/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100409.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, April 9, 2010, Vol. 14, No. 97 Headlines 3-D WOODCRAFT: Case Summary & 20 Largest Unsecured Creditors 944 MEDIA: Lawsuits Forced Chapter 11 Filing A & W REAL ESTATE: Case Summary & 3 Largest Unsecured Creditors ABDO JOSEPH: Case Summary & 3 Largest Unsecured Creditors ABITIBIBOWATER INC: Lenders OK DIP Loan Extension Until May 5 ADVENTURE I-45: Case Summary & 3 Largest Unsecured Creditors ALAMO IRON: Case Summary & 21 Largest Unsecured Creditors ALMADEN ASSOCIATES: Taps Joel K. Belway as Bankruptcy Counsel ALMADEN ASSOCIATES: Wants to Use Rental Income of Real Property AMBAC FINANCIAL: Reports $558.124-Mil. Net Income for Q4 2009 AMBRILIA BIOPHARMA: To Get Funding from Disposition of LP Interest AMERICAN BIO: UHY LLP Raises Going Concern Doubt AMERICAN INT'L: Elects Henry S. Miller to Board of Directors ANGELINA GAILEY: Case Summary & 3 Largest Unsecured Creditors ARCHIE GROUP: Voluntary Chapter 11 Case Summary ARYX THERAPEUTICS: Ernst & Young Raises Going Concern Doubt ASARCO LLC: Submits Post-Confirmation Report for Dec. Period ASARCO LLC: Asbestos Trust Has Nod to End 2 Escrow Pacts ASARCO LLC: Sterlite Insists on Claim for $6.1-Mil. Reimbursement ASARCO LLC: Says Fulbright Had "Abusive Billing Practices" ASSOCIATED OF L.A.: Case Summary & 20 Largest Unsecured Creditors ATLANTIC FACILITIES: No Unsecured Creditors Committee Appointed ATLANTIC FACILITIES: Taps Stubbs & Perdue as Bankruptcy Counsel ATLANTIC UNDERGROUND: Voluntary Chapter 11 Case Summary B&B INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors BANCO INTERNACIONAL: Moody's Puts 'Ba3' Rating on $150 Mil. Notes BASHAS' INC: Last Minute Talks with Bondholders Delay Plan BEAUTY VENTURES: Voluntary Chapter 11 Case Summary BELTWAY-GESSNER: Case Summary & 3 Largest Unsecured Creditors BHAVIJIT HOSPITALITY: Summary & 18 Largest Unsecured Creditors BHUNASHAVARI LLLC: Case Summary & 3 Largest Unsecured Creditors BRENTWOOD GROUP NO. 2: Voluntary Chapter 11 Case Summary BRENTWOOD GROUP NO. 3: Voluntary Chapter 11 Case Summary BRIAND PROPERTIES: Case Summary & 3 Largest Unsecured Creditors BRIGHT STAR: Case Summary & 3 Largest Unsecured Creditors BROWN JORDAN: Near Covenant Breach Won't Move Moody's 'B2' Rating BRUCE FELDER: Case Summary & 20 Largest Unsecured Creditors BWC BUILDERS: Case Summary & 16 Largest Unsecured Creditors CAL INVESTMENTS: U.S. Trustee Withdraws Motion to Convert Case CAL-ONTARIO, INC: Case Summary & 20 Largest Unsecured Creditors CALVARY IN SAVANNAH: Files for Bankruptcy to Replace Finances CG JCF: Moody's Affirms Corporate Family Rating at 'B2' CHRYSLER LLC: Cryonic Life Seeks Allowance of $872-Mil. Claim CHRYSLER LLC: Reaches Deal with N. Carolina on Dealership Issues CHRYSLER LLC: To Reinstate 50 of 789 Scrapped Dealers CHRYSLER LLC: March Sales Up 51% from February CIRCUIT CITY: Mitsubishi Fights Bar on $5.5M Circuit Claims CKE RESTAURANTS: S&P Puts 'BB-' Rating on CreditWatch Negative CONSECO INC: Sheldon Solow Drops Suit Over Sale of GM Building CORRIDOR PROJECTS, THE: Case Summary & 20 Largest Unsec. Creditors CREDITWEST CORP: Voluntary Chapter 11 Case Summary CUMULUS MEDIA: Has Investment Partnership with Crestview CYPRESS NILKANTH: Case Summary & Four Largest Unsecured Creditors DANIEL TARVER: Case Summary & 20 Largest Unsecured Creditors DEATH ROW: Buyer Sued for Civil Contempt by Partners DEFAIR FARMS: Voluntary Chapter 11 Case Summary DIERK HAGEMANN: Case Summary & 17 Largest Unsecured Creditors DUC CONG: Case Summary & 3 Largest Unsecured Creditors DYCOM INDUSTRIES: Moody's Says Neg. Outlook on CFR May Stabilize EARLL URG: Case Summary & 17 Largest Unsecured Creditors EAST YORK: Case Summary & 2 Largest Unsecured Creditors EASTER PLANTATION: Voluntary Chapter 11 Case Summary EIGEN INC: DIP Financing, Cash Collateral Use Gets Interim Nod ELECTRICAL COMPONENTS: Gets Interim Nod to Obtain DIP Financing EMPIRE PETROLEUM: Losses Prompt Going Concern Doubt ENVIRONMENTAL POWER: Caturano & Company Raises Going Concern Doubt ERNST & YOUNG: Oversight Board Launches Probe on Lehman Role ESCADA AG: EUSA Seeking Approval of Plan Outline on April 29 ESCADA AG: U.S. Trustee Opposes EUSA's Plan Outline FARLEY INC: Owner to Pay $7.8 Million to Settle PBGC Claims FRASER PAPERS: Canada Court Gives Final Nod to Sale to Twin Rivers FREESCALE SEMICONDUCTOR: Moody's Assigns 'B2' Rating on Notes FREESCALE SEMICONDUCTOR: S&P Puts 'B-' Rating on $750 Mil. Notes G.E. HOSPITALITY: Case Summary & 9 Largest Unsecured Creditors GEMS TV: Case Summary & 20 Largest Unsecured Creditors GENERIC DRUG: Moody's Assigns 'B2' Corporate Family Rating GLOBAL GEOPHYSICAL: S&P Assigns 'B' Rating on $200 Mil. Notes GOODING'S SUPERMARKETS: Files for Chapter 11 Bankruptcy Again GOODING'S SUPERMARKETS: Case Summary & 20 Largest Unsec. Creditors GRACE WU: Case Summary & 20 Largest Unsecured Creditors GRAND CAY: Case Summary & 3 Largest Unsecured Creditors GRAY TELEVISION: Amalgamated Gadget Holds 4.6% of Common Stock GRAY TELEVISION: Dimensional Fund Holds 6.09% of Common Stock GRAY TELEVISION: Highland Capital Holds 0.01% of Common Stock GRAY TELEVISION: Posts Net Loss for 3rd Consecutive Year GREATER GERMANTOWN HOUSING: Chapter 11 Case Summary HAEMACURE CORPORATION: Angiotech Closes Purchase Some Assets HAWAIIAN TELCOM: Files Registration to Become Publicly Traded HARMAN INTERNATIONAL: S&P Gives Pos. Outlook; Affirms 'B+' Rating HARVARD DRUG: S&P Assigns Corporate Credit Rating at 'B' HERRERA, HERRERA: Case Summary & 20 Largest Unsecured Creditors HOLIDAY 360: Case Summary & 20 Largest Unsecured Creditors HOME INTERIORS: Plan Confirmation Hearing Scheduled for May 26 HOTEL 635: Case Summary & 20 Largest Unsecured Creditors HYDE PARK: Case Summary & 20 Largest Unsecured Creditors ICAGEN INC: Ernst & Young Raises Going Concern Doubt ILX RESORTS: Posts $1.9 Million Net Loss in 2009 INTEGRA TELECOM: Moody's Assigns 'B2' Rating on $210 Mil. Notes INTEGRA TELECOM: S&P Puts 'CCC+' Rating on CreditWatch Positive ISHA DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors JEFFERSON COUNTY: Most Commission Candidates Reject Bankruptcy JERRY HERLING: Case Summary & 20 Largest Unsecured Creditors JARAE PROPERTIES: Case Summary & Unsecured Creditor KMART CORP: Appeals Court Clears Sears et al From Shareholder Suit KAO PROPERTIES: Case Summary & 3 Largest Unsecured Creditors LEHMAN BROTHERS: Oversight Board Launches Probe on Ernst & Young LOS ANGELES, CALIF: Faces $10-Mil. Shortfall by May 5 LYDIA CLADEK: Involuntary Chapter 11 Case Summary LYDIA CLADEK: Voluntary Chapter 11 Case Summary MAGUIRE PROPERTIES: Balyasny Funds Hold 6.51% of Common Stock MAGUIRE PROPERTIES: David Tepper's Appaloosa Holds 8.97% of Shares MAGUIRE PROPERTIES: Former CEO Sells Off Shares; Has 9.8% Stake MAGUIRE PROPERTIES: Scoggin Capital et al., Disclose Equity Stake MAGUIRE PROPERTIES: Vanguard Group Holds 3.47% of Common Stock MAGUIRE PROPERTIES: Wesley Capital No Longer Holds Shares MANAGEMENT SERVICES: Voluntary Chapter 11 Case Summary MARSH HAWK: Case Summary & 20 Largest Unsecured Creditors MARTIN ALMANZAN: Case Summary & 3 Largest Unsecured Creditors MARY LIEBL: Case Summary & 20 Largest Unsecured Creditors MCKINNEY WILLOW: Case Summary & 6 Largest Unsecured Creditors MDB PROPERTIES: Case Summary & Unsecured Creditor MEGA PROFESSIONAL: Case Summary & 15 Largest Unsecured Creditors MICHAEL BRIGGS: Voluntary Chapter 11 Case Summary MOUNTAIN RESORT: Voluntary Chapter 11 Case Summary MUNDYS MILL: Case Summary & 2 Largest Unsecured Creditors N & S HOSPITALITY: Case Summary & 11 Largest Unsecured Creditors NICHOLAS NIKITAS: Voluntary Chapter 11 Case Summary OPTELECOM-NKF INC: KPMG LLP Raises Going Concern Doubt ORGANIC GROWING: Voluntary Chapter 11 Case Summary OTAY-ADEJO PROPERTIES: Case Summary & 7 Largest Unsec. Creditors PALMDALE HILLS: SunCal Says Lehman Repurchase Could Block Suits PLAZA LLC: Court Approves Chapter 11 Plan; Auction on April 21 PNN ENTERPRISE: Case Summary & 3 Largest Unsecured Creditors PONCE BUSINESS: Files for Chapter 11 Bankruptcy PPM TECHNOLOGIES: Voluntary Chapter 11 Case Summary PRESTIGE BRANDS: Closes Tender Offer for 2012 Notes RANCHO SUPERMARKET: Case Summary & 3 Largest Unsecured Creditors RICHARD SOLIS: Voluntary Chapter 11 Case Summary ROBERT PELSHAW: Case Summary & 20 Largest Unsecured Creditors ROBERT RIGGS: Case Summary & 20 Largest Unsecured Creditors ROCK & REPUBLIC: Voluntary Chapter 11 Case Summary RODOLFO ZAMORA: Case Summary & 8 Largest Unsecured Creditors ROCKY MOUNTAIN: Voluntary Chapter 11 Case Summary RQB RESORT: Goldman Seeks to Foreclose on Sawgrass Marriott RSA COMPANY: Voluntary Chapter 11 Case Summary SAMUEL DANIELS: Voluntary Chapter 11 Case Summary SLOAN ZSIROS: Case Summary & 3 Largest Unsecured Creditors SNP BOAT SERVICES: Files Chapter 15 Petition SOURCE INTERLINK: Names Michael Sullivan as New CEO & Director SOUTHWEST WHOLESALE: Case Summary & 20 Largest Unsecured Creditors STALLION OILFIELD: S&P Withdraws 'CCC+' Corp. Credit Rating STAY 190: Case Summary & 20 Largest Unsecured Creditors SUPEVALU INC: S&P Affirms 'BB-' Corporate Credit Rating SUTTER BUTTES: Case Summary & 9 Largest Unsecured Creditors TALBOTS INC: Completes BPW Acquisition TERRACE POINTE: Voluntary Chapter 11 Case Summary THEODORE CARTER: Case Summary & 20 Largest Unsecured Creditors THOMAS CHRISTOPHERSON: Case Summary & 20 Largest Unsec Creditors TOMAR TRUCKING: Case Summary & 20 Largest Unsecured Creditors TONEATA MARTOCCIO: Case Summary & 20 Largest Unsecured Creditors TOPAZ CAPITAL: Case Summary & 15 Largest Unsecured Creditors TRAHRAEG HOLDING: Case Summary & 2 Largest Unsecured Creditors TRIBUNE CO: Lenders Want Rule 2004 Exam on Centerbridge TRIBUNE CO: Lazard Work Now Include TVFN Business Review TRIBUNE CO: Retained Professionals Have Billed $138 Million TWIN WINGS: Files for Chapter 11 Bankruptcy Protection US FIDELIS: Judge Freezes Owners' Personal Assets VALEANT PHARMACEUTICALS: Moody's Puts 'Ba3' Rating on Senior Notes VALEANT PHARMACEUTICALS: S&P Raises Corp. Credit Rating to 'BB-' VENTURES AT STONEBRIDGE: Case Summary & Creditors List VICTORY TOWNHOUSE: Case Summary & 17 Largest Unsecured Creditors VINCENT RANDOLPH SCHMIDT: Voluntary Chapter 11 Case Summary VIVAKOR INC: McGladrey & Pullen Raises Going Going Concern Doubt WESTLAND DEVCO: Case Summary & 20 Largest Unsecured Creditors WILCO 1136: Voluntary Chapter 11 Case Summary WILLIAM LINDSEY: Voluntary Chapter 11 Case Summary WILLIAM LYON HOMES: Posts Net Loss for Third Consecutive Year WILLIAM MESHIER: Voluntary Chapter 11 Case Summary WOODMARK DEVELOPMENT: Case Summary & 3 Largest Unsecured Creditors W.R. GRACE: To Supply Polypropylene Catalysts to Borealis AG XERIUM TECHNOLOGIES: Combined Hearing on Prepack Plan on May 12 XERIUM TECHNOLOGIES: Wants Schedules Filing Until June 28 XERIUM TECHNOLOGIES: Wants to Waive Section 341 Meeting ZALE CORP: Citi Canada to End Credit Card Program on June 30 ZALE CORP: Has Until April 30 to Pay $6 Mil. to Citi-South Dakota ZALE CORP: Centerbridge, TPG and Golden Gate in Bidding War ZAYAT STABLES: Files Suit vs. Fifth Third Over Default Notice * Keith Northern Named One of People to Watch-2010 * Nicholas Barrett & Associates Promotes Atty. Patricia Davis * Winston Bankruptcy Partner Jumps to Cooley * BOOK REVIEW: Rupert Murdoch: Creator of a Worldwide Empire ********* 3-D WOODCRAFT: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: 3-D Woodcraft, Inc. 60909 Highway 49 Lineville, AL 36266 Bankruptcy Case No.: 10-40976 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy court Northern District of Alabama (Anniston) Debtor's Counsel: Harry P. Long, Esq. PO Box 1468 Anniston, AL 36202 Tel: 256-237-3266 E-mail: hlonglegal@aol.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company says that assets total $570,500 while debts total $1,230,334. A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/alnb10-40976.pdf The petition was signed by Andrew Skros, president. 944 MEDIA: Lawsuits Forced Chapter 11 Filing -------------------------------------------- 944 Media, LLC, disclosed that in order to assure its continued operation in the face of several potentially burdensome lawsuits, it has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code. The bankruptcy filing was precipitated by certain litigation, including two state court lawsuits filed against the Debtor. Founder and CEO Marc Lotenberg emphasized that publication of its magazines in the ten markets it serves and operation of 944.com will continue as usual. "The whole point of this proceeding is to enable us to keep doing what we do while resolving the litigation in an orderly process. We are confident that 944 Media will be able to resolve our pending issues, but prudence dictates that we take steps to protect ourselves, our employees and our clients through the Chapter 11 process." Mr. Lotenberg stated that employees will be paid as normal as they always have and that its magazines will be printed and distributed and 944.com will continue to operate without interruption. He added that the company has received new financing to ensure that there is no disruption in service of 944.com and publishing of its magazines throughout the restructuring process. Vendors can expect to be paid in the ordinary course for goods and services purchased after the filing date. The process is expected to be resolved expeditiously. 944 Media continues to be a leader in the lifestyle sector. In the past 90 days, the Company has signed advertising agreements with four new Fortune 500 companies and revenues for its May book are at record levels. On the content and events front, 944 continues to innovate. On April 17, 944 will co-host with Bolthouse VOX Events and PMK * BNC Carnival at Coachella, at the hottest music event in Southern California. This one-of-a-kind event will bring the stars to the desert with a slew of both traditional and cutting-edge attractions, including thrill rides, carnival games, a dunk tank, a ring toss booth, a jumbo-size gaming station, live DJs, gourmet picnic grounds and interactive experiences. Strictly invitation- only, the event will be designed to wow 1,000 celebrities and V.I.P.s who will gladly leave the city behind to play in the sands of Indio, California. Later this spring, 944 will unveil a new logo and a refreshed, streamlined and modern look for the magazine and 944.com, taking the brand's look and feel to a more sophisticated level that addresses the changing expectations of their audience of insiders and influencers. This summer 944 will enhance digital integration and robustness -- making the web its first priority, and showcasing 944 as a multiplatform content company. Its editors are focusing on websites, mobile platforms, social networks, tweeting, and uploading video to allow for real-time reporting. Also, in September, 944 will be adding a 16-page city guide to each book that will serve as a handbook for readers wanting the latest in things to experience at the local level from music, and film to dining and culture in each 944 market. "We would have preferred to avoid having to resort to the Chapter 11 process," Mr. Lotenberg said. "However, our priority is to our employees, clients and readers. We feel an obligation to do everything we can to continue to serve them and secure a strong future for 944 going forward." The case was filed in the U.S. Bankruptcy Court in the Central District of California in Los Angeles. ABOUT 944 MEDIA Anchored by 944 Magazine, an award winning fashion, entertainment and lifestyle publication headquartered in Los Angeles, CA, 944 Media has created a unique lifestyle media portfolio in the country's largest entertainment hubs: Atlanta, Dallas, Detroit, Las Vegas, Los Angeles, Miami, Orange County, Phoenix, San Diego and San Francisco. 944 readers are influential and aspirational adults 21 to 44 with a zest for What's Now and Next. 944 delivers design-forward print and online content, special events, and a custom publishing division with a non-traditional targeted distribution platform, including more than 5,000 strategic distribution locations and placement in 35,000 luxury hotel rooms nationwide. 944 Magazine has a guaranteed circulation of 3.4 million copies per year. As a complement to the print publication, 944's online platform, http://www.944.com,thrives on constantly connecting with tastemakers with daily content attracting more than 2.5 million unique viewers per month. Inc. Magazine recently named 944 Media on its signature "Inc. 500 I 5000" list, honoring the fastest growing privately held companies in the nation. In 2008, 944 Media CEO and Founder Marc Lotenberg was listed as number 21 on Inc.'s coveted "America's Coolest Young Entrepreneurs: 30 Under 30." FOLIO magazine recently also recognized 944 Media in "FOLIO: 40," acknowledging the individuals creating a new chapter in the magazine industry. A & W REAL ESTATE: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: A & W Real Estate II, Ltd. 1303 Calle del Norte No. 800-8A Laredo, TX 78041-06041 Bankruptcy Case No.: 10-50087 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Texas (Laredo) Judge: Wesley W. Steen Debtor's Counsel: J Alberto Alarcon, Esq. Hall Quintanilla et al P. O. Box 207 Laredo, TX 78040 Tel: (956) 723-5527 E-mail: aalarcon@sbcglobal.net Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb10-50087.pdf The petition was signed by Daniel D. Wyers. ABDO JOSEPH: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Abdo Joseph Droubi 11411 Memorial Circle Houston, TX 77024 Bankruptcy Case No.: 10-32800 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Karen K. Brown Debtor's Counsel: Barbara Mincey Rogers, Esq. Rogers & Anderson, PLLC 1415 North Loop West, Suite 1020 Houston, TX 77008 Tel: (713) 868-4411 Fax: (713) 868-4413 E-mail: barbaramrogers@swbell.net Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb10-32800.pdf ABITIBIBOWATER INC: Lenders OK DIP Loan Extension Until May 5 ------------------------------------------------------------- BankruptcyData.com reports that AbitibiBowater Inc. is seeking a seeking a two-week extension of the maturity date on its debtor- in-possession financing. The DIP loan is currently scheduled to mature on April 21, 2010, but the credit agreement provides for an automatic three-month extension if the Company files a plan of reorganization by the maturity date. The Company explains that its plan negotiations are not yet finalized. As a result, the DIP facility lenders have agreed to extend the maturity date to May 5, 2010. About AbitibiBowater Inc. Headquartered in Montreal, Canada, AbitibiBowater Inc. -- http://www.abitibibowater.com/-- produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 23 pulp and paper facilities and 28 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ. The Company and several of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009 (Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey presides over the case. The Company and its Canadian affiliates commenced parallel restructuring proceedings under the Companies' Creditors Arrangement Act before the Quebec Superior Court Commercial Division the next day. Alex F. Morrison at Ernst & Young, Inc., was appointed CCAA monitor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serves as the Debtors' co-counsel, while Troutman Sanders LLP in New York, serves as the Debtors' conflicts counsel in the Chapter 11 proceedings. The Debtors' financial advisors are Advisory Services LP, and their noticing and claims agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario. Abitibi-Consolidated Inc. and various Canadian subsidiaries filed for protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, represent the Chapter 15 Debtors. As of Sept. 30, 2008, the Company had $9,937,000,000 in total assets and $8,783,000,000 in total debts. Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings and parallel proceedings under the Companies' Creditors Arrangement Act in Canada undertaken by Abitibibowater Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). ADVENTURE I-45: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Adventure I-45, Ltd. 200 Hughes Road Dickinson, Tx 77539 Bankruptcy Case No.: 10-80203 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Texas (Galveston) Judge: Letitia Z. Paul Debtor's Counsel: Erin E Jones, Esq. Jones Morris, LLP 2700 Post Oak, Suite 1120 Houston, TX 77056 Tel: (713) 589-5061 Fax: (713) 589-5513 E-mail: erin@jonesmorris.com Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb10-80203.pdf The petition was signed by Duc Cong Vuong, GP Managing Member, A.I. 45, LLC. ALAMO IRON: Case Summary & 21 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Alamo Iron Works, Inc. 943 AT&T Center Parkway San Antonio, TX 78219 Case No.: 10-51269 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Western District of Texas (San Antonio) Judge: Ronald B. King Debtor's Counsel: David S. Gragg, Esq. Langley & Banack, Inc Trinity Plaza II 745 E Mulberry, Suite 900 San Antonio, TX 78212 Tel: (210) 736-6600 Fax: (210) 735-6889 E-mail: dgragg@langleybanack.com Total Assets: $10,000,001 to $50,000,000 Total Debts: $10,000,001 to $50,000,000 A list of the Debtor's 21 largest unsecured creditors is available for free at http://bankrupt.com/misc/txwb10-51269.pdf ALMADEN ASSOCIATES: Taps Joel K. Belway as Bankruptcy Counsel ------------------------------------------------------------- Almaden Associates, LLC, asks the U.S. Bankruptcy Court for the Northern District of California for permission to employ Law Offices of Joel K. Belway as counsel. Joel K. Belway, Esq., will advise and represent the Debtor in the administration of the Chapter 11 case. Mr. Belway tells the Court that he received a pre-bankruptcy retainer of $25,000 from the Debtor's funds. Mr. Belway's hourly rate is $300. To the best of the Debtor's knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Law Offices of Joel K. Belway 235 Montgomery St. #668 San Francisco, CA 94104 Tel: (415) 788-1702 E-mail: belwaypc@pacbell.net Dublin, California-based Almaden Associates, LLC, filed for Chapter 11 bankruptcy protection on Feb. 22, 2010 (Bankr. N.D. Calif. Case No. 10-41903). The Company estimated its assets and debts at $10,000,001 to $50,000,000. ALMADEN ASSOCIATES: Wants to Use Rental Income of Real Property --------------------------------------------------------------- Almaden Associates, LLC, asks the U.S. Bankruptcy Court for the Northern District of California for authorization to use the rental income of its operating investment real property in which various secured creditors claim an interest. The Debtor needs cash to fund the operating expenses of its properties until September 30, 2010, or the confirmation of a Chapter 11 Plan, whichever occur first. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant secured creditors replacement liens on the Debtor's postpetition property with the same nature and to the same extent and priority as their respective existing liens. Dublin, California-based Almaden Associates, LLC, filed for Chapter 11 bankruptcy protection on Feb. 22, 2010 (Bankr. N.D. Calif. Case No. 10-41903). The Company estimated its assets and debts at $10,000,001 to $50,000,000. AMBAC FINANCIAL: Reports $558.124-Mil. Net Income for Q4 2009 ------------------------------------------------------------- Ambac Financial Group, Inc., on Thursday reported net income of $558.124 million for the fourth quarter ended December 31, 2009, from a net loss of $2.340 billion for the 2008 fourth quarter. However, Ambac turned to a $14.616 million net loss for the year from a net loss of $5.609 billion for 2008. Ambac said the fourth quarter 2009 results reflect a tax benefit recorded during the period, reduced loss and loss expenses recorded relative to fourth quarter 2008, and unrealized mark-to- market gains in the credit derivatives portfolio. In 2008, Ambac's fourth quarter results reflected a significant negative net change in fair value of credit derivatives, higher loss and loss adjustment expenses and a large increase in the deferred tax asset valuation allowance. A tax benefit of $472.0 million was recorded primarily as a result of legislation that passed during the quarter that allows Ambac to carry back 2008 and 2009 operating losses as far back as 2003. Ambac Assurance Corporation, Ambac's principal operating subsidiary, received the tax refund amounting to $443.9 million in February 2010. Ambac said losses and loss expenses in the fourth quarter of 2009 were primarily related to further credit deterioration in the first-lien segment of the insured residential mortgage-backed securities portfolio, and to a lesser degree, credit deterioration in certain student loan transactions, partially offset by net reserve reductions in certain insured non-consumer asset-backed securities. At December 31, 2009, the Company had total assets of $18.886 billion against total liabilities of $20.520 billion. Total assets increased by approximately $787 million during the fourth quarter of 2009, primarily due to recording the tax recoverable related to the new tax legislation that passed during the fourth quarter of 2009, and the consolidation of certain trusts that AAC has insured and consolidated under accounting pronouncement ASU 2009-17 (formerly known as FIN 46R), partially offset by commutations of CDO of ABS transactions and RMBS and other claim payments made during the quarter. Cash, short-term securities and bonds at the holding company amounted to $136.5 million as of December 31, 2009. Ambac's annual debt service costs amount to approximately $89.0 million. In March 2010, the Office of the Commissioner of Insurance of the State of Wisconsin commenced Segregated Account Rehabilitation Proceedings to permit the OCI to facilitate an orderly run-off or settlement of the liabilities allocated to the Segregated Account. As a result of the actions taken by OCI, financial guarantee payments on securities guaranteed by AAC which have been placed in the Segregated Account are no longer under the control of Ambac management. In addition, Ambac announced that it has reached a non-binding agreement on the terms of a proposed settlement agreement with several counterparties to commute substantially all of its remaining CDOs of ABS. As a result, it is highly unlikely that AAC will be able to make dividend payments to Ambac for the foreseeable future. The Board of Directors has set the 2010 Annual Meeting of Stockholders for Monday, June 14, 2010, at 1:00 p.m. in New York City. The record date for determining stockholders entitled to notice of, and to vote at, the annual meeting will be the close of business, April 20, 2010. A full-text copy Ambac's earnings release is available at no charge at http://ResearchArchives.com/t/s?5f58 About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provide financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK). Ambac's principal operating subsidiary is Ambac Assurance Corporation, a guarantor of public finance and structured finance obligations. Ambac Assurance has earned a Caa2 rating from Moody's Investors Service, Inc., with a developing outlook and a CC rating from Standard & Poor's Ratings Services with a developing outlook. Moody's Investors Service at the end of July 2009 downgraded to Caa2 from Ba3 the insurance financial strength ratings of Ambac Assurance Corporation and Ambac Assurance UK Limited. The rating action was prompted by Ambac's announced large loss reserve increase and credit impairment charge estimated for the second quarter of 2009. On March 30, 2010, the Troubled Company Reporter said Moody's Investors Service has lowered the rating of the senior unsecured debt of Ambac Financial to C from Ca, and placed the Caa2 insurance financial strength ratings of Ambac Assurance on review for possible upgrade. Moody's also placed the Caa2 IFSR for Ambac Assurance UK Limited (AUK) on review with direction uncertain. Dow Jones has noted that Ambac once boasted top triple-A credit ratings. In November 2009, Ambac warned it could have problems paying off debt that comes due in 2011. According to Dow Jones, Ambac Financial said it was considering strategies that include a prepackaged bankruptcy-court filing. Before the financial crisis, Ambac was the second-biggest bond insurer behind MBIA Inc. AMBRILIA BIOPHARMA: To Get Funding from Disposition of LP Interest ------------------------------------------------------------------ The boards of directors of Ambrilia Biopharma Inc. and its subsidiary, Cellpep Pharma Inc., have approved a proposed transaction whereby Ambrilia and Cellpep would receive additional non-dilutive financing through the disposition of a limited partnership interest. Before expenses to be incurred in connection with this potential transaction, a gain in the amount of approximately $4M could be realized by Ambrilia and Cellpep upon the closing of such transaction. Ambrilia will apply to the Superior Court of Quebec (Commercial Division) for an order authorizing it to proceed with such transaction. Ambrilia is continuing its restructuring and its efforts to monetize its assets. In the context of that process, Raymond Chabot Inc., the Court appointed Monitor under the Companies' Creditors Arrangement Act, has launched a process aimed at either monetizing Ambrilia's assets, including its HIV Portfolio for the treatment of HIV/AIDS and its HCV Program, or selling or merging the Company, or obtaining funding for the development of its Portfolio for the treatment of HIV/AIDS and its HCV Program. Any questions or offer with respect to this process should be made to Patrick-Claude Dionne who can be reached at e-mail: Dionne.PatrickClaude@rcgt.com/ Any recovery for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the outcome of Ambrilia proceedings under the CCAA. About Ambrilia Biopharma Ambrilia Biopharma Inc. (CA:AMB 0.03, 0.00, 0.00%) is a biotechnology company focused on the discovery and development of novel treatments for viral diseases and cancer. The Company's strategy aims to capitalize on its broad portfolio and original expertise in virology. Ambrilia's product portfolio is comprised of oncology and antiviral assets, including two new formulations of existing peptides for cancer treatment, a targeted delivery technology for cancer, an HIV protease inhibitor program as well as HIV integrase and entry inhibitors, Hepatitis C virus inhibitors and anti-Influenza A compounds. Ambrilia's head office, research and development and manufacturing facilities are located in Montreal. For more information, please visit the Company's web site: www.ambrilia.com. The Company is currently subject to court protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA"). AMERICAN BIO: UHY LLP Raises Going Concern Doubt ------------------------------------------------ American Bio Medica Corporation filed its annual report on Form 10-K, showing a net loss of $900,000 on $9,726,000 of revenue for 2009, compared with a net loss of $850,000 on $12,657,000 of revenue for 2008. UHY LLP, in Albany, N.Y., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses from operations and liquidity constraints. The Company's balance sheet as of December 31, 2009, showed $7,040,000 in assets, $3,662,000 of debts, and $3,378,000 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5f35 Kinderhook, N.Y.-BASED American Bio Medica Corporation develops, manufactures and sells immunoassay diagnostic tests, primarily for the immediate, point of collection testing for drugs of abuse in urine and oral fluids. AMERICAN INT'L: Elects Henry S. Miller to Board of Directors ------------------------------------------------------------ The Board of Directors of American International Group, Inc., elected Henry S. Miller a Director. "We are fortunate to have a Director with the experience and perspective that Henry Miller will bring to the AIG Board," said Harvey Golub, Chairman of the AIG Board of Directors. "Henry will be a valuable addition as we continue to work to restore AIG as a strong company with solid businesses and to repay the U.S. government for its financial assistance." Mr. Miller, 64, is Chairman, Managing Director and co-founder of Miller Buckfire & Co., LLC, a market-leading investment bank specializing in corporate restructuring, M&A, debt and equity financing and strategic advisory services. He is also Chairman and Chief Executive Officer of its affiliated business Marblegate Asset Management, an investment manager focused on investing in distressed credit and other special situation deep value opportunities. Prior to founding Miller Buckfire, Mr. Miller was Vice Chairman and a Managing Director at Dresdner Kleinwort Wasserstein, where he served as the global head of the firm's financial restructuring group. Prior to that, Mr. Miller was Managing Director and Head of both the Restructuring Group and Transportation Industry Group of Salomon Brothers. Mr. Miller received his Bachelor of Arts degree from Fordham University College of Arts and Sciences (now called Fordham College at Rose Hill) and a Masters of Business Administration degree from Columbia University's Graduate School of Business. About AIG Based in New York, American International Group, Inc., is an international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies provide life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. In September 2008, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. On September 16, 2008, the Federal Reserve Bank created an $85 billion credit facility to enable AIG to meet increased collateral obligations consequent to the ratings downgrade, in exchange for the issuance of a stock warrant to the Fed for 79.9% of the equity of AIG. The credit facility was eventually increased to as much as $182.5 billion. AIG has sold a number of its subsidiaries and other assets to pay down loans received from the U.S. government, and continues to seek buyers of its assets. ANGELINA GAILEY: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Angelina Gailey Wiseman 2011 Commonwealth Ave Houston, TX 77006 214 245 4625 Bankruptcy Case No.: 10-32826 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Wesley W. Steen Debtor's Counsel: Donald Scott MacKenzie, Esq. Attorney at Law 9603 White Rock Trail Ste 324 Dallas, TX 75238 Tel: (214) 245-4625 Fax: (214) 764-0780 E-mail: dallaslaw@gmail.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb10-32826.pdf The petition was signed by the Debtor ARCHIE GROUP: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Archi Group, Inc. 2060 W. Spring Creek Pkwy Suite 102 Plano, TX 75023 Bankruptcy Case No.: 10-41079 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Robert M. Nicoud, Jr., Esq. 1201 Main, Suite 2470 Dallas, TX 75202 Tel: (214) 979-7300 E-mail: rmnicoud@dallas-law.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by Samuel Sung Kim, president. ARYX THERAPEUTICS: Ernst & Young Raises Going Concern Doubt ----------------------------------------------------------- ARYx Therapeuics, Inc., filed on March 30, 2010, its annual report on Form 10-K for the year ended December 31, 2009. Ernst & Young LLP, in Palo Alto, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted of the Company's recurring losses from operations and stockholders' deficit. The Company reported a net loss of $33.2 million for 2000, compared with a net loss of $31.2 million for 2008. For 2009, ARYx had no revenue compared to $19.7 million for the full year 2008. The Company's balance sheet as of December 31, 2009, showed $12.4 million in assets and $15.3 million of debts, for a stockholders' deficit of $2.9 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5f06 Fremont, Calif.-based ARYx Therapeutics, Inc. (NASDAQ: ARYX) -- http://www.aryx.com/-- is a biopharmaceutical company focused on developing a portfolio of internally discovered product candidates designed to eliminate known safety issues associated with well-established, commercially successful drugs. ASARCO LLC: Submits Post-Confirmation Report for Dec. Period ------------------------------------------------------------ Mark A. Roberts of Alvarez and Marsal North America, LLC, as Plan Administrator, prepared a post-confirmation report for the period from December 9 to 31, 2009 for ASARCO LLC and its affiliates. As previously reported, the Chapter 11 Plan for the ASARCO LLC Debtors was declared effective on December 9, 2009. On that date, the Plan Administrator received funds, totaling $3,633,127,834, which were intended to pay for allowed claim amounts and reserved for unresolved claims. The Plan Administrator prepared tables on a summary of plan distributions and administrative expenses incurred by the Debtors. ASARCO LLC, et al. Post-Confirmation Report Summary of Plan Distributions For Quarter Ended December 31, 2009 Current Balance Quarter Paid to Date Due ------------ ------------- ------- Plan Admin. Fees & Expenses --------------------------- Plan Admin. Compensation $576,961 $576,961 - Legal Fees 109,292 109,292 - Other Prof. Fees - - - All Other Expenses 56 56 - Distributions ------------- Admin. Expenses: Debtor Prof. Fees 5,950,447 5,950,447 - Non-Prof. Fees 302,756,514 302,756,514 - Secured Creditors 238,416 238,416 - Priority Creditors 262,537 262,537 - Unsecured Creditors 3,058,807,671 3,058,807,671 - Equity Security Holders - - - Other Payments/Transfers 71,514,618 71,514,618 - ------------- -------------- ------- Total Plan Payments $3,440,216,512 $3,440,216,512 - ============= ============== ======= ASARCO LLC, et al. Post-Confirmation Report Professional Fees For Quarter Ended December 31, 2009 Current Paid to Balance Debtor Professional Fees Quarter Date Due ------------------------ ---------- ---------- ------- Barclays Capital Inc. $5,182,010 $5,182,010 - FTI Consulting, Inc. 230,045 230,045 - Anderson Kill & Olick PC 188,715 188,715 - Jordan, Hyden, Womble & Culbreth 182,684 182,684 - Bates White, LLC 85,458 85,458 - Reed Smith LLP 26,896 26,896 - Oppenheimer, Blend, Harrison & Tate 20,689 20,689 - Porzio Bromberg & Newman PC 20,685 20,685 - Law Office Of Robert C. Pate 9,652 9,652 - Legal Analysis Systems Inc. 3,614 3,614 - ---------- ---------- ------- Total $5,950,447 $5,950,447 - ========== ========== ======= The Post-Confirmation Report was delivered to the Court on March 26, 2010. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On December 9, 2009, Grupo Mexico, S.A.B. consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by ASARCO LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ASARCO LLC: Asbestos Trust Has Nod to End 2 Escrow Pacts -------------------------------------------------------- The Bankruptcy Court authorized the ASARCO Asbestos Personal Injury Settlement Trust to terminate the First Wells Fargo Escrow Agreement and the Second Wells Fargo Escrow Agreement. The Court directed Wells Fargo to transfer the remaining balances in the two Wells Fargo escrow accounts to the Asbestos Trust. The ASARCO Asbestos Personal Injury Settlement Trust relates that two escrow accounts were established during the Debtors' bankruptcy cases to hold the proceeds of various asbestos-related insurance settlements. They are: (1) The Asbestos Subsidiary Debtors' escrow account at Wells Fargo Bank; and (2) Certain Settling London Market Insurers' escrow account at Wells Fargo. Sander L. Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, in Dallas, Texas, relates that on the Plan Effective Date, the Asbestos Trust was created and funded with the "Section 524(g) Trust Assets," which includes directly or indirectly, the Asbestos Insurance Recoveries. The Debtors transferred to the Asbestos Trust all of their rights relating to any "benefits and/or proceeds of any Asbestos Insurance Policy or Asbestos Insurance Settlement Agreement." This includes the remaining balances in both Wells Fargo Escrow Accounts. Accordingly, the Asbestos Trust asked the Court to terminate the two Wells Fargo Escrow Agreements and direct Wells Fargo to transfer the remaining balances in the Escrow Accounts to the Asbestos Trust. The current balance in the First Escrow Account is $21,153 plus accrued interest. The Second Escrow Account has a balance of $9 plus accrued interest. Mr. Esserman discloses that the Asbestos Trust has conferred with Wells Fargo, Reorganized ASARCO and the Parent regarding the relief sought, and they have no objection to the requested relief. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On December 9, 2009, Grupo Mexico, S.A.B. consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by ASARCO LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ASARCO LLC: Sterlite Insists on Claim for $6.1-Mil. Reimbursement ----------------------------------------------------------------- Sterlite (USA), Inc., and Sterlite Industries (India) Ltd. submitted a pre-hearing memorandum to the Court in support of a reimbursement application for their asserted 'substantial contribution' to the reorganization proceedings of ASARCO LLC. The Sterlite Entities are seeking the reimbursement of (i) $6,103,573 in fees for 9,735 hours of services rendered, and (ii) out-of-pocket expenses amounting to $315,781. On behalf of Sterlite, Douglas P. Bartner, Esq., at Shearman & Sterling LLP, in New York, argues that none of ASARCO LLC's assertions about the motivation of Sterlite in the proposed acquisition of ASARCO LLC, whether true or not, is relevant to the instant dispute. "This is not a dispute over why, after more than four years of possessing the financial wherewithal to pay ASARCO's creditors in full but consistently choosing not to do so, the Parent finally put forward a full payment plan. Nor is it a dispute over why Sterlite participated in a 'bidding war' for ASARCO's operating assets," Mr. Bartner contends, on behalf of Sterlite. "This is simply a dispute over why the Parent paid what it ultimately paid to re-acquire ASARCO and whether it would have paid the same amount in the absence of Sterlite's participation in these cases," Mr. Bartner tells Judge Schmidt. ASARCO speculated that Sterlite was motivated to acquire ASARCO's operating assets "by its desire to obtain a foothold in the U.S. market" and "to escape from the enormous shadow of the litigation that will be pursued against it," presumably by ASARCO. ASARCO further noted that the Parent was motivated to re-acquire ASARCO because of a sharp increase in copper prices, its desire to bring an end to litigation relating to the environmental asbestos claimants, and its desire to bring ASARCO's assets and operations back into the fold of the larger global mining operations -- rather than anything Sterlite did. Mr. Bartner points out that Sterlite's Substantial Contribution Application "concerns facts remarkably similar to those that the United States Court of Appeals for the Fifth Circuit considered in In re DP Partners, LTD, 106 F.3d 667 (1997), the case reflecting the governing the law in this Circuit on substantial contribution applications." Mr. Bartner argues that the Parent paid what it paid to re- acquire ASARCO as a result of the bidding war that resulted from Sterlite's continued participation in the plan negotiation and confirmation process over nearly a year and a half. "Sterlite's attempt to acquire ASARCO's operating assets, and its willingness to effectively monetize the Southern Copper Company Judgment and to pay creditors in full, drove the Parent to pay significantly more than it would have had Sterlite not been engaged in the cases," he insists. "Under the Fifth Circuit's clear authority, this constitutes a 'substantial contribution,' and the Bankruptcy Code requires that such a contribution not go uncompensated," Mr. Bartner says. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On December 9, 2009, Grupo Mexico, S.A.B. consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by ASARCO LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ASARCO LLC: Says Fulbright Had "Abusive Billing Practices" ---------------------------------------------------------- Reorganized ASARCO LLC contends that Fulbright & Jaworski L.L.P's billing practices on its fee application as special local counsel for the Official Committee of Unsecured Creditors is representative of the abusive billing practices employed by many professionals paid by the bankruptcy estates. The Fulbright & Jaworski Fee Application is replete with egregious billing practices, including billing the estate over 1,500 hours of time recorded between September 2007 through May 2008 by a senior partner for two recurring time entries at a cost of over $1.1 million, Charles A. Beckham, Jr., Esq., at Haynes and Boone, LLP, in Houston, Texas -- charles.beckham@haynesboone.com -- contends. "The aggregate cost of the identical recurring time entries comprise approximately 20% of Fulbright's sought award," he asserts. Vague descriptions of nearly a full year of services deprive ASARCO of any ability to determine what services the Fulbright senior partner actually provided, Mr. Beckham adds. "Due to its improper billing practices," Mr. Beckham points out, "Fulbright cannot demonstrate that the services and expenses for which it requests compensation were necessary, conferred a material benefit on the estate, and were not duplicative of services provided by other professionals." Mr. Beckham further argues that Fulbright's Application does not comply with the Court's Application and Expense Guidelines, rendering it impossible for the Court to determine that Fulbright's services were necessary and provided a benefit to the estate. Against this backdrop, ASARCO asks that Fulbright's fee request be substantially reduced. * * * Judge Schmidt allowed the final fee applications of Grant Thornton LLP and Quarles & Brady LLP: Professional Fees Expenses ------------ ------------ ---------- Grant Thornton LLP $1,111,496 $109,286 Quarles & Brady LLP 1,228,355 82,687 About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On December 9, 2009, Grupo Mexico, S.A.B. consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by ASARCO LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ASSOCIATED OF L.A.: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Associated of Los Angeles 2585 East Olympic Blvd. Los Angeles, CA 90023 Bankruptcy Case No.: 10-22784 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Alan M. Ahart Debtor's Counsel: David A. Tilem, Esq. Law Offices of David A. Tilem 206 N Jackson St. Suite 201 Glendale, CA 91206 Tel: (818) 507-6000 Fax: (818) 507-6800 E-mail: davidtilem@tilemlaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb10-22784.pdf The petition was signed by Robert Mirolla, president. ATLANTIC FACILITIES: No Unsecured Creditors Committee Appointed --------------------------------------------------------------- Marjorie K. Lynch, the Bankruptcy Administrator for the Eastern District of North Carolina notified the U.S. Bankruptcy Court that she was unable to appoint an official committee of unsecured creditor in the Chapter 11 case of Atlantic Facilities, L.L.C. Ms. Lynch said that there were insufficient indications of willingness from the unsecured creditors to serve on the committee. Wilmington, North Carolina-based Atlantic Facilities, L.L.C. -- dba Audubon Properties LLC; East Metro Properties, LLC; South Metro Properties LLC; Myrtle Properties, L.L.C.; and North Metro Properties LLC -- filed for Chapter 11 bankruptcy protection on February 22, 2010 (Bankr. E.D. N.C. Case No. 10-01347). Trawick H. Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., assists the Company in its restructuring effort. The Company has assets of $14,481,403, and total debts of $15,767,067. ATLANTIC FACILITIES: Taps Stubbs & Perdue as Bankruptcy Counsel --------------------------------------------------------------- Atlantic Facilities, L.L.C., asks the U.S. Bankruptcy Court for the Eastern District of North Carolina for permission to employ Trawick H. Stubbs, Jr., and Stubbs & Perdue, P.A., as counsel. Stubbs & Perdue will represent and assist the Debtor in carrying out its duties in the Chapter 11 case. Mr. Stubbs tells the Court that prepetition, the firm received an initial retainer of $25,000 from Russell M. Maynard in behalf of the Debtor. The firm received an additional retainer of $50,109 to secure future fees and expenses. The remaining balance, as of February 22, 2010, was $35,835. To the best of the Debtor's knowledge, Stubbs & Perdue is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Stubbs can be reached be reached at: Stubbs & Perdue, P.A. 310 Craven Street P.O. Box 1654 New Bern, NC 28563-1654 Wilmington, North Carolina-based Atlantic Facilities, L.L.C. -- dba Audubon Properties LLC; East Metro Properties, LLC; South Metro Properties LLC; Myrtle Properties, L.L.C.; and North Metro Properties LLC -- filed for Chapter 11 bankruptcy protection on February 22, 2010 (Bankr. E.D. N.C. Case No. 10-01347). Trawick H. Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., assists the Company in its restructuring effort. The Company has assets of $14,481,403, and total debts of $15,767,067. ATLANTIC UNDERGROUND: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Atlantic Underground Utilities, Inc. 1363 Dean Forest Road Savannah, GA 31405 Bankruptcy Case No.: 10-40751 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Georgia (Savannah) Debtor's Counsel: J. Michael Hall, Esq. Hall & Kirkland, PC Post Office Box 647 Statesboro, GA 30459 Tel: (912) 489-2831 Fax: (912) 489-2887 E-mail: mhall@hallandkirkland.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by James C. Barfield, president. B&B INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: B&B Industries & Construction, Inc. fdba Boyd Brothers Construction Company, Inc. fdba Boyd Bros. Properties, Inc. 611 Fussell Road Leesburg, GA 31763 P.O. Box 71488 Albany, GA 31708 Bankruptcy Case No.: 10-10585 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Middle District of Georgia (Albany) Debtor's Counsel: Walter W. Kelley, Esq. Kelley, Lovett, and Blakey P.O. Box 70879 2539 Lafayette Plaza Albany, GA 31708 Tel: (229) 888-9128 E-mail: rcoxwell@kelleylovett.com Estimated Assets: $166,469 Estimated Debts: $3,304,899 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/gamb10-10585.pdf The petition was signed by Daniel H. Boyd, president. BANCO INTERNACIONAL: Moody's Puts 'Ba3' Rating on $150 Mil. Notes ----------------------------------------------------------------- Moody's Investors Service has assigned a Ba3 foreign currency subordinated debt rating to Banco Internacional del Peru S.A.'s planned US$150 million non-cumulative fixed/floating rate step-up junior subordinated notes due 2070. This debt will be transferred to Interbank Panama branch once local regulators approve its license to operate. The outlook on the rating is stable. Moody's said that the Ba3 subordinated debt rating for Interbank's Tier 1 notes is two notches below the bank's baseline credit assessment of Ba1 and reflects the structure of the securities. The bank's stand alone BCA of Ba1 is directly mapped from the D+ bank financial strength rating, in line with Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt. Key features of the notes driving the rating outcome are a) its 60 year maturity; b), the non-cumulative coupon skip mechanism, and c) deep subordination in liquidation. Coupon skip features include optional and mandatory cancellation of interest, both based on regulatory capital triggers. In the event of Interbank's bankruptcy, liquidation, or dissolution under Peruvian law, the notes will rank junior to all senior and subordinated debt, pari passu with the most junior subordinated debt, and senior to holders of both preferred and common stock. While the standard notching for such securities is three notches below the Adjusted BCA, the two notch differential in Interbank's case reflects the strong fundamentals of the bank, including a high and growing level of common equity. This capital strength together with the bank's systemic importance in Peru's developing market suggests a very low probability of a coupon skip at this juncture. Moody's noted however that the gap between the bank's current capitalization of 11.5% is relatively close to the minimum capital trigger for mandatory deferral, which will increase from 9.5% to 9.75% in July 2010. This gap, however, is expected to widen gradually by year end according to management through both the new hybrid issue and the bank's earnings generation. The rating agency highlighted at the same time that given the relative newness of hybrid instruments in Peruvian market, it will continue to monitor its development together with the evolving approach of the Peruvian regulators toward this type of security. As of December 31, 2009, Interbank was the fourth largest bank in Peru, with $5.6 billion in assets and $490 million in equity. Moody's last rating action for Interbank was on December 16, 2009, when the long term foreign currency deposit rating was upgraded to Baa3 from Ba2 and placed on stable outlook, following the same action taken on Peru's sovereign ceiling for foreign currency deposits. At the same time, the short term foreign currency deposit rating was upgraded to Prime-3 from Not Prime. This rating was assigned to Interbank's junior subordinated notes due 2070: * Junior subordinated debt: Ba3, with stable outlook BASHAS' INC: Last Minute Talks with Bondholders Delay Plan ---------------------------------------------------------- The Associated Press reports that an agreement with bondholders owed more than $215 million is holding up the Chapter 11 exit of Bashas' Inc. According to the report, lawyers for Bashas', banks and bondholders and unsecured creditors told U.S. Bankruptcy Judge James M. Marlar that negotiations on the terms of repayment to the lenders is the glitch holding up an agreement. The Chapter 11 plan filed by Bashas' has the support of most of the other creditors. Creditors committee attorney Jim Cross, Esq., blamed the delay on a last minute deal between Bashas' and the banks and insurance companies holding bonds. The Chapter 11 Plan Bashas, with the support of the Official Committee of Unsecured Creditors, has submitted a proposed reorganization plan. Bashas' received from Albertson's LLC an offer to buy the business at a value to be between $260 million and $290 million. Bashas', however, is pursuing its own stand-alone plan, under which it will continue to operate its Arizona business post-emergence. Bashas' said Albertsons' offer "would not pay creditors in full" and thus is not a desirable alternative to the existing plan. Bashas' plan, on the other hand, promises to pay unsecured creditors in full with interest over time. Unsecured creditors, which have claims aggregating $47 million, would receive 10% when the plan becomes effective with 10% paid annually for five years. The remainder of their claims would be paid on the fifth anniversary of plan confirmation. Secured bank lenders owed $110 million and secured noteholders owed $87 million would receive full payment. They would receive full payment with interest in five years if they accept the plan, and full payment with interest in 10 years if they reject the plan. The secured bank lenders are Bank of America, Compass Bank and Wells Fargo. The secured noteholders are comprised of T Prudential Insurance Co. of America, Northern Life Insurance Co., Hartford Life Insurance Co., Reliastar Life Insurance Co., Pruco Life Insurance Co., Prudential Retirement Insurance and Annuity Co., and United of Omaha Life Insurance Co. A copy of the Plan is available for free at: http://bankrupt.com/misc/Bashas_Amended_Plan.pdf A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/Bashas_Amended_DS.pdf About Bashas' Inc. Bashas' Inc. is a 77-year-old grocery chain that owns 158 retail stores located throughout Arizona. It is doing business as National Grocery, Bashas Food, Bashas' United Drug, Food City, Eddie's Country Store, A,.J. Fine Foods, Western Produce, Bashas' Distribution Center, Sportsman's, and Bashas' Dine. The Company and its affiliates filed for Chapter 11 bankruptcy protection on July 12, 2009 (Bankr. D. Ariz. Case No. 09-16050). Frederick J. Petersen, Esq., at Mesch, Clark & Rothschild, P.C., assists the Debtors in their restructuring efforts. Michael W. Carmel, Ltd., is the Debtors' co-counsel. Deloitte Financial Advisory LLP serves as financial advisors. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. In its bankruptcy petition, Bashas' listed $100 million to $500 million each in assets and debts. BEAUTY VENTURES: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Beauty Ventures, Inc. 9641 Highway 5 Douglasville, GA 30135 Bankruptcy Case No.: 10-70004 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Judge: C. Ray Mullins Debtor's Counsel: Evan M. Altman, Esq. Bldg. 2 - Northridge 400 8325 Dunwoody Place Atlanta, GA 30350 Tel: (770) 394-6466 Fax: (678) 405-1903 E-mail: evan.altman@laslawgroup.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by Nana Y. Boachie, president. BELTWAY-GESSNER: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Beltway-Gessner Retail, LP 6660 Airline Drive Houston, TX 77076 Bankruptcy Case No.: 10-32830 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Karen K. Brown Debtor's Counsel: Peter Johnson, Esq. Law Offices of Peter Johnson, Suite 2820 Eleven Greenway Plaza Houston, TX 77046 Tel: (713) 961-1200 Fax: (713) 961-0941 E-mail: pjlawecf@pjlaw.com Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb10-32830.pdf The petition was signed by Nestor Martinez, VP of Sole GP, Nesval, Corp. BHAVIJIT HOSPITALITY: Summary & 18 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Bhavijit Hospitality LLC, a Corporation 1175 Powers Ferry Place, SE Marietta, GA 30067 Bankruptcy Case No.: 10-69961 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Judge: James Massey Debtor's Counsel: Stanley W. Schoolcraft, III, Esq. 245 Country Club Drive Suite 200-D Stockbridge, GA 30281 Tel: (678) 289-9969 Fax: (678) 289-8240 E-mail: swschoolcraft@bellsouth.net Estimated Assets: $1,115,843 Estimated Debts: $3,006,213 A list of the Company's 18 largest unsecured creditors is available for free at http://bankrupt.com/misc/ganb10-69961.pdf The petition was signed by Shailesh Amin, president. BHUNASHAVARI LLLC: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Bhunashavari, LLC dba Town Inn 1717 E. Division St. Arlington, TX 76011 Bankruptcy Case No.: 10-32405 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Stacey G. Jernigan Debtor's Counsel: Arthur I. Ungerman, Esq. One Glen Lakes Tower 8140 Walnut Hill Ln., No. 301 Dallas, TX 75231 Tel: (972) 239-9055 Fax: (972) 239-9886 E-mail: arthur@arthurungerman.com Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txnb10-32405.pdf The petition was signed by Rimesh Patel, President. BRENTWOOD GROUP NO. 2: Voluntary Chapter 11 Case Summary -------------------------------------------------------- Debtor: Brentwood Group No. 2, Ltd. 10000 Emmett F Lowry Expressway Texas City, TX 77591 Case No.: 10-80208 Type of business: The Debtor is a single asset real estate. Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Southern District of Texas (Galveston) Judge: Letitia Z. Paul Debtor's Counsel: Leonard H Simon, Esq. Pendergraft & Simon L.L.P. 2777 Allen Parkway, Suite 800 Houston, TX 77019 Tel: (713) 737-8207 Fax: (832) 202-2810 E-mail: lsimon@pendergraftsimon.com Total Assets: $100,001 to $500,000 Total Debts: $10,000,001 to $50,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition is signed by Mayer C. Makabeh, a general partner at the Debtor. BRENTWOOD GROUP NO. 3: Voluntary Chapter 11 Case Summary -------------------------------------------------------- Debtor: Brentwood Group No. 3, Ltd. 10000 Emmett F Lowry Expressway Texas City, TX 77591 Case No.: 10-80209 Type of business: The Debtor is a single asset real estate. Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Southern District of Texas (Galveston) Judge: Letitia Z. Paul Debtor's Counsel: Leonard H Simon, Esq. Pendergraft & Simon L.L.P. 2777 Allen Parkway Suite 800 Houston, TX 77019 Tel: (713) 737-8207 Fax: (832) 202-2810 E-mail: lsimon@pendergraftsimon.com Total Assets: $100,001 to $500,000 Total Debts: $10,000,001 to $50,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition is signed by Mayer C. Makaeh, sole manager general partner of the Debtor. BRIAND PROPERTIES: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Briand Properties, LLC P.O. Box 20635 San Jose, CA 95160-0635 Bankruptcy Case No.: 10-53503 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Jose) Judge: Roger L. Efremsky Debtor's Counsel: Stanley A. Zlotoff, Esq. Law Offices of Stanley A. Zlotoff 300 S. 1st Street #215 San Jose, CA 95113 Tel: (408) 287-1313 E-mail: zlotofflaw@gmail.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company says that assets total $820,000 while debts total $1,407,631. A copy of the Company's list of 3 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb10-53503.pdf The petition was signed by Michael Dorian, managing member. BRIGHT STAR: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Bright Star Early Learning Center at 42 North, LLC 6120 Montlake Avenue McDonough, GA 30253 Bankruptcy Case No.: 10-69696 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Kenneth Mitchell, Esq. Giddens, Davidson & Mitchell P.C. Suite 300-B 5000 Snapfinger Woods Drive Decatur, GA 30034 Tel: (770) 987-7007 Fax: (770) 987-7138 E-mail: kmitchell@gdmpclaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/ganb10-69696.pdf The petition was signed by Anthonie T. Hurt, managing member. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Mundy Mill Academy LLC 10-69690 4/02/10 BROWN JORDAN: Near Covenant Breach Won't Move Moody's 'B2' Rating ----------------------------------------------------------------- Moody's Investors Service stated that Brown Jordan International, Inc.'s B2 Corporate Family Rating and negative outlook are unchanged despite increasing concern for a near term covenant violation that could potentially arise from a difference in interpretation of defined terms in the company's credit agreements. Please refer to Moody's Issuer Comment posted on moodys.com for more information. Brown Jordan's ratings are: * Corporate Family Rating: B2; * Probability of Default Rating: B3; * Senior Secured Revolving Credit Facility: Ba3 (LGD2, 17%); * Senior Secured Term Loan: B2 (LGD3, 35%); * Senior Secured Second Lien Loan: Caa1 (LGD4, 65%) The ratings outlook is negative The last rating action on Brown Jordan occurred on September 24, 2009 when Moody's affirmed the company's B2 CFR and changed the ratings outlook to negative from stable. Brown Jordan is one of the premier designers, manufacturers and marketers of outdoor retail and contract furnishings with brand names that include Brown Jordan, Winston, Wabash, Charter and La- Z-Boy, among others. Estimated revenue for the year ending December 31, 2009, was about $250 million. BRUCE FELDER: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Bruce B. Felder 5100 Three Village Dr. Lyndhurst, OH 44124 Bankruptcy Case No.: 10-12970 Chapter 11 Petition Date: April 4, 2010 Court: United States Bankruptcy Court Northern District of Ohio (Cleveland) Judge: Randolph Baxter Debtor's Counsel: Richard A. Baumgart, Esq. Dettelbach, Sicherman & Baumgart 1100 AmTrust Bank Center 1801 East 9th Street Cleveland, OH 44114-3169 Tel: (216) 696-6000 Fax: (216) 696-3338 E-mail: rbaumgart@dsb-law.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ohnb10-12970.pdf The petition was signed by Bruce B. Felder. BWC BUILDERS: Case Summary & 16 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: BWC Builders, LLC 2244 Lyle Road College Park, GA 30337 Bankruptcy Case No.: 10-70064 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Judge: Joyce Bihary Debtor's Counsel: Martha A. Miller, Esq. Martha A. Miller, P.C. International Tower Suite 2415 229 Peachtree Street, NE Atlanta, GA 30303 Tel: (404) 607-9008 Fax: (404) 607-9068 E-mail: mmiller@rbspg.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 16 largest unsecured creditors is available for free at http://bankrupt.com/misc/ganb10-70064.pdf The petition was signed by Joseph Babb, managing member. CAL INVESTMENTS: U.S. Trustee Withdraws Motion to Convert Case -------------------------------------------------------------- Sara L. Kistler, Acting United States Trustee for Region 17, has withdrawn her motion to convert the Chapter 11 case of Cal Investments, Inc., to one under Chapter 7. As reported in the Troubled Company Reporter on March 29, 2010, the U.S. Trustee had sought for the conversion after the Debtor failed to provide relevant information it requested. Soquel, California-based Cal Investments, Inc., filed for Chapter 11 bankruptcy protection on October 30, 2009 (Bankr. N.D. Calif. Case No. 09-59405). Scott J. Sagaria, Esq., and Patrick Calhoun, Esq., at the Law Offices of Scott J. Sagaria assist the Company in its restructuring efforts. According to the Debtors' schedules of assets and debts, the Company has assets of at least $13,957,842, and total debts of $22,913,609. CAL-ONTARIO, INC: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Cal-Ontario, Inc. DBA Southridge Golf Club 9413 S. Butte Road Sutter, CA 95982 Bankruptcy Case No.: 10-28672 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Ronald H. Sargis Debtor's Counsel: Julia P. Gibbs, Esq. 1329 Howe Avenue #205 Sacramento, CA 95825-3363 Tel: 916-646-2800 Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company says that assets total $525,000 while debts total $3,493,375 A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/caeb10-28672.pdf The petition was signed by Lucyna M. Kumar, president. CALVARY IN SAVANNAH: Files for Bankruptcy to Replace Finances ------------------------------------------------------------- Jan Kutch at Savannah Morning News reports that Calvary in Savannah filed for Chapter 11 bankruptcy to replace its financing of a planned west Chatham expansion. According to Savannah Morning, at issue is a $7 million financial package for about 200 acres of Red Gate Farm property along Veterans Parkway. Creditors wanted to foreclose the property. Calvary in Savannah -- http://www.calvaryinsavannah.org/-- is a religious institution. CG JCF: Moody's Affirms Corporate Family Rating at 'B2' ------------------------------------------------------- Moody's Investors Service has affirmed the B2 corporate family rating of C.G. JCF Corp., the holding company for Crump Group, as well as the B2 ratings on the company's senior secured credit facilities. The rating outlook has been changed to stable from negative based on the group's improving profitability and lower financial leverage. Despite the headwinds of a weak US economy and a soft market for commercial property & casualty insurance, Crump Group has expanded its operating margin and continued to pay down debt over the past year. The group results reflect reasonably strong earnings in the Life Insurance Services and Retirement Services Divisions, tempered by continued weakness in the P&C Insurance Services Division. The P&C unit has taken various restructuring steps in recent quarters to improve its performance. "A critical factor shaping Crump Group's credit profile has been the steady support from its private equity sponsor," said Bruce Ballentine, Moody's lead analyst for Crump Group. Since the time of its leveraged financing in 2007, Crump Group has been subject to a relatively stringent financial leverage covenant. The credit agreement includes a provision whereby the private equity sponsor, J.C. Flowers & Co. LLC, may periodically contribute equity, to be counted as EBITDA, up to the amount needed to "cure" Crump Group's performance under the covenant. JCF has contributed cure amounts in 2008 and 2009 in accordance with this provision. "We expect that JCF will continue to make equity contributions as needed to satisfy the financial leverage covenant," said Mr. Ballentine. The equity contributions from JCF, along with cash from operations and other sources, have helped Crump Group to reduce its term loan outstanding from an initial amount of $515 million to $375 million as of year-end 2009. The combination of debt reduction and EBITDA growth has led to more favorable financial leverage and coverage metrics. According to Moody's calculations (which often differ from company or covenant calculations), Crump Group's adjusted debt-to-EBITDA ratio has declined from 7.3x at year-end 2008 (excluding the effects of goodwill and asset impairments) to 5.4x at year-end 2009 -- a level more consistent with the current ratings. Crump Group benefits from its solid presence in target markets and its healthy diversification across the three divisions, said Moody's. It is the largest US wholesale insurance broker in terms of combined life and P&C insurance premiums placed. It is also among the largest providers of outsourced record-keeping and administration services for employer-sponsored retirement plans, with expertise in serving small and mid-sized employers. Crump Group's financing arrangement includes a $40 million senior secured revolving credit maturing in August 2013 (rated B2) and the $375 million senior secured term loan maturing in August 2014 (rated B2). The facilities are secured by substantially all of Crump Group's assets and guaranteed by all of its material subsidiaries. Moody's cited these factors that could lead to an upgrade of Crump Group's ratings: (i) adjusted (EBITDA - capex) coverage of interest exceeding 2.5x, (ii) adjusted free-cash-flow-to-debt ratio exceeding 6%, and (iii) adjusted debt-to-EBITDA ratio below 4.5x. Moody's cited these factors that could lead to a downgrade of the company's ratings: (i) adjusted (EBITDA -capex) coverage of interest below 1.5x, (ii) adjusted debt-to-EBITDA ratio above 6.5x, or (iii) a reduction in support provided by JCF. Moody's last rating action on Crump Group took place on December 8, 2008, when the CFR and senior secured credit facility ratings were affirmed at B2 and the outlook was changed to negative from stable. Crump Group, based in Roseland, New Jersey, is a diversified insurance brokerage and retirement services firm. For 2009, the company generated revenues of $395 million. Stockholder's equity was $197 million as of December 31, 2009. The firm is ultimately owned by JCF and Crump Group managers. CHRYSLER LLC: Cryonic Life Seeks Allowance of $872-Mil. Claim ------------------------------------------------------------- Cryonic Life Insurance Company holds $872,301,000 in U.S. government guaranteed Chrysler Financial Corporation Notes issued between October 1979 and December 1983 and due before December 1990. Chrysler Corp. wholly owned Chrysler Financial until 2006. By this motion, Cryonic Life asks the Court to allow its claim for $872,301,000. "We asked in the claim if the Chrysler Corp could make 'CREATED GOLD COINS' and its own cost and expense as authorized by Congress to pay its creditors and help mint created gold coins as authorized by law for Congress," Cryonic Life's Daniel R. Izzo tells the Court. Mr. Izzo contends that the Debtors and the U.S. Government as guarantor has an obligation that the principal amount due on the Notes is paid. He adds that Cryonic Life has been holding on to the Notes to enforce the U.S. Government Guarantee and to hold them as deposits on national banking association notes. About Chrysler Group LLC Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHRYSLER LLC: Reaches Deal with N. Carolina on Dealership Issues ---------------------------------------------------------------- Plaintiffs Old Carco LLC, Old Carco Motors LLC and Chrysler Group LLC, and Defendants Gene Conti, Transportation Secretary for the North Carolina Department of Transportation, and Mike Robertson, North Carolina Commissioner of Motor Vehicles jointly ask the United States Bankruptcy Court for the Southern District of New York to enter a consent judgment and settlement agreement to resolve their issues in the adversary proceeding regarding the enforcement of recent amendments to the State's dealership franchise laws. The Settlement Agreement enjoins the North Carolina Defendants from enforcing any portion of the North Carolina Amendments against New Chrysler at any time in the future. If any rejected dealer files a protest or seeks relief under the North Carolina Amendments, the North Carolina Department of Transportation will dismiss the protest with prejudice and provide the protesting dealer with a copy of the Consent Judgment. The Parties also agree that if any civil or criminal enforcement action is brought alleging a violation of the North Carolina Amendments, the Debtors and New Chrysler have preserved, and have not relinquished their right, to assert or raise any defense, issue or argument of any nature. Moreover, the North Carolina Department of Transportation will issue licenses to new Chrysler, Dodge or Jeep dealer applicants, who qualify for those licenses pursuant to North Carolina Law, without regard to the North Carolina Amendments. * * * Judge P. Kevin Castel of the United States District Court for the Southern District of New York withdrew the automatic reference to the Bankruptcy Court as to the adversary proceeding, except for the approval of any settlements, including the North Carolina Settlement, and any future settlements. To recall, Jesse White, Illinois Secretary of State and Terrence O'Brien, Chairperson of the Illinois Vehicle Review Board asked the Bankruptcy Court to enter an order staying litigation in the adversary proceeding until the District Court rules on Illinois' motion to withdraw the reference. In its Withdrawal Motion, Illinois asserted that the Bankruptcy Court should withdraw the reference of the adversary proceeding because the mandatory withdrawal provisions of Section 157(d) of the Judiciary and Judicial Procedures Code apply where a timely motion is brought by a party and resolution of the proceeding requires consideration of both Bankruptcy Code and other federal laws regulating organizations or activities affecting interstate commerce. "The remaining parties to this proceeding are invited to consider settlements along the lines of the North Carolina settlement and, failing that, to submit a schedule for resolution of the remaining issues in this proceeding," Judge Castel said in his four-page memorandum and order. c Chrysler Group LLC Chief Executive Sergio Marchionne said they expect the auto maker to break even this year. "We intend to break even on an operating basis in 2010, with operating profit increasing steadily to $5 billion by 2014," Mr. Marchionne said at a forum in New York sponsored by the National Automobile Dealers Association and research firm IHS Global Insight. Chrysler Group forecast in 2009 that it would finish the year with a cash balance of $5 billion. The auto maker ended the year "slightly north of that mark," according to Mr. Marchionne. Mr. Marchionne said that they have five years to reach their goals and that they are moving fast to execute Chrysler Group's business plan. In November 2009, the chief executive presented a five-year recovery plan on how it would align Chrysler Group and Fiat S.p.A.'s organizations, develop a product portfolio and rebuild the equity of its brands and its relationship with customers. Chrysler Group has been operated by Fiat, an Italy-based auto maker where Mr. Marchionne also serves as chief executive. Fiat acquired most of the assets of Chrysler LLC after it filed for bankruptcy protection last year. During his speech, Mr. Marchionne emphasized the importance of Chrysler Group's dealers in its restructuring and announced that the auto maker plans to invest over $500 million in its dealership network over the next five years. "Dealers are the ambassadors of our brands and are crucial to the effort to re-establish links with our customers," he said. Earlier, Chrysler Group offered to reinstate 86 of the 789 dealers that were previously terminated as part of its restructuring. They were among 418 that sought arbitration to appeal the auto maker's decisions to revoke their franchise agreements. Mr. Marchionne also announced that Chrysler Group is planning to approximately double its global sales to a total of 2.8 million units over the next five years. He said 75% of the auto maker's vehicle line-up will be all-new or renewed by the end of 2010. "When this rebuilding period is complete, we will have paid back every penny that Chrysler Group has borrowed from the American and Canadian governments," Mr. Marchionne said. A full-text copy of Mr. Marchionne's speech delivered at the March 30 Automotive Forum can be accessed at http://ResearchArchives.com/t/s?5cf2 About Chrysler Group LLC Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHRYSLER LLC: To Reinstate 50 of 789 Scrapped Dealers ----------------------------------------------------- Chrysler Group LLC said it is offering to reinstate 50 of the 789 dealers that were previously terminated as part of its restructuring. The dealers are in areas that offer services to customers and will not hurt the remaining stores in Chrysler Group's dealership network, according to the auto maker's March 26 statement. The auto maker earlier offered to restore 36 other dealers whose agreements were also revoked. Discussions to find "mutually beneficial alternatives" to arbitration with other dealers are under way, the statement said. The 50 dealers being offered reinstatement have not yet been notified. They were among 418 that sought arbitration to appeal Chrysler Group's decisions to terminate their franchise agreements, according to a report by The Associated Press. Congress passed a law late last year giving dealers of Chrysler Group and another bankrupt auto maker, General Motors Corp., a chance to challenge or reconsider decisions to revoke their franchise agreements. The law established an arbitration process to determine whether dealerships ought to be reinstated. The arbitrations must be completed before the end of June of this year, according to a March 26 report by Bloomberg News. Sheldon Sandler, managing director of New Jersey-based Bel Air Partners, said the auto maker is reinstating the 50 dealers because it knows that it will lose cases during arbitration hearings. "Maybe someone just woke up and realized that they were making a huge mistake, particularly with those dealers where they didn't have a competing car dealer," AP quoted Mr. Sandler as saying. Mr. Sandler predicts more victories for dealers during arbitration hearings, saying the process was flawed from the beginning. The negotiations could be complicated for Chrysler Group, AP said. Dealers that remained with the auto maker and were given the franchise agreements of those that were shut down could sue if the arbitrator decides to reverse Chrysler Group's decision. Ed Tonkin, chairman of the National Automobile Dealers Association, called the reinstatement of the dealers a move in the right direction. "NADA views this as a good faith effort and hopes that this carries forward in Chrysler's continuing settlement and arbitration discussions with the other terminated dealers," Mr. Tonkin said in a statement. About Chrysler Group LLC Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHRYSLER LLC: March Sales Up 51% from February ---------------------------------------------- Fred Diaz, chief executive officer of Chrysler Group LLC's Ram truck brand, said retail sales to individual buyers increased by 51% this month compared with February, The Associated Press reported. Retail sales are those made directly to consumers rather than sales to rental companies, corporate or government fleets. At an event to discuss marketing for the Ram truck brand, Mr. Diaz said March sales have been helped by option packages and that consumers are starting to believe the auto maker will be around for the long term, AP reported. Mr. Diaz did not reveal how much of March sales were to fleet buyers who generally bring car companies lower profits than consumers. He said Chrysler group plans for 20% to 25% of its sales to be to fleets for the full year, according to the report. Although sales to individual buyers are up 51% this month compared with February, overall sales including fleet declined 10% to 12% from a year ago as the automaker reduces incentives, according to a report by Bloomberg News. Mr. Diaz admitted that Chrysler Group was buying the market in March 2009. "We had huge incentives, huge rebates, which were degrading the brands and the corporation and creating bad practices which is part of what drove us into bankruptcy," Bloomberg News quoted Mr. Diaz as saying. He added that sales at the auto maker may decline in coming months from last year until the shift to advertising motivates buyers. Chrysler Group is set to release its report of sales for the full month of March today. Stephanie Brinley, an analyst at Michigan-based AutoPacific, said Chrysler Group has been quiet for so long that it enabled consumers to forget about the auto maker. "It's been such a tough year. It's going to take them longer to get back because they fell harder and farther than anyone else," Bloomberg quoted Ms. Brinley as saying. About Chrysler Group LLC Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CIRCUIT CITY: Mitsubishi Fights Bar on $5.5M Circuit Claims ----------------------------------------------------------- Bankruptcy Law360 reports that Mitsubishi Digital Electronics America Inc. is appealing a bankruptcy court's decision to allow Circuit City Stores Inc. to temporarily withhold about $5 million in administrative expenses during the defunct company's attempt to recover preference payments. Headquartered in Richmond, Virginia, Circuit City Stores Inc. (NYSE: CC) -- http://www.circuitcity.com/-- was a specialty retailer of consumer electronics, home office products, entertainment software and related services in the U.S. and Canada. Circuit City Stores together with 17 affiliates filed a voluntary petition for reorganization relief under Chapter 11 of the Bankruptcy Code on November 10 (Bankr. E.D. Va. Lead Case No. 08- 35653). InterTAN Canada, Ltd., which runs Circuit City's Canadian operations, also sought protection under the Companies' Creditors Arrangement Act in Canada. Gregg M. Galardi, Esq., and Ian S. Fredericks, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, are the Debtors' general restructuring counsel. Dion W. Hayes, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, are the Debtors' local counsel. The Debtors also tapped Kirkland & Ellis LLP as special financing counsel; Wilmer, Cutler, Pickering, Hale and Dorr, LLP, as special securities counsel; and FTI Consulting, Inc., and Rotschild Inc. as financial advisors. The Debtors' Canadian general restructuring counsel is Osler, Hoskin & Harcourt LLP. Kurtzman Carson Consultants LLC is the Debtors' claims and voting agent. The Debtors disclosed total assets of $3,400,080,000 and debts of $2,323,328,000 as of August 31, 2008. Circuit City has opted to liquidate its 721 stores. It has obtained the Bankruptcy Court's approval to pursue going-out-of- business sales, and sell its store leases. In May 2009, Systemax Inc., a multi-channel retailer of computers, electronics, and industrial products, acquired certain assets, including the name Circuit City, from the Debtors through a Court- approved auction. Bankruptcy Creditors' Service, Inc., publishes Circuit City Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Circuit City Stores Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). CKE RESTAURANTS: S&P Puts 'BB-' Rating on CreditWatch Negative -------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings, including the 'BB-' corporate credit rating, on CKE Restaurants Inc. remain on CreditWatch, where they were placed with negative implications on Feb. 26, 2010. This rating action was taken after CKE announced it had entered into a definitive agreement with affiliates of Thomas H. Lee Partners, L.P., to take the company private at an $11.05 per share price. "S&P's latest rating action comes after Carpinteria, Calif.-based CKE announced that it received an alternative takeover proposal to acquire all the outstanding shares of the company," said Standard & Poor's credit analyst Charles Pinson-Rose. At this point, CKE's board of directors reasonably expects that the alternative proposal will be superior to the original offer by THL. However, the alternative proposal will be subject to several conditions including completion of due diligence and negotiations of a mutually acceptable definitive agreement. Therefore, CKE notes there can be no assurance that the alternative proposal would ultimately lead to a superior proposal. At this time, the board has not changed its recommendation about the pending merger with affiliates of THL. If either the original or alternative proposal to takeover CKE is consummated, S&P believes the transaction could weaken CKE's credit profile because it is likely the transaction will be funded with additional debt. S&P will resolve its CreditWatch listing once it is evident either the original or alternative proposal will be approved by shareholders; when S&P knows how the transaction will be funded; and know what impact it could have on CKE's capital structure. CONSECO INC: Sheldon Solow Drops Suit Over Sale of GM Building -------------------------------------------------------------- Reuters reports that billionaire New York real estate developer Sheldon Solow has dropped his lawsuit accusing insurer Conseco Inc. of fraud over the $1.4 billion auction in 2003 of the General Motors Building in midtown Manhattan. Reuters recalls Mr. Solow had alleged in an August 2006 complaint that he had submitted the best and highest bid to buy the 50-story tower, but that Conseco rigged the auction by using his bid to set a price for rival developer Harry Macklowe, who ultimately bought the property. Reuters says the voluntary dismissal was disclosed in a joint filing by Solow and Conseco in Manhattan federal court. The case was dismissed with prejudice, meaning it cannot be brought again. According to Reuters, Solow spokesman Michael Gross declined to comment immediately. Reuters relates Reed Oslan, Esq., a partner at Kirkland & Ellis LLP representing Conseco, said his client "is pleased that it has now finally resolved all of the litigation relating to the 2003 sale." Reuters relates U.S. District Judge Barbara Jones had in December rejected Mr. Solow's claims, but the developer appealed to the U.S. Court of Appeals for the Circuit Court. In her ruling, according to Reuters, Judge Jones concluded that Mr. Solow could not sue the reorganized Conseco for alleged wrongdoing of the "old" Conseco because he had no claims alleging misconduct or fraud taking place after the company emerged from bankruptcy. Monday's dismissal ends that appeal, Reuters says. Reuters recalls that Mr. Solow sued Conseco for at least $35 million, alleging that his bidding tied up hundreds of millions of dollars he could have used elsewhere. Conseco sold the building on August 28, 2003, just 11 days before it emerged from bankruptcy protection. Boston Properties led a joint venture that acquired the GM building from Macklowe Properties for about $2.8 billion in June 2008. The case is Solow v. Conseco Inc et al., U.S. District Court, Southern District of New York, No. 06-05988. About Conseco Inc. Headquartered in Carmel, Indiana, Conseco, Inc. (NYSE: CNO) -- http://www.conseco.com/-- is the holding company for a group of insurance companies operating throughout the United States that develop, market and administer supplemental health insurance, annuity, individual life insurance and other insurance products. The Company became the successor to Conseco Inc. (Old Conseco), in connection with the Company's bankruptcy reorganization which became effective on September 20, 2003. CNO focuses on serving the senior and middle-income markets. The Company sells its products through three distribution channels: career agents, professional independent producers and direct marketing. The Company's balance sheet as of Dec. 31, 2009, showed $30.3 billion in assets, $26.8 billion of debts, and $3.5 billion of stockholders' equity. * * * Conseco, Inc. carries Moody's Investors Service's "Caa1" senior secured debt with a positive outlook. CORRIDOR PROJECTS, THE: Case Summary & 20 Largest Unsec. Creditors ------------------------------------------------------------------ Debtor: The Corridor Projects, L.P. 6100 Center Drive Suite 1200 Los Angeles, CA 90045 Bankruptcy Case No.: 10-22923 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Ernest M. Robles Debtor's Counsel: Richard H. Gibson, Esq. 21800 Oxnard Street #310 Woodland Hills, CA 91367 Tel: (818) 716-7950 Fax: (818) 716-7995 Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-22923.pdf The petition was signed by Sharon Sumpter, executive director. CREDITWEST CORP: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: CreditWest Corporation 5880 Commerce Blvd. Suite 105 Rohnert Park, CA 94928 Bankruptcy Case No.: 10-11212 Chapter 11 Petition Date: April 4, 2010 Court: United States Bankruptcy Court Northern District of California (Santa Rosa) Judge: Alan Jaroslovsky Debtor's Counsel: Steven M. Olson, Esq. Law Offices of Steven M. Olson 100 E St. #214 Santa Rosa, CA 95404 Tel: (707) 575-1800 E-mail: smo@smolsonlaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Larry J. Kelley, the company's president. The Debtor did not file its list of largest unsecured creditors when it filed its petition. CUMULUS MEDIA: Has Investment Partnership with Crestview -------------------------------------------------------- Cumulus Media Inc., and Crestview Partners on Wednesday announced the formation of a strategic investment partnership that will seek to invest in premium radio broadcasting companies that present attractive opportunities for significant long-term capital appreciation. The partnership's objective is to deliver significant value and achieve attractive returns through Cumulus' proven skills in radio station management and operations, as well as its proprietary technology platform. Under the terms of the partnership, Crestview will lead an investor group that would invest up to $500 million in equity in the partnership, to be called Cumulus Radio Investors, L.P. Together with debt financing expected to be available through the capital markets, CRI could target acquisitions totaling in excess of $1 billion. Cumulus would provide all management, financial, operational and corporate services to the partnership and its operations pursuant to a management services agreement. Cumulus will be compensated through management fees as well as incentive compensation based on investment returns. Cumulus successfully formed a similar private partnership, Cumulus Media Partners LLC, in 2006 with three other leading private equity funds to acquire the radio broadcasting business of Susquehanna Pfaltzgraff Company in a transaction valued at approximately $1.2 billion. Cumulus Chairman, President and CEO, Lew Dickey, commented: "We are pleased to announce the formation of Cumulus Radio Investors in partnership with Crestview and other investors to uniquely combine the synergies of one of the largest radio broadcast companies with the backing of a strong financial sponsor whose senior partners, Thomas Murphy, Jr. and Jeffrey Marcus, have significant investing and operating experience in the radio industry. We will be deliberate and disciplined in our investment approach, but we are prepared to move quickly to capitalize on the strategic investment opportunities that we believe are available today." Jeffrey Marcus and Thomas Murphy, Jr., both partners of Crestview, said: "Crestview is excited to partner with Lew Dickey and the rest of the Cumulus Media management team to pursue investments in the radio industry. The Cumulus Media team has demonstrated the ability to grow radio businesses while achieving significant operational efficiencies. We are confident that our investment and operating experience in the radio industry combined with Cumulus Media's management capabilities and strong technology platform will lead to compelling investment opportunities." UBS Investment Bank acted as advisor to Cumulus in the formation of Cumulus Radio Investors, L.P. About Crestview Partners Founded in 2004, Crestview Partners -- http://www.crestview.com/ -- is a $4 billion private equity firm based in New York which focuses on the media, healthcare and financial services industries. Crestview is led by a group of former partners and leaders in the private equity and media business and senior management of Goldman Sachs and Morgan Stanley. About Cumulus Media Based in Atlanta, Georgia, Cumulus Media Inc. (NASDAQ: CMLS) -- http://www.cumulus.com/-- is the second largest radio broadcaster in the United States based on station count, controlling 350 radio stations in 68 U.S. media markets. In combination with its affiliate, Cumulus Media Partners, LLC, the Company believes it is the fourth largest radio broadcast company in the United States when based on net revenues. As of December 31, 2009, Cumulus Media had $334,064,000 in total assets against $706,576,000 in total liabilities, resulting in $372,512,000 in stockholders' deficit. The December 31, 2009 balance sheet also showed strained liquidity: Cumulus Media had $64,714,000 in total current assets against $68,195,000 in total current liabilities. * * * According to the Troubled Company Reporter on December 8, 2009, Standard & Poor's Ratings Services lowered its corporate credit rating on radio broadcaster Cumulus Media Inc. to 'B-' from 'B'. The rating outlook is stable. CYPRESS NILKANTH: Case Summary & Four Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Cypress Nilkanth Partners, LP aka Galleria at Red Oaks 12703 North FM 620 Austin, TX 78750 Case No.: 10-10917 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Western District of Texas (Austin) Judge: Craig A. Gargotta Debtor's Counsel: B. Weldon Ponder, Jr., Esq. Building 3, Suite 200 4601 Spicewood Springs Road Austin, TX 78759-7841 Tel: (512) 342-8222 Fax: (512) 342-8444 E-mail: welpon@austin.rr.com Total Assets: $1,000,000 to $10,000,000 Total Debts: $1,000,000 to $10,000,000 A list of the Debtor's four largest unsecured creditors is available for free at: http://bankrupt.com/misc/txwb10-10917.pdf The petition is signed by Bhaskar N. Patel, managing member of GP, Nilkanth Holdings. DANIEL TARVER: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Daniel Tarver 3210 Coldwater Canyon Lane Studio City, CA 91604 Bankruptcy Case No.: 10-13919 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Geraldine Mund Debtor's Counsel: M. Jonathan Hayes, Esq. Law Office of M. Jonathan Hayes 9700 Reseda Boulevard, Suite 201 Northridge, CA 91324 Tel: (818) 882-5600 Fax: (818) 882-5610 E-mail: jhayes@polarisnet.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-13919.pdf The petition was signed by the Debtor. DEATH ROW: Buyer Sued for Civil Contempt by Partners ---------------------------------------------------- Lara Lavi, whose company WIDEawake Entertainment Group Inc., acquired Death Row Records' catalogue of hip-hop hits from bankruptcy in 2009, has sued partners Robert Thompson-So and Ronald Ovendon, both of lender New Solutions Capital Group, to bar them from making business decisions on Death Row's behalf, which she said has put the label's future in jeopardy. The civil lawsuit was filed in a New York state supreme court late last year. According to Jacqueline Palank of Dow Jones' Daily Bankruptcy Review, Messrs. Thompson-So and Ovendon allege in a new court filing that Ms. Lavi "continuously lied" to the New York state court that she was the label's majority owner to wrest control of the label away from her partners in the $18 million deal. Ms. Palank relates that Messrs. Thompson-So and Ovendon accuse Ms. Lavi of disregarding the numerous pieces of evidence they've presented her with demonstrating that she's actually a minority owner of the label and therefore doesn't control it. Despite this "overwhelming" evidence, the defendants say Ms. Lavi has moved forward with the lawsuit solely to "harass and maliciously injure" them and to obtain control of the label "at any cost." Messrs. Thompson-So and Ovendon are urging the judge to declare Ms. Lavi in civil contempt of court and to impose sanctions, forcing her to cover at least the defendants' legal fees. Headquartered in Compton, California, Death Row Records Inc. -- http://www.deathrowrecords.net/-- is an independent record producer. The company and its owner, Marion Knight, Jr., filed for chapter 11 protection on April 4, 2006 (Bankr. C.D. Calif. Case No. 06-11205 and 06-11187). Daniel J. McCarthy, Esq., at Hill, Farrer & Burrill, LLP, and Robert S. Altagen, Esq., represent the Debtors in their restructuring efforts. R. Todd Neilson serves as chapter 11 Trustee for the Debtors' estate. The U.S. Trustee for Region 17 appointed creditors to serve on an Official Committee of Unsecured Creditors. The Committee selected Pachulski Stang Ziehl & Jones as its counsel. When the Debtors filed for protection from their creditors, they listed total assets of $1,500,000 and total debts of $119,794,000. DEFAIR FARMS: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: DeFair Farms, LLC 167 Westside Road Statesboro, GA 30458 P.O. Box 6 Statesboro, GA 30458 Bankruptcy Case No.: 10-60332 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Georgia (Statesboro) Debtor's Counsel: James L. Drake, Jr., Esq. P.O. Box 9945 Savannah, GA 31412 Tel: (912) 790-1533 E-mail: jdrake7@bellsouth.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by D. Lamar DeLoach, member-partner. DIERK HAGEMANN: Case Summary & 17 Largest Unsecured Creditors ------------------------------------------------------------- Joint Debtors: Dierk Hagemann Marilyn Hagemann aka Marilyn Cope 4516 Palos Verdes Dr. East Rancho Palos Verdes, CA 90275 Bankruptcy Case No.: 10-22646 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Richard M. Neiter Debtor's Counsel: Gerald Wolfe, Esq. Law Office of Gerald Wolfe 19600 Fairchild Road, Suite 295 Irvine, CA 92656 Tel: (949) 257-0961 Fax: (949) 608-8930 E-mail: gerald@gwesq.com Scheduled Assets: $1,660,500 Scheduled Debts: $1,725,592 A list of the Company's 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb10-22646.pdf The petition was signed by Dierk Hagemann and Marilyn Hagemann. DUC CONG: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------ Debtor: Duc Cong Vuong, Debtor 953 Bonita Bayou Vista, Tx 77563 Bankruptcy Case No.: 10-80206 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Texas (Galveston) Judge: Letitia Z. Paul Debtor's Counsel: Erin E Jones, Esq. Jones Morris, LLP 2700 Post Oak Suite 1120 Houston, TX 77056 Tel: 713-589-5061 Fax: 713-589-5513 E-mail: erin@jonesmorris.com Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at: http://bankrupt.com/misc/txsb10-80206.pdf The petition was signed by Duc Cong Vuong, GP Managing Member, A.I. 45, LLC. DYCOM INDUSTRIES: Moody's Says Neg. Outlook on CFR May Stabilize ---------------------------------------------------------------- Moody's Investors Service said the negative outlook on Dycom Industries Inc.'s Ba2 corporate family rating could stabilize if year-over-year revenue declines show signs of reversing in FYE 7- 2011. Moody's last rating action on Dycom took place March 19, 2009, when the rating outlook was changed to negative from stable. Dycom Industries, Inc., located in Palm Beach Gardens, Florida, is a leading provider of specialty contracting services in North America. Dycom provides engineering, construction and maintenance services that assist telecommunication and cable television providers expand and monitor their network infrastructure in a cost effective manner. To a lesser extent, Dycom provides underground locating services for telephone, cable, power, gas, water, and sewer utilities. Dycom generated contract revenues of $1.0 billion for the twelve months ended January 24, 2010. EARLL URG: Case Summary & 17 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Earll Urg Commons-DE, LLC 3659 E. Thousand Oaks Blvd. Thousand Oaks, CA 91362 Bankruptcy Case No.: 10-13866 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Central District Of California (San Fernando Valley) Judge: Geraldine Mund Debtor's Counsel: M Jonathan Hayes, Esq. Law Office of M Jonathan Hayes 9700 Reseda Bl, Suite 201 Northridge, CA 91324 Tel: (818) 882-5600 Fax: (818) 882-5610 E-mail: jhayes@polarisnet.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb10-13866.pdf The petition was signed by Mark Kaufman, managing member. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Variel Commons-DE, LLC 10-11108 1/31/10 EAST YORK: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------- Debtor: East York, LLC fdba State Road 37, LLC dba Glenbrook Mobile Park LLC 4714 Parnell Avenue Fort Wayne, IN 46825 Bankruptcy Case No.: 10-11422 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Northern District of Indiana (Fort Wayne Division) Judge: Robert E. Grant Debtor's Counsel: Daniel J. Skekloff, Esq. E-mail: djs@sak-law.com Sarah Mustard Heil, Esq. E-mail: sheil@sak-law.com Scot T. Skekloff, Esq. E-mail: sts@sak-law.com Skekloff, Adelsperger & Kleven, LLP 927 South Harrison Street Fort Wayne, IN 46802 Tel: (260) 407-7000 Fax: (260) 407-7137 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 A list of the Company's 2 largest unsecured creditors is available for free at http://bankrupt.com/misc/innb10-11422.pdf The petition was signed by Christine Kotsopoulos, managing member. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Coliseum on Parnell, LLC 10-10405 2/15/10 EASTER PLANTATION: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Easter Plantation, LLC PO Box 2677 Brandon, FL 33509 Bankruptcy Case No.: 10-07890 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Judge: Caryl E. Delano Debtor's Counsel: Buddy D. Ford, Esq. 115 N. MacDill Avenue Tampa, FL 33609-1521 Tel: (813) 877-4669 Fax: (813) 877-5543 E-mail: Buddy@tampaesq.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Reed Fischbach, assistant manager. EIGEN INC: DIP Financing, Cash Collateral Use Gets Interim Nod -------------------------------------------------------------- Eigen, Inc., sought and obtained interim authorization from the Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware to obtain secured postpetition financing from Kazi Management VI, LLC, and to use cash collateral. The DIP lenders have committed to provide up to $3,300,000 in the form of a revolving credit line in respect of new money funding, of which $2,000,000 of new money will be available on an interim basis. Christopher A. Ward, Esq., at Polsinelli Shughart PC, the attorney for the Debtor, explains that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. The Debtor will use the money pursuant to a budget, a copy of which is available for free at: http://bankrupt.com/misc/EIGEN_budget.pdf The DIP facility will mature on (i) April 23, 2010, if the Court hasn't entered an order stabling procedures relating to the conducting of an auction in connection with the asset sale; (ii) June 4, 2010, if the Debtor hasn't entered into a written agreement for the sale of substantially all of its assets on terms and conditions which are acceptable to the Lender; (iii) June 11, 2010, if the Court hasn't entered an order approving the asset sale; or (iv) June 30, 2010, if the asset sale hasn't closed. The DIP facility will incur interest at a rate of 9%. There are no fees associated with the DIP Facility. The Debtors' obligations under the DIP facility are secured by all of the Debtor's assets. The DIP indebtedness will have the highest administrative priority and will have priority over all other costs and expenses of administration of any kind, and will at all times be senior to the rights of the Debtor, any successor trustee or estate representative in the Debtor's case or any successor cases. The DIP lien is subject to a carve-out of up to $280,000, less a reserve as the Lender may require for the carve-out for the payment of professional fees, U.S. Trustee fees, and other similar administrative costs. The Debtor also seeks authority from the Court to use the cash collateral. Mr. Ward says that the Debtor will also use the Cash Collateral to provide additional liquidity. The Lender is granted valid, binding, enforceable and perfected additional and replacement liens in all property of the Debtor's estate, including the DIP facility collateral. The Debtor will provide the Lender (i) a borrowing base certificate, along with a log of each of the daily disbursements and collections, by 5:00 p.m. (Eastern Time) on the 15th and 30th day of each month; and (ii) a comparison of the items in the Budget for the preceding period to the Debtor's actual performance that includes a narrative summary of any material variances from the Budet for the preceding two weeks, by 5:00 p.m. (Eastern Time). The Court has set a final hearing for May 7, 2010, at 9:30 a.m. on the Debtor's request to obtain DIP financing and use cash collateral. More information on the DIP financing is available for free at: http://bankrupt.com/misc/EIGEN_dipfinancing.pdf About Eigen Grass Valley, California-based Eigen, Inc., a.k.a. Eigen, LLC, develops tools for healthcare professionals. The Company filed for Chapter 11 bankruptcy protection on March 30, 2010 (Bankr. D. Del. Case No. 10-11061). Christopher A. Ward, Esq., at Polsinelli Shughart PC, assists the Company in its restructuring effort. In its petition, the Company estimated its assets and debts at $10,000,001 to $50 million. ELECTRICAL COMPONENTS: Gets Interim Nod to Obtain DIP Financing --------------------------------------------------------------- Electrical Components International, Inc. and its units sought and obtained interim authorization from the Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to obtain postpetition secured financing from a syndicate of lenders led by UBS AG, Stamford Branch, as administrative and collateral agent. The DIP lenders have committed to provide the Debtors delayed draw term loan facility in aggregate principal amount of up to $25 million. Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, the attorneys for the Debtors, explained that the Debtors need the money to pay transaction costs related to the closing of the DIP Loans, and thereafter financing their Chapter 11 case, pay suppliers and other parties. The Debtors will use the money pursuant to a budget, a copy of which is available for free at: http://bankrupt.com/misc/ELECTRICAL_COMPONENTS_budget.pdf The DIP facility will mature six months from the Commencement Date. At the Debtors' option, loans will bear interest based on the Base Rate or, so long as no event of default has occurred and is continuing, the London Interbank Offered Rate (LIBOR): (i) Interest calculated using the Base Rate option will be at the Base Rate plus the applicable Interest Margin per annum, calculated on the basis of the actual number of days elapsed in a year of 365 days and payable monthly in arrears. The Base Rate is defined as the higher of the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 1/2 of 1% and the prime commercial lending rate of UBS AG, as established from time to time at its Stamford Branch. There is a Base Rate floor of 3.0% per annum. (ii) Interest calculated at the LIBOR Rte option will be determined for periods to be selected by the Debtors of one, two or three months and will be at an annual rate equal to LIBOR for the corresponding deposits of U.S. dollars, plus the applicable Interest Margin. LIBOR will be determined by the postpetition agent at the start of each interest period and will be fixed through the period. Interest will be paid at the end of each Interest Period and will be calculated on the basis of the actual number of days elapsed in a year of 360 days. LIBOR will be adjusted for maximum statutory reserve requirements (if any). There is a LIBOR floor of 2.0% per annum. In the event of default, interest will accrue (i) on unpaid principal or interest on a any loan, at a rate of 2.0% per annum plus the rate otherwise applicable to the loan and (ii) in the case of any other unpaid amount, at a rate of 2.0% per annum plus the non-default interest rate then applicable to Base Rate loans under the financing. Default interest will be payable on demand. The DIP lien is subject to a carveout for U.S. Trustee and Clerk of Court fees; and up to $1,000,000 in fees payable to professional employed in the Debtors' case and the committee in pursuing actions challenging the DIP Lenders' lien. The Debtors are required to pay a host of fees the Postpetition Agent a commitment fee equal to 1.00% per annum on the average daily unused amount of each DIP commitment of the postpetition lender during the period from and including the date of the entry of the interim order but excluding the date on which the DIP commitment terminates. The Debtor will pay the Postpetition Agent an exit fee equal to 1.50% of the original aggregate DIP commitments of all of the postpetition lenders in respect of the DIP Loans, for the account of the lenders, due and payable on the Maturity Date. The Exit Fee is equal to 1.50% of $25,000,000. The Debtor will also pay the Postpetition Agent an arrangement fee, an agency fee and an upfront fee payable in the amounts and at times separately agreed upon between the Debtors and the Postpetition Agent. More information on the DIP financing is available for free at: http://bankrupt.com/misc/ELECTRICAL_COMPONENTS_dipfinancing.pdf The Agent and the lenders will receive (i) a super-priority administrative expense claim with priority over any and all administrative expenses and any and all other claims of any kind, and (ii) a first priority priming lien on and security interest in all of the right, title and interest of the postpetition loan parties in, to and under the pledged collateral. Messrs. Collins and Youngman said that the Debtors will also use the Cash Collateral to provide additional liquidity. In exchange for using cash collateral, the Debtors will grant prepetition first lien secured parties in the prepetition first lien collateral, replacement liens upon all the DIP collateral subject and subordinate only to the DIP Liens, the Carve-Out and the prepetition senior liens on all DIP Collateral. As additional adequate protection, the prepetition first lien secured parties will be entitled to allowed administrative priority claims for any diminution in value of the prepetition first lien collateral from and after the Commencement Date. The Debtors will, upon entry of the interim order, on a calendar monthly basis promptly pay in cash all accrued but unpaid reasonable costs and expenses of the prepetition first lien agent. The Debtors, in exchange for using cash collateral, will grant prepetition second lien secured parties replacement liens, subject and subordinate to the DIP liens, the first priority prepetition liens, the first lien adequate protection liens, the Carve-Out and the prepetition senior liens, on all DIP Collateral. As additional adequate protection to the prepetition second lien secured parties, the second lien secured parties will be entitled to allowed administrative expense priority claims. The Debtors will also promptly pay in cash all accrued but unpaid reasonable costs and expenses of the prepetition second lien agent. The Court has set a final hearing for April 27, 2010, at 4:00 p.m. (EDT) on the Debtor's request to obtain DIP financing and use Cash Collateral. About Electrical Components St. Louis, Missouri-based Electrical Components International, Inc. -- aka Whitehouse Acquisition Co.; Electrical Components International DE Holdings Co.; Wirekraft Employment Co.; Wire Harness Contractors, Inc.; Wire Harness Automotive, Inc.; Wire Harness Industries Inc.; and Wirekraft LLC -- designs, manufactures and markets wire harnesses and provides assembly services primarily for major white goods appliance manufacturers. The Company filed for Chapter 11 bankruptcy protection on March 30, 2010 (Bankr. D. Del. Case No. 10-11054). Stephen Youngman, Esq., at Weil, Gotshal & Manges LLP, assists the Company in its restructuring effort. Chun I. Jang, Esq., Paul N. Health, Esq., and Travis A. McRoberts, Esq., at Richards, Layton & Finger, P.A., are the Company's co- counsel. Epiq Bankruptcy Solutions is the Company's claims agent. In its petition, the Company estimated its assets and debts at $100,000,001 to $500 million. These affiliates of the Company filed separate Chapter 11 petitions: -- ECM Holding Company (Case No. 10-11055), with estimated assets and debts at $100 million to $500 million; -- FP-ECI Holdings Company (Case No. 10-11056); and -- Noma O.P., Inc. (Case No. 10-11057). EMPIRE PETROLEUM: Losses Prompt Going Concern Doubt --------------------------------------------------- Empire Petroleum Corporation filed on March 30, 2010, its annual report on Form 10-K for the year ended December 31, 2009. HoganTaylor LLP, in Tulsa, Okla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has been incurring significant losses since inception. The Company reported a net loss of $215,909 on $9,794 of revenue for 2009, compared with a net loss of $436,656 on $21,154 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $2,137,695 in assets, $44,783 of debts, and $2,092,912 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5f34 Tulsa, Okla.-based Empire Petroleum Corporation engages in the exploration and development of oil and gas interests in the United States. It holds working interests in oil and gas leases known as the Gabbs Valley Prospect in Nye and Mineral Counties, Nevada, and an option to purchase 2,630 net acres of oil and gas leases known as the South Okie Prospect in Natrona County, Wyoming. ENVIRONMENTAL POWER: Caturano & Company Raises Going Concern Doubt ------------------------------------------------------------------ Environmental Power Corporation filed on March 30, 2010, its annual report on Form 10-K for the year ended December 31, 2009. Caturano and Company, P.C., in Boston, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted of the Company's recurring losses from operations, its need to raise substantial additional capital and its current cash balance relative to obligations, contractual commitments, and corporate overhead requirements. The Company reported a net loss of $36.1 million on $4.7 million of revenue for 2009, compared with a net loss of $16.0 million on $2.9 million of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $42.7 million in assets, $52.1 million of debts, and $10.2 million of preferred stock, for a stockholders' deficit of $19.5 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5f09 Tarrytown, N.Y.-based Environmental Power Corporation is a developer, owner and operator of renewable energy production facilities. ERNST & YOUNG: Oversight Board Launches Probe on Lehman Role ------------------------------------------------------------ Charles Gasparino at FOX Business says pressure on accounting firm Ernst & Young continues to grow as an oversight board, created under the Sarbanes-Oxley accounting reform act of 1992, launches an investigation into the firm's role in Lehman Brothers' bankruptcy. FOX Business relates the Public Company Accounting Oversight Board, which can investigate and discipline public accounting firms, has launched an inquiry into Ernst & Young following the Lehman bankruptcy examiner's report that accused the firm of "professional malpractice" in its approval of a controversial accounting technique used by Lehman as it slid into insolvency. The technique known as Repo 105 helped mask the deteriorating nature of Lehman's balance sheet. FOX Business notes that the oversight's board inquiry is yet the latest investigation to hit Ernst & Young over its role as Lehman's auditor, which was highlighted in the report issued by Lehman bankruptcy examiner Anton Valukas last month. FOX Business relates the Securities and Exchange Commission and U.K. regulators are looking at Ernst & Young's activities. FOX Business says Charles Perkins, a spokesman for Ernst & Young, has vehemently denied that the firm has done anything wrong. He didn't return calls for comment. A spokeswoman for the oversight board had no comment, FOX Business says. Examiner's Report As reported by the Troubled Company Reporter, Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York unsealed on March 11, 2010, the 2,200-page report summarizing the results of the investigation conducted by Anton Valukas, the Court-appointed Chapter 11 examiner in the bankruptcy cases of Lehman Brothers. In summary, the Examiner noted that after Bear Stearns' demise in 2007, Lehman was widely considered to be the next bank that might fail, and investor and client confidence was eroding. He said Lehman pursued a number of strategies to avoid demise but to buy itself more time, to maintain that critical confidence, Lehman painted a misleading picture of its financial condition. At the end of the second quarter of 2008, as Lehman was forced to announce a quarterly loss of $2.8 billion -- resulting from a combination of write-downs on assets, sales of assets at losses, decreasing revenues, and losses on hedges -- it sought to cushion the bad news by trumpeting that it had significantly reduced its net leverage ratio to less than 12.5, that it had reduced the net assets on its balance sheet by $60 billion, and that it had a strong and robust liquidity pool. The Examiner, however, found that Lehman did not disclose that it had been using an accounting device, known within Lehman as "Repo 105," to manage its balance sheet -- by temporarily removing approximately $50 billion of assets from the balance sheet at the end of the first and second quarters of 2008. With Repo 105 transactions, Lehman's reported net leverage was 12.1 at the end of the second quarter of 2008; but if Lehman had used ordinary repos, net leverage would have to have been reported at 13.9. The Examiner also found that Lehman did not disclose its use -- or the significant magnitude of its use -- of Repo 105 to the U.S. Government, to the rating agencies, to its investors, or to its own Board of Directors. Lehman's auditors, Ernst & Young, were aware of this but did not question the company's use and nondisclosure of the Repo 105 accounting transactions, the Examiner revealed. As late as September 10, 2008, Lehman publicly announced that its liquidity pool was approximately $40 billion; but a substantial portion of that total was in fact encumbered or otherwise illiquid, the Examiner related. By September 12, two days after it publicly reported a $41 billion liquidity pool, the pool actually contained less than $2 billion of readily monetizable assets, he added. According to the report, "Lehman failed because it was unable to retain the confidence of its lenders and counterparties and because it did not have sufficient liquidity to meet its current obligations." The Examiner concluded that while certain of Lehman's risk decisions can be described in retrospect as poor judgment, they were within the business judgment rule and do not give rise to colorable claims against the senior officers who oversaw and certified misleading financial statements." The Examiner, however, found colorable claims against Richard Fuld, Jr., former chief executive officer of Lehman; Christopher O'Meara, former chief financial officer, controller and executive vice president; Erin Callan, former chief financial officer and global controller; and Ian Lowitt, co-chief administrator, in connection with their failure to disclose the use of the practice and against Ernst & Young for its failure to meet professional standards in connection with that lack of disclosure. The Examiner also found colorable claims against JPMorgan Chase and CitiBank in connection with modifications of guaranty agreements and demands for collateral in the final days of Lehman's existence. The demands for collateral by Lehman's Lenders had direct impact on Lehman's liquidity pool; Lehman's available liquidity is central to the question of why Lehman failed, he said. Mr. Valukas spent more than a year and $38 million to investigate the events surrounding Lehman's downfall. A 17-part copy of the Examiner Report is available for free at: http://bankrupt.com/misc/Volume1.pdf http://bankrupt.com/misc/Volume2.pdf http://bankrupt.com/misc/Volume3.pdf http://bankrupt.com/misc/Volume4.pdf http://bankrupt.com/misc/Volume5.pdf http://bankrupt.com/misc/Volume6.pdf http://bankrupt.com/misc/Volume7.pdf http://bankrupt.com/misc/Volume8.pdf http://bankrupt.com/misc/Volume9.pdf http://bankrupt.com/misc/Volume10.pdf http://bankrupt.com/misc/Volume11.pdf http://bankrupt.com/misc/Volume12.pdf http://bankrupt.com/misc/Volume13.pdf http://bankrupt.com/misc/Volume14.pdf http://bankrupt.com/misc/Volume15.pdf http://bankrupt.com/misc/Volume16.pdf http://bankrupt.com/misc/Volume17.pdf About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ESCADA AG: EUSA Seeking Approval of Plan Outline on April 29 ------------------------------------------------------------ Escada (USA) Inc., now known as EUSA Liquidation Inc., asks Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York, to approve the Disclosure Statement accompanying its Plan of Liquidation as containing "adequate information" within the meaning of Section 1125 of the Bankruptcy Code. The Disclosure Statement, delivered by the Debtor and the Official Committee of Unsecured Creditors as Plan proponents on March 26, 2010, provides information that is "reasonably practicable" to permit an "informed judgment" by creditors and interest holders entitled to vote on the Plan, Gerald C. Bender, Esq., at O'Melveny & Myers LLP, in New York, asserts. The Court will hold a hearing on April 29, 2010, at 10:00 a.m., prevailing Eastern Time, to consider approval of the Disclosure Statement. Deadline for filing objections is April 26. EUSA also seeks the Court's approval of uniform solicitation and tabulation procedures in relation to the confirmation process of its Chapter 11 Plan. The Debtor seeks to mail the Solicitation Packages no less than 28 days prior to the deadline to file objections to the confirmation of the Plan on June 1, 2010, to: -- all persons or entities that have filed Proofs of Claim on or before the Record Date, other than the Holders of the Note Guarantee Claims, as defined under the Plan; -- all persons or entities identified in the Debtor's schedules of assets and liabilities as holding liquidated, non-contingent and undisputed claims; -- all other known Holders of Claims against the Debtor as of the record date for determining the holders of stock, bonds, debentures, notes, and other securities entitled to receive the Solicitation Package; -- all parties-in-interest that have filed notices in accordance with Rule 2002 of the Federal Rules of Bankruptcy Procedure in the Debtor's case on or before the Voting Record Date; -- the United States Trustee; and -- all parties to executory contracts or unexpired leases with the Debtor, as reflected on the Debtor's books and records or the Schedules. The Debtor proposes that June 1, 2010 be set as the deadline for the Voting Classes to file their ballots on the Plan. The Debtor urges the Court to establish April 29, 2010, as the Record Date for purposes of determining which Creditors are entitled to receive Solicitation Packages and, where applicable, vote on the Plan. The Debtor proposes that the hearing to confirm the Plan be scheduled for June 7, 2010, at 10:00 a.m., prevailing Eastern Time, or as may be continued by the Court without further notice other than an announcement of the adjournment at the Confirmation Hearing or any continued hearing. Objections, if any, to the confirmation of the Plan must be filed with the Court and served on these parties no later than 5:00 p.m., Eastern Time, on June 1, 2010: * O'Melveny & Myers, LLP, counsel to the Debtor Times Square Tower, 7 Times Square, New York, New York 10036, Attn.: Gerald C. Bender, Esq. gbender@omm.com * the Office Of The United States Trustee Southern District Of New York 33 Whitehall Street, 21st Floor, New York, New York 10004 Attn.: Elisabetta G. Gasparini, Esq. Elisabetta.G.Gasparini@usdoj.gov * Otterbourg, Steindler, Houston & Rosen, P.C. counsel to the Official Committee of Unsecured Creditors 230 Park Avenue New York, New York 10169 Attn.: Melanie L. Cyganowski, Esq. mcyganowski@oshr.com Chapter 11 Liquidation Plan EUSA Liquidation, Inc., formerly known as Escada (USA) Inc., and the Official Committee of Unsecured Creditors, as plan proponents, submitted to the U.S. Bankruptcy Court for the Southern District of New York a Joint Chapter 11 Plan of Liquidation and accompanying Disclosure Statement dated March 26, 2010. The overall purpose of the Plan is to provide for the wind down and efficient liquidation of the Debtor in a manner designed to maximize the recovery to all creditor, Christian D. Marques, executive vice president, chief financial officer and treasurer of Escada (USA) Inc., relates. The Plan contemplates the establishment of a liquidating trust, to be executed through a Liquidating Trust Agreement by the Debtor and the Creditors' Committee. The Liquidating Trust will be established for the sole purpose of liquidating and distributing the Trust Assets, in accordance with Section 301.7701-4(d) of the Treasury Regulation under the Internal Revenue Service, with no objective to continue or engage in the conduct of a trade or business. Pursuant to Sections 1122 and 1123 of the Bankruptcy Code, proofs of claim or interest asserted in the Debtor's case are classified into these categories for the purpose of receiving distributions pursuant to the Plan: Class Description Status Voting Rights ------ ----------- ------ ------------- Unclassified Administrative Unimpaired Deemed to Expense Claims and accept Plan Priority Tax Claims 1 Priority Non-Tax Unimpaired Deemed to Claims accept Plan 2 Miscellaneous Unimpaired Deemed to Secured Claims accept Plan 3 Unsecured Claims Impaired Entitled to vote 4 Interests Impaired Deemed to reject Plan Estimated recoveries for Unclassified Claims and Claims under Classes 1 and 2 are estimated at 100%. Recovery for Class 3 Claims is unknown, while Class 4 Claims will have 0% recovery. Each Holder of an Administrative Expense Claim -- other than a Professional Fee Claim -- including any claim for substantial contribution, is required to file a proof of Administrative Expense Claim by (i) March 31, 2010, for Administrative Expense Claims arising on or after the Petition Date through and including January 14, 2010, and (ii) 30 days after the Plan Effective Date for Administrative Expense Claims arising on or after January 15, 2010. The Court has fixed April 29, 2010, as the time and date for the determination of persons who are entitled to receive a copy of the Disclosure Statement and all of the related materials and to vote whether to accept the Plan. A full-text copy of the Liquidation Plan is available at no charge at http://bankrupt.com/misc/Escada_LiquidationPlan.pdf A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/Escada_DisclosureStatement.pdf About Escada AG The ESCADA Group -- http://www.escada.com/-- is an international fashion group for women's apparel and accessories, which is active on the international luxury goods market. It has pursued a course of steady expansion since its founding in 1976 by Margaretha and Wolfgang Ley and today has 182 own shops and 225 franchise shops/corners in more than 60 countries. As of August 10, 2009, the Escada Group operated 176 owned stores and so-called shop in shops, of which 26 owned stores are located in the United States and operated by Escada (USA) Inc. and 2 stores are planned to be opened in the United States before year end. Escada Group products are also sold in 163 stores worldwide which are operated by franchisees. Escada Group had total assets of EUR322.2 million against total liabilities of EUR338.9 million as of April 30, 2009. Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008). Judge Stuart M. Bernstein handles the case. O'Melveny & Myers LLP has been tapped as bankruptcy counsel. Kurtzman Carson Consultants serves as claims and notice agent. Escada US listed US$50 million to US$100 million in assets and US$100 million to US$500 million in debts in its petition. Bankruptcy Creditors' Service, Inc., publishes Escada USA Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Escada USA, and the insolvency proceedings of ESCADA AG and its units. (http://bankrupt.com/newsstand/or 215/945-7000) ESCADA AG: U.S. Trustee Opposes EUSA's Plan Outline --------------------------------------------------- Diana G. Adams, the United States Trustee for Region 2, contends that the Debtor's Disclosure Statement should not be approved "because it does not adequately provide a legal justification for the release, discharge, and exculpation provisions that the Proponents seek to have approved upon confirmation of the [Chapter 11 Plan of Liquidation]." Representing the U.S. Trustee, Trial Attorney Elisabetta G. Gasparini, Esq., in New York, argues that the Disclosure Statement is unclear on what Allowed Unsecured Claims will recover under the Plan. She notes that the Plan only provides that "[e]ach Holder of an Allowed Unsecured Claim shall receive, in full satisfaction, settlement, release, extinguishment and discharge of such Claim, a Pro Rata Share of Available Cash by the Liquidating Trustee pursuant to the Plan and Liquidating Trust Agreement." Neither the Plan nor the Disclosure Statement is accompanied by a copy of the Liquidating Trust Agreement, she points out. Ms. Gasparini notes that both the Plan and the Disclosure Statement classify statutory fees payable as administrative expenses. However, the Plan contains some inconsistent language as to when those fees will be paid, she cites. The Disclosure Statement and the Plan should be amended, Ms. Gasparini contends, to clarify that postpetition interest on taxes entitled to priority under Section 503 of the Bankruptcy Code will be entitled to administrative expense status and should thus be deemed payable. The Disclosure Statement and the Plan, Ms. Gasparini continues, provide for a discharge of the Debtor against all claims or liabilities, which is inconsistent with Section 1141(d)(3) of the Bankruptcy Code. She notes that Section 1141(d)(3) does not entitle the Debtor to a discharge if (i) that plan is a liquidating plan, (ii) the Debtor will not be engaging in business after the consummation of the plan, and (iii) the Debtor would not be entitled to a discharge under Section 727(a) of the Bankruptcy Code. "There cannot be any disagreement that all three factors are present here; accordingly, the Debtor cannot be granted the discharge and parties cannot be enjoined from bringing causes of action for their Claims or interests against the Debtor. The Disclosure Statement should thus be modified to provide an explanation as to how the Debtor can receive a discharge in a liquidating case," Ms. Gasparini tells Judge Bernstein. The injunction and no-recourse provisions in the Disclosure Statement also provide for an injunction and release of non- debtor parties, including the Official Committee of Unsecured Creditors, the Liquidating Trustee, and all of their directors, officers, professionals and consultants, the U.S. Trustee notes. However, the Plan Proponents "have not provided a legal basis for the releases of the non-debtor third parties," Ms. Gasparini argues, citing Deutsche Bank AG v. Metromedia Fiber Network, Inc. (In re Metromedia Fiber Network, Inc.), 416 F. 3d 136, 141 (2d Cir. 2005). To the extent the Court allows for any release or injunction to either the Debtor or non-debtor third parties, language carving out Governmental Claims from the proposed releases should be included, Ms. Gasparini says. The Disclosure Statement and the Plan also contain conflicting provisions as to the treatment of U.S. Trustee quarterly fees Section 1930 of the Judiciary and Judicial Procedures Code, Ms. Gasparini maintains. Statutory fees are classified as administrative claims under the Proponents' Plan and Disclosure Statement. While the Disclosure Statement provides that those Fees will be paid on the Plan Effective Date, the Plan contains some contradictory language that indicates that "any unpaid UST fees will be paid within 30 days after the Effective Date," Ms. Gasparini points out. The Liquidating Trust Agreement contains salient terms, including the distribution to be made to Allowed Unsecured Creditors, the manner in which distributions will be made, and the compensation to be paid to Clingman & Hanger Management Associates, LLC, as the Liquidating Trustee, the U.S. Trustee points out. Thus, it should be filed well in advance of the Disclosure Statement hearing for the Court to take it into consideration and to give parties-in-interest an opportunity to review it, Ms. Gasparini says. "However, neither the Plan nor the Disclosure Statement is accompanied by a copy of the Liquidating Trust Agreement." Moreover, she adds, the Debtor did not provide a liquidation analysis "and it is not clear when it will be filed." The U.S. Trustee should also receive notice of the Liquidating Trust activities so as to ensure that she will be apprised of actions and events taking place in the Debtor's case even after confirmation of the Plan, Ms. Gasparini maintains. In addition, the Disclosure Statement and Plan provide that Clingman would be responsible to make the distributions contemplated under the Plan and Liquidating Trust Agreement. Neither the Plan nor the Disclosure Statement, however, provides that Clingman will be bonded, the U.S. Trustee cites. The U.S. Trustee takes the position that any party who will hold any cash reserve or funds on behalf of the creditors of a Debtor's estate "should obtain a bond for the full amount of any funds to be held by such party for the distribution to creditors, and agree to notify the Court and the U.S. Trustee before terminating any [that] [B]ond," Ms. Gasparini explains. Ms. Gasparini further avers that the Disclosure Statement should specify through a "satisfactory explanation" as to how the Debtor will dissolve and the basis for the automatic dissolution provided for in the Plan. Chapter 11 Liquidation Plan EUSA Liquidation, Inc., formerly known as Escada (USA) Inc., and the Official Committee of Unsecured Creditors, as plan proponents, submitted to the U.S. Bankruptcy Court for the Southern District of New York a Joint Chapter 11 Plan of Liquidation and accompanying Disclosure Statement dated March 26, 2010. The overall purpose of the Plan is to provide for the wind down and efficient liquidation of the Debtor in a manner designed to maximize the recovery to all creditor, Christian D. Marques, executive vice president, chief financial officer and treasurer of Escada (USA) Inc., relates. The Plan contemplates the establishment of a liquidating trust, to be executed through a Liquidating Trust Agreement by the Debtor and the Creditors' Committee. The Liquidating Trust will be established for the sole purpose of liquidating and distributing the Trust Assets, in accordance with Section 301.7701-4(d) of the Treasury Regulation under the Internal Revenue Service, with no objective to continue or engage in the conduct of a trade or business. Pursuant to Sections 1122 and 1123 of the Bankruptcy Code, proofs of claim or interest asserted in the Debtor's case are classified into these categories for the purpose of receiving distributions pursuant to the Plan: Class Description Status Voting Rights ------ ----------- ------ ------------- Unclassified Administrative Unimpaired Deemed to Expense Claims and accept Plan Priority Tax Claims 1 Priority Non-Tax Unimpaired Deemed to Claims accept Plan 2 Miscellaneous Unimpaired Deemed to Secured Claims accept Plan 3 Unsecured Claims Impaired Entitled to vote 4 Interests Impaired Deemed to reject Plan Estimated recoveries for Unclassified Claims and Claims under Classes 1 and 2 are estimated at 100%. Recovery for Class 3 Claims is unknown, while Class 4 Claims will have 0% recovery. Each Holder of an Administrative Expense Claim -- other than a Professional Fee Claim -- including any claim for substantial contribution, is required to file a proof of Administrative Expense Claim by (i) March 31, 2010, for Administrative Expense Claims arising on or after the Petition Date through and including January 14, 2010, and (ii) 30 days after the Plan Effective Date for Administrative Expense Claims arising on or after January 15, 2010. The Court has fixed April 29, 2010, as the time and date for the determination of persons who are entitled to receive a copy of the Disclosure Statement and all of the related materials and to vote whether to accept the Plan. A full-text copy of the Liquidation Plan is available at no charge at http://bankrupt.com/misc/Escada_LiquidationPlan.pdf A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/Escada_DisclosureStatement.pdf About Escada AG The ESCADA Group -- http://www.escada.com/-- is an international fashion group for women's apparel and accessories, which is active on the international luxury goods market. It has pursued a course of steady expansion since its founding in 1976 by Margaretha and Wolfgang Ley and today has 182 own shops and 225 franchise shops/corners in more than 60 countries. As of August 10, 2009, the Escada Group operated 176 owned stores and so-called shop in shops, of which 26 owned stores are located in the United States and operated by Escada (USA) Inc. and 2 stores are planned to be opened in the United States before year end. Escada Group products are also sold in 163 stores worldwide which are operated by franchisees. Escada Group had total assets of EUR322.2 million against total liabilities of EUR338.9 million as of April 30, 2009. Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008). Judge Stuart M. Bernstein handles the case. O'Melveny & Myers LLP has been tapped as bankruptcy counsel. Kurtzman Carson Consultants serves as claims and notice agent. Escada US listed US$50 million to US$100 million in assets and US$100 million to US$500 million in debts in its petition. Bankruptcy Creditors' Service, Inc., publishes Escada USA Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Escada USA, and the insolvency proceedings of ESCADA AG and its units. (http://bankrupt.com/newsstand/or 215/945-7000) FARLEY INC: Owner to Pay $7.8 Million to Settle PBGC Claims ----------------------------------------------------------- The New York Post reports that William Farley has agreed to pay the Pension Benefit Guaranty Corp. $7.8 million to settle claims he reneged on a 1992 commitment to support the pension funds of collapsed companies he owned. The Post says the settlement will end the PBGC's five-year quest to seize $150 million from Mr. Farley for allegedly enriching himself at the expense of funding pensions at his bankrupt conglomerate, Farley Inc. A lawyer for Farley declined to comment on the settlement. The Post recalls that Mr. Farley, using junk bonds packaged by Michael Milken, bought several companies that he combined to create the holding company that bore his name. Among those purchases was the 1985 deal for underwear giant Fruit of the Loom, which operated separately from Farley Inc. By 1991, Farley Inc., struggling under a mountain of debt, filed for bankruptcy, and the company's pension fund was suffering from a shortfall. The Post relates that Mr. Farley at the time personally pledged 2 million of 9.9 million Fruit of the Loom shares he owned to the PBGC, which guarantees corporate pension funds, to cover the shortfall. However, when Fruit of the Loom went bankrupt in 1999, a year after Mr. Farley was ousted, those shares became worthless. The Post further reports that according to the PBGC's claim, Mr. Farley took money out of the companies he owned "for the benefit of himself," while his firms were either "insolvent or at high risk of insolvency." The PBGC cited a $65 million loan that Mr. Farley got in 1999 just months before Fruit of the Loom filed for bankruptcy. The agency claimed Mr. Farley paid back the Fruit of the Loom loan using Farley Inc. funds that should have gone to those underfunded pensions. In addition, the PBGC charged that Mr. Farley and members of Farley Inc.'s administrative committee met in 2000 and allegedly decided "to escape its obligations under the PBGC Agreement" and "never make another contribution to the Pension Plan." FRASER PAPERS: Canada Court Gives Final Nod to Sale to Twin Rivers ------------------------------------------------------------------ Fraser Papers Inc. obtained final approval on April 6 from the Ontario Superior Court of Justice to complete the sale of its specialty papers business to Twin Rivers Paper Company Inc. At a hearing this afternoon in the United States Bankruptcy Court for the District of Delaware, the court approved recognition of the Canadian Court Order and the sale of the U.S. assets. Under the terms of the Transaction, the creditors of Fraser Papers will receive promissory notes and a 49% common equity interest in the purchaser, Twin Rivers. Brookfield Asset Management Inc., a secured creditor, has agreed to convert its secured claim against the Company into a 51% common equity interest in Twin Rivers and the Government of New Brunswick has agreed to convert its $35 million secured loan and accrued interest into preferred shares of Twin Rivers. The Company and Twin Rivers expect to close the Transaction within the next few weeks. The Company also disclosed that the Court has granted a further extension of the initial Order under which Fraser Papers was granted creditor protection under the Companies' Creditors Arrangement Act. This extension is through July 9, 2010 and was supported by PricewaterhouseCoopers Inc., the Court appointed Monitor of the Company's CCAA process. About Fraser Papers Fraser Papers -- http://www.fraserpapers.com/-- is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The Company has operations in New Brunswick, Maine, New Hampshire and Quebec. On June 18, 2009, citing continued operating losses, weak markets for pulp and lumber, impending debt repayments and significant pension funding obligations, the Company and its subsidiaries filed for protection under the Companies Creditors Arrangement Act (Ont. Super. Ct. J. Ct. File No. CV-09-8241-00CL) in Toronto and Chapter 15 (Bankr. D. Del. Case No. 09-12123) of the U.S. Bankruptcy Code. Fraser is represented by Michael Barrack, Esq., Robert I. Thornton, Esq., and D.J. Miller, Esq., at ThorntonGroutFinnigan LLP, in Toronto, and Derek C. Abbott, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Del. With adequate financing to support continuing operations, Fraser says it is developing a restructuring plan to present to its creditors -- hopefully by Oct. 16, 2009 -- with the objective of emerging with a sustainable and profitable specialty papers business. FREESCALE SEMICONDUCTOR: Moody's Assigns 'B2' Rating on Notes ------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to Freescale Semiconductor, Inc.'s proposed $750 million senior secured notes due 2018. The rating outlook is stable. Net proceeds are expected to be used to retire the remaining $472 million outstanding under the senior secured term loan B facility due 2013, and repay a portion of the $917 million senior secured incremental term loan due 2014. The assigned ratings are subject to review of final documentation and no material change in the terms and conditions of the transactions as advised to Moody's. Moody's expect to withdraw the ratings on the senior secured term loan B facility upon their full retirement. Moody's views constructively this latest refinancing and extension of Freescale's approximate $7.8 billion of LBO debt. In February, Freescale amended its credit agreement to extend the maturity date to 2016 on $2.265 billion of term loan B facility debt. Concurrently, the company issued $750 million 10.125% senior secured notes due 2018. Approximately $112 million was used to pay down a portion of the revolver to $532 million outstanding and $634 million was used to pay down the non-extended portion of the term loan B facility to $472 million. The current transaction, which eliminates the remaining 2013 maturity, will somewhat alleviate the concentration of debt maturing in 2014, given Freescale's inability to de-lever from internal sources. Following this refinancing, Freescale will have roughly $2.8 billion of debt due in 2014. The maturity extension also buys the company additional time to transform new product categories into meaningful contributors of profitable growth. Freescale's Caa1 CFR continues to be constrained by the company's substantial leverage and thin interest coverage, as well as Moody's expectation of very modest free cash flow generation relative to its large debt load. The CFR also reflects a significantly reduced earnings contribution from the company's cellular segment, offset by modest earnings from Freescale's recent entr�e into higher growth sub-segments within consumer and industrial markets. Since Freescale is exposed to the inherently cyclical and volatile semiconductor industry, Moody's are concerned that Freescale's highly leveraged capital structure may prove unsustainable if cash flows were to deteriorate for an extended period. The rating is supported by Freescale's strong market leadership positions and rich product portfolio characterized by technological breadth; its somewhat favorable revenue diversification across products, geographies and customers; its refocused R&D program to drive future revenue growth in extended market segments; and its "asset-light" model that allows it to reduce expenses and capex in response to weak market conditions. The stable rating outlook reflects Moody's expectation that after a severe downturn in profits and cash flow caused by the recession, the company's operating performance will continue to improve as a result of the recovery in the global demand environment and Freescale's progress in eliminating $700 million of annualized costs (full $800 million cost savings expected during 2010). The stable outlook incorporates Moody's belief that semiconductor end market demand will demonstrate growth in 2010 and Freescale's revenue growth will be in line with its addressable markets. Freescale's liquidity is adequate as reflected in its SGL-3 speculative grade liquidity rating. The liquidity assessment is principally driven by the company's $1.4 billion of cash balances given that over the next four quarters, Moody's expect Freescale to generate very modest FCF relative to its large debt load. Despite no financial covenants, financial flexibility remains diminished, in Moody's opinion, since the company has drawn $532 million under its revolver, which has a committed capacity of $578 million. This new rating and assessment was assigned: -- $750 Million Senior Secured Notes due 2018 - B2 (LGD-3, 30%) This rating will be withdrawn upon retirement: -- $472 Million (originally $3.5 Billion) Senior Secured Term Loan B Facility due 2013 - B2 (LGD-3, 30%) The last rating action was on February 4, 2010, when Moody's affirmed Freescale's Caa1 CFR and assigned a B2 rating to the company's $2.265 billion senior secured extended term loan due 2016 and $750 million 10.125% senior secured notes due 2018. Headquartered in Austin, TX, Freescale Semiconductor, Inc., designs and manufactures embedded semiconductors for the transportation, networking and wireless markets. The company was separated from Motorola via IPO in July 2004 and taken private in a leveraged buyout in December 2006. Revenues for the twelve months ended December 31, 2009, were $3.5 billion. FREESCALE SEMICONDUCTOR: S&P Puts 'B-' Rating on $750 Mil. Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'B-' rating to Freescale Semiconductor Inc.'s $750 million new senior secured notes due 2018. The recovery rating is '4', indicating the expectation for average (30%-50%) recovery in the event of a payment default. The 'B-' corporate credit rating and stable outlook on the company remain unchanged. Rating List Freescale Semiconductor Inc. Corporate credit rating B-/Stable/-- New Rating $750 million sr sec notes due 2018 B- Recovery rating 4 G.E. HOSPITALITY: Case Summary & 9 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: G.E. Hospitality, LLC dba Hawthorn Suites of Valdosta 4025 Northlake Drive Valdosta, GA 31602 Bankruptcy Case No.: 10-70529 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Middle District of Georgia (Valdosta) Debtor's Counsel: Thomas D. Lovett, Esq. Kelley, Lovett, & Blakey, P.C. P.O. Box 1164 2912-B North Oak Street Valdosta, GA 31603-1164 Tel: (229) 242-8838 Fax: (229) 242-1151 E-mail: rbush@kelleylovett.com Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 According to the schedules, the Debtor said that it has $2,502,402 in assets against debts of $8,858,056. A list of the Company's 9 largest unsecured creditors is available for free at http://bankrupt.com/misc/gamb10-70529.pdf The petition was signed by Gerald Evans, Sr., co-owner. GEMS TV: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------ Debtor: Gems TV (USA) Limited aka Gems TV 1190 Trademark Drive, Suite 107 Reno, NV 89521 Bankruptcy Case No.: 10-11158 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court District of Delaware (Delaware) Judge: Peter J. Walsh About the Business: Reno, Nevada-based Gems TV (USA) is a television retailer of gemstone jewelry products. Its parent is Gems TV Holdings Ltd., which owns and operates jewelry home shopping TV channels in the U.S., U.K. and Japan. Debtor's Counsel: Robert S. Brady, Esq. Robert F. Poppiti, Jr., Esq. Young, Conaway, Stargatt & Taylor The Brandywine Bldg. 1000 West Street, 17th Floor, PO Box 391 Wilmington, DE 19899-0391 Tel: 302-571-6600 Fax: 302-571-1253 E-mail: bankfilings@ycst.com Debtor's Fin'l Advisor: Focus Management Group Debtor's Claims & Notice Agent: Epiq Bankruptcy Solutions Inc. Estimated Assets: $10,000,000 to $50,000,000 Estimated Debts: $100,000,000 to $500,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/deb10-11158.pdf The petition was signed by Diane Schneiderjohn, president. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bh.H. Multi Com Corp. Trade - Inventory $200,820,224 15 West 46th Street New York, New York 10036 Tel: (212) 944-0020 Fax: (212) 921-7796 DirecTV Broadcast Fees $2,672,237 2230 East Imperial Hwy El Segundo, California 90245 Tel: (310) 964-4706 Fax: (310) 954-4991 Creative Gems & Jewelry Trade - Inventory $2,029,991 Public Co. Ltd. 20/11 Sol Anamai-Ngamcharoen 31 Rama UU Rd, Ta-Kham Bangkhuntien Bangkok 10150 Thailand Tel: (66) 2417-9348 Fax: (66) 2867-2958 Emerald House Co. (HK) Trade - Inventory $1,414,155 M20 2nd Floor Kaiser Estate Phase 3 11 Hok Yuen Street, Hung Hom Kowloon Hong Kong Tel: (852) 2367-3581 Fax: (852) 2367-3582 M/S Charisma Jewellry PV Trade - Inventory $1,388,238 Unit No. 004, Multistoried Building Seepz, SEZ Andheri (East) Mumbai India 400 096 Tel: (91) 22-2829-0919 Fax: (91) 22-2829-0920 Prism (USA) Inc. Trade - Inventory $1,258,933 570 5th Avenue Suite #601 New York, NY 10036 Tel: (212) 596-4163 Fax: (212) 596-4219 Tiger Jewellery Trade - Inventory $939,343 Manufacturing Co., Ltd. 285/2 Ladya ROad Somdetjaopraya, Khlogsan Bankgkok Thailand 10600 Tel: (66) 2890-0112 Fax: (66) 2890-0113 Galassia Company, Ltd. Trade - Inventory $652,209 Room 615, 6/FL., Hollywood Plaza 610 Nathan Road, Mongkok Kowloon Hong Kong Tel: (852) 2301-3077 Fax: (852) 2301-2226 Jewelry Creations Ltd. Trade - Inventory $456,704 Room 615. 6/FL., Hollywood Plaza 610 Nathan Road, Mongkok Kowloon Hong Kong Tel: (852) 2301-3077 Fax: (852) 2301-2226 Thai Jewelry Trade - Inventory $439,250 Manufactuer Co., Ltd. 620/74-75 Sathupradit 44 Yannawa Bangkok Thailand 10120 Tel: (66) 2294-0020 Fax: (66) 2295-3997 Gemini Creation Co. Ltd Trade - Inventory $403,053 2210/10 CHan Road Chongnonsee Yannawa Bangkok Thailand 10120 Tel: (66) 2678-2644 Fax: (66) 2678-2646 UPS Trade - Shipping $393,585 UPS Professional Services, Inc. 55 Glenlake Parkway, NE Atlanta, GA 30328 Tel: (404) 828-6000 Fax: (404) 828-6912 Legend Silver Jewellery Trade - Inventory $365,578 & Watch MFY Unit 804, 8/F Heng Ngai Jewellery Centre 4 Hok Yuen St. E. Hung Horn Kowloon Hong KOng Tel: (852) 2764-3377 Fax: (852) 2363-8737 Nanjan Co. Ltd. Trade - Inventory $352,225 177/1 Unit 4, 12th Floor Bangkok Union Insurance Bldg. Suriyawongse Rd. Bangrak Bangkok Thailand 10500 Tel: (66) 2634-7064 Fax: (66) 2634-7068 M/S Royal Classic Trade - Inventory $332,881 Jewels Pvt. Ltd. 4794 K.G.B. KA Rasta Johari Bazar Jaipur India 302 003 Tel: (91) 141-257-5439 Fax: (91) 141-257-4343 ColorJewels Trade - Inventory $267,525 501, 5/F Harbour Center Tower 2 8 Hok Cheung Street, Hung Hom Kowloon Hong KOng Tel: (852) 2724-1273 Fax: (852) 2367-5543 Miranda Group Co. Ltd. Trade - Inventory $262,502 Unit H1, 1/F Kaiser Est., 2nd Phase 47-43 Man Yue Street 20-28 Man Lok Street, Hung Hom Kowloon Hong KOng Tel: (852) 2365-7708 Fax: (852) 2365-0760 Keen Jade Ltd. Trade - Inventory $239,632 Dragon Bay Jewellery Trade - Inventory $229,179 Jintai Chituan Trade - Inventory $227,096 (Thailand) Co., Ltd. GENERIC DRUG: Moody's Assigns 'B2' Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service assigned first-time ratings to Generic Drug Holdings, Inc., d/b/a The Harvard Drug Group, L.L.C., including a B2 Corporate Family Rating and a B2 Probability of Default Rating. The entities are collectively referred to as "Harvard Drug Group." Moody's also assigned a rating of B1 to the company's first-lien senior secured credit facilities. The rating outlook is stable. The ratings are being assigned in conjunction with the leveraged buyout of the company by Court Square Capital Partners, a private equity firm. Sources of funding for the transaction and other expenses include new first-lien bank borrows of approximately $162 million, mezzanine funding of $65 million, and new equity of $183 million. Moody's views favorably the sponsor equity contribution representing nearly one-half of the purchase price. The B2 Corporate Family Rating is constrained by the company's small size and market share in the drug distribution industry and its relatively high financial leverage. Pro forma Debt/EBITDA amounts to roughly 4.7 times, based on Moody's calculations. These risks are offset by a diverse business model that also includes an institutional segment (Major Pharmaceuticals), significant customer and vendor diversity, and a good growth outlook for generic pharmaceutical utilization. Harvard's financial performance has been steady to date and Moody's believe under most scenarios good performance should continue. Nonetheless, the drug distribution industry remains extremely competitive and it is difficult to fully rule out scenarios in which competitive pressures or other industry dynamics pressure the company's long-term financial performance. The B1 rating on the secured credit facilities reflects the senior position in the capital structure relative to the mezzanine tranche. Ratings assigned: Generic Drug Holdings, Inc. -- * B2 Corporate Family Rating * B2 Probability of Default Rating * B1 (LGD3, 37%) senior secured first lien revolving credit facility due 2015 * B1 (LGD3, 37%) senior secured first lien term loan due 2016 * B1 (LGD3, 37%) senior secured first lien delayed draw term loan due 2016 This is Moody's first rating action on Generic Drug Holdings, Inc. Generic Drug Holdings, Inc.'s ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record of tolerance for risk. These attributes were compared against other issuers both within and outside of Generic Drug Holdings, Inc.'s core industry and Generic Drug Holdings, Inc.'s ratings are believed to be comparable to those other issuers of similar credit risk. Headquartered in Livonia, Michigan, Generic Drug Holdings, Inc., through its subsidiary The Harvard Drug Group, L.L.C., is a distributor of branded and generic pharmaceutical products, over- the-counter products, respiratory medicines and compounding supplies. The company is privately-owned by Court Square Capital Partners. In 2009, the company reported net revenues of approximately $462 million. GLOBAL GEOPHYSICAL: S&P Assigns 'B' Rating on $200 Mil. Notes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' issue-level rating (the same as the corporate credit rating on the company) to Global Geophysical Services Inc.'s new $200 million senior unsecured notes due 2017. In addition, S&P assigned a recovery rating of '4' to this debt, indicating expectations of average (30%-50%) recovery in a payment default. Global Geophysical will use proceeds from the new notes and IPO to repay its term loans and for general corporate purposes. Following the notes offering with the notes offering the company will also enter into a new $40 million-$50 million revolving credit facility. The corporate credit rating on Global Geophysical is 'B' and the outlook is stable. The ratings on Global Geophysical Services Inc. reflect the company's participation in the cyclical land seismic acquisition business, its small size, and cash flow volatility as it is exposed to the budgets of exploration and production (E&P) companies. The ratings also incorporate the company's backlog of data-acquisition projects, its performance through 2009, and its experienced management team. Rating List Global Geophysical Services Inc. Corporate Credit Rating B/Stable/-- Rating Assigned Global Geophysical Services Inc. $200 Mil. Sr Unsec. Notes Due 2017 B Recovery Rating 4 GOODING'S SUPERMARKETS: Files for Chapter 11 Bankruptcy Again ------------------------------------------------------------- Sandra Pedicini at Orlando Sentinel reports that Gooding's Supermarkets filed for Chapter 11 bankruptcy protection, saying the Company owes landlord Teachers Insurance and Annuity Association more than $200,000 in rent, and unsecured creditors about $700,000 in debt. The Association had sought to evict the Company in the state Circuit Court in Orlando. About Gooding's Headquartered in Orlando, Florida, Gooding's Supermarkets, Inc., dba Gooding's, offers catering services and operates a chain of supermarkets in Central Florida. The Company first filed for Chapter 11 protection on December 30, 2005 (Bankr. M.D. Fla. Case No. 05-17769). GOODING'S SUPERMARKETS: Case Summary & 20 Largest Unsec. Creditors ------------------------------------------------------------------ Debtor: Gooding's Supermarkets, Inc 12521 SR 535 Lake Buena Vista, FL 32836 Bankruptcy Case No.: 10-05649 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: R. Scott Shuker, Esq. Latham Shuker Eden & Beaudine LLP Post Office Box 3353 Orlando, FL 32802 Tel: (407) 481-5800 Fax: (407) 481-5801 E-mail: bankruptcynotice@lseblaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb10-05649.pdf The petition was signed by Jonathan Gooding, CEO. GRACE WU: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Grace E. Wu, DDS, P.C. fka Grace Wu DDS LLC dba Radiant Smiles Dental 587 Virginia Avenue NE, Suite 5 Atlanta, GA 30306 Bankruptcy Case No.: 10-69617 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Leon S. Jones, Esq. Jones & Walden, LLC 21 Eighth Street, NE Atlanta, GA 30309 Tel: (404) 564-9300 Fax: (404) 564-9301 E-mail: ljones@joneswalden.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ganb10-69617.pdf The petition was signed by Grace E. Wu. GRAND CAY: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Grand Cay Harbour, Ltd. 3118 FM 528, No. 115 Webster, TX 77598 Bankruptcy Case No.: 10-80204 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Texas (Galveston) Judge: Letitia Z. Paul Debtor's Counsel: Leonard H Simon, Esq. Pendergraft & Simon L.L.P. 2777 Allen Parkway, Suite 800 Houston, TX 77019 Tel: (713) 737-8207 Fax: (832) 202-2810 E-mail: lsimon@pendergraftsimon.com Estimated Assets: $0 to $50,000 Estimated Debts: $10,000,000 to $50,000,000 A list of the Company's 3 largest unsecured creditors is available for free at: http://bankrupt.com/misc/txsb10-80204.pdf The petition was signed by Tom W. Moughon, president of GP, Dollar Cay Dev, Inc. GRAY TELEVISION: Amalgamated Gadget Holds 4.6% of Common Stock -------------------------------------------------------------- Amalgamated Gadget, L.P., disclosed that as of December 31, 2009, it may be deemed to beneficially own 1,960,744 shares or roughly 4.6% of the common stock of Gray Television, Inc. The shares were purchased by Amalgamated Gadget for and on behalf of R2 Investments, LDC, pursuant to an Investment Management Agreement. Pursuant to the Agreement, Amalgamated Gadget has sole voting and dispositive power over the shares and R2 has no beneficial ownership of the shares. Headquartered in Atlanta, Georgia, Gray Television, Inc., operates 36 primary television stations serving 30 mid-sized markets. The company's total revenues were approximately $270 million for the year ended December 31, 2009. * * * As reported by the Troubled Company Reporter on April 6, 2010, Moody's Investors Service said Gray Television's amendment to its credit agreement does not affect the company's Caa1 Corporate Family Rating, Caa2 Probability of Default Rating, SGL-4 speculative grade liquidity rating or its rating outlook which is negative. Moody's last rating on action Gray occurred on April 1, 2009, when it lowered the company's CFR to Caa1 from B3, PDR to Caa2 from Caa1, and senior secured credit facility rating to Caa1 from B3. GRAY TELEVISION: Dimensional Fund Holds 6.09% of Common Stock ------------------------------------------------------------- Dimensional Fund Advisors LP disclosed that as of December 31, 2009, it may be deemed to beneficially own 2,612,833 shares or roughly 6.09% of the common stock of Gray Television, Inc. Dimensional Fund Advisors LP is an investment adviser registered under Section 203 of the Investment Advisors Act of 1940. It furnishes investment advice to four investment companies registered under the Investment Company Act of 1940, and serves as investment manager to certain other commingled group trusts and separate accounts. Headquartered in Atlanta, Georgia, Gray Television, Inc., operates 36 primary television stations serving 30 mid-sized markets. The company's total revenues were approximately $270 million for the year ended December 31, 2009. * * * As reported by the Troubled Company Reporter on April 6, 2010, Moody's Investors Service said Gray Television's amendment to its credit agreement does not affect the company's Caa1 Corporate Family Rating, Caa2 Probability of Default Rating, SGL-4 speculative grade liquidity rating or its rating outlook which is negative. Moody's last rating on action Gray occurred on April 1, 2009, when it lowered the company's CFR to Caa1 from B3, PDR to Caa2 from Caa1, and senior secured credit facility rating to Caa1 from B3. GRAY TELEVISION: Highland Capital Holds 0.01% of Common Stock ------------------------------------------------------------- Highland Capital Management, L.P.; Strand Advisors, Inc.; James D. Dondero; and Highland Credit Strategies Fund disclosed that as of December 31, 2009, they may be deemed to beneficially own 63,400 shares or roughly 0.01% of the common stock of Gray Television, Inc. Highland Capital principally serves as an investment adviser or manager to other persons, including Credit Strategies. Strand serves as the general partner of Highland Capital. Mr. Dondero is the President and a director of Strand. Headquartered in Atlanta, Georgia, Gray Television, Inc., operates 36 primary television stations serving 30 mid-sized markets. The company's total revenues were approximately $270 million for the year ended December 31, 2009. * * * As reported by the Troubled Company Reporter on April 6, 2010, Moody's Investors Service said Gray Television's amendment to its credit agreement does not affect the company's Caa1 Corporate Family Rating, Caa2 Probability of Default Rating, SGL-4 speculative grade liquidity rating or its rating outlook which is negative. Moody's last rating on action Gray occurred on April 1, 2009, when it lowered the company's CFR to Caa1 from B3, PDR to Caa2 from Caa1, and senior secured credit facility rating to Caa1 from B3. GRAY TELEVISION: Posts Net Loss for 3rd Consecutive Year -------------------------------------------------------- Gray Television, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K for the year ended December 31, 2009. Gray Television reported a net loss for the third consecutive year. Net loss available to common stockholders was $40,166,000 for 2009, from a net loss of $208,609,000 for 2008 and $24,777,000 for 2007. Revenues less agency commissions were $270,374,000 for 2009 from $327,176,000 for 2008 and $307,288,000 for 2007. For the three months ended December 31, 2009, net loss available to common stockholders was $6,509,000 for 2009 from $209,326,000 for 2008. Revenues less agency commissions for the 2009 fourth quarter were $77,517,000, down 18% from $94,803,000 in 2008. At December 31, 2009, the Company had total assets of $1,245,739,000 against total liabilities of $1,058,733,000, resulting in stockholders' equity of $93,620,000. At December 31, 2008, stockholders' equity was $117,107,000. A full-text copy of the Company's annual report on Form 10-K is available at no charge at http://ResearchArchives.com/t/s?5eff In a news statement, Gray said it currently believes its first quarter 2010 local revenue, excluding political revenue, will increase from 2009 by approximately 11%. Gray currently believes its first quarter 2010 national revenue, excluding political revenue, will increase from 2009 by approximately 8%. Gray anticipates its first quarter 2010 Internet revenue will increase from 2009 by approximately 15%. Gray anticipates its first quarter 2010 political advertising revenue will increase to $2.8 million. Gray anticipates its retransmission consent revenues during the first quarter of 2010 will increase approximately $900,000, to a total of approximately $4.5 million, reflecting the successful retransmission negotiations concluded in 2009 and the first quarter of 2010. Gray estimates its consulting revenue will increase to $600,000 for the first quarter of 2010. The anticipated increase in broadcast operating expense for the first quarter 2010 compared to the first quarter of 2009 is due primarily to anticipated increases in base compensation expense, commissions associated with higher anticipated revenue and pension expense. The anticipated decrease in corporate expense for the first quarter of 2010 compared to the first quarter of 2009 is due primarily to an expected decrease in relocation and legal expenses. A full-text copy of the Company's earnings release is available at no charge at http://ResearchArchives.com/t/s?5f00 Gray filed its 10-K report on April 7, 2010, seven days after informing the SEC the report would be delayed. Gray blamed the delay on its discussions with lenders on possible modifications to the terms of its credit facility. Based upon certain internal financial projections, Gray did not believe that it would be in compliance with its total net leverage ratio as of March 31, 2010, unless it further amended the terms of its senior credit facility. As a result, Gray requested and obtained such an amendment of its senior credit facility on March 31, 2010. Effective as of March 31, 2010, Gray amended its senior credit facility with a consortium of lenders led by Wells Fargo Bank, N.A., as successor by merger to Wachovia Bank, National Association, as administrative agent. The Amendment provides for, among other things, (i) an increase in the maximum total net leverage ratio covenant under the Credit Agreement through March 30, 2011, and (ii) a potential issuance of capital stock or senior or subordinated debt securities, which could include securities with a second lien security interest. The Amendment also provides for a reduction in the revolving loan commitment under the senior credit facility from $50.0 million to $40.0 million. From March 31, 2010, until the date the Company completes an offering of Replacement Debt resulting in the repayment of not less than $200 million of the Company's term loan outstanding under the Credit Agreement, (i) the Company is required to pay an annual incentive fee equal to 2.0%, which fee will be eliminated upon the consummation of such offering and repayment, (ii) the annual facility fee will remain at 3.0%, which fee will, following such repayment, be reduced to 1.25% per year, with a potential for further reductions in future periods, and (iii) the Company will remain subject to a maximum total net leverage ratio, which will, following such repayment, be replaced by a first lien leverage test. In addition, from and after such repayment, the Company will be required to comply with a minimum fixed charge coverage ratio of 0.90x to 1.0x. Upon the completion of an offering of Replacement Debt that results in the repayment of not less than $200 million of the Company's term loan outstanding under the Credit Agreement, the Company will, from the date of such repayment, be subject to a maximum first lien leverage ratio covenant, which will replace the Company's current maximum total leverage ratio covenant. The covenant will range from 7.5x to 6.5x, depending upon the amount of any such repayment. The use of proceeds from any issuance of Replacement Debt will generally be limited to the repayment of amounts outstanding under the term loan under the Credit Agreement and, in certain circumstances, to the repurchase of outstanding shares of the Company's Series D Perpetual Preferred Stock. The Company cannot provide any assurances that such a sale of Replacement Debt, or any repurchase of such preferred stock, will be completed by the Company, or of the terms or timing thereof. Beginning April 30, 2010 and thereafter, all interest and fees accrued under the Credit Agreement will be payable in cash upon their respective due dates, with no portion of such accrued interest and fees being subject to deferral. Additional discussions on the Amendment are available at no charge at http://ResearchArchives.com/t/s?5f01 Headquartered in Atlanta, Georgia, Gray Television, Inc., operates 36 primary television stations serving 30 mid-sized markets. The company's total revenues were approximately $270 million for the year ended December 31, 2009. * * * As reported by the Troubled Company Reporter on April 6, 2010, Moody's Investors Service said Gray Television's amendment to its credit agreement does not affect the company's Caa1 Corporate Family Rating, Caa2 Probability of Default Rating, SGL-4 speculative grade liquidity rating or its rating outlook which is negative. Moody's last rating on action Gray occurred on April 1, 2009, when it lowered the company's CFR to Caa1 from B3, PDR to Caa2 from Caa1, and senior secured credit facility rating to Caa1 from B3. GREATER GERMANTOWN HOUSING: Chapter 11 Case Summary --------------------------------------------------- Debtor: Greater Germantown Housing Development Corporation 5538 Wayne Ave Philadelphia, PA 19144 Bankruptcy Case No.: 10-12614 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Eastern District of Pennsylvania (Philadelphia) Judge: Chief Judge Stephen Raslavich Debtor's Counsel: Thomas Daniel Bielli, Esq. Ciardi Ciardi & Astin, P.C. One Commerce Square 2005 Market Street, Suite 1930 Philadelphia, PA 19103 Tel: (215) 557-3550 Fax: (215) 557-3551 E-mail: tbielli@ciardilaw.com Estimated Assets: $10,000,000 to $50,000,000 Estimated Debts: $10,000,000 to $50,000,000 The petition was signed by Emanuel V. Freeman, president. HAEMACURE CORPORATION: Angiotech Closes Purchase Some Assets ------------------------------------------------------------ Angiotech Pharmaceuticals, Inc., closed its acquisition of certain product candidates and technology assets of Haemacure Corporation. Haemacure has been involved in proceedings under Canada's Bankruptcy and Insolvency Act and Chapter 11 of the United States Bankruptcy Code. Through an asset sale transaction, Angiotech has acquired all of the relevant research and development activities, manufacturing operations, key personnel, and intellectual property rights necessary to pursue the commercialization of Haemacure's human biomaterial product candidates, namely fibrin sealant and thrombin hemostat. The proprietary fibrin sealant is made of two human plasma proteins, fibrinogen and thrombin, which are extracted from human blood plasma through a proprietary, high-yield, low-cost extraction manufacturing process. The surgical sealant and hemostat market is estimated to be in excess of $500 million annually in the U.S. The acquired fibrin sealant and thrombin hemostat product candidates have applications in a wide array of surgical specialties, including general and abdominal surgery, cardiothoracic and vascular surgery, gynecology and urology surgery and reconstructive and plastic surgery. In addition, Angiotech believes that these biomaterials may be effective drug delivery vehicles. "We took an important step today by adding new technologies that will provide multiple new product candidates for our surgical business. We now have the capability to develop, manufacture and commercialize fibrin sealant, fibrinogen and thrombin-based biomaterials as competitive and compelling stand alone products, and the ability to develop drug-loaded versions of these biomaterials without relying on external suppliers," said Dr. William Hunter, President and CEO of Angiotech. "With these biologics assets and our proprietary Quill(TM) SRS product line, we believe we have formed a surgical franchise that can provide innovative products for patients and our physician customers, as well as strong revenue growth, for many years to come." Prior to its acquisition, the fibrin sealant has been studied in several clinical trials. Thus far clinical data have demonstrated the fibrin sealant is well tolerated in patients. Efficacy data has shown the fibrin sealant has potential as a hemostatic agent. As a result of the change of manufacturing facilities for these product candidates, additional phase III clinical testing will be required by the FDA. In June 2009, Angiotech provided Haemacure a US$2.5 million senior secured bridge loan as part of a collaboration that provided Angiotech with certain technology and product distribution rights. On January 11, 2010, Haemacure announced that it had filed a notice of intention to make a proposal to its creditors under the Bankruptcy and Insolvency Act (Canada), and that its wholly-owned U.S. subsidiary sought court protection under Chapter 11 of the Bankruptcy Code in the U.S. On March 22, 2010, Haemacure announced that it had obtained authorization from the Superior Court of the Province of Quebec to sell its assets to Angiotech and that the U.S. Bankruptcy Court had authorized the sale to Angiotech of the assets of Haemacure's U.S. subsidiary. At closing, Angiotech estimates that it will have funded approximately US$1.5 million in additional transaction-related expenses, which include the funding of Haemacure's insolvency proceedings and day-to-day operations, legal fees and expenses. Angiotech expects that modest additional expenditures for research and development may be required in 2010, depending upon final decisions as to product development timelines and the operations and personnel of Haemacure's manufacturing facility. These potential expenditures are not expected to materially impact Angiotech's liquidity position and capital resources in 2010. Additional information regarding the impact of this transaction, and Angiotech's future plans regarding its liquidity position and capital resources, will be provided upon the release of our first quarter financial results in early May 2010. About Haemacure Corporation Haemacure Corporation -- http://www.haemacure.com/en/-- is a Canada-based company. It is a bio-therapeutics company developing human therapeutic proteins for commercialization. The Company's two human plasma-based products are: Hemaseel HMN, a fibrin sealant, and Hemaseel Thrombin, an active, absorbable haemostatic agent, which is in the preclinical stage. Fibrin sealant has application in hemostasis adhesion and wound healing, adhesion prevention, aesthetics, combination with biomaterials, drug delivery, regenerative medicine and skin graft fixation for burn injuries. The Company also sells two fibrin sealant delivery devices under the trademarks HemaMyst, which is a double-syringe applicator, and HemaSyst, which is an aerosol application system. The Company's wholly owned subsidiary is Haemacure U.S. * * * As reported in the Troubled Company Reporter on February 8, 2010, Haemacure Corporation has obtained a first extension until March 22, 2010, of the delay within which to make a proposal pursuant to the notice of intention to make a proposal to its creditors it filed on January 8, 2010, under the Bankruptcy and Insolvency Act (Canada). This extension is intended to allow Haemacure to complete a call for tenders for the sale of its assets, close a sale transaction with the successful tenderer, seek the required approvals for the transaction and proposal to creditors, and execute the proposal. HAWAIIAN TELCOM: Files Registration to Become Publicly Traded ------------------------------------------------------------- Hawaiian Telcom filed a Form 10 with the Securities and Exchange Commission as the first step in the review and registration process to become a publicly traded company upon emergence from Chapter 11. Undertaking this process is part of the company's Plan of Reorganization approved last November by the U.S. Bankruptcy Court for the District of Hawaii. "Becoming a publicly traded company marks a significant milestone in our efforts to evolve as a stronger, more competitive company, expanding and diversifying our communications products, services and solutions, for the benefit of our customers," said President and CEO Eric K. Yeaman. In addition to undertaking the process of becoming publicly traded, the company's Plan of Reorganization provides for the appointment of a new board of directors by the Senior Secured Creditors, who will be the majority equity owners of the company upon emergence from Chapter 11. Reflecting a shift in focus from one of restructuring to shaping Hawaiian Telcom for future growth, incoming directors have in- depth experience and knowledge of the company and extensive experience in the telecommunications industry. The incoming Directors who will become effective upon emergence from Chapter 11 include: a. Warren H. Haruki, who is currently the Executive Chairman of the Board and Interim Chief Executive Officer, Maui Land & Pineapple Company, Inc. He is also the President and CEO of Grove Farm Company and prior to that was the President of GTE Hawaiian Tel and Verizon Hawaii from 1991 to 2003. b. Richard A. Jalkut, who is the President and CEO of U.S. TelePacific Corp. (dba TelePacific Communications), a communications company operating in California and Nevada primarily serving the small-to mid-size business markets. Mr. Jalkut has more than 35 years of experience in the communications industry. c. Steven C. Oldham, who is the President and CEO of SureWest Communications, a publicly held integrated communications company providing voice, high-speed internet and digital video service in Northern California and Kansas. He currently serves as Chairman of the United States Telcom Association, the leading trade association representing telecommunications service providers, manufacturers and suppliers. d. Bob Phillips III, who is the President and CEO of the National Rural Telecommunications Cooperative. He serves on the Boards of Directors of privately held Avail-TVN, a digital media services company, and Digital Bridge Communications Corp., a private operator of WiMAX 4G broadband networks. e. Paul H. Sunu, who is the CFO of Hargray Communications Group, a regional provider of voice, video and data services headquartered in South Carolina. Prior to joining Hargray, Sunu served as CFO for Hawaiian Telcom from May 2007 to March 2008. He also founded Madison River Communications and served on its Board of Directors and as CFO until its merger with CenturyLink in April 2007. As President and CEO of Hawaiian Telcom, Mr. Yeaman will continue to serve on the Board of Directors. "I am excited and look forward to working with our new Board," said Mr. Yeaman. "They bring extensive industry expertise and experience. We will work together to lead Hawaiian Telcom on a path to grow, prosper, and to continue to meet the communication needs of the people and businesses of Hawaii. "I would also like to take this opportunity to extend my appreciation to our current directors for their steadfast dedication and guidance during a very challenging period," said Yeaman. "On behalf of our senior management team and employees, I would like to thank Vice Chairs James Attwood and Stephen Gray, and Director Alan Oshima for their commitment and leadership. I would especially like to thank Walter Dods, as Chairman and someone who has been instrumental in getting the company on the right path." Walter A. Dods Jr., who has been a Hawaiian Telcom board member since May 2005, was named Chairman of the Board in May 2008. "I made the decision to take a more active role in the company as part of the restructuring process because I believe this institution is important to Hawaii," said Mr. Dods. "The financial restructuring process has been very successful and, with regulatory approval as the final step, I am hopeful that we can quickly conclude this process. Upon emergence from Chapter 11, we have a local management team in place who will continue to build the trust of our employees and our customers, taking the company to the next level. I continue to believe in this company and will continue to support it in any way I can." About Hawaiian Telcom Based in Honolulu, Hawaii, Hawaiian Telcom Communications, Inc. -- http://www.hawaiiantel.com/-- operates a telecommunications company, which offers an array of telecommunications products and services including local and long distance service, high-speed Internet, wireless services, and print directory and Internet directory services. The Company and seven of its affiliates filed for Chapter 11 protection on December 1, 2008 (Bankr. D. Del. Lead Case No. 08-13086). As reported by the TCR on December 30, 2008, Judge Peter Walsh of the U.S. Bankruptcy Court for the District of Delaware approved the transfer of the Chapter 11 cases to the U.S. Bankruptcy Court for the District of Hawaii before Judge Lloyd King (Bankr. D. Hawaii Lead Case No. 08-02005). Richard M. Cieri, Esq., Paul M. Basta, Esq., and Christopher J. Marcus, Esq., at Kirkland & Ellis LLP, represent the Debtors in their restructuring efforts. The Debtors proposed Lazard Freres & Co. LLC as investment banker; Zolfo Cooper Management LLC as business advisor; Deloitte & Touche LLP as independent auditors; and Kurztman Carson Consultants LLC as notice and claims agent. An official committee of unsecured creditors has been appointed and is represented by Christopher J. Muzzi, Esq., at Moseley Biehl Tsugawa Lau & Muzzi LLC, in Honolulu, Hawaii. When the Debtors filed for protection from their creditors, they listed total assets of $1,352,000,000 and total debts of $1,269,000,000 as of September 30, 2008. Bankruptcy Creditors' Service, Inc., publishes Hawaiian Telcom Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Hawaiian Telcom Communications, Inc., and seven of its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) HARMAN INTERNATIONAL: S&P Gives Pos. Outlook; Affirms 'B+' Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it revised its outlook on Stamford, Conn.-based Harman International Industries Inc. to positive from stable and affirmed the ratings on the company, including the 'B+' corporate credit rating. "The outlook revision reflects S&P's view that Harman has stemmed its cash flow consumption rate and achieved an operational breakeven point that better fits expected intermediate-term global auto production levels," said Standard & Poor's credit analyst Nancy C. Messer. "S&P believes that Harman's margins should rise in 2010 and 2011, even if production volumes remain weak by historical standards for the next year, because the company's aggressive restructuring activities have improved its operating efficiencies and lowered its breakeven point." In addition, S&P see new vehicle demand stabilizing in Europe and North America. The company reported $78 million of positive free operating cash flow in the first half of its fiscal 2010 (ended December 31), and S&P expects Harman to be cash neutral (plus or minus $20 million) for its fiscal 2010 year ending June 30. The company's liquidity has improved because it reached an agreement with the holders of its $400 million convertible notes that removes a borrowing constraint on the company's revolving credit facility. Accordingly, S&P now believes there is a one-in-three chance that S&P could upgrade Harman in the year ahead. S&P continues to view Harman's business risk profile as weak and now view its financial risk profile as aggressive because of its improved liquidity and cash generating capability. Still, Harman has high leverage and minimal cash flow protection measures, with ease and pension- adjusted leverage of 5.9x, and funds-from-operations/total debt of 3.7% as of Dec. 31, 2009. The positive outlook reflects S&P's view that Harman's improved liquidity will be sufficient to manage the ongoing weakness in the auto market until production volumes begin to improve globally and that the company's margin improvement so far in 2010 demonstrates the company's ability to generate meaningful positive free cash in 2011. This assumes stability in the auto market and no further significant drop in production volumes in the U.S. or Europe. In addition to its cash balance of about $250 million, the company now has access to its $300 revolving credit facility following an agreement reached with holders of its $400 million convertible debt. Harman has also achieved through restructuring an operational breakeven point that better fits lower expected intermediate-term global auto production levels. S&P could raise the rating if Harman were able to sustainably improve its cash flow generation, and begin to address the 2011 and 2012 debt maturities. In S&P's opinion, free cash flow could improve to $100 million or better if the company can achieve reported EBITDA of at least $250 million for any forward 12-month period. Still, challenges over the year ahead include, in S&P's view, the still-weak global economy, and uncertain production volumes for its European auto customers will pressure earnings in 2010. S&P could lower the rating if S&P believed weak earnings and cash flow because of the deteriorated global auto markets would outpace the benefits of restructuring initiatives and recently launched new programs. For example, S&P could lower the rating if the company's liquidity worsened in fiscal 2010 because of negative EBITDA and/or cash use exceeding its assumption of up to $20 million. S&P could also review the rating if the company were to pursue a transforming acquisition or large dividend payout in the year ahead that could erode liquidity. HARVARD DRUG: S&P Assigns Corporate Credit Rating at 'B' -------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Livonia, Michigan-based Harvard Drug Group LLC. At the same time, S&P assigned a 'B+' issue-level rating (one notch higher than the corporate credit rating) to Generic Drug Holdings Inc.'s (the holding company of Harvard Drug Group LLC) proposed $160 million senior secured term loan maturing in 2016, $20 million revolving credit facility maturing in 2015, and $22 million delayed draw facility maturing in 2016. The recovery rating on these credit facilities is '2', indicating S&P's expectation for substantial (70%-90%) recovery in the event of payment default. The rating outlook is stable. S&P's speculative-grade ratings overwhelmingly reflect Harvard Drug's highly leveraged financial risk profile (S&P treats the company's class L common stock as debt because of its 10% pay-in- kind, or PIK interest). The ratings also reflect the company's relatively small size, niche strategy, and the potential for increased acquisition activity. HERRERA, HERRERA: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Herrera, Herrera & Associates, Inc. dba Mercado Internacional 2000 1415 3rd Avemue Chula Vista, CA 91910 Bankruptcy Case No.: 10-05549 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: Alan L. Williams, Esq. Law Offices of Alan L. Williams 2550 Fifth Avenue, Suite 520 San Diego, CA 92103 Tel: (619) 296-0196 Fax: (619) 296-2982 E-mail: awilliams@alwlaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/casb10-05549.pdf The petition was signed by Roberto Herrera, Jr., vice president. HOLIDAY 360: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Holiday 360 Ltd. 2311 Texas Drive, Suite 105 Irving, TX 75062 Bankruptcy Case No.: 10-42412 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: D. Michael Lynn Type of Business: Single Asset Real Estate Debtor's Counsel: John C. Leininger, Esq. Bryan Cave LLP 2200 Ross Avenue, Suite 3300 Dallas, TX 75201 Tel: (214) 721-8040 E-mail: john.leininger@bryancave.com Estimated Assets: $10,000,000 to $50,000,000 Estimated Debts: $10,000,000 to $50,000,000 The petition was signed by Suhas Naik, Manager of Sava Ventures LLC, GP of Gen. Partner Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Hotel 635 Beltline, LP 10-42415 4/5/10 Assets: $10-mil. to $50-mil. Debts: $10-mil. to $50-mil. Stay 190, Ltd. 10-42413 4/5/10 Assets: $10-mil. to $50-mil. Debts: $10-mil. to $50-mil. Holiday 360's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Connected Hotel -- $72,000 P.O. Box 93809 Southlake, TX 76092 Tel: (972) 636-5563 Tasco Builders -- $50,000 Intercontinental Hotels Group -- $34,136 P.O. Box 101074 Atlanta, GA 30392-1074 Clear Channel Airports -- $28,025 P.O. Box 847247 Dallas, TX 75284 ANJ Security Guard and Patrol -- $14,731 TravelCLICK, Inc. -- $12,000 Charter Communications -- $10,973 Serta Mattress Company -- $9,512 Reliant Energy -- $8,749 Guest Supply -- $5,243 Meritax Landmark -- $4,196 Hotel 360, Ltd. -- $3,999 H D Supply Facilities -- $3,073 CentrePort Venture, Inc. -- $3,022 American Hotel Register Company -- $2,791 City of Fort Worth - Utilities -- $2,747 National Business Travel -- $2,515 EcoLab -- $2,334 Starbucks -- $2,000 KC Booth Co -- $1,995 HOME INTERIORS: Plan Confirmation Hearing Scheduled for May 26 -------------------------------------------------------------- Home Interiors & Gifts, Inc., et al., received approval from the U.S. Bankruptcy Court for the Northern District of Texas of the their disclosure statement for the proposed amended Plan of Liquidation. The Bankruptcy Court approval of the Debtors' disclosure statement allows the Debtors to commence the solicitation of votes for confirmation of their Plan. The Plan was proposed by Dennis Faulkner, Chapter 11 trustee for the Debtors' estates. The deadline for returning completed ballots is on May 19, 2010, at 5:00 p.m. Pacific Time. A hearing to consider confirmation of the Plan is scheduled for May 26, 2010 at 1:15 p.m., Central Time before the Hon. Barbara Houser, U.S. Courthouse, 1100 Commerce Street, 14th Floor, Dallas, Texas. Objections, if any, are due on May 19, 2010, at 5:00 p.m. CT. According to the amended Disclosure Statement, the Plan contemplates the formation of a creditor trust to maintain and hold professional fee reserve and wind-up reserve, consolidate the Debtors, and distribute funds in accordance to the Plan. All assets of the Debtors and their estate will be transferred to and vest in the creditor trust. Treatment of Claims Class 1 secured claims of the prepetition lenders will retain their liens on all remaining pre- and post-petition collateral securing their claims. The creditor trust trustee will remit to the prepetition agent 79.92% of the proceeds from the collection of any collateral. Class 2 other secured claims will will receive either i) conveyance of its collateral; ii) payment in cash in the amount of the allowed claim; or iii) other treatment as may be agreed to by the holder and the creditor trust trustee. The Plan did not provide for the estimated percentage recovery by holders of other secured claims. Class 3 general unsecured claims will share in the same pool of assets as if in a single class. General unsecured creditors will share pro rata in any recoveries from chapter 5 causes of action. When distributions to general unsecured creditors in Class 3 reach $3.5 million, the general unsecured creditors will then share pro rata in the pool of all unsecured claims including the deficiency claim of the group two lenders. The rights of Class 4 equity interest holders will be extinguished on the effective date. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/HomeInteriors_AmendedDS.pdf The Chapter 11 trustee is represented by: Michael A. McConnell Nancy Ribaudo Kelly Hart & Hallman LLP 201 Main Street, Suite 2500 Fort Worth, Texas 76102 Fax: (817) 878-9280 Email: nancy.ribaudo@kellyhart.com About Home Interiors & Gifts, Inc. Headquartered in Carrollton, Texas, Home Interiors & Gifts, Inc. -- http://www.homeinteriors.com/-- manufactures, imports and distributes indoor and outdoor home decorative accessories. It was founded by Mary Crowley in 1957. Through its affiliates, the Company has a significant presence in Mexico, Puerto Rico, and Canada. Annual revenue in 2007 reached $300 million. When Mary Crowley, died in 1986, her son, Don Carter continued the business operation nearly debt-free. In a leveraged transaction in 1998, private equity firm of Hicks, Muse, Tate, and Furst acquired 66% of the parent company, which resulted in the imposition of more than $500 million in debt on the Debtors. In the face of decreased sales and increased debt load, bondholders canceled their debts in February 2006 in exchange for receiving most of the outstanding equity of the Debtors. About 40% of the goods the Debtors sell are now acquired from manufacturers in China. In the last decade, sales volume in the U.S. has waned, but the Debtors reported that sales in Mexico and Puerto Rico significantly increased. The Company and six of its affiliates filed for Chapter 11 protection on April 29, 2008 (Bankr. N.D. Tex. Lead Case No. 08-31961). Andrew Jillson, Esq., Cameron Kinvig, Esq., Robert McCormick, Esq., and Mike Massad, Esq., at Hunton & Williams, LLP, represent the Debtors as counsel. Richard A. Lindenmuth at Boulder International LLC, is designated as CRO. The U.S. Trustee for Region 6 has appointed seven creditors to serve on an official committee of unsecured creditors. Munsch Hardt Kopf & Harr, PC, represents the Committee in these cases. Kurtzman Carson Consultants LLC is the official noticing and balloting agent. In its schedules, Home Interiors & Gifts, Inc., listed $88,653,051 in total assets, and $510,451,698 in total liabilities. As reported in the Troubled Company Reporter on December 11, 2008, the Court approved the appointment by the United States Trustee of Dennis Faulkner as Chapter 11 trustee in the Debtors' bankruptcy cases. Dennis Faulkner, of the accounting firm of Lain, Faulkner & Co., P.C., is a member of the American Bankruptcy Institute and the Association of Insolvency and Restructuring Advisors. Lain, Faulkner & Co., P.C., is an accounting firm which specializes in bankruptcy, litigation and business advisory services. HOTEL 635: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Hotel 635 Beltline, LP 2311 Texas Drive, Suite 105 Irving, TX 75062 Bankruptcy Case No.: 10-42415 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: D. Michael Lynn Type of Business: Single Asset Real Estate Debtor's Counsel: John C. Leininger, Esq. Bryan Cave LLP 2200 Ross Avenue, Suite 3300 Dallas, TX 75201 Tel: (214) 721-8040 E-mail: john.leininger@bryancave.com Estimated Assets: $10,000,000 to $50,000,000 Estimated Debts: $10,000,000 to $50,000,000 The petition was signed by Suhas Naik, Manager of Sava Ventures LLC, GP of Gen. Partner Debtor-affiliate that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Holiday 360, Ltd. 10-42412 4/5/10 Assets: $10-mil. to $50-mil. Debts: $10-mil. to $50-mil. Stay 190, Ltd. 10-42413 4/5/10 Assets: $10-mil. to $50-mil. Debts: $10-mil. to $50-mil. Hotel 635's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Rainer Income & Growth Fund III, -- $261,958 13760 Noel Road, Suite 800 Dallas, Texas 75240 Connected Hotel -- $98,401 P.O. Box 93809 Southlake, TX 76092 Floors 2000, Inc. -- $24,253 JD Plaster Masonry -- $22,683 Reed Plumbing Inc. -- $21,891 Clear Channel Airports -- $21,388 TASCO Builders $20,145 DMX Inc. -- $19,988 Commercial Sales & Service, Inc. -- $19,280 Quiltcraft -- $19,105 North Texas Glazing Co. -- $17,460 Life Fitness -- $17,012 Wortham Brothers $15,517 IMB Corporation -- $13,999 Roman Marble Design, Inc. -- $12,762 Hernandez Heating & Air -- $12,671 Purdy-McGuire -- $11,137 L & K Construction -- $10,056 PCI Construction -- $10,029 Wessco International $9,885 HYDE PARK: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Hyde Park Place, L.P. 6100 Center Drive Suite 1200 Los Angeles, CA 90045 Bankruptcy Case No.: 10-22903 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Ernest M. Robles Debtor's Counsel: Richard H Gibson, Esq. 21800 Oxnard Street #310 Woodland Hills, CA 91367 Tel: (818) 716-7950 Fax: (818) 716-7995 Estimated Assets: $0 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-22903.pdf The petition was signed by Sharon Sumpter, executive director. ICAGEN INC: Ernst & Young Raises Going Concern Doubt ---------------------------------------------------- Icagen, Inc., filed on March 30, 2010, its annual report on Form 10-K for the year ended December 31, 2009. Ernst & Young LLP, in Raleigh, N.C., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses from operations and negative operating cash flows. The Company reported a net loss of $12.8 million for 2009,as compared to a net loss of $14.8 million for 2008, a decrease of 14%. The decrease in net loss was primarily due to a decrease in operating expenses, partially offset by a decrease in revenue and interest income. Cash used in operations for 2009 was $15.4 million, as compared to $18.0 million during 2008. Revenues for 2009 totaled $9.6 million, as compared to $12.3 million for 2008, a decrease of 22%. The decrease in revenues was primarily due to a decrease in amortization of the initial upfront payment from Pfizer which became fully amortized during the third quarter of 2009. Revenues for the fourth quarter of 2009 totaled $1.4 million, as compared to $3.0 million during the same period in 2008, a decrease of 54%. Net loss for the fourth quarter of 2009 totaled $3.3 million, as compared to a net loss of $3.9 million during the same period in 2008, a decrease of 16%. The Company's balance sheet as of December 31, 2009, showed $21.1 million in assets, $4.4 million of debts, and $16.7 million of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5f37 A full-text copy of the release disclosing the Company's financial results for the fourth quarter and full year ended December 31, 2009, is available for free at http://researcharchives.com/t/s?5f36 Icagen, Inc. (NASDAQ: ICGN) -- http://www.icagen.com/-- is a biopharmaceutical company based in Research Triangle Park, North Carolina, focused on the discovery, development and commercialization of novel orally-administered small molecule drugs that modulate ion channel targets. ILX RESORTS: Posts $1.9 Million Net Loss in 2009 ------------------------------------------------ ILX Resorts Incorporated filed on March 30, 2010, its annual report on Form 10-K for the year ended December 31, 2009, showing a net loss of $1.9 million on $33.6 million of revenue for 2009, compared with a net loss of $8.7 million on $27.4 million of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $71.1 million in assets, $43.0 million of debts, and $28.1 million of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5f0a Chapter 11 Update On October 2, 2009, the Bankruptcy Court entered its order approving the Disclosure Statement and establishing the solicitation and voting procedures for the Debtors' Plan. The confirmation hearing on the Debtors' Plan was scheduled for November 10 and 12, 2009. The Company's primary lender filed a Motion for Relief From Automatic Stay Regarding Debtors' Real and Personal Property on August 15, 2009. The hearing on this motion was scheduled to be held in conjunction with the Plan confirmation hearing on November 10 and 12, 2009. The Debtors and their primary lender asked for an extension on November 12, 2009, until January 7, 2010, in order to work together on a mutually acceptable plan of reorganization. In January 2010, the Debtors and their primary lender reached an agreement and are now working together on a Joint Plan of Reorganization in which most of the Debtors assets will be sold to a third party. The Company says there can be no assurance at this time that the Company will be able to sell most of its assets to a third party or that it can restructure as a going concern, that the Joint Plan or Plan will be confirmed by the Bankruptcy Court, or that any plan will be implemented successfully. About ILX Resorts Based in Phoenix, Ariz., ILX Resorts Incorporated -- http://www.ilxresorts.com/-- develops, markets, and operates timeshare resorts in the western United States. The Company's current portfolio of resorts consists of seven resorts in Arizona, one in Indiana, one in Colorado, one in San Carlos, Mexico, land in Puerto Penasco ("Rocky Point"), Mexico and Sedona, Arizona. The Company also has interests in 2,241 weeks at the Carriage House in Las Vegas, Nevada, 176 weeks at the Scottsdale Camelback Resort in Scottsdale, Arizona and 194 weeks in the Roundhouse Resort in Pinetop, Arizona. ILX Resorts, Inc., and 15 of its subsidiaries and limited liability companies filed for voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code on March 2, 2009 (Bankr. D. Ariz. Lead Case No. 09-03594). Judge Redfield T. Baum presides over the cases. John J. Hebert, Esq., at Shughart Thomson & Kilroy, P.C., serves as the Debtors' counsel. As of March 31, 2009, ILX Resorts had $71.4 million in total assets and $42.6 million in total liabilities. INTEGRA TELECOM: Moody's Assigns 'B2' Rating on $210 Mil. Notes --------------------------------------------------------------- Moody's Investors Service has assigned a B2 rating to the proposed $210 million 1st lien senior secured term loan and a B2 rating to the proposed $500 million 1st lien senior secured note issuance by Integra Telecom Holdings, Inc., a wholly-owned subsidiary of Integra Telecom, Inc., the net proceeds from both of which will be used to refinance existing debt. In addition, Moody's assigned a Ba2 rating to Holdings' proposed $60 million 1st lien senior secured revolving credit facility. Although all 1st lien secured credit facilities will share the same collateral, the revolver is rated higher due to its "first out" clause in the credit agreement, stipulating priority of payment. As part of the rating action, Moody's changed the rating outlook to negative from stable, reflecting the increase in Integra's financial leverage (Moody's adjusted Debt/EBITDA, including capitalized operating leases) to over 4.0x proforma for the transaction, which is above the expected 3.5x leverage level commensurate with the former B2 Stable rating. In addition to the increased leverage, Moody's believes that the company's path to meaningful free cash flow generation will take longer than initially anticipated, as the company needs to demonstrate the turnaround in revenue declines and EBITDA growth amid continuing economic weakness in its service territories. Moody's affirmed Integra's B2 Corporate Family Rating and B2 Probability of Default Rating. This is a summary of Moody's rating actions and current ratings. Assignments: Issuer: Integra Telecom Holdings, Inc. -- $60M 1st lien First-Out Senior Secured Revolving Credit Facility, Assigned Ba2, LGD1 - 1% -- $210M 1st lien Last-Out Senior Secured Senior Secured Bank Credit Facility, Assigned B2, LGD4 - 53% -- $500M 1st lien Last-Out Senior Secured Notes, Assigned B2, LGD4 - 53% Outlook Actions: Issuer: Integra Telecom Holdings, Inc. -- Outlook, Changed To Negative From Stable The B2 corporate family rating incorporates Integra's improved credit profile achieved by a significant leverage reduction when the company eliminated roughly $720 million of debt in November 2009 in exchange for equity. This resulted in Moody's adjusted Debt/EBITDA leverage dropping to about 3.2x, from 6.5x prior to the restructuring. However, the proposed refinancing will increase the company's leverage by about 0.8x to about 4.0x in total, and Moody's continues to be concerned about the impact of the economy in the Company's service territories, which may delay the envisioned path to deleveraging and free cash flow growth. In addition, competitive pressures are expected to remain high as Comcast ramps up its commercial telephone offerings and Qwest follows through on its publicly stated commitment to re-energize its push to small to medium sized businesses. Moody's recognizes the Company's significant progress in turning around the weaker than expected revenue generation since it acquired Eschelon Telecom in late 2007. The Company believes that it has reached a trough in sales declines and churn, such that combined with cost containment programs put in place over the past year and the elimination of fees related to the restructuring it should return to positive free cash flow generation in 2010. However, the higher debt service costs and ramping up of growth initiatives in the near term are expected to delay meaningful free cash flow generation until 2012. Moody's notes that the ratings are supported by the Company's significant fiber-optic network in the Pacific Northwest and its management team's long track record of operating in the competitive telecom arena. Moody's believes that the Company will have adequate liquidity over the next four quarters, as it ramps up capital expenditures over the 2009 levels to grow its business. The Company expects to fund the modest free cash flow shortfall with cash on hand. In addition, the amended credit agreement gives the Company added headroom in managing its covenant compliance. Moody's most recent rating action for Integra was on November 20, 2009, when the rating agency upgraded Integra's CFR to B2 from Caa1 and PDR to B2 from Ca following the completion of the Company's debt restructuring program. Integra is headquartered in Portland, OR, and provides telecommunications services to small and medium-sized enterprises and other communications companies. INTEGRA TELECOM: S&P Puts 'CCC+' Rating on CreditWatch Positive --------------------------------------------------------------- Standard & Poor's Ratings Services said it placed its 'CCC+' corporate credit rating on Portland Oregon-based competitive local exchange carrier Integra Telecom Inc. on CreditWatch with positive implications. S&P also assigned a 'CCC+' issue rating and '5' recovery rating to subsidiary Integra Telecom Holdings Inc.'s proposed $210 million first-lien bank term loan and its proposed $500 million secured notes, to be issued under Rule 144A without registration rights. S&P also assigned its 'B+' issue rating and '1' recovery rating to the subsidiary's proposed $60 million secured revolving credit, with a first-out provision. Proceeds will be used to repay indebtedness outstanding under its existing credit facilities and for general corporate purposes. "Those issue-level ratings are based on the prospective higher corporate credit rating," said Standard & Poor's credit analyst Catherine Cosentino, "which S&P will raise to 'B-' and remove from CreditWatch upon completion of the financing, since proceeds will be used to repay existing bank debt." That debt contained restrictive financial maintenance covenants which S&P believed would have been difficult for the company to continue to meet on an ongoing basis. "The prospective raising of the corporate credit rating to 'B-' from 'CCC+' will reflect the removal of restrictive financial maintenance covenants with the refinancing of the existing term debt," added Ms. Cosentino. S&P feels cushion under the covenants in the existing bank loan is currently tight and it might be difficult for the company to meet these thresholds on an ongoing basis, especially if Integra experiences execution missteps or accelerated churn. While the new bank loan also contains financial maintenance covenants, S&P's prospective upgrade is predicated on the presumption that these covenants will be considerably looser than those in the previous bank agreement, providing a minimum cushion of 15%. Moreover, if the company's revenue trends stabilize or improve in the second half of 2010, S&P could raise the rating, given Integra's overall financial profile and expectations that it will continue to operate at break-even to positive levels of net cash flow after capital expenditures. ISHA DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Isha Development, Inc. dba Sleep Inn & Suites Fairburn 1005 Oakley Industrial Blvd. Fairburn, GA 30213 Bankruptcy Case No.: 10-70174 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Edward F. Danowitz, Jr., Esq. Danowitz & Associates, P.C. 300 Galleria Parkway, NW Suite 960 Atlanta, GA 30339 Tel: (770) 933-0960 E-mail: edanowitz@danowitzlegal.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ganb10-70174.pdf The petition was signed by Farid Khan, president. JEFFERSON COUNTY: Most Commission Candidates Reject Bankruptcy -------------------------------------------------------------- Barnett Wright at The Birmingham News reports that most candidates seeking to replace two Jefferson County commissioners believe bankruptcy is not a viable option to solve the county's sewer debt crisis. Birmingham News says if those candidates win, it could almost guarantee a negotiated settlement between the county and creditors over the $3.2 billion sewer debt. Birmingham News relates a record 34 people are running for the commission in the June 1 primary election, including for seats now held by current GOP Commissioners Bobby Humphryes and Jim Carns, both of whom have said they favor a Chapter 9 filing. Mr. Humphryes is seeking a second term in District 3. Mr. Carns is not seeking re-election in District 5. About Jefferson County Jefferson County has its seat in Birmingham, Alabama. It has a population of 660,000. It ended its 2006 fiscal year with a $42.6 million general fund balance, according to Standard & Poor's. The Birmingham firm of Bradley Arant Rose & White, represents Jefferson County. Porter, White & Co. in Birmingham is the county's financial adviser. A bankruptcy by Jefferson County stands to be the largest municipal bankruptcy in U.S. history. It could beat the record of $1.7 billion, set by Orange County, California in 1994. As reported by the TCR on July 24, 2009, Moody's Investors Service has affirmed the Caa3 rating and negative outlook on Jefferson County's (Alabama) outstanding $3.2 billion sewer revenue bonds. Moody's underlying Caa3 rating reflects the likelihood of eventual repayment by the county of principal, irrespective of outside enhancement through bond insurance. It does not reflect the claims paying ability of Syncora, which is rated Ca and failed to fulfill its obligation to make a July 1 Bank Bond principal payment. JERRY HERLING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Jerry Herling Construction, Inc. 300 S. Highland Springs Avenue, Suite 6C PMB 128 Banning, CA 92220 Bankruptcy Case No.: 10-20032 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Central District of California (Riverside) Judge: Deborah J. Saltzman Debtor's Counsel: Lazaro E. Fernandez, Esq. 3600 Lime Street, Suite 614 Riverside, CA 92501 Tel: (951) 684-4474 Fax: (951) 684-4625 E-mail: lef17@pacbell.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-20032.pdf The petition was signed by Jerry Herling, president. JARAE PROPERTIES: Case Summary & Unsecured Creditor --------------------------------------------------- Debtor: Jarae Properties, LLC 31630 Second Avenue Laguna Beach, CA 92651 Bankruptcy Case No.: 10-14366 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Arthur F. Stockton, Esq. Stockton Law Offices 8655 E. Via De Ventura Suite G200 Scottsdale, AZ 85258 Tel: (866) 682-8766 Fax: (866) 207-4082 E-mail: art@stocktonlawoffices.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 1 largest unsecured creditor filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-14366.pdf The petition was signed by Susan P. Harper, for Managing Member E- CITYMERCHANTS.COM, LLC. KMART CORP: Appeals Court Clears Sears et al From Shareholder Suit ------------------------------------------------------------------ Reuters reports that the U.S. Second Circuit Court of Appeals in Manhattan on Tuesday affirmed a lower court' decision and held that Sears Holdings Corp., its billionaire Chairman Edward Lampert, and one-time Kmart Chief Executive Julian Day are not liable to former Kmart Holding Corp. shareholders who accused that retailer of trying to drive down Kmart's stock price to let executives buy shares cheaply. Mr. Lampert acquired a controlling stake in Kmart and became chairman when it emerged from bankruptcy in 2003. Kmart then merged with Sears Roebuck & Co. in 2005 to form Sears Holdings. Reuters recalls the class action alleges that Kmart deliberately understated the value of its real estate assets by several billion dollars, to give Messrs. Lampert and Day a chance to acquire Kmart shares at less than their true worth. The plaintiffs allege that when Kmart then sold some of the real estate to Home Depot Inc. and Sears Roebuck, its shares soared, giving it more ammunition to buy Sears. The plaintiffs contended that because they were not told what the real estate was really worth, they sold their Kmart shares at artificially low prices. According to Reuters, the appellate court held that the plaintiffs failed to show that Messrs. Lampert and Day intended to deceive or defraud them. According to Reuters, the appellate court said any desire of the executives to acquire stock at artificially low prices could not have motivated them to understate the value of Kmart real estate, given that they had negotiated the terms of their stock options well in advance. "Lampert and Day's only economically rational motive would have been to disclose any information that might increase the company's stock price," the court said, according to Reuters. The lead plaintiffs in the case are the Plumbers and Pipefitters National Pension Fund, the Mississippi Public Employees' Retirement System, and an individual, Fred Campo. The case is Campo et al v. Sears Holdings Corp et al, U.S. Court of Appeals for the Second Circuit, No. 09-3589. Reuters says Jay Eisenhofer, Esq., a lawyer for the plaintiffs, was not immediately available for comment. Sears had no immediate comment. Kmart Corporation is a predecessor operating company of Kmart Holding. In January 2002, Kmart Corp. and 37 of its U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the federal bankruptcy laws. The Debtors emerged from bankruptcy on May 6, 2003, pursuant to the terms of an Amended Joint Plan of Reorganization. Kmart completed its merger with Sears, Roebuck and Co. on March 24, 2005. KAO PROPERTIES: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: KAO Properties, Inc. P.O. Box 865054 Plano, TX 75086 Bankruptcy Case No.: 10-41092 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Judge: Not Available Debtor's Counsel: Joyce W. Lindauer, Esq. 8140 Walnut Hill Lane Suite 301 Dallas, TX 75231 Tel: (972) 503-4033 Fax: (972) 503-4034 E-mail: courts@joycelindauer.com Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txeb10-41092.pdf The petition was signed by James Chen, President. LEHMAN BROTHERS: Oversight Board Launches Probe on Ernst & Young ---------------------------------------------------------------- Charles Gasparino at FOX Business says pressure on accounting firm Ernst & Young continues to grow as an oversight board, created under the Sarbanes-Oxley accounting reform act of 1992, launches an investigation into the firm's role in Lehman Brothers' bankruptcy. FOX Business relates the Public Company Accounting Oversight Board, which can investigate and discipline public accounting firms, has launched an inquiry into Ernst & Young following the Lehman bankruptcy examiner's report that accused the firm of "professional malpractice" in its approval of a controversial accounting technique used by Lehman as it slid into insolvency. The technique known as Repo 105 helped mask the deteriorating nature of Lehman's balance sheet. FOX Business notes that the oversight's board inquiry is yet the latest investigation to hit Ernst & Young over its role as Lehman's auditor, which was highlighted in the report issued by Lehman bankruptcy examiner Anton Valukas last month. FOX Business relates the Securities and Exchange Commission and U.K. regulators are looking at Ernst & Young's activities. FOX Business says Charles Perkins, a spokesman for Ernst & Young, has vehemently denied that the firm has done anything wrong. He didn't return calls for comment. A spokeswoman for the oversight board had no comment, FOX Business says. Examiner's Report As reported by the Troubled Company Reporter, Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York unsealed on March 11, 2010, the 2,200-page report summarizing the results of the investigation conducted by Anton Valukas, the Court-appointed Chapter 11 examiner in the bankruptcy cases of Lehman Brothers. In summary, the Examiner noted that after Bear Stearns' demise in 2007, Lehman was widely considered to be the next bank that might fail, and investor and client confidence was eroding. He said Lehman pursued a number of strategies to avoid demise but to buy itself more time, to maintain that critical confidence, Lehman painted a misleading picture of its financial condition. At the end of the second quarter of 2008, as Lehman was forced to announce a quarterly loss of $2.8 billion -- resulting from a combination of write-downs on assets, sales of assets at losses, decreasing revenues, and losses on hedges -- it sought to cushion the bad news by trumpeting that it had significantly reduced its net leverage ratio to less than 12.5, that it had reduced the net assets on its balance sheet by $60 billion, and that it had a strong and robust liquidity pool. The Examiner, however, found that Lehman did not disclose that it had been using an accounting device, known within Lehman as "Repo 105," to manage its balance sheet -- by temporarily removing approximately $50 billion of assets from the balance sheet at the end of the first and second quarters of 2008. With Repo 105 transactions, Lehman's reported net leverage was 12.1 at the end of the second quarter of 2008; but if Lehman had used ordinary repos, net leverage would have to have been reported at 13.9. The Examiner also found that Lehman did not disclose its use -- or the significant magnitude of its use -- of Repo 105 to the U.S. Government, to the rating agencies, to its investors, or to its own Board of Directors. Lehman's auditors, Ernst & Young, were aware of this but did not question the company's use and nondisclosure of the Repo 105 accounting transactions, the Examiner revealed. As late as September 10, 2008, Lehman publicly announced that its liquidity pool was approximately $40 billion; but a substantial portion of that total was in fact encumbered or otherwise illiquid, the Examiner related. By September 12, two days after it publicly reported a $41 billion liquidity pool, the pool actually contained less than $2 billion of readily monetizable assets, he added. According to the report, "Lehman failed because it was unable to retain the confidence of its lenders and counterparties and because it did not have sufficient liquidity to meet its current obligations." The Examiner concluded that while certain of Lehman's risk decisions can be described in retrospect as poor judgment, they were within the business judgment rule and do not give rise to colorable claims against the senior officers who oversaw and certified misleading financial statements." The Examiner, however, found colorable claims against Richard Fuld, Jr., former chief executive officer of Lehman; Christopher O'Meara, former chief financial officer, controller and executive vice president; Erin Callan, former chief financial officer and global controller; and Ian Lowitt, co-chief administrator, in connection with their failure to disclose the use of the practice and against Ernst & Young for its failure to meet professional standards in connection with that lack of disclosure. The Examiner also found colorable claims against JPMorgan Chase and CitiBank in connection with modifications of guaranty agreements and demands for collateral in the final days of Lehman's existence. The demands for collateral by Lehman's Lenders had direct impact on Lehman's liquidity pool; Lehman's available liquidity is central to the question of why Lehman failed, he said. Mr. Valukas spent more than a year and $38 million to investigate the events surrounding Lehman's downfall. A 17-part copy of the Examiner Report is available for free at: http://bankrupt.com/misc/Volume1.pdf http://bankrupt.com/misc/Volume2.pdf http://bankrupt.com/misc/Volume3.pdf http://bankrupt.com/misc/Volume4.pdf http://bankrupt.com/misc/Volume5.pdf http://bankrupt.com/misc/Volume6.pdf http://bankrupt.com/misc/Volume7.pdf http://bankrupt.com/misc/Volume8.pdf http://bankrupt.com/misc/Volume9.pdf http://bankrupt.com/misc/Volume10.pdf http://bankrupt.com/misc/Volume11.pdf http://bankrupt.com/misc/Volume12.pdf http://bankrupt.com/misc/Volume13.pdf http://bankrupt.com/misc/Volume14.pdf http://bankrupt.com/misc/Volume15.pdf http://bankrupt.com/misc/Volume16.pdf http://bankrupt.com/misc/Volume17.pdf About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LOS ANGELES, CALIF: Faces $10-Mil. Shortfall by May 5 ----------------------------------------------------- The Wall Street Journal's Peter Sanders reports that Los Angeles City Controller Wendy Greuel warned this week that the city's general fund could run out of money and fall $10 million into the red by May 5 unless the Los Angeles Department of Water & Power transfers a planned $73.5 million payment it has so far said it would withhold. According to the Journal, without the payment, the city would need to dip into its reserve fund, leaving that contingency dangerously low in the event of other emergencies. The Journal relates that the Los Angeles utility, the nation's largest municipal utility, said it wasn't making the payment because the city council earlier this month failed to approve substantial increases in electricity rates. The Journal reports that utility officials say they need those higher rates to help cover the costs of investing in renewable energy, such as wind and solar, that are mandated by state and municipal laws. According to the Journal, the utility is an influential entity in its own right, with an annual budget of $4.2 billion, 8,600 employees and massive landholdings throughout Southern California. It makes periodic payments to the city in lieu of taxes and franchise fees. The Journal also notes that the utility's move has kicked off a fight that already has had negative repercussions for the city. On Wednesday, the Journal relates, rating firm Moody's Corp. cut its ratings on some $3.2 billion of Los Angeles general obligation bonds by one notch, reflecting "continued erosion of the city's historically better-than-average willingness and ability to quickly rebalance its budget mid-year." The ratings firm warned that by the end of Los Angeles' fiscal year on June 30, general fund reserves "could be materially weaker than we had previously expected" because of the squabble with the utility. LYDIA CLADEK: Involuntary Chapter 11 Case Summary ------------------------------------------------- Alleged Debtor: Lydia Cladek, Inc. 108 Seagrove Main Street St. Augustine, FL 32080 Case Number: 10-02800 Involuntary Chapter 11 Petition Date: April 2, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Jacksonville) Petitioners' Counsel: Jacob A Brown, Esq. Akerman Senterfitt 50 North Laura Street, Suite 2500 Jacksonville, FL 32202 Tel: (904) 798-3700 Fax: (904) 798-3730 E-mail: jacob.brown@akerman.com Debtor's Counsel: Pro Se Creditors that signed the Chapter 11 petition: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Robert Mengarelli Obligation under $90,165 1397 Fryston St Matured Promissory St Johns, FL 32259 Note Mike Castelaz Promissory Note $52,000 2371 Woodglen Dr Aurora, IL 60502 John Castelaz Promissory Note $17,500 1124 Fox Ridge Lane Aurora, IL 60502 Robin Ponte Promissory Note $103,000 1954 Havenshire Aurora, IL 60502 RAD Management Co. Promissory Note $1,600,000 PO Box 590 St. Augustine, FL 32085 The Donald N. Radbill Promissory Note $100,000 Living Trust PO Box 590 St. Augustine, FL 32085 Jean Clancy Promissory Note $25,012 16108 Harbour Vista Cir St. Augustine, FL 32080 Charlotte E. Sears Promissory Note $114,102 Living Trust Dated May 1, 1993 157 Marine St Unit 206 St. Augustine, FL 32084 Betty Ponce Promissory Note $187,000 166 Herons Nest Ln St. Augustine, FL 32080 Yanet Pantaleon Promissory Note $100,000 166 Herons Nest Ln St. Augustine, FL 32080 John Bristow Promissory Note $59,646 15418 W. Fair Lane Libertyville, IL 60048 Curb Systems of NE FL Promissory Note $75,000 6370 US Hwy 1 N Bldg 8 St. Augustine, FL 32095 Gary Alligood Promissory Note $550,000 115 Sunset Harbor Way #C202 St. Augustine, FL 32080 Malcolm Alligood Promissory Note $50,000 115 Sunset Harbor Way #C202 St. Augustine, FL 32080 Jill Rand Promissory Note $106,032 12710 Del Rio Jacksonville, FL 32258 Caroline S. Fortner Promissory Note $110,000 Trustee of the George W. Fortner Credit Trust 3123 S. Ponte Vedra Blvd Ponte Vedra Beach, FL 32082 David A. Hall $50,000 14736 Grassy Hole Ct Jacksonville, FL 32258 M. Bruce Hall $800,000 3123 S. Ponte Vedra Blvd. Ponte Vedra Beach, FL 32082 Claudia Hundsdorfer-Abae $99,846 7 Sunset Ridge Jericho, VT 05465 ---------- TOTAL $4,289,303 LYDIA CLADEK: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Lydia Cladek, Inc. 108 Seagrove Main Street St. Augustine, FL 32080 Bankruptcy Case No.: 10-02805 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Middle District of Florida (Jacksonville) Judge: Paul M. Glenn Debtor's Counsel: Lawrence Lilly, Esq. 336 Redwing Lane St. Augustine, FL 32080-7979 Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Lydia Cladek, the company's president. Debtor's List of 8 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Noel & Bennett Gell Contract $1,000,000 9075 June Lane St. Augustine, FL 3200 C.L. Anderson Contract $1,000,000 1331 First Street North Jacksonville, FL 32250 Edward Cladek Contract $1,000,000 P.O. Box 183 Hinsdale, IL 60522-0183 Richard Rakus Contract $1,000,000 876 Palermo Road St. Augustine, FL 32086 Rudolph Danowski Contract $1,000,000 127 Hogsback Road Oxford, CT Charles A. Mandeville Contract $1,000,000 2942 N. Shell Road Deland, FL 32720 Donald Rodbill Contract $1,000,000 222 N. Forest Dune Drive St. Augustine, FL 32080 Terry & Hollace Lichty Contract $1,000,000 MAGUIRE PROPERTIES: Balyasny Funds Hold 6.51% of Common Stock ------------------------------------------------------------- Cayman Islands-based Atlas Master Fund, LTD., Chicago-based Balyasny Asset Management LLC, Dmitry Balyasny, as sole managing member of the general partner of BAM, and various affiliated funds disclosed that as of December 31, 2009, they may be deemed to beneficially own in the aggregate 3,119,452 shares or roughly 6.51% of the common stock of Maguire Properties, Inc. A full-text copy of Balyasny disclosure is available at no charge at http://ResearchArchives.com/t/s?5f03 About Maguire Properties, Inc. Maguire Properties, Inc. (NYSE: MPG) -- http://www.maguireproperties.com/-- is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. The Company's balance sheet at Dec. 31, 2009, revealed $3.6 billion in total assets and $4.5 billion in total liabilities for a $856.9 million total stockholders' deficit. MAGUIRE PROPERTIES: David Tepper's Appaloosa Holds 8.97% of Shares ------------------------------------------------------------------ David A. Tepper's Appaloosa Investment Limited Partnership I, Palomino Fund Ltd., Thoroughbred Fund L.P., Thoroughbred Master Ltd., Appaloosa Management L.P., and Appaloosa Partners Inc. disclosed that as of December 31, 2009, they may be deemed to beneficially own in the aggregate 4,300,000 shares or roughly 8.97% of the common stock of Maguire Properties, Inc. About Maguire Properties, Inc. Maguire Properties, Inc. (NYSE: MPG) -- http://www.maguireproperties.com/-- is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. The Company's balance sheet at Dec. 31, 2009, revealed $3.6 billion in total assets and $4.5 billion in total liabilities for a $856.9 million total stockholders' deficit. MAGUIRE PROPERTIES: Former CEO Sells Off Shares; Has 9.8% Stake --------------------------------------------------------------- Robert F. Maguire III, founder and former CEO of Maguire Properties, Inc., from January 29, 2010, through March 11, 2010, disposed of 4,048,153 shares of the Company's Common Stock held by him in open market transactions in the New York Stock Exchange. From January 29, 2010, through February 12, 2010, Mr. Maguire sold 618,255 shares. In the January and February transactions, the shares were sold between $1.47 and $1.69 per share. In the March transactions, the shares were sold between $1.60 and $2.53 per share. As of March 11, 2010, Mr. Maguire held 5,216,946 shares or roughly 9.8% of the Company's common stock. The stake represents 5,216,946 limited partnership units -- OP Units -- of Maguire Properties that are redeemable by Mr. Maguire for an equal number of shares of common stock of Maguire Properties. Mr. Maguire also owns an additional 1,331,937 OP Units that are not currently redeemable for shares of common stock of the Company. Under the terms of the Company's charter, Mr. Maguire may not beneficially own more than 9.8% of the Company's outstanding common stock. The Maguire OP agreement of limited partnership in turn prohibits Mr. Maguire from redeeming OP Units of Maguire OP if such redemption would cause Mr. Maguire to beneficially own an amount of common stock in excess of the Ownership Limit. The OP Units beneficially owned by Mr. Maguire, excluding 220,000 OP Units beneficially owned by Mr. Maguire, are pledged to Wachovia Bank, N.A., as a portion of the collateral securing a personal loan made by Wachovia to Mr. Maguire. The loan matures on July 15, 2011, unless it is retired earlier. If an event of default occurs and is not cured or waived, Wachovia could foreclose on its collateral, including the OP Units that are pledged. Mr. Maguire said the shares of Common Stock and OP Units were acquired primarily for investment purposes. Mr. Maguire regularly reviews and evaluates strategies with respect to his various investments, including his investment in the Company. As a consequence of the review, evaluation and other factors that Mr. Maguire deems relevant, he may consider various alternatives which may ultimately lead to one or more possible transactions with respect to his investment in the Company. A full-text copy of Mr. Maguire's disclosure is available at no charge at http://ResearchArchives.com/t/s?5f02 About Maguire Properties, Inc. Maguire Properties, Inc. (NYSE: MPG) -- http://www.maguireproperties.com/-- is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. The Company's balance sheet at Dec. 31, 2009, revealed $3.6 billion in total assets and $4.5 billion in total liabilities for a $856.9 million total stockholders' deficit. MAGUIRE PROPERTIES: Scoggin Capital et al., Disclose Equity Stake ----------------------------------------------------------------- Cayman Islands-based Scoggin Capital Management II LLC, Scoggin International Fund, Ltd., Scoggin Worldwide Fund, Ltd., Old Bell Associates LLC, A. Dev Chodry, Scoggin LLC, Craig Effron and Curtis Schenker disclosed holding shares of Maguire Properties, Inc. common stock. As of December 31, 2009, Scoggin Capital Management II may be deemed to beneficially own 1,000,000 or roughly 2.1% of the Company shares. Scoggin International Fund held 1,440,000 or roughly 3.0% of the Company shares. Scoggin Worldwide Fund, Old Bell Associates and A. Dev Chodry may be deemed to beneficially own 120,000 or roughly 0.2% of the Company shares. Scoggin LLC may be deemed to beneficially hold 2,520,000 or roughly 5.2% of the Company shares. Craig Effron may be deemed to beneficially own 2,765,000 or roughly 5.8% of the Company shares. Curtis Schenker may be deemed to hold 2,657,500 or roughly 5.5% of the Company shares. Scoggin LLC is the investment manager of Scoggin Capital Management II and Scoggin International Fund, Ltd. Craig Effron and Curtis Schenker are the managing members of Scoggin LLC. Old Bellows Partners is the investment manager of Scoggin Worldwide Fund. The general partner of Old Bellows Partners LP is Old Bell Associates LLC. A. Dev Chodry is a principal of Old Bellows Partners LP. Scoggin LLC is a principal of Old Bellows Partners LP and serves as investment sub-manager for equity and event-driven investing for Scoggin Worldwide Fund. About Maguire Properties, Inc. Maguire Properties, Inc. (NYSE: MPG) -- http://www.maguireproperties.com/-- is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. The Company's balance sheet at Dec. 31, 2009, revealed $3.6 billion in total assets and $4.5 billion in total liabilities for a $856.9 million total stockholders' deficit. MAGUIRE PROPERTIES: Vanguard Group Holds 3.47% of Common Stock -------------------------------------------------------------- The Vanguard Group, Inc., disclosed that as of December 31, 2009, it may be deemed to beneficially own 1,667,976 shares or roughly 3.47% of the common stock of Maguire Properties, Inc. About Maguire Properties, Inc. Maguire Properties, Inc. (NYSE: MPG) -- http://www.maguireproperties.com/-- is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. The Company's balance sheet at Dec. 31, 2009, revealed $3.6 billion in total assets and $4.5 billion in total liabilities for a $856.9 million total stockholders' deficit. MAGUIRE PROPERTIES: Wesley Capital No Longer Holds Shares --------------------------------------------------------- Wesley Capital Management, LLC, Arthur Wrubel and John Khoury disclosed that as of December 31, 2009, they no longer held shares of Maguire Properties, Inc. common stock. The Management Company serves as investment manager or advisor of the Funds. About Maguire Properties, Inc. Maguire Properties, Inc. (NYSE: MPG) -- http://www.maguireproperties.com/-- is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. The Company's balance sheet at Dec. 31, 2009, revealed $3.6 billion in total assets and $4.5 billion in total liabilities for a $856.9 million total stockholders' deficit. MANAGEMENT SERVICES: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Management Services, Inc. 520 Main Street W. Newbury, MA 01985 Bankruptcy Case No.: 10-13556 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court District of Massachusetts (Boston) Judge: Frank J. Bailey Debtor's Counsel: John F. Davis, Esq. 900 Cummings Center Suite 207T Beverly, MA 01915 Tel: (978) 232-9640 Fax: (978) 232-9644 E-mail: john@jfdesq.com Estimated Assets: $50,001 to $100,000 Estimated Debts: $100,001 to $500,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Denise M. Dennis, president. MARSH HAWK: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Marsh Hawk Golf Club, LLC aka Ford's Colony Country Club 240 Ford's Colony Drive Williamsburg, VA 23188 Bankruptcy Case No.: 10-50632 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Eastern District of Virginia (Newport News) Judge: Not Available Debtor's Counsel: Ross C. Reeves Willcox & Savage, P.C. 1800 Bank of America Center Norfolk, VA 23510 Tel: (757) 628-5545 E-mail: rreeves@wilsav.com Estimated Assets: $10,000,000 to $50,000,000 Estimated Debts: $10,000,000 to $50,000,000 The petition was signed by Mike Tiernan, VP of Ford's Colony Country Club. Debtor-affiliate that filed a separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Ford's Colony Country Club, Inc. 10-50633 4/1/10 Assets: $1-mil. to $10-mil. Debts: $1-mil. to $10-mil. A. Marsh Hawk Golf Club's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ RC Agronomic Solutions -- $42,896 dba The Tom Rash Company 14112 Dorsetshire Court Midlothian, VA 23113 Textron Financial -- $34,505 Dept AT 40219 Atlanta, GA 31192 Virginia Food Service Group -- $26,413 7422 Ranco Road PO Box 28010 Henrico, VA 23228 GE Capital -- $18,775 James River Air Conditioning -- $17,551 Lesco/John Deere Landscape -- $15,946 James City County Treasurer -- $11,459 Footjoy -- $8,444 Callaway Golf Company -- $7,795 Smith Turf & Irrigation -- $7,550 Titleist -- $7,705 Tournament Solutions LLC -- $7,500 Davis-Garvin Agency, Inc. -- $6,739 Witt Mares -- $6,230 Waterside Fish & Produce -- $6,088 VSC Fire & Security Inc. -- $6,078 Virginia Linen Service -- $5,630 Grand Metro Builders Inc. -- $4,934 Virginia State Golf Associatio -- $4,750 Danforth Pewter -- $4,580 B. Ford's Colony's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ SunTrust Bank -- $250,000 c/o Richard Biemiller 301 Bendix Road, Suite 500 Virginia Beach, VA 23452 SunTrust Bank c/o Richard Biemiller 301 Bendix Road, Suite 500 Virginia Beach, VA 23452 William Woods -- $60,000 429A Bromley Place Wyckoff, NJ 07481 Michael Grimes -- $45,000 104 Perdido Williamsburg, VA 23188 GE Capital -- $21,069 Desloover -- $19,800 BB&T of Virginia Business -- $16,896 David Jarman -- $10,000 David Myers -- $10,000 Arthur Gillespie -- $10,000 Barry and Deborah Hammond -- $10,000 Douglas Hotard -- $10,000 F. Thomas Hughes -- $10,000 James and Dorothy Jacobsen -- $10,000 John and Rosario Robbins -- $10,000 Leonard and Elizabeth Ward -- $10,000 Mr. and Mrs. Arnold Kamm -- $10,000 Raymond and Ruth Ann -- $10,000 Richard and Ann Paroubek -- $10,000 Richard and Sally Smith -- $10,000 The Clair S. Suslick Trust -- $10,000 MARTIN ALMANZAN: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Martin Almazan 2621 S. Gardenia Pharr, TX 78577 Bankruptcy Case No.: 10-70253 Chapter 11 Petition Date: April 3, 2010 Court: United States Bankruptcy Court Southern District of Texas (McAllen) Judge: Richard S. Schmidt Debtor's Counsel: J Francisco Tinoco, Esq. Law Office of J.F. Tinoco 822 Del Oro Pharr, TX 78577 Tel: (956) 283-9200 Fax: (956) 797-0953 E-mail: tinoco@sotxlaw.com Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at: http://bankrupt.com/misc/txsb10-70253.pdf The petition was signed by (Not Available) MARY LIEBL: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Mary K. Liebl Aka Mary Liebl 729 E. Irvine Road Phoenix, AZ 85086 Bankruptcy Case No.: 10-09757 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Randolph J. Haines Debtor's Counsel: Nasser U. Abujbarah, Esq. The Law Offices of Nasser U. Abujbarah 7025 E. McDowell Road, Suite 9 Scottsdale, AZ 85257 Tel: (480) 776-6846 Fax: (480) 776-6847 E-mail: nasser@nualegal.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $570,398 while debts total $1,759,145. A copy of the Debtor's list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb10-09757.pdf The petition was signed by the Debtor. MCKINNEY WILLOW: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: McKinney Willow Wood, L.P. 6514 Tulip Lane Dallas, TX 75230 Bankruptcy Case No.: 10-41088 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Eric A. Liepins, Esq. 12770 Coit Road Suite 1100 Dallas, TX 75251 Tel: (972) 991-5591 E-mail: eric@ealpc.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 6 largest unsecured creditors is available for free at http://bankrupt.com/misc/txeb10-41088.pdf The petition was signed by Steven Topletz, managing member of General Partner. MDB PROPERTIES: Case Summary & Unsecured Creditor ------------------------------------------------- Debtor: MDB Properties, LLC 2115 Hillview Drive Laguna Beach, CA 92651 Bankruptcy Case No.: 10-14368 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Robert N. Kwan Debtor's Counsel: Arthur F. Stockton, Esq. Stockton Law Offices 8655 E. Via De Ventura Suite G200 Scottsdale, AZ 85258 Tel: (866) 682-8766 Fax: (866) 207-4082 E-mail: art@stocktonlawoffices.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 1 largest unsecured creditor filed together with the petition is available for free at http://bankrupt.com/misc/cacb10-14368.pdf The petition was signed by Michael VanRiette, managing member. MEGA PROFESSIONAL: Case Summary & 15 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Mega Professional, Inc. dba Press Box Sports Bar & Grill dba Sushi Agoura 480 N Glassell St. Anaheim, CA 92806-2813 Bankruptcy Case No.: 10-14271 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Judge: Erithe A. Smith Debtor's Counsel: John Eom, Esq. Law Office of John Eom 3700 Wilshire Boulevard, Suite 745 Los Angeles, CA 90010 Tel: (213) 387-1300 Fax: (213) 387-2300 E-mail: jjeom2000@yahoo.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 15 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb10-14271.pdf The petition was signed by Bryan Kahng, secretary. MICHAEL BRIGGS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Joint Debtor: Michael W. Briggs Emma L. Briggs 4017 Prestonwood Drive Carrollton, TX 75101 Bankruptcy Case No.: 10-41046 Chapter 11 Petition Date: 10-41046 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Joyce W. Lindauer, Esq. 8140 Walnut Hill Lane Suite 301 Dallas, TX 75231 Tel: (972) 503-4033 Fax: (972) 503-4034 E-mail: courts@joycelindauer.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by Michael W. Briggs and Emma L. Briggs. MOUNTAIN RESORT: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Mountain Resort Properties, LLC 747 Business Park Avenue, Suite 218 San Diego, CA 92131 Bankruptcy Case No.: 10-17709 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court District of Colorado (Denver) Judge: Sidney B. Brooks Debtor's Counsel: F. Kelly Smith, Esq. 216 16th Street, Suite 1210 Denver, CO 80202 Tel: (303) 592-1650 Fax: (303) 592-1701 E-mail: fkellysmith@tde.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of creditors together with its petition. The petition was signed by Barry Minkow, managing member. MUNDYS MILL: Case Summary & 2 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Mundys Mill Academy LLC 6120 Montlake Avenue McDonough, GA 30252 Bankruptcy Case No.: 10-69690 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Kenneth Mitchell, Esq. Giddens, Davidson & Mitchell P.C. Suite 300-B 5000 Snapfinger Woods Drive Decatur, GA 30034 Tel: (770) 987-7007 Fax: (770) 987-7138 E-mail: kmitchell@gdmpclaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 2 largest unsecured creditors is available for free at http://bankrupt.com/misc/ganb10-69690.pdf The petition was signed by Antonio Hurt, managing member. N & S HOSPITALITY: Case Summary & 11 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: N & S Hospitality Group, Inc. dba Super 8 Sea World Medical Center 5336 Wurzbach Road San Antonio, TX 78238 Case No.: 10-51252 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Western District of Texas (San Antonio) Judge: Leif M. Clark Debtor's Counsel: James Samuel Wilkins, Esq. Willis & Wilkins, LLP 100 W Houston Street, Suite 1275 San Antonio, TX 78205 Tel: (210) 271-9212 Fax: (210) 271-9389 E-mail: jwilkins@stic.net Total Assets: $1,000,001 to $10,000,000 Total Debts: $1,000,001 to $10,000,000 A list of the Debtor's 11 largest unsecured creditors is available for free at http://bankrupt.com/misc/txwb10-51252.pdf The petition is signed by Sharif Khan, the Debtor's president. NICHOLAS NIKITAS: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Nicholas M. Nikitas 63 River Street Plymouth, MA 02360 Bankruptcy Case No.: 10-13552 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court District of Massachusetts (Boston) Judge: Frank J. Bailey Debtor's Counsel: William T. Stevens, Esq. 130 Bishop Allen Drive, 2nd Floor Cambridge, MA 02139 Tel: (617) 354-9200 Fax: (617) 354-9201 E-mail: wtstevens@rcn.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Nicholas M. Nikitas. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Nikitas Family Inns, Inc. 10-12263 03/04/10 The Nikitas Inn of Kingston, Inc. 10-12192 03/02/10 OPTELECOM-NKF INC: KPMG LLP Raises Going Concern Doubt ------------------------------------------------------ Optelecom-NKF, Inc., filed on March 30, 2010, its annual report on Form 10-K for the year ended December 31, 2009. KPMG LLP, in McLean Va., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that Company has suffered losses from operations, has substantial debt maturing, and its viability is dependent on the success of its future operations and ability to obtain future financing. The Company reported a net loss of $2.4 million on $36.2 million of revenue for 2009, compared with a net loss of $1.8 million on $45.2 million of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $41.2 million in assets, $21.4 million of debts, and $19.8 million of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5f08 Germantown, Md.-based Optelecom-NKF, Inc., develops video network solutions for traffic monitoring and security of airports, seaports, casinos, prisons, utilities, public transit, city centers, hospitals, and corporate campuses. ORGANIC GROWING: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Organic Growing Systems, Inc. 792 Ferguson Mill Road Monticello, MS 39654 P.O. Box 126 Bremen, GA 30110 Bankruptcy Case No.: 10-50792 Chapter 11 Petition Date: April 3, 2010 Court: United States Bankruptcy Court Southern District of Mississippi (Gulfport Divisional Office) Debtor's Counsel: William R. Armstrong, Jr., Esq. William R. Armtrong, Jr., P.A. 1675 Lakeland Drive Riverhill Tower, Suite 308 Jackson, MS 39216 Tel: (601) 981-9696 Fax: (601) 981-9941 E-mail: warmstrong_1@bellsouth.net Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by Christopher J. Nichols, chairman of the board of directors. OTAY-ADEJO PROPERTIES: Case Summary & 7 Largest Unsec. Creditors ---------------------------------------------------------------- Debtor: Otay-Adejo Properties, LLC P.O. Box 530388 San Diego, CA 92153 Bankruptcy Case No.: 10-05585 Chapter 11 Petition Date: April 4, 2010 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: Kit J. Gardner, Esq. Law Offices of Kit J. Gardner 501 W. Broadway, Suite 800 San Diego, Ca 92101 Tel: (619) 525-9900 E-mail: kgardner@gardnerlegal.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of 7 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/casb10-05585.pdf The petition was signed by Juan Escandon, managing member. PALMDALE HILLS: SunCal Says Lehman Repurchase Could Block Suits --------------------------------------------------------------- Edvard Pettersson at Bloomberg News reports that SunCal Cos. said Lehman Brothers Holdings Inc. shouldn't be allowed to buy back loans that were used to fund now bankrupt projects if the repurchase is used to block its lawsuit against the failed investment bank. According to the report, lawyers representing a group of SunCal developments forced into Chapter 11 after Lehman's collapse in September 2008 said in a bankruptcy court filing that they feared Lehman might use the repurchase of the $1.5 billion in loans from Fenway Capital LLC to halt a lawsuit they brought to subordinate Lehman's claims in their estates. Bloomberg relates that Lehman said last month it will buy back the loans that Fenway Capital acquired as part of a repurchase agreement shortly before Lehman's bankruptcy. The SunCal group said it is concerned that if the loans become part of the Lehman Chapter 11 case, Lehman can seek an automatic stay against its lawsuit. LBHI and its affiliates committed to fund continuing costs necessary to preserve the value of 18 SCC Projects. The loans totaled $2.3 billion. The amounts loaned were all secured by, among other things, first priority trust deeds on the Projects' real property. The loans stopped when Lehman filed for bankruptcy. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) About Palmdale Hills SunCal Companies is a California developer. Palmdale Hills Property LLC and other units were formed to develop various residential real estate projects located throughout the western United States. Lehman Brothers Holdings Inc. and an affiliate committed to SunCal on a $2.3 billion funding for the development of various residential real estate projects. The amounts were secured by, among other things, first priority trust deeds on the projects, which include oceanlots in San Clemente, in California. LBHI stopped funding after it filed for bankruptcy in September 15, 2008. Palmdale together with affiliates, which include SunCal Bickford, and LBL-SunCal Northlake LLC, filed for Chapter 11 protection before the U.S. Bankruptcy Court for the Central District of California on Nov. 6, 2008 (Case No. 08-17206). In its petition, Palmdale estimated assets and debts of between $100,000,001 to $500,000,000. Paul J. Couchot, Esq., at Winthrop Couchot PC, represents the Debtors in their restructuring effort. PLAZA LLC: Court Approves Chapter 11 Plan; Auction on April 21 -------------------------------------------------------------- The Bankruptcy Court approved a plan of reorganization of Plaza LLC to enable it to proceed to auction its remaining office-condo units at downtown Orlando's The Plaza mixed-use building on April 21, according to Business Journal of Orlando. Slated for auction is 10th floor of Class A office space. All bidders must register by April 9 to participate in the auction that will be handled by Worldwide Auction Realty Services. Minimum bids on the space range from $205,500 for individual units to $4.8 million for the entire 61,545 square feet of space. The Plaza LLC was founded by Orlando developer Cameron Kuhn five years ago to launch his landmark downtown twin-tower Plaza complex. The Plaza LLC has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Middle District of Florida. PNN ENTERPRISE: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: PNN Enterprises, Inc. dba Rishi Village Apartments 325 S. Story Irving, TX 75060 Bankruptcy Case No.: 10-32371 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Harlin DeWayne Hale Debtor's Counsel: Eric A. Liepins, Esq. Eric A. Liepins, P.C. 12770 Coit Rd., Suite 1100 Dallas, TX 75251 Tel: (972) 991-5591 E-mail: eric@ealpc.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at http://bankrupt.com/misc/txnb10-32371.pdf The petition was signed by Patricia Kitchens, President. PONCE BUSINESS: Files for Chapter 11 Bankruptcy ----------------------------------------------- Paul Brinkmann at Business Journal of South Florida reports that Ponce Business Center filed for Chapter 11 bankruptcy, listing assets of between $1 million and $10 million, and liabilities of less than $1 million. According to records from Miami Dade County Circuit court, the Company lost a $1.9 million judgment in December to 2000 Ponce De Leon Square. 2000 Ponce is listed as a creditor in the bankruptcy case. PPM TECHNOLOGIES: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: PPM Technologies, Inc. 875 North Michigan Avenue Suite 2540 Chicago, IL 60611 Bankruptcy Case No.: 10-14795 Chapter 11 Petition Date: April 3, 2010 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Jack B. Schmetterer Debtor's Counsel: Karen J. Porter, Esq. Porter Law Network 230 West Monroe Suite 240 Chicago, IL 60606 Tel: (312) 372-4400 Fax: (312) 372-4160 E-mail: kjplawnet@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by Leroy J. Wright, chairman and CEO. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- PPM Technologies Holding, Inc. 10-14788 4/03/10 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 PRESTIGE BRANDS: Closes Tender Offer for 2012 Notes --------------------------------------------------- Prestige Brands Holdings, Inc.'s wholly-owned subsidiary Prestige Brands, Inc., commenced a cash tender offer for any and all of its 9 1/4% Senior Subordinated Notes due 2012, of which $126 million aggregate principal amount were outstanding at that time. In conjunction with the Tender Offer, Prestige Brands solicited consents to adopt proposed amendments to the indenture under which the Notes were issued, dated as of April 6, 2004, that, among other things, eliminated substantially all of the restrictive covenants and certain events of default in the Indenture, and shortened the minimum notice period for a redemption from 30 days to three business days. On March 24, 2010, the Company announced that as of 5:00 pm, New York City time, on March 23, 2010, $97,913,000 aggregate principal amount of the Notes had been validly tendered and not withdrawn, which represented 77.71% of the outstanding aggregate principal amount of the Notes. Prestige Brands accepted for purchase and payment all of such tendered Notes. As of the Consent Payment Deadline, consents from holders of 77.71% also had been received and not withdrawn, representing a sufficient amount to approve the proposed amendments, and on March 24, 2010, a supplement to the Indenture was executed effecting the proposed amendments. On March 24, 2010, Prestige Brands delivered to the trustee of the Notes irrevocable instructions to redeem, on or about April 15, 2010, all Notes that were not tendered pursuant to the Tender Offer on or before the Expiration Date. Prestige Brands has engaged BofA Merrill Lynch as Dealer Manager and Solicitation Agent for the Offer. Persons with questions regarding the Offer should contact BofA Merrill Lynch at (888) 292-0070 (toll free) or (980) 388-9217 (collect). Requests for copies of the Offer to Purchase or other tender offer materials may be directed to D.F. King & Co., Inc., the Information Agent, at (800) 769-7666 (toll-free) or (212) 269-5550 (collect), or in writing at 48 Wall Street, 22nd Floor, New York, NY 10005. About Prestige Brands Prestige Brands, Inc., markets and distributes brand name over- the-counter healthcare, personal care and household products throughout the United States, Canada and certain international markets. Key brands include Compound W(R) wart treatments, Chloraseptic(R) sore throat relief and allergy treatment products, New Skin(R) liquid bandage, Clear Eyes(R) and Murine(R) eye care products, Little Remedies(R) pediatric over-the-counter healthcare products, The Doctor's(R) NightGuard(TM) dental protector, Cutex(R) nail polish remover, Comet(R) and Spic and Span(R) household cleaners, and other well-known brands. * * * As reported in the Troubled Company Reporter on March 12, 2010, Standard & Poor's Ratings Services said that it affirmed its 'B+' corporate credit rating on Irvington, New York-based Prestige Brands Inc. The outlook is stable. RANCHO SUPERMARKET: Case Summary & 3 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Rancho Supermarket Inc. 519 Jackson Pasadena, TX 77506-2242 Bankruptcy Case No.: 10-32772 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Karen K. Brown Debtor's Counsel: E Rhett Buck, Esq. Attorney at Law 3730 Kirby Dr Ste 1200 Houston, TX 77098 713-868-9447 Fax : 713-868-6157 E-mail: erhettbuck@aol.com Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at: http://bankrupt.com/misc/txsb10-32772.pdf The petition was signed by Rubina Husain Ansari, Director. RICHARD SOLIS: Voluntary Chapter 11 Case Summary ------------------------------------------------ Joint Debtors: Richard Solis Veronica Solis 2813 Canyon Falls Drive Modesto, CA 95351 Bankruptcy Case No.: 10-91258 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Modesto) Judge: Ronald H. Sargis Debtor's Counsel: Sunita Kapoor, Esq. 4115 Blackhawk Plaza Circle #100 Danville, CA 94506 Tel: 925-736-2324 Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 The Joint Debtors did not file a list of creditors together with its petition. The petition was signed by the Joint Debtors. ROBERT PELSHAW: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Robert Lee Pelshaw PO Box 461059 Papillion, NE 68046 Bankruptcy Case No.: 10-80982 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court District of Nebraska (Omaha Office) Debtor's Counsel: Howard T. Duncan, Esq. Duncan & Davis, P.C., L.L.O. 1910 S. 72nd St., Suite 304 Omaha, NE 68124-1734 Tel: (402) 391-4904 Fax: (402) 391-0088 E-mail: cathy@hduncanlaw.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/neb10-80982.pdf The petition was signed by Robert Lee Pelshaw. ROBERT RIGGS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Robert C. Riggs dba Car Smart Auto Sales 112 Jade Avenue New Beach, CA 92662 Bankruptcy Case No.: 10-09585 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Redfield T. Baum, Sr. Debtor's Counsel: Allen D. Butler, Esq. Law Office of Allen D. Butler PC 406 E. Southern Tempe, AZ 85282 Tel: (480) 921-0626 Fax: (480) 784-4996 E-mail: abutleraz@gmail.com Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/azb10-09585.pdf The petition was signed by Robert Riggs. ROCK & REPUBLIC: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Rock & Republic Enterprises, Inc. 400 West Broadway New York, NY 10012 Bankruptcy Case No.: 10-11728 Chapter 11 Petition Date: April 1, 2010 Court: United States Bankruptcy Court Southern District of New York (Manhattan) About the Business: Based in Culver City, Rock & Republic is a fashion brand known for its pricey designer denim and other apparel. Debtor's Counsel: Alex Spizz, Esq. Arthur Goldstein, Esq. Todtman, Nachamie, Spizz & Johns, P.C. 425 Park Avenue New York, NY 10022 Tel: (212) 754-9400 Fax: (212) 754-6262 E-mail: aspizz@tnsj-law.com E-mail: agoldstein@tnsj-law.com Debtor's Special Corporate Counsel: Manderson, Schaefer & McKinlay, LLP Estimated Assets: $50,000,000 to $100,000,000 Estimated Debts: $10,000,000 to $50,000,000 The petition was signed by Geoffrey Lurie, chief restructuring officer. The Debtor did not file a list of creditors when it filed its petition. Debtor-affiliate that filed a separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Triple R, Inc. 10-11729 4/1/10 RODOLFO ZAMORA: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------------ Joint Debtors: Rodolfo Zamora DBA Central Coast Realty Maria Zamora P.O. Box 1170 Freedom, CA 95019 Bankruptcy Case No.: 10-53496 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Jose) Judge: Arthur S. Weissbrodt Debtor's Counsel: Judson T. Farley, Esq. Law Offices of Judson T. Farley 830 Bay Avenue #B Capitola, CA 95010-2173 Tel: (831) 476-1766 E-mail: judsonfarley@sbcglobal.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Joint Debtors' list of 8 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb10-53496.pdf The petition was signed by the Joint Debtors. ROCKY MOUNTAIN: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Rocky Mountain JMP, Inc. dba DQ Grill and Chill 704 Canyon Creek Drive Glenwood Springs, CO 81601-9721 Bankruptcy Case No.: 10-17633 Chapter 11 Petition Date: April 3, 2010 Court: U.S. Bankruptcy Court District of Colorado (Denver) Judge: Howard R Tallman Debtor's Counsel: Douglas C. Pearce, II, Esq. 950 Spruce Street, Suite 1C Louisville, CO 80027 Tel: (303) 661-9292 Fax: (303) 661-9555 E-mail: doug@crlpc.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by John M. Pettit, president. RQB RESORT: Goldman Seeks to Foreclose on Sawgrass Marriott ----------------------------------------------------------- Dow Jones Newswires' Kristina Doss reports that Goldman Sachs Mortgage Co., has asked a bankruptcy judge to lift the automatic stay in the bankruptcy case of RQB Resort LP so it may foreclose on the Sawgrass Marriott Resort & Cabana Club in Florida and possibly even sell it. Goldman lent RQB Resort $193 million to help buy Sawgrass. According to Dow Jones, the mortgage arm of Goldman Sachs Group Inc. said in court papers that RQB now owes it more than $196 million -- an amount the lender claims is more than the property is worth. Dow Jones relates that, although the company's current cash flow may be enough to meet its current operational needs, the lender said RQB has failed to show how it will meet its debt obligations to Goldman Sachs. "The debtors have thus failed to show that an effective reorganization is possible within any reasonable period of time," Goldman Sachs said, according to Dow Jones. Dow Jones notes that RQB said in court papers it had bought the resort in 2006 for $220.6 million and subsequently invested $30 million in upgrades. But the company, which borrowed $193 million from Goldman Sachs when it bought the resort, said that a downturn in the U.S. economy and fewer corporations booking the resort proved to be "extremely challenging." The company hasn't been able to pay Goldman Sachs since August 2009. According to Dow Jones, RQB said it hopes the bankruptcy filing will provide it an opportunity to emerge as a reorganized company in 2011, when it expects the resort industry to recover. Ponte Vedra Beach, Florida-based RQB Resort, LP, aka Sawgrass Marriott Resort & Cabana Club, filed for Chapter 11 bankruptcy protection on March 1, 2010 (Bankr. M.D. Fla. Case No. 10-01596). The Company's affiliate -- RQB Development, LP, aka Sawgrass Marriott Golf Villas & Spa -- filed a separate Chapter 11 petition. The Company estimated its assets and debts at $100,000,001 to $500,000,000. RSA COMPANY: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: RSA Company P.O. Box 849 Buda, TX 78610-0849 Case No.: 10-10910 Type of business: The Debtor is a single asset real estate. Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Western District of Texas (Austin) Judge: Judge Craig A. Gargotta Debtor's Counsel: Joseph D. Martinec, Esq. Martinec, Winn, Vickers & McElroy, P.C. 600 Congress Avenue, Suite 500 Austin, TX 78701 Tel: (512) 476-0750 Fax: (512) 476-0753 E-mail: martinec@mwvmlaw.com Total Assets: $1, 000,001 to $10,000,000 Total Debts: $1, 000,001 to $10,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition is signed by Rodney F. Mueller, a general partner at the Debtor. SAMUEL DANIELS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Samuel L. Daniels aka Sammie L. Daniels Sammy L. Daniels 5502 Mudlark Circle Powder Springs, GA 30127 Bankruptcy Case No.: 10-70078 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Judge: James Massey Debtor's Counsel: Ana Marcela Rountree, Esq. Rountree Law Firm 27 Courthouse Square Dallas, GA 30132 Tel: (770) 443-6060 Fax: (770) 443-5654 E-mail: ana@rountreelaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by Samuel L. Daniels. SLOAN ZSIROS: Case Summary & 3 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Sloan Zsiros 525 Hidden Ridge Road Encinitas, CA 92024 Bankruptcy Case No.: 10-05594 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Southern District of California (San Diego) Judge: Laura S. Taylor Debtor's Counsel: Thomas C. Nelson, Esq. 484 Prospect Street La Jolla, CA 92037 Tel: (858) 875-5092 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 3 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/casb10-05594.pdf The petition was signed by the Debtor. SNP BOAT SERVICES: Files Chapter 15 Petition -------------------------------------------- Michael Bathon at Bloomberg News reports that SNP Boat Services SA filed for Chapter 15 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-18891) from its U.S. creditors to aid its restructuring abroad. SNP Boat is a unit of the Rodriguez Group SA which makes luxury yachts. The Rodriguez Group owns 99.7% of SNP Boat. SNP Boat, based in Cannes, France, listed as much as $500 million in both assets and debt in documents filed in bankruptcy court in Fort Lauderdale, Florida. Chapter 15 is the section of the bankruptcy code designed to block U.S. lawsuits against a foreign company with assets in the U.S. as it restructures in its home country. According to Bloomberg, a commercial court has approved the Rodriguez Group's recovery plan, bringing an end to one year of protection from creditors. Rodriguez shares will resume trading in Paris on April 8. SOURCE INTERLINK: Names Michael Sullivan as New CEO & Director -------------------------------------------------------------- According to News-Press.com, Source Interlink Cos. Inc. said it selected Michael L. Sullivan as its new chief executive officer and director. Mr. Sullivan will lead the Company's turnaround. Mr. Sullivan serves on the board of the International Periodical Distributors Association, the GMDC Merchandise Advisory Board and the Magazine Publishers of America's Magazine Retail Advisory Council, report notes. Bonita Springs, Florida-based Source Interlink Companies, Inc., -- http://www.sourceinterlink.com/-- is a U.S. distributor of home entertainment products and services and one of the largest publishers of magazines and online content for enthusiast audiences. Source Interlink Media, LLC, publishes more than 75 magazines and 90 related Web sites. Source Interlink and 17 affiliates filed for bankruptcy on April 27, 2009 (Bankr. D. Del. Case No. 09-11424). Judge Kevin Gross presides over the case. David Eaton, Esq., and David Agay, Esq., at Kirkland & Ellis LLP; and Laura Davis Jones, Esq., Mark M. Billion, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl Young Jones in Wilmington, Delaware, serve as bankruptcy counsel. Meolis & Company LLC serves as the Debtors' financial advisors, while Kurtzman Carson Consultants LLC is the Debtors' claims and notice agent. As of April 24, 2009, the Debtors had $2,436,005,000 in total assets and $1,995,504,000 in total debts. SOUTHWEST WHOLESALE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Southwest Wholesale Supply Co., Inc. 943 AT&T Center Parkway San Antonio, TX 78219 Case No.: 10-51271 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Western District of Texas (San Antonio) Judge: Leif M. Clark Debtor's Counsel: David S. Gragg, Esq. Langley & Banack, Inc Trinity Plaza II 745 E Mulberry, Suite 900 San Antonio, TX 78212 Tel: (210) 736-6600 Fax: (210) 735-6889 E-mail: dgragg@langleybanack.com Total Assets: $1,000,001 to $10,000,000 Total Debts: $10,000,001 to $50,000,000 A list of the Debtor's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/txwb10-51271.pdf The petition is signed by Anthony H. Koch, the Debtor's president and chief executive officer. STALLION OILFIELD: S&P Withdraws 'CCC+' Corp. Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'CCC+' corporate credit rating and other ratings on Stallion Oilfield Services Ltd. The company recently emerged from bankruptcy and as a result of the restructuring, a new parent company was formed, Stallion Oilfield Holdings Inc. (CCC+/Watch Pos/--). There is no longer any debt at Stallion Oilfield Services Ltd. STAY 190: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Stay 190 Ltd. 2311 Texas Drive, Suite 105 Irving, Tx 75062 Bankruptcy Case No.: 10-42413 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: D. Michael Lynn Type of Business: Single Asset Real Estate Debtor's Counsel: John C. Leininger, Esq. Bryan Cave LLP 2200 Ross Avenue, Suite 3300 Dallas, TX 75201 Tel: (214) 721-8040 E-mail: john.leininger@bryancave.com Estimated Assets: $10,000,000 to $50,000,000 Estimated Debts: $10,000,000 to $50,000,000 The petition was signed by Suhas Naik, Manager of Sava Ventures LLC, GP of Gen. Partner Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Holiday 360, Ltd. 10-42412 4/5/10 Assets: $10-mil. to $50-mil. Debts: $10-mil. to $50-mil. Hotel 635 Beltline, LP 10-42415 4/5/10 Assets: $10-mil. to $50-mil. Debts: $10-mil. to $50-mil. Stay 190's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Eagle Circuits -- $31,034 10820 Sanden Drive Dallas, TX 75238 One Build, LP -- $57,727 US Food Service Inc. -- $15,481 Intercontinental Hotels Group -- $15,201 Meritax Landmark -- $10,550 TravisWolff -- $8,500 Guest Supply -- $7,333 Reliant Energy -- $6,612 TravelCLICK, Inc. -- $6,000 Connected Hotel -- $4,056 Travelers -- $2,671 Phoenix Distribution & Marketing -- $2,475 LLC Micros Systems, Inc. -- $2,258 REEd Plumbing, Inc. -- $2,031 Lands' End Business Outfitters -- $1,911 City of Plano - Utilities -- $1,877 EcoLab -- $1,110 Standard Coffee Service Co. -- $1,528 RSI Refrigerated Specialists -- $1,487 Wortham Brothers, Inc. -- $1,455 SUPEVALU INC: S&P Affirms 'BB-' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'BB-' corporate credit rating on SUPEVALU Inc. The outlook remains negative. "S&P assigned a 'BB+' issue rating on the company's amended and extended senior secured bank facility with a recovery rating of '1', indicating S&P's expectations for a very high recovery (90%- 100%) in the event of a payment default," said Standard & Poor's credit analyst Ana Lai. The unsecured bonds remain at 'B+' or one notch below the corporate credit rating, with a recovery rating of '5' reflecting S&P's expectations for a modest recovery (10%-30%) recovery in the event of a payment default. While S&P recognizes the company now has improved cushion under its bank facility covenants following the amendment, the company still has sizeable bond refinancing needs over the next few years. Additionally, the company's balance sheet remains highly leveraged. Pro forma for the amendment, SUPERVALU's bank facility will be extending only $1.5 billion of the current $2 billion revolving credit facility to 2015. Additionally, the company will be extending only $500 million of the existing term B loan facility due in 2012, to 2015. Pro forma for these changes, SUPERVALU's bank facility will consist of the following: * A $600 million revolving credit facility 1 due June 2011; * A $1.5 billion revolving credit facility 2 due April 2015; * $366 million term loan A due June 2011; * $502 million term loan B 1 due June 2012; and * $500 million term loan 2 due October 2015. The bank facility covenants have been changed to increase the cushion. The maximum total leverage covenant has been changed to 4.25x with two step downs scheduled at the end of December 2011 and December 2012. The minimum interest coverage ratio has also been amended to 2.20x with changes scheduled until December 2012. Following the amendment, based on its operating expectations for the company, S&P estimate the EBITDA covenant cushion under its total leverage covenant will increase to around 17% from its original estimate of less than 10% (based on the prior covenant). The rating on Eden Prairie, Minn.-based SUPERVALU Inc. reflects the company's participation in the highly competitive supermarket industry, its recent weak operating performance, limited free operating cash flow given its sizable capital expenditure needs, its leveraged balance sheet, and its older acquired store base compared with large industry peers. The company's large scale, good market positions, broad geographic reach, and format diversity partly mitigate those weaknesses. SUTTER BUTTES: Case Summary & 9 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Sutter Buttes Ranch, LLC 9413 S. Butte Road Sutter, CA 95982 Bankruptcy Case No.: 10-28621 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Eastern District of California (Sacramento) Judge: Ronald H. Sargis Debtor's Counsel: Julia P. Gibbs, Esq. 1329 Howe Avenue #205 Sacramento, CA 95825-3363 Tel: (916) 646-2800 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company says that assets total $5,931,200 while debts total $2,657,969.21. A copy of the Company's list of 9 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/caeb10-28621.pdf The petition was signed by Lucyna M. Kumar, managing member. TALBOTS INC: Completes BPW Acquisition --------------------------------------- The Talbots, Inc., and BPW Acquisition Corp. jointly disclosed the closing of Talbots acquisition of BPW. In addition to the closing of the BPW acquisition, Talbots also successfully completed its previously announced related transactions which include: (i) the repurchase of approximately 29.9 million shares held by Talbots former majority stockholder, Aeon (U.S.A.), Inc.; (ii) the repayment of all outstanding debt to Aeon totaling approximately $486.5 million plus accrued interest and other costs; and (iii) a new up to $200 million senior secured revolving credit facility arranged by GE Capital Markets and agented by GE Capital, Corporate Retail Finance. "We are delighted to welcome BPW shareholders and warrantholders, and appreciate their support throughout this process," said Trudy F. Sullivan, Talbots President and Chief Executive Officer. "The completion of this merger and related transactions marks an important milestone for Talbots. With an improved financial foundation and capital structure in place, we believe we are well- positioned for future growth and value-creation for all our stakeholders." Gary S. Barancik, Chief Executive Officer of BPW, said, "We are pleased by the outcome of this transaction, and we thank BPW shareholders and warrantholders for their endorsement of this opportunity to participate in a company positioned for long-term profitable growth." The exchange ratio for the merger transaction is 0.9853 Talbots shares per each BPW share. As a result approximately 38,633,657 Talbots shares will be issued to BPW shareholders in the merger. As previously announced, Talbots also completed its offer to exchange BPW warrants for Talbots shares or warrants to acquire Talbots shares. Based on the preliminary results of the elections and subject to confirmation of the validity of elections made in the exchange offer and final proration calculations, the aggregate exchange offer consideration currently estimated to be paid to participating BPW warrantholders consists of 2,845,199 Talbots shares and 17,242,750 warrants to acquire Talbots shares. This is based on preliminary elections to receive warrants to acquire Talbots shares in respect of 30,562,093 public BPW warrants, and elections to receive Talbots shares in respect of 1,037,907 public BPW warrants. Based on the merger exchange ratio of 0.9853 Talbots shares per each BPW share, the newly issued warrants to acquire Talbots shares will have an exercise price of $14.85 per Talbots share. The final results of the elections and proration calculations are expected to be announced on or about Friday, April 9, 2010. As a result of these transactions, shares of BPW will cease trading on the American Stock Exchange effective prior to the open of trading on Thursday, April 8, 2010. Net proceeds to Talbots from the BPW merger of approximately $333.1 million, combined with a drawdown of $125 million under the GE senior secured revolving credit facility, were used to pay in full all outstanding indebtedness to Aeon. At the close of the transactions, Talbots total common shares outstanding are approximately 67.7 million, reflecting the shares of Talbots common stock issued to BPW shareholders and warrantholders and the repurchase of all Aeon's approximately 29.9 million Talbots shares. Dewey & LeBoeuf LLP represented the independent Audit Committee of the Talbots Board of Directors. Day Pitney LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP represented Talbots. Wachtell, Lipton, Rosen & Katz and Akin Gump Strauss Hauer & Feld LLP represented BPW. Barclays Capital and Perella Weinberg Partners LP were financial advisors to the independent Audit Committee of the Talbots Board of Directors. About Talbots Inc. Hingham, Massachusetts-based The Talbots, Inc. (NYSE:TLB) is a specialty retailer and direct marketer of women's apparel, shoes and accessories. At the end of third quarter 2009, the Company operated 589 Talbots brand stores in 46 states, the District of Columbia, and Canada. Talbots brand on-line shopping site is located at http://www.talbots.com/ As of October 31, 2009, the Company had $839,703,000 in total assets, including $479,741,000 in total current assets, against total current liabilities of $483,687,000; long-term debt less current portion of $20,000,000; related party debt less current portion of $241,494,000; deferred rent under lease commitments of $124,126,000; deferred income taxes of $28,456,000; other liabilities of $132,501,000; resulting in stockholders' deficit of $190,561,000. TERRACE POINTE: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Terrace Pointe Apartments I, LLC aka Terrace Pointe Apartments 11305 N. 51st Street Tampa, FL 33617 Case No.: 10-07946 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Amy Denton Harris, Esq. Stichter, Riedel, Blain & Prosser, P.A. 110 E Madison Street, Suite 200 Tampa, FL 33602-4700 Tel: (813) 229-0144 Fax: (813) 229-1811 E-mail: aharris.ecf@srbp.com Estimated Assets: $10,000,001 to $50 million Estimated Debts: $10,000,001 to $50 million The petition was signed by Ronald L. Glas, the company's Manager. Debtor-affiliates filing separate Chapter 11 petitions: Filing Entity Case No. Date ------ -------- ---- Terrace Pointe Apartments II, LLC 10-07947 04/05/10 Assets: $10,000,001 to $50 million Debts: $10,000,001 to $50 million Terrace Pointe Apartments III, LLC 10-07949 04/05/10 Assets: $10,000,001 to $50 million Debts: $10,000,001 to $50 million Amberton Apartments, LLC 10-03402 02/18/10 Brentwood Apartments Tampa, LLC 10-03334 02/17/10 Brookside Tampa, LCC 09-28510 12/15/09 Central Park II, LLC 10-_____ 02/19/10 Central Park/Vouge Limited Partnership 10-03566 02/19/10 Palma Cela Apartments, LLC 10-00166 01/06/10 River Park Naples Limited Partnership 10-01837 01/28/10 RSG Family-Rivertree Landing Apartments 10-03604 02/19/10 The RSG Family Limited Partnership Gordon River 10-01837 01/28/10 The Debtor did not file its list of largest unsecured creditors when it filed its petition. THEODORE CARTER: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: Theodore R Carter Judy P Carter 9600 Velvetleaf Circle San Ramon, CA 94582 Bankruptcy Case No.: 10-43818 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court Northern District of California (Oakland) Judge: Leslie J. Tchaikovsky Debtor's Counsel: Scott J. Sagaria, Esq. Law Offices of Scott J. Sagaria 333 W San Carlos Street #1700 San Jose, CA 95110 Tel: 408-279-2288 E-mail: sjsagaria@sagarialaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Joint Debtors say that assets total $3,681,617 while debts total $4,657,765. A copy of the Joint Debtors' list of 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb10-43818.pdf The petition was signed by the Joint Debtors. THOMAS CHRISTOPHERSON: Case Summary & 20 Largest Unsec Creditors ---------------------------------------------------------------- Debtor: Thomas R. Christopherson 1863 Caldwell Cleveland, OH 44118 Bankruptcy Case No.: 10-12971 Chapter 11 Petition Date: April 4, 2010 Court: United States Bankruptcy Court Northern District of Ohio (Cleveland) Judge: Randolph Baxter Debtor's Counsel: Richard E Hackerd, Esq. 1370 Ontario St., Suite 2000 Cleveland, OH 44113-1726 Tel: (440) 526-8780 Fax: (866) 201-0249 E-mail: Richard@Hackerd.com Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 According to the schedules, the Debtor has assets of $1,769,368 against debts of $5,576,875 as of the filing of the petition. A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ohnb10-12971.pdf The petition was signed by Thomas R. Christopherson. TOMAR TRUCKING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Tomar Trucking 8420 Warren Drive Pomfret, MD 20675 Bankruptcy Case No.: 10-16676 Chapter 11 Petition Date: March 29, 2010 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Judge: Thomas J. Catliota Debtor's Counsel: John Douglas Burns, Esq. 6303 Ivy Lane, Ste. 102 Greenbelt, MD 20770 Tel: (301) 441-8780 E-mail: burnslaw@burnslaw.algxmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $100,001 to $500,000 A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/mdb10-16676.pdf The petition was signed by Mary Elaine Proctor, president of the Company. TONEATA MARTOCCIO: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Toneata Leona Martoccio dba Surfwood RV & Campground dba Parkview Properties 30100 Mulholland Hwy Agoura Hills, CA 91301 Bankruptcy Case No.: 10-13830 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Central District Of California (San Fernando Valley) Judge: Geraldine Mund Debtor's Counsel: Pro Se Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb10-13830.pdf The petition was signed by Toneata Leona Martoccio. TOPAZ CAPITAL: Case Summary & 15 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Topaz Capital and Investments, Inc. 30945 Cuvaison Drive Bonsall, CA 92003 Bankruptcy Case No.: 10-04983 Chapter 11 Petition Date: March 29, 2010 Court: United States Bankruptcy Court Southern District of California (San Diego) Judge: Laura S. Taylor Debtor's Counsel: Raymond R. Lee, Esq. Suppa, Trucchi & Henein, LLP 3055 India Street San Diego, CA 92103 Tel: (619) 297-7330 E-mail: leesd@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 According to the schedules, the Company has assets of $5,000,000, and total debts of $17,335,197. A full-text copy of the Debtor's petition, including a list of its 15 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/casb10-04983.pdf The petition was signed by Larry D. Gonzales, president of the Company. TRAHRAEG HOLDING: Case Summary & 2 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Trahraeg Holding Corporation 211 E. Everett St Dixon, IL 61021 Bankruptcy Case No.: 10-71515 Chapter 11 Petition Date: March 29, 2010 Court: United States Bankruptcy Court Northern District of Illinois (Rockford) Judge: Manuel Barbosa Debtor's Counsel: Linda Godfrey, Esq. 475 Executive Parkway Rockford, IL 61107 Tel: (815) 397-2006 Fax: (815) 394-1955 E-mail: lgodfrey@crosbylawfirmonline.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $2,288,948, and total debts of $1,382,215. A full-text copy of the Debtor's petition, including a list of its 2 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/ilnb10-71515.pdf The petition was signed by Orval L. Gearheart Jr., president of the Company. TRIBUNE CO: Lenders Want Rule 2004 Exam on Centerbridge ------------------------------------------------------- Pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure, the Credit Agreement Lenders seek leave from the Court to conduct discovery on Centerbridge Partners, L.P., Centerbridge Credit Advisors LLC and their affiliates relating to Tribune Company's stock purchases and the merger consummated in 2007, including the consideration and proposal of alternatives to those transactions. Jaime N. Luton, Esq., at Young Conaway, Stargatt & Taylor, LLP, counsel to the Credit Agreement Lenders, relates that: (a) Centerbridge asserts that it owns 37% of the senior notes issued by Debtor Tribune Company, a stake equating to a claim of approximately $475 million; and (b) Centerbridge has attacked the propriety of the Transactions throughout the Debtors' chapter 11 cases, most recently asserting that the Transactions constituted a fraudulent conveyance that siphoned off billions of dollars of value that should be available to fund the recoveries of the Debtors' pre-LBO lenders. "In particular, the Credit Agreement Lenders are entitled to discovery regarding how Centerbridge contemporaneously viewed the Transactions and how it viewed the assets of Tribune Company and its subsidiaries," Mr. Luton avers. "The Credit Agreement Lenders expect that Centerbridge has in its possession its own contemporaneous analyses and related documents confirming the propriety of the very transactions it now challenges," he adds. Mr. Luton contends that Centerbridge's own files likely will demonstrate that nobody, not even Centerbridge, foresaw the economic hurricane that swamped the Debtors after consummation of the independent Transactions in April and December 2007. In a separate filing, the Credit Agreement Lenders seek the Court's authority to file under seal unredacted version of the Motion of Credit Agreement Lenders for Leave to Conduct Discovery and publicly file a redacted version of the 2004 Motion. The Credit Agreement Lenders assert that the 2004 Motion contains certain confidential information from documents that may not be used in a court filing unless filed under seal pursuant to the provisions of the Court's December 15, 2009 order (i) authorizing the Debtors to establish a document depository and directing the Official Committee of Unsecured Creditors to deliver certain documents to the Depository pursuant to Rule 2004 of the Federal Rule of Bankruptcy Procedure and (ii) establishing settlement negotiation protections. The Credit Agreement Lenders are individual creditors in connection with holdings of indebtedness governed by Credit Agreement, dated as of May 17, 2007, by and among Tribune, lenders, and certain financial institutions as administrative agent, syndication agent, co-documentation agents, and joint lead arrangers and joint bookrunners. A list of the Credit Agreement Lenders is available for free at: http://bankrupt.com/misc/Tribune_HBD&YCST3rd.pdf About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08- 13141). The Debtors proposed Sidley Austion LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIBUNE CO: Lazard Work Now Include TVFN Business Review -------------------------------------------------------- Tribune Co. and its units seek the Court's authority to supplement their application to employ Lazard Freres & Co. LLC as financial advisor for the limited purpose of modifying the existing retention to encompass investment banking and financial advisory services relating to certain discrete transactions the Debtors are currently evaluating with respect to the Television Food Network partnership, which are described in a supplemental engagement letter dated as of March 5, 2010. Recently, Tribune Company has been presented with an opportunity to participate in the launch of a new cable television network with its existing business partner, Scripps Networks Interactive, involving TVFN, in which Tribune and Scripps are each partners. Scripps has proposed contributing the majority of the assets and liabilities of the Fine Living Network, LLC to TVFN, and the business to which those assets and liabilities relate will, after that contribution, be re-branded and launched as The Cooking Channel. The Debtors maintain that although the services are similar to the services currently performed by Lazard under the Original Application, the transactions described in the Supplemental Engagement Letter are not covered by the Existing Engagement Agreement and were not included within the scope of services to be provided by Lazard. Specifically, under the supplemental engagement letter, Lazard will assist the Debtors' management in: (a) analyzing the business, operations and financial projections of TVFN; (b) analyzing the assets contemplated to be contributed to TVFN in connection with the launch of TCC; (c) analyzing the business, operations, and financial projections of TCC; (d) the valuation analysis of TVFN, both prior to and after the contribution of FLN assets and liabilities; (e) analyzing the potential financial impact on Tribune of meeting its proportional requirement of TVFN and thus retaining its current 31.3% interest in TVFN or of abstaining from investing and suffering economic dilution; (f) negotiations with Scripps relating to the launch of TCC; (g) discussions with various creditor constituencies regarding Tribune's analysis and recommendations; and (h) in any other reasonable requests related to evaluation and negotiations with respect to the transactions. In consideration of Lazard's services under the Supplemental Engagement Letter, the Debtors have agreed to a flat fee of $75,000 payable upon the earlier of: (i) the time when the Tribune Company invests in or contributes additional capital or other assets to TVFN; (ii) the time when the Board of Directors of Tribune Company has determined not to invest in or contribute additional capital or other assets to TVFN; (iii) September 30, 2010; and (iv) termination of the agreement by the Debtors. The Debtors will also reimburse Lazard for its reasonable and documented expenses for not more than $50,000. A full-text copy of Lazard's March 5 Engagement Letter is available for free at: http://bankrupt.com/misc/Tribune_LazardMarchEngagmt.pdf About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08- 13141). The Debtors proposed Sidley Austion LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIBUNE CO: Retained Professionals Have Billed $138 Million ----------------------------------------------------------- In the 15 months since Tribune Company and its affiliates filed for bankruptcy, law firms and other professionals have billed them $138 million, or about one-quarter of the company's cash flow last year, an analysis of court documents shows, Michael O'neal of The Los Angeles Times, reported. Sidley Austin, Tribune's lead counsel, take alone is pushing $25 million, the newspaper added. The LA Times, however, noted that the Tribune spending is hardly unusual. Major bankruptcy cases in recent years -- like Enron ($793 million), United Airlines ($296 million) and Delphi (just under $400 million) -- have been colossally expensive, and the Lehman Bros. case will dwarf all of those, the newspaper pointed out. In 2009, Judge Kevin Carey of the U.S. Bankruptcy Court for the District of Delaware warned lawyers in Tribune case that they had better think twice about charging more than $1,000 an hour, the report related. With the exception of Judge Carey's early flash of concern, neither he nor the U.S. Bankruptcy Trustee overseeing fees in the Tribune case have blinked at the millions of dollars flowing to lawyers each month, the LA Times noted. The newspaper added that the only serious challenge to the Tribune fees has come from junior bondholders who have contested an out- of-court agreement under which Tribune paid $25 million to cover professional fees incurred in just the first 10 months of the case by the banks that provided the financing for the company's failed 2007 leveraged buyout. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08- 13141). The Debtors proposed Sidley Austion LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TWIN WINGS: Files for Chapter 11 Bankruptcy Protection ------------------------------------------------------ Jim Hammerand, staff writer at Business Journal of Minneapolis/St. Paul, reports that Twin Wings of Minneapolis filed for Chapter 11 bankruptcy protection, owing $1.8 million to 17 creditors and listing no more than $50,000 in assets. According to the report, the Company said it owes more than $1.2 million to North American Banking Co. in Minneapolis; about $440,000 to landlord Block E Realty of Eden Prairie; $50,000 to Minneapolis law firm Leonard, Street & Deinard; and about $23,000 to Sysco Foods in St. Paul. The Company listed a $35,000 obligation to the Minnesota Department of Revenue for sales and use taxes. Twin Wings of Minneapolis owns Block E Hooters that operates a restaurant. US FIDELIS: Judge Freezes Owners' Personal Assets ------------------------------------------------- Matthew Hathaway at St. Louis Post-Dispatch reports that U.S. Bankruptcy Judge Charles E. Rendlen III on Wednesday issued a temporary order that freezes the personal assets of US Fidelis owners Darain and Cory Atkinson and halts most lawsuits against the brothers. The order, sought by creditors, expires July 8. According to the report, David Warfield, Esq., a lawyer representing a creditors committee, said the order was necessary to preserve assets the Atkinsons owe to US Fidelis and -- by extension -- the company owes to creditors, including hundreds of consumers. In support of the order, Mr. Warfield filed with the court a financial report stating the Atkinsons were paid about $217 million in shareholder distributions from 2004 through last year. In addition, the filing stated the brothers received loans from the company totaling about $75 million in 2008 and 2009. The report notes that Norman Pressman, Esq., Darain Atkinson's lawyer in the bankruptcy case, told Judge Rendlen that he proposed a settlement last month at a meeting with the Missouri attorney general's office and lawyers for other interested parties. According to the Dispatch, Mr. Warfield said after the hearing that he is cautiously optimistic about Pressman's offer. "We're seeing the effort, but we're not seeing the money," he said. "And it's all about seeing the money." Wentzville, Missouri-based US Fidelis, Inc., is a marketer of vehicle service contracts developed by independent and unrelated companies. The Company filed for Chapter 11 bankruptcy protection on March 1, 2010 (Bankr. E.D. Mo. Case No. 10-41902). Robert E. Eggmann, Esq., at Lathrop & Gage, assists the Company in its restructuring effort. According to the schedules, the Company has assets of $74,386,836, and total debts of $25,770,655. VALEANT PHARMACEUTICALS: Moody's Puts 'Ba3' Rating on Senior Notes ------------------------------------------------------------------ Moody's Investors Service assigned a rating of Ba3 to the new senior unsecured note offering of Valeant Pharmaceuticals International. At the same time Moody's affirmed Valeant's existing B1 Corporate Family Rating, Ba3 Probability of Default Rating, SGL-2 Speculative Grade Liquidity Rating and Ba3 rating for Valeant's existing $365 million senior unsecured notes. The rating outlook remains stable. Proceeds from the offering are expected to be used for general corporate purposes including business development and the redemption of the remaining outstanding portion of the 3% convertible notes. Valeant's B1 Corporate Family Rating reflects the company's relatively limited size and scale compared with other rated specialty pharmaceutical companies, as well as the lack of critical mass in any key therapeutic categories. The rating reflects Valeant's solid growth and operating performance since the implementation of the company's 2008 restructuring initiative, which has been successfully executed, to date. The restructuring has resulted in good cost controls and an enhanced strategic focus in the dermatology and neurology business segments. The rating also reflects the company's good product and geographic diversity, as well as positive pipeline momentum attributable to the regulatory filing of retigabine in both the U.S. and Europe. Although Valeant has exhibited solid operating performance, the rise in debt associated with the transaction is expected to moderate certain key financial metrics including debt to EBITDA, CFO/Debt and FCF/Debt. Although this transaction will strengthen Valeant's cash balances, a substantial portion of these proceeds are likely to be used to fund future acquisitions. The pace of future business development remains uncertain, as well as the company's tolerance for incremental leverage. Moody's believes that sustainable long-term growth appears dependent on acquisitions and retigabine. Failure to obtain regulatory approval for retigabine would represent a strategic setback, potentially causing the company to accelerate its search for external growth. Ratings assigned: -- Ba3 (LGD4, 57%) rating on $350 million senior unsecured notes due 2020 Ratings affirmed: -- B1 Corporate Family Rating -- Ba3 Probability of Default Rating -- SGL-2 Speculative Grade Liquidity Rating Ratings affirmed with LGD point-estimate revision: -- Ba3 (LGD4, 57%) rating on $365 million senior unsecured notes due 2016 Moody's does not rate Valeant's 3% convertible subordinated notes due 2010 or its 4% convertible subordinated notes due 2013. Moody's last rating action on Valeant took place on May 29, 2009, when Moody's assigned a rating of Ba3 to Valeant's senior unsecured notes, as well as a B1 Corporate Family Rating, Ba3 Probability of Default Rating and SGL-2 Speculative Grade Liquidity Rating. Headquartered in Aliso Viejo, California, Valeant Pharmaceuticals International [NYSE: VRX] is a global specialty pharmaceutical company. Valeant reported approximately $830 million of total revenues during 2009. VALEANT PHARMACEUTICALS: S&P Raises Corp. Credit Rating to 'BB-' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its corporate credit rating on Aliso Viejo, California-based Valeant Pharmaceuticals International to 'BB-' from 'B+'. The outlook is stable. At the same time, S&P assigned its 'BB-' (same as the corporate credit rating) issue-level rating to the company's proposed $350 million of senior unsecured notes due 2020, and assigned a recovery rating of '3', indicating its expectation of meaningful (50% to 70%) recovery of principal in the event of payment default. S&P raised the issue-level rating on the existing senior unsecured notes to 'BB-' from 'B+'. The recovery rating remains '3'. S&P also raised the issue-level rating on the company's subordinated 3% and 4% convertible notes to 'B' from 'B-'. The recovery rating on the notes remains '6'. "The upgrade reflects successful execution of its restructuring strategy that has resulted in a narrower, but still geographically diverse, footprint; acquisitions to strengthen its product portfolio and to develop further its dermatology and neurology franchises; and cost reductions," said Standard & Poor's credit analyst Michael G. Berrian. "This has enabled the company to generate steady positive free cash flow that has been used to reduce both debt and leverage, and has also resulted in operating margins improving to 42% as of Dec. 31, 2009, from 26% in the prior year." S&P's ratings on specialty pharmaceutical company Valeant Pharmaceutical International reflect a thin product pipeline, a continued reliance on acquisitions for growth, and a weak internal research and development program. These factors continue to outweigh Valeant's diverse product portfolio and adequate liquidity. Valeant's weak business risk profile reflects a thin pipeline, with only two products in Phase III (both of which were acquired with Dow), while two current products, Diastat and Cesamet, have near-term risks of competitor entry. While multiple international acquisitions over the past 15 months have helped to bolster its pipeline and to grow its dermatology franchise, S&P expects Valeant to continue making additional tuck-in acquisitions as it focuses on shoring up its pipeline and product portfolio. Still, the company will be challenged in its integration efforts and ability to quickly bring new products to market. Through a global footprint, Valeant manufactures and distributes a wide range of specialty pharmaceutical products (49% of revenues), branded generics, and over the counter pharmaceutical products. The stable outlook reflects S&P's expectations that the successful execution of its restructuring strategy will result in sustained cash flow generation and stable operating margins over the near- term. Moreover, the company is not overly leveraged for its rating category and recent partnerships and asset purchases have helped to bolster its pipeline and product portfolio. S&P expects the company to continue to make additional tuck-in acquisitions to help offset deterioration in Efudex and Diastat because of generic entry, and the loss of certain ribavirin royalties. An increase in sustained leverage to more than 4x due to a large debt financed acquisition, or a decrease in FFO/TD to below 20%, possibly resulting from additional generic competition, would likely result in a downgrade. The potential for an upgrade is limited by the need to maintain credit metrics indicative of an intermediate financial risk profile, which S&P believes will take more than one year, considering the active acquisition program and the company's ongoing need for new products. VENTURES AT STONEBRIDGE: Case Summary & Creditors List ------------------------------------------------------ Debtor: Ventures at Stonebridge Ranch, Ltd. PO Box 6209 McKinney, TX 75071 Bankruptcy Case No.: 10-41093 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Joyce W. Lindauer, Esq. 8140 Walnut Hill Lane Suite 301 Dallas, TX 75231 Tel: (972) 503-4033 Fax: (972) 503-4034 E-mail: courts@joycelindauer.com Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at: http://bankrupt.com/misc/txeb10-41093.pdf The petition was signed by James Chen, President. VICTORY TOWNHOUSE: Case Summary & 17 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Victory Townhouse Commons-DE, LLC 3659 E. Thousand Oaks Blvd. Thousand Oaks, CA 91362 Bankruptcy Case No.: 10-13867 Chapter 11 Petition Date: April 2, 2010 Court: United States Bankruptcy Court Central District Of California (San Fernando Valley) Judge: Maureen Tighe Debtor's Counsel: M Jonathan Hayes, Esq. Law Office of M Jonathan Hayes 9700 Reseda Bl Ste201 Northridge, CA 91324 Tel: (818) 882-5600 Fax: (818) 882-5610 E-mail: jhayes@polarisnet.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb10-13867.pdf The petition was signed by Mark Kaufman, managing member. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Variel Commons-DE, LLC 10-11108 1/31/10 VINCENT RANDOLPH SCHMIDT: Voluntary Chapter 11 Case Summary ----------------------------------------------------------- Debtor: Vincent Randolph Schmidt 1921 Gibb Shoals Road Greer, SC 29650 Bankruptcy Case No.: 10-02243 Chapter 11 Petition Date: March 29, 2010 Court: United States Bankruptcy Court District of South Carolina (Spartanburg) Judge: Helen E. Burris Debtor's Counsel: Robert H. Cooper, Esq. 3523 Pelham Road, Suite B Greenville, SC 29615 Tel: (864) 271-9911 E-mail: bknotice@thecooperlawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its 20 largest unsecured creditors when it filed its petition. The petition was signed by Mr. Schmidt. VIVAKOR INC: McGladrey & Pullen Raises Going Going Concern Doubt ---------------------------------------------------------------- Vivakor, Inc., filed on March 30, 2010, its annual report on Form 10-K for the year ended December 31, 2009. McGladrey & Pullen, LLP, in Cedar Rapids, Iowa, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company's ability to become a profitable operating company is dependent upon obtaining financing adequate to fulfill its research and market introduction activities, and achieving a level of revenues adequate to support the Company's cost structure. The Company reported a net loss of $1,945,259 on $149,417 of revenue for 2009, compared with a net loss of $1,031,788 on $194,700 of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $3,471,371 in assets, $3,410,942 of debts, and $60,375 of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5f07 Coralville, Iowa-based Vivakor, Inc., is a transdisciplinary research company that develops products in the fields of molecular medicine, electro-optics, biological handling and natural and formulary compounds. WESTLAND DEVCO: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Westland Devco, LP aka Westland Petroglyphs Watershed Strom Cloud Sundoro South Grasslands 201 Third Street, Suite 500 Albuquerque, NM 87102 Bankruptcy Case No.: 10-11166 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Judge: Christopher S. Sontchi Debtor's Counsel: Norman L. Pernick, Esq. E-mail: bankruptcy@coleschotz.com Patrick J. Reilley, Esq. E-mail: preilley@coleschotz.com Cole, Schotz, Meisel, Forman & Leonard, 500 Delaware Avenue, Suite 1410 Wilmington, DE 19801 Tel: (302) 652-3131 Fax: (302) 652-3117 Debtor's Corporate & Finance Attorneys: Katten Muchin Rosenmann LLP Debtor's Financial Advisor: Navigant Capital Advisors, LLC Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $100,000,001 to $500,000,000 The petition was signed by Bruce V. Cook, Executive Vice President, Secretary and General Counsel of Westland Holdco, Inc., Managing General Partner of Westland Devco, LP. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Jones Day Legal Fees $241,466 222 East 41st Street New York City, NY 10017 DW Turner Inc. Trade Debt $135,000 400 Gold Avenue SW, 12th Floor Albuquerque, NM 87102 InterLegis, Inc. Trade Debt $96,205 1801 North Lamar Street, Suite 201 Dallas, TX 75202 Happold Consulting Ltd Trade Debt $63,370 Bohannan Huston, Inc. Trade Debt $50,774 Deloitte & Touche, LLP Professional Fees $45,000 Heads Up Landscape Trade Debt $35,334 Hultt Zollars, Inc. Trade Debt $31,985 SWA Group Trade Debt $24,458 Errol L. Montgomery & Trade Debt $22,801 Associates Inc. Modrall Sperling Roehl P.A. Trade Debt $19,566 Vaughn Weeden Creative, Inc. Trade Debt $16,949 MSHC Partners, Inc. Trade Debt $11,857 Ronald R. Gastelum Consulting Fees $10,000 Kovach Group of Companies Trade Debt $10,000 KTGY Group, Inc. Trade Debt $9,030 Robert L. Rivera Lobbying $8,551 On-Time Performance Trade Debt $8,448 Rodey, Dickason, Sloan, Akin Legal Fees $5,000 & Robb, P.A. White & Case Legal Fees $4,114 WILCO 1136: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Wilco 1136, Inc. 1720 SW 9 St. Boca Raton, FL 33486 Bankruptcy Case No.: 10-18828 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Paul G. Hyman, Jr. Debtor's Counsel: Wendell T Locke, Esq. Locke Law, P.A. PO Box 841035 Pembroke Pines, FL 33084 Tel: (954) 382-8858 Scheduled Assets: $411,361 Scheduled Debts: $15,391,239 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by Alexander Tapie, director. WILLIAM LINDSEY: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: William Edwin Lindsey dba Lindsey & Associates aka Bill Lindsey aka William E. Lindsey 826 Loop Road Knoxville, TN 37934 Bankruptcy Case No.: 10-31694 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Eastern District of Tennessee (Knoxville) Judge: Richard Stair, Jr. Debtor's Counsel: Michael H. Fitzpatrick, Esq. Jenkins & Jenkins Attorneys, PLLC 2121 First Tennessee Plaza 800 S. Gay St. Knoxville, TN 37929 Tel: (865)524-1873 Fax: (865) 524-2440 E-mail: mhf@jlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Debtor did not file its list of largest unsecured creditors when it filed its petition. The petition was signed by William Edwin Lindsey. WILLIAM LYON HOMES: Posts Net Loss for Third Consecutive Year ------------------------------------------------------------- William Lyon Homes last week filed its annual report on Form 10-K for the fiscal year ended December 31, 2009. William Lyon had total assets of $860,099,000 against total liabilities of $701,900,000, resulting in stockholders' equity of $158,199,000. The Company posted a net loss for the third consecutive year. Net loss attributable to William Lyon Homes was $20,525,000 for 2009, a decline from $111,638,000 for 2008 and $349,408,000 for 2007. Operating revenue continued to slide -- $309,243,000 for 2009 from $526,078,000 for 2008 and $1,105,357,000 for 2007. From 2007 through 2009, the Company temporarily suspended the development, sales and marketing activities at certain of its projects. The Company concluded that this strategy was necessary under the prevailing market conditions at the time and will allow the Company to market the properties at some future time when market conditions may have improved. As markets continue to improve, management continues to evaluate and analyze the market place to potentially activate temporarily suspended projects in 2010 and beyond. The Company said its ability to meet its obligations on its indebtedness will depend to a large degree on its future performance which in turn will be subject, in part, to factors beyond its control, such as prevailing economic conditions, mortgage and other interest rates, weather, the occurrence of events such as landslides, soil subsidence and earthquakes that are uninsurable, not economically insurable or not subject to effective indemnification agreements, availability of labor and homebuilding materials, changes in governmental laws and regulations, and the availability and cost of land for future development. A full-text copy of the Company's annual report on Form 10-K is available at no charge at http://ResearchArchives.com/t/s?5eac About William Lyon Homes Based in Newport Beach, California, William Lyon Homes and subsidiaries -- http://www.lyonhomes.com/-- are primarily engaged in designing, constructing and selling single family detached and attached homes in California, Arizona and Nevada. * * * As reported by the Troubled Company Reporter on November 25, 2009, Standard & Poor's Ratings Services raised its corporate credit rating on William Lyon Homes to 'CCC' from 'CCC-' and removed it from CreditWatch, where it was placed with positive implications on Oct. 30, 2009. At the same time, S&P raised its rating on the company's senior unsecured notes to 'CC' from 'D'. The outlook is developing. "S&P raised its rating on William Lyon Homes because S&P believes that near-term liquidity pressure has eased somewhat following the partial funding of a secured term loan and reduced maturing credit facility debt," said credit analyst James Fielding. "However, this privately held homebuilder remains very highly leveraged and may face challenges repaying or refinancing intermediate-term debt maturities if its business prospects don't improve in the interim." WILLIAM MESHIER: Voluntary Chapter 11 Case Summary -------------------------------------------------- Joint Debtors: William T. Meshier Nancy A. Meshier 5345 E. Mclellan Rd #43 Mesa, AZ 85205 Bankruptcy Case No.: 10-09639 Chapter 11 Petition Date: April 5, 2010 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtor's Counsel: Kevin J. Rattay, Esq. Kevin J Rattay Plc 3200 N. Central Avenue, Suite 2000 Phoenix, AZ 85012 Tel: 602-248-1066 Fax: 602-248-0522 E-mail: kjr@rattaylaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Joint Debtors did not file a list of creditors together with its petition. The petition was signed by the Joint Debtors. WOODMARK DEVELOPMENT: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Woodmark Development, LLC 2201 Timberloch Place, STE 110 The Woodlands, TX 77380 Bankruptcy Case No.: 10-32913 Chapter 11 Petition Date: April 5, 2010 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Marvin Isgur Debtor's Counsel: Leonard H Simon, Esq. Pendergraft & Simon L.L.P. 2777 Allen Parkway, Suite 800 Houston, TX 77019 Tel: (713) 737-8207 Fax: (832) 202-2810 E-mail: lsimon@pendergraftsimon.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,000 to $10,000,000 A list of the Company's 3 largest unsecured creditors is available for free at: http://bankrupt.com/misc/txsb10-32913.pdf The petition was signed by J. Mark Dooley, Manager. W.R. GRACE: To Supply Polypropylene Catalysts to Borealis AG ------------------------------------------------------------ BankruptcyData.com reports that W. R. Grace & Co. announced a new multi-year agreement to supply polypropylene catalysts to Borealis AG, a leading provider of chemical and innovative plastics solutions. Financial terms were not disclosed. The catalysts are used in the production of polypropylene, a plastic polymer that is a versatile substitute for wood, metal, glass and other plastics. The Company's polypropylene catalysts are used to make specialty plastics for applications in automobile parts, household appliances and consumer product packaging. "This agreement is a reflection of our ongoing strategic direction to expand into the polypropylene catalyst segment through greater collaboration with a technology leader," remarked Tony Dondero, vice president and general manager of the Company's Davison Specialty Catalysts and Process Technologies division. "We are working together to meet the growing demands for this versatile polymer." About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace and its debtor affiliates, with the support of the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants' Representative and the Official Committee of Equity Security Holders, have submitted a proposed Chapter 11 plan of reorganization. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. The Plan confirmation hearing wrapped up on January 25. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) XERIUM TECHNOLOGIES: Combined Hearing on Prepack Plan on May 12 --------------------------------------------------------------- Contemporaneous with the filing of the Chapter 11 cases of Xerium Technologies, Inc., and its debtor affiliates, the Debtors filed a Prepackaged Joint Plan of Reorganization and an accompanying Disclosure Statement. The Debtors, before the Petition Date, solicited acceptances and rejections of the Plan from parties entitled to vote on the Plan. The Debtors tell Judge Kevin Carey of the U.S. Bankruptcy Court for the District of Delaware that (i) their solicitation of acceptances and rejections complied with all applicable non- bankruptcy laws, rules and regulations governing the adequacy of disclosure in connection with the solicitation and (ii) the Disclosure Statement provides "adequate information" as defined in Section 1125(a) of the Bankruptcy Code. At the Debtors' behest, Judge Carey will convene a hearing on May 12, 2010, at 4:00 p.m. (Eastern Daylight Time), to consider confirmation of the Plan, approval of the Disclosure Statement, and approval of the solicitation procedures and form of ballots. The Court, also at the behest of the Debtors, approved these additional dates related to the plan confirmation process: Commencement of Solicitation March 2, 2010 Voting Deadline March 26, 2010 Commencement Date March 30, 2010 Mailing of Combined Notice April 6, 2010 Plan & Disc. Statement Objection Deadline May 4, 2010 Plan & Disc. Statement Reply Deadline May 10, 2010 Combined Plan & Disc. Statement Hearing May 12, 2010 The Debtors' counsel, John J. Rapisardi, Esq., at Cadwalader, Wickersham & Taft LLP, in New York -- john.rapisardi@cwt.com -- told Judge Carey that consideration of the approval of the Disclosure Statement, the Solicitation Procedures and the Ballots, together with the confirmation of the Plan will promote judicial economy and conserve the Debtors' resources. Any objections to the adequacy of the Disclosure Statement, approval of the Solicitation Procedures, approval of the Ballots, confirmation of the Plan and any amendments or modifications will (i) be in writing, (ii) comply with the Federal Rules of Bankruptcy Procedures and the Local Rules of Bankruptcy Practice and Procedure of the U.S. Bankruptcy Court for the District of Delaware, (iii) set forth the name of the objector, the nature and amount of any or interest asserted by the objector against the estate or property of the Debtors, (iv) state with particularity the legal and factual basis for that objection, and if possible, provide a proposed modification to the Plan or Disclosure Statement that would resolve the objection, and (v) be served so as to be received no later than the May 4 Objection Deadline. Prepetition Indebtedness and Capital Structure * Credit Facility Xerium is party to an Amended and Restated Credit and Guaranty Agreement, dated as of May 30, 2008, by and among Xerium; XTI LLC, a Delaware limited liability company; Xerium Italia S.p.A., an Italian societa per azioni; Xerium Canada Inc., a New Brunswick (Canada) corporation resulting from the amalgamation of Stowe-Woodward/Mount Hope Inc. and Weavexx Corporation; Huyck.Wangner Austria GmbH, an Austrian limited liability company (formerly known as Huyck Austria GmbH); and Xerium Germany Holding GmbH, a German limited liability company, as borrowers, certain subsidiaries of the borrowers as guarantors, various financial institutions and other persons from time to time, as lenders, and Citicorp North America, Inc., as administrative agent and collateral agent. The Credit Facility consists of (i) a $50 million revolving credit facility and (ii) seven term loans with an aggregate original principal balance of $650 million. The Prepetition Revolver matures on November 19, 2011, and the Prepetition Term Loans mature on May 19, 2012. As of January 1, 2010, $28.1 million was outstanding on the Prepetition Revolver, and $583.6 million was outstanding on the Prepetition Term Loans. To secure the obligations under the Credit Facility, pursuant to that certain Pledge and Security Agreement, dated as of May 19, 2005, and pursuant to other collateral documents, certain Xerium affiliates granted the lenders a security interest in, and continuing liens on, substantially all of those companies' assets. * Derivative Financial Instruments Xerium enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known cash amounts, the value of which are determined by interest rates or foreign exchange rates. Those instruments include certain interest rate swaps to hedge variable interest related to the Credit Facility and foreign exchange contracts to protect the value of certain assets and obligations. With respect to the interest rate swaps: (a) Xerium was counterparty to that certain Confirmation, dated November 16, 2007, by and among Xerium and Deutsche Bank AG, with an original notional amount of $132,808,000; (b) Xerium Canada was counterparty to a Confirmation, dated November 17, 2007, by and among Xerium Canada (as successor-in-interest to Weavexx Corporation) and DB, with an original notional amount of C$27,233,000; (c) Xerium Canada was counterparty to a Confirmation, dated November 17, 2007, by and among Xerium Canada (as successor-in-interest to Stowe-Woodward/Mount Hope Inc.) and DB, with an original notional amount of C$35,908,000; (d) XTI was counterparty to a Confirmation, dated November 17, 2007, by and among XTI and DB, with an original notional amount of EUR77,723,000; (e) Xerium was counterparty to a 1992 ISDA Master Agreement (Multicurrency - Cross Border) and Schedule, dated November 16, 2007, and a Confirmation, dated November 19, 2007, in each case, by and among Xerium and Merrill Lynch Capital Services, Inc., with an original notional amount of $132,808,000; and (f) XTI was counterparty to a 1992 ISDA Master Agreement (Multicurrency - Cross Border) and Schedule, dated November 16, 2007, and a Confirmation, dated November 19, 2007, in each case, by and among XTI and MLCS, with an original notional amount of EUR77,723,000. Xerium's obligations under the DB Swaps were unsecured. Its obligations under the MLCS Swaps were secured by certain prepetition collateral, ratably with Xerium's obligations under the Credit Facility. The DB Swaps and the MLCS Swaps have been terminated. * Unsecured Lines of Credit (a) R&D Facility As of December 31, 2009, Xerium Austria has outstanding borrowings in an amount equal to EUR1.2 million pursuant to four unsecured term loans from Osterreichische Forschungsforderungsgesellschaft mbH (Austrian Research Promotion Agency, the national funding institution for applied industrial research in Austria. Each R&D Facility loan agreement requires Xerium Austria to use loan proceeds for specified research and development projects and in instances of default, Xerium Austria must assign to the R&D Facility Lender all receivables derived from the specified research and development projects. Each R&D Facility bears interest at a rate of 2% per annum, which is subsidized by the Austrian government, and the facilities have maturity dates of June 30, 2011, September 30, 2011, September 30, 2011, and March 31, 2014. (b) Umbrella Facility Pursuant to an Umbrella Facility Agreement, dated July 15, 2008, by and among Xerium Technologies Limited, as borrower, and DB, as lender, Xerium Austria, Xerium Italy, and Xerium Germany draw funds under a Guarantee Facility or a Margin Facility. The "Umbrella Facility" consists of: -- a EUR3,000,000 revolving credit facility that may be used for general corporate and working capital purposes; -- a EUR1,000,000 guarantee facility that may be used through indemnities or bank guarantees; and -- a EUR1,000,000 margin facility that may be used in connection with foreign exchange transactions. In connection with the Umbrella Facility Agreement, non-Debtor Xerium UK provided a guarantee in the amount of EUR5,000,000 that permits companies, for which Xerium UK is indirectly or directly the majority shareholder, to execute bank guarantees under the Guarantee Facility and to execute foreign exchange contracts under the Margin Facility. As of January 1, 2010, Xerium Austria, Xerium Italy, and Xerium Germany have been allocated for use portions of the Margin Facility and the Guarantee Facility in the amounts of EUR100,000, EUR0, and EUR0, respectively. Prepackaged Chapter 11 Filing Xerium and 15 of its affiliates filed prepackaged Chapter 11 petitions with the U.S. Bankruptcy Court for the District of Delaware on March 30, 2010. The Debtors' Plan provides for the allowance of Credit Facility Claims, Secured Swap Termination Claims, and Unsecured Swap Termination Claims. In satisfaction of those claims, the holders will receive their ratable shares of: (a) $10 million in Cash, (b) $410 million in principal amount of new second-lien term notes to be issued pursuant to an Amended and Restated Credit Facility, and (c) 82.6% of the shares of the new common stock to be issued by Reorganized Xerium on the Effective Date (prior to dilution by (i) equity incentive awards granted post Effective Date under the New Management Incentive Plan and (ii) the exercise of New Warrants that will be issued under the Plan). All other allowed claims will be unimpaired. Moreover, pursuant to the Plan, on the Effective Date, the existing common stock of Xerium will be canceled and holders of allowed equity interests in Xerium will receive their ratable shares of (a) a number of shares of new common stock of Reorganized Xerium that is equal to 17.4% of the shares of new common stock to be issued and distributed on the Effective Date (or reserved for future distribution in respect of equity awards granted prepetition) and (b) New Warrants to purchase up to 10% of the issued and outstanding shares of new common stock of Reorganized Xerium as of the Effective Date (on a fully diluted basis). The Plan further provides that on the Effective Date the Debtors' postpetition financing facility will convert into an $80 million first-lien revolving credit and term loan exit facility. On March 2, 2010, the Debtors commenced the solicitation of votes on the Plan and delivered copies of the Plan, the Disclosure Statement and the appropriate ballots to all holders of claims as of the February 23, 2010, record date established in the Disclosure Statement in the classes entitled to vote on the Plan. More than 92% of the creditors entitled to vote in Class 2 and 100% of the creditors entitled to vote in Class 5 submitted ballots with respect to the Plan. As certified by the Debtors' solicitation and tabulation agent, The Garden City Group, Inc., the Plan has been overwhelmingly accepted by the two classes entitled to vote. Specifically, 96.68% in amount and 97.73% in number of claims voted in Class 2, and 100% in amount and 100% in number of claims voted in Class 5, to accept the Plan. A full-text copy of the Debtors' Chapter 11 Plan, amended as of March 30, 2010, is available for free at: http://bankrupt.com/misc/xeriumplan0320.pdf A full-text copy of the Disclosure Statement explaining the Plan is available for free at: http://bankrupt.com/misc/xeriumds.pdf Full-text copies of supplements, dated March 30, 2010, to the Plan is available for free at: http://bankrupt.com/misc/xeriumplansupp.pdf Full-text copies of supplements, dated March 30, 2010, to the Disclosure Statement is available for free at: http://bankrupt.com/misc/xeriumdssupp.pdf A full-text copy of Garden City Group's certification with respect to the solicitation and tabulation of votes for the Debtors' Plan is available for free at: http://bankrupt.com/misc/xeriumvotescert.pdf Purpose of the Financial Restructuring The purpose of the financial restructuring is to reduce the Debtors' leverage and to enhance their long-term growth and competitive position, Mr. Light tells the Court. Specifically, the financial restructuring is designed to reduce the notional value of the Debtors' total outstanding debt obligations from approximately $640 million as of December 31, 2009, including swap termination liabilities, to a notional value currently estimated to be approximately $480 million on a pro forma basis as of the consummation of the financial restructuring, he says. The Debtors will also be able to improve their liquidity by extending the maturity dates on the Prepetition Revolver and the Prepetition Term Loans from 2011 and 2012, to 2015, he adds. The Debtors believe that the financial restructuring will reassure customers and suppliers that they are financially sound, reduce any reluctance to conduct business with them and allow them to improve the terms of transactions with their customers and suppliers. Furthermore, resolution of liquidity concerns and completion of the financial restructuring will allow the Debtors' management to focus its attention on operations and long-term planning rather than on short-term financial management, Mr. Light further tells the Court. Therefore, the Debtors believe that the proposed financial restructuring pursuant to the Plan is in the best interests of the Debtors and their creditors. About Xerium Technologies Based in Raleigh, North Carolina, Xerium Technologies, Inc. (NYSE: XRM), manufactures and supplies two types of consumable products used primarily in the production of paper: clothing and roll covers. The Company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 32 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,300 employees. Xerium Technologies and certain subsidiaries filed for Chapter 11 on March 30, 2010 (Bankr. D. Del. Lead Case No. 10-11031). Judge Kevin J. Carey presides over the cases. John J. Rapisardi, Esq.; George A. Davis, Esq.; and Sharon J. Richardson, Esq., at Cadwalader, Wickersham & Taft LLP; and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., serve as bankruptcy counsel. Brian Fox, Michelle Campbell, and Michael Hartley at AlixPartners, LLC, serve as the Debtors' restructuring advisors. Stephen Ledoux and Daniel Gilligan at Rothschild Inc. serve as the Debtors' investment bankers. Garden City Group Inc. is the Debtors' claims agent. Xerium Technologies disclosed total assets of $693,511,000 and total debts of $813,168,000 in its petition. Bankruptcy Creditors' Service, Inc., publishes XERIUM TECHNOLOGIES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Xerium Technologies and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) XERIUM TECHNOLOGIES: Wants Schedules Filing Until June 28 --------------------------------------------------------- Xerium Technologies, Inc., and its debtor affiliates ask the Court to extend until June 28, 2010, their deadline to file schedules of assets and liabilities, statements of financial affairs and schedules of contracts and leases. In the event that the effective date of their Joint Prepackaged Plan of Reorganization occurs prior to the expiration of the proposed extended deadline, the Debtors ask the Court to permanently waive the requirement to file their Schedules. The Debtors point out that they have negotiated and solicited votes on their prepackaged Plan, which has been overwhelmingly accepted by each voting class. Moreover, the Debtors aver that compilation of the Schedules would be unnecessarily burdensome given that they would have to compile information from books, records and documents located in multiple locations. The information is voluminous and assembling the necessary information would require a significant expenditure of time and effort on the part of the Debtors and their employees when those resources would be best used effectuating the Debtors' reorganization efforts, John J. Rapisardi, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, further aver. Accordingly, the Debtors believe that an extension and ultimate waiver of the requirement to file the Schedules is appropriate and will assist the Debtors in the expeditious confirmation of the widely-supported prepackaged Plan with minimal disruption to their businesses. About Xerium Technologies Based in Raleigh, North Carolina, Xerium Technologies, Inc. (NYSE: XRM), manufactures and supplies two types of consumable products used primarily in the production of paper: clothing and roll covers. The Company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 32 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,300 employees. Xerium Technologies and certain subsidiaries filed for Chapter 11 on March 30, 2010 (Bankr. D. Del. Lead Case No. 10-11031). Judge Kevin J. Carey presides over the cases. John J. Rapisardi, Esq.; George A. Davis, Esq.; and Sharon J. Richardson, Esq., at Cadwalader, Wickersham & Taft LLP; and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., serve as bankruptcy counsel. Brian Fox, Michelle Campbell, and Michael Hartley at AlixPartners, LLC, serve as the Debtors' restructuring advisors. Stephen Ledoux and Daniel Gilligan at Rothschild Inc. serve as the Debtors' investment bankers. Garden City Group Inc. is the Debtors' claims agent. Xerium Technologies disclosed total assets of $693,511,000 and total debts of $813,168,000 in its petition. Bankruptcy Creditors' Service, Inc., publishes XERIUM TECHNOLOGIES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Xerium Technologies and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) XERIUM TECHNOLOGIES: Wants to Waive Section 341 Meeting ------------------------------------------------------- Section 341(a) of the Bankruptcy Code requires that the U.S. Trustee convene and preside at a meeting of creditors, and Section 341(b) authorizes the U.S. Trustee to convene a meeting of equity security holders. However, Section 341(e) provides that, "[n]othing subsections (a) and (b), the court, on the request of a party-in-interest and after notice and hearing, for cause may order that the United States trustee not convene a meeting of creditors or equity security holders if the debtor has filed a plan as to which the debtor solicited acceptances prior to the commencement of the case." The purpose of the 341 Meeting is to provide parties-in-interest with a meaningful opportunity to examine the debtor and obtain important information about the debtor. John J. Rapisardi, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, notes that, in this case, parties-in-interest have negotiated and agreed upon a restructuring of the Debtors' pursuant to the Plan, acceptances of which was solicited prior to the Petition Date. Accordingly, parties-in-interest are not likely to receive any significant benefit from the 341 Meeting, he asserts. In this regard, the Debtors ask the Court to direct the U.S. Trustee not to convene a meeting of creditors or equity security holders provided that the Plan effective date occurs on or before June 28, 2010. The Debtors also ask the Court to direct the U.S. Trustee not to appoint a committee of creditors or equity security holders in their Chapter 11 cases provided that the Effective Date occurs before June 28. About Xerium Technologies Based in Raleigh, North Carolina, Xerium Technologies, Inc. (NYSE: XRM), manufactures and supplies two types of consumable products used primarily in the production of paper: clothing and roll covers. The Company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 32 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,300 employees. Xerium Technologies and certain subsidiaries filed for Chapter 11 on March 30, 2010 (Bankr. D. Del. Lead Case No. 10-11031). Judge Kevin J. Carey presides over the cases. John J. Rapisardi, Esq.; George A. Davis, Esq.; and Sharon J. Richardson, Esq., at Cadwalader, Wickersham & Taft LLP; and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., serve as bankruptcy counsel. Brian Fox, Michelle Campbell, and Michael Hartley at AlixPartners, LLC, serve as the Debtors' restructuring advisors. Stephen Ledoux and Daniel Gilligan at Rothschild Inc. serve as the Debtors' investment bankers. Garden City Group Inc. is the Debtors' claims agent. Xerium Technologies disclosed total assets of $693,511,000 and total debts of $813,168,000 in its petition. Bankruptcy Creditors' Service, Inc., publishes XERIUM TECHNOLOGIES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Xerium Technologies and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ZALE CORP: Citi Canada to End Credit Card Program on June 30 ------------------------------------------------------------ In its Form 10-Q for the quarter ended January 31, 2010, Zale Corporation disclosed that it was expecting to receive written notice of termination from Citi Cards Canada Inc. related to the Private Label Credit Card Program Agreement, dated as of March 1, 2007, between Citibank and Zale Canada Co., one of the Company's wholly owned subsidiaries. On April 1, 2010, the subsidiary received the notice of Citibank's intent to terminate the Agreement effective June 30, 2010. The Company has initiated discussions with other parties with respect to new customer financing arrangements to replace the Agreement when it expires. Under the Agreement, Citibank provides financing for the Company's Canadian customers to purchase merchandise through private label credit cards. The Agreement also enables the Company to write credit insurance for its Canadian customers. About Zale Corp. Dallas, Texas-based Zale Corporation (NYSE: ZLC) -- http://www.zalecorp.com/-- is a specialty retailer of diamonds and other jewelry products in North America, operating roughly 1,900 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corporation's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at www.zales.com, www.zalesoutlet.com and www.gordonsjewelers.com As reported by the Troubled Company Reporter on February 10, 2010, The Deal.com's Sara Behunek reported that analysts said bankruptcy looms for Zale if it fails to restructure its debt and put in place a solid merchandising strategy. ZALE CORP: Has Until April 30 to Pay $6 Mil. to Citi-South Dakota ----------------------------------------------------------------- Zale Corp. disclosed that Citibank (South Dakota), N.A., would terminate a Merchant Services Agreement, dated as of July 10, 2000, between Citibank and two of the Company's wholly owned subsidiaries, in 180 days, unless the Company paid Citibank approximately $6 million on or before April 1, 2010 for a shortfall to the minimum volume of credit sales as set forth in the Agreement. On March 29, 2010, Citibank and the Company agreed to extend the April 1, 2010 payment deadline to April 30, 2010. The Company continues to evaluate available alternatives to the Agreement. About Zale Corp. Dallas, Texas-based Zale Corporation (NYSE: ZLC) -- http://www.zalecorp.com/-- is a specialty retailer of diamonds and other jewelry products in North America, operating roughly 1,900 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corporation's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at www.zales.com, www.zalesoutlet.com and www.gordonsjewelers.com As reported by the Troubled Company Reporter on February 10, 2010, The Deal.com's Sara Behunek reported that analysts said bankruptcy looms for Zale if it fails to restructure its debt and put in place a solid merchandising strategy. ZALE CORP: Centerbridge, TPG and Golden Gate in Bidding War ----------------------------------------------------------- The New York Post's James Covert reports that Centerbridge Partners has joined a bidding war for a stake in Zale Corp. The Post has learned that Centerbridge -- which is already involved in a battle to acquire the Extended Stay hotel chain -- has sent representatives to Zale's headquarters in Dallas to discuss a potential investment. Sources also told the Post that Zale is slated to meet with representatives from TPG and Golden Gate Capital. "It looks like a three-horse race now," one person close to the talks told the Post, noting that others, including Sun Capital and Apollo Management, appear to have dropped out after making "low- ball" offers. The Post says Zale is looking to raise as much as $150 million to fund operations as the banking crisis has limited financing options. The Post also says the deal is expected to come within the next two weeks, and the winning bidder is likely to get seats on Zale's boat, as well as warrants for new stock that will dilute current shareholders. According to the Post, Centerbridge -- headed by buyout kings Jeffrey Aronson and former Blackstone partner Mark Gallogly -- didn't respond to requests for comment. ZAYAT STABLES: Files Suit vs. Fifth Third Over Default Notice ------------------------------------------------------------- Janet Patton at The Lexington (Ky.) Herald-Leader reports Ahmed Zayat has filed an adversary complaint Monday, asking U.S. Bankruptcy Judge Donald H. Steckroth of the U.S. Bankruptcy Court for the District of New Jersey to hold Fifth Third Bank to promises the bank allegedly made in July 2009 to restructure loans made to Mr. Zayat. Herald-Leader says the bank claims Mr. Zayat defaulted on a loan payment, and he now owes the entire outstanding principal -- more than $34 million as of February -- lent to him to build his racing stable. The report recalls that the bank, to satisfy the debt, sought to take over his stable of more than 200 horses, including Eskendereya. Mr. Zayat declared bankruptcy in New Jersey in February to block that move. Ms. Patton reports that Mr. Zayat wants the Court to declare that the default declaration is void and that "no principal, interest, default interest or other payments are presently due and owing from Zayat Stables to the Bank with respect to the loans." The report also notes Mr. Zayat asked the Court for compensatory, consequential and punitive damages for "multimillion-dollar lender liability claims arising out of a long-standing pattern of misleading, deception and predatory lending practices." The report also notes that Mr. Zayat said in his suit the bank continually reassured him they had a deal in place, even after sending a notice of default in late August. Based on those reassurances, Mr. Zayat withdrew horses from sales at Keeneland. He had planned to sell those horses to make loan payments. The report also recalls the Court in March approved a plan worked out by Mr. Zayat and the bank to continue stable operations through May 1, the day of the Kentucky Derby at Churchill Downs in Louisville. The report further relates the Kentucky Horse Racing Commission has ruled there is no reason to suspend Mr. Zayat's license to race in Kentucky based on information that he lent money to two brothers who later were convicted of bookmaking. About Zayat Stables Hackensack, New Jersey-based Zayat Stables owns of 203 thoroughbred horses. The horses, which are collateral for the bank loan, are worth $37 million, according an appraisal mentioned in a court paper. Ahmed Zayat said in a court filing that he personally invested $40 million in the business. The Company filed for Chapter 11 bankruptcy protection on February 3, 2010 (Bankr. D. N.J. Case No. 10-13130). The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. * Keith Northern Named One of People to Watch-2010 -------------------------------------------------- Keith Northern, Managing Director with NHB Advisors, Inc., has been recognized as one of the few "People to Watch -2010" in the country by the nationally respected publication Turnarounds & Workouts. Mr. Northern is the chief of the Auto Dealer Group. Expert in Auto Dealer industry operating and providing cash flow enhancement and control. Appointed receiver and/or liquidating agent for 50+ domestic and internationally franchised dealerships for Ford, Chrysler, GM, Toyota, and Hyundai, as well as high-end distributors Bentley and Lamborghini. NHB Advisors was honored in 2009 for "Outstanding Turnaround Firms" with a record 15th consecutive appearance on the list, cementing the firm's reputation as "The Premier Middle Market Turnaround Firm". About NHB Advisors NHB Advisors, Inc. -- http://www.nhbteam.com/-- is a turnaround and crisis management firm. It provides financial advisory, investment banking and fiduciary services to financially challenged companies throughout America. * Nicholas Barrett & Associates Promotes Atty. Patricia Davis ------------------------------------------------------------- Nicholas Barrett Esq., President and founder of Nicholas Barrett & Associates, (NBA) disclosed the promotion of Attorney Patricia A. Davis to Senior Real Estate Manager. Ms. Davis concentrates in the areas of bankruptcy, title law, foreclosure, evictions and real estate transactional law and will be assuming many of the responsibilities previously handled by Thomas Iddings, who left the firm to pursue his consulting business. "We're privileged to have so many dedicated and talented attorneys in our midst at Nicholas Barrett & Associates," added Barrett. "Pat has demonstrated distinction in her field and has played an important role in helping NBA achieve widespread recognition for its commitment to excellence. Our clients are sure to benefit from her new and enhanced role within the firm." Ms. Davis received her B.S. from Providence College and her J.D. from Northeastern University School of Law. She is a member of the American Bankruptcy Institute and is licensed to practice in RI, MA, and CT. She joined NBA in 2007 and has held various positions of responsibility during her tenure. Nicholas Barrett & Associates was recently honored as a back-to- back winner of the prestigious LPS Default Solutions Summit Award. As both a 2007 and 2008 recipient, NBA is the only firm in New England to receive such a distinction for excellence in Foreclosure and Bankruptcy. About Nicholas Barrett & Associates Over the last three decades, Nicholas Barrett & Associates has evolved into a premier creditor's rights firm dedicated to the representation of the mortgage banking industry. NBA has been recognized consistently for its performance by industry outsourcers as well as their clients throughout New England in the areas of Foreclosure, Bankruptcy, Evictions, Collections (commercial and consumer), Origination and REO Closings, and Real Estate Litigation. * Winston Bankruptcy Partner Jumps to Cooley -------------------------------------------- Former Winston & Strawn LLP partner Keith A. McDaniels has joined the bankruptcy and restructuring practice at Cooley Godward Kronish LLP, where he will focus on representing creditors committees and debtors, according to Bankruptcy Law360. * BOOK REVIEW: Rupert Murdoch: Creator of a Worldwide Empire ------------------------------------------------------------ Author: Jerome Tuccille Publisher: Beard Books Softcover: 304 pages List Price: $34.95 With his recent purchase of the Dow Jones Company, parent company of the Wall Street Journal, Rupert Murdoch added another piece to his global communications empire and again showed why he is the preeminent media mogul in the world. While many books have been written about Murdoch, Rupert Murdoch: Creator of a Worldwide Empire, is among the most enlightening because it was written in 1989 and chronicles Murdoch's activities during the 1980s, a critical period of time when he built his empire in the United States. It was a time when Murdoch "bought and sold properties with dizzying speed," notes the author. Two of the most notable acquisitions were his purchase of Twentieth Century Fox from Marvin Davis and the purchase of Triangle Publications from Walter Annenberg, but many other acquisitions are recounted in this fascinating book. It was also a time when Murdoch fiercely battled regulators, legislators, labor unions, competitors, and even public opinion. These battles are recounted also. In writing Rupert Murdoch: Creator of a Worldwide Empire, the author had access to a multitude of sources inside and outside the Murdoch organization, including Murdoch himself. Tucille demonstrates Murdoch's mastery at taking advantage of tax and financing techniques to borrow more than his rivals without diluting the value of his holdings. Murdoch's business acumen allowed him to continually outbid and outmaneuver the competition to compile a media conglomerate that, in the United States, includes The Boston Herald and The New York Post newspapers; New York, TV Guide, and Seventeen magazines; the HarperCollins publishing house, 20th Century Fox Film Corporation; the Fox television network, and numerous Fox television stations around the country. Murdoch's international assets include the Times of London newspaper and dozens of newspapers and magazines in his native Australia. Murdoch has often been compared to William Randolph Hearst, but Tucille counters that Murdoch is his own man and, in point of fact, has achieved a larger measure of success. At the time of this book's writing, Murdoch controlled a media empire of $12 billion. Hearst's holdings, adjusted to 1989 dollars, would be approximately $700 million. With the acquisition of The Wall Street Journal, Murdoch's combined news, entertainment and Internet enterprises (he also recently added the MySpace web site to his holdings) are now valued at $68 billion. Tucille dispels many of the myths about the man. The author finds Murdoch to be in the mold of the old publishing barons, who are motivated to construct an empire through savvy acquisitions and then by building readership and viewership. Murdoch does not acquire assets with the intent of breaking them down, disposing of them, and quickly turning a profit. He is a "builder" entrepreneur who makes his assets stronger and more valuable. Murdoch is also a risk-taker or, as some have characterized him, as a gambler extraordinaire who, through a combination of luck and good timing, has been able to build an empire although seemingly overpaying for assets. The author notes, however, that ". . . no one's luck lasts that long.Murdoch -- like most successful people -- makes his own luck through hard work and effort, by hiring the right people to do the job and replacing them quickly when they fail." Jerome Tuccille has written more than 20 books, including a biography of Alan Greenspan. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***