LIABILITIES SUBJECT TO COMPROMISE (PREDECESSOR)

12 Months Ended

Dec. 31, 2011

LIABILITIES SUBJECT TO COMPROMISE (PREDECESSOR)

10. LIABILITIES SUBJECT TO COMPROMISE (PREDECESSOR)

Under bankruptcy law, actions by creditors to collect upon liabilities of the Debtors incurred prior to the Petition Date were stayed and certain other pre-petition contractual obligations were not allowed to be enforced against the Debtors without approval of the Bankruptcy Court. In accordance with ASC 852, these liabilities are classified as liabilities subject to compromise in our consolidated balance sheets as of December 31, 2010 and are adjusted to the expected amount of the allowed claims, even if they may be settled for lesser amounts. Liabilities subject to compromise are classified separately from long-term obligations and current liabilities in the accompanying consolidated balance sheets.

In accordance with ASC 852, interest expense is recognized only to the extent it was paid during the bankruptcy proceedings or that it was an allowed claim. As a result, the Company accrued interest on the Predecessor Credit Facility and Swap Agreement through the Petition Date. No interest was accrued on the Predecessor Credit Facility or the Swap Agreement after the Petition Date.

Liabilities subject to compromise consists of the following as of December 31, 2010 (in thousands):

Term Loan	$	225,000
Revolving Credit Facility		2,500
Interest Rate Swap		22,148
Accrued Interest		25,985
Accounts Payable		838
Total Liabilities Subject to Compromise	$	276,471