/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100621.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, June 21, 2010, Vol. 14, No. 170 Headlines 121-06 MERRICK: Case Summary & 6 Largest Unsecured Creditors 30-32 OLIVER: Gets Interim Okay to Use Cash Collateral ALABAMA ASPHALT: Case Summary & 17 Largest Unsecured Creditors ALAN FULGENCIO: Case Summary & 3 Largest Unsecured Creditors ALLEGIANT PROFESSIONAL: Transition Report Has Going Concern Doubt AMERICAN CAPITAL: Amends Offer to Include Cash or Notes Option AMERICAN MEDIA: S&P Cuts Rating to 'D' After Deferral of Payment ARAMARK CORP: 2016 Debt Trades at 4% Off in Secondary Market ARAMARK CORP: 2014 Debt Trades at 6% Off in Secondary Market ARJEN GEIJSEL: Voluntary Chapter 11 Case Summary AUTOZONE INC: Board OKs Add'l $500-Mil. Stock Repurchase AUTOZONE INC: May 8 Balance Sheet Upside-Down by $461.9MM AVISTAR COMMS: Stockholders Elect Six Nominees for Director BAKERS FOOTWEAR: Posts $3.5 Million Net Loss for Q1 Ended May 1 BERWYN-LANCASTER: Voluntary Chapter 11 Case Summary BIORELIANCE CORPORATION: Moody's Affirms 'B3' Corp. Family Rating BRIDGE ASSOCIATES: Case Summary & 4 Largest Unsecured Creditors CANWEST GLOBAL: Canada Court OKs Plan of Compromise CANWEST GLOBAL: Copyright Lawsuit Has Tentative Settlement CANWEST GLOBAL: Gluskin Says Lawsuit Not Covered by Stay CANWEST GLOBAL: Shareholders Want Shaw Deal Rejected CHABAD-LUBAVITCH: Loan Dispute Prompts Ch. 11 Bankruptcy Filing CHEMTURA CORPORATION: Files Plan of Reorganization CINCINNATI BELL: Fitch Downgrades Issuer Default Rating to 'B' CITADEL BROADCASTING: S&P Withdraws 'D' Corporate Credit Rating CITIGROUP INC: Plans to Raise >$3-Bil. for Own P/E & Hedge Funds CONTECH CONSTRUCTION: Bank Debt Trades at 26% Off COURTYARD PROPERTIES: Voluntary Chapter 11 Case Summary COYOTES HOCKEY: Iced Edge Meets Proof of Financing Deadline CRACKER BARREL: Bank Debt Trades at 3% Off in Secondary Market CULLIGAN INTERNATIONAL: Bank Debt Trades at 19% Off CYTOCORE INC: Posts $469,000 Net Loss in Q1 Ended March 31 DELPHI CORP: Methode Has Permission to Continue Infringement Suit DENNY HECKER: $83 Mil. of Chrysler Debt Held Nondischargeable DOLLAR THRIFTY: Completes New $300 Million Asset Backed Financing DORAL ENERGY: Delays Filing of Form 10-Q for April 30 Quarter DUBAI WORLD: Buyers Drop ISS Bid After DOJ Probe Unveiled EAST WILLIAMSBURG: Case Summary & 3 Largest Unsecured Creditors EIGEN INC: Kazi Financing Requires Sale by June 30 ENERGAS RESOURCES: Posts $77,600 Net Loss in Q1 Ended April 30 ENVIROSOLUTIONS HOLDINGS: 2nd Lien Lenders Object to Ch. 11 Plan EUOKO GROUP: Delays Filing of Form 10-Q for Period Ended April 30 FELCOR LODGING: S&P Revises Outlook on 'B-' Rating to 'Stable' FELIX M FHIMA: DIP Loan Hearing Continued Until June 23 FOOT LOCKER: Moody's Gives Stable Outlook, Affirms 'Ba3' Rating FORD MOTOR: Bank Debt Trades at 6% Off in Secondary Market FREDDIE MAC: Notifies NYSE of Plans to Delist Common Stock FREESCALE SEMICON: Bank Debt Trades at 12% Off in Secondary Market GARDNER DENVER: Moody's Raises Corporate Family Rating to 'Ba1' GATEWAY REAL: Voluntary Chapter 11 Case Summary GENERAL LAND: Gets Court's Interim Nod to Use Cash Collateral GENERAL MOTORS: Withdraws Requests for Loan Guarantees in Europe GREAT ATLANTIC: S&P Junks Corporate Credit Rating From 'B-' GREAT ATLANTIC: German Retailer Discloses 52.7% Stake GREAT ATLANTIC: BofA Holds Less Than 5% of Common Stock GREAT LAKES: Oil Spill Won't Affect Moody's 'B2' Corp. Rating GRAU CONTRACTING: Case Summary & 20 Largest Unsecured Creditors GUADALUPE ARAMBULO: Case Summary & 5 Largest Unsecured Creditors HCA INC: Bank Debt Trades at 5% Off in Secondary Market HERCULES OFFSHORE: Bank Debt Trades at 14% Off in Secondary Market HIBISCUS SUITES: Case Summary & 20 Largest Unsecured Creditors HUTTLESTON HOUSE: Case Summary & 20 Largest Unsecured Creditors INFOLOGIX INC: McGladrey & Pullen to Resign as Accountant JAMES LAKE, SR: Case Summary & 20 Largest Unsecured Creditors JAYHAWK ENERGY: Posts $2.3 Million Net Loss in Q2 Ended March 31 JEFF CLINE: Federal Judge Dismisses Chapter 11 Case JERRY BOWSER: Case Summary & 20 Largest Unsecured Creditors JESSE OROZCO, III: Case Summary & 17 Largest Unsecured Creditors JOHN WITTRIG: Case Summary & 10 Largest Unsecured Creditors JOSE SANTOS: Voluntary Chapter 11 Case Summary K-V PHARMACEUTICAL: Says 10-K to Contain Going Concern Doubt K-V PHARMACEUTICAL: Appoints New Independent Member to Board LARRY HARTSFIELD: No Discharge for Improper Probate Payment LAS VEGAS SANDS: Bank Debt Trades at 11% Off in Secondary Market LATSHAW DRILLING: Can Access $7.7MM Cash Collateral Until July 30 LATSHAW DRILLING: Plan Confirmation Hearing Set for July 22 LATSHAW DRILLING: Asks for Aug. 31 Extension of Exclusive Period LEAP WIRELESS: Grants Equity Awards to New Cricket Employees LEVEL 3 COMMS: Bank Debt Trades at 11% Off in Secondary Market LG GUIJARRO: Case Summary & 2 Largest Unsecured Creditors LODGENET INTERACTIVE: S&P Affirms 'B-' Corporate Credit Rating LUCKIE DUTCHMAN: Voluntary Chapter 11 Case Summary MAGIC BRANDS: Luby Inc. Wins Auction with $63MM Cash Offer MAJESTIC LIQUOR: Hearing on Further Cash Access on June 28 ME - BUFFALO, LLC: Case Summary & 20 Largest Unsecured Creditors MGM MIRAGE: Changes Name to MGM Resorts; Amends Bylaws MONEY TREE: Posts $1.2 Million Net Loss in Q2 Ended March 25 NEIMAN MARCUS: Bank Debt Trades at 7% Off in Secondary Market NEW CUSTOMER SERVICE: Bank Debt Trades at 2% Off NEVADA SECURITY BANK: Closed; Umpqua Bank Assumes All Deposits NEWARK GROUP: Gets Court's Interim Okay to Obtain DIP Financing NEWARK GROUP: Taps AlixPartners as Restructuring Advisor NEWARK GROUP: Wants to Hire Deloitte as Independent Auditor NEWARK GROUP: Wants Jefferies & Co. as Investment Banker NORTHWEST AIRLINES: Plan Discharged Discrimination Claim NRG ENERGY: Bank Debt Trades at 5% Off in Secondary Market OMNICITY CORP: Posts $742,000 Net Loss in Q3 Ended April 30 PACIFIC ETHANOL: Issues Additional 497,728 Shares to Socius PANAMSAT CORP: Bank Debts Trade at 7% Off in Secondary Market PETCO ANIMAL: Bank Debt Trades at 5% Off in Secondary Market PHOENIX COMPANIES: Moody's Downgrades Senior Debt Rating to 'B3' PHOENIX EQUITY: Case Summary & Largest Unsecured Creditor PRIME GROUP: Mortgage Lender Forecloses on Continental Towers PROTECTED VEHICLES: Court Takes Jurisdiction over H.K. Resident PROVIDENT ROYALTIES: Chapter 11 Trustee Wins Plan Confirmation RABIA INC: Case Summary & 3 Largest Unsecured Creditors RADIO ONE: Refinancing Cues Moody's Rating Upgrade to 'B3' RADIO ONE: S&P Puts Junk Corp. Credit Rating on CreditWatch Pos. RAMSEY HOLDINGS: Oklahoma Court Confirms Reorganization Plan RAZA PROPERTIES: Case Summary & 3 Largest Unsecured Creditors REALOGY CORP: Bank Debt Trades at 15% Off in Secondary Market RHODES ASSOCIATES: Case Summary & 20 Largest Unsecured Creditors ROBERT BRILLIANT: Case Summary & 20 Largest Unsecured Creditors ROBERT GILBERT: Taps Burton & Armstrong as Bankruptcy Counsel ROBERT GILBERT: Files Schedules of Assets and Liabilities RYLAND GROUP: Fitch Affirms Issuer Default Rating at 'BB' SAINT VINCENTS: Committee Proposes KCC as Communications Agent SAINT VINCENTS: Committee Withdraws Request to Hire Houlihan SAINT VINCENTS: M. Katzenstein Sues VIII SV556 for Secured Claim SAINT VINCENTS: Wins OK for Loeb as Healthcare Advisor SAKS INCORPORATED: Fitch Upgrades Issuer Default Rating to 'B' SCOTT FISHER: Case Summary & 37 Largest Unsecured Creditors SENSIVIDA MEDICAL: Morison Cogen Raises Going Concern Doubt SIX FLAGS: Common Shares to Commence Trading on NYSE Under "SIX" SMURFIT-STONE: Kramer Levin Bills $2.3 Mil. for Jan.-March Work SOLO CUP: Fitch Affirms Issuer Default Rating at 'B-' SOLYNDRA INC: Withdraws IPO Due to Adverse Market Conditions SOUTH BAY: Imperial Resolves Lender Objection to Retention SOUTH BAY: Wins Approval for Kirkland & Ellis as Counsel SPIRIT CREEK: Case Summary & 6 Largest Unsecured Creditors SPOT MOBILE: Posts $576,000 Net Loss for April 30 Quarter STEAMBOAT CITY: Case Summary & 8 Largest Unsecured Creditors SUN HEALTHCARE: Bank Debt Trades at 4% Off in Secondary Market SUNGARD DATA: 2016 Debt Trades at 5% Off in Secondary Market SUNGARD DATA: 2014 Debt Trades at 6% Off in Secondary Market SUNOVIA ENERGY: Delays Filing of Form 10-Q for April 30 Quarter SUZANNE LOBATO: Case Summary & 6 Largest Unsecured Creditors SYNTAX-BRILLIAN: Trust to Settle 2 Suits Against Execs for $3M TENET HEALTHCARE: Moody's Upgrades Corporate Family Rating to 'B2' TEXAS CLASSIC: Chapter 11 Case Converted to Chapter 7 TERESA JOHNSON: Case Summary & 20 Largest Unsecured Creditors TIME PROPERTIES: Case Summary & 10 Largest Unsecured Creditors TIMOTHY SHEEHAN: Voluntary Chapter 11 Case Summary TRIBUNE CO: Bank Debt Trades at 39% Off in Secondary Market TRICO MARINE: Board Approves Salary Hike of Two Officials TRICO MARINE: Shipping Unit Has Deal to Sell $50-Mil. in Notes TRICO MARINE: Shipping Unit Wins Short Forbearance TRONOX INC: Lenders Extend Deadline on $425M Bankruptcy Financing UAL CORP: Stockholders Elect 7 Directors at Meeting UAL CORP: United Reports May 2010 Traffic Results UNIFRAX I: Moody's Upgrades Corporate Family Rating to 'B3' UNIVAR NV: Bank Debt Trades at 5% Off in Secondary Market VAN HUNTER: Exclusive Period to File Plan Moved to August 4 VISION SOLUTIONS: Moody's Assigns 'B1' Corporate Family Rating VOUGHT AIRCRAFT: S&P Withdraws 'B' Corporate Credit Rating WASHINGTON MUTUAL: Judge Delays Hearing on Examiner WILLIAM WILSON: Case Summary & 20 Largest Unsecured Creditors W.R. GRACE: Has Deal on Harper Insurance Coverage Disputes W.R. GRACE: Has Deal on North Star Insurance Coverage Issues W.R. GRACE: Wants to Re-Open Old Lawsuits for Fee Applications WRS LLC: Case Summary & 20 Largest Unsecured Creditors * BOND PRICING -- For Week From June 14 to 18, 2010 ********* 121-06 MERRICK: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: 221-06 Merrick Blvd. Associates LLC c/o BP Real Estate Investors, LLC 141 Eltingville Boulevard Staten Island, NY 10312 Bankruptcy Case No.: 10-45657 Chapter 11 Petition Date: June 16, 2010 Court: U.S. Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Joel B. Rosenthal Debtor's Counsel: Bruce Weiner, Esq. Rosenberg Musso & Weiner LLP 26 Court Street, Suite 2211 Brooklyn, NY 11242 Tel: (718) 855-6840 Fax: (718) 625-1966 E-mail: rmwlaw@att.net 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 $7,015,000 while debts total $3,063,350. A copy of the Company's list of 6 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nyeb10-45657.pdf The petition was signed by Myron Berman, managing member. 30-32 OLIVER: Gets Interim Okay to Use Cash Collateral ------------------------------------------------------ 30-32 Oliver Street Corporation sought and obtained interim authorization from the Hon. Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts to use cash collateral until June 29, 2010. The Debtor is an affiliate of SW Boston Hotel Venture, LLC, General Trading Company, Frank Sawyer Corporation, 100 Stuart Street LLC and Auto Sales & Service, Inc. In December 2008, the Debtor pledged certain of its assets as collateral for a loan from The Prudential Insurance Company of America to SW Boston. SW Boston is the owner of the W Boston Hotel and Residences project. To fund the construction of the project, SW Boston borrowed funds from Prudential and the City of Boston. As a condition to the financing of the project, Prudential required that the Debtor guaranty, among other things, SW Boston's obligations to Prudential, and the City required that the Debtor guaranty, among other things, SW Boston's obligations to the City. D. Ethan Jeffery, Esq., at Hanify & King, P.C., the attorney for the Debtor, explained that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. The Debtor will use the collateral pursuant to a budget, a copy of which is available for free at: http://bankrupt.com/misc/30-32_OLVER_budget.pdf In exchange for using the cash collateral, the Debtor will grant the prepetition lenders replacement liens. The Court has set a final hearing for June 29, 2010, at 1:30 p.m. on the Debtor's request to use cash collateral. About 30-32 Oliver Street Boston, Massachusetts-based 30-32 Oliver Street Corporation owns and operates a seven-unit residential building in Boston, Massachusetts. The Company -- including affiliates 131 Arlington Street Trust and General Land Corporation -- filed for Chapter 11 bankruptcy protection on June 4, 2010 (Bankr. D. Mass. Case No. 10-16173). Harold B. Murphy, Esq., at Hanify & King, P. C., assists the Company in its restructuring effort. The Company listed $1,000,001 to $10,000,000 in assets and $100,000,001 to $500,000,000 in liabilities. Affiliates 100 Stuart Street, LLC, Auto Sales & Service, Inc., /10 General Trading Company, and SW Boston Hotel Venture, LLC (Case No. 10-14535) filed for Chapter 11 on April 28, 2010. ALABAMA ASPHALT: Case Summary & 17 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Alabama Asphalt Haulers, LLC 9121 Old Watermelon Road Tuscaloosa, AL 35406 Bankruptcy Case No.: 10-71368 Chapter 11 Petition Date: June 16, 2010 Court: United States Bankruptcy Court Northern District of Alabama (Tuscaloosa) Debtor's Counsel: Harry P. Long, Esq. P.O. Box 1468 Anniston, AL 36202 Tel: (256) 237-3266 E-mail: hlonglegal@aol.com Scheduled Assets: $1,361,540 Scheduled Debts: $1,408,991 A list of the Company's 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/alnb10-71368.pdf The petition was signed by Sheila Poe, company's president. ALAN FULGENCIO: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Alan Pagmanua Fulgencio 1441 Greenwood Way San Bruno, CA 94066 Bankruptcy Case No.: 10-32252 Chapter 11 Petition Date: June 17, 2010 Court: United States Bankruptcy Court Northern District of California (San Francisco) Judge: Dennis Montali Debtor's Counsel: Kenneth R. Graham, Esq. Law Office of Kenneth R. Graham 171 Mayhew Way #208 Pleasant Hill, CA 94523 Tel: (925) 932-0170 E-mail: krg@elaws.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 filed together with the petition is available for free at http://bankrupt.com/misc/canb10-32252.pdf The petition was signed by Alan Pagmanua Fulgencio. ALLEGIANT PROFESSIONAL: Transition Report Has Going Concern Doubt ----------------------------------------------------------------- Allegiant Professional Business Services, Inc., filed on June 16, 2010, a transition report on Form 10-KT for the transition period from September 30, 2008, to December 31, 2008. Weinberg & Company, P.A., in Los Angeles, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has experienced recurring losses since inception and has a working capital and stockholders' deficiency. The Company reported a net loss of $1,558,499 on $1,162,838 of revenue for the three months ended December 31, 2008, compared with a net loss of $51,091 on no revenue for the same period ended December 31, 2007. The Company's balance sheet as of December 31, 2008, showed $3,127,940 in assets and $7,902,193 of liabilities, for a stockholders' deficit of $4,774,253. A full-text copy of the transition report is available for free at http://researcharchives.com/t/s?650b Headquartered in San Diego, Calif., Allegiant Professional Business Services, Inc. (Pinksheet: APRO) provides temporary staffing and professional employer organization ("PEO") services. In a PEO co-employment contract, the Company becomes the employer of record for client company employees for tax and insurance purposes. The client company continues to direct the employees' day-to-day activities, and Allegiant charges a service fee for providing services. On April 1, 2009, the Company's Board of Directors approved a change in the Company's fiscal year from September 30 to December 31. AMERICAN CAPITAL: Amends Offer to Include Cash or Notes Option -------------------------------------------------------------- American Capital Ltd. has made certain amendments to its private offers to exchange its outstanding unsecured public and private notes for cash payments and new secured notes. No changes are being made to the Company's standby plan of reorganization or to the expiration of the Exchange Offers or the voting deadline for the Standby Plan. Under the amended terms of the Exchange Offers, holders of the Company's privately-issued unsecured notes may now choose whether to receive consideration all in cash or all in the previously offered secured amortizing notes rather than choosing cash or Amortizing Notes and there being a possibility of receiving a combination of cash and Amortizing Notes. In the concurrent restructuring of the Company's line of credit facility, lenders will now have the opportunity to choose to receive all cash or all secured loans under an amended credit agreement. Alternatively, lenders selecting secured loans may elect to receive instead a new series of secured amortizing notes, which will have the same terms as the Amortizing Notes except that they will be subject to certain transfer restrictions under SEC Rule 144A. Holders of Private Notes and lenders under the credit agreement who do not make an election or otherwise do not participate in the restructuring will now automatically receive cash, subject to certain exceptions. As a result of these amendments, the Company has also amended certain conditions to the Exchange Offers. As previously announced, holders of the Company's unsecured public 6.85% Senior Notes due August 1, 2012 have the right to exchange Public Notes for a series of non-amortizing new notes. Alternatively, they have the right to elect to receive cash, and under the amended terms of the Exchange Offers, they are assured of receiving solely cash rather than a combination cash and notes. The Company also reported that the percentage of beneficial holders of Public Notes who have entered into the previously announced June 9, 2010 lock-up agreement has increased from 43% to 72%. Holders of Public Notes who are parties to the lock-up agreement generally agree to tender their Public Notes in the Exchange Offers and vote their Public Notes to accept the Standby Plan, among other matters. The Company has not extended the expiration time of the Exchange Offers and the consent solicitation of its outstanding public notes or the voting deadline of its solicitation of votes to accept the Standby Plan. The Exchange Offers, the Consent Solicitation and the Standby Plan Solicitation will continue to expire at 11:59 p.m., New York City time, on June 22, 2010, unless further extended or earlier terminated. Each holder of the Private Notes and Public Notes who has on or prior to June 15, 2010, tendered its notes in the Exchange Offers has the right to withdraw such tender at any time prior to the scheduled expiration time on June 22, 2010, or to change a prior election to receive cash or notes. Any creditor that has previously submitted a properly completed ballot may change its vote for acceptance or rejection of the Standby Plan at any time prior to the new voting deadline on June 22, 2010, as the same may be extended. red. Restructuring American Capital is soliciting acceptances of (i) its offers to exchange its outstanding unsecured public and private notes for cash payments and new secured notes, and (ii) voting on a standby plan of reorganization. American Capital has stated that if it is unable to restructure its debt through this exchange, it intends to undertake a pre-packaged Chapter 11 bankruptcy restructuring with the standby plan. The consummation of the exchange offer requires 85% of the public unsecured holders and 100% of private unsecured holders to tender. ACAS is undertaking this restructuring as, due to various covenant violations, its debt holders have the right to accelerate maturity of $2.4 billion of unsecured debt. This is much greater than the company's liquid assets. About American Capital Based in Bethesda, Maryland, American Capital, Ltd. (Nasdaq: ACAS) -- http://www.AmericanCapital.com/-- is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital currently has $13.9 billion in capital resources under management and eight offices in the U.S., Europe and Asia. The Company's balance sheet as of March 31, 2010, showed $6.757 billion in assets, $4.231 billion in liabilities, and $2.526 billion of shareholders' equity. AMERICAN MEDIA: S&P Cuts Rating to 'D' After Deferral of Payment ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Boca Raton, Fla.-based American Media Inc. to 'D' from 'CCC.' In addition, S&P lowered its issue-level rating on the company's 14% senior subordinated notes to 'D' from 'CC'. The recovery rating on this debt remains at '6', indicating S&P's expectation of negligible (0% to 10%) recovery for lenders. At the same time, S&P affirmed its rating on American Media's secured loans at 'CCC+'. The recovery rating on this debt remains at '2', indicating S&P's expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default. S&P also affirmed its rating on the company's 9% senior unsecured pay-in-kind (PIK) notes at 'CC.' The recovery rating on this debt remains at '6'. The ratings downgrade reflects American Media's ongoing deferral of its May 1, 2010 interest payment on the 14% notes. The company stated that 75% of noteholders consented that the May 1, 2010 interest payment be deferred until June 21, 2010. A payment default has not occurred according to the legal provision of the notes. However, according to S&P's criteria, S&P consider it a default when a payment related to an obligation is not made, in the event that the nonpayment is a function of the borrower being under financial stress and when S&P is not confident that the payment will be made in full. "S&P has taken this view because of American Media's high leverage, weak interest coverage, adverse secular trends in newspaper and magazine publishing, thin margin of compliance with its financial covenants, and limited liquidity," noted Standard & Poor's credit analyst Tulip Lim. In the fourth quarter ended March 31, 2010, revenue fell 6% year over year, while EBITDA increased 7%. At March 31, 2010 American Media's debt to EBITDA was extremely high, at 9.1x, including the full face value of the PIK debt. Unadjusted coverage of cash interest was 2.2x. In May and November of 2009, the company gained some flexibility from agreements with holders of its 14% subordinated notes due 2014, permitting it to pay all of its interest on the notes in kind. The company stated that 75% of its 14% senior subordinated noteholders consented that its May 1, 2010 interest payment be deferred until June 21, 2010. Had the company paid 10% interest on the notes in cash, EBITDA coverage of cash interest would have been weak, at 1.3x. American Media generated positive discretionary cash flow for the year, but if EBITDA declines and noteholders do not permit it to pay all of its interest on the 14% senior subordinated notes in kind, discretionary cash flow could turn negative and liquidity could contract further. At March 31, 2010, the company had $6.6 million in cash. It had $39 million available for borrowing under its $60 million revolving credit facility. S&P views the company's margin of compliance with financial covenants as thin given near-term step-downs. ARAMARK CORP: 2016 Debt Trades at 4% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which ARAMARK Corp. is a borrower traded in the secondary market at 96.11 cents-on-the- dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.88 percentage points from the previous week, The Journal relates. The Company pays 325 basis points above LIBOR to borrow under the facility, which matures on July 1, 2016. The bank note is not rated by Moody's while it carries Standard & Poor's BB rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. ARAMARK Corp. -- http://www.aramark.com/-- is the world's #3 contract foodservice provider (behind Compass Group and Sodexo) and the #2 uniform supplier (behind Cintas) in the US. It offers corporate dining services and operates concessions at many sports arenas and other entertainment venues, while its ARAMARK Refreshment Services unit is a leading provider of vending and beverage services. The Company also provides facilities management services. Through ARAMARK Uniform and Career Apparel, the company supplies uniforms for healthcare, public safety, and technology workers. Founded in 1959, ARAMARK is owned by an investment group led by chairman and CEO Joseph Neubauer. ARAMARK CORP: 2014 Debt Trades at 6% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which ARAMARK Corp. is a borrower traded in the secondary market at 93.88 cents-on-the- dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 1.15 percentage points from the previous week, The Journal relates. The Company pays 188 basis points above LIBOR to borrow under the facility, which matures on Jan. 26, 2014. The bank debt is not rated by Moody's and Standard & Poor's. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. ARAMARK Corp. -- http://www.aramark.com/-- is the world's #3 contract foodservice provider (behind Compass Group and Sodexo) and the #2 uniform supplier (behind Cintas) in the US. It offers corporate dining services and operates concessions at many sports arenas and other entertainment venues, while its ARAMARK Refreshment Services unit is a leading provider of vending and beverage services. The Company also provides facilities management services. Through ARAMARK Uniform and Career Apparel, the company supplies uniforms for healthcare, public safety, and technology workers. Founded in 1959, ARAMARK is owned by an investment group led by chairman and CEO Joseph Neubauer. ARJEN GEIJSEL: Voluntary Chapter 11 Case Summary ------------------------------------------------ Joint Debtors: Arjen Wilhelmus Geijsel aka Wilhelmus Dairy Kimberly Kay Geijsel fka Kimberly Kay Luckie 4615 South FM 219 Dublin, TX 76446 Bankruptcy Case No.: 10-43979 Chapter 11 Petition Date: June 15, 2010 Court: U.S. Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Russell F. Nelms Debtor's Counsel: St. Clair Newbern, III, Esq. Law Offices of St. Clair Newbern III, P.C 1701 River Run, Suite 1000 Fort Worth, TX 76107 Tel: (817) 870-2647 E-mail: filing@newbernlawoffice.com Estimated Assets: $1,000,001 to $10,000,000 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. AUTOZONE INC: Board OKs Add'l $500-Mil. Stock Repurchase -------------------------------------------------------- AutoZone Inc. said in a statement that its Board of Directors authorized the repurchase of an additional $500 million of the Company's common stock in connection with its ongoing share repurchase program. Since the inception of the repurchase program in 1998, and including the above amount, AutoZone's Board of Directors has authorized $8.9 billion. "AutoZone's strong financial performance has allowed us to continue to repurchase our stock while maintaining our investment grade credit ratings," said Bill Giles, Executive Vice President, Chief Financial Officer, Information Technology and Store Development. "We remain committed to utilizing share repurchases within the bounds of a disciplined capital structure to enhance stockholder returns while maintaining adequate liquidity to execute our plans." About AutoZone As of February 13, 2010, in Memphis, Tenn.-based AutoZone, Inc. (NYSE:AZO) sells auto and light truck parts, chemicals and accessories through 4,289 AutoZone stores in 48 U.S. states plus the District of Columbia and Puerto Rico and 202 stores in Mexico. AutoZone is a retailer and distributor of automotive replacement parts and accessories in the United States. AutoZone does not derive revenue from automotive repair or installation. As of February 14, 2010, the Company had $5,424,992,000 in total assets, including $2,648,713,000 in total current assets; against total current liabilities of $2,749,324,000; debt of $2,774,700,000; and other liabilities of $322,639,000; resulting in stockholders' deficit of $421,671,000. AUTOZONE INC: May 8 Balance Sheet Upside-Down by $461.9MM --------------------------------------------------------- AutoZone Inc. filed its quarterly report on Form 10-Q, reporting net income of $202.7 million on $1.821 billion of net sales for the 12 weeks ended May 8, 2010, compared with net income of $173.69 million on $1.658 billion of net sales for the 12 weeks ended May 9, 2009. The Company's balance sheet at May 8, 2010, showed $5.452 billion in total assets, $2.872 billion in total current liabilities, $2.698 billion in debt, and $344.1 million in other liabilities, for a stockholder's deficit of $461.95 million. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?650e About AutoZone Memphis, Tenn.-based AutoZone, Inc. (NYSE:AZO) sells auto and light truck parts, chemicals and accessories through 4,289 AutoZone stores in 48 U.S. states plus the District of Columbia and Puerto Rico and 202 stores in Mexico. AutoZone is a retailer and distributor of automotive replacement parts and accessories in the United States. AutoZone does not derive revenue from automotive repair or installation. AVISTAR COMMS: Stockholders Elect Six Nominees for Director ----------------------------------------------------------- Stockholders of Avistar Communications Corporation elected six individuals to the Board, wherein each will serve until the next annual meeting or in each case until his successor is duly elected and qualified. The six elected members of the board are: * Gerald J. Burnett * William L. Campbell * Craig F. Heimark * R. Stephen Heinrichs * Robert M. Metcalfe * Robert F. Kirk About Avistar Communications Headquartered in San Mateo, California, Avistar Communications Corporation (Nasdaq: AVSR) -- http://www.avistar.com/-- holds a portfolio of 80 patents for inventions in video and network technology and licenses IP to videoconferencing, rich-media services, public networking and related industries. Current licensees include Sony Corporation, Sony Computer Entertainment Inc. (SCEI), Polycom Inc., Tandberg ASA, Radvision Ltd. and Emblaze-VCON. * * * As of March 31, 2010, the Company had total assets of $2.070 million against total liabilities of $5.120 million, resulting in stockholders' deficit of $3.050 million. BAKERS FOOTWEAR: Posts $3.5 Million Net Loss for Q1 Ended May 1 --------------------------------------------------------------- Bakers Footwear Group, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.5 million on $43.5 million of revenue for the thirteen weeks ended May 1, 2010, compared with a net loss of $2.8 million on $45.0 million of revenue for the thirteen weeks ended May 2, 2009. The Company's balance sheet as of May 1, 2010, showed $50.6 million in assets and $51.8 million of liabilities, for a stockholders' deficit of $1.2 million. As reported in the Troubled Company Reporter on May 4, 2010, Ernst & Young LLP, in St. Louis, Mo., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended January 30, 2010. The independent auditors noted that the Company has incurred substantial losses from operations in recent years and has a significant working capital deficiency. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6506 About Bakers Footwear St. Louis, Mo.-based Bakers Footwear Group, Inc. (Nasdaq: BKRS) is a national, mall-based, specialty retailer of distinctive footwear and accessories for young women. The Company's merchandise includes private label and national brand dress, casual and sport shoes, boots, sandals and accessories. The Company currently operates 239 stores nationwide. Bakers' stores focus on women between the ages of 16 and 35. Wild Pair stores offer fashion- forward footwear to both women and men between the ages of 17 and 29. BERWYN-LANCASTER: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Berwyn-Lancaster, L.P. 30 South 17th Street, Suite 1610 Philadelphia, PA 19103 Bankruptcy Case No.: 10-14942 Chapter 11 Petition Date: June 16, 2010 Court: U.S. Bankruptcy Court Eastern District of Pennsylvania (Philadelphia) Judge: Magdeline D. Coleman Debtor's Counsel: Albert A. Ciardi, III, 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: aciardi@ciardilaw.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 William Wheeler, president. BIORELIANCE CORPORATION: Moody's Affirms 'B3' Corp. Family Rating ----------------------------------------------------------------- Moody's changed the rating outlook of BioReliance Corporation to stable from negative. Concurrently Moody's affirmed the long-term ratings, including the Corporate Family Rating and Probability of Default Rating of B3. The change in outlook to stable reflects Moody's view that the operating environment for contract research organizations, including BioReliance, has stabilized after a difficult period in late 2008-2009. The improvement in the outlook also reflects the company's swift cost cutting measures in mid-2009 which have resulted in very good preservation of EBITDA and cash flow, despite lower revenues. As a result, liquidity and covenant cushion have remained adequate and Moody's expect them to remain so over the next twelve months. The B3 Corporate Family Rating reflects BioReliance's very small scale, both on an absolute basis and relative to peers, as well as considerable financial leverage. The ratings are supported by Moody's favorable longer-term view of CRO industry demand fundamentals as well as BioReliance's good customer diversity, leading competitive position within its niche market, and high customer switching costs. Rating affirmed/LGD point estimates revised: BioReliance Corporation: -- $55 million U.S. first lien term loan, due 2014, B2, LGD3, 34% -- $15 million U.S. first lien revolving credit facility, due 2013, B2, LGD3, 34% -- $40 million U.S. second lien term loan, due 2014, Caa2, LGD5, 85% -- Corporate Family Rating, B3 -- Probability of Default Rating, B3 ACP/BREL UK Acquisition Limited: -- 20.25 million GBP U.K. first lien term loan, due 2014, B2, LGD3, 34% -- 2.525 million GBP U.K. first lien revolving credit facility, due 2013, B2, LGD3, 34% The outlook is stable. The last rating action was June 15, 2009, when Moody's downgraded the Corporate Family Rating to B3 from B2. BioReliance is a CRO that provides global testing and manufacturing services for biologics and other biomedical products to biotechnology and pharmaceutical companies worldwide. BioReliance's services include testing related to biologics safety and toxicology, contract manufacturing and laboratory animal health diagnostics. BioReliance began operations in April 2007 after Avista Partners acquired the operations from Invitrogen. The company reported revenues of approximately $104 million for the 12 months ended March 31, 2010. BRIDGE ASSOCIATES: Case Summary & 4 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Bridge Associates of PA, LLC P.O. Box 177 Woodmere, NY 11598 Bankruptcy Case No.: 10-74718 Chapter 11 Petition Date: June 17, 2010 Court: U.S. Bankruptcy Court Eastern District of New York (Central Islip) Judge: Robert E. Grossman Debtor's Counsel: Roy J. Lester, Esq. 600 Old Country Road, Suite 229 Garden City, NY 11530 Tel: (516) 357-9191 Fax: (516) 357-9281 E-mail: rlester@rlesterlaw.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 4 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nyeb10-74718.pdf The petition was signed by Alan Luckner, managing member. Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Bridge Associates of Pocono Township, LP 10-74195 06/01/10 Bridge Associates of Brodheadsville, LLC 10-74215 06/02/10 Bridge Associates of Tannersville, LLC 10-74541 06/14/10 CANWEST GLOBAL: Canada Court OKs Plan of Compromise --------------------------------------------------- Canwest Global Communications Corp. disclosed that the Ontario Superior Court of Justice has issued a Sanction and Vesting Order approving the amended plan of compromise and arrangement (the "Plan") submitted by Canwest (Canada) Inc., Canwest Limited Partnership / Canwest Societe en Commandite and certain of their subsidiaries under the Companies' Creditors Arrangement Act (Canada). In addition, the Court has granted the request by LP Entities for an extension of the stay period granted under CCAA to December 31, 2010, conditional on the Plan being implemented before July 30, 2010. The announcement relates only to Canwest's newspaper and online- publishing businesses. Canwest, Canwest Media Inc. and certain of its subsidiaries, which operate the Company's conventional and specialty television broadcasting businesses, are the subject of a separate CCAA restructuring process. About Canwest Global Canwest Global Communications Corp. (TSX: CGS and CGS.A) -- http://www.canwest.com/-- an international media company, is Canada's largest media company. In addition to owning the Global Television Network, Canwest is Canada's largest publisher of English language daily newspapers and owns, operates and holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, web sites and radio stations and networks in Canada, New Zealand, Australia, Turkey, Indonesia, Singapore, the United Kingdom and the United States. On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest Television Limited Partnership (including Global Television, MovieTime, DejaView and Fox Sports World), The National Post Company and certain subsidiaries voluntarily entered into, and successfully obtained an Order from the Ontario Superior Court of Justice (Commercial Division) commencing proceedings under the Companies' Creditors Arrangement Act. The CMI Entities' commencement of these proceedings was undertaken in furtherance of a proposed recapitalization transaction that is supported by over 70% of holders of the 8% senior subordinated notes issued by CMI. On the same day, FTI Consulting Canada Inc., the Court-appointed Monitor in the CCAA proceedings, sought protection in the United States Bankruptcy Court under Chapter 15 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for certain of the entities involved in Canwest's television business that filed for protection under the CCAA, including Canwest, Canwest Media Inc. and Canwest Global Broadcasting Inc./Radiodiffusion Canwest Global Inc. Judge Stuart M. Bernstein presides over the Chapter 15 cases. Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford, Connecticut, serves as Chapter 15 Petitioner's counsel. The Chapter 15 Debtors disclosed estimated assets of $500 million to $1 billion and estimated debts of $50 million to $100 million. In a regulatory filing with the U.S. Securities and Exchange Commission, Canwest Media disclosed C$4,847,020,000 in total assets and C$5,826,522,000 in total liabilities at May 31, 2009. Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy News. The newsletter tracks the CCAA proceedings and Chapter 15 proceedings undertaken by Canwest Global Communications Corp. and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). CANWEST GLOBAL: Copyright Lawsuit Has Tentative Settlement ---------------------------------------------------------- Canwest Global Communications Corp. announced that a settlement has been reached between freelance writer Heather Robertson and Canwest Publishing Inc., which filed for creditor protection in January of 2010, in a class action lawsuit concerning electronic rights of freelance writers. The proposed settlement is subject to court approval. Under the terms of the proposed settlement, the value of the claims advanced by Heather Robertson against Canwest in the insolvency claims process is set for voting and distribution purposes at $7,500,000. In exchange, Heather Robertson will vote in favor of a Plan of Arrangement in the Canwest Publishing Inc. insolvency proceeding, and members of the Class will grant a license and release in respect of their freelance works to Canwest Publishing Inc. The Plaintiff will share pro rata to the extent of the Settlement Amount with other affected creditors of the LP Entities in the distributions to be made by the LP Entities, if any. On May 21, 2010 the LP Entities filed with the Court a proposed Plan of Compromise and Arrangement which contemplates certain distributions to affected creditors of the LP Entities. Details of such distributions, as well as the conditions precedent to Plan implementation (including creditor and court approval), are contained in the proposed Plan of Compromise and Arrangement, Management Circular and the Eighth Report of the Monitor, copies of which are available on the Monitor's Web site for the CCAA Proceedings. The settlement does not terminate Heather Robertson's lawsuit against the remaining defendants in her copyright class action against Proquest Information and Learning LLC, CEDROM-SNI Inc., Toronto Star Newspapers Ltd., and Rogers Publishing Limited. On June 16, 2010, Heather Robertson and Canwest will seek the Court's approval of the proposed settlement. About Canwest Global Canwest Global Communications Corp. (TSX: CGS and CGS.A) -- http://www.canwest.com/-- an international media company, is Canada's largest media company. In addition to owning the Global Television Network, Canwest is Canada's largest publisher of English language daily newspapers and owns, operates and holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, web sites and radio stations and networks in Canada, New Zealand, Australia, Turkey, Indonesia, Singapore, the United Kingdom and the United States. On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest Television Limited Partnership (including Global Television, MovieTime, DejaView and Fox Sports World), The National Post Company and certain subsidiaries voluntarily entered into, and successfully obtained an Order from the Ontario Superior Court of Justice (Commercial Division) commencing proceedings under the Companies' Creditors Arrangement Act. The CMI Entities' commencement of these proceedings was undertaken in furtherance of a proposed recapitalization transaction that is supported by over 70% of holders of the 8% senior subordinated notes issued by CMI. On the same day, FTI Consulting Canada Inc., the Court-appointed Monitor in the CCAA proceedings, sought protection in the United States Bankruptcy Court under Chapter 15 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for certain of the entities involved in Canwest's television business that filed for protection under the CCAA, including Canwest, Canwest Media Inc. and Canwest Global Broadcasting Inc./Radiodiffusion Canwest Global Inc. Judge Stuart M. Bernstein presides over the Chapter 15 cases. Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford, Connecticut, serves as Chapter 15 Petitioner's counsel. The Chapter 15 Debtors disclosed estimated assets of $500 million to $1 billion and estimated debts of $50 million to $100 million. In a regulatory filing with the U.S. Securities and Exchange Commission, Canwest Media disclosed C$4,847,020,000 in total assets and C$5,826,522,000 in total liabilities at May 31, 2009. Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy News. The newsletter tracks the CCAA proceedings and Chapter 15 proceedings undertaken by Canwest Global Communications Corp. and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). CANWEST GLOBAL: Gluskin Says Lawsuit Not Covered by Stay -------------------------------------------------------- Gluskin Sheff + Associates Inc. seeks a declaration from the Ontario Superior Court of Justice that the stay of proceedings does not apply to the lawsuit it filed against Canwest Media Inc. and Canwest Publishing Inc. Gluskin Sheff sued the companies after they allegedly refused to pay the firm's fees in breach of their contract. The Canwest entities allegedly owe $849,648 on account of the services, which the firm provided for the pension plans under the Investment Management Agreement. The pension plans are being administered by Canwest Media and Canwest Publishing. Helen Daley, Esq., at Wardle Daley Bernstein LLP, in Toronto, Ontario, says the lawsuit does not seek any damages or other payment from the Canwest entities. "The action pertains to GS+A's rights and remedies against the plans and their members, not against Canwest," Ms. Daley says in court papers. She points out that the lawsuit will not affect Canwest's assets or business. About Canwest Global Canwest Global Communications Corp. (TSX: CGS and CGS.A) -- http://www.canwest.com/-- an international media company, is Canada's largest media company. In addition to owning the Global Television Network, Canwest is Canada's largest publisher of English language daily newspapers and owns, operates and holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, web sites and radio stations and networks in Canada, New Zealand, Australia, Turkey, Indonesia, Singapore, the United Kingdom and the United States. On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest Television Limited Partnership (including Global Television, MovieTime, DejaView and Fox Sports World), The National Post Company and certain subsidiaries voluntarily entered into, and successfully obtained an Order from the Ontario Superior Court of Justice (Commercial Division) commencing proceedings under the Companies' Creditors Arrangement Act. The CMI Entities' commencement of these proceedings was undertaken in furtherance of a proposed recapitalization transaction that is supported by over 70% of holders of the 8% senior subordinated notes issued by CMI. On the same day, FTI Consulting Canada Inc., the Court-appointed Monitor in the CCAA proceedings, sought protection in the United States Bankruptcy Court under Chapter 15 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for certain of the entities involved in Canwest's television business that filed for protection under the CCAA, including Canwest, Canwest Media Inc. and Canwest Global Broadcasting Inc./Radiodiffusion Canwest Global Inc. Judge Stuart M. Bernstein presides over the Chapter 15 cases. Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford, Connecticut, serves as Chapter 15 Petitioner's counsel. The Chapter 15 Debtors disclosed estimated assets of $500 million to $1 billion and estimated debts of $50 million to $100 million. In a regulatory filing with the U.S. Securities and Exchange Commission, Canwest Media disclosed C$4,847,020,000 in total assets and C$5,826,522,000 in total liabilities at May 31, 2009. Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy News. The newsletter tracks the CCAA proceedings and Chapter 15 proceedings undertaken by Canwest Global Communications Corp. and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). CANWEST GLOBAL: Shareholders Want Shaw Deal Rejected ---------------------------------------------------- A group of shareholders of Canwest Global Communications Inc. has asked the Ontario Superior Court of Justice to reject the proposed acquisition by Shaw Communications Inc. of the company's television assets, according to a report by Bloomberg News. The shareholder group sent a letter to Canwest Global and its court-appointed monitor opposing the acquisition. The group wants to force an open auction for the assets, the report said. Shaw Communications earlier agreed to acquire 100% of the over- the-air and specialty television assets of Canwest Global for about C$2 billion. These assets include all of the equity interests in CW Investments Co., the Canwest subsidiary that owns the specialty television channels. About Canwest Global Canwest Global Communications Corp. (TSX: CGS and CGS.A) -- http://www.canwest.com/-- an international media company, is Canada's largest media company. In addition to owning the Global Television Network, Canwest is Canada's largest publisher of English language daily newspapers and owns, operates and holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, web sites and radio stations and networks in Canada, New Zealand, Australia, Turkey, Indonesia, Singapore, the United Kingdom and the United States. On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest Television Limited Partnership (including Global Television, MovieTime, DejaView and Fox Sports World), The National Post Company and certain subsidiaries voluntarily entered into, and successfully obtained an Order from the Ontario Superior Court of Justice (Commercial Division) commencing proceedings under the Companies' Creditors Arrangement Act. The CMI Entities' commencement of these proceedings was undertaken in furtherance of a proposed recapitalization transaction that is supported by over 70% of holders of the 8% senior subordinated notes issued by CMI. On the same day, FTI Consulting Canada Inc., the Court-appointed Monitor in the CCAA proceedings, sought protection in the United States Bankruptcy Court under Chapter 15 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for certain of the entities involved in Canwest's television business that filed for protection under the CCAA, including Canwest, Canwest Media Inc. and Canwest Global Broadcasting Inc./Radiodiffusion Canwest Global Inc. Judge Stuart M. Bernstein presides over the Chapter 15 cases. Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford, Connecticut, serves as Chapter 15 Petitioner's counsel. The Chapter 15 Debtors disclosed estimated assets of $500 million to $1 billion and estimated debts of $50 million to $100 million. In a regulatory filing with the U.S. Securities and Exchange Commission, Canwest Media disclosed C$4,847,020,000 in total assets and C$5,826,522,000 in total liabilities at May 31, 2009. Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy News. The newsletter tracks the CCAA proceedings and Chapter 15 proceedings undertaken by Canwest Global Communications Corp. and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). CHABAD-LUBAVITCH: Loan Dispute Prompts Ch. 11 Bankruptcy Filing --------------------------------------------------------------- Alexander Clough at Palm Beach Post reports that Chabad-Lubavitch of Boynton Beach and Congregation Chabad-Lubavitch of Greater Boynton Beach filed for Chapter 11 bankruptcy protection because it was unable to resolve a loan dispute with its lender Stonegate Bank. The Company listed assets of $9 million and debts of $4.1 million. According to the report, Stonegate Bank loaned in 2007 the Chabad $3.8 million to refinance loans on an existing campus and a vacant parcel purchased for expansion but it never took place. Mr. Clough says a Palm Beach County Circuit Court lawsuit filed by the Chabad last September alleged Stonegate did a "bait-and- switch" on the 2007 loan, providing only $3.8 million in financing instead of a larger promised amount of up to $4.6 million, including a bond needed for the construction job. Stonegate fired back with an October foreclosure lawsuit. The bank currently has liens on the worship center and vacant parcel next door. CHEMTURA CORPORATION: Files Plan of Reorganization -------------------------------------------------- Chemtura Corporation, debtor-in-possession disclosed that it and 26 of its U.S. affiliates have filed a Joint Plan of Reorganization and Disclosure Statement with the United States Bankruptcy Court for the Southern District of New York. The Plan is supported by the Company's official committee of unsecured creditors and the ad hoc committee of the Company's bondholders. The Company expects that, in the near term, the Court will schedule a hearing to consider approval of the Disclosure Statement. Accordingly, the Company remains on track to emerge from Chapter 11 protection in the coming months. The Company will continue to work with its official committee of equity security holders to address any concerns they may have about the Plan. Chemtura provides under the Plan the potential to satisfy all creditors' claims in full, as well as offering value to equity holders. "The filing of our Plan is a significant milestone in the Chapter 11 process, demonstrating Chemtura's progress toward emerging as a stronger, leaner global enterprise," said Craig A. Rogerson, Chemtura's Chairman, President and Chief Executive Officer. "We are pleased to submit the proposed Plan with the full support of both the unsecured creditors' committee and the ad hoc committee of bondholders. The Plan is a testament to the outstanding progress we have made in restructuring our finances and operations." Mr. Rogerson added, "We appreciate the support of our major stakeholders and we look forward to continuing to work closely with them in order to successfully execute on our business plan to drive growth and long-term value creation. I thank our customers, suppliers, business partners and employees for their ongoing commitment to our company and for helping us build a stronger Chemtura." The Disclosure Statement includes a historical profile of the Company, a description of proposed distributions to creditors and equity holders, and details of the "new" Chemtura, as well as many of the technical matters required for the solicitation process, such as descriptions of who will be eligible to vote on the Plan and the voting process itself. About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation (CEM) -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 on March 18, 2009 (Bankr. S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel. Wolfblock LLP serves as the Debtors' special counsel. The Debtors' auditors and accountant are KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors are Joele Frank, Wilkinson Brimmer Katcher; their business advisors are Alvarez & Marsal LLC and Ray Dombrowski serves as their chief restructuring officer; and their claims and noticing agent is Kurtzman Carson Consultants LLC. As of December 31, 2008, the Debtors had total assets of $3.06 billion and total debts of $1.02 billion. Bankruptcy Creditors' Service, Inc., publishes Chemtura Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Chemtura Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CINCINNATI BELL: Fitch Downgrades Issuer Default Rating to 'B' -------------------------------------------------------------- Fitch Ratings has downgraded Cincinnati Bell Inc.'s Issuer Default Rating to 'B' from 'B+'. Other issue ratings were downgraded: Cincinnati Bell, Inc. -- IDR to 'B' from 'B+'; -- $40 million senior secured notes due 2023 to 'BB/RR1' from 'BB+/RR1'; -- $752 million senior unsecured notes to 'B/RR4' from 'BB- /RR3'; -- $625 million senior subordinated notes to 'CCC/RR6' from 'B/RR5'; -- $129 million convertible preferred stock to 'CCC/RR6' from 'B-/RR6'. Cincinnati Bell Telephone -- IDR to 'B' from 'B+'; -- $208 million senior unsecured notes to 'BB/RR1' from 'BB+/RR1'. In addition, Fitch has assigned these ratings to CBB's new credit agreement: Cincinnati Bell, Inc. -- $210 million senior secured revolving credit facility due 2014 'BB/RR1'; -- $760 million senior secured Term Loan B due 2017 'BB/RR1'. Fitch has withdrawn these ratings, which had been on Rating Watch Negative, as the facilities were terminated upon the entry into the new credit agreement: Cincinnati Bell, Inc. -- Senior secured revolving credit facility due 2012 'BB+/RR1'; -- Senior secured Term Loan B due 2012 'BB+/RR1'. Fitch has removed the ratings from Rating Watch Negative and a Stable Rating Outlook has been assigned. The downgrade follows a review of CBB's acquisition of privately held data center operator CyrusOne Networks, LLC in a cash transaction approximating $525 million. The downgrade reflects the increase in financial and business risk caused by the transaction, as well as a potentially more aggressive strategy on the part of CBB to expand its data center business. Fitch estimates the acquisition will increase CBB's pro forma year-end 2010 leverage to approximately 5.0 times from 4.1x at the end of 2009. In the long run the acquisition could be a potential positive as it will further diversify CBB's revenues and cash flows if the rapid growth rates in the data center business are realized. However, Fitch believes CBB's business risk has increased given the uncertainty that the growth rates in the data center business can be sustained at high levels, and indications that CBB is likely to continue to be aggressive in expanding the data center business nationally and, potentially, internationally. To finance the transaction, CBB obtained a senior secured revolving and term loan credit facility totaling $970 million. The company replaced an existing $210 million senior secured revolving credit facility, which matured in August 2012, with a new $210 million secured facility maturing in 2014. The new $760 million secured Term Loan B facility was used to repay the $204 million outstanding on the previous Term Loan B facility and to close the acquisition. The new Term Loan B facility will mature in 2017 if the company has successfully redeemed and repaid in full its $252 million senior unsecured notes due in 2015. If the notes are not redeemed prior to November 2014, the term loan will mature in November 2014. The ratings also reflect CBB's diversified revenue base associated with its business model, which integrates the wireline and wireless businesses. The company's results have been pressured by the economy, as well as by competition in the wireline and wireless business segments. CBB reported total debt outstanding of $2.5 billion at March 31, 2010, an increase of $541 million from year-end 2009. In April 2010 the company redeemed $569 million in subordinated debt due in 2014, using the proceeds from a $625 million subordinated debt issue due in 2018. At March 31, 2010, the company did not have any debt outstanding under its old $210 million secured revolving credit facility, although the amount available was reduced by $24.8 million in letters of credit. The new credit facility is guaranteed by CBB and all subsidiaries except CBT, Cincinnati Bell Extended Territories LLC (CBT's out-of-region subsidiary), Cincinnati Bell Funding, and certain immaterial subsidiaries. The subsidiaries that guarantee the credit facility also guarantee the parent's senior unsecured and senior subordinated notes (with certain immaterial exceptions). CBB's obligations under the credit facility are collateralized by perfected first-priority pledges and security interests in the equity interests in its subsidiaries (other than subsidiaries of CBT, CBF, and certain immaterial subsidiaries) and certain personal property and intellectual property of CBB and its subsidiaries (other than that of CBT, CBET, CBF, and certain immaterial subsidiaries). Debt maturities, excluding capital leases, are moderate in 2010 and 2011, approximately $6 million and $8 million, respectively. The new term loan amortizes at a quarterly rate of $1.9 million. CBB also has a $100 million accounts receivable securitization program, which did not have any outstanding amounts as of March 31, 2010. The receivables facility, which has a lower overall cost of financing than the company's revolver or term loan facility, expires in March 2012, subject to annual bank renewals in the second quarter of each year. At March 31, 2010, CBB had approximately $577 million in cash and, for the last 12-month period generated approximately $91 million in free cash flow under Fitch's definition. Prior to the acquisition, CBB's 2010 guidance called for the company to generate approximately $130 million in FCF as defined by the company. Fitch believes the incremental interest expense associated with the acquisition and the slightly negative to breakeven FCF position of CyrusOne could cause free cash flow to remain under $100 million in 2010. The company announced a new $150 million stock repurchase program in February 2010 but had not completed any repurchases in the first quarter of 2010. CITADEL BROADCASTING: S&P Withdraws 'D' Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its unsolicited ratings on Citadel Broadcasting Corp., including the unsolicited 'D' corporate credit rating. The ratings withdrawal follows Citadel's recent emergence from Chapter 11 protection on June 3, 2010. All previously rated debt was extinguished. This unsolicited rating(s) was initiated by Standard & Poor's. It may be based solely on publicly available information and may or may not involve the participation of the issuer's management. Standard & Poor's has used information from sources believed to be reliable, but does not guarantee the accuracy, adequacy, or completeness of any information used. CITIGROUP INC: Plans to Raise >$3-Bil. for Own P/E & Hedge Funds ---------------------------------------------------------------- Bradley Keoun at Bloomberg News reports that Citigroup Inc. plans to raise more than $3 billion for its private-equity and hedge funds, even as U.S. lawmakers consider banning banks from owning and investing in so-called alternative funds, according to people with direct knowledge of the plan. Sources told Bloomberg Citi Capital Advisors, which oversees about $14 billion, may seek $1.5 billion for private equity this year and $750 million for hedge funds. Bloomberg says the people declined to be identified because the plans aren't public. An additional $1 billion is targeted next year for hedge funds, the people told Bloomberg. The report relates Citi Capital Advisors is the former Citi Alternative Investments unit, renamed last year after more than a dozen of its funds with almost $80 billion of assets were shuttered or frozen amid the global financial crisis, causing more than $3 billion of losses for Citigroup. The report relates John Havens, 53, head of Citigroup's trading and investment-banking division, in April 2009 tapped a pair of former Morgan Stanley colleagues, James O'Brien, 50, and Jonathan Dorfman, 48, to rebuild the alternative-investing unit. Of the 16 funds listed in a March 2008 Citi Alternative Investments brochure, 11 have been closed, sold, renamed or merged into other funds. About Citigroup Based in New York, Citigroup Inc. (NYSE: C) -- is a global diversified financial services holding company whose businesses provide a broad range of financial services to consumer and corporate customers. Citigroup has roughly 200 million customer accounts and does business in more than 140 countries. Citigroup's businesses are aligned in three reporting segments: (i) Citicorp, which consists of Regional Consumer Banking (in North America, EMEA, Asia, and Latin America) and the Institutional Clients Group (Securities and Banking, including the Private Bank, and Transaction Services); (ii) Citi Holdings, which consists of Brokerage and Asset Management, Local Consumer Lending, and a Special Asset Pool; and (iii) Corporate/Other. As reported in the Troubled Company Reporter on November 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. The U.S. Treasury and the Federal Deposit Insurance Corporation agreed to provide protection against the possibility of unusually large losses on an asset pool of roughly $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup issued preferred shares to the Treasury and FDIC. The Federal Reserve agreed to backstop residual risk in the asset pool through a non-recourse loan. Citigroup, the third-biggest U.S. bank, received $45 billion in bailout aid. Other bailed-out banks, including Bank of America Corp., Wells Fargo & Co., have pledged to repay TARP money. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, repaid TARP funds in June. Citigroup is selling assets to repay the bailout funds. Citigroup is one of the banks that, according to results of the government's stress test, need more capital. CONTECH CONSTRUCTION: Bank Debt Trades at 26% Off ------------------------------------------------- Participations in a syndicated loan under which CONTECH Construction Products, Inc., is a borrower traded in the secondary market at 73.85 cents-on-the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 15.20 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 31, 2013, and carries Moody's B1 rating and Standard & Poor's B rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. CONTECH Construction Products, Inc. -- http://www.contech-cpi.com/ -- headquartered in West Chester, Ohio, makes, distributes, and installs civil engineering products related to environmental storm water, drainage, bridges, walls, and earth stabilization. CONTECH sells to builders of commercial, industrial, and public projects, as well as large-scale residential communities. Products range from retaining walls and water-detention vaults to storm water pipes and bridges in a variety of types for vehicular or pedestrian use. CONTECH has dealers, distributors, or manufacturing plants in all 50 U.S. states and a national sales organization of more than 350 people. Investment firm Apax Partners owns CONTECH. As reported by the Troubled Company Reporter on July 30, 2009, Moody's affirmed the ratings of Contech Construction Products, Inc. -- Corporate Family and Probability of Default Ratings at B2. The outlook has been changed to negative from stable. The negative outlook reflects the risk that Contech's ability to navigate the downturn in construction spending may be hindered by its highly leveraged capital structure and diminished headroom under its financial covenants. COURTYARD PROPERTIES: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Courtyard Properties, LLC P.O. Box 9120 Columbus, MS 39705 Bankruptcy Case No.: 10-12955 Chapter 11 Petition Date: June 16, 2010 Court: United States Bankruptcy Court Northern District of Mississippi (Aberdeen) Judge: David W. Houston III Debtor's Counsel: Melanie T. Vardaman, Esq. Harris Jernigan & Geno, PLLC P.O. Box 3380 Ridgeland, MS 39158-3380 Tel: (601) 427-0048 Fax: (601) 427-0050 E-mail: mvardaman@harrisgeno.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 largest unsecured creditors together with its petition. The petition was signed by Thomas E. Vice, managing member. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- North Meadow Apartments, LLC 09-12585 05/20/09 TEV Investment Properties, LLC 04-17998 12/16/04 Thomas E. Vice and Diane F. Vice 08-11981 05/21/08 COYOTES HOCKEY: Iced Edge Meets Proof of Financing Deadline ----------------------------------------------------------- Mike Sunnucks at Business Journal of Phoenix reports that Ice Edge Holdings has met the proof of financing deadline set by the city of Glendale as part of the investment's group efforts to buy Phoenix Coyotes' hockey team. Ice Edge officials outlined their plans to the league earlier this week in New York City. Dewey Ranch Hockey LLC, Arena Management Group, LLC, Coyotes Holdings, LLC, and Coyotes Hockey, LLC -- owners and affiliates of the Phoenix Coyotes National Hockey League team -- filed for Chapter 11 protection (Bankr. D. Ariz. Case No. 09-09488) on May 5, 2009. The Debtors are represented by Thomas J. Salerno, Esq., at Squire, Sanders & Dempsey, LLP, in Phoenix, and estimate their assets and liabilities are between $100 million and $500 million. In the third quarter of 2009, Judge Redfield T. Baum approved the sale of the Phoenix Coyotes to the National Hockey League, which had bought the team to quash a plan by bidder Jim Balsillie's to move the team to Ontario, Canada. Coyotes was sent to Chapter 11 to effectuate a sale by owner Jerry Moyes to Mr. Balsillie. The NHL is in the process of selling the team. CRACKER BARREL: Bank Debt Trades at 3% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Cracker Barrel Old Country Store, Inc., is a borrower traded in the secondary market at 96.90 cents-on-the-dollar during the week ended June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.85 percentage points from the previous week, The Journal relates. The Company pays 150 basis points above LIBOR to borrow under the facility. The bank loan matures on April 27, 2013, and carries Moody's Ba3 rating and Standard & Poor's BB rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. As reported by the Troubled Company Reporter on Oct. 22, 2009, Moody's affirmed all ratings of Cracker Barrel Old Country Store, Inc., including its Ba3 Corporate Family Rating and Probability of Default Rating and Ba3 senior secured rating. In addition, the outlook for CBRL was changed to stable from negative. On Oct. 16, 2009, The TCR stated that Standard & Poor's revised its outlook on Cracker Barrel Old Country Store, Inc., to stable from negative because of improved credit metrics and improved cushion over financial covenants. S&P also affirmed the ratings on the company, including the 'BB-' corporate credit rating. Cracker Barrel Old Country Store, Inc., headquartered in Tennessee, owns and operates the Cracker Barrel Old Country Store restaurant and retail concept with approximately 590 restaurants in 41 states. Annual revenues are approximately $2.4 billion. CULLIGAN INTERNATIONAL: Bank Debt Trades at 19% Off --------------------------------------------------- Participations in a syndicated loan under which Culligan International Co. is a borrower traded in the secondary market at 80.88 cents-on-the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.66 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 16, 2012, and carries Moody's B3 rating and Standard & Poor's B- rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Culligan International Co. is a water services provider based in Rosemont, Illinois. The company distributes its products primarily through an extensive dealer network. CYTOCORE INC: Posts $469,000 Net Loss in Q1 Ended March 31 ---------------------------------------------------------- CytoCore Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $469,000 on $8,000 of revenue for the three months ended March 31, 2010, compared with a net loss of $1,933,000 on $14,000 of revenue for the same period a year ago. The Company's balance sheet as of March 31, 2010, showed $2,739,000 in assets and $5,062,000 of liabilities, for a stockholders' deficit of $2,323,000. The Company has incurred significant operating losses since its inception. Management expects that significant on-going operating expenditures will be necessary to successfully implement the Company's business plan and develop, manufacture and market its products. "These circumstances raise substantial doubt about CCI's ability to continue as a going concern." At March 31, 2010, the Company had $18,000 in cash, and does not have sufficient cash on hand to fund its operations. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?650d About Cytocore Inc. Headquartered in Chicago, Illinois, CytoCore Inc. (OTC BB: CYOE) -- http://www.cytocoreinc.com/-- is a biomolecular diagnostics company engaged in the design, development, and commercialization of cost-effective screening systems to assist in the early detection of cancer. CytoCore(R) is currently focused on the design, development, and marketing of its CytoCore Solutions(TM) System and related image analysis platform. The CytoCore Solutions(TM) System and associated products are intended to detect cancer and cancer-related diseases, and may be used in a laboratory, clinic, or doctor's office. DELPHI CORP: Methode Has Permission to Continue Infringement Suit ----------------------------------------------------------------- Bankruptcy Judge Robert Drain granted in part, denied in part and mooted in part Methode Electronics, Inc.'s motion to permit to continue postpetition litigation against reorganized Delphi with respect to a claim for anticipatory breach of contract before a Michigan state court and a claim for patent infringement before the U.S. District Court for the Eastern District of Michigan. Specifically, Judge Drain granted Methode's request to lift the injunction under the Modified First Amended Joint Plan of Reorganization to allow continuation of the litigation regarding patent infringement before the District Court as stipulated between the parties on the record at a May 20, 2010 hearing. Judge Drain also held in abeyance Methode's request to lift the Plan Injunction pending a stipulation between the parties or further application to the Court. Judge Drain also sustained the Reorganized Debtors' objection to a portion of Methode's Patent Claim that arose before June 1, 2009. Accordingly, Judge Drain disallowed the Patent Claim with respect to the portion that arose before the Petition Date. Judge Drain deemed moot Methode's request to overrule the Reorganized Debtors' timeliness objection with respect to the Contract Claim. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- was a global supplier of mobile electronics and transportation systems, including powertrain, safety, steering, thermal, and controls & security systems, electrical/electronic architecture, and in-car entertainment technologies. Delphi had approximately 146,600 employees and operates 150 wholly owned manufacturing sites in 34 countries with sales of $18.1 billion in 2008. The Company filed for Chapter 11 protection on October 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court confirmed Delphi's plan on January 25, 2008. The Plan was not consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. At the end of July 2009, Delphi obtained confirmation of a revised plan, build upon a sale of the assets to a entity formed by some of the lenders who provided $4 billion of debtor-in-possession financing, and General Motors Company. On October 6, 2009, Delphi Corp.'s Chapter 11 plan of reorganization became effective. A Master Disposition Agreement executed among Delphi Corporation, Motors Liquidation Company, General Motors Company, GM Components Holdings LLC, and DIP Holdco 3, LLC, divides Delphi's business among three separate parties -- DPH Holdings LLC, GM Components, and DIP Holdco 3. Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will remain responsible for the post-Effective Date administration and eventual closing of the Chapter 11 cases as well as the disposition of certain retained assets and payment of certain retained liabilities as provided under the Modified Plan. Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Delphi Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) DENNY HECKER: $83 Mil. of Chrysler Debt Held Nondischargeable ------------------------------------------------------------- WestLaw reports that a bankrupt automobile dealer's bad faith and willful abuse of the discovery process, as demonstrated by the false excuse that it offered in support of its failure to comply with a discovery request based on the federal government's supposed seizure of computers or servers from the debtor and his business entities, when, in fact, the government had not seized any computers or servers but merely created forensic images of data, or as demonstrated by his eleventh-hour production after having previously claimed that all discovery had been provided, was such as to warrant the extreme sanction of entry of a default judgment in favor of a creditor on its nondischargeability complaint. While the entry of default judgment as a discovery sanction should be rare, this remedy is appropriate when a party's failure to comply with discovery has been due to willfulness, bad faith, or any fault of the party. In re Hecker, --- B.R. ----, 2010 WL 654151 (Bankr. D. Minn.) (Kressel, J.). Dennis E. Hecker owned and operated dozens of auto dealerships, car rental franchises, and other businesses until 2009. During the course of his business, Mr. Hecker and entities owned or controlled by him borrowed more than $350 million from Chrysler Financial Services Americas LLC under a series of loan agreements. Mr. Hecker personally guaranteed repayment of the loans. Hecker and his entities defaulted on the loans in the summer and fall of 2008. Chrysler Financial responded by accelerating the indebtedness. Then Chrysler Financial exercised its rights against the collateral. Thereafter Chrysler Financial sued Mr. Hecker in Hennepin County District Court, alleging breach of contract based on his failure to honor his personal guarantees and failure to repay the accelerated indebtedness. On April 27, 2009, the state court entered a judgment against Mr. Hecker. Dennis E. Hecker filed a voluntary chapter 7 petition (Bankr. D. Minn. Case No. 09-50779) on June 4, 2009. Chrysler Financial filed a dischargeability action (Bankr. D. Minn. Adv. Pro. No. 09- 5019) on July 8, 2009. Chrysler Financial alleged that $83 million of $350 million owed is nondischargeable under 11 U.S.C. Sec. 523(a) because Mr. Hecker allegedly obtained it through the use of false pretenses, false representations, fraud, defalcation, and embezzlement. Specifically, Chrysler Financial alleged that Mr. Hecker personally presented a forged, doctored document to Chrysler Financial in order to obtain loan advances, and that Mr. Hecker misappropriated vehicle sale proceeds that were to be held in trust. Although Rule 37(b)(ii) of the Federal Rules of Civil Procedure provides a number of sanctions for discovery misconduct, Chrysler Financial requested the most severe. "Less severe sanctions have not motivated the defendant to comply with his discovery obligations, and after numerous hearings over these issues, I am certain than there is no lesser sanction which would result in the defendant's compliance," the Honorable Robert J. Kressel says. Accordingly, Judge Kressel granted Chrysler Financial's motion for sanctions and ordered $83 million of the judgment against Mr. Hecker, together with accrued interest, not dischargeable in the Chapter 7 bankruptcy case. DOLLAR THRIFTY: Completes New $300 Million Asset Backed Financing ----------------------------------------------------------------- Dollar Thrifty Automotive Group, Inc.'s Rental Car Finance Corp. subsidiary completed a private placement of Rental Car Asset Backed Variable Funding Notes, Series 2010-2. When fully funded, the notes will provide $300 million of additional fleet financing. The revolving period for the notes ends in June 2013, with scheduled amortization payments due over a six-month period beginning in July 2013 and ending in December 2013. The notes will bear interest at a spread of 375 basis points above the one- month LIBOR rate when drawn. The notes have an advance rate of approximately 65%. "We have added $500 million of vehicle financing capacity during the first six months of 2010, demonstrating our ability to access the markets at competitive interest rates and enhancement levels," said Scott L. Thompson, President and Chief Executive Officer. "This transaction provides the Company with additional long-term fleet financing capacity well in advance of our next scheduled fleet debt maturity, at a rate that is below the effective fixed rates of interest paid in respect of our existing medium term notes." The Company noted that its next scheduled fleet debt maturity begins in December 2010 when $600 million of its Series 2006-1 notes begin amortizing over a six-month period ending in May 2011. The Company also noted that it has no significant scheduled corporate debt maturities until June 2013, when borrowings under the Company's existing Senior Secured Credit Facility come due and the Facility terminates. "Subject to market conditions, we expect to complete an additional $300 million of fleet financing during the fourth quarter of 2010, which will, when combined with the availability under the new Series 2010-2 notes, provide adequate replacement financing for the Series 2006-1 notes," said Thompson. The Series 2010-2 notes have not been, and will not be, registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. About Dollar Thrifty About Dollar Thrifty Dollar Thrifty Automotive Group, Inc., is headquartered in Tulsa, Oklahoma. Driven by the mission "Value Every Time," the Company's brands, Dollar Rent A Car and Thrifty Car Rental, serve value- conscious travelers in over 70 countries. Dollar and Thrifty have over 600 corporate and franchised locations in the United States and Canada, operating in virtually all of the top U.S. and Canadian airport markets. The Company's approximately 6,400 employees are located mainly in North America, but global service capabilities exist through an expanding international franchise network. The Company's balance sheet at Dec. 31, 2009, showed $2.64 billion in total assets and $2.25 billion in total liabilities. I November 2009, Standard & Poor's Ratings Services raised its corporate credit rating of Dollar Thrifty to 'B-' from 'CCC', in light of the Company's improved operating and financial performance that began in mid-2009. Moody's Investors Service also upgraded Dollar Thrifty's Probability of Default Rating to 'B3' from 'Caa2' and Corporate Family Rating to 'B3' from 'Caa3' DORAL ENERGY: Delays Filing of Form 10-Q for April 30 Quarter ------------------------------------------------------------- In a regulatory filing Monday, Doral Energy Corp. says its quarterly report on Form 10-Q for the period ended April 30, 2010, will be delayed as management was unable to obtain the business information necessary to complete the preparation of the interim financial statements and the review of these financial statements by the Company's auditors in time for filing. About Doral Energy Doral Energy Corp. (OTC BB: DRLY) -- http://www.DoralEnergy.com/ -- is an oil and gas exploitation and production company headquartered in Midland, Texas. Doral Energy Corp.'s strategy is to grow a portfolio of under-developed production and exploitation assets with the potential for generating near-term increases in existing production through operational improvements, and longer- term development of proved undeveloped reserves by infill drilling. Doral's first producing assets, the Hanson Properties in Eddy County, New Mexico, are located in the northwestern Permian Basin of New Mexico. The Company's balance sheet as of January 31, 2010, showed $20,726,351 in total assets, $10,009,187 of debt, and stockholders' equity of $10,717,164. * * * Malone & Bailey, PC, in Houston, Texas, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended July 31, 2009. The independent auditors noted that the Company has negative working capital and recurring losses from operations. DUBAI WORLD: Buyers Drop ISS Bid After DOJ Probe Unveiled --------------------------------------------------------- The Financial Times' Martin Arnold in London and Simeon Kerr in Dubai report that Dubai World's sale of Inchcape Shipping Services has been dealt a blow after prospective bidders learnt of an investigation they believe the U.S. Department of Justice is conducting into the business. The FT reports that several private equity groups dropped out of the bidding after discovering during due diligence what they believe is an investigation by the DoJ over its contract to service the U.S. Navy's Fifth Fleet in the Middle East. According to The FT, people familiar with the matter said U.S. private equity groups General Atlantic and Carlyle and Canadian pension fund Omers all decided not to submit second-round bids. The FT notes Cinven and CVC Capital Partners, the UK-based private equity groups, submitted non-binding bids late last month. But the bids were conditional on receiving more information about what they believe is a U.S. probe and the two groups have stopped work on a deal. The FT, citing two people familiar with the shipping unit, says the private equity groups believe the DoJ is investigating the government services division of ISS along with some of its rivals. One of the people said the private equity groups had learnt that an investigation had been going on for several months and was triggered by information from one of ISS's competitors about alleged corruption. The FT relates ISS is one of the few successful investments in Dubai World's Istithmar investment portfolio, which includes the QE2 ocean liner and performance company Cirque du Soleil. Istithmar bought ISS for $285 million at the start of its buying spree between 2006 and 2008. It has put the company up for sale for $800 million. According to the FT, ISS said, "These claims by third parties are an apparent attempt to undermine the value of a world class asset. It goes without saying that there would be no appetite to sell this business on the cheap. Istithmar has a number of years in which to realize the correct value of any assets it wishes to divest." Restructuring Deal According to the Troubled Company Reporter on June 2, 2010, The Wall Street Journal said Dubai World reached a broad agreement to pay off its creditors and reduce its $23.5 billion of debt. Aidan Birkett, chief restructuring officer of Dubai World, told Zawya Dow Jones that Dubai World will now seek a final deal with all of its creditors by the end of June. Under the deal, creditors will be repaid in full but the payment period will be extended, while the government of Dubai would convert debt into equity and help fund the restructuring. According to The Journal, the first portion, or tranche, of $4.4 billion will be paid in five years, with 1% annual interest in cash but no shortfall government guarantee. The second tranche of $10 billion will be paid over eight years, with 1% interest plus varying payment-in-kind interest and shortfall guarantees. Lenders will have to choose between three options, depending on their exposure and on their priorities in regard to the shortfall guarantee and payment in kind. The government of Dubai will convert $8.9 billion of debt and claims into equity in Nakheel, the real-estate arm of Dubai World, and commit to fund as much as $500 million of Nakheel's expenses and an interest facility of as much as $1 billion while maintaining 100% ownership of the Company. As part of the deal, Nakheel's trade creditors were offered repayment through a mix of 40% cash and 60% in a sukuk-a bond structured to comply with Islamic law-with a 10% annual return. Nakheel paid a $980 million Islamic bond. The Journal said the agreement with the creditors' coordinating committee accounts for about 60% of Dubai World's bank lenders. The remaining creditors holding 40% of the group's debt have yet to accept the deal. 6-Month Standstill In November 2009, the Troubled Company Reporter ran a story about Dubai World seeking a six-month standstill on its debt obligations. The government of Dubai said it would restructure Dubai World and has appointed Deloitte LLP to lead the restructuring effort, naming an executive at the consultancy as the group's "chief restructuring officer." Bloomberg News' Arif Sharif and Laura Cochrane said Dubai World has US$59 billion in liabilities. Bloomberg said Dubai accumulated US$80 billion of debt by expanding in banking, real estate and transportation before credit markets seized up last year. The Wall Street Journal said Standard & Poor's in an October report estimated Dubai World could be responsible for as much as 50% of Dubai's total government and corporate debt load of some US$80 billion to US$90 billion. About Dubai World Dubai World -- http://www.dubaiworld.ae/-- is Dubai's flag bearer in global investments. As a holding company it operates a highly diversified spectrum of industrial segments and plays a major role in the emirate's rapid economic growth. Dubai World's investment spans four strategic growth areas of 21st Century commerce namely, Transport & Logistics, Drydocks & Maritime, Urban Development and Investment & Financial Services. Dubai World's portfolio includes DP World, one of the largest marine terminal operators in the world; Drydocks World & Dubai Maritime City designed to turn Dubai into a major ship-building and maritime hub; Economic Zones World which operates several free zones around the world including Jafza and TechnoPark in Dubai; Nakheel the property developer behind iconic projects such as The Palm Islands and The World among others; Limitless the international real estate master planner with current development projects in various parts of the world; Leisurecorp a global sports and leisure investment group, reshaping the industry by unlocking value across investment, development and brand opportunities; Dubai World Africa which oversees the regional development and portfolio of investments in the African continent; and Istithmar World, the group's investment arm that has a global footprint in finance, capital, leisure, aviation and various other business ventures. EAST WILLIAMSBURG: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: East Williamsburg LLC 621 Church Avenue Brooklyn, NY 11218 347-291-1776 Bankruptcy Case No.: 10-45703 Chapter 11 Petition Date: June 17, 2010 Court: U.S. Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Jerome Feller Debtor's Counsel: Richard Tanenbaum, Esq. 44 Court Street, Suite 917 Brooklyn, NY 11201 Tel: (347) 291-1776 Fax: (866) 413-9205 E-mail: nybankruptcy@gmail.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 3 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nyeb10-45703.pdf The petition was signed by Solomon Steinlauf, president. EIGEN INC: Kazi Financing Requires Sale by June 30 -------------------------------------------------- The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware, in a final order, authorized Eigen, Inc., to obtain secured postpetition financing from Kazi Management VI, LLC, and to use cash collateral. The Debtor has a $20,188,546 prepetition debt to Kazi. The lender agreed to provide the Debtor a postpetition revolving line of credit amounting to $3.7 million with a 9% interest rate. The Debtor will use the money to fund its Chapter 11 case, pay suppliers and other parties. The DIP loan is also subject to, among other things: (i) a written agreement for the sale of substantially all assets by June 23; (ii) an order approving the sale by June 28; and (iii) the closing of the sale by June 30. The Debtor is also authorized to use the cash collateral. The Debtor will also use the cash collateral to provide additional liquidity. As adequate protection, the lender is granted: -- first priority and junior security interests in all of the Debtors property to secure its obligations under the postpetition financing; -- superpriority administrative expense claim status. 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. ENERGAS RESOURCES: Posts $77,600 Net Loss in Q1 Ended April 30 -------------------------------------------------------------- Energas Resources, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $77,606 on $63,158 of revenue for the three months ended April 30, 2010, compared with a net loss of $177,329 on $43,438 of revenue for the same period ended April 30, 2009. The Company's balance sheet at April 30, 2010, showed $7.4 million in assets, $949,953 of liabilities, and $6.4 million of shareholders' equity. As reported in the Troubled Company Reporter on May 25, 2010, Smith, Carney & Co., P.C., in Oklahoma City, Oklahoma, expressed substantial doubt about the Company's ability continue as a going concern after auditing the Company's financial statements for the year ended January 31, 2010. The independent auditors noted that as of January 31, 2010, the Company had incurred losses for the years ended January 31, 2010, and 2009 of $1.9 million and $2.5 million, respectively, and that the the Company's ability to continue as a going concern is dependent upon obtaining financing and achieving profitable levels of operations. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6509 About Energas Resources Oklahoma City, Okla.-based Energas Resources, Inc. -- http://www.energasresources.com/-- is involved in the exploration and development of oil and gas. The Company principally operates in the Arkoma Basin in Oklahoma and the Powder River Basin in Wyoming, and more recently in Texas. ENVIROSOLUTIONS HOLDINGS: 2nd Lien Lenders Object to Ch. 11 Plan ---------------------------------------------------------------- BankruptcyData.com reports that the ad hoc committee of holders of second lien note claims appointed in the EnviroSolutions Holdings case filed with the U.S. Bankruptcy Court an objection to the Debtors' Chapter 11 Joint Plan of Reorganization. The objection states, "the Prepetition Lenders want their cake and they want to eat it too. Working off a total enterprise value that the Ad Hoc Committee believes is too low, the Prepetition Lenders nonetheless have constructed a plan that delivers more than 100% of the alleged value to themselves and paltry alleged gifts to the other stakeholders - gifts which the holders of Second Lien Note Claims are coerced into accepting by impermissible death traps contained in the Plan." About EnviroSolutions Holdings Based in Manassas, Virginia, EnviroSolutions Holdings, Inc., is an integrated solid waste management company with a presence in Virginia, Maryland, New Jersey, Kentucky, West Virginia, and the District of Columbia. The company's assets include three landfills, four transfer stations and several hauling and collection operations. The Company filed for Chapter 11 bankruptcy protection on March 10, 2010 (Bankr. S.D.N.Y. Case No. 10-11261). John Longmire, Esq., at Willkie Farr & Gallagher LLP, assists the Company in its restructuring effort. Alvarez and Marsal North America, LLC, is the Company's restructuring advisor. The Company's financial advisor is Barclays Capital. The Company estimated its assets and liabilities at $100,000,001 to $500,000,000. EUOKO GROUP: Delays Filing of Form 10-Q for Period Ended April 30 ----------------------------------------------------------------- Euoko Group, Inc., discloses that its quarterly report on Form 10- Q for the period ended April 30, 2010, will be delayed, because the Company's auditors have not completed their review of the Form 10-Q. The Company says that it is not anticipated that there will be any significant change in results of operations from the corresponding period for the last fiscal year. Toronto, Ontario-based Euoko Group, Inc. is engaged in the business of the development, marketing and distribution of skin treatments. The Company's common stock is quoted on the OTC Bulletin Board under the symbol "EUOK". The Company's balance sheet as of January 31, 2010, showed $1,241,237 in assets and $7,999,645 of debts, for a stockholders' deficit of $6,758,408. * * * Weinberg and Company, P.A, in Los Angeles, Calif., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended July 31, 2009. The independent auditors noted that the Company has had recurring losses from operations and had a stockholders' deficiency as of July 31, 2009. FELCOR LODGING: S&P Revises Outlook on 'B-' Rating to 'Stable' -------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Irving, Texas-based FelCor Lodging Trust Inc. to stable from negative. S&P affirmed all ratings on the company, including the 'B-' corporate credit rating. "The revision of the outlook to stable reflects the improvement in FelCor's liquidity profile following the issuance of a significant level of common equity, and S&P's belief that as a result, the company is positioned to manage the refinancing of its remaining maturities in 2011," explained Standard & Poor's credit analyst Emile Courtney. In addition, FelCor's operating performance will likely benefit from the U.S. hotel industry reaching a positive inflection point (in S&P's view) toward the end of the March 2010 quarter in terms of revenue per available room. The 'B-' rating reflects high expected leverage of over 11x (by S&P's measure, including operating leases and intermediate 50% debt treatment of preferred stock) at the end of 2010, and expected funds from operations coverage of interest expense and preferred dividends of just over 1x in 2010. On June 16, 2010, FelCor announced the pricing of 27.5 million shares of common stock at a price of $5.50 per share with a 30-day option for underwriters to purchase up to 4.125 million additional shares of common stock. The company estimates that the net proceeds from the equity offering will be approximately $145 million ($167 million if the underwriters exercise their option to purchase the additional shares). Cash on hand totaled $276 million at March 2010 and, pro forma for the equity raise, will total between approximately $420 million and $445 million (depending upon whether underwriters exercise the option to purchase additional shares). The pro forma proceeds will be used to repay approximately $177 million of mortgage debt scheduled to mature in May 2012 at a negotiated price of $130 million plus accrued interest. The mortgages secure two hotel properties, which will be unencumbered subsequent to the repayment. S&P expects the remaining pro forma cash balances to be used to repay debt balances due in 2011 and to pursue acquisition opportunities. FelCor is a real estate investment trust that owns 84 consolidated hotels in 23 states and Canada. Approximately 80% of the company's hotels operate in the upper upscale segment. Brands include Embassy Suites, Doubletree, Hilton, Renaissance, Sheraton, Westin, and Holiday Inn. FELIX M FHIMA: DIP Loan Hearing Continued Until June 23 ------------------------------------------------------- The Hon. Ernest Robles of the U.S. Bankruptcy Court for the Central District of California has continued until June 23, 2010, at 10:00 a.m., the hearing on Felix M. Fhima and Patricia H. Fhim's motion to incur postpetition financing from the holders of the pre-existing liens. The hearing will be held at 255 East Temple Street, Courtroom 1568, 15th Floor, Los Angeles, California. The Debtors own a home located at 1264 South Bedford Drive, Los Angeles, California, and an investment property at 616 North Foothill Road, Berverly Hills, California. The Debtors relate these creditors hold a pre-existing lien on the property: -- Chase Mortgage; -- Tony Ebrahams; -- Michael Brandt; and -- Yula Boys High School. The Debtors need financing to complete the construction work on the Foothill Road property. The Debtors were unable to secure adequate unsecured postpetition financing. The terms of loan includes: Principal amount: $60,000 Maturity Date: December 31 Interest Rate: 12% The Debtors will grant each of the lien holders a lien senior to the pre-existing liens on the Foothill property which has a market value of $9.5 million as of February 16. The Debtors are represented by: Michael Jay Berger, Esq. The Law Offices of Michael Jay Berger 9454 Wilshire Blvd., 6th Floor Beverly Hills, CA 90212-2929 Tel: (310) 271-6223 Fax: (310) 271-9805 E-mail: michael.berger@bankruptcypower.com About Felix M. Fhima Los Angeles, California-based Felix M. Fhima and Patricia H. Fhima filed for Chapter 11 bankruptcy protection on February 18, 2010 (Bankr. C.D. Calif. Case No. 10-15854). Michael Jay Berger, Esq., who has an office in Beverly Hills, California, assists the Debtors in their restructuring efforts. The Debtors listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. FOOT LOCKER: Moody's Gives Stable Outlook, Affirms 'Ba3' Rating --------------------------------------------------------------- Moody's Investors Service revised Foot Locker, Inc.'s ratings outlook to stable from negative, and affirmed the company's debt ratings, including its Ba3 corporate family and probability of default ratings and the B1 rating on its 8.5% senior unsecured notes. "The stable outlook reflects Moody's expectation that despite very high lease adjusted leverage, the company's strong liquidity and competitive market position will support its plan to improve profitability and credit metrics over the near-to-intermediate- term," said Moody's analyst, Mike Zuccaro. "The outlook also recognizes that it will take time to repair margins, and that the potential exists for modest volatility in performance over the next year as the economy struggles to recover." Material negative variances in earnings or the fundamental operating environment combined with a significant deterioration in liquidity could lead to downward pressure in the outlook and/or ratings, as could more aggressive financial policies such debt- financed share repurchases or acquisitions. Foot Locker's Ba3 CFR reflects the company's global diversification, credible market position, and its moderate scale as a global specialty retailer. The rating also favorably reflects the company's very good liquidity and modest level of funded debt, which is currently well below its excess cash level. Constraining the rating is Foot Locker's weak credit metrics, particularly its very high leverage, as measured by lease-adjusted debt/EBITDA, its significant business risk as a specialty retailer and its highly seasonal operations. As a result of the company's narrow focus on athletic footwear and apparel, Foot Locker is highly susceptible to changing fashion trends and its cash flow from operations generation is heavily reliant on the fourth quarter holiday selling season. These ratings were affirmed: -- Corporate family rating at Ba3; -- Probability of default rating at Ba3; -- Senior unsecured notes at B1 (LGD4, 65%). The rating outlook is stable. Moody's last rating action for Foot Locker was on April 23, 2009, when the Ba3 CFR was confirmed with a negative outlook. Foot Locker, Inc., is a specialty athletic retailer, operating 3,485 stores in 21 countries in North America, Europe, and Australia. Store nameplates include Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, Champs Sports, while its direct-to- customer channel is Footlocker.com/Eastbay/CCS. Revenue for the 12-month period ended May 1, 2010, exceeded $4.9 billion. FORD MOTOR: Bank Debt Trades at 6% Off in Secondary Market ---------------------------------------------------------- Participations in a syndicated loan under which Ford Motor Co. is a borrower traded in the secondary market at 93.77 cents-on-the- dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.15 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Dec. 15, 2013, and carries Moody's Ba3 rating and Standard & Poor's B- rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The Company provides financial services through Ford Motor Credit Company. At December 31, 2009, the Company had $194.85 billion in total assets against $201.37 billion in total liabilities. Total deficit attributable to Ford Motor at December 31, 2009, was $7.82 billion. As reported by the Troubled Company Reporter on June 7, 2010, Moody's released an Issuer Comment stating that the ratings and outlook of Ford Motor Company are being maintained following the company's announcement that it will end production of Mercury vehicles during the fourth quarter of this year. Ford's ratings include: B1 Corporate Family Rating and Probability of Default Rating; Ba1 secured rating; B2 unsecured rating; and SGL-2 Speculative Grade Liquidity Rating. The rating outlook is stable. The last rating action on Ford was an upgrade of the company's Corporate Family Rating to B1 on May 18, 2010. FREDDIE MAC: Notifies NYSE of Plans to Delist Common Stock ---------------------------------------------------------- Freddie Mac notified the New York Stock Exchange of its intent to delist its common stock and the 20 listed classes of its preferred stock. This notice was made pursuant to a directive by the Federal Housing Finance Agency, Freddie Mac's conservator, requiring Freddie Mac to delist its common and preferred securities from the NYSE. According to a press release by FHFA, the Acting Director of FHFA issued similar directives to both Freddie Mac and Fannie Mae. The transition to the OTCBB will not affect the Company's obligation to file periodic and certain other reports with the SEC under applicable federal securities laws. About Freddie Mac Based in McLean, Virginia, Freddie Mac (NYSE: FRE) -- http://www.FreddieMac.com/-- was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. The Company's participation in the secondary mortgage market includes providing its credit guarantee for residential mortgages originated by mortgage lenders and investing in mortgage loans and mortgage- related securities. The Company earns management and guarantee fees for providing its guarantee and performing management activities (such as ongoing trustee services, administration of pass-through amounts, paying agent services, tax reporting and other required services) with respect to issued PCs and Structured Securities. Freddie Mac is under conservatorship and is dependent upon the continued support of Treasury and FHFA to continue operating its business. The Company received $6.1 billion and $30.8 billion in June 2009 and March 2009, respectively, pursuant to draw requests that FHFA submitted to Treasury on the Company's behalf to address the deficits in the Company's net worth as of March 31, 2009, and December 31, 2008, respectively. As a result of funding of the draw requests, the aggregate liquidation preference on the senior preferred stock owned by Treasury increased from $14.8 billion as of December 31, 2008, to $51.7 billion on December 31, 2009. FREESCALE SEMICON: Bank Debt Trades at 12% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Freescale Semiconductor, Inc., is a borrower traded in the secondary market at 87.91 cents-on-the-dollar during the week ended June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.80 percentage points from the previous week, The Journal relates. The Company pays 425 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 16, 2016, and carries Moody's B2 rating and Standard & Poor's B- rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Freescale Semiconductor, Inc. -- http://www.freescale.com/-- once Motorola's Semiconductor Products Sector, is one of the oldest and most diverse makers of microchips in the world. It produces many different kinds of chips for use in automobiles, computers, industrial equipment, wireless communications and networking equipment, and other applications. The company's global client roster includes such blue-chip companies as Alcatel-Lucent, Bosch, Cisco Systems, Fujitsu, Hewlett-Packard, QUALCOMM, and Siemens, as well as former parent Motorola. Freescale nets about half of its sales from the Asia/Pacific region. The Blackstone Group, The Carlyle Group, Permira Advisers, and TPG Capital own the company. GARDNER DENVER: Moody's Raises Corporate Family Rating to 'Ba1' --------------------------------------------------------------- Moody's Investors Service has upgraded the corporate family rating of Gardner Denver, Inc., to Ba1 from Ba2 and the rating on the $125 million senior subordinated notes due 2013 to Ba2 from B1. The rating outlook is stable. The ratings upgrade was prompted by the substantial debt reduction executed by GDI during the deep cyclical downturn that followed its debt-financed acquisition of CompAir in October 2008. GDI's commitment to its conservative fiscal policies, low leverage and strong liquidity profile is key to this action as it helped to mitigate the company's exposure to cyclically weak end-markets that include the industrial manufacturing, land-based upstream energy, downstream energy, and transportation sectors. Further, the Ba1 rating incorporates GDI's solid credit metrics, sizeable aftermarket presence, global diversification and leadership position across its broad portfolio of compressors, blowers and pumps. Conversely, the rating is constrained by the company's relatively small revenue base, exposure to cyclical end-markets and propensity to execute sizeable debt-financed acquisitions. While GDI's aggressive acquisition strategy injects both integration and execution risk into GDI's credit profile, the company has a long and successful history of integrating new acquisitions and repaying acquisition related debt. At the Ba1 rating level, Moody's expects that GDI would have the capacity to restore credit metrics following any acquisition, independently or in the aggregate, within a 12 to 18 month period. The stable outlook reflects Moody's expectation that the modest top line growth seen in first quarter of 2010 will be sustained over the near term as the manufacturing sector continues its slow recovery. However, headwinds from limited investment in capacity additions by customers and weak backlogs in its engineered products business, particularly as it relates to new drilling pumps, are likely to temper organic growth. Margins are also expected to build on positive momentum in the first quarter as benefits from the streamlining of its global operations, headcount reductions and lean initiatives are leveraged across the increasing order volumes. Further, Moody's anticipates a modest decline in free cash flow in 2010, despite lower restructuring costs, as GDI reinvests in working capital to support growth and a full year of dividends are paid. The two notch upgrade of the senior subordinated bonds to Ba2 is driven by the repayment of unrated senior term loans and related increase the notes proportionate share of the capital structure. These ratings were upgraded: -- Corporate family rating to Ba1 from Ba2; -- Probability of default rating to Ba1 from Ba2; and -- $125 million senior subordinated notes due 2013 to Ba2 (LGD6, 92%) from B1 (LGD 6, 93%) These ratings were affirmed: -- SGL-1 speculative grade liquidity rating. The last rating action was on May 4, 2009, when the speculative grade liquidity rating was upgraded to SGL-1 from SGL-2. Headquartered in Quincy, Illinois, GDI is a leading worldwide manufacturer of highly engineered products, including compressors, liquid ring pumps and blowers for various industrial, medical, environmental, transportation and process applications, pumps used in the petroleum and industrial market segments and other fluid transfer equipment, such as loading arms and dry break couplers, serving chemical, petroleum and food industries. Revenue for the 12 months ended March 31, 2010, were roughly $1.7 billion. GATEWAY REAL: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Gateway Real Estate Investments, LLC 131 South Cliffwood Avenue Los Angeles, CA 90049 Tel: (310) 396-4400 Bankruptcy Case No.: 10-34506 Chapter 11 Petition Date: June 16, 2010 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Samuel L. Bufford Debtor's Counsel: Michael H. Weiss, Esq. Weiss & Spees 1925 Century Park E Ste 650 Los Angeles, CA 90064 Tel: (424) 245-3100 Fax: (424) 245-3101 E-mail: mw@weissandspees.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 largest unsecured creditors together with its petition. The petition was signed by Jamie Andrew Mazur, managing member. GENERAL LAND: Gets Court's Interim Nod to Use Cash Collateral ------------------------------------------------------------- General Land Corporation sought and obtained interim authorization from the Hon. Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts to use cash collateral until June 29, 2010. The Debtor is an affiliate of SW Boston Hotel Venture, LLC. In December 2008, the Debtor pledged certain of its assets as collateral for a loan from The Prudential Insurance Company of America to SW Boston. SW Boston owns the W Boston Hotel and Residences project. To fund the construction of the Project, SW Boston borrowed funds from Prudential and the City of Boston. As a condition to the financing of the Project, Prudential required that the Debtor guaranty, among other things, SW Boston's obligations to Prudential, and the City required that the Debtor guaranty, among other things, SW Boston's obligations to the City. D. Ethan Jeffery, Esq., at Hanify & King, P.C., the attorney for the Debtor, explained that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. The Debtors will use the collateral pursuant to a budget, a copy of which is available for free at: http://bankrupt.com/misc/GENERAL_LAND_budget.pdf In exchange for using the cash collateral, the Debtor will grant the prepetition lenders replacement liens. The Court has set a final hearing for June 29, 2010, at 1:30 p.m. on the Debtor's request to use cash collateral. Boston, Massachusetts-based General Land Corporation filed for Chapter 11 bankruptcy protection on June 4, 2010 (Bankr. D. Mass. Case No. 10-16174). Harold B. Murphy, Esq., at Hanify & King, P. C., assists the Company on its restructuring effort. The Company listed $1,000,001 to $10,000,000 in assets and $100,000,001 to $500,000,000 in liabilities. GENERAL MOTORS: Withdraws Requests for Loan Guarantees in Europe ---------------------------------------------------------------- BankruptcyData.com reports that General Motors (GM) announced that the Company and Opel/Vauxhall have decided to withdraw all applications for government loan guarantees across Europe. According to the corporate release, "There have been no material alterations in the funding requirements of Opel/Vauxhall as set out in the Viability Plan announced seven months ago. The validity and reasons for requesting government guarantees have also not changed, but the process has proven to be much more complex and longer than anticipated and the results are still not finalized or certain. In these circumstances, and given the need to progress the plan quickly, it has been decided to fund the requirements internally. GM's recently improved financial strength has also been a catalyst for making this decision." "We appreciate the support indicated by certain governments, especially the UK and Spain, but we need to move on," said Nick Reilly, president of GM Europe and Chairman of the Management Board of Opel/Vauxhall. "The decision of the German government last week was disappointing and means that the conclusion of these guarantees is again likely to be months away. To be clear, our funding needs have not changed and we were led to believe that loan guarantees made available to other European companies under the EU program to help offset the impact of the global economic crisis, would be equally available to Opel/Vauxhall. But, after a very long process defined by governments, this has turned out not to be the case," he said. "We are grateful for the decision and support of our parent company, which will allow us to move forward with confidence in this very competitive industry. We cannot afford to have uncertain funding plans and new time-consuming complex negotiations at this time when we need to keep investing in new products and technologies. With these new products and the impact of restructuring, we expect to return to profitability shortly," Reilly added. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 207,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At March 31, 2010, GM had US$136.021 billion in total assets, total liabilities of US$105.970 billion and preferred stock of US$6.998 billion, and non-controlling interests of US$814 million, resulting in total equity of US$23.053 billion. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GREAT ATLANTIC: S&P Junks Corporate Credit Rating From 'B-' ----------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its corporate credit rating on Montvale, N.J.-based The Great Atlantic & Pacific Tea Co. Inc. to 'CCC+' from 'B-'. The rating outlook is developing. At the same time, S&P lowered its senior secured debt rating to 'CCC+' from 'B-'. The recovery rating on the debt remains '4', indicating S&P's expectation of average (30%-50%) recovery for noteholders in the event of a payment default. S&P also lowered the senior unsecured debt rating to 'CCC-' from 'CCC', keeping the recovery rating at '6', indicating S&P's expectation of negligible (0%10%) recovery for noteholders in the event of a payment default. In addition, S&P lowered the rating on the convertible preferred stock to 'CC' from 'CCC-'. Also, S&P is assigning a preliminary 'CCC+' senior secured debt rating and a preliminary 'CCC-' senior unsecured and subordinated debt rating to the company's $500 million Rule 415 shelf filing. "The rating on A&P reflects its highly leveraged capital structure, meaningful multiemployer pension liability, limited free cash flow generation, and geographic concentration in the New York and New Jersey metropolitan area, said Standard & Poor's credit analyst Jayne M. Ross. Other factors include its participation in the highly competitive supermarket industry and continued very weak supermarket performance. "The company is very highly leveraged, and S&P is concerned that liquidity may not be adequate over the next year if current operating trends continue," added Ms. Ross. At Feb. 27, 2010, A&P had about $3.5 billion of adjusted debt (including multiemployer withdrawal liability, unfunded pension liability, capitalized lease obligations, real-estate liability, and self-insurance reserves). The ratio of adjusted debt to EBITDA was 12.1x, while EBITDA coverage of interest was about 0.9x at Feb. 27, 2010. GREAT ATLANTIC: German Retailer Discloses 52.7% Stake ----------------------------------------------------- Tengelmann Warenhandelsgesellschaft KG; Tengelmann Verwaltungs-und Beteiligungs GmbH,; Emil Capital Partners, LLC; Christian Wilhelm Erich Haub; Karl-Erivan Warder Haub; and Erivan Karl Haub disclosed that as of June 6, 2010, they may be deemed the beneficial owners -- through Tengelmann and ECP -- of 35,785,764 shares or roughly 52.7% of the common stock of The Great Atlantic & Pacific Tea Company, Inc. The shares of Common Stock include (i) 22,495,371 of the shares of Common Stock held by Tengelmann, (ii) 1,290,393 of the shares of Common Stock held by ECP and (iii) 12,000,000 shares of Common Stock issuable to Tengelmann upon the conversion of 60,000 shares of the Series A-T Preferred Stock, which shares will be convertible into shares of the Common Stock beginning on August 5, 2010, and share the power to vote, or direct the vote of, and the power to dispose and direct the disposition of, such shares of Common Stock. Tengelmann and ECP hold the shares of Common Stock they own as an investment. Germany-based Tengelmann is engaged in general retail marketing. It owns, operates and has investments in, through affiliated companies and subsidiaries, several chains of stores, which principally sell grocery and department store items throughout the Federal Republic of Germany, other European countries and the United States. The general partners of Tengelmann are TVB and two of Erivan Karl Haub's sons, Christian Wilhelm Erich Haub and Karl- Erivan Warder Haub. CH and KEH are co-Chief Executive Officers and Managing Directors of Tengelmann. Tengelmann's limited partners are EKH and Georg Rudolf Otto Haub, EKH's third son. GH is a Managing Director of a company affiliated with Tengelmann. EKH owns 6% of the economic and voting interests of Tengelmann, with the remainder equally divided among CH, KEH and GH. TVB is the sole managing partner of Tengelmann. ECP is engaged primarily as an investment, management and consulting entity of the Tengelmann group, currently focused on business activities in North America. Tengelmann holds 100% of the outstanding membership interests of ECP. CH is and has been a member of the Board of Directors of the Company since December 3, 1991. CH has served as Executive Chairman of the Board and Chair of the Executive Committee of the Company since August 15, 2005. CH also has served as Interim President and CEO of the Company from October 20, 2009 through February 8, 2010, Chairman of the Board from May 1, 2001 through August 15, 2005 and Chief Executive Officer of the Company from May 1, 1998 through August 15, 2005. In addition, CH served as President of the Company from December 7, 1993 through February 24, 2002, and from November 4, 2002 through November 15, 2004. About A&P Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP), founded in 1859, is one of the nation's first supermarket chains. The Company operates 429 stores in 8 states and the District of Columbia under the following trade names: A&P, Waldbaum's, Pathmark, Pathmark Sav-a- Center, Best Cellars, The Food Emporium, Super Foodmart, Super Fresh and Food Basics. At February 27, 2010, the Company had total assets of $2,827,217,000 against total liabilities of $3,223,663,000 and Series A redeemable preferred stock of $132,757,000, resulting in stockholders' deficit of $529,203,000. GREAT ATLANTIC: BofA Holds Less Than 5% of Common Stock ------------------------------------------------------- Bank of America Corporation disclosed that as of May 31, 2010, it has become a less than 5% shareholder of The Great Atlantic & Pacific Tea Company, Inc. About A&P Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP), founded in 1859, is one of the nation's first supermarket chains. The Company operates 429 stores in 8 states and the District of Columbia under the following trade names: A&P, Waldbaum's, Pathmark, Pathmark Sav-a- Center, Best Cellars, The Food Emporium, Super Foodmart, Super Fresh and Food Basics. At February 27, 2010, the Company had total assets of $2,827,217,000 against total liabilities of $3,223,663,000 and Series A redeemable preferred stock of $132,757,000, resulting in stockholders' deficit of $529,203,000. GREAT LAKES: Oil Spill Won't Affect Moody's 'B2' Corp. Rating ------------------------------------------------------------- Moody's Investors Service said Great Lakes Dredge and Dock Corp.'s B2 corporate family rating and stable outlook are unaffected by the company's announcement of increased dredging work arising from the Deepwater Horizon oil spill. The work should benefit 2010 equipment utilization and performance, but Moody's view the impact as not being of a magnitude to affect ratings. Moody's last rating action on GLDD occurred November 13, 2009, when the corporate family rating was upgraded to B2 from B3. Great Lakes Dredge & Dock Corporation founded in 1890 and headquartered in Oak Brook, Illinois is the largest provider of dredging services in the United States. Revenues for the last 12 month revenues ended March 31, 2010, were $604 million. GRAU CONTRACTING: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Grau Contracting, Inc. 3300 Panel Way Saint Charles, MO 63301 Bankruptcy Case No.: 10-46815 Chapter 11 Petition Date: June 17, 2010 Court: U.S. Bankruptcy Court Eastern District of Missouri (St. Louis) Judge: Kathy A. Surratt-States Debtor's Counsel: Daniel D. Doyle, Esq. E-mail: ddoyle@spencerfane.com Nicholas A. Franke, Esq. E-mail: nfranke@spencerfane.com Spencer, Fane et al. 1 North Brentwood Boulevard, #1000 St. Louis, MO 63105-3925 Tel: (314) 863-7733 Fax: (314) 862-4656 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/moeb10-46815.pdf The petition was signed by Gerald Schierding, secretary. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Gateway Panel, Inc. -- -- GUADALUPE ARAMBULO: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Guadalupe Arambulo dba The Gerv Asia Enterprises Living 1993 Trust 11230 Peachgrove Street, #305 North Hollywood, CA 91601 Bankruptcy Case No.: 10-21229 Chapter 11 Petition Date: June 16, 2010 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: Mark C. Hafer, Esq. 6725 Via Austi Parkway, Suite 200 Las Vegas, NV 89119 Tel: (702) 386-8637 Fax: (702) 385-3025 E-mail: mhafer@lawrosen.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtor says that assets total $1,943,080 while debts total $2,680,754. A copy of the Debtor's list of 5 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-21229.pdf The petition was signed by the Debtor. HCA INC: Bank Debt Trades at 5% Off in Secondary Market ------------------------------------------------------- Participations in a syndicated loan under which HCA Inc. is a borrower traded in the secondary market at 94.60 cents-on-the- dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.69 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on Nov. 6, 2013, and carries Moody's Ba3 rating and Standard & Poor's BB rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. According to the Troubled Company Reporter on May 11, 2010, Standard & Poor's placed its 'B+' corporate credit rating on hospital giant HCA Inc. and S&P's ratings on its secured and unsecured debt on CreditWatch with positive implications. "The speculative-grade rating on HCA continues to reflect S&P's view that the largest U.S. owner and operator of acute health care facilities is particularly sensitive to reduced capacity utilization and pricing," said Standard & Poor's credit analyst David Peknay, "by virtue of the significant debt leverage assumed in its November 2006 leveraged buyout." Moody's Investors Service placed the ratings of HCA, Inc., including the B2 Corporate Family and Probability of Default Ratings, under review for possible upgrade. This rating action follows the announcement that the company has filed a Form S-1 in contemplation of an initial public offering. Headquartered in Nashville, Tennessee, HCA is the nation's largest acute care hospital company with 162 hospitals and 106 freestanding surgery centers (including eight hospitals and eight freestanding surgery centers that are accounted for using the equity method) as of March 31, 2010. For the twelve months ended March 31, 2010, the company recognized revenue in excess of $30 billion. HERCULES OFFSHORE: Bank Debt Trades at 14% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Hercules Offshore, Inc., is a borrower traded in the secondary market at 86.40 cents- on-the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 1.05 percentage points from the previous week, The Journal relates. The Company pays 650 basis points above LIBOR to borrow under the facility. The bank loan matures on July 11, 2013, and carries Moody's B2 rating and Standard & Poor's B- rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. As reported by the Troubled Company Reporter on June 10, 2010, Standard & Poor's took several rating actions on eight U.S. oil and gas companies, including Hercules Offshore, Inc., following an industry review. S&P's review of the sector follows its release on June 1, 2010, which indicated S&P would review companies with operating exposure to the Gulf of Mexico following the U.S. Department of the Interior's extension of the moratorium on drilling permits. The six-month moratorium affects permits issued for new drilling operations at water depths greater than 500 feet. S&P believes that when the moratorium is eventually lifted, there could be extensive delays in issuing new permits due to high initial volume and new safety and operating standards imposed. S&P downgraded Hercules Offshore's rating from (B/Negative/--) to (B-/Negative/--). The rating actions also reflect S&P's heightened concerns about the burgeoning scope of the Macondo well disaster. The flow of oil into the Gulf of Mexico is likely to continue until at least August. Uncertainty about the ultimate remediation cost and potential financial liabilities associated with the disaster has already resulted in a rating downgrade of the corporate credit rating of BP PLC (AA-/Watch Neg/A-1+). Hercules Offshore, Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. HIBISCUS SUITES: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Hibiscus Suites, LLC 1735 Stickney Point Rd. Sarasota, FL 34231 Bankruptcy Case No.: 10-14487 Chapter 11 Petition Date: June 17, 2010 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Judge: Catherine Peek McEwen 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 Scheduled Assets: $750,500 Scheduled Debts: $7,064,853 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb10-14487.pdf The petition was signed by Robert M. Brilliant, manager. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Robert M. & Cheryl P. Brilliant 10-14485 06/17/10 HUTTLESTON HOUSE: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Huttleston House, Inc. 111 Huttleston Avenue Fairhaven, MA 02719 Bankruptcy Case No.: 10-16605 Chapter 11 Petition Date: June 17, 2010 Court: United States Bankruptcy Court District of Massachusetts (Boston) Judge: William C. Hillman Debtor's Counsel: Stephen E. Shamban, Esq. Stephen E. Shamban Law Offices, P.C. 222 Forbes Road, Suite 208 P.O. Box 850973 Braintree, MA 02185-0973 Tel: (781) 849-1136 E-mail: sshamban@yahoo.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $100,001 to $500,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mab10-16605.pdf The petition was signed by E. Michael Bobola, company's president. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Edward Michael and Joanne Bobola 09-17134 07/29/09 Mikey B's, Inc. 10-16444 06/14/10 INFOLOGIX INC: McGladrey & Pullen to Resign as Accountant --------------------------------------------------------- InfoLogix Inc. reported that McGladrey & Pullen LLP is resigning as independent registered public accounting firm, effective immediately. The termination of the auditor-client relationship was subsequently confirmed in writing. McGladrey & Pullen's report on the Company's financial statements for the two most recent fiscal years ended December 31, 2009 and 2008, did not contain an adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope, or accounting principles. The report, however, did contain an explanatory paragraph disclosing the uncertainty regarding the ability of the Company to continue as a going concern. During the two most recent fiscal years ended December 31, 2009 and 2008, and through the date of this report, the Company did not have any disagreements with McGladrey & Pullen on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of McGladrey & Pullen, would have caused the Company to make reference to the subject matter of the disagreement in connection with this report. In connection with its audit of the Company's consolidated financial statements for the year ended December 31, 2009, McGladrey & Pullen identified deficiencies in internal control that constitute a material weakness. The material weakness relates to the Company's accounting for a transaction with its senior lender. The Company has taken and continues to take steps to remediate the deficiencies. About InfoLogix Inc. Based in Hatboro, Pennsylvania, InfoLogix, Inc. (NASDAQ: IFLG) -- http://www.infologix.com/-- provides end-to-end solutions for electronic medical record and supply chain implementation and mobilization, with experience in over 2,200 hospitals and businesses nationwide. InfoLogix assists its healthcare and commercial customers by implementing and optimizing EMR and SCM systems, offers mobility to caregivers and workforces by making data accessible directly at the point of care or point of activity, and manages operations with services to improve clinical and financial performance and supply chain with services to drive greater efficiency. The Company's balance sheet at March 31, 2010, showed $34.0 million in total assets and $39.0 million in total liabilities, for a total stockholders' deficit of $4.9 million. McGladrey & Pullen, LLP, in Blue Bell, Pa., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations, has negative working capital and an accumulated deficit as of December 31, 2009. JAMES LAKE, SR: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Joint Debtors: James Garfield Lake, Sr. Patricia A. Lake 4154 Ivy Lane Kitty Hawk, NC 27949 Bankruptcy Case No.: 10-04868 Chapter 11 Petition Date: June 17, 2010 Court: U.S. Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: Michael P. Peavey, Esq. P.O. Box 1115 Wilson, NC 27894-1115 Tel: (252) 291-8020 Fax: (252) 291-8309 E-mail: mpeavey@peaveylaw.com 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/nceb10-04868.pdf The petition was signed by the Joint Debtors. JAYHAWK ENERGY: Posts $2.3 Million Net Loss in Q2 Ended March 31 ---------------------------------------------------------------- JayHawk Energy, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2.3 million on $194,813 of revenue for the three months ended March 31, 2010, compared with a net loss of $498,452 on $90,812 of revenue for the same period a year ago. The Company's balance sheet as of March 31, 2010, showed $10.2 million in assets, $2.3 million of liabilities, and $7.9 million of stockholders' equity. BehlerMick PS, in Spokane, Washington, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended September 30, 2009. The independent auditors noted that of the Company's accumulated deficit and lack of revenues. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?650f Based in Post Falls, Idaho, JayHawk Energy, Inc. (OTC BB: JYHW) -- http://www.jayhawkenergy.com/-- is a managed risk, oil and gas exploration/exploitation, development and production company with activities focused on two major projects in the Cherokee Basin, Kansas and the Williston Basin, North Dakota. Because of limited funding, exploration activities were not conducted during the years ended September 30, 2009, and 2008. JEFF CLINE: Federal Judge Dismisses Chapter 11 Case --------------------------------------------------- Luci Scott at Arizona Business Gazette reports that a federal judge dismissed the Chapter 11 case of Jeff Cline because the U.S. Trustee said there is nothing left to reorganize. Mr. Cline failed to deposit to Point Center Financial, pay required court fees, file periodic financial reports, according to the Gazette. JERRY BOWSER: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Joint Debtors: Jerry Bowser Michelle Bowser 1661 Arabian Drive Henderson, NV 89002 Bankruptcy Case No.: 10-21256 Chapter 11 Petition Date: June 16, 2010 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: Gary S. Fink, Esq. 6600 W. Charleston Boulevard, Suite 134 Las Vegas, NV 89146 Tel: (702) 834-7500 Fax: (702) 834-7505 E-mail: gary@omarlaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtors say that assets total $0 while debts total $3,305,302. 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/nvb10-21256.pdf The petition was signed by the Joint Debtors. JESSE OROZCO, III: Case Summary & 17 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Jesse Antonio Orozco, III 9080 Sheep Ranch Court Las Vegas, NV 89143 Bankruptcy Case No.: 10-21271 Chapter 11 Petition Date: June 17, 2010 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: David A Riggi, Esq. 5550 Painted Mirage Road #120 Las Vegas, NV 89149 Tel: (702) 808-0359 E-mail: darnvbk@gmail.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-21271.pdf The petition was signed by the Debtor. JOHN WITTRIG: Case Summary & 10 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: John Jay Wittrig 17348 Grand Island Walnut Grove, CA 95690 Bankruptcy Case No.: 10-52330 Chapter 11 Petition Date: June 16, 2010 Court: U.S. Bankruptcy Court District of Nevada (Reno) Judge: Gregg W. Zive Debtor's Counsel: Stephen R. Harris, Esq. Belding, Harris & Petroni, Ltd 417 W Plumb Lane Reno, NV 89509 Tel: (775) 786-7600 Fax: (775) 786-7764 E-mail: steve@renolaw.biz Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-52330.pdf The petition was signed by the Debtor. JOSE SANTOS: Voluntary Chapter 11 Case Summary ---------------------------------------------- Joint Debtors: Jose Anibal Montanez Santos aka Jose A. Montanez Santos dba Restaurante Don Jose Josefa Luque Fernandez P.O. Box 1482 Cidra, PR 00739 Bankruptcy Case No.: 10-05319 Chapter 11 Petition Date: June 16, 2010 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Miriam A. Murphy, Esq. Murphy Law Office P.O. Box 372519 Cayey, PR 00737 Tel: (787) 263-2377 Fax: (787) 738-4667 E-mail: mamurphy0@prtc.net Estimated Assets: $1,000,001 to $10,000,000 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. K-V PHARMACEUTICAL: Says 10-K to Contain Going Concern Doubt ------------------------------------------------------------ In a regulatory 8-K filing Tuesday, K-V Pharmaceutical Company said that the filing of its annual report on Form 10-K for the fiscal period ended March 31, 2010, will be delayed. The Company says that it is unable, at this time, to estimate when the Form 10-K will be filed, but expects that the report of its independent registered public accounting firm will include an explanatory paragraph disclosing the existence of substantial doubt regarding the Company's ability to continue as a going concern. As previously disclosed, on March 2, 2009, the Company entered into a consent decree with the FDA regarding the Company's drug manufacturing and distribution, which was entered by the U.S. District Court, Eastern District of Missouri, Eastern Division on March 6, 2009. The consent decree requires, among other things, that, before resuming manufacturing, the Company retain and have an independent expert undertake a review of the Company's facilities and certify compliance with the FDA's current good manufacturing practice regulations. The Company's actions and the requirements under the consent decree have had a material adverse effect on the Company's results of operations and liquidity position. Also, on December 23, 2008, the Company announced it had voluntarily suspended all shipments of its FDA approved drug products in tablet form and, effective January 22, 2009, the Company voluntarily suspended the manufacturing and shipment of the remainder of its products, other than three products it distributes but does not manufacture and which do not generate a material amount of revenue for the Company. During the fiscal year ended March 31, 2010, while not generating any material revenues as a result of the suspension of shipments, the Company had to meet ongoing operating costs related to its employees, facilities and FDA compliance, as well as costs related to the steps the Company currently is taking to prepare for reintroducing the Company's approved products to the market. As a result, the Company anticipates that it likely will post a net loss for the fiscal year ended March 31, 2010. At present, the Company is unable to provide a reasonable estimate of the results of operations for the fiscal year ended March 31, 2010, due to the ongoing nature of the various matters described above. About K-V Pharmaceutical Bridgeton, Missouri-based K-V Pharmaceutical Company (NYSE: Kva/KVb) -- http://www.kvpharmaceutical.com/-- is a fully integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded prescription pharmaceutical products. The Company markets its technology-distinguished products through Ther-Rx Corporation, its branded drug subsidiary. * * * As reported in the Troubled Company Reporter on March 29, 2010, KPMG LLP, in St. Louis, Missouri, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the fiscal year ended March 31, 2009. The independent auditors noted that the Company suspended the shipment of all products manufactured by the Company and must comply with a consent decree with the FDA before approved products can be reintroduced to the market. "Significant negative impacts on operating results and cash flows from these actions including the potential inability of the Company to raise capital; suspension of manufacturing; significant uncertainties related to litigation and governmental inquiries; and debt covenant violations raise substantial doubt about the Company's ability to continue as a going concern." K-V PHARMACEUTICAL: Appoints New Independent Member to Board ------------------------------------------------------------ K-V Pharmaceutical Company disclosed that a meeting of the Board of Directors was held yesterday to nominate and appoint Ms. Ana Stancic, a new independent member, to the Company's Board of Directors. At the meeting, Ms. Ana Stancic was nominated and unanimously appointed to serve on the K-V Pharmaceutical Company Board of Directors. Ms. Stancic replaces Mr. Terry Hatfield, whose resignation from the Board was effective upon Ms. Stancic's appointment. Ana I. Stancic, CPA, MBA Ms. Stancic is a CPA and is also a member of the Board of Directors of Champions Biotechnology Inc. Ms. Stancic serves on its Executive Committee and acts as Chair of its Audit Committee. She has over 20 years of diversified pharmaceutical business experience serving as a senior finance and operations executive in the life science industry, including specializing in the areas of corporate governance, SEC financial reporting, mergers and acquisitions, and cash management. She brings to the Board of Directors extensive knowledge and experience in long and short term strategic planning and the development and execution of goals and objectives to maximize shareholder value. In her role as a member of the Board of Champions Biotechnology, Inc., she created a five-year strategic plan after conducting an in-depth analysis of the Company's operations. Prior to joining the Board of Champions Biotechnology, Ms. Stancic served as the Chief Financial Officer of Aureon Laboratories, a privately held life science company dedicated to enabling the advancement of predictive cancer treatment where her responsibilities included finance, treasury and tax compliance. During her 20 year business career, she has also served as the Executive Vice President and Chief Financial Officer of Omrix Biopharmaceuticals, Inc., prior to its acquisition by Johnson & Johnson; Senior Vice President and Principal Financial Officer of ImClone Systems prior to its acquisition by Eli Lilly & Company; Vice President and Corporate Controller of Savient Pharmaceuticals, Inc.; Vice President and Chief Accounting Officer of Ogden Corporation; Chief Financial Officer, Northeast Region of Omnicare, Inc.; and Senior Manager- Business Assurance with Pricewaterhouse Coopers. Ms. Stancic received a Masters of Business Administration, Finance from Columbia University, a Masters of Business Administration, Management from Pace University, and a Bachelor of Science in Accounting, Cum Laude from Montclair State University. She is a Certified Public Accountant in the State of New Jersey and a Member of the American Institute of Certified Public Accountants. Mr. Mark A. Dow, Chairman of the Audit Committee, stated, "The Board is pleased to announce the appointment of Ms. Stancic to the K-V Pharmaceutical Board of Directors. We believe that her financial and business background will be an asset to the organization during this time when the Board's primary focus is on compliance, quality and working diligently with management to gain FDA approval to return its products back to the market and to create shareholder value." Ms. Stancic stated, "I look forward to joining my colleagues on the Board to work closely with management to continue the forward progress that they and the entire team at K-V have worked to achieve in recent months." About K-V Pharmaceutical Company K-V Pharmaceutical Company is a fully-integrated specialty pharmaceutical company that develops, manufactures, markets and acquires technology-distinguished branded prescription products. The Company markets its technology-distinguished products through Ther-Rx Corporation, its branded drug subsidiary. LARRY HARTSFIELD: No Discharge for Improper Probate Payment ----------------------------------------------------------- WestLaw reports that an Arkansas state court judgment previously entered against an individual Chapter 11 debtor in his capacity as the trustee of a testamentary trust, for paying $251,000 to an individual in direct contravention of the testator's will, and for failing to account for the disposition of assets and keep records of his activities during his service as trustee, was entitled to collateral estoppel effect in a subsequent proceeding to except the judgment debt from discharge as one for debtor's defalcation while acting in a fiduciary capacity. The issues presented in the earlier accounting action possessed the requisite identity with those in nondischargeability proceeding, and the issues were actually litigated in the prior accounting action and necessarily decided by a valid and final judgment. In re Hartsfield, --- B.R. ----, 2010 WL 2222267. slip op. http://is.gd/cVbMM(Bankr. E.D. Ark.) (Taylor, J.). Larry James Hartsfield filed a voluntary bankruptcy petition (Bankr. E.D. Ark. Case No. 09-13594) on May 20, 2009. Mr. Hartsfield, an attorney practicing in Little Rock, Ark., represents himself and is also represented by O.C. Rusty Sparks, Esq., at Clark, Byarlay & Sparks in Little Rock. LAS VEGAS SANDS: Bank Debt Trades at 11% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which Las Vegas Sands Corp. is a borrower traded in the secondary market at 88.86 cents- on-the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.86 percentage points from the previous week, The Journal relates. The Company pays 175 basis points above LIBOR to borrow under the facility. The bank loan matures on May 1, 2014, and carries Moody's B3 rating and Standard & Poor's B- rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS) -- http://www.lasvegassands.com/-- owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo and convention center. The company also owns and operates the Sands Macao, the first Las Vegas-style casino in Macao, China. LATSHAW DRILLING: Can Access $7.7MM Cash Collateral Until July 30 ----------------------------------------------------------------- The Hon. Dana Rasure of the U.S. Bankruptcy Court for the Northern District of Oklahoma authorized Latshaw Drilling Company, LLC, and Latshaw Drilling & Exploration Company, Inc., to use the cash collateral up to $7,785,844. The Court is yet to set a date for the Review Hearing for the Debtors' access to the cash collateral beyond July 30, 2010. As reported in the Troubled Company Reporter on February 2, 2010,the Debtors' prepetition lenders consist of Lehman Commercial Paper Inc., Ableco Finance LLC and A3 Funding L.P. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the prepetition lenders: -- replacement liens, subject to the payment of the U.S. Trustee fees and a carve-out; -- superpriority administrative claims; and -- monthly payments to LCPI and to Ableco of an amount equal to interest at the non-default contract rate of interest provided under the credit agreement. As additional adequate protection to the lenders, the Debtors will continue to maintain insurance coverage with insurance policies reflecting the lenders as loss payees. The Debtors' access to the cash collateral will expire on July 30, or on the occurrence of a termination event. About Latshaw Drilling Company Tulsa, Oklahoma-based Latshaw Drilling Company LLC filed for Chapter 11 bankruptcy protection on November 11, 2009 (Bankr. N.D. Okla. Case No. 09-13572). Mark A. Craige, Esq., at MorrelSaffaCraige, PC, assists the Company in its restructuring effort. The Company listed $193,549,066 in assets and $77,940,788 in liabilities in its petition. LATSHAW DRILLING: Plan Confirmation Hearing Set for July 22 ----------------------------------------------------------- The Hon. Dana Rasure of the U.S. Bankruptcy Court for the Northern District of Oklahoma will consider the confirmation of Latshaw Drilling Company, LLC, and Latshaw Drilling & Exploration Company, Inc.'s proposed Plan of Reorganization on July 22, 2010, at 9:30 a.m., Central Time. The hearing will be held at Courtroom 1, First Floor, 224 South Boulder Avenue, Tulsa, Oklahoma. Objections, if any, are due on July 9, at 5:00 p.m. CT. Any party-in-interest may file a written response to any objection to confirmation of the Plan no later than July 16. A pre-confirmation-hearing conference will be held on July 15 at 9:30 a.m. CT, for narrowing the issues in dispute, obtaining stipulations of fact, identifying witnesses and exhibits, facilitating the admission of evidence, and other pre-hearing matters. The last day for the submission of ballots is July 9, at 5:00 p.m. CT. The Debtors must file by July 14, a report summarizing the results of the balloting. As reported in the Troubled Company Reporter on April 24, 2010, according to the Disclosure Statement, the Plan proposes that the Debtors will continue to operate their businesses in a manner similar to their prepetition operations, and that they will repay all of the creditors of the Debtors in full, in cash either by a one-time cash payment or in deferred cash payments over time, with interest. Under the Plan, all allowed secured claims will be paid in full with interest over a commercially reasonable repayment term and will retain all liens securing their claims. The Debtors have negotiated treatment for the claims of Abelco and PeoplesBank, but not for the Lehman Lender, who has a disputed claim. The Debtors do not believe there are any unpaid priority claims owed to taxing authorities, however, to the extent any claims are allowed, then the claims will be paid in deferred cash payments or in cash. Unsecured claims greater than $35,000 will be paid in full in deferred cash payments with interest over a term of 4 months; while unsecured creditors of less than $35,000 will be paid in full in cash with 30 days after the effective date. Interest holders claimants will retain their interests. A full-text copy of the amended Disclosure Statement is available for free at http://bankrupt.com/misc/LatshawDrilling_AmendedDS.pdf About Latshaw Drilling Company Tulsa, Oklahoma-based Latshaw Drilling Company LLC filed for Chapter 11 bankruptcy protection on November 11, 2009 (Bankr. N.D. Okla. Case No. 09-13572). Mark A. Craige, Esq., at MorrelSaffaCraige, PC, assists the Company in its restructuring effort. The Company listed $193,549,066 in assets and $77,940,788 in liabilities in its petition. LATSHAW DRILLING: Asks for Aug. 31 Extension of Exclusive Period ---------------------------------------------------------------- Latshaw Drilling Company, LLC, and Latshaw Drilling & Exploration Company, Inc., ask the U.S. Bankruptcy Court for the Northern District of Oklahoma to extend their exclusive period to solicit acceptances for their proposed plan of reorganization until the end of August 2010. As reported in the Troubled Company Reporter on April 24, 2010, Latshaw has filed a plan that contemplates the Debtors continuing to operate their businesses in a manner similar to their prepetition operations, and that they will repay all of the creditors of the Debtors in full, in cash either by a one-time cash payment or in deferred cash payments over time, with interest. The Debtors, however, need an extension of the exclusive period to have additional time to negotiate plan treatment for the secured claims of Lehman Commercial Paper, Inc., the largest secured creditor. About Latshaw Drilling Company Tulsa, Oklahoma-based Latshaw Drilling Company LLC filed for Chapter 11 bankruptcy protection on November 11, 2009 (Bankr. N.D. Okla. Case No. 09-13572). Mark A. Craige, Esq., at MorrelSaffaCraige, PC, assists the Company in its restructuring effort. The Company listed $193,549,066 in assets and $77,940,788 in liabilities in its petition. LEAP WIRELESS: Grants Equity Awards to New Cricket Employees ------------------------------------------------------------ Leap Wireless International, Inc., issued inducement awards to new non-executive employees. The awards were made on June 14, 2010, under Leap's 2009 Employment Inducement Equity Incentive Plan, which provides for the granting of equity awards to new employees of Cricket Communications, Inc. as an inducement to join the company. The inducement awards consist of 10,550 shares of restricted stock and options to purchase up to 20,750 shares of Leap common stock. The options have a ten year term and an exercise price equal to the fair market value of Leap common stock on the date of grant. The awards vest in four years, with the shares of restricted stock vesting in 25% equal increments on the second and third anniversaries of the date of grant and 50% on the fourth anniversary of the date of grant, and the options vesting in equal 25% annual increments. About Leap Wireless Headquartered in San Diego, California, Leap Wireless International, Inc. (NASDAQ: LEAP) -- http://www.leapwireless.com/ -- and its joint ventures provide wireless services in 34 states and the District of Columbia and hold licenses in 35 of the top 50 U.S. markets. Through its affordable, flat-rate service plans, Cricket offers customers a choice of unlimited voice, text, high- speed data and mobile Web services. Leap spun out from Qualcomm Inc. in 1998 and expanded primarily into rural markets. It has customers in 34 states and annual sales around $2.3 billion, making it the seventh-largest wireless carrier in the U.S., according to The Wall Street Journal. At March 31, 2010, the Company had total assets of $5,259,706,000 from total liabilities of $3,578,532,000 and redeemable non- controlling interests of $51,768,000, resulting in stockholders' equity of $1,629,406,000. The Troubled Company Reporter on February 2, 2010, citing The Wall Street Journal's Jeffrey McCracken and Niraj Sheth, said Leap Wireless has hired Goldman Sachs Group and formed a special board committee to look into selling the company or merging with rivals. * * * According to the Troubled Company Reporter on April 29, 2009, Standard & Poor's Ratings Services revised its outlook on Leap Wireless International Inc. to positive from stable. At the same time, S&P affirmed its ratings on the San Diego-based wireless carrier, including the "B-" long-term corporate credit rating and "B+" secured bank loan rating on subsidiary Cricket Communications Inc. LEVEL 3 COMMS: Bank Debt Trades at 11% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Level 3 Communications, Inc., is a borrower traded in the secondary market at 89.29 cents-on-the-dollar during the week ended June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.65 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on March 1, 2014, and carries Moody's B1 rating and Standard & Poor's B+ rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Broomfield, Colorado, Level 3 Communications, Inc., is a publicly traded international communications company with one of the world's largest communications and Internet backbones. Level 3 Communications carries a 'Caa1' corporate family rating, and 'Caa2' probability of default rating, with negative outlook from Moody's, a 'B-' issuer default rating from Fitch, and 'B-' long term issuer credit ratings from Standard & Poor's. LG GUIJARRO: Case Summary & 2 Largest Unsecured Creditors --------------------------------------------------------- Debtor: LG Guijarro Trust aka Fideicomiso LG Guijarro Trust P.O. Box 13966 San Juan, PR 00908 Bankruptcy Case No.: 10-05303 Chapter 11 Petition Date: June 16, 2010 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Luis D. Flores Gonzalez, Esq. Luis D Flores Gonzalez Law Office 80 Calle Georgetti, Suite 202 San Juan, PR 00925-3624 Tel: (787) 758-3606 Fax: (787)753-5317 E-mail: ldfglaw@coqui.net 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 $1,300,000 while debts total $1,065,857. A copy of the Company's list of 2 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb10-05303.pdf The petition was signed by Gabriel Guijarro Brunet. LODGENET INTERACTIVE: S&P Affirms 'B-' Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on Sioux Falls, S.D.-based LodgeNet Interactive Corp., including the 'B-' corporate credit rating. At the same time, S&P revised the rating outlook to positive from stable. "S&P's rating outlook revision to positive reflects S&P's expectation that despite softness at LodgeNet's guest entertainment business, S&P believes that the company will be able to maintain compliance with covenants by continuing to direct cash flow to debt repayment as needed," said Standard & Poor's credit analyst Jeanne Shoesmith. The company has a narrow cushion of compliance against its leverage covenant, which steps down one-quarter turn in September 2010, its final step-down. S&P expects that LodgeNet could absorb the added interest burden of a potential amendment if a covenant breach becomes unavoidable. The 'B-' rating reflects LodgeNet's still-slim cushion of compliance with its bank covenants, declining revenue trends, exposure to the cyclical and seasonal lodging industry (which is facing challenges because of the weak economy), and the limited size and mature long-term growth potential of this market niche. LodgeNet's operating results are subject to trends in consumer and corporate travel, the discretionary nature of traveler purchases, and the unpredictable quality of movies (which generate the majority of room revenue). S&P see a risk that longer-term increases in broadband access in hotel rooms, along with growing usage of portable devices, could reduce demand for LodgeNet's core on-demand movie services. The company's participation in high-speed Internet access services, aided by its February 2007 acquisition of assets of StayOnline Inc., may somewhat mitigate this risk. LodgeNet is a provider of in-room electronic entertainment and data services to hotels and, to a lesser extent, hospitals and other guest-based businesses. The company has a good EBITDA margin in the mid-20% area and relatively stable long-term noncancellable hotel property contracts. During the first quarter of 2010, revenue decreased by 8% from the prior-year period, while EBITDA declined 16%, mainly because of a 10% decline in guest entertainment revenue, system sales, and related services. This was partially offset by increases in the lower-margin hotel services revenues and an 8% reduction in total direct costs. The EBITDA margin declined only slightly, to 24.7% for the 12 months ended March 31, 2010 from 25.9% the year before, because growth at lower-margin businesses partially offset declines in guest entertainment revenue. S&P expects declines in guest entertainment revenue to moderate through 2010, despite ongoing caution by consumers and business guests. Further cost reductions may be more difficult after cuts already implemented. S&P does not expect a recovery in guest entertainment revenue to begin until 2011. LUCKIE DUTCHMAN: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: The Luckie Dutchman, LLC dba Wilhelmus Dairy 4611 South FM 219 Dublin, TX 76446 Bankruptcy Case No.: 10-43980 Chapter 11 Petition Date: June 15, 2010 Court: U.S. Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Russell F. Nelms Debtor's Counsel: St. Clair Newbern, III, Esq. Law Offices of St.Clair Newbern III, P.C 1701 River Run, Suite 1000 Fort Worth, TX 76107 Tel: (817) 870-2647 E-mail: filing@newbernlawoffice.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 the Arjen Geijsel, president. MAGIC BRANDS: Luby Inc. Wins Auction with $63MM Cash Offer ---------------------------------------------------------- Magic Brands, LLC, and Fuddruckers, Inc., disclosed that Luby's, Inc. has been selected as the highest and best bidder in a competitive auction held Thursday for substantially all of its assets. The bid remains subject to bankruptcy court approval. Luby's bid has been valued by the Company and the Official Committee of Unsecured Creditors at $63.45 million. In an earlier press release, Luby's said it would purchase Fuddruckers for $61 million of cash, and assume certain of Fuddruckers' obligations, real estate leases and contracts. Luby's said it would pay an additional $2.45 million of cash if it does not assume certain specified contracts. Luby's said it will fund the purchase from cash and an expansion of its credit facility. Three hours later, the $63.45 million deal was announced. "On behalf of our entire management team, I would like to express how pleased we are with the success of the competitive auction process. After Thursday's 11-hour auction process, Luby's proved to be the highest and best bidder with a final bid valued at $63.45 million," stated Magic Brands CEO Peter Large. "Based on current estimates and assumptions, creditor recoveries are anticipated to be substantial and could reach as high as 100 percent. This is an outstanding result for our creditors." The results of the auction will be presented for approval by the United States Bankruptcy Court in the District of Delaware in Wilmington on June 22, 2010. The transaction is expected to close on or before July 9, 2010, subject to satisfaction or waiver of other customary closing conditions. "Luby's has the capacity to support and grow the Fuddruckers brand which we believe will be to the benefit of both our corporate restaurants and franchisees," concluded Mr. Large. FocalPoint Securities, LLC serves as investment banker to Magic Brands and Goulston & Storrs serves as lead bankruptcy counsel. About Fuddruckers Based in Austin, Texas, Magic Brands, LLC currently operates 62 Fuddruckers locations in 11 states and 3 Koo Koo Roo restaurants in California. An additional 135 Fuddruckers restaurants are operated by franchisees who are small business owners and multi- unit operators. Since its founding in 1980, Fuddruckers has delivered uncompromised quality and freshness with its own brand of always fresh, never frozen, 100% All-American, premium-cut, vegetarian-fed beef. Fuddruckers 1/3, 1/2, 2/3 and one-pound Fudds Prime(TM) burgers are grilled to order and placed on a Fuddruckers scratch-baked bun made fresh daily in Fuddruckers restaurant bakeries -- ready for guests to pile it high at Fuddruckers Market Fresh Produce bar for a Build Your Own Burger experience like none other. About Luby's Luby's operates 96 restaurants in Austin, Dallas, Houston, San Antonio, the Rio Grande Valley and other locations throughout Texas and other states. Luby's provides its customers with quality home-style food, value pricing, and outstanding customer service. Luby's Culinary Services provides food service management to 17 sites consisting of healthcare, higher education and corporate dining locations. MAJESTIC LIQUOR: Hearing on Further Cash Access on June 28 ---------------------------------------------------------- Majestic Liquor Stores, Inc., et al., previously sought and obtained interim authorization from the U.S. Bankruptcy Court for the Northern District of Texas to use cash collateral until June 20, 2010, at 12:00 a.m. As of the Petition Date, Majestic was a borrower under a certain loan and security agreement dated April 27, 2009 (as amended and in effect, and together with all related documents and agreements by and between Majestic and The F&M Bank & Trust Company, or F&M, as lender, the Secured Loan Documents). In conjunction with the Secured Loan Documents, Majestic, Majestic Properties and F&M entered into a subordination agreement whereby Majestic Properties agreed to the subordination of its debt and its liens to the debt and liens of F&M. On April 12, 2010, F&M entered into a temporary forbearance agreement with Majestic. On April 21, 2010, F&M and Majestic entered into the First Amendment to the Secured Loan Documents whereby F&M agreed to temporarily increase the revolving loan limit under the Secured Loan Documents and Majestic executed a Temporary Increase Note in the amount of $1,000,000 to be repaid on May 14, 2010. Pursuant to the Secured Loan Documents, F&M provided revolving credit and other financial accommodations to or for the benefit of Majestic, including, among other things, $16,000,000 in aggregate principal amount of revolving commitments, plus the additional $1,000,000 under the Temporary Note, including a letter of credit limit of $1,000,000. As of the Petition Date, the outstanding principal amount owed under the Secured Loan Documents was at least $13.4 million in revolving loans, advances and/or other financial accommodations or services. As of the Petition Date, F&M asserts that the F&M Collateral was perfected and senior in priority to all other liens or encumbrances of Majestic in the F&M Collateral. F&M asserts that all cash and cash equivalents, negotiable instruments, documents of title, securities, deposit accounts or any other cash equivalents in any form that are now or hereinafter in the Debtors' possession, custody or control including without limitation, the proceeds, products, offspring, rents or profits of the F&M Collateral constitute cash collateral of F&M. Jeff P. Prostok, Esq., at Forshey & Prostok LLP, the attorney for the Debtors, explained that the Debtors need the money to fund their Chapter 11 case, pay suppliers and other parties. The Debtors will use the collateral pursuant to a budget, a copy of which is available for free at: http://bankrupt.com/misc/MAJESTIC_LIQUOR_budget.pdf In exchange for using the cash collateral, the Debtors will grant F&M a replacement security interest in, and lien, effective as of the Petition Date. As additional adequate protection, Debtors will pay all unpaid interest and fees as set out in the Secured Loan Documents to F&M via wire transfer by the fifth day of each immediately following calendar month during the term of this Order. By June 28, 2010, Majestic will deliver to F&M a term sheet containing the proposed treatment of F&M under a plan of reorganization proposed by the Debtors. The term sheet will be proposed pursuant to negotiations. By August 6, 2010, Majestic will pay to F&M $1 million to be applied to permanently reduce the principal indebtedness owed F&M. The Court has set a final hearing for June 28, 2010, at 1:30 p.m., on the Debtor's request to use cash collateral. About Majestic Liquor Fort Worth, Texas-based Majestic Liquor Stores, Inc. -- dba Double T Discount Beer & Wine No. 2, et al. -- was incorporated in 1955. It operates Texas retail stores for the sale of liquor, beer, wine and bar supplies. The Company operates 46 retail stores and three wholesale locations. Majestic Liquor together with its affiliates filed for Chapter 11 bankruptcy protection on June 6, 2010 (Bankr. N.D. Tex. Case No. 10-43849). J. Robert Forshey, Esq., and Jeff P. Prostok, Esq., at Forshey & Prostok, LLP, assists the Company in its restructuring effort. Focus Management Group USA Inc. is the Company's financial advisor. The Company estimated its assets and debts at $10,000,001 to $50,000,000. ME - BUFFALO, LLC: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: ME - BUFFALO, LLC 2320 Paseo Del Prado, Suite B-305 Las Vegas, NV 89102 Bankruptcy Case No.: 10-21278 Chapter 11 Petition Date: June 17, 2010 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: James D. Greene, Esq. Greene Infuso, LLP 3960 Howard Hughes Parkway, Suite 700 Las Vegas, NV 89169 Tel: (702) 697-6102 Fax: (702) 732-7110 E-mail: jgreene@greeneinfusolaw.com 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/nvb10-21278.pdf The petition was signed by Stanley Wasserkrug, Greenstreet Properties, LLC, manager of debtor. MGM MIRAGE: Changes Name to MGM Resorts; Amends Bylaws ------------------------------------------------------ The Board of Directors of MGM Resorts International approved an amendment to the Company's Amended and Restated Bylaws with an effective date of June 15, 2010, which (i) reflected the Company's name change from "MGM MIRAGE" to "MGM Resorts International"; (ii) removed the authorization for the Board to elect, at its discretion, additional Presidents with specified scopes of authority that will report to the Chief Executive Officer of the Company; and (iii) added the authorization for the Board to elect, at its discretion, additional Chief Operating Officers with specified scopes of authority and a Chief Marketing Officer. The Company held its Annual Meeting of Stockholders on June 15, 2010. Stockholders elected these members to the Board: * Robert H. Baldwin; * William A. Bible; * Burton M. Cohen; * Willie D. Davis; * Kenny C. Guinn; * Alexis Herman; * Roland Hernandez; * Kirk Kerkorian; * Anthony Mandekic; * Rose McKinney-James; * James J. Murren; * Daniel J. Taylor; and * Melvin B. Wolzinger The shareholders ratified the selection of the independent registered public accounting firm for the year ending December 31, 2010; and approved the amendment and restatement of the Company's Certificate of Incorporation to change the Company's name. The shareholders shot down a proposal submitted and presented by The Office of the Comptroller of New York City, which requested that the Board prepare a sustainability report including strategies to reduce greenhouse gas emissions and addressing other environmental and social impacts, which report should be published by June 2010. About MGM MIRAGE Headquartered in Las Vegas, Nevada, MGM MIRAGE (NYSE: MGM) -- http://www.mgmmirage.com/-- owns and operates 16 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau. CityCenter, an urban metropolis on the Las Vegas Strip scheduled to open in late 2009, is a joint venture between MGM MIRAGE and Infinity World Development Corp, a subsidiary of Dubai World. MGM MIRAGE Hospitality has entered into management agreements for future casino and non-casino resorts throughout the world. The Company reported $22.51 billion in total assets, $2.38 billion in total current liabilities, $3.03 billion in deferred income taxes, $12.97 billion in long term debt, and $256.83 million other long term obligation, resulting to a $3.87 billion stockholders' equity as of Dec. 31, 2009. At September 30, 2009, MGM MIRAGE had stockholders' equity of $4.29 billion. * * * As reported by the Troubled Company Reporter on March 22, 2010, Moody's Investors Service affirmed MGM MIRAGE's ratings, including its Caa1 Corporate Family Rating and raised the company's Speculative Grade Liquidity rating to SGL-3 from SGL-4. The rating outlook remains stable. As reported by the TCR on March 11, 2010, Standard & Poor's Ratings Services affirmed all of its existing ratings on MGM MIRAGE, including the 'CCC+' corporate credit rating. The rating outlook is developing. "The 'CCC+ corporate credit rating reflects MGM MIRAGE's significant debt burden, S&P's expectation for continued declines in cash flow generation in 2010, and the company's tight liquidity position," said Standard & Poor's credit analyst Ben Bubeck. MONEY TREE: Posts $1.2 Million Net Loss in Q2 Ended March 25 ------------------------------------------------------------ The Money Tree, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.2 million on $3.1 million of revenue for the three months ended March 251, 2010, compared with a net loss of $3.4 million on $3.7 million for the same period a year ago. The Company's balance sheet as of March 25, 2010, showed $51.0 million in assets and $89.7 million of liabilities, for a stockholders' deficit of $38.7 million. As reported in the Troubled Company Reporter on January 8, 2010, Tallahassee, Fla.-based Carr, Riggs & Ingram, LLC expressed substantial doubt about the Company ability to continue as a going concern after auditing the Company's financial statements for the year ended September 25, 2009. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency. A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6507 Based in Bainbridge, Ga., The Money Tree, Inc. - http://themoneytreeinc.com/- makes consumer finance loans and provides other financial products and services through its branch offices in Georgia, Alabama, Louisiana and Florida. The Company sells retail merchandise, principally furniture, appliances and electronics, at certain of its branch office locations and operates three used automobile dealerships in the State of Georgia. The Company also offers insurance products, prepaid phone services and automobile club memberships to its loan customers. NEIMAN MARCUS: Bank Debt Trades at 7% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which Neiman Marcus Group, Inc., is a borrower traded in the secondary market at 93.33 cents-on-the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.89 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on April 6, 2013, and carries Moody's B2 rating and Standard & Poor's BB rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Neiman Marcus Group, Inc., headquartered in Dallas, Texas, operates 40 Neiman Marcus stores, 2 Bergdorf Goodman stores, 27 clearance centers, and a direct business. Total revenues are about $3.9 billion. The Company carries a 'Caa1' Corporate Family Rating and 'Caa1' Probability of Default Rating from Moody's Investors Service. NEW CUSTOMER SERVICE: Bank Debt Trades at 2% Off ------------------------------------------------ Participations in a syndicated loan under which N.E.W. Customer Service Companies, Inc., is a borrower traded in the secondary market at 97.75 cents-on-the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.91 percentage points from the previous week, The Journal relates. The Company pays 425 basis points above LIBOR to borrow under the facility, which matures on March 31, 2016. The bank note is not rated by Moody's and Standard & Poor's. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. N.E.W. Customer Service Companies, Inc. -- https://www.newcorp.com/ -- with its member companies, is the leading provider of extended service contracts and product protection programs worldwide. NEW offers customizable, end-to- end customer service solutions for partners in industries such as retail, manufacturing, and satellite TVs. NEVADA SECURITY BANK: Closed; Umpqua Bank Assumes All Deposits -------------------------------------------------------------- Nevada Security Bank of Reno, Nev., was closed on Friday, June 18, 2010, by the Nevada Financial Institutions Division, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Umpqua Bank of Roseburg, Ore., to assume all of the deposits of Nevada Security Bank. The five branches of Nevada Security Bank will reopen during normal business hours as branches of Umpqua Bank. Depositors of Nevada Security Bank will automatically become depositors of Umpqua Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of Nevada Security Bank should continue to use their existing branch until they receive notice from Umpqua Bank that it has completed systems changes to allow other Umpqua Bank branches to process their accounts as well. As of March 31, 2010, Nevada Security Bank had around $480.3 million in total assets and $479.8 million in total deposits. Umpqua Bank did not pay the FDIC a premium for the deposits of Nevada Security Bank. In addition to assuming all of the deposits of the failed bank, Umpqua Bank agreed to purchase essentially all of the assets. The FDIC and Umpqua Bank entered into a loss-share transaction on $368.2 million of Nevada Security Bank's assets. Umpqua Bank will share in the losses on the asset pools covered under the loss- share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers who have questions about the transaction can call the FDIC toll-free at 1-800-356-1848. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/nevsecbank.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $80.9 million. Compared to other alternatives, Umpqua Bank's acquisition was the "least costly" resolution for the FDIC's DIF. Nevada Security Bank is the 83rd FDIC-insured institution to fail in the nation this year, and the third in Nevada. The last FDIC-insured institution closed in the state was Sun West Bank, Las Vegas, on May 28, 2010. NEWARK GROUP: Gets Court's Interim Okay to Obtain DIP Financing --------------------------------------------------------------- The Newark Group, Inc., et al., sought and obtained interim authorization from the Hon. Novalyn L. Winfield of the U.S. Bankruptcy Court for the District of New Jersey to obtain postpetition secured financing from a syndicate of lenders led by Wells Fargo Bank, National Association as administrative agent. The DIP lenders have committed to provide up to $50 million, consisting of a revolving loan subject to a borrowing base and other terms, including up to $15 million for letters of credit and a swingline subfacility of up to $7.5 million. Kenneth A. Rosen, Esq., at Lowenstein Sandler PC, the attorney for the Debtors, explained that the Debtors need the money to fund their chapter 11 case, pay suppliers and other parties. The DIP facility will terminate 180 days after the commencement of the Chapter 11 cases. The DIP facility will incur interest. For Prime Rate Loans: 4% per annum in excess of the greatest of (a) the prime rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus � of 1%, and (c) 2%. For Eurodollar Rate Loans: 5% in excess of the greatest of (a) the rate per annum determined by dividing (i) LIBOR by (ii) a percentage equal to (A) 1 minus (B) the percentage that is in effect for that day under regulation D of the Board of Governors of the Federal Reserve System or (b) 2%. In the event of default, the Debtors will pay an additional 2% default interest per annum. The Debtors' obligations under the DIP facility are secured by (i) first priority liens on the Company's and Cogen's accounts, inventory and certain other personal property and (ii) second priority liens on substantially all of the Company's and Cogen's other assets, except for real property. The DIP lien is subject to up to $2,000,000 carve-out for U.S. Trustee and Clerk of Court fees, fees payable to professional employed in the Debtors' case, and fees of the committee in pursuing actions challenging the DIP Lenders' lien. The Debtors are required to pay these fees to Wells Fargo: a. Unused Line Fee: 1% per annum calculated on the average daily unused portion of the maximum credit available during the immediately preceding month; b. Letter of Credit Fee: 5% per annum on the average daily maximum amount available to be drawn under all Letters of Credit for the immediately preceding month; c. Additional Letter of Credit Fee: 0.5% per annum shall be paid to the issuing bank on the average daily maximum amount available to be drawn under each letter of credit issued; and d. At the DIP ABL Agent's option, The Newark Group shall pay an additional 2% for (i) the period from the termination of the DIP ABL Facility until full payment of all obligations due thereunder have been received and (ii) the period from the occurrence of an Event of Default for as long as the Event of Default is continuing. A copy of the DIP agreement is available for free at: http://bankrupt.com/misc/NEWARK_dipfinancingpact.pdf The Court has set a final hearing for June 30, 2010, at 10:00 a.m. on the Debtors' request to obtain DIP financing. About Newark Group Cranford, New Jersey-based The Newark Group, Inc., manufactures and sells recycled paperboard and paperboard products. The company operates in three segments: Paperboard, Converted Products and International. The Company, along with affiliates, filed for Chapter 11 bankruptcy protection on June 9, 2010 (Bankr. D.N.J. Case No. 10- 27694). Kenneth Rosen, Esq., at Lowenstein Sandler, assists the Company in its restructuring effort. Jefferies & Company is the Company's investment banker. AlixPartners LLP is the Company's restructuring financial advisors. Deloitte & Touche LLP is the Company's accounting Advisors. Kurtzman Carson & Consultants LLC is the Company's claims, balloting & noticing agent. The Company estimated its assets and debts at $100,000,001 to $500,000,000. NEWARK GROUP: Taps AlixPartners as Restructuring Advisor -------------------------------------------------------- The Newark Group, et al., have sought authorization from the U.S. Bankruptcy Court for the District of New Jersey to employ AlixPartners, LLP, as restructuring advisor. AlixPartners will: a. assist the Debtors with their 13-week cash receipts and disbursements and availability forecasting process and identification of working capital and other liquidity improvement opportunities and vendor management; b. work with the Debtors' investment banker to update the Company's EBITDA forecast model, as required; c. assist the Debtors with periodic reporting to creditors, including weekly A/R and A/P detail reports, weekly headcount report and monthly financial statements and divisional operating reports; and d. assist with other matters as may be requested that fall within AlixPartners' expertise and that are mutually agreeable. AlixPartners will be paid based on the hourly rates of its personnel: Managing Directors $710-$995 Directors $530-$685 Vice Presidents $395-$520 Associates $280-$380 Analysts $245-$270 Paraprofessionals $190-$210 Alan D. Holtz, a managing director at AlixPartners, assures the Court that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. About Newark Group Cranford, New Jersey-based The Newark Group, Inc., manufactures and sells recycled paperboard and paperboard products. The company operates in three segments: Paperboard, Converted Products and International. The Company, along with affiliates, filed for Chapter 11 bankruptcy protection on June 9, 2010 (Bankr. D.N.J. Case No. 10- 27694). Kenneth Rosen, Esq., at Lowenstein Sandler, assists the Company in its restructuring effort. Jefferies & Company is the Company's investment banker. AlixPartners LLP is the Company's restructuring financial advisors. Deloitte & Touche LLP is the Company's accounting Advisors. Kurtzman Carson & Consultants LLC is the Company's claims, balloting & noticing agent. The Company estimated its assets and debts at $100,000,001 to $500,000,000. NEWARK GROUP: Wants to Hire Deloitte as Independent Auditor ----------------------------------------------------------- The Newark Group, Inc., et al., have sought permission from the U.S. Bankruptcy Court for the District of New Jersey to employ Deloitte & Touche LLP as independent auditor and accountant, nunc pro tunc to the Petition Date. Deloitte & Touche will: a. audit the consolidated annual financial statements of the Debtors for the year ended April 30, 2010; b. perform reviews of interim financial statements; and c. as may be agreed to by Deloitte & Touche, render other related professional services, including but not limited to audit and accounting services, as the Debtors, their attorneys, or financial advisors from time to time request. Deloitte & Touche will be paid based on the hourly rates of its personnel: Partners $440 Principals $440 Directors $440 Senior Managers $365 Managers $330 Seniors $265 Staff Professionals $190 John Brulato, a partner at Deloitte & Touche, assures the Court that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. About Newark Group Cranford, New Jersey-based The Newark Group, Inc., manufactures and sells recycled paperboard and paperboard products. The company operates in three segments: Paperboard, Converted Products and International. The Company, along with affiliates, filed for Chapter 11 bankruptcy protection on June 9, 2010 (Bankr. D.N.J. Case No. 10- 27694). Kenneth Rosen, Esq., at Lowenstein Sandler, assists the Company in its restructuring effort. Jefferies & Company is the Company's investment banker. AlixPartners LLP is the Company's restructuring financial advisors. Deloitte & Touche LLP is the Company's accounting Advisors. Kurtzman Carson & Consultants LLC is the Company's claims, balloting & noticing agent. The Company estimated its assets and debts at $100,000,001 to $500,000,000. NEWARK GROUP: Wants Jefferies & Co. as Investment Banker -------------------------------------------------------- The Newark Group, Inc., et al., have asked for authorization from the U.S. Bankruptcy Court for the District of New Jersey to employ Jefferies & Company, Inc., as investment banker. Jefferies will, among other things: a. analyze the business, operations, assets, financial condition and prospects of the Debtors; b. provide a valuation analysis of the Debtors if requested, the form of which will be agreed upon by Jefferies and the Debtors, and provide expert testimony relating to any valuation; c. advise the Debtors on the current state of the restructuring and capital markets; and d. assist and advise the Debtors in examining and analyzing any potential or proposed strategy(ies) related to their restructuring. The Debtors intend to pay Jefferies: a. a $150,000 monthly fee; b. a $3.0 million restructuring fee; c. a DIP financing fee equal to 2.0% of the principal amount of any debt of the Company placed with or purchased by persons or entities who are not lenders to or noteholders of the Company promptly prior to such placement or purchase, and 1.0% of the principal amount of any credit facility provided by Wells Fargo and any incremental debt of the Company placed with or purchased by persons or entities who are lenders to or noteholders of the Company or any incremental increase in availability of the amount available under the Company's asset based lending facility; d. an exit financing fee of (i) 1.0% of the greater of the aggregate principal amount of any debt raised secured by assets; (ii) 2.0% of the greater of the aggregate amount available under and the aggregate principal amount of any unsecured debt raised; and (iii) 5.5% of the aggregate gross proceeds from the purchase or placement of any equity securities or equity-linked securities; e. a $3.0 million M&A transaction fee; and f. reimbursement for all reasonable out-of-pocket expenses incurred in connection with the subject matter of the Jefferies' engagement. Hal Kennedy, managing directors at Jefferies, assures the Court that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. About Newark Group Cranford, New Jersey-based The Newark Group, Inc., manufactures and sells recycled paperboard and paperboard products. The company operates in three segments: Paperboard, Converted Products and International. The Company, along with affiliates, filed for Chapter 11 bankruptcy protection on June 9, 2010 (Bankr. D.N.J. Case No. 10- 27694). Kenneth Rosen, Esq., at Lowenstein Sandler, assists the Company in its restructuring effort. Jefferies & Company is the Company's investment banker. AlixPartners LLP is the Company's restructuring financial advisors. Deloitte & Touche LLP is the Company's accounting Advisors. Kurtzman Carson & Consultants LLC is the Company's claims, balloting & noticing agent. The Company estimated its assets and debts at $100,000,001 to $500,000,000. NORTHWEST AIRLINES: Plan Discharged Discrimination Claim -------------------------------------------------------- WestLaw reports that notwithstanding the fact that the debtor's employee's "claim" was contingent on being unsuccessful in his grievance, the employee's disability discrimination claim existed on the effective date of the debtor's confirmed reorganization plan, and therefore the claim was discharged in the bankruptcy case. The allegedly discriminatory conduct was one discrete act, the employer's revocation of the employee's position, and the employer's post-confirmation refusal to remedy that "discrimination" was not a separately actionable discriminatory act. Sanchez v. Northwest Airlines, Inc., --- F.Supp.2d ----, 2010 WL 2090083 (D. Minn.). About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/>http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The Company and 12 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Scott L. Hazan, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed $14.4 billion in total assets and $17.9 billion in total debts. On January 12, 2007, the Debtors filed with the Court their chapter 11 plan. On February 15, 2007, the Debtors filed an amended plan and disclosure statement. The Court approved the adequacy of the Debtors' amended disclosure statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' amended plan. That amended plan took effect May 31, 2007. Northwest Airlines is now a unit of Delta Air Lines after it was acquired by Delta in October 2008. NRG ENERGY: Bank Debt Trades at 5% Off in Secondary Market ---------------------------------------------------------- Participations in a syndicated loan under which NRG Energy, Inc., is a borrower traded in the secondary market at 94.86 cents-on- the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.69 percentage points from the previous week, The Journal relates. The Company pays 175 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 1, 2013, and carries Moody's Baa3 rating and Standard & Poor's BB+ rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Princeton, NRG Energy, Inc., owns approximately 24,000 megawatts of generating facilities, primarily in Texas and the northeast, south central and western regions of the US. NRG also owns generating facilities in Australia and Germany. OMNICITY CORP: Posts $742,000 Net Loss in Q3 Ended April 30 ----------------------------------------------------------- Omnicity Corp. filed its quarterly report on Form 10-Q, reporting a net loss of $742,474 on $837,486 of revenue for the three months ended April 30, 2010, compared with a net loss of $599,424 on $424,766 of revenue for the same period a year ago. The Company's balance sheet as of April 30, 2010, showed $5,737,800 in assets and $6,415,294 of liabilities, for a stockholders' deficit of $677,494. "The Company has generated substantial revenues but has sustained losses since inception and has never paid any dividends and is unlikely to pay dividends in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary debt and/or equity financing to fund its growth strategy, pay debt when due, to continue operations, and to attain profitability. As at April 30, 2010, the Company had a working capital deficit of $2,717,698 and a stockholders' deficit of $677,494. All of these factors combined raises substantial doubt regarding the Company's ability to continue as a going concern." A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?6511 About Omnicity Corp. Based in Rushville, Indiana, Omnicity Corp. (OTC BB: OMCY) -- http://www.omnicitycorp.com/-- provides broadband access, including advanced services of voice, video and data, in un-served and underserved small and rural markets and is planning to be the premier consolidator of rural market broadband nationwide. PACIFIC ETHANOL: Issues Additional 497,728 Shares to Socius ----------------------------------------------------------- To recall, on April 13, 2010, the Superior Court of the State of California for the County of Los Angeles entered an Order Approving Stipulation for Settlement of Claim in the matter entitled Socius CG II, Ltd. v. Pacific Ethanol, Inc. The Order provided for the full and final settlement of Socius GC II, Ltd.'s $4,000,000 claim against Pacific Ethanol, Inc. Socius purchased the Claim from Lyles United, LLC, a creditor of Pacific Ethanol, pursuant to the terms of a Purchase Agreement dated effective as of April 10, 2010 between Socius and Lyles United. The Claim consists of the right to receive $4,000,000 of principal amount of and under a loan made by Lyles United to the Company pursuant to the terms of an Amended and Restated Promissory Note dated November 7, 2008 in the original principal amount of $30,000,000. Pursuant to the terms of the Order, on April 14, 2010, Pacific Ethanol issued and delivered to Socius 3,750,000 shares of its common stock, subject to adjustment as set forth in the Order. The Company would have been required to issue an additional 497,728 shares of its common stock to Socius, however, the Company was prohibited from issuing additional shares to the extent the aggregate number of shares of the Company's common stock to be issued to Socius or its designee in connection with the settlement of the Claim, aggregated with any other shares of the Company's common stock issued to Socius and/or its designees by the Company, at any time would exceed 19.99% of the total number of shares of the Company's common stock outstanding immediately preceding the date of the Order unless the Company obtained (1) stockholder approval of the issuance of more than such number of shares of its common stock pursuant to NASDAQ Marketplace Rule 5635(d), or (2) a waiver from NASDAQ of the Company's compliance with Rule 5635(d). The additional 497,728 shares would have exceeded the Share Limitation. On June 3, 2010, the Company obtained the requisite stockholder approval of the issuance of shares of its common stock in excess of the Share Limitation pursuant to NASDAQ Listing Rule 5635(d). On June 9, 2010, the Company issued the additional 497,728 shares. As a result, in full satisfaction of the Claim (excluding any legal fees and expenses incurred by Socius in connection with the settlement of the Claim, which fees and expenses will be paid by the Company in connection with the settlement of future claims) the Company issued to Socius a total of 4,247,728 shares of its common stock. About Pacific Ethanol Pacific Ethanol Holding Co. LLC and four affiliates filed for Chapter 11 on May 17, 2009 (Bankr. D. Del. Case No. 09-11713). Judge Kevin Gross handles the case. Attorneys at Cooley Godward Kronish LLP represent the Debtors as counsel. Attorneys at Potter Anderson & Corroon LLP are co-counsel. Epiq Bankruptcy Solutions LLC is the claims agent. Pacific Ethanol Holding disclosed $50 million to $100 million in assets and $100 million to $500 million in debts in its petition. Pacific Ethanol Inc. and its marketing subsidiaries, Kinergy Marketing LLC, and Pacific Ag. Products, LLC, have not filed for Chapter 11 bankruptcy protection. The Company is expected to continue to manage the Plant Subsidiaries under an Asset Management Agreement and Kinergy and PAP are expected to continue to market and sell the Plant Subsidiaries' ethanol and feed production under existing Marketing Agreements. PANAMSAT CORP: Bank Debts Trade at 7% Off in Secondary Market ------------------------------------------------------------- Participations in three syndicated loans under which PanAmSat Corporation is a borrower traded in the secondary market at 93.23 cents-on-the-dollar (per loan) during the week ended June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 1.02 percentage points (per loan) from the previous week, The Journal relates. The Company pays 250 basis points above LIBOR to borrow under each facility, which mature simultaneously on Jan. 3, 2014. The bank debts are not rated by Moody's and Standard & Poor's. The debts are among the biggest gainers and losers of 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Intelsat Corporation, -- http://www.intelsat.com/-- formerly known as PanAmSat Corporation, is a global provider of video, corporate, Internet, voice and government communications services with a fleet of 25 satellites in-orbit. The Company provides transponder capacity to customers on Company-owned and operated satellites, and deliver third-party entertainment and information to cable television systems, television broadcasters, direct-to- home, television operators, Internet service providers, telecommunications companies, governments and other corporations. It also provides satellite services and related technical support for live transmissions for news and special events coverage. In addition, the Company provides satellite services to telecommunications carriers, corporations and Internet service providers for the provision of satellite-based communications networks, including private corporate networks. Intelsat Ltd.'s balance sheet showed total assets of $12.05 billion, total debts of $12.77 billion and stockholders' deficit of $722.3 million as of March 31, 2008. PETCO ANIMAL: Bank Debt Trades at 5% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which PETCO Animal Supplies, Inc., is a borrower traded in the secondary market at 95.23 cents-on-the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.68 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on Sept. 26, 2013, and carries Moody's B1 rating and Standard & Poor's B+ rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. PETCO Animal Supplies, Inc., headquartered in San Diego, California, is a specialty retailer of premium supplies, food and services for household pets. The Company operates about 1,000 stores in all 50 U.S. states. Revenues were about $2.6 billion for the last twelve months ending May 2, 2009. PHOENIX COMPANIES: Moody's Downgrades Senior Debt Rating to 'B3' ---------------------------------------------------------------- Moody's Investors Service has downgraded the senior debt rating of The Phoenix Companies, Inc., to B3 from B1. In the same rating action, the insurance financial strength rating of the company's life insurance subsidiaries, led by Phoenix Life Insurance Company (Phoenix Life), was downgraded to Ba2 from Ba1 and the debt rating on Phoenix Life's surplus notes was downgraded to B1 from Ba3. The outlook on Phoenix and its life insurance subsidiaries was changed to stable from negative. Moody's said the rating downgrades of Phoenix and its operating companies were driven primarily by the group's relatively weak capital position, which exacerbates the company's limited financial flexibility; expectation for modest earnings in the near to medium term; and the company's diminished market position. According to Moody's Analyst, Shachar Gonen, "Phoenix's financial profile remains vulnerable to adverse market conditions as the company lacks significant earnings capacity to replenish capital. In addition, the company's existing brand will not provide much support as Phoenix changes its focus to the broader middle market to regenerate sales rather than its traditional affluent customer base." The rating agency commented that the stable outlook on the ratings reflects the expectation that investment losses will stabilize or decline going forward, providing some lift to earnings. One area of particular concern, however, is the sizeable below investment grade bond holdings and exposure to CDO securities, which have experienced downward rating actions. Moody's added that the notching between the Ba2 IFS rating of the company's life insurance subsidiaries and the B3 senior debt rating of Phoenix is one notch wider than Moody's standard three notches, reflecting the greater difference in expected loss between levels of the capital structure as the ratings move through the below investment grade range. Commenting on Phoenix's financial flexibility, Moody's said that the company has limited access to the debt and equity capital markets. It will also be challenging for Phoenix Life to balance the payment of dividends to its parent with maintaining an adequate capital position. However, the rating agency noted that Phoenix held approximately $51 million of cash and securities at March 31, 2010, which provides a cushion to meet holding company interest payments and operating expenses. Moody's said the ratings could be upgraded if these occurs: 1) Phoenix Life's capital levels successfully stabilize at a 300% company action level RBC ratio or higher; 2) Phoenix Life achieves statutory earnings sufficient to organically generate needed levels of capital and adequately service holding company obligations; 3) persistency on the company's existing inforce policies remains consistent with current levels; and 4) 2010 pre- tax gross investment losses are less than $100 million. Conversely, the ratings could be downgraded further if these occurs: 1) the NAIC company action level RBC ratio declines to 200% or lower; 2) cash outflows on the company's existing policies substantially increase from their current pace; or 3) 2010 pre-tax gross investment losses exceed $200 million. Theses ratings have been downgraded with a stable outlook: * Phoenix Companies, Inc. -- senior unsecured debt rating to B3 from B1; * Phoenix Life Insurance Company -- insurance financial strength to Ba2 from Ba1, surplus notes to B1 from Ba3; * PHL Variable Insurance Company -- insurance financial strength to Ba2 from Ba1. Phoenix is an insurance organization headquartered in Hartford, Connecticut. As of March 31, 2010, Phoenix reported total assets of about $25 billion and stockholders' equity of approximately $1.2 billion. The last rating action on Phoenix occurred on September 8, 2009, when Moody's downgraded Phoenix's senior debt rating to B1 (negative outlook) from Ba2. Moody's insurance financial strength ratings are opinions of the ability of insurance companies to punctually pay senior policyholder claims and obligations. PHOENIX EQUITY: Case Summary & Largest Unsecured Creditor --------------------------------------------------------- Debtor: Phoenix Equity Group, LLC 65 Enterprise Aliso Viejo, CA 92656 Bankruptcy Case No.: 10-18246 Chapter 11 Petition Date: June 17, 2010 Court: United States Bankruptcy Court Central District of California (Santa Ana) Judge: Erithe A. Smith Debtor's Counsel: Thomas C. Nelson, Esq. 484 Prospect St La Jolla, CA 92037 Tel: (858) 875-5092 Fax: (619) 236-1246 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Basmar, LLC Trade Debt $3,883 c/o Carl Essert 4350 La Jolla Village Dr. Suite H29 San Diego, CA 92122 The petition was signed by Kevin Tucker, manager. PRIME GROUP: Mortgage Lender Forecloses on Continental Towers ------------------------------------------------------------- Prime Group Realty Trust reported that on June 14, 2010, two of its subsidiaries that owned the Continental Towers complex in Rolling Meadows, Illinois, conveyed the Property to a designee of the holder of the first mortgage loans on the Property. In exchange, the holder of the loans delivered a release of the loans to the two subsidiaries. According to the Troubled Company Reporter on March 3, 2010, Two of Prime Group Realty Trust's subsidiaries, each of which own separate portions of the Continental Towers Complex in Rolling Meadows, Illinois, defaulted under their first mortgage loans encumbering the Complex. Continental Towers, L.L.C., a subsidiary of the Company, is the owner of Tower I, Tower III and the Commercium at the Continental Towers Complex. The CT Property is encumbered by a first mortgage loan from CWCapital LLC in the principal amount of $73.6 million. As reported by the Troubled Company Reporter on December 15, 2009, Prime Group Realty Trust said the Company's Board of Trustees has determined not to declare a quarterly distribution on its Series B Preferred Shares for the fourth quarter of 2009, and that the Board is unable to determine when the Company might recommence distributions on the Series B Preferred Shares. About Prime Group Realty Trust Prime Group Realty Trust -- http://www.pgrt.com/-- is a fully- integrated, self-administered, and self-managed real estate investment trust which owns, manages, leases and redevelops office real estate, primarily in metropolitan Chicago. The Company currently owns 5 office properties containing an aggregate of approximately 1.6 million net rentable square feet and a joint venture interest in one office property comprised of approximately 101,000 net rentable square feet. PROTECTED VEHICLES: Court Takes Jurisdiction over H.K. Resident --------------------------------------------------------------- WestLaw reports that the contacts between an 84-year-old resident of Hong Kong and the United States were not sufficiently systematic and continuous to permit the bankruptcy court to exercise general personal jurisdiction in a preference proceeding. However, the fact that the preference claims arose out of the Chapter 11 debtor's repayment of loan that this nonresident octogenarian had directed to debtor in the United States was sufficient to permit the exercise of specific personal jurisdiction. In re Protected Vehicles, Inc., --- B.R. ----, 2010 WL 2163283 (Bankr. D. S.C.) (Duncan, J.). Based in North Charleston, S.C., Protected Vehicles Inc. aka PVI - - http://www.protectedvehicles.com/-- designed and manufactured ballistic and blast protected vehicles using technology derived from Rhodesian and South African vehicle development programs. PVI creditors filed an involuntary chapter 7 petition on Jan. 15, 2008. PVI filed an answer and filed a voluntary chapter 11 petition (Bankr. D. S.C. Case No. 08-00783) on Feb. 5, 2008. G. William McCarthy, Jr., Esq., at McCarthy Law Firm LLC, represents the Debtor. Its largest unsecured creditor, the United States Marine Corps, is owed $15,801,765. In Feb. 2008, the Debtor reported assets of $24 million and debts of $54.1 million. The Debtor and the Committee filed a Joint Plan of Liquidation under Chapter 11 of the Bankruptcy Code, which, as amended, was confirmed on Feb. 9, 2009, and became effective on Feb. 20, 2009. Aurora Management Partners, Inc., serves as the Liquidating Supervisor for Protected Vehicles, Inc., under the terms of that confirmed plan, and is prosecuting avoidance actions for the benefit of the Debtor's creditors. PROVIDENT ROYALTIES: Chapter 11 Trustee Wins Plan Confirmation -------------------------------------------------------------- Chapter 11 Trustee, the official committee of unsecured creditors and official investors committee for Provident Royalties LLC and its affiliates have obtained confirmation of their plan of liquidation, according to citybizlist of Dallas. The Plan, the report says, provides 100% return to all creditors on their claims with interest, and creates a liquidating trust to pursue claims against third parties for the benefit of holders of preferred stock interests. The Plan was overwhelmingly approved by creditors and investors, according to citybizlist. About Provident Royalties Based in Dallas, Texas, Provident Royalties LLC owns working interests in oil and gas properties primarily in Oklahoma. Provident and its affiliates filed for Chapter 11 on June 22, 2009 (Bankr. N.D. Tex. Case No. 09-33886). Judge Harlin DeWayne Hale presides over the case. Epiq Bankruptcy Solutions, LLC is the claims and noticing agent. The United States Trustee for the Northern District of Texas appointed nine members to the Official Committee of Unsecured Creditors. On July 2, 2009, the Securities and Exchange Commission filed, under seal, a complaint in District Court for the Northern District of Texas against the Debtors and certain of their principals and managing partners on allegations that they sold stock and limited partnership interest to over 7,700 investors as part of a $485 million Ponzi scheme. On July 2, 2009, the District Court for the Northern District of Texas appointed Dennis L. Roossien, Jr., at Munsch Hardt Kopf & Harr P.C. in Dallas, Texas, as receiver for the Debtors. On July 20, 2009, the Bankruptcy Court appointed the receiver as the Debtors' Chapter 11 trustee. Mr. Roossien, Jr., has taken possession and control of the Debtors' property and business. Mr. Roossien, Jr., has selected Patton Boggs, LLP, as his special counsel. Patton Boggs, LLP, was Debtors' counsel before the appointment of Mr. Roossien, Jr., as Chapter 11 trustee. Mr. Roossien, Jr., has selected Munsch Hardt Koph & Harr, P.C., as counsel. Gardere, Wynne, Sewell, LLP represents the official committee of unsecured creditors. Rochelle McCullough, LLP represents the official investors committee. The Company, in its petition, listed between $100 million and $500 million each in assets and debts. RABIA INC: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------- Debtor: RABIA, Inc. 444 Springwood Lane Bolingbrook, IL 60440 Bankruptcy Case No.: 10-27380 Chapter 11 Petition Date: June 17, 2010 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Jack B. Schmetterer Debtor's Counsel: Chris D. Rouskey, Esq. Rouskey and Baldacci 151 Springfield Ave Joliet, IL 60435 Tel: (815) 741-2118 Fax: (815) 741-0670 E-mail: rouskey-baldacci@sbcglobal.net Scheduled Assets: $1,033,200 Scheduled Debts: $960,098 A list of the Company's 3 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb10-27380.pdf The petition was signed by Ummay K. Asif, company's president. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Mohammad Y. Asif and Ummay K. Asif 10-15471 04/07/10 RADIO ONE: Refinancing Cues Moody's Rating Upgrade to 'B3' ---------------------------------------------------------- Moody's Investors Service will upgrade Radio One, Inc.'s Corporate Family Rating to B3 from Caa1 and its probability of Default Rating to B3 from Caa2 pending closing of their proposed note exchange, debt refinancing and purchase of additional interests in TVOne. Ratings on the new facilities are listed below. The upgrade will be driven by the extended maturity of the new debt, increased flexibility under its financial covenants as well as expectation of stronger performance going forward. The ratings outlook will also be revised to stable. Moody's notes that the proposed exchange offer for the existing subordinated notes will be considered a limited default as the notes are being exchanged for less than face value (albeit at a small discount). The existing Caa1 CFR, Caa2 PDR, and existing debt ratings as well as negative outlook remain in effect until the exchange of notes and refinancing closes. The B3 corporate family rating reflects Radio One's high pro forma debt-to-EBITDA leverage (9.0x pro forma for the transactions and incorporating Moody's standard adjustments) mitigated by Moody's expectation that operating performance will begin to improve as economic pressures wane allowing the company to reduce leverage and continue to generate modest yet positive free cash flow. Incorporated in the rating is Radio One's large market presence and niche focus targeting the African-American audience. Continued secular pressures and the company's reliance on four of its sixteen markets for approximately half of its revenue generation also weigh on Radio One's rating. While pro forma leverage levels are reflective of a Caa rating, asset values are likely in excess of outstanding debt in all but a distressed liquidation and reflective of a B3 rating if there is sufficient time to de-lever. Given the longer maturity window and expectation of improved flexibility under financial covenants afforded by the proposed debt facilities, the company will have an greater opportunity to de-lever prior to maturity. Even with the strong asset coverage, the company remains weakly positioned in the B3 ratings category. If the company is unable to complete the refinancing of all the existing debt, the shortened maturities combined with the high leverage, will result in the ratings remaining Caa1. These ratings will be upgraded pending exchange of notes, debt refinancing and review of final documentation: -- Corporate Family rating to B3 from Caa1 -- Probability of Default to B3 from Caa2 (LD will be assigned to the PDR upon completion of the exchange) These ratings will be assigned pending exchange of notes and refinancing: * $50 million senior secured revolving facility due 2014 -- Ba3, LGD1, 1% * $350 million senior secured term loan B due approximately 2016 - - B1, LGD2, 24% * New second lien notes due 2016 -- B3, LGD4 55% * New senior unsecured exchange notes due 2017 -- Caa2, LGD5, 82% To the extent portions of the notes remain outstanding after the exchange, these ratings will be upgraded at closing: * 8.875% senior subordinated notes due 2011 -- to Caa2, LGD6, 96% from Caa3, LGD4, 69% * 6.375% senior subordinated notes due 2013 -- to Caa2, LGD6, 96% from Caa3, LGD4, 69% These ratings will be withdrawn at closing: * $500 million existing senior secured revolving facility -- B2, LGD2, 17% * $45 million ($300 million original amount) existing first lien term loan -- B2, LGD2 17% Moody's most recent rating action on Radio One was May 11, 2009 when Moody's downgraded Radio One's CFR to Caa1 and downgraded its PDR to Caa2. Radio One Inc., headquartered in Lanham, Maryland operates or owns interests in broadcasting stations, a cable television network, and Internet-based properties, largely targeting the African- American audience. The company reported sales of approximately $270 million through the 12 months ending March 31, 2010. RADIO ONE: S&P Puts Junk Corp. Credit Rating on CreditWatch Pos. ---------------------------------------------------------------- Standard & Poor's Rating Services placed its 'CCC+' corporate credit rating on Lanham, Md.-based radio broadcaster Radio One Inc. on CreditWatch with positive implications. The company has proposed several transactions to refinance its capital structure and acquire a controlling stake in TV One LLC. Upon completion of the refinancing, and assuming there are no material changes to the proposed terms, S&P expects to raise the corporate credit rating to 'B' with a stable outlook. At the same time, S&P has assigned the company's proposed senior secured credit facility its issue-level rating of 'BB-' (two notches higher than the expected 'B' corporate credit rating) with a recovery rating of '1', indicating S&P's expectation of very high (90% to 100%) recovery in the event of a payment default. The senior secured credit facility consists of a $50 million revolving credit facility due 2014 and a $350 million term loan B, which matures in 7 years, or three months prior to the maturity of the company's proposed second-lien notes, unless 85% of the second-lien notes have been repaid by that time. S&P assigned Radio One's proposed $100 million secured second-lien notes due 2016 and $267.4 million of unsecured exchange notes due 2017 an issue-level rating of 'CCC+' (two notches lower than the expected 'B' corporate credit rating) with a recovery rating of '6', indicating S&P's expectation of negligible (0% to 10%) recovery for noteholders in the event of a payment default. "In S&P's opinion, Radio One's proposed refinancing plan alleviates risk surrounding near-term maturities and potential covenant violations under its existing credit facility," said Standard & Poor's credit analyst Michael Altberg. The existing facility was set to mature on Jan. 1, 2011, if the company were unable to refinance its 8.875% senior subordinated notes prior to that date. In addition to a new $400 million credit facility, Radio One plans to issue roughly $267.4 million of unsecured exchange notes to refinance its existing subordinated debt and offer subordinated noteholders the opportunity to subscribe to its new $100 million second-lien secured offering. S&P expects the company to use proceeds from the second-lien notes to acquire an additional 19.4% stake in TV One LLC, an African- American targeted cable TV network, giving the company a controlling interest of about 56.2%. The additional investment in TV One helps to diversify the company's business mix, providing a more stable revenue stream due to contractual affiliate fees that have annual escalators. Nevertheless, S&P expects fully adjusted leverage to remain high over the intermediate term due to a slower recovery in the radio segment because of transitional risks at the company's REACH Media business, and ongoing losses at its Interactive One business. S&P also believe that debt levels could increase modestly in late 2010 or early 2011 due to the company's call option to purchase an additional 10% stake in TV One from DirecTV. Pro forma for the currently proposed refinancing transaction the company had $733.5 million of debt outstanding as of March 31, 2010. Radio One is primarily a radio broadcaster targeting the African- American audience, with a portfolio of about 53 radio stations in 16 of the top 50 African-American markets. Within its radio segment, there is revenue concentration risk among four markets-- Houston, Texas; Washington, DC; Atlanta, Ga; and Baltimore, Md.-- which together account for 50.1% of radio revenue. In addition to a current 37% interest in TV One, the company has a 53.5% ownership interest in REACH Media Inc., a programming syndication business that is undergoing a transitional period following the expiration of a sales representation agreement, which S&P believes will affect near-term profitability at the segment. Interactive One is the company's online unit, which is currently generating an EBITDA loss, and could take longer to reach breakeven than originally anticipated. The positive CreditWatch listing reflects the potential for an upgrade over the near term based on the outcome of Radio One's proposed refinancing. Upon completion of the refinancing, and assuming there are no material changes to the proposed terms, S&P expects to raise its corporate credit rating on the company to 'B' with a stable outlook. RAMSEY HOLDINGS: Oklahoma Court Confirms Reorganization Plan ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Oklahoma confirmed the Chapter 11 Plan of Reorganization for Ramsey Industries Inc. and its debtor-affiliates, according to reporting by PennEnergy. The report relates that the Chapter 11 has enabled the Company to restructure its balance sheet and obtain new financing that positions the Company well and to continue to be an industry leader. As reported in the Troubled Company Reporter on April 6, 2010, the Plan provides for the recapitalization of the debt to the prepetition senior lenders. The Debtors will execute and deliver to the administrative agent, for the benefit of the prepetition senior lenders, the exit term loan, which is a $50,000,000 term promissory note, with a maturity date of October 31, 2013. Additionally, on the effective date, the Debtors will enter into the exit revolving facility, which is a senior secured first lien $3,000,000 revolving credit facility. Creditors and interest holders will be treated as follows: * Class 1 prepetition senior facility claims will receive their pro rata share of the exit term loan and payment of administrative agent's fees and expenses. * Holders of Class 2 - other secured claims, at the Debtors' option, will either have the claim cured and reinstated; or will receive other treatment as may be agreed to between the holder and the Debtors. * Class 3 - other priority claims will be paid in full, in cash, on the distribution date. * Class 4 general unsecured claims will receive 90% of the allowed claim in installments. * Class 5 unsecured deficiency claims will receive their pro rata share of the Class A equity interests. * Class 6 junior lender claims will receive their pro rata share of the Class B equity interests and payment of the junior lender fees and expenses. * Administrative convenience claims will be paid full, in cash, on the distribution date. * Class 8 - intercompany claims will receive no distribution. * Class 9 - intercompany interests will be reinstated on the effective date. * Class 10 - parent equity interests will receive their pro rata share of the Class C equity interests and payment of sponsor's fees and expenses. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/RamseyHoldings_DS.pdf About Ramsey Holdings, Inc. Headquartered in Tulsa, Oklahoma, Ramsey offers an array of industrial and consumer electric and hydraulic, worm and planetary gear winches and a comprehensive line of truck-mounted telescopic and articulating cranes and crane service bodies. Ramsey Holdings, Inc., filed for Chapter 11 bankruptcy protection on December 18, 2009 (Bankr. N.D. Okla. Case No. 09-13998). The Company's affiliates -- Auto Crane Company; Eskridge, Inc.; Ramsey Industries, Inc.; and Ramsey Winch Company -- also filed for Chapter 11 bankruptcy protection. Mark D.G. Sanders, Esq., at GableGotwals, P.C., represents the Debtor in its Chapter 11 effort. Ramsey Holdings listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. RAZA PROPERTIES: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Raza Properties, LLC 3 Elisha Drive Allentown, NJ 08501 Bankruptcy Case No.: 10-28452 Chapter 11 Petition Date: June 16, 2010 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Raymond T. Lyons Jr. Debtor's Counsel: Lance D. Brown, Esq. The Brown DePinto Law Firm, LLC 1 AAA Drive, Suite 205 Robbinsville, NJ 08691 Tel: (609) 587-5100 Fax: (609) 587-6030 E-mail: lancebrownlaw@gmail.com Scheduled Assets: $530 Scheduled Debts: $1,928,450 A list of the Company's 3 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb10-28452.pdf The petition was signed by Sibte I. Kazmi, owner. REALOGY CORP: Bank Debt Trades at 15% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which Realogy Corp. is a borrower traded in the secondary market at 84.75 cents-on-the- dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.46 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Sept. 30, 2013, and carries Moody's Caa1 rating and Standard & Poor's CCC- rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have approximately 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. RHODES ASSOCIATES: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Rhodes Associates Executive Search, Inc. 555 Fifth Avenue, 6th Floor New York, NY 10017 Bankruptcy Case No.: 10-13218 Chapter 11 Petition Date: June 17, 2010 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Judge: Shelley C. Chapman Debtor's Counsel: Avrum J. Rosen, Esq. The Law Offices of Avrum J. Rosen, PLLC 38 New Street Huntington, NY 11743 Tel: (631) 423-8527 Fax: (631) 423-4536 E-mail: ajrlaw@aol.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 says that assets total $1,120,658 while debts total $3,568,498. 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/nysb10-13218.pdf The petition was signed by Steven Littman, president. ROBERT BRILLIANT: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Joint Debtors: Robert M. Brilliant dba Hibiscus Suites Inn Cheryl P. Brilliant 3726 Castellon Court Sarasota, FL 34238 Bankruptcy Case No.: 10-14485 Chapter 11 Petition Date: June 17, 2010 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Judge: Catherine Peek McEwen 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 Scheduled Assets: $1,485,513 Scheduled Debts: $8,669,138 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb10-14485.pdf The petition was signed by Robert M. Brilliant and Cheryl P. Brilliant. ROBERT GILBERT: Taps Burton & Armstrong as Bankruptcy Counsel ------------------------------------------------------------- Robert Clark Gilbert filed asks the U.S. Bankruptcy Court for the Northern District of Georgia to employ Burton & Armstrong, LLP, as counsel. B&A will: a) prepare the Chapter 11 petition, schedules, statement of affairs, and other pleadings required by the Bankruptcy Code or Bankruptcy Rules; b) counsel the Debtor with respect to his powers and duties as a Debtor-in-possession; c) represent the Debtor in administrative or contested matters and adversary proceedings in this Court by or against the Debtor; and d) perform all legal services for the Debtor which may be necessary in the Bankruptcy Case. B&A received a prepetition retainer of $28,000. The hourly rates of B&A personnel are: Joseph J. Burton, Jr. $375 Rosemary S. Armstrong $350 Paralegals $100 To the best of the Debtor's knowledge, B&A is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Burton & Armstrong, Suite 1750 Two Ravinia Drive Atlanta, GA 30346 Tel: (404) 892-4144 Fax: (404) 892-0390 About Robert Clark Gilbert Acworth, Georgia-based Robert Clark Gilbert filed for Chapter 11 bankruptcy protection on March 15, 2010 (Bankr. N.D. Ga. Case No. 10-41047). Joseph J. Burton, Jr., Esq., who has an office in Atlanta, Georgia, assists the Debtor in his restructuring effort. The Debtor listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. ROBERT GILBERT: Files Schedules of Assets and Liabilities --------------------------------------------------------- Robert Clark Gilbert filed with the U.S. Bankruptcy Court for the Northern District of Georgia its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $1,079,000 B. Personal Property $10,640,750 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $3,410,000 E. Creditors Holding Unsecured Priority Claims $10,015 F. Creditors Holding Unsecured Non-priority Claims $1,764,527 ----------- ----------- TOTAL $11,719,750 $5,184,542 Acworth, Georgia-based Robert Clark Gilbert filed for Chapter 11 bankruptcy protection on March 15, 2010 (Bankr. N.D. Ga. Case No. 10-41047). Joseph J. Burton, Jr., Esq., who has an office in Atlanta, Georgia, assists the Debtor in his restructuring effort. The Debtor listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. RYLAND GROUP: Fitch Affirms Issuer Default Rating at 'BB' --------------------------------------------------------- Fitch Ratings has affirmed Ryland Group, Inc.'s ratings: -- Issuer Default Rating at 'BB'; -- Senior unsecured debt at 'BB'. The Rating Outlook has been revised to Stable from Negative. The ratings affirmation and the Outlook revision to Stable from Negative reflect the company's strong liquidity position, improved operating results and moderately stronger prospects for the housing sector this year. The ratings also reflect Ryland's successful execution of its business model, moderate financial policies, geographic and product line diversity and the still challenging U.S. housing environment. In recent years the company has improved its capital structure, pursued conservative capitalization policies and has positioned itself to withstand a meaningful housing downturn. Ryland's significant ranking (within the top five or top 10) in most of its markets, its presale operating strategy and a return on capital focus provide the framework to soften the impact on margins from declining market conditions. Acquisitions have not played a part in Ryland's operating strategy, as management has preferred to focus on internal growth (expanding its position in existing markets and occasional greenfield new market entries). Ryland ended the first quarter with $278.5 million of unrestricted cash and $480.7 million of marketable securities. The company terminated its revolving credit facility during the second quarter of 2009 and subsequently entered into various letters of credit agreements that are secured by cash deposits. At March 31, 2010, letters of credit totaling $61.6 million were outstanding under these agreements. Consistent with Fitch's comment on homebuilders' termination of revolving credit facilities, in the absence of a revolving credit line, a consistently higher level of cash and equivalents than was typical should be maintained on the balance sheet (about $200 million-$300 million), especially in these still uncertain times. Ryland accessed the capital markets during the past year and used these debt proceeds to redeem some of its existing debt. As a result, the company has pushed out its maturities, with no major debt coming due until June 2013 ($186 million). Ryland employs conservative land and construction strategies. The company only buys entitled land and intends to keep an approximately three to four year supply of lots under control. As of March 31, 2010, 25.3% of its lots were controlled through options -- a much lower than typical percentage due to considerable option abandonments and write-offs of recent years. Total lots, including those owned and controlled through joint ventures, were approximately 23,782 at March 31, 2010. This represents a 4.7-year supply of total lots controlled and 3.2-year supply of owned land based on trailing 12 months deliveries. Ryland has started to re-build its land position, supported by its strong liquidity. During the first quarter of 2010, the company increased its lot count for the first time in four years. Ryland expects to spend roughly $300 million-$325 million on land acquisitions and $50 million-$75 million on development expenditures during 2010. (Fitch estimates that the company spent less than $175 million for land and development expenditures in 2009.) Ryland generated $17 million of cash flow from operations during the first quarter of 2010, which included $100.5 million of tax refunds received during the quarter. On a latest 12 months (LTM) basis cash flow from operations was $140.9 million. For all of fiscal 2010, Fitch expects Ryland to be cash flow negative as the company starts to rebuild its land position. Negative cash flow is typical in the early stages of a housing recovery for many of the large public builders. Fitch is comfortable with this strategy given the company's liquidity position, well-laddered debt maturity schedule, proven access to the capital markets and management's demonstrated discipline in pulling back on land and development spending and improving its liquidity when the economy and housing contract. Housing apparently bottomed during 2009, and a so far anemic recovery has begun. During the next 12-15 months off the bottom, the recovery may appear jaw-toothed as substantial foreclosures now in the pipeline present as distressed sales and as meaningful new foreclosures arise from Alt-A and option ARM resets. High unemployment rates and the tightening of certain Federal Housing Administration loan standards will be notable headwinds early in the upcycle. The continuation and expansion of the scope of the national housing credit may have boosted sales in spring of this year, pulling demand forward from future months. And the Federal government's continuing efforts to modify foreclosures may finally show some success in 2010. Future ratings and Outlooks will be influenced by broad housing market trends as well as company specific activity, such as trends in land and development spending, general inventory levels, speculative inventory activity (including the impact of high cancellation rates on such activity), gross and net new order activity, debt levels and especially free cash flow trends and uses, and the company's cash position. SAINT VINCENTS: Committee Proposes KCC as Communications Agent -------------------------------------------------------------- The Official Committee of Unsecured Creditors for Saint Vincents Catholic Medical Centers of New York and its affiliates seeks the Court's authority to retain Kurtzman Carson Consultants, LLC, as its communications agent nunc pro tunc to April 28, 2010. KCC will undertake, among others, some or all of these actions and procedures: a. Establish and maintain an internet-accessible Web site that provides, without limitation: (1) a link or other form of access to the Web site maintained by the Debtors' claims, noticing and balloting agent at http://chapter11.epiqsystems.com/SV2/which will include, among other things, the case docket and claims register; (2) highlights of significant events in the Debtors' Chapter 11 cases provided by the Committee; (3) a general overview of the Chapter 11 process provided by the Committee; (4) press releases issued by the Committee or the Debtors provided by the Committee; (5) a non-public registration form for creditors to request updates regarding the Chapter 11 cases via electronic mail; (6) a non-public form to submit creditor questions, comments and requests for access to information; (7) responses to creditor questions, comments, and requests for access to information; provided, that the Committee may privately provide those responses in the exercise of its reasonable discretion, including in light of the nature of the information request and the creditor's agreement to appropriate confidentiality and trading constraints; (8) answers to frequently asked questions; (9) links to other relevant web sites; (10) the names and contact information for the Debtors' counsel and restructuring advisors; and (11) the names and contact information for the Committee's counsel and financial advisors; b. Distribute updates regarding the Chapter 11 cases via electronic mail for creditors that have registered for those service on the Committee Web site; and c. Establish and maintain a telephone number and electronic mail address for creditors to submit questions and comments. The Committee has selected KCC because it is one of the country's leading Chapter 11 administrators, and specializes in noticing, claims processing, balloting and other administrative tasks necessary to operate Chapter 11 cases. Albert H. Kass, vice president of Corporate Restructuring Services of Kurtzman Carson Consultants, LLC, assures that Court that his firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. About Saint Vincent Catholic Medical Centers Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/-- is anchored by St. Vincent's Hospital Manhattan, an academic medical center located in Greenwich Village and the only emergency room on the Westside of Manhattan from Midtown to Tribeca, St. Vincent's Westchester, a behavioral health hospital in Westchester County, and continuing care services that include two skilled nursing facilities in Brooklyn, another on Staten Island, a hospice, and a home health agency serving the Metropolitan New York area. Its behavioral health services also provide supportive housing programs for people with mental illness throughout the Metropolitan area. Saint Vincent's is the designated provider for the New York and New Jersey region of the US Family Health Plan sponsored by the US Department of Defense. Saint Vincent's serves as the academic medical center of New York Medical College in New York City. The healthcare organization is sponsored by the Roman Catholic Bishop of Brooklyn and the president of the Sisters of Charity of New York. Saint Vincent Catholic Medical Centers of New York and six of its affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq., and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed the Debtors' Chapter 11 cases. On September 12, 2005, John J. Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over representing the Debtors in their restructuring efforts. Martin G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the Official Committee of Unsecured Creditors. As of April 30, 2005, the Debtors listed $972 million in total assets and $1 billion in total debts. The Court confirmed the Debtors' Chapter 11 plan on July 27, 2007. St. Vincent Catholic Medical Centers and its affiliates returned to the bankruptcy court by filing another Chapter 11 petition on April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed assets of $348 million against debt totaling $1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer Levin Naftalis & Frankel LLP, assist the Debtors in their restructuring efforts. The Debtors' special counsel is Garfunkel Wild, P.C., while their Crisis Management Team is led by Grant Thornton LLP. The Debtors' Chief Restructuring Officer is Mark E. Toney. SAINT VINCENTS: Committee Withdraws Request to Hire Houlihan ------------------------------------------------------------ The Official Committee of Unsecured Creditors in St. Vincents Catholic Medical Centers' cases withdrew its request for authority to retain Houlihan Lokey Howard & Zukin Capital, Inc., as its financial advisor and investment banker. The Committee previously said it has selected Houlihan based on its extensive experience and expertise in corporate restructurings, its knowledge of the capital and real estate markets, valuation, corporate finance and merger and acquisition capabilities, as well as its specific experience with and knowledge of the Debtors and the Debtors' capital structure as a result of Houlihan's work during the Debtors' previous Chapter 11 proceeding. About Saint Vincent Catholic Medical Centers Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/-- is anchored by St. Vincent's Hospital Manhattan, an academic medical center located in Greenwich Village and the only emergency room on the Westside of Manhattan from Midtown to Tribeca, St. Vincent's Westchester, a behavioral health hospital in Westchester County, and continuing care services that include two skilled nursing facilities in Brooklyn, another on Staten Island, a hospice, and a home health agency serving the Metropolitan New York area. Its behavioral health services also provide supportive housing programs for people with mental illness throughout the Metropolitan area. Saint Vincent's is the designated provider for the New York and New Jersey region of the US Family Health Plan sponsored by the US Department of Defense. Saint Vincent's serves as the academic medical center of New York Medical College in New York City. The healthcare organization is sponsored by the Roman Catholic Bishop of Brooklyn and the president of the Sisters of Charity of New York. Saint Vincent Catholic Medical Centers of New York and six of its affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq., and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed the Debtors' Chapter 11 cases. On September 12, 2005, John J. Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over representing the Debtors in their restructuring efforts. Martin G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the Official Committee of Unsecured Creditors. As of April 30, 2005, the Debtors listed $972 million in total assets and $1 billion in total debts. The Court confirmed the Debtors' Chapter 11 plan on July 27, 2007. St. Vincent Catholic Medical Centers and its affiliates returned to the bankruptcy court by filing another Chapter 11 petition on April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed assets of $348 million against debt totaling $1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer Levin Naftalis & Frankel LLP, assist the Debtors in their restructuring efforts. The Debtors' special counsel is Garfunkel Wild, P.C., while their Crisis Management Team is led by Grant Thornton LLP. The Debtors' Chief Restructuring Officer is Mark E. Toney. SAINT VINCENTS: M. Katzenstein Sues VIII SV556 for Secured Claim ---------------------------------------------------------------- Michael E. Katzenstein or the "MedMal Trust Monitor", in his capacity as the MedMal Trust Monitor of the MedMal-MW Trust, the MedMal-SI Trust and the MedMal-BQ Trust appointed pursuant to the Chapter 11 Plan of the Debtors confirmed on July 27, 2007, filed a complaint against VIII SV5556 Lender, LLC. The action seeks, among others, declaratory and injunctive relief with respect to the amount and breadth of priority of the secured claim asserted by VIII SV5556 Lender against the Debtors in their bankruptcy cases. The claim arises from a promissory note, first-priority mortgage and related documents on Staff House, issued to the original holder of the claim under the Chapter 11 Plan. VIII SV5556 Lender asserts that under the Chapter 11 Plan and the Loan Documents, the first-priority security interest on Staff House was explicitly limited to an amount of indebtedness no greater than $42.5 million, in order to protect the value of the second- priority security interest on Staff House provided to the MedMal Trusts, and their beneficiaries, under the Chapter 11 Plan. As of the Petition Date, as a result of payments made to date by the Debtors, it is undisputed that the principal indebtedness outstanding under the Loan Documents was $39,504,454, Mr. Katzenstein relates. Mr. Katzenstein maintains that subsequent to the Petition Date, VIII SV5556 Lender purchased the claim in an attempt to bolster its position as a potential bidder interested in acquiring Staff House in the auction process established in these bankruptcy cases. He adds that the purchase price paid by VIII SV5556 Lender for the claim was in the amount of the Current Principal Indebtedness. Mr. Katzenstein relates that shortly after acquiring the claim, despite the undisputed amount of Current Principal Indebtedness outstanding under the claim and the Secured Claim Cap, VIII SV5556 Lender filed a proof of secured claim for not less than $46,061,378, plus interest, costs and fees. VIII SV5556 Lender has sought acknowledgment by the estate of its purported right to credit bid the face of the Claim for the sale of Staff House, to the detriment of the Debtors and their creditors, Mr. Katzenstein avers. Thus, Mr. Katzenstein seeks, among other things: (i) declaratory judgment that, according to the terms of the Chapter 11 Plan and Loan Documents, the allowed amount of Claim No. 59 is limited to the amount of the Current Principal Indebtedness; (ii) injunctive relief prohibiting VIII SV5556 Lender from credit bidding any amount asserted in excess of the Current Principal Indebtedness, which represents the undisputed portion of Claim No. 59; and (iii) entry of an order sustaining the objection to Claim No. 59 and allowing Claim No. 59 in an amount no greater than the Current Principal Indebtedness. About Saint Vincent Catholic Medical Centers Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/-- is anchored by St. Vincent's Hospital Manhattan, an academic medical center located in Greenwich Village and the only emergency room on the Westside of Manhattan from Midtown to Tribeca, St. Vincent's Westchester, a behavioral health hospital in Westchester County, and continuing care services that include two skilled nursing facilities in Brooklyn, another on Staten Island, a hospice, and a home health agency serving the Metropolitan New York area. Its behavioral health services also provide supportive housing programs for people with mental illness throughout the Metropolitan area. Saint Vincent's is the designated provider for the New York and New Jersey region of the US Family Health Plan sponsored by the US Department of Defense. Saint Vincent's serves as the academic medical center of New York Medical College in New York City. The healthcare organization is sponsored by the Roman Catholic Bishop of Brooklyn and the president of the Sisters of Charity of New York. Saint Vincent Catholic Medical Centers of New York and six of its affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq., and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed the Debtors' Chapter 11 cases. On September 12, 2005, John J. Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over representing the Debtors in their restructuring efforts. Martin G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the Official Committee of Unsecured Creditors. As of April 30, 2005, the Debtors listed $972 million in total assets and $1 billion in total debts. The Court confirmed the Debtors' Chapter 11 plan on July 27, 2007. St. Vincent Catholic Medical Centers and its affiliates returned to the bankruptcy court by filing another Chapter 11 petition on April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed assets of $348 million against debt totaling $1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer Levin Naftalis & Frankel LLP, assist the Debtors in their restructuring efforts. The Debtors' special counsel is Garfunkel Wild, P.C., while their Crisis Management Team is led by Grant Thornton LLP. The Debtors' Chief Restructuring Officer is Mark E. Toney. SAINT VINCENTS: Wins OK for Loeb as Healthcare Advisor ------------------------------------------------------ The U.S. Bankruptcy Court authorized Saint Vincents Catholic Medical Centers of New York and its affiliates to employ Loeb & Troper LLP as their healthcare transaction advisor pursuant to Section 327(a) of the Bankruptcy Code. Pursuant to the Engagement Letter, the Debtors agreed to compensate Loeb & Troper on these terms: (a) An aggregate amount of $82,500, consisting of (i) $75,000 payable to Loeb & Troper upon execution of the Engagement Letter, and (ii) an initial payment of $7,500; (b) A fixed monthly fee of $10,500 for the first six months of the Engagement, and $8,000 for each subsequent month until the closing of the Sales; (c) Upon consummation of a Sale or Sales of any of the Nursing and Rehabilitation Businesses, Loeb & Troper will receive 1% of the relevant sale price to be paid on the closing date of the relevant Sale; and (d) The Initial Advance and the Monthly Fee will be credited against the Transaction Fee; provided however, that the minimum compensation paid to Loeb & Troper will be $300,000; provided however, that the Transaction Fee will be contingent upon consummation of the Sale or Sales of the Nursing and Rehabilitation Businesses. The Debtors have also agreed to reimburse Loeb & Troper for its out-of-pocket expenses. The Court's order provides that Fee Arrangement is modified for Co-Brokered Assets where Loeb & Troper will receive a Transaction Fee of 0.9% of Aggregate Transaction Value for each sale or other transaction for a Co-Brokered Asset, subject to a minimum transaction fee in the amount equal to the lesser of (a) $300,000 or (b) 2.5% of Aggregate Transaction Value for each sale or other transaction for a Co-Brokered Asset. About Saint Vincent Catholic Medical Centers Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/-- is anchored by St. Vincent's Hospital Manhattan, an academic medical center located in Greenwich Village and the only emergency room on the Westside of Manhattan from Midtown to Tribeca, St. Vincent's Westchester, a behavioral health hospital in Westchester County, and continuing care services that include two skilled nursing facilities in Brooklyn, another on Staten Island, a hospice, and a home health agency serving the Metropolitan New York area. Its behavioral health services also provide supportive housing programs for people with mental illness throughout the Metropolitan area. Saint Vincent's is the designated provider for the New York and New Jersey region of the US Family Health Plan sponsored by the US Department of Defense. Saint Vincent's serves as the academic medical center of New York Medical College in New York City. The healthcare organization is sponsored by the Roman Catholic Bishop of Brooklyn and the president of the Sisters of Charity of New York. Saint Vincent Catholic Medical Centers of New York and six of its affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq., and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed the Debtors' Chapter 11 cases. On September 12, 2005, John J. Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over representing the Debtors in their restructuring efforts. Martin G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the Official Committee of Unsecured Creditors. As of April 30, 2005, the Debtors listed $972 million in total assets and $1 billion in total debts. The Court confirmed the Debtors' Chapter 11 plan on July 27, 2007. St. Vincent Catholic Medical Centers and its affiliates returned to the bankruptcy court by filing another Chapter 11 petition on April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed assets of $348 million against debt totaling $1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer Levin Naftalis & Frankel LLP, assist the Debtors in their restructuring efforts. The Debtors' special counsel is Garfunkel Wild, P.C., while their Crisis Management Team is led by Grant Thornton LLP. The Debtors' Chief Restructuring Officer is Mark E. Toney. SAKS INCORPORATED: Fitch Upgrades Issuer Default Rating to 'B' -------------------------------------------------------------- Fitch Ratings has upgraded the Issuer Default Rating of Saks Incorporated to 'B' from 'B-'. Based on Fitch's recovery analysis, the issue ratings on Saks' $500 million senior secured bank credit facility has been upgraded to 'BB/RR1' from 'BB-/RR1' and the ratings on the senior unsecured notes have been upgraded to 'BB/RR1 from 'B/RR3'. The Rating Outlook is Stable. The upgrades reflect the positive momentum in comparable store sales (comps) trends since December 2009 and the improvement in EBITDA and credit metrics relative to expectations. Fitch had previously assumed that comps would remain negative through 2010 and as a result, Saks' leverage would have likely been over 10 times. However, given comps in the positive mid-single digit range over the last six months, latest 12-month EBITDA for the period ended May 1, 2010, improved to $150 million versus $110 million in 2009 and $10 million in 2008, well above Fitch's expectations. Fitch expects adjusted debt/EBITDAR to improve to around 5.0x in 2010 from 6.3x in 2009 and 13.0x in 2008, assuming mid-single digit comps for the year. For 2011 and 2012, Fitch expects the company to report low single digit comps growth and as a result, credit metrics are expected to improve modestly. This also assumes the company pays down $142 million of debt due October 2011. At an EBITDA level of approximately $190 million and total debt paydown of $175 million in 2010 and 2011 maturities, Saks' leverage would return to a pre- recession level of 4.2x reported in 2007. Embedded in Fitch's sales expectation is a cautious outlook for the luxury sector and while recent comps trends for the luxury department store retailers have generally outperformed the broader department store sector given very depressed sales levels in the year ago period, it is still premature to determine a sustained level of sales growth for 2011/2012. Other concerns for Saks include the high volatility and variability in sales and earnings; historically weak operating results with sales productivity and profitability that is well below its two closest industry peers; and the dependence on the flagship New York store which accounts for approximately 20% of company sales but a higher percent of profit given significantly higher sales per square foot. Lower sales productivity at Saks' stores over the last 10 years relative to its two closest peers have kept operating margins at depressed levels. For 2009, Saks' average sales per square foot excluding its New York flagship store was under $310 versus $370 at Nordstrom and $450 at Neiman Marcus. As a result, EBITDA margin at Saks was 4.2% in 2009 versus 10.1% at Neiman Marcus and 14.4% at Nordstrom (excluding its credit card business). Even pre-recession, Saks EBITDA margin at just over 7% in 2007 lagged significantly behind mid-teen operating margins for these two retailers. Before Saks was hit with the downturn in late 2008, the company appeared to be in the midst of a successful turnaround through upgrading and broadening its merchandise mix, upgrading technology and targeted investments in its stores. This had resulted in superior comps performance from mid-2006 through mid- 2008 and returned the company to profitability in 2007. With the downturn in late 2008, profitability came under significant pressure on double digit sales declines. As a result, Saks was forced to pull back on store level investments, primarily major and expensive renovation projects, and expects 2010 net capital expenditures to be in the range of $55 million versus $60 million in 2009 and $125 million plus range for 2006-2008. Earlier this year, the company also announced plans to close a handful of underperforming stores over the next couple of years, with three store closings announced to date. Overall, Fitch thinks the asset base is in good shape given the significant capital infusion between 2006 and 2008 and the current level of capital spending adequately addresses maintenance capital spending and some level of remodeling activity. The main challenge will be Saks' ability to drive sustainable comps growth and leverage fixed costs to improve profitability. Given the recent downturn, the company has intensified its mix in the mid-price points (or 'good' and 'better' price options), as have Neiman Marcus and Nordstrom. The company has also focused on exclusives and private label offerings, which currently account for less than 10% of sales but Saks expects this could approach 20% over time. The main risk for the luxury retailers is striking the right merchandising balance at various price points and maintaining a consistent focus on the core luxury customer. Saks has significantly improved its liquidity position over the last 12 months as a result of capital infusion and free cash flow generation of $117 million in 2009. It amended and extended its $500 million credit facility to November 2013 and bolstered liquidity through its $100 million equity offering in September 2009 and $120 million convertible bond offering in May 2009. As of May 1, 2010, the company had approximately $180 million in cash and no borrowings under its $500 million credit facility. Fitch expects free cash flow of approximately $25-$30 million in 2010 and in excess of $50 million in 2011 and 2012. As a result, Fitch expects that Saks can pay down debt maturities of $23 million in December 2010 and $142 million in October 2011 with cash on hand. The ratings on the company's $500 million secured bank facility and the senior unsecured notes are derived from the IDR and the relevant Recovery Rating. Fitch's recovery analysis assumes a liquidation value in a distressed scenario of approximately $1 billion. This is based on a 50% liquidation value for inventory and about $640 million (or 70% of book PP&E) for owned real estate based on dark store valuation analysis. Saks owns 68% of its full-line square footage, including its Fifth Avenue New York City store, which remains unencumbered. Applying the $1 billion liquidation value for Saks across the capital structure results in outstanding recovery prospects (over 90%) for its $500 million revolving credit facility and its unsecured notes, which are therefore rated three notches above the IDR at 'BB/RR1'. The $368 million value assumed in Fitch's recovery analysis for the senior secured credit facility reflects a borrowing base of $456 million as of May 1, 2010, adjusted for $87.5 million. While the fixed charge coverage ratio was above 1.0x at May 1, 2010, Fitch assumes that under a stress case scenario, the fixed charge coverage would most likely to be under 1.0x and the company would therefore not have access to $87.5 million of availability. The senior credit facility which is due to mature in November 2013 is secured by inventories and certain receivables. Borrowings are limited to a prescribed percentage of eligible inventories and receivables. The facility is not subject to any financial covenants unless the availability falls below $87.5 million. At that time, it is subject to a fixed charge coverage ratio of at least 1:1. The facility, which was amended in November 2009, provided more flexibility in terms of debt incurrence and asset sales. The amended facility provided a carveout to sell or otherwise encumber up to $400 million of real estate during the term of the agreement. In addition, the company can sell up to $50 million worth of assets (and 50% of the unused portion from the prior year) per year, and up to $250 million in aggregate. Saks can also incur debt to purchase fixed assets; incur up to $100 million of debt maturing prior to the expiration date of the credit facility related to acquisitions, and other unsecured debt of up to $200 million. The company also increased the percent of voting stock that would constitute a change of control (and trigger an event of default) from over a 20% ownership to over 40%. The facility contains a provision that would trigger a default of the facility if a default were to occur in another debt instrument resulting in the acceleration of principal of more than $20 million in that instrument. The senior unsecured notes contain limitations on the amount of secured indebtedness the company may incur. SCOTT FISHER: Case Summary & 37 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Scott Fisher 806 Buchanen Boulevard Suite # 115-303 Boulder City, NV 89005 Bankruptcy Case No.: 10-21322 Chapter 11 Petition Date: June 17, 2010 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: Richard Mcknight, Esq. 330 S. Third ST. #900 Las Vegas, NV 89101 Tel: (702) 388-7185 Fax: (702) 388-0108 E-mail: mcknightlaw@cox.net Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of 37 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb10-21322.pdf The petition was signed by the Debtor. SENSIVIDA MEDICAL: Morison Cogen Raises Going Concern Doubt ----------------------------------------------------------- SensiVida Medical Technologies, Inc., filed on June 16, 2010, its annual report on Form 10-K for the year ended February 28, 2010. Morison Cogen LLP, in Bala Cynwyd, Pa., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has no revenues, incurred significant losses from operations, has negative working capital and an accumulated deficit. The Company reported a net loss of $1,564,329 for the year ended February 28, 2010, compared to a net loss of $2,186,101 for the year ended February 28, 2009. The Company's balance sheet as of February 28, 2010, showed $2,704,239 in assets and $3,377,721 of liabilities, for a stockholders' deficit of $673,482. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?650c About SensiVida Medical Based in Henrietta, New York, SensiVida Medicaal Technologies, Inc. f/k/a Mediscience Technology Corp. is a minimally invasive bio-medical diagnostic device company. Its proprietary optical Micro-systems based technology automates bio-sensing and data acquisition while minimizing patient discomfort. The Company's platform technology addresses a number of disease state diagnostics -- allergy testing, pain-free automated glucose monitoring without bio-fouling, blood coagulation testing (e.g. for Coumadin patients), TB testing and cholesterol monitoring. SIX FLAGS: Common Shares to Commence Trading on NYSE Under "SIX" ---------------------------------------------------------------- Six Flags Entertainment Corporation (formerly Six Flags, Inc.) announced Thursday that its shares of common stock will commence trading on the New York Stock Exchange under the symbol "SIX" at the market opening on Monday, June 21, 2010. Al Weber, President and Interim Chief Executive Officer of Six Flags, said, "We are excited to be once again listed on the New York Stock Exchange under the familiar SIX ticker symbol. With the financial restructuring behind us and a much improved balance sheet, Six Flags is well positioned for future growth." About Six Flags Six Flags Entertainment Corporation (formerly Six Flags, Inc.) is a publicly-traded corporation headquartered in New York City and is the world's largest regional theme park company with 19 parks across the United States, Mexico and Canada. Six Flags filed for Chapter 11 protection on June 13, 2009 (Bankr. D. Del. Lead Case No. 09-12019). Paul E. Harner, Esq., Steven T. Catlett, Esq., and Christian M. Auty, Esq., at Paul, Hastings, Janofsky & Walker LLP in Chicago, Illinois, act as the Debtors' lead counsel. Daniel J. DeFranceschi, Esq., and L. Katherine Good, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, act as local counsel. Cadwalader Wickersham & Taft LLP, serves as special counsel. Houlihan Lokey Howard & Zukin Capital Inc., serves as financial advisors, while KPMG LLC acts as accountants. Kurtzman Carson Consultants LLC serves as claims and notice agent. As of March 31, 2009, Six Flags had $2,907,335,000 in total assets and $3,431,647,000 in total liabilities. Six Flags emerged from Chapter 11 on May 1, 2010. Under the plan confirmed by the bankruptcy court on April 30, Six Flags reduced its indebtedness and mandatorily redeemable preferred stock from approximately $2.7 billion at December 31, 2009, to approximately $1.0 billion at emergence. SMURFIT-STONE: Kramer Levin Bills $2.3 Mil. for Jan.-March Work --------------------------------------------------------------- These professionals retained in Smurfit-Stone Corp.'s Chapter 11 cases seek Court-approval of their quarterly fee applications covering these periods: Professional Period Fees Expenses ------------ ---------- ---------- -------- Kramer Levin Naftalis Jan. to $2,328,329 $81,303 & Frankel LLP Mar. 2010 Houlihan Lokey Howard Oct. to 800,000 7,190 & Zukin Capital, Inc. Dec. 2009 Jan. to 600,000 18,408 Mar. 2010 FTI Consulting, Inc. Jan. to 675,000 6,138 Mar. 2010 Bennett Jones LLP Jan. to 493,484 14,321 Mar. 2010 Young Conaway Stargatt Jan. to 169,530 23,748 & Taylor LLP Feb. 2010 In addition, certain members of the Official Committee of Unsecured Creditors seek reimbursement of expenses incurred for the November 2009 to February 2010 period totaling $5,472. In separate filings these professionals certified that no objections were filed to their quarterly fee applications for these periods: Professional Period ------------ ------ State Tax Solutions LLC Jul. 2009 to d/b/a John C. Blase, Feb. 2010 Attorney & CPA FTI Consulting Jan. to Mar. 2010 Houlihan Lokey Oct. to Dec. 2009 Fee Auditor Submits Recommendations Warren H. Smith & Associates P.C., acting in its capacity as fee auditor, recommends the approval of quarterly fees and expenses of these professionals: Professional Fees Expenses Period ----------- ---- -------- ------ Ernst & Young LLP 3,244,945 72,659 Jul. to Dec. 2009 Sidley Austin LLP 2,020,558 38,788 Sep. to Oct. 2009 Kramer Levin 1,167,106 32,308 Oct. to Dec. 2009 PricewaterhouseCoopers 1,096,009 85,734 Sept. to LLP as: financial & tax Oct. 2009 advisors The Levin Group L.P. 850,000 - Nov. 2009 Hewitt Associates LLC 474,512 713 Jan. to Oct. 2009 Bennett Jones 302,410 388 Oct. to Dec. 2009 Pachulski Stang Ziehl 38,230 10,395 Oct. to & Jones LLP Dec. 2009 Grubb & Ellis Company 15,501 - Oct. to Dec. 2009 * * * The Court approved the Professionals' quarterly applications for payment of fees and reimbursement of expenses covering the periods from July to December 2009. Lists of the Professionals and their fees are available for free at: * Debtor Professionals: http://bankrupt.com/misc/SmrftDebtQFeesORD.pdf * Committee Professionals: http://bankrupt.com/misc/SmrftCommQFeesORD.pdf About Smurfit-Stone Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/-- is one of the leading integrated manufacturers of paperboard and paper-based packaging in North America and one of the world's largest paper recyclers. The Company operates 162 manufacturing facilities that are primarily located in the United States and Canada. The Company also owns roughly one million acres of timberland in Canada and operates wood harvesting facilities in Canada and the United States. The Company employs roughly 21,250 employees, 17,400 of which are based in the United States. For the quarterly period ended September 30, 2008, the Company reported roughly US$7.450 billion in total assets and US$5.582 billion in total liabilities on a consolidated basis. Smurfit-Stone and its U.S. and Canadian subsidiaries filed for Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead Case No. 09-10235). Certain of the company's affiliates, including Smurfit-Stone Container Canada Inc., a wholly owned subsidiary of SSCE, and certain of its affiliates, filed to reorganize under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice in Canada. Smurfit-Stone joined pulp- and paper-related bankruptcies as rising Internet use hurts magazines and newspapers. Corporacion Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy in October. Quebecor World Inc., a magazine printer and Pope & Talbot Inc., a pulp-mill operator, also sought cross-border bankruptcies for their operations in the U.S. and Canada. James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M. Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware, serve as the Debtors' bankruptcy counsel. PricewaterhouseCoopers LLC, serves as the Debtors' financial and investment consultants. Lazard Freres & Co. LLC acts as the Debtors' investment bankers. Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and claims agent. Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Smurfit-Stone Container Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) SOLO CUP: Fitch Affirms Issuer Default Rating at 'B-' ----------------------------------------------------- Fitch Ratings has affirmed the ratings for Solo Cup Company's Issuer Default Ratingand existing credit ratings: -- IDR affirmed at 'B-'; -- Senior secured Notes at 'BB-/RR1'; -- Senior secured revolving credit facility affirmed at 'BB- /RR1'; -- Senior subordinated notes at 'CCC'/RR5. The Rating Outlook is Stable. The affirmation recognizes Solo Cup's leading market share across its product categories, national distribution, strong brand recognition, diversified raw materials mix and good customer base. In addition, the company has focused its efforts on removing additional costs, exiting unprofitable product lines and improving resource utilization. This was accomplished through closing manufacturing facilities and further capital investments that have resulted in improved efficiencies. Consequently, gross margins have improved the past four quarters although these benefits have been partially offset by the significant volume declines associated with the economic recession and the competitive marketplace that have particularly affected certain foodservice channels. Recent trends during the past two quarters have shown that volume has stabilized although pricing continues to be somewhat under pressure. Fitch expects the current environment will remain challenging as a result of high unemployment that is not expected to improve materially in the upcoming months. Additionally, industry pricing will likely remain pressured as result of excess industry capacity due to past industry volume declines. Fitch expects this will result in further industry consolidation and capacity rationalization in the coming quarters before pricing can stabilize. In view of that, Solo Cup has announced further plans to optimize its manufacturing footprint by closing three facilities during the next two years with production volume and certain manufacturing assets to be redistributed across Solo's other facilities. This restructuring will allow Solo Cup to better leverage their existing plant investments and drive higher asset utilization. The company has indicated cash expenses associated with the plant closures are in the range of $21 million to $26 million as well as additional capital will be required for relocating equipment. While Fitch believes operating performance should further stabilize in 2010 driven by improved volume/mix and additional manufacturing cost reductions, pricing pressures and increased raw material pricing will at least partially offset these improvements. Additionally, the company will have increased short-term cash costs from the plant restructurings due to inventory build-up, new infrastructure capital, and cash expenses related to complete the restructuring. Consequently, Fitch expects free cash flow in 2010 to be modest. FCF for 2009 was approximately $66 million primarily due to positive changes in working capital. Interest costs are moderately higher due to the 2009 refinancing. Leverage at the end of the first quarter of 2010 was 5.3 times and expectations are that leverage will improve modestly by year end. The refinancing in 2009 of its revolver and term loan has improved Solo Cup's financial profile by extending maturities to 2013 while eliminating some covenant requirements and giving the company greater operating flexibility with its asset-based revolving loan facility. The ABL facility matures in June 2013 and provides borrowing capacity up to $200 million subject to borrowing base limitations. At the end of first quarter of 2010, available capacity under the ABL facility was $101 million, which includes $57 million outstanding and $12 million associated with letters of credit. Subsequent to the first quarter ending, Solo Cup further drew down on its revolver to fund the $24 million acquisition of Innoware Plastics. Cash on the balance sheet was $28 million at first-quarter end. Solo Cup does not have any material maturities until 2013. Fitch currently believes the ratings have longer-term upward potential. While the company has improved its credit profile during the past couple of years, Solo Cup's operating performance is closely linked to unemployment levels. Fitch believes that until labor markets show improvement and excess industry capacity is reduced, future spending levels by consumers is uncertain and pricing pressures will continue to limit revenue and margin growth while constraining free cash flow. SOLYNDRA INC: Withdraws IPO Due to Adverse Market Conditions ------------------------------------------------------------ Solyndra Inc. announced Thursday that it has entered into an agreement for the sale of secured convertible promissory notes to certain of its existing investors in an aggregate principal amount of $175 million in a private placement. Proceeds from the sales of the notes will be used to fund the company's existing operations and support its growth plans. "Given the ongoing uncertainties in the public capital markets, we elected to pursue alternative funding from our existing investor base. This funding allows us to address strong customer demand by maintaining our aggressive growth plans," commented Dr. Chris Gronet, CEO of Solyndra. Solyndra filed on June 18, 2010, a Form RW withdrawing its Registration Statement on Form S-1, which was originally filed with the Securities and Exchange Commission on December 18, 2009. The Company said it would not proceed with an initial public offering of shares of its common stock at this time "due to adverse market conditions." The Company confirms that no shares of its common stock were sold pursuant to the Registration Statement. A full-text copy of the Form RW is available for free at: http://researcharchives.com/t/s?6513 About Solyndra Inc. Headquartered in Fremont, California, Solyndra Inc. -- http://solyndra.com/-- designs and manufactures photovoltaic systems, comprised of panels and mounts, for the commercial rooftop market. Using proprietary cylindrical modules and thin film technology, Solyndra's light weight, non-penetrating systems are designed to provide simple and easy installations and the lowest cost of electricity for typical low slope commercial rooftops. At January 2, 2010, the Company's balance sheet showed $683.2 million in assets, $254.2 million of debts, and $961.3 million in redeemable convertible preferred stock, for a stockholders' deficit of $532.3 million. * * * As reported in the Troubled Company Reporter on April 7, 2010, PricewaterhouseCoopers LLP, following Solyndra Inc.'s financial results for the year ended January 2, 2010, 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, negative cash flows since inception, and stockholder deficit. SOUTH BAY: Imperial Resolves Lender Objection to Retention ---------------------------------------------------------- Per the minutes of a June 10, 2010 hearing, Bankruptcy Judge Louise DeCarl Adler made a tentative ruling on South Bay Expressway, L.P., and California Transportation Ventures, Inc.'s application to employ Imperial Capital LLC. Pursuant to the Engagement Letter, the Debtors proposed to pay Imperial: -- a financial advisory fee of $150,000 per month, payable monthly in advance; -- a cash fee payable upon the closing of a restructuring transaction; and -- if the Debtors ask that Imperial undertake a financing in an amount and under terms as may be agreed between the parties, a cash fee, to be paid out of the proceeds of the financing. Banco Bilbao Vizcaya Argentaria, S.A., as the administrative agent under a Senior Loan Agreement, objected to approval of the success fee. The U.S. Trustee also lodged an objection Among other things, Judge Adler made several inquiries, including the increased amount of the monthly advisory fee, and whether Imperial is still demanding a "transaction success fee." The Court has also stricken Imperial's reply because the document was late-filed. In response to the Court's tentative ruling, Imperial addressed the Court's questions and referred to its reply for certain answers. Imperial also disclosed, among other things, that it is still requesting a merger and acquisition transaction fee in case a transaction is consummated with certain parties, provided in that case, the M&A Transaction Fee would be decreased to 0.6%, instead of 1% of the transaction consideration. Objections Consensually Resolved Imperial's counsel Jeffrey N. Pomerantz, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, California -- jpomerantz@pszjlaw.com -- tells the Court that since the filing of the objections, Imperial has opened up a dialogue with BBVA and the Debtors' prepetition lenders, and the U.S. Trustee to try to consensually resolve the objections. After extensive discussions, Imperial has resolved BBVA's objection by agreeing to: (a) a varying monthly advisor fee, either $150,000 or $200,000 per month depending on the particular month, instead of a single, flat monthly advisor fee of $150,000; and (b) a restructuring transaction fee that will range from $200,000 to a maximum of $600,000, with a minimum fee of $200,000 subject to review under Section 328 of the Bankruptcy Code, and any fee above $200,000 to be subject to review under Section 330 of the Bankruptcy Code. The revised fee structure will result in an overall reduction in fees to Imperial. The other components of Imperial's fees under the Engagement Letter remain unchanged. Mr. Pomerantz informs the Court that Imperial was unable to resolve the U.S. Trustee's objection. He contends that evidence will demonstrate that the Debtors need both restructuring counsel and financial advisors. He insists that Imperial will complement, and not duplicate, services being provided by the Debtors' counsel. Evidence submitted to the Court and which will be presented at the hearing will demonstrate that Imperial's proposed fee structure is well within the range of reasonableness for Chapter 11 cases similar to the Debtors', Mr. Pomerantz further contends, among other things. Pursuant to Rule 201 of the Federal Rules of Evidence and in support of the Application, Imperial asks the Court to take judicial notice of certain documents on file in other bankruptcy cases. Imperial filed with the Court several volumes of those documents, including the application to employ Blackstone Advisory Partners LP as investment banker and financial advisor in the Chapter 11 case of Centaur LLC pending before the Delaware Court. About South Bay Expressway South Bay Expressway, L.P., dba San Diego Expressway, L.P., filed for Chapter 11 on March 22, 2010 (Bankr. S.D. Calif. Case No. 10-04516). Its affiliate, California Transportation Ventures Inc., also filed for bankruptcy. The Debtors developed and operate a four lane, nine mile express toll road in Southern California commonly referred to as the South Bay Expressway or State Road 125. Both estimated assets and debts of $500 million to $1 billion in their bankruptcy petitions. Robert Pilmer, Esq., at Kirkland & Ellis LLP, represents the Debtors in their restructuring effort. PricewaterhouseCoopers LLP is auditor and tax advisor. Imperial Capital LLC is financial advisor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The Debtors say that as of the bankruptcy filing, they have roughly $640 million in book value of total assets and roughly $570 million in book value of total liabilities. Bankruptcy Creditors' Service, Inc., publishes South Bay Expressway Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by South Bay Expressway LP and California Transportation Ventures Inc. (http://bankrupt.com/newsstand/or 215/945-7000). SOUTH BAY: Wins Approval for Kirkland & Ellis as Counsel -------------------------------------------------------- South Bay Expressway, L.P., and its affiliate, California Transportation Ventures Inc., received the Court's permission to employ Kirkland & Ellis LLP as their attorneys in their Chapter 11 cases, nunc pro tunc to the Petition Date and in accordance with an engagement letter dated as of November 3, 2009. Anthony G. Evans, the Debtors' chief financial officer, discloses that K&E began representing the Debtors in November 2009 with respect to a potential restructuring. The Debtors believe that K&E is both well-qualified and uniquely able to represent the Debtors in the Chapter 11 cases in an efficient and timely manner. As counsel, K&E will: (a) advise the Debtors with respect to their powers and duties as debtors-in-possession in the continued management and operation of their businesses and properties; (b) advise and consult on the conduct of the cases, including all of the legal and administrative requirements of operating in Chapter 11; (c) attend meetings and negotiate with representatives of the creditors and other parties-in-interest; (d) take all necessary actions to protect and preserve the estates, including prosecuting actions on their behalf, defending any action commenced against them, and representing them in negotiations concerning litigation in which they are involved, including objections to claims filed against the estates; (e) prepare pleadings in connection with the cases; (f) represent the Debtors in connection with obtaining authority to continue using cash collateral and, if necessary, postpetition financing; (g) advise the Debtors in connection with any potential sale of assets; (h) appear before the Court and any appellate courts to represent the interests of the estates; (i) advise the Debtors regarding tax matters; (j) take any necessary action on behalf of the Debtors to negotiate, prepare, and obtain approval of a disclosure statement and confirmation of a Chapter 11 plan and all related documents; and (k) perform all other necessary legal services for the Debtors in connection with the prosecution of the cases. K&E will be paid based on its hourly rates, and will be reimbursed for its expenses incurred in connection with the retention. K&E's current hourly rates for matters related to Chapter 11 cases are: Billing Category Hourly Range ---------------- ------------ Partners $580 - $995 Of Counsel $435 - $995 Associates $340 - $670 Paraprofessionals $135 - $285 The professionals presently expected to have primary responsibility for providing services to the Debtors are: Professional Hourly Rate ------------ ----------- James H.M. Sprayregen $995 Marc Kieselstein $935 R. Alexander Pilmer $725 Chad J. Husnick $640 Mr. Evans reveal that the Debtors paid $200,000 to K&E as a classic retainer on January 26, 2010. On March 9, 2010, the Debtors paid $30,000 to K&E to increase the retainer, and, on March 22, 2010, the Debtors paid $50,000 to K&E to further increase the retainer. As of the Petition Date, the retainer balance was approximately $280,000. As of the Petition Date, Mr. Evans says, the Debtors did not owe K&E any amounts for legal services rendered before the Petition Date. Although certain expenses and fees have been incurred prepetition and have been or will be applied to K&E's classic retainer, he assures the Court that the amounts are less than the balance of K&E's classic retainer as of the Petition Date. Marc Kieselstein, P.C., Esq., a partner at K&E assures Judge Adler that K&E is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About South Bay Expressway South Bay Expressway, L.P., dba San Diego Expressway, L.P., filed for Chapter 11 on March 22, 2010 (Bankr. S.D. Calif. Case No. 10-04516). Its affiliate, California Transportation Ventures Inc., also filed for bankruptcy. The Debtors developed and operate a four lane, nine mile express toll road in Southern California commonly referred to as the South Bay Expressway or State Road 125. Both estimated assets and debts of $500 million to $1 billion in their bankruptcy petitions. Robert Pilmer, Esq., at Kirkland & Ellis LLP, represents the Debtors in their restructuring effort. PricewaterhouseCoopers LLP is auditor and tax advisor. Imperial Capital LLC is financial advisor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The Debtors say that as of the bankruptcy filing, they have roughly $640 million in book value of total assets and roughly $570 million in book value of total liabilities. Bankruptcy Creditors' Service, Inc., publishes South Bay Expressway Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by South Bay Expressway LP and California Transportation Ventures Inc. (http://bankrupt.com/newsstand/or 215/945-7000). SPIRIT CREEK: Case Summary & 6 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Spirit Creek Development Inc 4302 East Barcelona Way Augusta, GA 30906 Bankruptcy Case No.: 10-11400 Chapter 11 Petition Date: June 16, 2010 Court: United States Bankruptcy Court Southern District of Georgia (Augusta) Debtor's Counsel: James T. Wilson, Jr., Esq. 945 Broad St., Ste 220 P.O. Box 2112 Augusta, GA 30903 Tel: (706) 722-4933 Fax: (706) 722-0472 E-mail: pam@jtwilsonlaw.com Scheduled Assets: $17,362,640 Scheduled Debts: $6,290,416 The petition was signed by Henry Forero, company's president. Debtor's List of 6 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Peter Vila Security Agreement $110,000 4841 NW 111 Ave Miami, FL 33178 Construction Management Security Agreement $100,000 Engineering Corp 1600 SW 127 Street Miami, FL 33156 Bank of America $80,000 PO Box 15019 Wilmington, DE 19886-5019 Carol Gould & Associates Security Agreement $60,000 Augusta-Richmond County $55,397 Bank of America $20,000 SPOT MOBILE: Posts $576,000 Net Loss for April 30 Quarter --------------------------------------------------------- Spot Mobile International Ltd., formerly Rapid Link Incorporated, $575,885 net loss on $4.4 million of revenue for the three months ended April 30, 2010, compared with $168,686 net loss on $5.7 million of revenue for the same period a year ago. The Company's balance sheet at April 30, 2010, showed $1.3 million in total assets and $4.9 million in total liabilities, for stockholders' deficit of $3.6 million. A full-text copy of the Company's Form 10-Q is available for free at http://ResearchArchives.com/t/s?6512 About Rapid Link Rapid Link Incorporated -- http://www.rapidlink.com/-- is a telecommunications services company which, through its wholly owned subsidiary, provides prepaid telecommunication and transaction based point of sale activation solutions through 1,000 independent retailers in the Eastern United States. The Company also provides long distance services and plans to expand its product offering to include mobile and wireless services. KBA GROUP LLP in Dallas, Texas, expressed substantial doubt about Rapid Link's ability to continue as a going concern after auditing the Company's financial statements as of October 31, 2008. The auditor noted the Company has suffered recurring losses from continuing operations during the last two fiscal years. At October 31, 2008, the Company's current liabilities exceeded its current assets by $2.1 million and the Company has a shareholders' deficit totaling $2.9 million. STEAMBOAT CITY: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Steamboat City Development Company, LP 7807 Baymeadows Road East Jacksonville, FL 32256 Tel: (904) 260-8472 Bankruptcy Case No.: 10-20778 Chapter 11 Petition Date: June 16, 2010 Court: United States Bankruptcy Court Southern District of Georgia (Brunswick) Debtor's Counsel: James L. Drake, Jr., Esq. P.O. Box 9945 Savannah, GA 31412 Tel: (912) 790-1533 E-mail: jdrake7@bellsouth.net Scheduled Assets: $9,612,311 Scheduled Debts: $7,714,666 A list of the Company's 8 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/gasb10-20778.pdf The petition was signed by William G. Pitts, WG Pitts Wildlife, Dev. Co., LLC, general partner. SUN HEALTHCARE: Bank Debt Trades at 4% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Sun Healthcare Group is a borrower traded in the secondary market at 96.25 cents- on-the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.75 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on April 19, 2014, and carries Moody's Ba2 rating and Standard & Poor's B+ rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Sun Healthcare Group, Inc., -- http://www.sunh.com/-- provides nursing, rehabilitative and related specialty healthcare services principally to the senior population in the United States. Its core business is providing inpatient services, primarily through 183 skilled nursing centers, 14 assisted and independent living centers and eight mental health centers. As of Dec. 31, 2009, the Company's centers had 23,205 licensed beds located in 25 states, of which 22,423 were available for occupancy. The Company's subsidiary engages in three business segments: inpatient services, primarily skilled nursing centers; rehabilitation therapy services, and medical staffing services. SUNGARD DATA: 2016 Debt Trades at 5% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which SunGard Data Systems, Inc., is a borrower traded in the secondary market at 94.98 cents-on-the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 1.52 percentage points from the previous week, The Journal relates. The Company pays 362.5 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 28, 2016, and carries Moody's Ba3 rating and Standard & Poor's BB rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. SunGard Data Systems, Inc., headquartered in Wayne, Pennsylvania, is a provider of software and IT services to the financial services industry well as higher education institutions and the public sector. SunGard also provides disaster recovery/business continuity services through its Availability Services division. As stated by the Troubled Company Reporter on Sept. 1, 2009, Moody's Investors Service affirmed SunGard's 'B2' corporate family and probability of default ratings, along with its SGL-2 speculative grade liquidity rating. Standard & Poor's Ratings Services rates (i) SunGard's corporate rating at 'B+', and its (ii) $2.7 billion tranche B secured term loan maturing Feb. 28, 2016, and the $580 million secured revolving credit facility maturing May 11, 2013, at 'BB'. SUNGARD DATA: 2014 Debt Trades at 6% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which SunGard Data Systems, Inc., is a borrower traded in the secondary market at 93.75 cents-on-the-dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.88 percentage points from the previous week, The Journal relates. The Company pays 375 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 28, 2014, and carries Moody's Ba3 rating and Standard & Poor's BB rating. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. SunGard Data Systems, Inc., headquartered in Wayne, Pennsylvania, is a provider of software and IT services to the financial services industry well as higher education institutions and the public sector. SunGard also provides disaster recovery/business continuity services through its Availability Services division. As stated by the Troubled Company Reporter on Sept. 1, 2009, Moody's Investors Service affirmed SunGard's 'B2' corporate family and probability of default ratings, along with its SGL-2 speculative grade liquidity rating. Standard & Poor's Ratings Services rates (i) SunGard's corporate rating at 'B+', and its (ii) $2.7 billion tranche B secured term loan maturing Feb. 28, 2016, and the $580 million secured revolving credit facility maturing May 11, 2013, at 'BB'. SUNOVIA ENERGY: Delays Filing of Form 10-Q for April 30 Quarter --------------------------------------------------------------- In a regulatory filing Tuesday, Sunovia Energy Technologies, Inc., discloses that the Company's Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2010, cannot be filed within the prescribed time period because the Company requires additional time for compilation and review to insure adequate disclosure of certain information required to be included in the Form 10-Q. The Company's Quarterly Report on Form 10-Q will be filed on or before the 5th calendar day following the prescribed due date. About Sunovia Energy Sarasota, Fla.-based Sunovia Energy Technologies, Inc. is developing, designing, and integrating photovoltaic solar cells into products for incident management, energy efficient advertising, and low-cost durable solar modules for easy installation and incremental upgrading of capacity. The Company is also developing and selling environmentally responsible, energy efficient lighting products that are based on the latest and most efficient light emitting diode (LED) technologies. The Company's balance sheet as of January 31, 2010, showed $7,456,220 in assets, $2,602,961 of debts, and $4,853,259 of stockholders' equity. * * * As reported in the Troubled Company Reporter on March 25, 2010, Bobbitt, Pittenger & Company, P.A., in Sarasota, Fla., expressed substantial doubt about the Company's ability to continue as a going concern after reviewing the Company's consolidated financial statements for the three and six months ended January 31, 2010, and 2009. The independent auditors noted that of the Company's losses of $8,028,744 and $6,395,450 for the six months ended January 31, 2010, and 2009, respectively. SUZANNE LOBATO: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Suzanne Lobato 1740 Brighton Dr. Hollister, CA 95023 Bankruptcy Case No.: 10-56288 Chapter 11 Petition Date: June 16, 2010 Court: United States Bankruptcy Court Northern District of California (San Jose) Judge: Roger L. Efremsky Debtor's Counsel: Michael H. Luu, Esq. Law Offices of Michael H. Luu 1340 Tully Rd. #309 San Jose, CA 95122 Tel: (408) 425-6221 E-mail: mikeluu63@yahoo.com Scheduled Assets: $718,963 Scheduled Debts: $1,111,049 A list of the Company's 6 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb10-56288.pdf The petition was signed by Suzanne Lobato. SYNTAX-BRILLIAN: Trust to Settle 2 Suits Against Execs for $3M -------------------------------------------------------------- Looking to prevent insurance proceeds from being completely drained by legal fees, the liquidation trust in Syntax-Brillian Corp.'s bankruptcy case has entered into a $3 million deal that would resolve two suits against several of the television maker's former directors and officers, Bankruptcy Law360 reports. Law360 says SB Liquidation Trust filed a motion Wednesday asking the U.S. Bankruptcy Court for the District of Delaware to approve an assignment agreement among the trust, the company officials and Silver. Based in Tempe, Arizona, Syntax-Brillian Corporation (Nasdaq:BRLC) -- www.syntaxbrillian.com -- manufactures and markets LCD HDTVs, digital cameras, and consumer electronics products include Olevia(TM) brand high-definition widescreen LCD televisions and Vivitar brand digital still and video cameras. Syntax-Brillian is the sole shareholder of California-based Vivitar Corporation. The company and two of its affiliates -- Syntax-Brillian SPE, Inc., and Syntax Groups Corp. -- filed for Chapter 11 protection on July 8, 2008 (Bankr. D. Delaware Lead Case No.08-11409 through 08-11409. Dennis A. Meloro, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig LLP, represent the Debtors in their restructuring efforts. The U.S. Trustee for Region 3 has yet to appoint creditors to serve on an Official Committee of Unsecured Creditors. When the Debtors filed for protection against their creditors, they listed total assets of $175,714,000 and total debts of $259,389,000. TENET HEALTHCARE: Moody's Upgrades Corporate Family Rating to 'B2' ------------------------------------------------------------------ Moody's Investors Service upgraded the Corporate Family and Probability of Default Ratings of Tenet Healthcare Corporation to B2 from B3. Moody's also upgraded the rating on Tenet's senior secured revolver to Ba2 (LGD1, 3%) from Ba3 (LGD1, 3%), senior secured notes to B1 (LGD3, 37%) from B2 (LGD3, 35%) and senior unsecured notes to Caa1 (LGD5, 85%) from Caa2 (LGD5, 84%). The ratings outlook is stable. "The upgrade of Tenet's ratings reflects continued improvement in operating results, which was further supported by the company's recent announcement raising 2010 adjusted EBITDA guidance," said Dean Diaz, Moody's VP -- Senior Credit Officer. "We believe that leverage levels will continue to modestly improve based on EBITDA growth and Moody's expect that the company will likely see positive free cash flow for the full year ending December 31, 2010 aided in part by the ending of settlement payments in the third quarter," continued Diaz. However, the ratings also consider the significant headwinds facing the company, and the sector as a whole, with respect to the cost of uncompensated care, weak volume trends and changes in mix as commercial volumes decline. Additionally, the company has yet to show evidence that it can meaningfully reduce its debt burden with cash flow from operations. This is a summary of Moody's rating actions. Ratings upgraded: -- $800 million senior secured revolving credit facility due 2011, to Ba2 (LGD1, 3%) from Ba3 (LGD1, 3%) -- 9.0% senior secured notes due 2015, to B1 (LGD3, 37%) from B2 (LGD3, 35%) -- 10.0% senior secured notes due 2018, to B1 (LGD3, 37%) from B2 (LGD3, 35%) -- 8.875% senior secured notes due 2019, to B1 (LGD3, 37%) from B2 (LGD3, 35%) -- 6 3/8% senior notes due 2011, to Caa1 (LGD5, 85%) from Caa2 (LGD5, 84%) -- 6.5% senior notes due 2012, to Caa1 (LGD5, 85%) from Caa2 (LGD5, 84%) -- 7 3/8% senior notes due 2013, to Caa1 (LGD5, 85%) from Caa2 (LGD5, 84%) -- 9 7/8% senior notes due 2014, to Caa1 (LGD5, 85%) from Caa2 (LGD5, 84%) -- 9 1/4% senior notes due 2015, to Caa1 (LGD5, 85%) from Caa2 (LGD5, 84%) -- 6 7/8% senior notes due 2031, to Caa1 (LGD5, 85%) from Caa2 (LGD5, 84%) -- Corporate Family Rating, to B2 from B3 -- Probability of Default Rating, to B2 from B3 Ratings affirmed: -- Speculative Grade Liquidity Rating, SGL-2 Moody's last rating action was on September 25, 2009, when the rating outlook was changed to positive and the rating on the company's senior secured notes was downgraded to B2 (LGD3, 35%) from B1 (LGD3, 32%). All other ratings were affirmed. Tenet, headquartered in Dallas, TX, is one of the largest for- profit hospital operators by revenues. At March 31, 2010, the company operated 50 general hospitals (including one hospital not yet divested and included in discontinued operations) and a critical access hospital in 12 states. Tenet generated revenue from continuing hospital operations of approximately $9.1 billion for the 12 months ended March 31, 2010. TEXAS CLASSIC: Chapter 11 Case Converted to Chapter 7 ----------------------------------------------------- American Bankruptcy Institute reports that bankruptcy Judge Jeff Bohm, at the request of the U.S. Trustee's office, converted homebuilder Texas Classic Builders LP's chapter 11 proceeding to a chapter 7 liquidation. TERESA JOHNSON: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Teresa P. Johnson 3604 Cameron Court Ellicott City, MD 21042 Bankruptcy Case No.: 10-23633 Chapter 11 Petition Date: June 17, 2010 Court: United States Bankruptcy Court District of Maryland (Baltimore) Judge: Nancy V. Alquist Debtor's Counsel: James C. Olson, Esq. 10451 Mill Run Circle Suite 400 Owings Mills, MD 21117 Tel: (410) 356-8852 Fax: (410) 356-8804 E-mail: jcolson@email.msn.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 filed together with the petition is available for free at http://bankrupt.com/misc/mdb10-23633.pdf The petition was signed by Teresa P. Johnson. TIME PROPERTIES: Case Summary & 10 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Time Properties, Inc. 1001 N. Milwaukee Ave., Ste 400 Chicago, IL 60642 Bankruptcy Case No.: 10-27236 Chapter 11 Petition Date: June 17, 2010 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: A. Benjamin Goldgar Debtor's Counsel: Joy L. Monahan, Esq. Wildman Harrold 225 West Wacker Drive Chicago, IL 60606 Tel: (312) 201-2162 E-mail: monahan@wildman.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb10-27236.pdf The petition was signed by Aneta Korzec, authorized signatory. TIMOTHY SHEEHAN: Voluntary Chapter 11 Case Summary -------------------------------------------------- Joint Debtors: Timothy Patrick Sheehan Jody Lyn Sheehan 572 East Kesley Lane Saint Johns, FL 32259 Bankruptcy Case No.: 10-05248 Chapter 11 Petition Date: June 17, 2010 Court: United States Bankruptcy Court Middle District of Florida (Jacksonville) Judge: Jerry A. Funk Debtor's Counsel: Brett A Mearkle, Esq. Parker & Dufresne, P.A. 8777 San Jose Blvd Suite 301 Jacksonville, FL 32217 Tel: (904) 733-7766 Fax: (904) 733-2919 E-mail: bmearkle@jaxlawcenter.com Scheduled Assets: $928,014 Scheduled Debts: $1,409,125 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Timothy Patrick Sheehan and Jody Lyn Sheehan. TRIBUNE CO: Bank Debt Trades at 39% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Tribune Co. is a borrower traded in the secondary market at 61.32 cents-on-the- dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.82 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility, which matures on May 17, 2014. Moody's has withdrawn its rating while Standard & Poor's does not rate the bank debt. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. 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) TRICO MARINE: Board Approves Salary Hike of Two Officials --------------------------------------------------------- At the annual meeting of shareholders, the stockholders of Trico Marine approved increases to the salaries and incentive bonus plan targets of Richard Bachmann, chairman and interim chief executive officer, and Rishi Vama, president and chief operating officer. The Company's stockholders also approved the proposed amendments to the Company's Second Amended and Restated Certificate of Incorporation, as amended: i) increasing the authorized number of shares of the Company's common stock from 50,000,000 to 100,000,000 shares; and ii) declassifying the Company's Board of Directors. Woodlands, Texas-based Trico Marine Services is a provider of support vessels for the offshore oil and natural-gas industry. At March 31, 2010, the Company had total assets of $1,013,628,000 against total liabilities of $985,940,000. TRICO MARINE: Shipping Unit Has Deal to Sell $50-Mil. in Notes -------------------------------------------------------------- Trico Shipping AS on June 16, 2010, entered into a commitment letter with certain holders -- the Financing Parties -- of 11.875% senior secured notes due 2014. Pursuant to the Commitment Letter, the Financing Parties committed, subject to various conditions, including the negotiation of acceptable documentation, to purchase additional Shipping Notes up to an aggregate principal amount of $50 million. The Commitment Letter obligates the Company to pay (i) a commitment fee in an amount equal to 2.0% of the aggregate commitment, and (ii) a closing fee in an amount equal to 2.0% of the aggregate commitment, as well as certain expenses. The commitment expires if the Additional Notes are not issued on or before 5:00 PM EST on July 7, 2010, subject to the satisfaction of all closing conditions thereto. The Additional Notes, if issued, would accrue interest at a rate of 15% per annum. Interest on such Additional Notes would be payable semi-annually in cash in arrears on each May 1 and November 1, commencing on November 1, 2010. The Additional Notes would mature on November 1, 2014. About Trico Marine Woodlands, Texas-based Trico Marine Services is a provider of support vessels for the offshore oil and natural-gas industry. At March 31, 2010, the Company had total assets of $1,013,628,000 against total liabilities of $985,940,000. Trico Marine has failed to make the $8.0 million interest payment on $202.8 million in aggregate principle amount of its 8.125% secured convertible debentures due 2013. On June 17, 2010, the 30-day grace period permitted under the 8.125% Indenture expired, triggering an Event of Default. The Troubled Company Reporter on June 16, 2010, said Trico Marine has signed a revised loan agreement on June 11 requiring the company to file under Chapter 11 no later than Sept. 8. The agreement with affiliates Tennenbaum Capital Partners LLC provides for converting the existing $25 million revolving credit commitment into a $25 million term loan commitment. Nordea Bank Finland plc, New York Branch, as collateral agent, Obsidian Agency Services, Inc., as administrative agent, also signed the agreement. As reported by the TCR on June 15, 2010, Trico said that it and Evercore Partners are in discussions with various potential lenders and some of the Company's existing debtholders regarding obtaining additional financing in connection with a possible proceeding under Chapter 11 of the Bankruptcy Code. TRICO MARINE: Shipping Unit Wins Short Forbearance -------------------------------------------------- Trico Marine Services Inc.'s failure to make an $8.0 million interest payment due May 15, 2010, triggers an event of default under Trico Shipping SA's Working Capital Facility, dated October 30, 2009. Trico Shipping has entered into a Forbearance Agreement with the lenders under the Trico Shipping Working Capital Facility. The lenders have agreed not to accelerate the outstanding indebtedness or exercise any rights and remedies with regard to the guaranties or the collateral so long as, and subject to certain other conditions, the 8.125% Notes have not been accelerated. The Forbearance Agreement will remain in effect until June 21, 2010 or, if Trico Marine receives a satisfactory forbearance agreement from the holders of the 8.125% Notes, until July 14, 2010. Trico Marine has failed to make the $8.0 million interest payment on $202.8 million in aggregate principle amount of its 8.125% secured convertible debentures due 2013 issued by the Company under an Indenture, dated as of May 14, 2009, with U.S. Bank National Association (as successor trustee to Wells Fargo Bank, National Association), as Trustee. On June 17, 2010, the 30-day grace period permitted under the 8.125% Indenture expired, triggering an Event of Default. Pursuant to the Intercreditor Agreement dated May 14, 2009, the Trustee is prevented from accelerating payment on the Notes until the repayment in full of the obligations under Trico Marine's Second Amended and Restated Credit Agreement dated June 11, 2010, with Nordea Bank Finland plc, New York Branch as Collateral Agent and Obsidian Agency Services, Inc., as Administrative Agent. Trico Marine said in a regulatory filing on Friday that it was negotiating with the lenders under the Trico Shipping Working Capital Facility to obtain another forbearance and amendment to such facility on substantially the same terms as the Support Agreement and amendments described above with regard to the Shipping Notes and the Shipping Indenture. Under this additional forbearance, the lenders under the Trico Shipping Working Capital Facility would not have the ability during the applicable forbearance period to accelerate the outstanding indebtedness under the Trico Shipping Working Capital Facility even if the 8.125% Notes were accelerated. However, unless and until the Working Capital Forbearance is executed, if the 8.125% Notes are accelerated, then the lenders under the Trico Shipping Working Capital Facility have the ability to accelerate the outstanding indebtedness under the Trico Shipping Working Capital Facility. Changes to Shipping Notes Sought Trico Shipping is preparing to solicit consents from holders of the Shipping Notes to (i) modify certain covenants, defaults, remedies, definitions and related provisions contained in the indenture, dated as of October 30, 2009, among Trico Shipping, as issuer, the guarantors and Deutsche Bank National Trust Company (as successor trustee to Wells Fargo Bank, N.A.), as trustee thereunder, pursuant to which the Shipping Notes were issued and (ii) waive certain defaults and events of default and rescind any acceleration of principal or interest under the Shipping Indenture related thereto in the event that certain defaults of the notes have occurred prior to the Proposed Amendments becoming operative. Among other things, Trico Shipping proposes that the events of default will be amended to exclude a bankruptcy by parent Trico Marine, Trico Holdco, LLC and/or Trico Marine Cayman, L.P., from constituting a default during the Forbearance Period. The "Forbearance Period" is the period beginning at 12:01 AM EST on June 17, 2010 and ending on the earlier to occur of (i) one year following such date and (ii) the effective date of a plan of reorganization for a Parent Entity in a Parent Bankruptcy. Trico Shipping also seeks permission to issue up to $65 million principal amount of additional notes. The additional notes will be identical to the originally issued Shipping Notes except, notwithstanding anything in the Shipping Indenture to the contrary, that the interest rate and the amount payable on such additional notes on the first interest payment date may differ, and if there are such differences, such additional notes will be treated as a separate series of notes for purposes of registration or ownership and transfer upon exchange or otherwise. Trico Shipping also proposes that the current $50 million secured credit facility basket will be increased to $65 million reduced by the principal amount of notes repurchased by Trico Shipping; provided, however, that such note repurchases will not reduce the indebtedness that may be incurred pursuant to this basket below $50 million. The $65 million in aggregate principal amount of additional notes that may be issued from time to time in addition to the notes issued on October 30, 2009 (or in exchange therefore) will be reduced by the aggregate principal amount of additional indebtedness and letters of credit incurred and outstanding under the secured credit facility basket. Flexibility will be added to permit the issuance of up to $15 million of cash collateralized letters of credit. Trico Shipping Wins Support Agreement On June 16, 2010, in connection with the proposed Consent Solicitation, Trico Marine, Trico Shipping, subsidiaries of Trico Shipping that guarantee the Shipping Notes and certain holders of, or legal or beneficial owners of, or the investment manager with discretionary authority with respect to -- Consenting Holders -- a majority of the outstanding principal amount of the Shipping Notes, entered into a Support Agreement. Each Consenting Holder agrees (i) to use commercially reasonable efforts to cause its consent to be tendered to the trustee under the Shipping Indenture promptly upon its receipt of the statement relating to the Consent Solicitation and related material in accordance with the Consent Solicitation Statement, and (ii) to not revoke such consent. Each Consenting Holder also agreed not to pursue any right or remedy against the Company under applicable law, the Shipping Notes or the Shipping Indenture or to initiate, or have initiated on its behalf, any litigation or proceedings of any kind with respect to the Shipping Notes, other than to enforce the Support Agreement. If the Consenting Holders have not breached the Support Agreement and the Proposed Amendments fail to become operative on or prior to July 1, 2010, then Trico Marine, Trico Shipping and the Guarantors agreed to pay a forbearance fee of $5.00 per $1,000 principal amount of Shipping Notes held or beneficially owned by the Consenting Holders, on or before July 31, 2010. If the supplemental indenture containing the Proposed Amendments becomes operative and the Consenting Holders receive the consent payment or become entitled to receive the consent payment, such Consenting Holders will not be entitled to receive the forbearance fee provided for in the Support Agreement. On June 11, 2010, at the request of Wells Fargo Bank, N.A., Trico Marine, Wells Fargo and Deutsche Bank National Trust Company executed an Instrument of Resignation, Appointment and Acceptance pursuant to which Wells Fargo resigned as trustee, paying agent and registrar under the indenture governing the Shipping Notes and Deutsche Bank was appointed by the Company, as successor trustee, paying agent and registrar. The Company, Wells Fargo and U.S. Bank National Association separately executed an Instrument of Resignation, Appointment and Acceptance pursuant to which Wells Fargo resigned as trustee, paying agent and registrar under the indenture governing the 8.125% Notes and U.S. Bank was appointed by the Company, as successor trustee, paying agent and registrar. The appointment as successor trustee was effective June 11, 2010. About Trico Marine Woodlands, Texas-based Trico Marine Services is a provider of support vessels for the offshore oil and natural-gas industry. At March 31, 2010, the Company had total assets of $1,013,628,000 against total liabilities of $985,940,000. The Troubled Company Reporter on June 16, 2010, said Trico Marine has signed a revised loan agreement on June 11 requiring the company to file under Chapter 11 no later than Sept. 8. The agreement with affiliates Tennenbaum Capital Partners LLC provides for converting the existing $25 million revolving credit commitment into a $25 million term loan commitment. Nordea Bank Finland plc, New York Branch, as collateral agent, Obsidian Agency Services, Inc., as administrative agent, also signed the agreement. As reported by the TCR on June 15, 2010, Trico said that it and Evercore Partners are in discussions with various potential lenders and some of the Company's existing debtholders regarding obtaining additional financing in connection with a possible proceeding under Chapter 11 of the Bankruptcy Code. TRONOX INC: Lenders Extend Deadline on $425M Bankruptcy Financing ----------------------------------------------------------------- Tronox Inc. struck a deal with its lenders to extend a $425 million bankruptcy loan that will allow the chemical company to avoid facing a possible liquidation after acknowledging that it will miss a key June 24 loan deadline, according to American Bankruptcy Institute. About Tronox Inc. Tronox Inc., aka New-Co Chemical, Inc., and 14 other affiliates filed for Chapter 11 protection on January 13, 2009 (Bankr. S.D.N.Y. Case No. 09-10156). The case is before Hon. Allan L. Gropper. Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Colin M. Adams, Esq., at Kirkland & Ellis LLP in New York, represent the Debtors. The Debtors also tapped Togut, Segal & Segal LLP as conflicts counsel; Rothschild Inc. as investment bankers; Alvarez & Marsal North America LLC, as restructuring consultants; and Kurtzman Carson Consultants serves as notice and claims agent. An official committee of unsecured creditors and an official committee of equity security holders have been appointed in the cases. The Creditors Committee has retained Paul, Weiss, Rifkind, Wharton & Garrison LLP as counsel. Until September 30, 2008, Tronox Inc. was publicly traded on the New York Stock Exchange under the symbols TRX and TRX.B. Since then, Tronox Inc. has traded on the Over the Counter Bulletin Board under the symbols TROX.A.PK and TROX.B.PK. As of December 31, 2008, Tronox Inc. had 19,107,367 outstanding shares of class A common stock and 22,889,431 outstanding shares of class B common stock. Bankruptcy Creditors' Service, Inc., publishes Tronox Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Tronox Inc. and its 14 affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) UAL CORP: Stockholders Elect 7 Directors at Meeting --------------------------------------------------- In a regulatory filing with the U.S. Securities and Exchange Commission on June 10, 2010, UAL Corporation reported the voting results of certain proposals submitted to the stockholders at the annual meeting of stockholders held June 10, 2010. Specifically, UAL's stockholders elected 11 directors to the Company's board of directors. They are: (1) Richard J. Almeida (2) Mary K. Bush (3) W. James Farrell (4) Jane C. Garvey (5) Walter Isaacson (6) Robert D. Krebs (7) Robert S. Miller (8) James J. O'Connor (9) Glenn F. Tilton (10) David J. Vitale (11) John W. Walker In addition, the United Air Lines Pilot Master Executive Council of the Air Line Pilots Association, International, the holder of UAL's one share of Class Pilot MEC Junior Preferred Stock, elected Wendy J. Morse as the ALPA director; and the International Association of Machinists and Aerospace Workers, the holder of UAL's one share of Class IAM Junior Preferred Stock, elected Stephen R. Canale as the IAM director. UAL's stockholders also approved the amendment of the company's Restated Certificate of Incorporation to extend the 5% ownership limit. * * * At the stockholders meeting, Mr. Tilton, chairman, president and chief executive officer of UAL, related that improvements have been made across every key element of the company's business. "We are a dramatically improved airline, a credit to the work going on across the company, and to our people," he said, according to a Form 425 filed with the SEC on June 11, 2010. Kathryn Mikells, UAL executive vice president and chief financial officer, further stressed that sufficient profitability is necessary not only to generate returns for shareholders, but also to de-lever the company's balance sheet, to invest in better products for its customers and to create stability for its people. Regarding the proposed merger with Continental Airlines, John Tague, president of United, told stockholders that UAL's commitment is clear: to produce a fully competitive United Airlines while playing a leadership role in creating a leadership role in creating changes in the industry that will be necessary to meet the company's financial objective. About UAL Corporation Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The Company filed for Chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors. Judge Eugene R. Wedoff confirmed a reorganization plan for United on Jan. 20, 2006. The Company emerged from bankruptcy on Feb. 1, 2006. Reorganized UAL Corp. carries a 'Caa1' probability of default rating from Moody's, 'B-' long term foreign issuer credit rating from Standard & Poor's, and 'CCC' long term issuer default rating from Fitch. UAL CORP: United Reports May 2010 Traffic Results ------------------------------------------------- United Air Lines, Inc., reported its preliminary consolidated traffic results for May 2010. Total consolidated revenue passenger miles (RPMs) increased in May by 7.5% on an increase of 3.3% in available seat miles (ASMs) compared with the same period in 2009. This resulted in a reported May consolidated passenger load factor of 83.3%, an increase of 3.3 points compared to 2009. For May 2010, consolidated passenger revenue per available seat mile (PRASM) is estimated to have increased 25.5% to 26.5% year over year. Consolidated PRASM is estimated to have increased 3.2% to 4.2% for May 2010 compared to May 2008, 2.2 percentage points of which were due to growth in ancillary revenues. United reported a U.S. Department of Transportation on-time arrival rate of 84.8% in May. Average May 2010 mainline fuel price, including gains or losses on settled fuel hedges and excluding non-cash, mark-to- market fuel hedge gains and losses, is estimated to be $2.45 per gallon. Including non-cash, mark-to-market fuel hedge gains and losses, the estimated fuel price is $2.91 per gallon for the month. 2010 2009 Percent May May Change ----- ----- ------- Revenue passenger miles ('000) North America 4,861,568 4,909,327 (1.0%) Pacific 1,956,345 1,684,789 16.1% Atlantic 1,767,767 1,627,872 8.6% Latin America 253,291 178,022 42.3% Total International 3,977,403 3,490,683 13.9% Total Mainline 8,838,971 8,400,010 5.2% Regional Affiliates 1,417,595 1,140,062 24.3% Total Consolidated 10,256,566 9,540,072 7.5% Available seat miles ('000) North America 5,680,834 5,787,242 (1.8%) Pacific 2,395,091 2,388,797 0.3% Atlantic 2,115,651 2,020,555 4.7% Latin America 333,196 274,157 21.5% Total International 4,843,938 4,683,509 3.4% Total Mainline 10,524,772 10,470,751 0.5% Regional Affiliates 1,784,477 1,450,233 23.0% Total Consolidated 12,309,249 11,920,984 3.3% Load factor North America 85.6% 84.8% 0.8 pts Pacific 81.7% 70.5% 11.2 pts Atlantic 83.6% 80.6% 3.0 pts Latin America 76.0% 64.9% 11.1 pts Total International 82.1% 74.5% 7.6 pts Total Mainline 84.0% 80.2% 3.8 pts Regional Affiliates 79.4% 78.6% 0.8 pts Total Consolidated 83.3% 80.0% 3.3 pts Revenue passenger boarded ('000) Mainline 4,662 4,744 (1.7%) Regional Affiliates 2,456 2,148 14.3% Total Consolidated 7,118 6,892 3.3% Cargo ton miles ('000) Freight 167,241 113,733 47.0% Mail 14,780 16,350 (9.6%) Total Mainline 182,021 130,083 39.9% GAAP To Non-GAAP Reconciliations Pursuant to SEC Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis. Since the Company did not apply cash flow hedge accounting prior to April 1, 2010, the Company believes that the net fuel hedge adjustments provide management and investors with a better perspective of its performance and comparison to its peers because the adjustments reflect the economic fuel cost during the periods presented and many of our peers apply cash flow hedge accounting. The non-cash mark-to-market gain/loss adjustment includes the reversal of prior period non-cash mark-to-market gain/loss related to May hedge settlements and May mark-to-market gain/loss related to hedges that will settle in June 2010, which were not designated as cash flow hedges. May 2010 --------- Mainline fuel price per gallon excluding non-cash, net mark-to-market gains and losses $2.45 Add: Non-cash, net mark-to-market (gains) and losses per gallon 0.46 --------- Mainline fuel price per gallon $2.91 ========= About UAL Corporation Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The Company filed for Chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors. Judge Eugene R. Wedoff confirmed a reorganization plan for United on Jan. 20, 2006. The Company emerged from bankruptcy on Feb. 1, 2006. Reorganized UAL Corp. carries a 'Caa1' probability of default rating from Moody's, 'B-' long term foreign issuer credit rating from Standard & Poor's, and 'CCC' long term issuer default rating from Fitch. UNIFRAX I: Moody's Upgrades Corporate Family Rating to 'B3' ----------------------------------------------------------- Moody's upgraded Unifrax I LLC's Corporate Family Rating to B3 from Caa1 and the ratings on the $50 million revolving credit facility and the Term Loan B to B1 from B2. The upgrade reflects the improvement in the company's operating performance, which Moody's expect to continue as the U.S. and European economies recover. The rating outlook is positive. This summarizes the ratings activity: Ratings upgraded: Unifrax I LLC * Corporate Family Rating -- B3 from Caa1 * Probability of Default Rating -- B3 from Caa1 * $50mm Gtd Sr Sec Revolver due 2012 -- B1 (LGD2, 27%) from B2 (LGD2, 28%) * $180mm Gtd Sr Sec Term Loan B due 2013 -- B1 (LGD2, 27%) from B2 (LGD2, 28%) * Outlook: Positive The upgrade in the CFR, reflects the improvement in Unifrax's operations, stronger profitability and an increased EBITDA cushion with regard to its financial covenants. All of Unifrax's major businesses -- Industrial Thermal Management, Emissions Control and Specialty Applications -- have seen an improvement in volumes in the past year, while pricing has remained fairly stable. Gross margins have expanded due to the operating leverage realized with higher production volumes and benefited from restructuring actions taken during the downturn. Profitability has yet to return to pre-economic crisis levels and are expected to grow if industrial markets and vehicle sales in the U.S. and Europe rebound further. The company is also expected to benefit from its expansion in the faster growing emerging markets of Brazil, Eastern Europe, India and China, where it is growing organically and through acquisitions. Unifrax's liquidity benefits from its large cash balances, its undrawn revolver and expectations for positive free cash flow in 2010. The company is expected to remain in compliance with its financial covenants and benefits from not having any near-term maturities. The positive outlook reflects the improved operating environment, Moody's expectations for a continuation of the current economic recovery in the U.S. and Europe and good liquidity. The company's ratings could be upgraded should its end markets and sales volumes continue to grow, Debt / EBITDA remains below 4.5x and Free Cash Flow / Debt remains above 6% on a sustained basis. Unifrax's size, significant debt (Debt to Sales of >1x), limited operational diversity and unique risks will likely restrict its CFR to the "B" category despite the potential for stronger financial metrics. Moody's most recent announcement concerning the ratings for Unifrax was on August 25, 2009. At that time, Moody's downgraded Unifrax's ratings to reflect expectations for weaker liquidity and operating performance. Unifrax I LLC, based in Niagara Falls, New York, is a leading producer of heat resistant ceramic fiber products, primarily for automotive, fire protection, and industrial furnace-related applications. Revenues were $252 million for the twelve months ended March 31, 2010. UNIVAR NV: Bank Debt Trades at 5% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which Univar N.V. is a borrower traded in the secondary market at 94.65 cents-on-the- dollar during the week ended Friday, June 18, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.65 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 11, 2014, and is not rated by Moody's and Standard & Poor's. The debt is one of the biggest gainers and losers among 184 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Univar N.V. -- http://www.univarcorp.com/-- is one of the largest distributors of industrial chemicals and providers of related services to a diverse set of end markets in the US, Canada and Europe. In April 2007, the company purchased ChemCentral Corporation, the fourth largest chemicals distributor in the US, for a purchase price of about $650 million, which resulted in the combined entities becoming the largest chemicals distributor in North America. The company had pro forma revenues (including ChemCentral Corporation) of $8.3 billion for the LTM ended June 30, 2007. VAN HUNTER: Exclusive Period to File Plan Moved to August 4 ----------------------------------------------------------- The Hon. Brenda T. Rhoades of the U.S. Bankruptcy Court for the Eastern District of Texas extended Van Hunter Development, Ltd.'s exclusive periods to propose and solicit acceptances for the proposed Plan of Reorganization until August 4, 2010; and October 4, respectively. Dallas, Texas-based Van Hunter Development, Ltd, filed for Chapter 11 on January 4, 2010 (Bankr. E.D. Texas Case No. 10- 40052). The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. VISION SOLUTIONS: Moody's Assigns 'B1' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service assigned a B1 corporate family rating to first time issuer Vision Solutions, Inc. Moody's also assigned B1 ratings to Vision's pending senior secured debt facilities. The new debt facilities will be used to finance the acquisition of Double-Take Software, Inc. for $242 million. The ratings outlook is stable. The B1 rating is driven by the company's moderately high leverage (4.2x pro forma for the acquisition and certain cost synergies) balanced by the combined companies strong market positions providing sophisticated recovery and related software for key IBM System i and Windows based server platforms. The combination allows Vision to be one of the few recovery software providers that can provide solutions to mixed IBM Power Systems and Windows server environments. The recovery software market is expected to grow at moderate levels as complexity increases in server environments and a greater proportion of servers implement or upgrade their disaster recovery, replication, data migration and high availability systems. The growing penetration is expected to offset potential shrinking of the System i installed base. IBM's System i line, while an established machine in numerous transaction intensive environments, is not growing as it once was. The ratings also consider the challenges of integrating the Double-Take acquisition, turning around its performance and improving its maintenance renewal rates to bring the business up to industry norms. Vision has made several acquisitions in the last several years and appears to have successfully integrated them, though none have been the size of Double-Take, which is similar size to Vision but with approximately half the EBITDA margin. Vision's rating is on the low end of the B1 rating range given the challenges at Double-Take and the above 4x starting leverage (all ratios include Moody's standard adjustments but prior to preferred stock adjustments). Both companies experienced material declines in license revenue during the downturn but have seen signs of recovery in the most recent quarters on a year over year basis. Double-Take's declines appear to be greater than the industry's although specific recovery industry data is difficult to ascertain. Overall both companies generated strong levels of free cash flow through the downturn driven by the resiliency of their maintenance revenue streams. Pro forma for the transaction, Moody's estimates the combined companies generated greater than 10% free cash flow to debt for the last twelve months ended March 31, 2010 which is reflective of a B1 rating. These ratings were assigned: -- Corporate family rating, B1 -- Probability of default, B2 -- $15 million Senior Secured Revolving Credit facility due 2015, B1, LGD3 (33%) -- $240 million Senior Secured Term Loan due 2016, B1, LGD3 (33%) -- Speculative grade liquidity rating, SGL-2 -- Ratings Outlook, Stable The stable outlook reflects the expectation that revenues for both IBM and Windows systems will grow modestly over the next year and that Vision will be able to make improvements to Double-Take's margins and maintenance renewal levels. The ratings could face downward pressure if the integration does not go as planned or leverage levels are not on track to fall below 4.0x by year end 2010. Vision Solutions, Inc., headquartered in Irvine, CA, is a provider of recovery and related software for IBM Power Systems servers. Vision is majority owned and controlled by the private equity firm, Thoma Bravo. The company had sales of $94 million for the fiscal year ended October 31, 2009. VOUGHT AIRCRAFT: S&P Withdraws 'B' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on Dallas, Texas-based aerospace supplier Vought Aircraft Industries Inc., including the 'B' corporate credit rating, and removed them from CreditWatch, where S&P placed them with positive implications on March 23, 2010. The withdrawal follows the completion of Triumph Group Inc.'s (BB/Negative/--) acquisition of Vought from The Carlyle Group and refinancing of Vought's debt. Vought's $270 million senior unsecured notes due 2011 will be repaid in full at par and cancelled on July 16, 2010, at the expiration of a 30-day notice period. Triumph has deposited funds with the trustee for the notes, along with interest through July 16. S&P will treat this debt as extinguished on its June 30, 2010 balance sheet. WASHINGTON MUTUAL: Judge Delays Hearing on Examiner --------------------------------------------------- Bankruptcy Law360 reports that a federal judge on Thursday postponed consideration of Washington Mutual Inc.'s disclosure statement and a request by shareholders to review a proposed settlement of litigation among the bank, JPMorgan Chase & Co. and the Federal Deposit Insurance Corp. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. The Company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. Washington Mutual Bank was taken over September 25 by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns 100% of the equity in WMI Investment. Weil Gotshal & Manges represents the Debtors as counsel. When WaMu filed for protection from its creditors, it listed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment listed assets of $500,000,000 to $1,000,000,000 with zero debts. Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with responsibility for the litigation. Brian Rosen, Esq., at Weil, Gotshal & Manges LLP served as legal counsel to WMI with responsibility for the Chapter 11 case. Bankruptcy Creditors' Service Inc. publishes Washington Mutual Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Washington Mutual Inc. (http://bankrupt.com/newsstand/or 215/945-7000). WILLIAM WILSON: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Joint Debtors: William Wilson Denise Wilson 5610 Heather Breeze Court Las Vegas, NV 89141 Bankruptcy Case No.: 10-21275 Chapter 11 Petition Date: June 17, 2010 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Charles T. Wright, Esq. Piet & Wright 3130 S. Rainbow Boulevard, Suite 304 Las Vegas, NV 89146 Tel: (702) 566-1212 Fax: (702) 566-4833 E-mail: todd@pietwright.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Debtors say that assets total $1,021,645 while debts total $1,740,546. 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/nvb10-21275.pdf The petition was signed by the Joint Debtors. W.R. GRACE: Has Deal on Harper Insurance Coverage Disputes ---------------------------------------------------------- Harper Insurance Ltd., formerly known as Turegum Insurance Company, severally subscribed to four policies of excess liability insurance that provide or are alleged to provide insurance coverage to Grace. The Subject Policies were issued for the period June 30, 1977 to June 30, 1979, and attach at excess layers ranging from $10 million to $25 million. Harper's several share of the available remaining aggregate limits for the products or completed operations hazards under the Subject Policies total $1,446,153. Harper also severally subscribed to another excess liability policy -- Policy No. 74DD663C -- issued to Grace for the period July 17, 1974 to June 30, 1977. The Policy attaches at $100 million and has remaining products or completed operations aggregate limits of $1,426,500. The Subject Policies, along with Policy No. 74DD663C, are the subject of a prior agreement between Grace and London Market Insurers, dated August 10, 2009, which was approved by this Court on September 9, 2009. Under the London Agreement, Harper agreed to reimburse the Trust, if the Trust is established pursuant to a confirmed Plan, for Harper's several shares of certain Asbestos P1 Claims paid by the Trust. Harper recently approached Grace requesting the opportunity to buy out certain of its obligations under the Subject Policies. The London Agreement expressly contemplates that individual insurance company parties to that agreement may negotiate separate settlement agreements with Grace. Grace has incurred and may incur in the future certain liabilities, expenses and losses arising out of asbestos-related claims, for which Grace seeks coverage under the Subject Policies. Disputes have arisen between Grace and Harper regarding their respective rights and obligations under the Subject Policies with respect to coverage for asbestos-related claims. By this motion, the Debtors ask Judge Fitzgerald to approve the Amended and Restated Settlement Agreement they entered into with Harper, in accordance with Rule 9019 of the Federal Rules of Bankruptcy Procedure. As its salient terms, the Settlement Agreement: * provides for a buy-out of certain of Harper's coverage obligations under the lower-layer Subject Policies at a settlement value that is within the range of Grace's settlements with its other insurers that have been approved by the Court. Harper remains obligated under the London Agreement for reimbursements to the Trust with respect to Policy No. 74DD663C that attaches at $100 million. * benefits the Debtors' estate by, among other things, converting Harper's obligation to make payments over time with respect to the Subject Policies, as claims are submitted by the Trust, to an obligation to make a lump sum payment to Grace of $1,226,000 within 10 days of the execution date of the Agreement. The immediate payment of the substantial sum, among other things, eliminates any collection risk and risk of disputes with respect to Harper's payments under the Subject Policies. * includes a complete, mutual release of claims under the Subject Policies with respect to asbestos Bodily Injury claims that fall within the products aggregate limit of the Subject Policies, as defined in the Agreement. The Agreement does not release Harper from claims for coverage for non-products asbestos-related claims. 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) W.R. GRACE: Has Deal on North Star Insurance Coverage Issues ------------------------------------------------------------ In accordance with Rule 9019 of the Federal Rules of Bankruptcy Procedure, W.R. Grace & Co. and its units ask the Court to approve a Settlement Agreement and Mutual Release they entered into with North Star Reinsurance Corporation. North Star issued a single policy of excess liability insurance that provides, or is alleged to provide, insurance coverage to Grace. Issued for the period July 17, 1974 to June 1, 1975, the Subject Policy provides coverage in the amount of $3 million part of a quota share layer of $50 million per occurrence and in the aggregate for products and completed operations hazards, all in excess of $100 million in underlying limits. Grace has incurred and may incur in the future certain liabilities, expenses and losses arising out of asbestos-related claims, for which Grace seeks coverage under the Subject Policy. Disputes have arisen between Grace and North Star regarding their rights and obligations under the Subject Policy with respect to coverage for asbestos-related claims. The Settlement Agreement confers these principal benefits upon the Debtors' estate, among others: (a) the payment by North Star to the Trust of the sum of $2,000,000, as the settlement amount within 10 days of notice of the Trigger Date, as defined in the Agreement; (b) the payment of the Settlement Amount without need for litigation to enforce the assignment by Grace to the Trust of rights under the Subject Policy; and (c) a compromise of defenses that North Star might have with respect to coverage for any individual Asbestos Personal Injury Claim. The Agreement includes a complete, mutual release of all claims under the Subject Policy and is structured as a sale of property pursuant to Section 363 of the Bankruptcy Code. The Debtors note that they did not receive objections with respect to the proposed Stipulation. 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) W.R. GRACE: Wants to Re-Open Old Lawsuits for Fee Applications -------------------------------------------------------------- W.R. Grace & Co. and its units ask Bankruptcy Judge Judith Fitzgerald to re-open Adversary Proceedings 02-2210 and 02-2211 in order to (i) permit the filing of certain remaining quarterly fee applications relating to the long since resolved and closed fraudulent conveyance adversary proceedings; and (ii) allow the payment of the remaining 20% holdbacks of legal fees owed to certain professionals in those Proceedings. Theodore L. Freedman, Esq., at Kirkland & Ellis LLP, in New York, relates that in March 2002, the adversary proceedings entitled (i) Official Committee of Asbestos Personal Injury Claimants, et al. v. Sealed Air Corporation and Cryovac, Inc., et al., Adversary No. 02-2210; and (ii) Official Committee of Asbestos Personal Injury Claimants, et al., vs. Fresenius Medical Care Holdings, Inc., et al., Adversary No. 02-2211, were commenced. Certain professionals were authorized to perform certain services in the Adversary Proceedings and in that regard incurred fees and expenses. In July 2002, Judge Alfred Wolin of the U.S. District Court for the District of New Jersey withdrew the reference from the Bankruptcy Court over the determination of the fees and expenses incurred in the Adversary Proceedings. The Withdrawal Order also outlined and approved procedures by which certain professionals would be compensated in the Adversary Proceedings and incorporated the Bankruptcy Court's administrative fee order dated April 17, 2002. Thereafter, pursuant to the Withdrawal Order and the Fee Order, the professionals periodically filed and were paid fees and expenses. The Adversary Proceedings were settled in principal in November, 2002. However, due to the complex nature of the settlements, the settlement of the Fresenius Adversary Proceeding was not approved until June 25, 2003, and the settlement of the Sealed Air Adversary Proceeding was not approved until June 27, 2005. In the meantime, District Judge Wolin recused. In January 2005, District Judge Buckwalter referred "the Sealed Air Settlement Motion . . . and any related pleadings" to the Bankruptcy Court. This order, however, did not address referral of the professional fees that had been or would continue to be incurred in the Adversary Proceedings. Due to the settlement of the Adversary Proceedings, recusal of Judge Wolin and transfer of the Sealed Air matters back to the Bankruptcy Court, many of the fee applications filed by the professionals in the Adversary Proceedings were never acted upon. While the Debtors paid the 80% in fees and 100% in expenses owed to the professionals, which was permitted by the Fee Order, the fee applications themselves and payment of the 20% holdbacks were not approved by the Court, Mr. Freedman points out. According to Mr. Freedman, the Debtors conducted an audit of their books and records with respect to their payment of fees and expenses to all of the professionals retained in their Chapter 11 cases. As a result of that audit, the Debtors discovered that there still remain fee applications from the Adversary Proceedings that have not been approved by the Court and holdbacks that have not been, thus, paid. Thus, certain professionals who have outstanding fees owed from the Adversary Proceedings sought approval of remaining fee applications. Because the Adversary Proceedings were closed, the professionals filed the Fee Motion in the Debtors' cases. The Fee Motion was subsequently dismissed. Mr. Freedman explains that reopening the Adversary Proceedings will allow the Professionals to file their remaining quarterly fee applications and the Fee Motion in the Adversary Proceedings. Thereafter, the Debtors will ask that the District Court refer the fee matters back to the Bankruptcy Court, which may approve the fee applications and rule on the Fee Motion. Doing is in the best interests of the estates and their creditors because it will permit the Debtors to fully comply with the Fee Order and pay all remaining outstanding fees owed to the professionals, according to Mr. Freedman. The Bankruptcy Court is the appropriate Court to rule on the remaining fee issues because it is the Court which ultimately addressed all of the remaining matters that were pending in the Adversary Proceedings, Mr. Freedman notes. 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) WRS LLC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------ Debtor: WRS, LLC fka Woods Restoration Services, LLC 22 Riverview Drive Suite 101 Wayne, NJ 07470 Bankruptcy Case No.: 10-28461 Chapter 11 Petition Date: June 16, 2010 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Donald H. Steckroth Debtor's Counsel: Shoshana Schiff, Esq. Trenk, DiPasquale, Webster, Della Fera & Sodono, P.C. 347 Mt. Pleasant Avenue Suite 300 West Orange, NJ 07052 Tel: (973) 243-8600 Fax: (973) 243-8677 E-mail: sschiff@trenklawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb10-28461.pdf The petition was signed by Chet Dunican, company's chief executive officer. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- WRS Holdings, LLC 10-28457 6/16/10 Assets: $0 to $50,000 Woods Restoration Services, LLC 10-28465 6/16/10 Assets: $0 to $50,000 Debts: $1,000,001 to $10,000,000 Woods Restoration Services of S.C., LLC 10-28471 6/16/10 Assets: $0 to $50,000 Debts: $1,000,001 to $10,000,000 Woods Restoration Services of Montclair, NJ, LLC 10-28474 6/16/10 Assets: $0 to $50,000 Debts: $1,000,001 to $10,000,000 Environmental Remediation Concepts, LLC 10-28476 6/1/6/10 Assets: $0 to $50,000 Debts: $1,000,001 to $10,000,000 WRS, Inc. 10-28478 6/16/10 Assets: $0 to $50,000 Debts: $1,000,001 to $10,000,000 * BOND PRICING -- For Week From June 14 to 18, 2010 --------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- --------- 155 E TROPICANA 8.750% 4/1/2012 5.250 ABITIBI-CONS FIN 7.875% 8/1/2009 18.000 AHERN RENTALS 9.250% 8/15/2013 40.750 ALERIS INTL INC 9.000% 12/15/2014 0.401 ALERIS INTL INC 10.000% 12/15/2016 0.200 AMBAC INC 9.375% 8/1/2011 42.500 AT HOME CORP 0.525% 12/28/2018 0.504 BANK NEW ENGLAND 8.750% 4/1/1999 11.750 BANK NEW ENGLAND 9.875% 9/15/1999 11.875 BANKUNITED FINL 6.370% 5/17/2012 5.500 BLOCKBUSTER INC 9.000% 9/1/2012 10.813 BOWATER INC 6.500% 6/15/2013 30.500 BOWATER INC 9.500% 10/15/2012 33.500 BRODER BROS CO 11.250% 10/15/2010 88.000 CAPMARK FINL GRP 5.875% 5/10/2012 34.750 CELL THERAPEUTIC 4.000% 7/1/2010 95.000 COLONIAL BANK 6.375% 12/1/2015 0.200 EDDIE BAUER HLDG 5.250% 4/1/2014 5.000 ELEC DATA SYSTEM 3.875% 7/15/2023 89.000 EVERGREEN SOLAR 4.000% 7/15/2013 36.000 FAIRPOINT COMMUN 13.125% 4/1/2018 16.125 FAIRPOINT COMMUN 13.125% 4/2/2018 11.500 FEDDERS NORTH AM 9.875% 3/1/2014 0.877 FINLAY FINE JWLY 8.375% 6/1/2012 0.750 FLEETWOOD ENTERP 14.000% 12/15/2011 15.375 FRANKLIN BANK 4.000% 5/1/2027 1.375 FRIEDE GOLDMAN 4.500% 9/15/2004 0.875 GASCO ENERGY INC 5.500% 10/5/2011 62.500 GENERAL MOTORS 7.125% 7/15/2013 32.125 GENERAL MOTORS 9.450% 11/1/2011 28.500 HAWAIIAN TELCOM 9.750% 5/1/2013 2.250 HAWAIIAN TELCOM 12.500% 5/1/2015 1.400 IDLEAIRE TECH CP 13.000% 12/15/2012 1.000 INDALEX HOLD 11.500% 2/1/2014 2.800 INN OF THE MOUNT 12.000% 11/15/2010 41.000 LANDRY'S RESTAUR 9.500% 12/15/2014 84.800 LEHMAN BROS HLDG 0.450% 12/27/2013 20.000 LEHMAN BROS HLDG 1.250% 6/13/2012 19.050 LEHMAN BROS HLDG 1.500% 3/23/2012 20.000 LEHMAN BROS HLDG 4.375% 11/30/2010 18.500 LEHMAN BROS HLDG 4.500% 8/3/2011 19.000 LEHMAN BROS HLDG 4.700% 3/6/2013 18.630 LEHMAN BROS HLDG 4.800% 2/27/2013 18.850 LEHMAN BROS HLDG 4.800% 3/13/2014 19.760 LEHMAN BROS HLDG 5.000% 1/14/2011 18.750 LEHMAN BROS HLDG 5.000% 1/22/2013 19.000 LEHMAN BROS HLDG 5.000% 2/11/2013 18.000 LEHMAN BROS HLDG 5.000% 3/27/2013 18.800 LEHMAN BROS HLDG 5.000% 8/3/2014 18.800 LEHMAN BROS HLDG 5.000% 8/5/2015 19.000 LEHMAN BROS HLDG 5.100% 1/28/2013 18.850 LEHMAN BROS HLDG 5.150% 2/4/2015 18.850 LEHMAN BROS HLDG 5.250% 2/6/2012 19.000 LEHMAN BROS HLDG 5.250% 2/11/2015 18.630 LEHMAN BROS HLDG 5.350% 2/25/2018 18.630 LEHMAN BROS HLDG 5.500% 4/4/2016 19.935 LEHMAN BROS HLDG 5.500% 2/4/2018 18.700 LEHMAN BROS HLDG 5.500% 2/19/2018 18.630 LEHMAN BROS HLDG 5.500% 11/4/2018 18.000 LEHMAN BROS HLDG 5.550% 2/11/2018 18.630 LEHMAN BROS HLDG 5.600% 1/22/2018 18.630 LEHMAN BROS HLDG 5.625% 1/24/2013 20.666 LEHMAN BROS HLDG 5.700% 1/28/2018 18.630 LEHMAN BROS HLDG 5.750% 4/25/2011 18.000 LEHMAN BROS HLDG 5.750% 7/18/2011 19.810 LEHMAN BROS HLDG 5.750% 5/17/2013 19.500 LEHMAN BROS HLDG 5.875% 11/15/2017 19.760 LEHMAN BROS HLDG 6.000% 4/1/2011 21.000 LEHMAN BROS HLDG 6.000% 7/19/2012 20.500 LEHMAN BROS HLDG 6.000% 12/18/2015 18.850 LEHMAN BROS HLDG 6.000% 2/12/2018 17.750 LEHMAN BROS HLDG 6.200% 9/26/2014 20.125 LEHMAN BROS HLDG 6.625% 1/18/2012 19.760 LEHMAN BROS HLDG 6.750% 7/1/2022 18.550 LEHMAN BROS HLDG 6.875% 5/2/2018 21.500 LEHMAN BROS HLDG 7.000% 4/16/2019 18.031 LEHMAN BROS HLDG 7.000% 12/28/2037 18.000 LEHMAN BROS HLDG 7.200% 8/15/2009 18.000 LEHMAN BROS HLDG 7.730% 10/15/2023 19.800 LEHMAN BROS HLDG 7.875% 11/1/2009 19.760 LEHMAN BROS HLDG 8.000% 3/5/2022 17.500 LEHMAN BROS HLDG 8.000% 3/17/2023 19.500 LEHMAN BROS HLDG 8.050% 1/15/2019 18.760 LEHMAN BROS HLDG 8.400% 2/22/2023 17.950 LEHMAN BROS HLDG 8.500% 8/1/2015 18.600 LEHMAN BROS HLDG 8.500% 6/15/2022 18.850 LEHMAN BROS HLDG 8.750% 12/21/2021 19.500 LEHMAN BROS HLDG 8.750% 2/6/2023 17.050 LEHMAN BROS HLDG 8.800% 3/1/2015 19.260 LEHMAN BROS HLDG 8.920% 2/16/2017 16.000 LEHMAN BROS HLDG 9.500% 12/28/2022 19.000 LEHMAN BROS HLDG 9.500% 1/30/2023 17.601 LEHMAN BROS HLDG 9.500% 2/27/2023 15.130 LEHMAN BROS HLDG 10.000% 3/13/2023 22.500 LEHMAN BROS HLDG 10.375% 5/24/2024 17.125 LEHMAN BROS HLDG 11.000% 6/22/2022 19.550 LEHMAN BROS HLDG 11.000% 7/18/2022 17.500 LEHMAN BROS HLDG 11.000% 8/29/2022 19.000 LEHMAN BROS HLDG 11.000% 3/17/2028 18.500 LEINER HEALTH 11.000% 6/1/2012 8.750 MAGNA ENTERTAINM 7.250% 12/15/2009 15.250 MAGNA ENTERTAINM 8.550% 6/15/2010 15.250 MERRILL LYNCH 3.470% 3/9/2011 99.500 METALDYNE CORP 11.000% 6/15/2012 1.600 NEFF CORP 10.000% 6/1/2015 9.625 NEWPAGE CORP 10.000% 5/1/2012 58.100 NEWPAGE CORP 12.000% 5/1/2013 29.100 NORTH ATL TRADNG 9.250% 3/1/2012 52.000 PALM HARBOR 3.250% 5/15/2024 73.500 POPE & TALBOT 8.375% 6/1/2013 0.500 QUANTUM CORP 4.375% 8/1/2010 92.554 RASER TECH INC 8.000% 4/1/2013 38.000 RESIDENTIAL CAP 8.375% 6/30/2010 99.250 SPHERIS INC 11.000% 12/15/2012 22.000 STATION CASINOS 6.000% 4/1/2012 6.000 STATION CASINOS 6.500% 2/1/2014 2.250 STATION CASINOS 7.750% 8/15/2016 6.000 THORNBURG MTG 8.000% 5/15/2013 2.550 TIMES MIRROR CO 7.250% 3/1/2013 26.250 TOUSA INC 7.500% 1/15/2015 4.750 TOUSA INC 10.375% 7/1/2012 4.750 TRANS-LUX CORP 8.250% 3/1/2012 7.673 TRIBUNE CO 5.250% 8/15/2015 26.500 TRICO MARINE 3.000% 1/15/2027 15.000 TRICO MARINE SER 8.125% 2/1/2013 53.000 TRUMP ENTERTNMNT 8.500% 6/1/2015 0.250 VERASUN ENERGY 9.375% 6/1/2017 6.625 VERENIUM CORP 5.500% 4/1/2027 33.000 VIRGIN RIVER CAS 9.000% 1/15/2012 45.500 WASH MUT BANK NV 5.500% 1/15/2013 0.600 WASH MUT BANK NV 5.950% 5/20/2013 0.300 WASH MUT BANK NV 6.750% 5/20/2036 0.500 WCI COMMUNITIES 7.875% 10/1/2013 0.700 WCI COMMUNITIES 9.125% 5/1/2012 1.000 WDAC SUBSIDIARY 8.375% 12/1/2014 4.994 WERNER HOLDINGS 10.000% 11/15/2007 1.020 YELLOW CORP 5.000% 8/8/2023 68.125 ********* 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 ***