets of $1.56 billion against debt totaling $1.22 billion. Debt includes $213 million on a secured term loan and revolving credit, $350 million in 9.5 percent senior notes, and a $40.7 million accounts receivable securitization facility. Tronox’s products are used in paints, coatings, plastics, paper and consumer products. The operations outside of the U.S. didn’t file.

The case is In re Tronox Inc., 09-10156, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

Updates

Tribune Has Board Committee to Formulate New Plan

Newspaper publisher Tribune Co. formed a special committee of the board of directors to oversee the formulation of a reorganization plan to supplant the version the company abandoned in August.

The existing plan went by the boards after the examiner issued a report concluding there was some likelihood that the second phase of the leveraged buyout in December 2007 could be attacked successfully as a constructively fraudulent transfer.

Tribune had been scheduled to confirm a plan yesterday. Nov. 8 now stands as the date for a plan confirmation hearing. To reach the stage of approving and confirming a plan, the bankruptcy court must first approve new disclosure materials before creditors vote again.

The board committee to oversee the plan consists of four members who weren’t on the board at the time of the 2007 leveraged buyout. The special board committee is to have the law firm Jones Day as its counsel. The bankruptcy court will hold a Sept. 15 hearing to consider approving expansion of the retention of Jones Day to assist the committee. The firm already serves as special antitrust counsel.

In addition to approving “any plan of reorganization,” the board committee has power, according to the company’s motion, to approve settlements and take other action to resolve fraudulent transfer claims. It is unclear from the motion whether the special committee by itself has the right to initiate lawsuits.

The special board committee was evidently created to avoid conflicts of interest because the examiner said some members of management may have been derelict in their duties in connection with the leveraged buyout.

The examiner, lawyer Kenneth N. Klee, was formally discharged last week. Although he must answer “reasonable written inquiries” from parties in the case, no one is allowed to take formal discovery from him. He is required to maintain the documents he collected for two years. He and his lawyers will be paid for their time in answering inquiries.

The examiner found less likelihood that the first phase of the transaction, in May 2007, could be unraveled as a fraudulent transfer. For a summary of some of the examiner’s conclusions, click here for the July 27 Bloomberg bankruptcy report.

Tribune’s plan would have settled claims that the $13.7 billion leveraged buyout led by Sam Zell contained fraudulent transfers. The plan was opposed by holders of $3.6 billion in debt. For details on the withdrawn plan, the proposed settlement and the parties’ arguments, click here for the April 13 Bloomberg bankruptcy report.

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 Delaware (Wilmington).

Circuit City Plan to Pay Up to 32% after Sept. 8

Circuit City Stores Inc. is scheduled for approval of a revised liquidating Chapter 11 plan at a Sept. 8 confirmation hearing. Unsecured creditors were told to expect a recovery between 10 percent and 30 percent on claims totaling from $1.8 billion to $2 billion.

When Circuit City received approval of the original disclosure statement last year, creditors were told not to expect more than 13.5 percent.

Eastman Kodak Co. is objecting to confirmation of the plan unless it’s modified so there is a definite date when the plan will be implemented. Without changes, Kodak says that implementation of the plan will be “controlled by one or more of the plan proponents or by parties outside of this court’s jurisdiction.”

Circuit City and the official creditors’ committee had been at loggerheads over details surrounding the plan until mediation broke the impasse. The revised plan took the place of the version originally filed in August 2009. The creditors’ committee filed a plan of its own in June.

The original plan was initially scheduled for a confirmation hearing in November.

Once a 721-store electronics retailer, Circuit City paid off all except about $5 million to $20 million in secured claims through proceeds from store liquidations. The Chapter 11 filing was in November 2008, in the company’s Richmond, Virginia, hometown. The petition listed assets of $3.4 billion and debt totaling $2.3 billion as of Aug. 31, 2008. Papers originally listed $898 million owing to the secured revolving credit lenders. Unsecured trade suppliers were owed another $650 million at the outset, the company said in a court filing.

The case is In re Circuit City Stores Inc., 08-35653, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond).

Centaur to Auction Valley View Downs on October 20

Casino and racetrack operator Centaur LLC will hold an auction on Oct. 20 for a planned racetrack 55 miles from Pittsburgh named Valley View Downs and Casino. The sale would be completed as part of the confirmation of Centaur’s Chapter 11 plan.

Under procedures approved yesterday by the bankruptcy judge in Delaware, bids are due Oct. 4. No one as yet is under contract.

Centaur was authorized in August to sell the Fortune Valley Hotel & Casino 40 miles west of Denver to Luna Gaming Central City LLC for $7.5 million cash, plus a $2.5 million note.

Centaur’s plan is designed to provide an 83.3 percent recovery for holders of $405 million in first-lien debt by giving them a combination of mostly new stock and debt. Holders of $207 million in second-lien debt would realize a 1.4 percent recovery, according to the disclosure statement filed along with the plan.

For details of the plan, click here for the July 26 Bloomberg bankruptcy report.

Centaur LLC and 12 affiliates filed Chapter 11 petitions in March. Affiliates Centaur PA Land LP and Valley View Downs LP filed for bankruptcy reorganization in October to keep the Pennsylvania project alive. All the companies are subsidiaries of closely held Centaur Inc., which isn’t in bankruptcy.

The March filings listed assets of $584 million and debt of $681 million. The newer cases resulted from the failure to make payments due in October on a $382.5 million first-lien debt and a $192 million second-lien credit. The companies have horse racing and gambling facilities in five markets in Indiana and Colorado.

The companies own Hoosier Park, a casino and horse racetrack, in Anderson, Indiana, along with three offtrack betting parlors in Indiana. Fortune Valley Hotel & Casino in Central City, Colorado, was sold. The companies generated revenue of $277.5 million in 2009.

The newer case is Centaur LLC, 10-10799, and the first case was In re Centaur PA Land LP, 09-13760, U.S. Bankruptcy Court, District of Delaware (Wilmington).

InterContinental O’Hare Hotel Loses Exclusivity

River Road Hotel Partners LLC, the owner of the InterContinental Chicago O’Hare hotel near Chicago’s largest airport, no longer has the exclusive right to propose a Chapter 11 plan.

Granting a motion by the secured construction lender Longview Ultra Construction Loan Investment Fund, the bankruptcy court in Chicago terminated so-called exclusivity on Aug. 30. Longview is owed $161 million.

At the hearing where it lost exclusivity, River Road was hoping the judge would approve bidding procedures for a sale of the property that Longview was opposing.

Before a deadline in June, River Road filed a motion to set up auction procedures where the first bid of $42 million would come from an affiliate of Och-Ziff Real Estate Acquisitions LP. The sale was to have been part of a Chapter 11 plan where more than $2 million of cash on hand would have been used to pay expenses of the Chapter 11 case.

River Road filed under Chapter 11 in August 2009 in Chicago along with affiliate RadLAX Gateway Hotel LLC, the owner of the Radisson hotel at Los Angeles International Airport. Both are ultimately controlled by Harp Group. The O’Hare property, opened in September, listing $155 million in debt. The Radisson property listed debt of $120 million.

The case is In re River Road Hotel Partners LLC, 09-30029, U.S. Bankruptcy Court, Northern District of Illinois (Chicago).

Garlock Asbestos Claimants Oppose Claims Process

Garlock Sealing Technologies LLC, a unit of EnPro Industries Inc., is encountering opposition from the official asbestos claimants’ committee to the proposal for developing a Chapter 11 plan.

The asbestos committee said in an Aug. 30 court filing that Garlock is wrong when it proposes deciding the validity of asbestos claims before estimating the total dollar amount of the claims. The committee said that trying individual claims would tie up a U.S. District Court for years.

Instead, the committee first wants a determination about the universe of asbestos claims. The best evidence, according to the committee, is what it calls “Garlock’s historical claims resolution database.” The committee wants access to the database.

The asbestos committee also wants a decision about the value of Garlock’s business.

In addition, the committee seeks to investigate whether pre-bankruptcy restructurings of Garlock’s business resulted in fraudulent transfers that the committee can attack. The committee says that the restructurings may have been designed to move assets beyond the reach of asbestos claimants.

The asbestos committee believes that the investigations can be completed in time for the formulation of a plan before Garlock’s exclusive right to propose a plan expires on April 1. The April 1 deadline could be extended.

The committee disputes Garlock’s argument that its remaining asbestos liability should be minimal, even though it already paid out more than $1 billion. The committee accuses Garlock of attempting to “rewrite applicable state tort law and ignore the teachings of medical science.”

Garlock, a Palmyra, New York-based gasket maker, filed under Chapter 11 in June to deal with the last 100,000 asbestos claims. Non-bankrupt affiliates are defendants on 30,000 claims. The company has been saying it intends to pay all asbestos claimants in full, although litigation may be necessary in the process. Garlock intends for the plan to use special provisions in bankruptcy law so that EnPro and all subsidiaries will have releases. There is $194 million of insurance remaining.

EnPro had assets of $1.08 billion and total liabilities of $634 million on the June 30 balance sheet. EnPro’s $144.2 million in net income for the first half of 2010 included $78.5 million of income from continuing operations.

EnPro makes engineered products, including diesel and natural-gas engines. It has 44 plants in the U.S. plus operations in 10 other countries.

The case is In re Garlock Sealing Technologies LLC, 10- 31607, U.S. Bankruptcy Court, Western District of North Carolina (Charlotte).

Briefly Noted

Professional Veterinary Selling Assets September 9

Professional Veterinary Products Ltd., a Nebraska-based veterinary supply distributor, filed under Chapter 11 on Aug. 20 and will sell assets at auction on Sept. 9. Bids are due Sept. 7 under procedures approved last week by the U.S. Bankruptcy Judge in Omaha.

The hearing for approval of the sale is set for Sept. 10.

The company’s formal lists of assets and debt show assets with a value of $42.8 million against $34.5 million in total liabilities, including $6.9 million in secured debt.

The case is In re Professional Veterinary Products Ltd., 10-82436, U.S. Bankruptcy Court, District of Nebraska (Omaha).

Bear Island Reports $774,400 Net Loss in July

Bear Island Paper Co. filed an operating report for July showing a $774,400 net loss on sales of $10.6 million. The gross profit was $360,000.

Bear Island and its Canadian parent White Birch Paper Co. filed for bankruptcy reorganization in February in Canada and the U.S. White Birch is the second-largest newsprint maker in North America. Secured liabilities include $438 million on a first-lien term loan, $104 million on a second-lien term loan, $50 million on an asset-backed revolving credit, and $51.5 million on swap agreements. Trade suppliers are owed $9.5 million. The companies had $667 million in sales during 2009, with $125 million attributable to Bear Island. White Birch has three pulp and paper mills in the province of Quebec. The Bear Island plant is in Ashland, Virginia. White Birch is controlled by Brant-Allen Industries, according to Bloomberg Data.

The case is In re Bear Island Paper Co. LLC, 10-31202, U.S. Bankruptcy Court, Eastern District Virginia (Richmond).

Visteon Confirms Chapter 11 Reorganization Plan

Auto-parts maker Visteon Corp. confirmed its Chapter 11 plan yesterday and said in a statement that it expects to implement the reorganization by Oct. 1. All creditor classes including shareholders voted in favor of the plan. To read Bloomberg coverage of the confirmation hearing where the plan was approved, click here. For details of the plan, click here for the June 15 Bloomberg bankruptcy report.

Visteon filed for reorganization in May 2009, listing assets of $4.6 billion against debt totaling $5.3 billion. Sales in 2008 were $9.5 billion, including $3.1 billion to Ford Motor Co. Visteon was spun off from Ford in 2000. Van Buren Township, Michigan-based Visteon at the outset owed $2.7 billion for borrowed money, including $1.5 billion on a secured term loan, $862 million on unsecured bonds, and $214 million on other debt obligations.

The case is In re Visteon Corp., 09-11786, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Barclays’s Witness Tells about Lehman Sale Changes

A witness for Barclays Plc testified in bankruptcy court yesterday that the Harvey Miller, the lead bankruptcy lawyer for Lehman Brothers Holdings Inc., said in a meeting that changes in the sale contract approved by the bankruptcy judge didn’t need to be brought back to court for approval. Click here to read Bloomberg coverage of yesterday’s installment of the trial where Lehman contends the bank took $11 billion more than it was entitled to receive when it bought the brokerage business. Barclays began presenting its defense witnesses last week after a summer break. The trial began in May.

The Lehman holding company and its non-brokerage subsidiaries filed a revised Chapter 11 plan and disclosure statement in April. For details, click here and here for the April 15 and 16 Bloomberg bankruptcy reports. 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 London-based Barclays one week later. The Lehman brokerage operations went into liquidation on Sept. 19, 2008, in the same court. The brokerage is in the control of a trustee appointed under the Securities Investor Protection Act.

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 Investors Protection Corp. v. Lehman Brothers Inc., 08-01420, both in U.S. Bankruptcy Court, Southern District New York (Manhattan).

U.S. Concrete Implements Prepacked Reorganization Plan

U.S. Concrete Inc., one of the 10 largest producers of ready-mixed concrete in the U.S., implemented the Chapter 11 reorganization plan that the bankruptcy court approved in a July 29 confirmation order, the company said in a statement yesterday. The sojourn in bankruptcy was four months.

The plan reduces debt by $285 million by swapping 8.325 percent subordinated notes for the new equity. Existing shareholders received warrants for 15 percent of the stock. For details of the plan, click here for the April 30 Bloomberg bankruptcy report.

The Chapter 11 petition filed in late April listed assets of $389 million and debt of $399 million. Liabilities include $40 million on a pre-bankruptcy secured credit facility where JPMorgan Chase Bank NA serves as agent. There was another $17.9 million on undrawn letters of credit. U.S. Concrete’s balance sheet on Dec. 31 listed assets of $392.4 million and liabilities totaling $402.5 million. It has 125 fixed and 11 portable plants serving markets in California, New Jersey, Texas and Michigan.

The case is In re U.S. Concrete Inc., 10-11407, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporter on this story: Bill Rochelle in New York at wrochelle@bloomberg.net.