The Heat's On Fedders and Other Financially Challenged U.S. Companies for April 3

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AirNet Systems Inc., a Columbus, Ohio express cargo courier, said that it will go private in the second quarter, through an acquisition by an affiliate of Bayside Capital Inc. of Miami, Fl.  Separately, AirNet reported a fourth quarter net loss of $480,000, compared to a profit of $1.8 million in the year-earlier quarter. Revenue declined 11%–to $37.9 million. Results were impacted by high fuel prices. For the year, it had net income of $3.4 million on a 7% revenue decline–to $161 million. The fiscal results, marking AirNet’s first year in the black since 2003, included nearly $3 million in asset disposition and impairment charges.

Ampex Corp., Redwood City, Calif., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. Ampex, which developed audio tape recorders and slow-motion instant replay, has arranged a debt-for-equity deal with Hillside Capital Inc. which would become Ampex’s majority owner if the plan gets approval from the court. The filing, under case number 08-11094, listed assets and liabilities of about $26.5 million and $134 million respectively. Also filing Chapter 11 were Ampex Data Systems Corp. and Ampex International Corp. The Ampex filings listed between 5,000 and 10,000 creditors. Ampex, with 550 workers (it had nearly 7,000 at its peak), hopes to emerge from bankruptcy protection by the fall.

Canterbury Park Holding Corp., a Shakopee, Minn. racetrack operator, reported its fourth quarter net income declined 42%–to $640,000, on an 11% revenue decline–to $11.3 million. For the year, net income fell 16%–to $2.6 million, on a 5% revenue decline–to $53 million.

Chromcraft Revington Inc., a West Lafayette, Ind. furniture maker, reported a fourth quarter net loss of $8.3 million. Revenue declined 27%–to $28.3 million. For the year, it lost $15 million on a 23% revenue decline–to $123 million.

Fedders North America Inc., a bankrupt maker of air conditions, was sued by creditors that are seeking as much as $150 million in damages against Fedders’s officers and outside lenders.  The litigation charges the individuals and entities involved with various kinds of misconduct that led to the firm’s bankruptcy filing.

Interep National Radio Sales Inc., a Manhattan, N.Y. firm that sells ad time on radio, television and the Internet, filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York, along with fourteen affiliates, hoping to restructure its balance sheet. The firm faces a $100 million debt payment coming due in July. The prepackaged bankruptcy plan was filed in conjunction with Oaktree Capital Management LP and Silver Point Capital LP. Those two companies provided Interep with a $25 million credit facility. According to one of the Interep filings, which list as many as 5,000 creditors, the firm has assets of between $50 million and $100 million and claims of between $100 million and $500 million.

Lehman Brothers Holdings Inc., the big investment firm which just a day ago said it raised $3 billion, announced it will raise $4 billion in preferred stock. The company wants to raise money in an effort to squelch rumors among investors that it could be the second shoe to drop among the big investment bankers, in the wake of the collapse of Bear Stearns Cos.  Lehman, which wrote down $1.8 billion in mortgage-related securities in its first quarter, raised eyebrows among some analysts who believe the writeoffs should have been higher, given worries about some of Lehman’s assets.

Novelis Inc., a Cleveland, Ohio manufacturer of rolled aluminum products, will halt production of light-gauge converter foil products at its facility in Louisville, Ky., resulting in the loss of 105 jobs. Novelis, trying to cut costs, last year said it wanted to get out of the light-gauge converter foil market in North America and had hoped to find a buyer for the Louisville plant, but none emerged.

Openwave Systems Inc., Redwood City, Calif., will cut about 200 jobs from its payroll as part of a restructuring plan. The firm will refocus its product portfolio in an attempt to cut $50 million from its annual costs. Openwave, which last year said it would cut a fifth of its workforce, will take restructuring charges of between $16 million and $19 million.

Proliance International Inc., a New Haven, Conn., manufacturer of radiators and related products, reported a fourth quarter net loss of $4.4 million. Revenue declined 8%–to $84.3 million. For the year, it lost $4.2 million while revenue tumbled 52%–to nearly $200 million. The quarter and year included restructuring and debt-extinguishment charges of $925,000 and $3.7 million respectively.

Quipp Inc., a Miami, Fla. manufacturer of newspaper equipment, is in an agreement to be acquired by Illinois Tool Works Inc. of Glenview, Ill. in a transaction valued at between $6.5 million and $8.5 million. However, Quipp warned that it won’t go through with the deal if the price is too low. Separately, Quipp reported a narrowed fourth quarter net loss of $600,000, down from a $3.2 million loss in the year-earlier period.  The results included a $1 million extra charge. The company added that orders were down 35% from the year-ago quarter. Revenue increased 63%–to $10 million. For the year, it lost $2.7 million on a 7% revenue decline–to $24.6 million.

RadNet Inc., a Los Angeles provider of screening, imaging and related medical services, reported a fiscal net loss of $18 million on revenue of $425 million. The results included equipment-sales and severance charges of $1 million.

Reading International Inc., a Commerce, Ca. operator of theaters, reported a fourth quarter net loss of $4 million. Revenue declined 3%–to $28.6 million. For the year, it lost $2.1 million on a 12% revenue increase–to $119 million.

Synergetics USA Inc., an O’Fallon, Mo. maker of microsurgery products, is shutting down its facility in Oaks, Pa. as part of a consolidation of operations at its O’Fallon facility. The shutdown, which will result in related expenses of about $400,000, will hopefully shave $1.5 million off annual expenses. The move affects twenty-five workers.

Thornburg Mortgage Inc. apparently dodged a bankruptcy filing by raising $1.35 billion by selling bonds, warrants and interest in some mortgage assets. The firm will use $1.15 billion in proceeds to meet capital requirements, with the rest of the money to be held in escrow, available when a preferred stock tender offer is completed. The Santa Fe, N.M. loan company recently got a waiver from lenders as it sought additional financing.

UBS AG, the giant Swiss bank, will write down another $19 billion connected to its real-estate and structured-credit investments in the U.S.  That will lead to a loss of about $12 billion. UBS added that it hopes to raise about $15 billion in new capital.

Wheeling-Pittsburgh Steel Corp. is closing a cold-rolled production plant in Allenport, Pa. and idling two galvanizing lines at its operations in Martins Ferry, Ohio. Wheeling-Pittsburgh is owned by Esmark Inc. of Chicago Heights, Ill.