R.E.M. In the Real World – Rolling Stone’s 1987 Cover Story

The following article appeared in the December 3, 1987 issue of Rolling Stone. It is reprinted here to mark the band’s break-up.

It’s a warm, clear fall afternoon in New York City; R.E.M.’s guitarist, Peter Buck, is shopping in midtown Manhattan, trying to answer the young clerk who is ringing up his Jim Carroll and John Waters paperbacks and keeps asking, “Are you from Boston? Do you know any musicians in Boston?” Unfailingly polite, Buck hems and haws, says that he knows a few Boston musicians and adds that he is himself a musician. But while he might well clear things up by telling her that he’s in R.E.M., Buck steadfastly refuses to do so. Of course, if the clerk glanced at the floor, she’d see a stack of local music magazines with Buck and his R.E.M. colleagues – Michael Stipe, Bill Berry and Mike Mills – on the cover.

“I will never tell anyone I’m in this band,” says an uncomfortable Buck afterward. “That’s not why I got into this. If people ask me, ‘Do I know you?’ I say, ‘Maybe.’ I try not to be an asshole about it, but I certainly don’t want to be one of those people who goes, ‘Yeah, you might have seen my face on the cover of the Dickville Daily Ball, one of the new music papers around today…’ I mean, who cares?”

Then he walks a couple of blocks toward Central Park and is soon recognized by two young ladies riding in a horse-drawn cab along the perimeter of the park, “Peter! Peter!” they yell across several lanes of New York City traffic, and Peter Buck grins. “Yeah,” he says, “this is a pretty good job I’ve got.”

And how does he see that job? “We’re the acceptable edge,” he says, shrugging, “of the unacceptable stuff.”

And that, in a nutshell, is R.E.M., circa 1987: more popular than ever before, enjoying the spoils of success, having fun in territory that’s new, yet not completely comfortable with the trappings of fame. It wouldn’t do for the members of this one-time cult band to embrace mass acceptance too readily, but on the other hand their underground status has all but disappeared – so it would hardly make sense for them to turn their backs on the mainstream.

Besides, it’s been a good week. The night before, R.E.M. played the second of two sold-out shows at Radio City Music Hall. Moments before walking onstage, the band had learned that its new album, Document, was in the Top Twenty and the single “The One I Love” had jumped thirteen places to Number Thirty. Since 1982 each new R.E.M. record has outsold its predecessor, but this was an unexpected leap – an album nearing the platinum level and a bona fide hit single for a band whose singles never do well. And as he scrolled through New York City, Buck was carrying one of the rewards of success: that afternoon he’d plunked down about $500 for an oddly shaped Italian mandolin-cum-lyre (“a mandolin with pretensions,” he says) that he’d liked because of its shape and figured he’d learn to play sooner or later.

Once upon a time it seemed that R.E.M. was the ultimate college band. R.E.M. was formed on a college campus, the University of Georgia in Athens, and its early support came from college radio. Its dense, sometimes obscure, folkish pop-rock songs, with enigmatic lyrics by the group’s singer and resident eccentric, Michael Stipe, were perfect fodder for late-night dorm discussions. And its guitar-driven sound, take-it-to-the-clubs approach to touring and low-key image helped shatter the prevailing Anglophilia of the early 1980s and influenced regional bands in college towns across the United States.

But now, R.E.M. has finally and fully graduated. The band is out of the underground and into the real world, if you can call rock stardom a real world. And to an observer watching Peter Buck buy a new instrument or get recognized on the street, it’s hard not to think of the chorus of R.E.M.’s next single. “It’s the end of the world as we know it,” sings Michael Stipe, and then he tosses out the punch line: “And I feel fine.”

“I will never, ever, ever, ever play another general-admission show, ever. Ever. And I will never, ever, ever play a place that’s bigger than the place we played tonight, ever.” A pause. “Did I put enough evers in there?” It’s one day later, and Peter Buck isn’t feeling so fine. R.E.M. has just played to 12,000 fans in Williamsburg, Virginia, the only general-admission show of their 1987 tour – and while nobody was hurt, the crush down front was serious, and the band was upset.

Not that most people could tell. For about ninety-five minutes, the swarthy, genial drummer, Bill Berry, sat in back in an undershirt and white shorts, pounding with real authority; Mike Mills, whose clean-cut Poindexterish looks contrast with the shaggier, grungier look of the rest of the band, played melodic bass lines and sang backup; Peter Buck stood on the side of the stage, cutting a Keith Richards-esque figure with his black jeans and vest, his white shirt and his low-slung guitar; and in the center Michael Stipe staggered about the stage spasmodically, peeling off layer after layer of coats, jackets and T-shirts and charismatically howling out his mostly dark, sardonic lyrics and introducing songs with deadpan, disjointed comments. It wasn’t a great R.E.M. show by any means, but it was tough and forceful – and its problems weren’t apparent until the final encore, “The One I Love,” when Buck, nailed twice by wet sweat socks thrown from the audience, threw down his guitar and stormed offstage.

After the show, Buck grabs a six-pack from the tour bus and heads toward his room. Like the other members of the band, he isn’t sure that when it comes to venues, bigger is better. He for one isn’t interested in having R.E.M. become an arena band. “People have been trying to convince me for a long time that we could play bigger places and enjoy it,” says the lanky, fidgety, garrulous Buck. “And tonight proved, if nothing else, that there’s no fucking way I can. If we ever did a stadium tour, I would imagine it would be about the last thing we’d ever do together.”

Some long time fans have already accused R.E.M. of selling out, of courting mainstream success. The band doesn’t agree. “If you look at the album charts, the only thing up there on the charts that’s weirder than we are is Prince,” says Buck. “I mean, this record seems to me to be pretty uncommercial.”

But one of the songs from that uncommercial record put R.E.M. over the top, hitting the upper reaches of the singles charts when no previous single – from “Radio Free Europe” to “So. Central Rain” to “Can’t Get There from Here” to “Fall on Me” – had even made the Top Seventy-five, And typically enough for this band, “The One I Love” succeeded at least partly because a lot of the audience doesn’t know what it’s about. Listeners hear the opening lines – “This one goes out to the one I love/This one goes out to the one I left behind” – and miss it when what begins as a rueful love song turns hard: “A simple prop to occupy my time” and, in the last verse, “Another prop has occupied my time.”

“It’s a brutal kind of song, and I don’t know if a lot of people pick up on that,” says Michael Stipe. “But I’ve always left myself pretty open to interpretation. It’s probably better that they just think it’s a love song at this point.” A shrug. “I don’t know. That song just came up from somewhere, and I recognized it as being real violent and awful. But it wasn’t directed at any one person. I would never, ever write a song like that. Even if there was one person in the world thinking, ‘This song is about me,’ I could never sing it or put it out.”

Now, though, R.E.M. has got to figure out what kind of follow-up record to make, what kind of tour to do, what size halls to play, what kind of lyrics to write. “There’s a little bit more weight on my shoulders as far as what I say,” says Stipe, who long ago won a reputation for singing his lyrics in an often indecipherable mumble. (The band thinks it’s a bad rap: “One lives in a world where things are not what they seem, and I see no reason not to reflect that,” says Buck.)

Stipe says that his new visibility means he ought to write clearer lyrics. “I guess I’ve figured out that I can’t just blabber anything I want to anymore, which I’ve done before, though not a great deal. On some of the earlier songs, whatever I happened to be singing, we recorded it. Some had very distinct ideas: ’9-9′ has a very distinct idea, but, you know, it was purposely recorded so you could never be able to decipher any of the words except the very last phrase, which was ‘conversation fear,’ which is what the song was about.”

Certainly it’s easier to listen to the last two records and hear Stipe’s personal distaste for much of modern living, or to hear the concerns of a band, some of whose members belong to Greenpeace and quietly donate to selected causes. And while Document is a quirky, thorny record, there’s enough clarity on it to help put R.E.M. in unaccustomed company.

“We’re Top Twenty now, which is unbelievable,” says Stipe. “I can’t believe that we’re up there with Springsteen or whatever. It doesn’t really mean that much, but it does to the industry, and I guess to kids that read.

“And my mom got kinda weepy,” he says, grinning, then stops himself. “No, she didn’t. But she couldn’t believe it, either.”

It started with a Macon, Georgia, high-school band that by all rights should never have existed. Bill Berry played drums, Mike Mills played bass, and the combination was unlikely – because Mills and Berry openly and unequivocally hated each other’s guts.

At the time, Berry was a budding hoodlum who’d just moved to Macon from the Midwest (he was born in Bob Dylan’s home town of Hibbing, Minnesota); Mills was a Georgia native and a self-described “goody-goody.” “I hated him from the first time I saw him.” Berry says with a laugh, “’cause he had that same kind of nerd appeal that he has now, and I was just starting to experiment with drugs and stuff. He was everything I despised: great student, got along with teachers, didn’t smoke cigarettes or smoke pot…”

But an unknowing mutual friend invited Berry to sit in with a band that included Mills. Berry wanted to storm out but couldn’t because his drums were too heavy for effective storming; instead, he decided to endure Mills, and before long the two were best friends. Together, they moved to Athens to attend the university, where Berry wanted to study law and become a music-industry lawyer and manager. They’d all but given up music by then – but heartened by the first wave of Seventies punk bands, they took instruments with them to Athens.

Before long they met Peter Buck and another Georgia student, Michael Stipe, who had met each other in the record store Buck managed. Both had spent their childhoods traveling extensively; army brat Stipe, the youngest R.E.M. member (now twenty-seven), developed a keen interest in painting, photography and medieval manuscripts, while Buck, the oldest at thirty, grew up spending all his free money on records (the Velvet Underground, the Move, the Raspberries, the Kinks) and books (Jack Kerouac, Thomas Wolfe).

“My parents were pleased that I was well read,” Buck says. ‘But the fact that I was well read and also listened to Iggy and the Stooges was kinda … well, they ended up being supportive. Much later.”

Athens was full of new rock ‘n’ roll bands, from the B-52s to Pylon to the Method Actors. R.E.M. wasn’t looking to be the next big thing; the four formed a band to have fun and play a few first parties. They also moved in together, taking up residence in an abandoned church that, says Buck, “has been romanticized beyond belief. It was just a rotten, dumpy little shit hole where college kids, only college kids, could be convinced to live.”

Their early shows were mostly covers: “Needles and Pins,” “God Save the Queen,” “Secret Agent Man,” “California Sun.” “We just tended to play everything loud and fast,” says Mills. They made $343 at one of their first shows; Berry still remembers standing under the stage counting the money, which seemed like a fortune.

They began writing their own songs: “Gardening at Night” came very quickly, and “Radio Free Europe” followed shortly thereafter. And when they did their first out-of-town show in North Carolina, pan-time booker Jefferson Holt was impressed. “They’ll hate me for this,” he says, “but to me the first time I saw them was like what I would have imagined of seeing the Who when they first started. They blitzkrieged through some incredibly pop covers, then they had some of their own songs that were real pop but also some stuff that wasn’t pop.”

Jefferson Holt soon became their manager. Another friend from Athens, a young lawyer named Bertis Downs IV, helped them handle the legal side of things: he persuaded them to incorporate, even though their only asset was a $1250 van, to form their own publishing company and to trademark the band’s name – a precaution Downs says he took because two other R.E.M.’s, one REM and one Rapid Eye Movement, had already come and gone. (Downs is still the band’s lawyer.)

It wasn’t long before gigs got in the way of classes, and Berry was asked to leave the university; the rest of the band decided to drop out, made an independent single (“Radio Free Europe”/”Sitting Still”), toured incessantly and began to pick up college airplay, critical raves and major-label interest. “The thing is,” says Holt, laughing, “the great reviews and the Top Ten lists didn’t change the fact that we were in a ’75 Dodge Tradesman lugging all our gear ourselves and still showing up and playing to eight or nine people.”

I.R.S. signed the band and agreed to release the already-recorded EP Chronic Town, provided the band re-record “Radio Free Europe” and “Sitting Still” for their first full-fledged album. Chronic Town got some attention; the album, Murmur, was an instant college radio and underground rock classic.

Reckoning, in 1984, was more of the same – and suddenly it seemed as if the regional American rock scene was full of jangling, guitar-based bands that sounded like R.E.M. and toured like R.E.M. “I think maybe what we did,” says Mills, “was give people a touchstone. As an alternative to the synthesizer-dominated electronic music that was being made, we were the most visible sign that something else was going on. It doesn’t mean that we were the best, and we certainly weren’t the first. But perhaps we were the most accessible and the most visible.”

Visible and accessible and influential as they were, the members of the band went through one of their periodic dark spells when they went to London to record their third album, 1985′s Fables of the Reconstruction. “A lot of things were catching up to us,” says Mills. “We didn’t realize we were going to be asked to do certain commercial kinds of things, and we thought, ‘Is this what we really want to do?’ It was, maybe, a crisis period, just an overall feeling of unease.”

“Fables sucked,” says Berry bluntly – though others in the band are somewhat happier with the moody, atmospheric record.

“It wasn’t the best time in my life, either,” says Fables producer Joe Boyd, who adds that despite R.E.M.’s inner turmoil at the time, “they seemed to get along better than most groups I’ve worked with.” He also found mixing the record to be a singular experience. “When you mix a record, traditionally the singer wants his voice louder, and the guitar player says, ‘Turn up the guitar,’ and the bass player says, ‘Can’t you make the bass parts punchier?’ With R.E.M., everyone wanted themselves turned down.”

But the next time around, the band turned it up: Life’s Rich Pageant was clearly designed as a hard-edged response to Fables. By then, though, another complaint sometimes crept into R.E.M.’s once unanimously positive reviews: the idea that the band mapped out their musical territory on the early albums and wasn’t changing it or challenging its audience.

“We’re not so versatile that there’s not going to be something in common in all our records,” says Berry. “I think we’ve developed a little more now, to where we can get away with doing a ‘King of Birds’ on a record, and break it up a little bit. But that’s still not going to stop ‘Heron House’ from sounding a little bit like ‘Gardening at Night’ slowed down. We try to diversify as much as possible, but a lot of our stuff does tend to sound the same. That’s one of our weak points, I’ll admit it.”

And their strong points?

“I think we’ve kept our integrity intact pretty much,” Berry says. “I’m not doing anything today that I’ll be ashamed of in ten years. And we’ve all aged pretty well. I think we all weigh the same as we did. And we get along, which is pretty rare. I’m not saying we haven’t had our flare-ups, but I’ve had more fights with my wife in the last two years than I have with any of these guys in the last seven years.” He shrugs. “Amazingly, our chemistry hasn’t broken down yet.”

“Hi, My name is Michelle, and I’ll be your waitress today.”

Michael Stipe looks up at the perky Ramada Inn waitress standing above him and grins shyly. “I’m Michael, and I’ll be your …” His soft, deep voice trails off. “Um…your customer, I guess.”

Stipe, certainly, is R.E.M.’s resident oddball, a shambling, simultaneously intense and spacey conversationalist who’s apt to interrupt the talk by pulling a couple of pressed leaves out of his pocket or by pointing at an interviewer’s hand and saying, “You’ve got hair on the side of your hand, too.” Some of the behavior is clearly due to what Peter Buck calls Stipe’s “very weird sense of humor, which is actually two senses of humor. One is very Laurel and Hardy – we can watch Animal House, and he’ll laugh at the stuff where I’ll think, ‘He can’t possibly like that.’ And then there’s the other part of him, where I can barely tell that he’s saying something funny, and people around him can’t tell at all.”

Some of the eccentricities may be inherited: Stipe says his father has been hoarding bottles in his basement for years. “Now he’s decided to build this extension onto my parents’ house, made out of bottles,” says Stipe. “And he’s a math wizard. He and I had this discussion about Vietnam, and he went on for two and a half hours explaining a lot of his ideas about it, and about the draft, and about America and American foreign policy, and somehow it wound up working into rock ‘n’ roll and how I fit into it.”

During the discussion Stipe’s father covered a sheet of paper with words and mathematical equations. The result, Stipe says, looked like it belonged in the Swiss museum that collects outsiders’ art – the work of mental patients, convicts and others on the fringes of society. “It’s really beautiful,” says Stipe affectionately.

And some of the eccentricities seem to be the purposeful designs of a shy person who wants to keep the world at arm’s length. “Michael is normal as hell, and as different as anybody you’d want to meet,” says Jefferson Holt, who lived with Stipe briefly. “It’s an act of will by which he creates his life and the space in which he lives.”

But if Stipe is the band’s shyest, most private member, he’s also the one most often besieged by R.E.M. fanatics. “I think a lot of people get presumptuous, think they’re soul mates, think Michael is speaking directly to them,” says Mike Mills. “I mean, that’s the point of some of his lyrics: to get to someone’s insides. But that doesn’t mean he wants them to come over to his house, you know?”

When the subject is broached, Stipe grows visibly uncomfortable. “Athens is full of people looking for R.E.M.,” he says, shaking his head. “Not all the time, but…” He trails off. “I don’t really want to talk about that because I’m still a little bitter about it.”

Still, Stipe says he’s learning out how to deal with the attention. “Not to be Cartesian,” he says, “but, you know, I feel fairly well protected now from people coming up to me and wanting a piece of me. I’m able to dole out what I want, you know. Whereas before I was a lot more accessible for people to reach in and pull out vital organs.”

So Stipe stays in more-protected situations: a large, muscular personal aide stands beside him at backstage gatherings, and he rides from show to show in his own bus (accompanied, on the first leg of the tour, by 10,000 Maniacs singer Natalie Merchant, whom he joined onstage every night during the Maniacs’ opening set), separate from the rest of the band. The separate buses, says the band, weren’t planned – but Stipe, who eats health foods and can’t stand to be anywhere where the windows won’t open, couldn’t tolerate the sealed windows in the band bus.

“I used to really hate touring,” says Stipe. “But it’s gotten easier for me. It’s not that I’ve relaxed more, it’s just that the rest of the world has relaxed a little bit, so it’s easier for me to walk the streets and stuff. To find food and find water. And find windows that open occasionally.”

But the separate buses also reinforce Stipe’s separation from the rest of the band, a separation that already existed to some degree. “There is a difference, and it’s always been there,” says Bill Berry. “There’s no doubt that he’s an eccentric individual, that that’s the way it should be. He is who he is, and R.E.M. is who they are because of who’s in it.”

Stipe concedes that there are differences between himself and the musicians in the band: for one thing, he prepares for a show by getting quiet and withdrawn, which means the hyperactive Buck has standing orders to stay away for a couple of hours before each concert. Still, Stipe says, “we share so much more in common than most people would ever give us credit for. We’re very much a group.”

Stipe glances across the room, then shakes his head. “I’m watching TV in a mirror,” he says. “I just realized that. I’ve been focusing in on this thing, and it’s a television set in a mirror.” He grimaces. “Nothing really upsets me more, on a really regular basis, than television. And the whole culture that’s built up around it is horrifying. The fact that I can sit here and talk to you, and there’s a TV in the corner, and I’m attracted to it… The best comparison I can make is moths to a light.”

Television culture provided part of the inspiration for “It’s the End of the World As We Know It (and I Feel Fine),” a song, Stipe says, about “bombastic, vomiting sensory overload.” But the first line of that song deals with another calamity – “That’s great, it starts with an earthquake” – and when he finds out the reporter’s from Los Angeles, Stipe’s thoughts turn to the recent 6.1 tremor that he’s been mentioning when introducing “End of the World.”

“Wow, were you there when the earthquake and everything happened?”

Yep.

“Are you gonna move?”

Nope.

“A lot of my friends from the West Coast called me immediately, because they wanted to know when the next one was coming. I usually get headaches when an earthquake happens – when Mexico City went down, I was on my back for three days, really bad. But last week was the first time since I became aware of it that there’s been an earthquake anywhere in the continent and I didn’t know about it ahead of time.”

He rambles on about earthquakes for a while, mentions the Superman movie in which Lex Luthor buys up soon-to-be beach-front property in Nevada, then admits that even if California were to fall into the ocean – if it does, he’s not saying that it definitely will – the rest of the country would be in big trouble, too.

“My parents’ farm is right on a fault line, in Georgia,” Stipe says absently. “But it’s not like the San Andreas.”

He looks up and laughs and does his best to change the topic, albeit in his own disjointed fashion.

“Anyway, earthquake talk,” he says with a shrug. “It’s the end of the world.”

With that, Michael Stipe raises his coffee cup. “Cheers.”

“We’ve already agreed that we will not make Michael go to the West Coast in 1988,” says Jefferson Holt, chuckling, as he sits backstage in Fairfax, Virginia, the Washington, D.C., suburb where the band is playing a welcome reserved-seating show. But then, calming Stipe’s earthquake phobia isn’t going to mean R.E.M. will cancel any shows or reroute any tours next year – because for now the band plans to follow up its biggest success to date with a year, in Bill Berry’s words, “to clean out the closet and rearrange the shoes.

“We’ve been locked in this thing for the last six years,” he adds, “We go in the studio, put out a record, tour, rehearse. It’s getting to be a really predictable thing. And I’m not saying it’s stifling us, but this record bought us the opportunity to take a year off.” He laughs. “We were gonna do it anyway, so thank God the record’s doing what it is.”

After the tour, Berry plans to go fishing, play some golf, spend time on his boat, do some reading and simply hang out in Athens with his wife of a year and a half, Mari. Mills will likely hit the golf course himself, perhaps join a softball or basketball league and definitely spend some time working in his yard. Buck will go back to the big new house he recently bought, which is cluttered with the flotsam and jetsam of the road; he’ll probably work with a few new bands or with friends like Fleshtones guitarist Keith Streng. Stipe – who’s directed some of the band’s videos in the past – has some video projects in the works. Once in a while, Mills and Berry will get together in the Corncob Webs, their Sixties-cover band. Many nights the whole band will wind up together, in one of Athens’s three clubs. And next fall they’ll go into the studio to make their sixth album, one they hope will be weird rather than commercial.

R.E.M. is also at another crossroads: with Document, the band’s deal with I.R.S. Records has expired. Plenty of other labels have already expressed interest in signing away I.R.S.’s biggest band. “We may or may not sign with I.R.S.,” says Berry. “That’s undetermined.”

The band’s long-term plans are nebulous: the only constant is that they all assume that one day they’ll stop working together. It’s not that the band seems to be in the midst of any major personality conflicts – by all accounts they get on better now than they ever have – but that they simply don’t plan on doing this indefinitely.

Stipe says he’s not sure he’ll even be in the music business in another decade; if he is, he says, he can see himself being like Tom Waits, with an offbeat, theatrical ensemble. Berry says he simply hopes that until record making gets to be tiring – which he assumes will happen long after they’ve stopped touring – they’ll still work together in some form, even if not as R.E.M. But before they drift apart, Peter Buck has a goal.

“I think it’s within us to make one of those Top Twenty all-time rock & roll great records,” he says. “We haven’t done that yet, and I don’t know how you pull that out of you. Sometime, somewhere, the inspiration hits. And you hope it hits when you’re awake and you have a guitar in your hands.

“All I want to do,” he adds, “is make great records, and be a great band, and play great live. But I’m not sure that I want to keep going the way that we’re going. I have no doubts that we can do it; it’s just I don’t know if I want to do it. For me, personally, I’d rather turn out a record that’s really brilliant and then try to find some other way to present ourselves onstage, something that short-circuits the rock ‘n’ roll rah-rah thing.

“I don’t know how to do that, but I think there’s some way to do this at an interesting level. Who knows? Maybe it means putting out a record that’s really great and doesn’t sell at all. That would be really cool.”

In the meantime, R.E.M. has a hit album, a hit single, a new, bigger audience and a tour that’ll run until the end of November. And when they take the stage in Fairfax, they’ve found exactly the right way to respond to their new situation, at least for a night: the show is a rock-hard, well-paced, furious blast of intelligent and provocative rock ‘n’ roll. For more than two hours, Stipe reels around the stage, and his band mates play with surprising fury; with the repertoire drawn mostly from the last two albums, you can hear the hardening of this band’s sound and clearly catch the vehemence and humor in Stipe’s assaults on an environment he finds nearly unlivable.

For the encores, they pull out all the stops: first, there’s a three-song set of covers, from Lou Gramm’s “Midnight Blue” (the crowd laughs uneasily, then responds to the anthemic chords, while Stipe strikes exaggerated arena-rock poses and the rest of the band plays hard on a song they really do like) to Television’s “See No Evil.” They do the hit, with a gorgeous, hushed introduction; they do Chronic Town’s “Wolves, Lower” after Stipe says, “Moving way back to the Pleistocene era …” And at the end, Stipe and Buck stand side by side at center stage for an exquisite slow version of “So. Central Rain,” which ends with Stipe tossing in a few revealing lines from Peter Gabriel’s “Red Rain”: “I come to you, defenses down, with the trust of a child.”

Three hours, a few six-packs and a couple of bottles of champagne later, the members of R.E.M. straggle into the lobby of their hotel. It’s 2:30 in the morning, and the only other guests in the lobby are a group of Continental Airlines pilots and stewardesses, who pile into one elevator and then yell out, “Don’t any of you want to ride with us?”

With that, Michael Stipe – his flyaway hair tied back in a ponytail and tucked under a beret, his tattered clothes more disheveled than usual and his eyes still caked with heavy black eye makeup – strolls into the elevator. As the doors start to close, his voice can just be heard: “So, are you all with an airline?”

And when the other members of the band take another elevator to their floor, Stipe is waiting on the landing, a huge grin on his face. “They asked if I was in a band,” he says enthusiastically, “and when I said I was in R.E.M., they got all excited and said, ‘Is the whole band staying in this hotel?’”

In the hotel hallway the guy who’s supposed to be R.E.M.’s shyest member breaks up laughing, and exclaims, “It was great!” And suddenly it looks as if this arty college band might have the temperament for the real world after all.

This story is from the December 3, 1987 issue of Rolling Stone.

Related• R.E.M. Break Up After Three DecadesPhotos: R.E.M. Through the YearsInterview: R.E.M. Roar Back with ‘Collapse Into Now’

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Rick Santorum asks Google to change his Dan Savage-created result

Rick Santorum is not too happy about the first search engine result for his name. It’s a definition for the word “Santorum,” as envisioned by columnist Dan Savage. It does not mean politician. It’s a sex-related, vulgar term we cannot come close to describing on these pages.Former Sen. Rick Santorum. (Jae C. Hong – AP)

Now the Republican presidential hopeful has reportedly contacted Google to help fix his problem, Politico reports.

“I suspect if something was up there like that about Joe Biden, they’d get rid of it,” Santorum. a former senator from Pennsylvania, told Politico. “To have a business allow that type of filth to be purveyed through their Web site or through their system is something that they say they can’t handle but I suspect that’s not true.”

Indeed, Google said there’s nothing they can do anything about the results.

A spokesperson for the company told Politico that Santorum has to ask the webmaster of the page to have it removed. “Google’s search results are a reflection of the content and information that is available on the web,” the spokesperson said.

The Web page that vexes the former senator, SpeadingSantorum.com, was created by sex columnist Dan Savage. After Santorum said the definition of marriage is between a man and woman. not “man on child” or “man on dog,” Savage asked his readers to create a definition of a sex act, and the word Santorum took on new life.

Santorum has been aware of this problem for some time. In February, he told Roll Call, “It’s one guy. You know who it is. The Internet allows for this type of vulgarity to circulate. It’s unfortunate that we have someone who obviously has some issues. But he has an opportunity to speak.”

To add insult to injury, Santorum has probably ended up making his Google problem worse in what’s called the Streisand effect.

When Barbra Streisand sued a photographer for taking pictures of her home in 2003, she boosted interest in the photos — thus defeating her original purpose. Likewise, Santorum’s request to Google will just likely boost the very results he wants taken down.

Further reading: Google goes to Congress

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Rick Santorum Asks Google to Help with his Google Problem

Senator and current Presidential hopeful Rick Santorum still has a Google problem. When I say “still,” I am referring to the fact that Santorum has had this little problem for going on four years.

And apparently, he has contacted Google in an attempt to rid himself of the annoyance. That request has been denied.

First, a little background for those of you who are unfamiliar with Rick Santorum’s Google problem:

Years ago, Santorum drew the ire of popular blogger Dan Savage by making some unsavory comments regarding the gay community. During an interview where he stated the position that consenting adults have no expectation of privacy, Santorum equated homosexuality to bigamy and incest. He also made some comments relating homosexuality to bestiality, although he has maintained that the were taken out of context.

Either way, Savage and some other activists were less than pleased. They launched a Google bombing campaign to redefine the definition of the word “Santorum.” Through SEO tactics and link-trading, they were able to push a website called spreadingsantorum.com to the very top of the Google search results for “Rick Santorum.”

To this day, if you search “Rick Santorum” or just “Santorum,” the first thing that you will see is this definition:

1. The frothy mix of lube and fecal matter that is sometimes the byproduct of anal sex. 2. Senator Rick Santorum.

For reasons that need be explained to nobody, Rick Santorum isn’t pleased with this. And Politico is reporting that the Senator has contacted Google in an attempt to have the site removed. According to the report, he referred to Google as a purveyor of filth and an irresponsible business –

“I suspect if something was up there like that about Joe Biden, they’d get rid of it,” Santorum said. “If you’re a responsible business, you don’t let things like that happen in your business that have an impact on the country.”

He continued: “To have a business allow that type of filth to be purveyed through their website or through their system is something that they say they can’t handle but I suspect that’s not true.”

A Google spokesperson has responded, saying that Google “does not remove content from out search results, except in very limited cases such as illegal content and violations of out webmaster guidelines.” Basically, no dice, Senator.

In a recent Funny or Die video, Dan Savage threatens to redefine the word “Rick” if the Senator attacks gay people during his presidential campaign. The clip taps celebrities with a particular interest in keeping the name unscathed. It’s funny, and NSFW –

Santorum’s Google problem was front and center back in May when The Daily Show decided to bring it up on his birthday.

Unfortunately for Rick Santorum, his apparent request to Google has really only done one thing: Upped the searches for “Rick Santorum” on Google.

About Josh Wolford
Josh Wolford is a staff writer for WebProNews. He likes beer, Sriracha and Cormac McCarthy. Twitter: @joshgwolf Google: Google+

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Facebook adds real-time ‘ticker’ to overhauled news feed, donates old layout to science (video)

Facebook is about to turn your social life into an online newspaper. That’s the takeaway from a new slate of changes the company unveiled yesterday, ahead of its annual f8 developer conference in San Francisco. From now on, if you log in to Facebook after a lengthy hiatus, your news feed — much like the front page of a daily paper — will consist of a list of “top stories,” photos and updates that were posted while you were away, with each high-priority item tagged with a blue earmark. More frequent users, on the other hand, will find a list of most recent stories presented in chronological order, along with larger photos embedded directly within their news feed. The company has also introduced a new “ticker” feature that provides users with real-time updates on their friends’ activity, displayed along the right-hand side of the home page. Here, you’ll find the exact same updates you’d see on a real-time news feed, with the crucial difference being that you’ll be able to interact with each development without missing a beat. If you see that a friend comments on a cat video, for example, you’ll be able to click that item in the ticker and add your two cents, without having to navigate away from the home screen. Facebook will likely provide more details on these new features at its f8 tomorrow, but you can find more information in the demo video, after the break.

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Cops charged in homeless man’s death

Demonstrators hold a moment of silence at a makeshift memorial for Kelly Thomas, a homeless man who died after an altercation with several police officers in Fullerton, California.

STORY HIGHLIGHTS

A Fullerton police officer pleads not guilty to involuntary manslaughter
The charges against him and another officer stem from a homeless man’s July beating
The officers were put on paid leave after Kelly Thomas died following an arrest
Thomas, 37, was a homeless man with schizophrenia

Santa Ana, California (CNN) — A Fullerton police officer pleaded not guilty Wednesday to charges of involuntary manslaughter and felony use of excessive force in the beating death of a mentally ill homeless man who died after a police arrest.

Cpl. Jay Patrick Cicinelli was released Wednesday on $25,000 bail, according to his attorney and a spokeswoman for the prosecutor.

Meanwhile, the arraignment of the officer facing more serious charges, Manuel Anthony Ramos, was continued to September 26 at the request of his attorneys. Ramos was being held Wednesday after Orange County Superior Court Judge Erick L. Larsh set his bail at $1 million.

Ramos, who is 37 and a 10-year veteran of the Fullerton police, is charged with second degree murder and involuntary manslaughter in the July beating death of Kelly Thomas, who was unarmed.

Thomas’ father, Ron, urged the judge not to reduce Ramos’ bail from $1 million because of “the horrible manner in which my son was murdered.”

The September 26 court hearing, however, will also review Ramos’ bail.

The judge ordered both officers to surrender their guns within 24 hours. He also set a pretrial hearing for Cicinelli on November 4.

The charges were announced Wednesday by the Orange County prosecutor.

The actions of Ramos “were reckless and created a high risk of death and great bodily injury,” District Attorney Tony Rackauckas told reporters.

Ramos faces a maximum sentence of 15 years to life if convicted, authorities said. Cicinelli, who is 39 years old and a 12-year Fullerton police veteran, faces a maximum of four years in prison if convicted.

Kelly Thomas, a 37-year-old homeless man with schizophrenia, was beaten by police during an altercation and died five days later. The FBI is also investigating civil rights violations in the case.

Six Fullerton officers, including Ramos and Cicinelli, were put on paid leave after Thomas’ death. The case drew widespread attention to the police department of Fullerton, located about 25 miles southeast of downtown Los Angeles.

Since then, two other brutality allegations have been made by men who were allegedly injured by Fullerton police last year, and Officer Kenton Hampton has been placed on paid leave in connection with one of those two complaints, a department spokesman said. Hampton, 41, is a five-year veteran of the Fullerton police, prosecutors said.

The other four officers involved in the Thomas incident — Hampton, Officer Joseph Wolfe, Sgt. Kevin Craig and Cpl. James Blatney — were not charged because “the evidence does not show knowing participation in an unlawful act on the part of these officers,” the prosecutor said in a statement.

Thomas suffered brain injuries, facial fractures, rib fractures, and extensive bruising and abrasions, the prosecutor’s office said.

The Orange County coroner listed the manner of death as a homicide and the cause of death to be “anoxic encephalopathy with acute bronchopneumonia,” asphyxia caused by “mechanical chest compression with blunt cranial-facial injuries during physical altercation with law enforcement,” prosecutors said.

The toxicology report showed no illegal drugs or alcohol in Thomas’ system, prosecutors said.

“The cause of death in this case is mechanical compression of the thorax, making it impossible for Kelly Thomas to breathe normal. In other words, with the chest being compressed, Kelly Thomas was unable to inhale,” Rackauckas told reporters. “Over time his brain was deprived of oxygen.”

Ramos, who is accused of setting into motion the events that led to Thomas’ death, made initial contact with Thomas on July 5 after police received a call about a homeless man looking in car windows and pulling on handles of parked cars, Rackauckas said.

Cicinelli, who arrived at the scene later, is accused of using excessive force when he allegedly assaulted and beat Thomas, “acting recklessly, under the color of authority without lawful necessity,” the prosecutor’s office said.

Cicinelli is accused of using the front end of his Taser to hit Thomas on the head and face eight times while Thomas was pinned to the ground by other officers and was making no audible sounds, indicating that Thomas was “down and seriously injured,” the prosecutor’s office said.

Ramos made “a deliberate showing of putting on Latex gloves” in his detention of Thomas, Rackauckas said.

Ramos is accused of making two fists with his gloves still on in front of Thomas, the prosecutor said.

“He lifted his fists to Kelly Thomas and he said, ‘You see my fist? Now they’re getting to ready to F you up,’” Rackauckas told reporters, using “F” instead of the full profanity.

Rackauckas said Ramos’ conduct was unacceptable and “not protecting and serving” the public.

“Ramos had to know that he was creating a situation where Kelly Thomas feared for his life and was struggling to get away from an armed officer who was going to ‘F’ him up,” Rackauckas said.

The district attorney said he viewed a bus depot surveillance video of the beating. The video shows 16 minutes passed from the initial contact by police to the start of the beating and alleged unlawful police conduct, the prosecutor said.

“It’s heartrending. It’s hard to watch and listen to. It’s a person saying he’s sorry, calling for his dad and asking for help. He seems to know that it’s over just before it is,” Rackauckas said of the video.

“Officer Ramos had prior contact with Kelly Thomas and he knew Kelly Thomas and who he was. He was a homeless drifter who frequented that area,” Rackauckas said.

In all, prosecutors also reviewed video from two cell phones and bus camera videos, statements by 151 witnesses, police reports written by all six officers, the coroner’s report, medical reports, and the batons and Tasers of the officers, Rackauckas said.

Asked about the charged officers’ motive, the prosecutor responded: “That’s a pretty good question. It just appears from watching the video that the officer became increasingly angered with Kelly Thomas as this goes on.”

“Ramos is accused of instructing Thomas to put his legs out straight and place his hands on his knees, but Thomas had difficulty following Ramos’ instructions,” Rackauckas said in his statement. “Thomas appeared to have cognitive issues.”

The physical altercation began at 8:52 p.m. and lasted nine minutes and 40 seconds until Thomas was handcuffed and no longer moving, the prosecutor said.

“Throughout the physical altercation, Thomas struggled, yelled and pleaded, ‘I can’t breathe,’ ‘I’m sorry, dude,’ ‘Please,’ ‘OK, OK,’ ‘Dad, dad,’ and ‘Dad, help me.’

Thomas was severely bleeding but the officers did not reduce their level of force. Throughout the struggle, Thomas’ actions were defensive in nature and motivated by pain and fear,” the prosecutor added in a written summary of the incident.

Cicinelli is accused of kneeing Thomas twice in the head and using his Taser four times on him, including three times as a “drive stun,” or direct application on the skin, for about five seconds each, the prosecutor said. The fourth time was a dart deployment, in which two darts connected to wires are ejected and stick to the skin or clothing, for about 12 seconds.

“Thomas screamed and yelled in pain while being Tased,” the prosecutor’s summary said.

Cicinelli is accused of using the stun device “unreasonably and unnecessarily” because Thomas was pinned to the ground by several officers and was vulnerable with his head and face exposed, the prosecutors said.

“The biggest shame about this case is the fact that it could have been avoided,” Rackauckas said in his statement. “This never had to happen, and it never should have happened.”

After announcing the charges during a news conference, Rackauckas held a private meeting with Ron Thomas and his attorney.

After that meeting, Ron Thomas told reporters that he was “very, very happy” with the outcome of the prosecutors’ investigation.

“Tony Rackauckas made it very clear that this murder charge will not be reduced,” Thomas told reporters. “We came in here expecting the worse and got the best. He’s extremely serious about prosecuting to the fullest extent.”

CNN’s Sandra Endo contributed to this report.

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Crystal Cathedral Sale Moves Forward

(Photo: REUTERS/Alex Gallardo)

A view of Crystal Cathedral in Garden Grove, California August 10, 2011. The bankruptcy sale of Crystal Cathedral, the glass-walled Orange County church known for its “Hour of Power” broadcasts, has touched off a bidding war between a Roman Catholic diocese and a local university. The church’s ministry, meanwhile, has announced that its campus is not for sale and launched a pledge drive to keep the cathedral.

Nearly 400 creditors were given a timeline to vote on a sale plan for the Garden Grove, Calif., megachurch. Already, they have received several offers, with the highest bid coming from the Roman Catholic Diocese of Orange for $53.6 million.

“Everyone is looking to have a sale occur as soon as possible,” said Nanette Sanders, attorney for the creditors, according to the Los Angeles Times.

The Crystal Cathedral, founded by Robert H. Schuller, filed for Chapter 11 bankruptcy protection last October as it faced lawsuits for the debts it owed vendors from the 2009 “Glory of Christmas” production.

Along with past due expenses, the church was also experiencing revenue decline.

In May, the Crystal Cathedral, currently led by Senior Pastor Sheila Schuller Coleman, announced that it would place the Orange County church on the market to resolve its financial woes. The original plan included the sale of the 40-acre campus to a real estate group with a guaranteed option of leasing it back for 15 years. The church would also have the option later of buying back the Crystal Cathedral.

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A few months later, Crystal Cathedral Ministries Board Member Walt Kallestad said that church leaders decided not to sell the property. Instead, they would raise $50 million through a fundraising campaign.

Currently, the church’s website states “Help save the Crystal Cathedral” and directs people to make donations.

The creditors committee, tasked with recovering $50 million in debt from the ministry, threatened to sue if the church impeded the sale of the property.

After Wednesday’s hearing, creditors have been given one month to decide on an exit plan and vote on a buyer.

A confirmation hearing has been scheduled for Nov. 14 when the plan will be officially approved.

Other potential buyers include Chapman University, My Father’s House International Church in Norco, and Hobby Lobby.

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Lehman, Allen Family, Crystal Cathedral, Vitro: Bankruptcy

September 15, 2011, 9:08 AM EDT

By Bill Rochelle

(This report contains items about companies both in bankruptcy and not in bankruptcy. Updates Lehman and adds Crystal Cathedral and Innkeepers in Updates, Jefferson County and Solyndra in Briefly Noted and section on Daily Podcast.)

Sept. 15 (Bloomberg) — Barclays Plc fended off the last effort by Lehman Brothers Holdings Inc. to recover anything in what was originally an attempt to take back $11 billion from the London-based bank arising from the sale of the North American investment-banking operation one week after the Chapter 11 filing in September 2008.

U.S. Bankruptcy Judge James M. Peck wrote an 11-page opinion yesterday concluding that Lehman had a “baseless” claim to recover $500 million in employee bonuses that allegedly weren’t paid by Barclays. Lehman’s theory was based on the notion that the purchase contract obliged the bank to pay $2 billion in bonuses to Lehman workers. When it turned out that Barclays paid only $1.5 billion, Lehman included the difference in its $11 billion suit against the bank.

In February, Peck wrote an opinion denying all of the Lehman parent’s major claims. The dispute over $500 million in unpaid bonuses was left for later determination. Peck said that Lehman’s claim for $500 million was based on “perhaps wishful thinking.”

Peck said that Lehman “misconstrued” his February opinion and based its argument on a reading of the critical contract provision “that departs from the most logical reading of the passage.”

Even if Barclays had an obligation to pay the full $2 billion, Peck said Lehman still would lose because it suffered no damage. The contract didn’t provide that any shortfall would go back to Lehman, and Lehman isn’t being held liable by any former workers. Unable to prove damages, Lehman has no claim, Peck ruled.

While the Lehman holding company has now sustained a complete loss in the litigation with Barclays, the trustee for the remnants of the Lehman brokerage was somewhat more successful. The bankruptcy judge awarded the trustee $2.05 billion from Barclays Capital Inc. on account of so-called margin assets. The Lehman brokerage trustee was ordered to pay Barclays more than $1.1 billion on account of the so-called clearance-box assets.

Lehman, the Lehman brokerage trustee and Barclays already are all appealing from the February ruling.

The Lehman creditors’ committee isn’t taking any position on whether the company was correct in deciding that holders of guarantee claims arising from securities lending agreements don’t quality as senior claims, and thus don’t benefit from subordination agreements.

Lehman filed an emergency motion last week for authority to modify the disclosure statement the bankruptcy judge approved in August. Lehman said it decided that claims against the Lehman parent arising from guarantees of subsidiaries’ securities lending agreements don’t qualify as Class 5 senior debt under the Chapter 11 plan.

Although the committee said Lehman has some basis for its conclusion, the company’s belief doesn’t matter, the panel said. Any creditor who believes a guarantee of a securities lending contract qualifies as senior debt is entitled to object to the plan when it comes up for approval.

Whether or not Lehman is correct, the committee calculates that the effect on distributions will be “de minimis.”

Creditors will begin voting on Lehman’s Chapter 11 reorganization plan by the end of the month if not sooner. The confirmation hearing for approval of Lehman’s plan is set for Dec. 6.

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 Barclays one week later. The remnants of the Lehman brokerage operations went into liquidation on Sept. 19, 2008, in the same court, with 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 Investor Protection Corp. v. Lehman Brothers Inc., 08-01420, both in U.S. Bankruptcy Court, Southern District of New York (Manhattan).

Updates

Allen Family Lenders’ Secured Claim Challenged in Suit

The creditors’ committee for Allen Family Foods Inc. sued the secured lenders this week, alleging that the security interest didn’t cover all of the property sold by the vertically integrated chicken producer in Delaware.

Korean poultry producer Harim Co. Ltd. completed acquisition of the business on Sept. 6 following approval by the bankruptcy court. After adjustments, the sale produced $45.2 million. Harim will make additional payments once the inventory count is completed.

Secured debt when the Chapter 11 case began included $83.2 million on a term loan and revolving line of credit with MidAtlantic Farm Credit ACA, as agent. The committee, in its Sept. 13 complaint, contends that the lenders didn’t properly file mortgages on real property and fixtures. The complaint also contends that the security agreement didn’t cover equipment, machinery, furniture, bank accounts, and general intangibles.

The committee wants the bankruptcy court to value the property not covered by the lenders’ security interest, so the money will be free for unsecured creditors.

The complaint says that $12.7 million was already paid to the lender in satisfaction of the loan made to finance the Chapter 11 case.

Harim won the auction in which the opening bid, by another prospective buyer, was $30 million plus as much as $38 million for inventory.

Seaford, Delaware-based Allen had been producing 400 million pounds of chicken products a year from plants with a 600 million pound capacity.

Allen’s products were sold under brands including Allen’s, Delmarva, and Sussex Farms. Operations included 24 owned and 233 contracted growout farms.

The petition says assets and debt are both less than $100 million.

The case is In re Allen Family Foods Inc., 11-11764, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Crystal Cathedral’s Confirmation Set for November 14

The official creditors’ committee for Crystal Cathedral Ministries, a mega-church in Garden Grove, California, received tentative approval yesterday for the disclosure statement explaining the committee’s proposed Chapter 11 plan.

The confirmation hearing for approval of the plan is set for Nov. 14. The plan calls for selling the church property for no less than $50 million. Secured creditors would be paid first, with the remainder going to unsecured creditors, who would receive interest on their $12.5 million in claims.

The committee already has several purchase offers. There won’t be an auction. The committee will announce selection of the buyer two weeks before the confirmation hearing.

Church insiders, with $2 million in claims, would be paid after unsecured creditors, with interest. If insiders don’t accept the plan, the committee says it will ask the court to subordinate the insiders’ claims.

The committee says that subordination is proper because insiders continued paying large compensation to members of the family of retired minister Robert H. Schuller, even though contributions had fallen and creditors weren’t being paid.

The offers include a $50 million proposal from Chapman University and a bid of $53.6 million from the Roman Catholic Bishop of Orange County, California. The Chapman offer would allow the church to lease back and eventually repurchase part of the facility. The Bishop would use the property for a new cathedral and require the church to vacate within three years.

Crystal Cathedral filed under Chapter 11 in October in Santa Ana, California, saying assets and debt both exceeded $50 million.

Schuller retired from his role as senior pastor of Crystal Cathedral in 2006. His daughter Sheila Schuller Coleman has been senior pastor since July 2009. Contributions declined 24 percent in 2009, partly on account of “unsettled leadership,” according to a court filing.

The case is In re Crystal Cathedral Ministries, 10-24771, U.S. Bankruptcy Court, Central District California (Santa Ana).

Madison 92 Hotel Has Examiner to Recommend on Plan

A trustee won’t take over Madison 92nd Street Associates LLC, owner of the Upper East Side Courtyard by Marriott in Manhattan. Instead, the bankruptcy judge in New York called for the appointment of an examiner.

Some of the company’s owners were asking the judge to appoint a trustee or dismiss the case outright. On the eve of the hearing, they agreed on having an examiner.

U.S. Bankruptcy Judge Stuart M. Bernstein charged the examiner with making a recommendation on the best reorganization strategy, whether it be sale, refinancing, or something else. The examiner will also look into whether the hotel’s lawyers satisfy the so-called disinterestedness test for representing a company in bankruptcy.

Bernstein said the examiner must report within 45 days. The budget will be $100,000. The U.S. Trustee selects the examiner, after conferring with the parties.

In the motion for dismissal, some of the owners said the bankruptcy was filed without corporate authority. They also alleged that some of the owners reneged on an agreement to sell the hotel for $86 million, or enough to pay creditors in full with a “significant return” to equity.

Papers filed along with the Aug. 16 Chapter 11 petition said Chapter 11 was intended to avoid foreclosure and pursue mortgage refinancing.

Assets are $84.5 million while debt totals $75.4 million, including $74 million in secured debt owing to General Electric Capital Corp., a court filing says.

The property is a 226-room hotel on East 92nd Street in Manhattan that opened in 2006. The company has a pending lawsuit against Courtyard Management Corp. alleging fraud and said it would seek to end the existing management agreement, according to the filing.

The case is In re Madison 92 Street Associates LLC, 11- 13917, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

Vitro in Sale Dispute with Banc America, Sun Capital

The U.S. subsidiaries of Vitro SAB that sold their assets three months ago filed papers yesterday intended to compel the buyer, American Glass Enterprises LLC, an affiliate of Sun Capital Partners Inc., to prove its ability to make payments under a lease with Banc of America Leasing & Capital LLC.

Before the newly-created Sun Capital company could take over the lease, BALC wanted proof that the buyer could pay the remaining $3.1 million owing. To resolve an objection to the sale, the U.S. Vitro subsidiaries provided BALC with $2.4 million cash to assure future performance by the buyer.

The sale contract required the buyer to provide the lessor with proof of its financial ability to perform.

BALC refused to release Vitro’s $2.4 million because, it said, the buyer is a newly-formed company with no history of operations and projections for a negative cash flow.

At an Oct. 6 hearing, the Vitro companies, which are subsidiaries of a Mexican glass maker, want the bankruptcy judge in Fort Worth, Texas, to compel the buyer to produce financial information about its ability to perform. If the information is adequate, Vitro wants the judge to force BACL to release the $2.4 million. Vitro said the sale contract “imposed no obligations on the debtors to secure American Glass’s performance under the BACL leases.”

Holders of some of Vitro’s $1.2 billion in defaulted bonds filed involuntary Chapter 11 petitions last year against the Vitro subsidiaries and others. Some put themselves into Chapter 11 this year and later sold their businesses. In April, the bankruptcy judge in Texas denied the involuntary petitions against 10 subsidiaries that hadn’t elected Chapter 11 voluntarily.

The Vitro parent’s reorganization was revived by an appellate court in Mexico after having been dismissed in a lower court. The Vitro parent now has protection from creditors in the U.S. under Chapter 15, where U.S. courts have the power to enforce rulings from foreign bankruptcy courts.

The Sun Capital Partners affiliate purchased Vitro’s U.S. businesses for $55 million.

The Chapter 11 cases for U.S. subsidiaries is In re Vitro Asset Corp., 11-32600, U.S. Bankruptcy Court, Northern District of Texas (Dallas). The Chapter 15 case for the parent is Vitro SAB de CV, 11-33335, in the same court.

Innkeepers Has Exclusivity Extension to November 10

Innkeepers USA Trust was given an extension of the exclusive right to propose a reorganization plan after trimming back the its original request for a new deadline of Jan. 19. As approved yesterday, exclusivity was extended to Nov. 10.

Although Innkeepers confirmed its reorganization plan in late June, the hotel owner needed longer plan exclusivity because Cerberus Capital Management LP and Chatham Lodging Trust purported to cancel the agreement under which they would largely fund the plan by purchasing 64 hotels in a $1.12 billion transaction.

The dispute with Cerberus and Chatham is scheduled for trial in bankruptcy court from Oct. 10 to Oct. 12. For Bloomberg coverage of yesterday’s hearing, click here.

Innkeepers’ plan would have sold the hotel to deal with the claims of the primary secured creditors, Lehman Ali Inc., a non- bankrupt subsidiary of Lehman Brothers Holdings Inc., and Midland Loan Services Inc., the servicer for $825 million of fixed-rate mortgages. For details on the plan, click here for the June 24 Bloomberg bankruptcy report.

The buyers terminated the contract on Aug. 19, contending there was a material adverse change in the business. For a summary of Innkeepers’ lawsuit, click here for the Aug. 30 Bloomberg bankruptcy report.

Apollo Investment Corp. acquired Palm Beach, Florida-based Innkeepers in July 2007 in a $1.35 billion transaction. It had 72 extended-stay and limited-service properties with 10,000 rooms in 20 states. The Chapter 11 petition filed in July 2010 listed assets of $1.5 billion against debt totaling $1.52 billion.

The lawsuit is Innkeepers USA Trust v. Cerberus Four Holdings LLC (In re Innkeepers USA Trust), 11-02557, U.S. Bankruptcy Court, Southern District of New York (Manhattan). The Chapter 11 case is In re Innkeepers USA Trust, 10-13800, in the same court.

HearUSA Wants Exclusivity Extension Until October 28

HearUSA Inc., the operator of 134 stores selling hearing aids in 10 states, completed the sale of the business on Sept. 9 and filed papers this week for an extension until Oct. 28 of the exclusive right to file a Chapter 11 plan.

The sale, to an affiliate of Siemens Hearing Instruments Inc., commanded a high enough price at auction so money would be left over for shareholders. Siemens was the principal supplier and primary secured lender.

The stock, which was mostly trading in the vicinity of 40 cents a share during bankruptcy, spiked to about 90 cents when the results of the auction were known. The stock closed yesterday at 94 cents, up 2 cents a share in over-the-counter trading.

HearUSA said the Siemens acquisition was worth $129 million, plus the waiver of a distribution on the 6.4 million shares of HearUSA stock that Siemens owns. The waiver was worth another $6 million to $7 million, HearUSA said.

The opening bid at auction was an offer of $80 million from William Demant Holdings A/S.

In 2010, HearUSA’s revenue of $83.5 million resulted in a $2.6 million loss from operations and a $7.9 million net loss. Projected revenue this year was $61 million.

The Chapter 11 petition filed in May by the West Palm Beach, Florida-based company said assets were $65.6 million, against debt of $64.7 million.

The case is In re HearUSA Inc., 11-23341, U.S. Bankruptcy Court, Southern District Florida (West Palm Beach).

Filing Soon

Dallas Stars May File Soon for Sale to Tom Gaglardi

The Dallas Stars may file in Chapter 11 this week to set up an auction testing whether an offer from Tom Gaglardi is the best bid for the National Hockey League team, according to a person who declined to be identified because the plan is not yet public.

Gaglardi is chairman and chief executive officer of Sandman Hotels, Inns & Suites.

The sale has been approved by lenders holding more than two-thirds of the secured debt, the person said. The filing is likely to be in Delaware.

For Bloomberg coverage, click here.

Supreme Court News

Law Professors Want High Court Credit Bidding Review

The U.S. Supreme Court should hear an appeal and resolve a split among the circuit courts of appeal on the question of whether a secured creditor can force a bankrupt company to hold an auction where the lender would have a right to bid its secured debt rather than cash.

Seven law school professors filed papers last week urging the high court to hear an appeal from an opinion by the U.S. Court of Appeals in Chicago ruling that a secured lender has the right to make a so-called credit bid. The Courts of Appeal in New Orleans and Philadelphia ruled that credit bidding could be denied in some circumstances. The Philadelphia case was a split decision by a three-judge panel.

The owners of the InterContinental Chicago O’Hare hotel near Chicago’s largest airport filed a petition in early August asking for Supreme Court review. The lenders, who won in the 7th Circuit in Chicago, will submit their papers on Oct. 11. Presumably, they will oppose review.

The law professors want Supreme Court review because, they said, “an unusually permissive venue statute” allows companies to “forum shop” and file in a court where the rule on credit bidding falls in the preferred direction. They urge review because the issue will often escape appeal since a consummated plan may render the issue moot.

The professors filing the friend of the court brief include teachers from the University of Chicago, Fordham University, and Stanford University. The professors include Douglas Baird from Chicago and Susan Block-Lieb from Fordham.

For details on the opinion in the Chicago Court of Appeals, click here for the June 29 Bloomberg bankruptcy report. For details on confirmation of the hotel’s plan, click here for the July 8 Bloomberg bankruptcy report.

The hotel’s owner 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 listed $155 million in debt. The Radisson property listed debt of $120 million.

The Supreme Court has already agreed to review a case in the term to begin in October. The case involves a tax question affecting family farmers reorganizing in Chapter 12.

The credit bidding case in the Supreme Court is RadLAX Gateway Hotel LLC v. Amalgamated Bank, 11-166, U.S. Supreme Court.

The opinion by the Court of Appeals is River Road Hotel Partners LLC v. Amalgamated Bank (In re River Road Hotel Partners), 10-3597, U.S. 7th Circuit Court of Appeals (Chicago). The Chapter 11 case in bankruptcy court is In re River Road Hotel Partners LLC, 09-30029, U.S. Bankruptcy Court, Northern District of Illinois (Chicago).

Briefly Noted

Jefferson County Near Deal, Solyndra Remains Political Football

Jefferson County, Alabama, appears to be close to an agreement with lenders on restructuring $3.1 billion in defaulted sewer bonds. County commissioners can approve a workout when they meet tomorrow. For Bloomberg coverage, click here.

The bankruptcy of solar-panel maker Solyndra LLC continued garnering headlines in the political arena yesterday, when a House committee held a hearing following up an investigation into approval of a $535 million government loan guarantee. For Bloomberg coverage, click here.

Solyndra filed for Chapter 11 protection on Sept. 6 and was raided by the Federal Bureau of Investigation, executing a search warrant in conjunction with the U.S. Energy Department. The Solyndra case is In re Solyndra LLC, 11-12799, U.S. Bankruptcy Court, District of Delaware (Wilmington.)

Daily Podcast

Lehman D&O Insurance, A&P PI Claims, Judges: Bankruptcy Audio

The effects of exhausting the $250 million in Lehman Brothers Holdings Inc.’s directors’ and officers’ liability insurance for one policy year are examined in the new Bloomberg bankruptcy podcast with Bloomberg Law’s Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle. Rochelle also explores how more than $1.3 billion in personal-injury claims may affect distributions to creditors when supermarket chain Great Atlantic & Pacific Tea Co. is ready to emerge from Chapter 11 reorganization. The podcast ends with quotations from Jack Ayer, emeritus professor of law at the University of California at Davis, who explains why a smart young lawyer appointed to the bench sometimes ends up being like “Mickey Mouse in the Sorcerer’s Apprentice” when he or she is older. To listen, click here.

Advance Sheets

Sales Taxes Are Nondischargeable under 507(a)(8)(c)

If an individual collected sales taxes from customers and failed to remit to the state, the resulting liability in the individual’s Chapter 13 case is a so-called trust fund tax not discharged under Section 507(a)(8)(c) of the Bankruptcy Code, U.S. District Judge Noel L. Hillman from Newark, New Jersey ruled on Sept. 13.

Hillman upheld a ruling by the bankruptcy judge and decided to follow similar cases from the U.S. Courts of Appeal in New York and San Francisco.

Hillman acknowledged there is an overlap between subsections 507(a)(8)(e) and 507(a)(8)(c). He resolved the ambiguity in the statute by saying that sales taxes “collected by a third party and owed to the state pursuant to state law is a tax clearly held in trust and nondischargeable” under subsection (a)(8)(c).

The case is In re Calabrese, 10-6583, U.S. District Court, District of New Jersey (Newark).

–With assistance from Tiffany Kary in New York and Steven Church, Dawn McCarty and Michael Bathon in Wilmington, Delaware. Editors: John Pickering, Fred Strasser

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

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.

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Crystal Cathedral Bankruptcy: Church Approved for Sale, Members’ Last Effort to Save It

Crystal CathedralImage Credit: en.wikipedia.org

The Crystal Cathedral in Garden Grove, California has been forced to file for bankruptcy protection last October because of the potential lawsuits from its vendors. It is now in the process of being sold, US news sites reported, September 21, 2011.

According to the reports, the bankruptcy judge has approved the sale of the Crystal Cathedral in order to pay off its creditors, but church members are racing against time to raise money to save it. The Crystal Cathedral with its website slogan of “Saving lives through a message of hope,” has an internationally televised “Hour of Power.”

The church also provides Sunday worship services and fellowships like “Come & Belong,” spiritual growth opportunities like “Come & Grow,” and other worthwhile services for it members. Church members abide by the Crystal Cathedral Vision Statement:

“To be inspired and motivated through possibility thinking to grow in a loving relationship with Jesus Christ to be the persons God dreams, desires, and designed us to be.”

According to Los Angeles Times, Sheila Schuller Coleman, the Senior Pastor of Crystal Cathedral said that “the decline in revenue was due to recession.”

Its members have consequently “made progress” in their bid to save the church before its scheduled deadline come November, reports say. The Crystal Cathedral’s “help save the cathedral,” movement is up in its own website.

Additional news said that interested buyers of the Crystal Cathedral include the Roman Catholic Diocese of Orange, for $53.6 M, and Chapman University in Orange, for $50 M.

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Construction crane collapses at National Cathedral, Herb Cottage damaged, cars smashed

A construction crane fell at the National Cathedral in Washington D.C. on Wednesday, September 7, 2011, smashing some cars and slightly damaged the church. Crane collapse at National Cathedral (Click Image To Enlarge) Image Credit: WNCathedral/Ow.ly According to US news sites that day, the 500-foot crane [...]
Tom Cruise and Church of Scientology in FBI Probe, as Paul Haggis Reveals “Secrets”

Tom Cruise Image Credit: topnews.ae Tom Cruise and the Church of Scientology “secrets” were revealed by Paul Haggis, a former scientologist. According to various news sites, February 9, 2011, Haggis has disclosed that the church has been allegedly paying working members only $50 a week. There was also the re [...]
The Source Boxing Day Sales 2010 offers Savings up to 70%

The Source after Christmas sale of 2010 has been extended to a week sale. It started its boxing day sale last December 26 and will end on December 31, 2010, New year’s Eve. TheSource.ca offers thousands of the latest consumer electronics, free ship to store and a recognizable and trusted brand name has been up for sa [...]
Borders bookstores liquidation sale begins, offers big discount

Borders bookstores have started its liquidation sale on Friday, July 22, 2011, and offers big discount which is being expected to end until September. A branch of Borders bookstore Image Credit: Getty Images According to US news sites that day, giant bookstore Borders Group Inc. started to offer up to 40% [...]
Best Buy 4th of July Sale 2011 Offers Wide Range Of Savings and Deals

Best Buy 4th of July Sale 2011 Ad Image Credit: Best Buy Best Buy fourth of July Sale 2011 will be a two-day special sale from July 3-4, 2011, according to a Best Buy ad published on its official website. A wide range of Best Buy items offers great savings and deals are being offered on computers, home theater, [...]
Solyndra Files Chapter 11 Bankruptcy: Third Solar Company to File for Bankruptcy

Solyndra, a manufacturer of cylindrical panels of CIGS thin-film solar cells, is the latest victim of the global recession as it succumbed and filed for Chapter 11 bankruptcy on September 6, 2011, as reported by various international news sites. Solyndra Headquarters Image Credit: Portfolio.com In its Chapt [...]
New Jersey Pastor Cedric Miller tells church leaders to delete their Facebook accounts

New Jersey Pastor Cedric Miller tells his church leaders to delete their Facebook accounts, according to international websites on Thursday. According to reports, Miller said his church leaders to get rid of Facebook as he said he also plans to delete his Facebook account this weekend. Cedric Miller, a Reverend P [...]
US Supreme Court rules Westboro Baptist Church over military funeral protest case

The US Supreme Court was reported to have ruled out the appeal of Westboro Baptist Church over a case against a military funeral in 2006. According to US news sites on Wednesday, an 8-1 ruling was made by the US Supreme Court, approving the decision of the lower court won by Westboro Baptist Church in 2009. Back [...]
Catholic Church may call for ‘civil disobedience’ to RH Bill supporters

The Catholic Church in the Philippines may call for ‘civil disobedience’ to RH Bill supporters including President Noynoy Aquino, as announced on the CBCP website. The Catholic Bishops Conference of the Phillipines (CBCP) said in a statement that ‘civil disobedience is an option’ if PNoy will finally approve [...]
Borders Books Declares Chapter 11 Bankruptcy, 200 Book Stores Affected

Borders Group, Inc., a leading retailer of books as well as other educational and entertainment items, is one of the latest companies that filed for Chapter 11 Bankruptcy, according to US news sites on Wednesday. The company filed in the US Bankruptcy Court of Southern District in New York listing $1.275 billion in ass [...]

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Blaine Gabbert: Future Is Now for Jaguars’ Rookie Quarterback

Blaine Gabbert is ready to step in and lead the Jacksonville Jaguars into the future.

The theory with rookie quarterbacks used to be that you draft them and put them on the bench for a few years behind a veteran.

Let them learn the playbook, let them get used to the NFL, then one day when you feel they are ready you unleash them onto the field to hopefully lead you to a Super Bowl.

It’s certainly a conservative and “old school” school of thought, but you can’t argue that it hasn’t produced results.

Will Gabbert Succeed In NFL?

Will Gabbert Succeed In NFL?

Yes

No

Total votes: 3

Look no further than Aaron Rodgers and the Green Bay Packers for proof. Rodgers spent three years underneath Brett Favre before the Packers decided to make the change of direction, and look how that worked out for them.

Favre’s career sputtered and eventually failed, while Rodgers went on to lead the Packers to the Super Bowl.

While that’s certainly a success story for the old “sit em” school of thought, we have seen NFL teams shy away from that more and more as of late, and it seems to be working.

Granted he went to a great team, but Mark Sanchez has leaded the Jets since his rookie season. Josh Freeman of the Buccaneers is another example of a young quarterback helping his team right away.

Finally there is the 2011 rookie class, where we already have two rookie quarterbacks as starters.

Andy Dalton has struggle so far with the Bengals, though he has shown great potential, and Cam Newton has electrified the league in his first two starts in the NFL.

2011 is essentially the year of the rookie quarterback, so naturally it’s time for the Jaguars to hop on board with their prolific rookie.

The Associated Press via ESPN writes about the Jaguars latest change at quarterback:

The Jacksonville Jaguars are turning to rookie quarterback Blaine Gabbert.

Coach Jack Del Rio named Gabbert the starter Wednesday, switching quarterbacks three days after Luke McCown threw four interceptions against the New York Jets.

Del Rio met with Gabbert and McCown Wednesday morning, then told other players about the switch at a team meeting. Gabbert will start Sunday at Carolina.

The transition was inevitable since the Jaguars selected Gabbert with the 10th pick in April’s draft. Del Rio had hoped to take it slow with the former Missouri standout, even planning to give him a year to watch and learn behind David Garrard. But Garrard had his worst preseason as a starter and was outplayed by McCown, a career backup.

Del Rio named McCown the starter five days before the season opener. But his ninth career start was a debacle. He was picked off four times, and could have thrown a couple more, and was sacked for a safety—in just three quarters.

Gabbert replaced McCown to start the fourth, and completed 5 of 6 passes for 52 yards in relief.

It may seem like the Jaguars have made a knee jerk reaction, but Gabbert is undoubtedly the guy for the job.

He was one of the best quarterbacks in the country during his time at Missouri. He completed 568 of 933 passes for 6,822 total yards and 40 touchdowns compared to 18 inceptions. He was 18-8 as a starter.

Simply put, this guy knows how to play. He’s a great leader and knows how to win.

The Jaguars picked him because they believed they could mold him into their quarterback of the future, but the future is now.

It’s obvious after last week’s horrendous performance that Luke McCown is not the guy for the job, so why not go with Gabbert?

We know he can play, but now it’s time to teach him how to play in the NFL.

He’s going to have a huge test in Carolina when he squares off with fellow rookie Newton, but I couldn’t think of a better way to kick off his first NFL start.

The future is now for Gabbert and the Jaguars.

Now all we can do is wait and see how he reacts.

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Daughter: Schuller won’t assume Crystal Cathedral leadership

GARDEN GROVE – Twitterverse is abuzz with talk about a statement made by Crystal Cathedral founder Rev. Robert H. Schuller as he left the federal courthouse in Santa Ana last week following a bankruptcy court hearing where the judge approved a process to facilitate the sale of the financially ailing church.

Schuller told NBC News: “I’m 85 years old and I’ve been thinking about the future of the church.”

The Crystal Cathedral is expected to be sold to one of several prospective bidders by November. The megachurch filed for Chapter 11 bankruptcy Oct. 18.

MARK RIGHTMIRE, THE ORANGE COUNTY REGISTER

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The statement has led to mounting speculation among Twitter users who have been following the sale issue, as well as Christian publications such as the Christian Post, that Schuller might try to regain control of the iconic Orange County ministry he started more than 55 years ago.

Schuller’s daughter, Carol Schuller Milner, who accompanied her father to the Sept. 14 hearing, said Wednesday that her father is certainly not thinking about taking matters into his own hands.

“He is of course thinking about the future of the church, because he virtually raised it from the ground,” Milner said. “When we were kids, we were told that the church was our sixth sibling.”

But that does not mean Schuller is going to take over the reins of administration from his daughter, Sheila Schuller Coleman, who is now the senior pastor, Milner said.

Bob Canfield, a church member, said during the court hearing that he and other longtime members want the elder Schuller back at the helm and that they would be willing to raise $50 million if that happened.

Milner said Canfield’s statements show that this is an emotional time for members and supporters of the Crystal Cathedral.

“They are coping with the loss of what (the church) once was,” she said.

So far, the strongest bidders for the 40-acre campus are the Roman Catholic Diocese of Orange, which has offered $53.6 million in cash, and Chapman University, which is offering $50 million. Other bidders include My Father’s International Church in Norco, Oklahoma-based arts and crafts retailer Hobby Lobby and Greenlaw Partners LLC.

The next step is for the 400-plus creditors involved in this case to vote on proceeding with the sale. A buyer is expected to be picked Oct. 31 and a sale confirmation hearing has been set for Nov. 14.

To read recent stories about the Crystal Cathedral bankruptcy, click here.

Contact the writer: 714-796-7909 or dbharath@ocregister.com

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