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Ceglia told lawyer to ignore Facebook court order: filing

Facebook asked U.S. Magistrate Judge Leslie Foschio in Buffalo, New York to punish the plaintiff, Paul Ceglia, and his lawyers for their failure to turn over email accounts and passwords, as the judge had directed in an August 18 order.The filings mark the latest twist in a year-old case over the authenticity of a 2003 contract under which Ceglia said he hired Zuckerberg, then a Harvard University freshman, on multiple projects, one of which eventually became Facebook.The company calls that contract a forgery, and said an "authentic" contract found on Ceglia's computer does not concern Facebook.Facebook made its request on Friday, one week after Jeffrey Lake, one of Ceglia's lawyers, said in a court filing that his client told him not to follow the judge's order."I informed Mr. Ceglia that the court had ordered him to produce, among other things, accounts and passwords for all email accounts he had used since 2003," Lake wrote. "Mr. Ceglia instructed me not to comply with this provision and to bring the issue before (U.S.) District Judge (Richard) Arcara."In its October 14 filing, Facebook said Ceglia's lawyers had a duty to resist their client's alleged effort to break the law, and might have violated state ethics rules by revealing what he said in an effort to protect themselves."If they fail to persuade their client to change direction, their proper course is to withdraw," Facebook lawyers wrote.Lake's colleague Nathan Shaman, in an accompanying filing, also said Ceglia refused to comply with Foschio's order.Calls to Lake, Shaman and Paul Argentieri, another lawyer for Ceglia, were not immediately returned.Facebook is based in Palo Alto, California, and may be worth $68.2 billion, according to SharesPost Inc, which tracks valuations of private companies.Many analysts expect Facebook to conduct an initial public offering as soon as next year. Zuckerberg is worth $17.5 billion, Forbes magazine said last month.Ceglia is a wood pellet salesman from Wellsville, New York, and now reported to be living in Ireland.The case is Ceglia v. Zuckerberg et al, U.S. District Court, Western District of New York, No. 10-00569.

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Ceglia told lawyer to ignore Facebook court order: filing

Facebook asked U.S. Magistrate Judge Leslie Foschio in Buffalo, New York to punish the plaintiff, Paul Ceglia, and his lawyers for their failure to turn over email accounts and passwords, as the judge had directed in an August 18 order.The filings mark the latest twist in a year-old case over the authenticity of a 2003 contract under which Ceglia said he hired Zuckerberg, then a Harvard University freshman, on multiple projects, one of which eventually became Facebook.The company calls that contract a forgery, and said an "authentic" contract found on Ceglia's computer does not concern Facebook.Facebook made its request on Friday, one week after Jeffrey Lake, one of Ceglia's lawyers, said in a court filing that his client told him not to follow the judge's order."I informed Mr. Ceglia that the court had ordered him to produce, among other things, accounts and passwords for all email accounts he had used since 2003," Lake wrote. "Mr. Ceglia instructed me not to comply with this provision and to bring the issue before (U.S.) District Judge (Richard) Arcara."In its October 14 filing, Facebook said Ceglia's lawyers had a duty to resist their client's alleged effort to break the law, and might have violated state ethics rules by revealing what he said in an effort to protect themselves."If they fail to persuade their client to change direction, their proper course is to withdraw," Facebook lawyers wrote.Lake's colleague Nathan Shaman, in an accompanying filing, also said Ceglia refused to comply with Foschio's order.Calls to Lake, Shaman and Paul Argentieri, another lawyer for Ceglia, were not immediately returned.Facebook is based in Palo Alto, California, and may be worth $68.2 billion, according to SharesPost Inc, which tracks valuations of private companies.Many analysts expect Facebook to conduct an initial public offering as soon as next year. Zuckerberg is worth $17.5 billion, Forbes magazine said last month.Ceglia is a wood pellet salesman from Wellsville, New York, and now reported to be living in Ireland.The case is Ceglia v. Zuckerberg et al, U.S. District Court, Western District of New York, No. 10-00569.

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LPC: Kinetic Concepts deal shows banks tailoring loans for CLOs

On Monday, Kinetic Concepts (KCI.N) reduced its seven-year term loan B to $1.9-1.95 billion from an original $2.2 billion and introduced a $250-300 million, five-year term loan C. The term loan C, sources said, resulted from reverse inquiries to lead agent Bank of America Merrill Lynch from CLOs that could not commit to the seven-year term loan B and instead preferred shorter-dated paper.Bank of America Merrill Lynch declined comment.CLOs, which make up around 40 to 50 percent of the demand for leveraged loans, are grappling with maturity problems, chief among which is the upcoming end of many CLOs' reinvestment periods. For a cash flow CLO, the end of the reinvestment period means limited trading activity in loans. Also, sources indicated that these limitations can surface well before the reinvestment period ends. For instance, CLO indentures can prohibit CLOs from buying a loan with a seven-year maturity if they are two years away from the end of their reinvestment period.According to data from Wells Fargo, by the end of 2012, around 50 percent of outstanding CLOs are expected to end their reinvestment period and enter the amortization period, where senior CLO noteholders -- AAA investors -- are repaid.CLOs must also meet another parameter known as the weighted average life (WAL) test. Typically, this test constrains the tenor of the loan assets in a CLO portfolio to ensure that there will be sufficient principal proceeds available to pay off the CLO notes before the legal final maturity date.To be sure, Kinetic Concepts' loan, which backs the company's $6.3 billion buyout by an Apax Partners-led group, is believed to have been struggling slightly before the changes were worked in and therefore needed a diverse array of investors."Given the size of the deal, they need everybody to get it done in this kind of credit environment," said one investor who committed to the deal.High leverage and a relatively high degree of earnings volatility were some of the concerns that investors cited on Kinetic Concepts' loan. One investor said that by his estimation, total leverage was as high as 6.4 times.Still, investors said the yield on the term loan B is commensurate to the company's risk-profile. The term loan B, with its seven-year tenor, is attractive to non-structured vehicles that don't have timing limitations to deal with, sources said."They backed up the pricing and it's coming at a meaningful discount," said a non-CLO investor.Kinetic Concepts, which makes medical devices used in wound care, is offering its term loan B at 575 basis points over Libor with a 1.25 percent Libor floor and a discount of 95.5-96 cents on the dollar. The term loan C is guided 75 basis points inside the term loan B.Some sources noted that investors are also using the recently priced loan for Emdeon Inc (EM.N) as a comparison point for Kinetic Concepts' loan."The Emdeon business is a lot more stable, has a good growth story and it makes sense that KCI is coming at wider pricing than Emdeon," said one buyside investor.

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UPDATE 1-Brazil sets minimum bid for airport auction

* Total required investments reach 18 billion reais (Adds estimated return, Infraero stake)BRASILIA, Oct 13 (Reuters) - Operators interested in running Brazil's largest airport will be required to make a minimum bid of $1.3 billion, Brazil's aviation authority said on Thursday.Brazil, which has seen double-digit annual growth in air traffic, is planning to expand and modernize its main airports ahead of the 2014 World Cup and 2016 Olympics in Rio de Janeiro.Bidding for the rights to build and operate three airport terminals is tentatively scheduled for Dec. 22, although authorities say the date depends on rulings by government watchdogs.Investors have been closely watching the bidding amid broader uncertainty over Brazil's investment climate. A heavy government hand in several industries has raised concern with some private investors.Earlier this year the government said that Infraero, the state-owned company that currently runs most airports, will maintain a veto right on strategic decisions in the joint-ventures it will form with winning bidders. Infraero will hold a 49 percent stake in these joint ventures.The winning bidder for Guarulhos, Sao Paulo's main international airport, will be charged 10 percent of gross revenue over a 20-year contract. In addition to airport fees, the operator will earn 804 million reais in revenues by 2032, compared with an estimated 373 million reais in 2012, Secretary of Civil Aviation Wagner Bittencourt said.The estimated return on investment for each of the projects is 6.46 percent, according to Bittencourt's office.Required investments at Guarulhos total 5.2 billion reais.Brazil will also auction off concessions at Viracopos airport, in Sao Paulo state, as well as at the airport in the capital, Brasilia.Bidders for Viracopos, which requires investments of 9.9 billion reais, will have to offer at least 521 million reais and will pay 5 percent of gross revenues over a 30-year contract.